Entry Strategies and Market Performance Causal Modeling of a Business Simulation

A key decision faced by marketing managers is the development of entry strategies for new markets. In addition to selecting which product market to enter, the manager must make decisions about the entry strategy itself. The entry strategy, whether managed actively or passively, affects the entrant's performance. In this article, Donna Green and Adrian Ryans discuss the three major components of an entry strategy: the timing of entry, the magnitude and areas of investment and the basis for competitive emphasis. They report that very little empirical research has focused on relationships between entry strategy and eventual product performance.     

THE RELATION AMONG DIVIDEND POLICY,FIRM SIZE,AND THE INFORMATION CONTENT OF EARNINGS ANNOUNCEMENTS

In this paper we investigate the role of dividends in explaining the size effect. The previous literature concludes that before the firm's earnings announcement, small firm stock prices impound less information than large firm stock prices. This size effect is evidenced by the greater market reaction to small firm earnings announcements than to large firm earnings announcements. We find that if the dividend announcement precedes the earnings announcement, no size effect exists. The implication is that the information conveyed by dividend announcements includes the information conveyed to investors in large firms by other information sources. However, if the firm does not pay dividends or if the firm's earnings announcement precedes its dividend announcement, the size effect exists. The implication is that dividends do not completely explain the size effect. That is, there are information sources other than dividends that are exclusively available to investors in large firms, and the information provided by these sources is reflected in the stock price of large firms before the earnings announcement.     

Why students take elective business ethics courses: Applying the theory of planned behavior

Despite the prevalence of elective business ethics courses, little research has sought to explain and predict why some students enroll in these courses and while others do not. Using the theory of planned behavior (Ajzen and Madden, 1986) as a theoretical foundation, 178 graduate students in Ireland were surveyed about their intention to sign up for an elective ethics class. Their behavior was measured two months later. The results reveal the power of the theory of planned behavior to explain and predict who takes elective ethics classes.Donna M. Randall is an associate professor and chair in the Department of Management and Systems at Washington State University. Her research interests include business ethics, organizational commitment, and reproductive risk in the work place. Her work has appeared inJournal of Business Ethics, Decision Sciences, Academy of Management Review, Journal of Vocational Behavior, Journal of Business Research, and others.     

Electronic decision aids: Integration of a consumer perspective

Merchants and manufacturers are rapidly adopting electronic decision aids to help sell a variety of merchandise. These systems provide product information or recommendations based on input from the consumer and affect the way consumers process information. A conceptual framework, based on information processing theory and three strategic consumer difference variables — goal orientation, autonomy, and expertise — is presented. Based on these differences, propositions are derived to guide design of effective electronic decision aids.

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Zusammenfassung Elektronische Entscheidungshilfen: Die Miteinbeziehung der Perspektive des Verbrauchers Händler un Hersteller verwenden in wachsendem Ma\e elektronische Entscheidungshilfen beim Verkauf einer Vielzahl von Waren. Solche Hilfen stellen Produktinformation bereit und liefern Empfehlungen auch aufgrund solcher Dateneingaben, die von der Verbraucherseite kommen, und sie beeinflussen die Art und Weise, wie die Konsumenten Information verarbeiten. Der Beitrag liefert einen begrifflichen Rahmen, der auf der Theorie der Informationsverarbeitung und auf drei Konsumentenvariablen — Zielorientierung, Autonomie und Kompetenz — aufbaut. Auf dieser Grundlage werden Vorschläge für die Gestaltung wirksamer elektronischer Entscheidungshilfen abgeleitet.

     

Taking stock: Can the theory of reasoned action explain unethical conduct?

Extensive interest in business ethics has developed accompanied by an increase in empirical research on the determinants of unethical conduct. In setting forth the theory of reasoned action, Fishbein and Ajzen (1975) maintained that research attention on such variables as personality traits and demographic characteristics is misplaced and, instead, researchers should focus on behavioral intentions and the beliefs that shape those intentions. This study summarizes business ethics research which tests the theory of reasoned action and suggests directions for further research. Donna M. Randall is an Assistant Professor of Management at Washington State University. Her research interests include organizational commitment, professional deviance, and the regulation of reproductive health in toxic work environments. Her work has been published in Academy of Management Review, Journal of Organizational Behavior, and Decision Sciences and others.     

Water policy reform in Australia: lessons from the Victorian seasonal water market*

The nature of the seasonal water market is examined using a theoretical model and empirical evidence from the Victorian market. Drivers of the seasonal opportunity cost of water include the underlying nature of investment in the industry made in the context of risky entitlement yields; and the timing and nature of information regarding seasonal water availability and rainfall. Seasonal water markets facilitate the re‐allocation of water availability according to this short‐run opportunity cost. Evidence from the market suggests that transactions costs are low and most of the existing constraints to trade in seasonal allocations are the result of hydrological conditions. Analysis of market data suggests that the price response of the market to water availability is much more pronounced in years of low rainfall. The implications of the paper for wider policy reform are that attention should be paid to improving property rights for the management of intertemporal risk before other reforms, such as broadening of permanent water markets and institutionalising environmental flows, are implemented. This is because these other reforms will change the spatial and temporal pattern of water use and thus affect reliability, which underpins the value of water in irrigated agriculture.     

Exploring pupils’ beliefs about designers and designing

The purpose of this paper is to report on an investigation into pupil beliefs about designers and designing conducted as part of a research project focussing on Designerly Activity in Secondary Design and Technology which builds upon a pilot study (Barlex and Trebell in Int J Technol Design Educ, 2007). Four research questions drove this element of the study: (a) What do pupils believe designers do? (b) What do pupils believe about the knowledge and skills designers must possess? (c) What do pupils believe designers are like? (d) What do pupils believe about the design decisions made by the designer of a given product? This paper compliments the work of Welch et al. (Designing the future: The design and technology association international research conference 2006, University of Wolverhampton, Telford, 2006) relating to student beliefs about designers and designing by drawing on some elements of the research design to inform this study. Pupil responses to questions relating to the role of the designer, what designers are like and what designers need to know are in line with the findings of Welch et al. (Designing the future: The design and technology association international research conference 2006, University of Wolverhampton, Telford, 2006) in their study of elementary students beliefs about designers and designing with both studies concluding that the qualities ascribed to the designer are positive and non-stereotypical—they can be young or old, female or male.     

DO FIRMS SEEK A TARGET BOARD STRUCTURE? EVIDENCE FROM THE POST‐SOX PERIOD

We investigate whether firms restructure board composition to align with changes in their contracting environment. Board size and independence increase with firm complexity, consistent with theoretical predictions. However, the hypothesized negative relation between board independence and information costs is evident only for firms completing acquisitions. Furthermore, board independence increases to offset increases in CEO power in a sample of firms making acquisitions, but decreases when CEO power increases in a large cross‐section of firms. We conclude that after the Sarbanes–Oxley Act of 2002, firms face constraints adjusting to target board structure, but these constraints can be mitigated by a shock to the contracting environment via acquisition.     

Inter-Departmental Cost Allocation and Investment Incentives

This paper endeavors to demonstrate that fixed cost allocation can align investment incentives in a multi-period and multi-division setting. In a decentralized firm, a divisional manager can make an investment that benefits both his own and the operations of a downstream division. The relative budgeted activity (RBA) cost allocation method assigns fixed cost charges according to the ratio of a divisions budgeted activity in proportion to that of the firm, and thereby resolves the hold-up problem created by the decentralized setting. Internal accounting rules can be designed to give managers strong incentives to internalize the firms objective regarding efficient investment levels, and alleviate the tension between ex ante investment efficiency and ex post production efficiency. This paper examines how much the fixed charges should be in order to achieve the optimal level of investment.     

Corporate governance and the timeliness of corporate internet reporting by U.K. listed companies

This study is an examination of the timeliness of corporate internet reporting by U.K. companies listed on the London Stock Exchange (LSE). The research examines the significance of several corporate governance and firm-specific characteristics as potential determinants of the timeliness of corporate internet reporting.Our primary analysis provides evidence of a significant association between timely corporate internet reporting and the corporate governance characteristics of board experience and board independence. Our findings provide evidence that boards with less cross directorships, more experience in terms of the average age of directors, and lower length in service for executive directors provide more timely corporate internet reporting. We find that board independence is negatively associated with timely corporate internet reporting.Follow-up analysis provides additional evidence of a significant association between the timeliness of corporate internet reporting and board experience. The evidence indicates that role duality and block ownership are associated with less timely corporate internet reporting.Our findings also reveal strengths and weaknesses in the Internet reporting of U.K. listed companies. Companies need to voluntarily focus on improving the timeliness dimension of their corporate internet reporting so that the EU and U.K. accounting regulators do not replace recommendations with regulations.