When one bad apple spoils consumers’ judgment of the brand: exposure to an employee’s non-workplace transgression and potential remedies

Four experiments investigate consumers’ moral judgments of a firm’s brand reputation when given information about an employee’s non-workplace transgression. To the extent that the employee is perceived to have power in the firm (i.e., control over resources and decisions), the employee’s offensive action damages the firm’s reputation and decreases consumers’ purchase intentions. These effects occur even though the action occurs in the employee’s private life and is unrelated to product quality. The results replicate for three types of products and three types of offenses. The employee’s perceived power in the firm provides the most consistent explanation of customers’ negative responses and is a better predictor than the alternative explanations tested (e.g., perceived status). Results also show that after an offense comes to light, firm reactions that decrease or eliminate the employee’s power in the organization—such as reducing decision-making responsibilities or firing the employee—can help restore the firm’s reputation.     

Managerial Ownership and Company Performance in German Small and Medium-Sized Private Enterprises

Abstract. We analyse the relationship between managerial ownership and company performance, testing the incentive and entrenchment hypothesis. Differently from previous literature, we focus on small and medium-sized private enterprises which constitute an important part of the German economy. We use a panel of 356 companies in the German business-related service sector for the years 1997–2000. Our findings are that performance, measured by survey-based profit information, is increasing in managerial ownership by up to around 40 per cent. We do not find a significant entrenchment effect, possibly because, at levels at which managers could become entrenched, they already bear a large proportion of the costs and have therefore an incentive to maximize company value.     

Comparison of hospital length of stay and hospitalization costs among patients with non-valvular atrial fibrillation treated with apixaban or warfarin: An early view

Objective: To quantify and compare hospital length of stay (LOS) and costs between hospitalized non-valvular atrial fibrillation (NVAF) patients treated with either apixaban or warfarin via a large claims database.

Methods: Adult patients hospitalized with AF were selected from the Premier Perspective Claims Database (01JAN2013-31MARCH2014). Patients with evidence of valvular heart disease, valve replacement procedures, or pregnancy during the index hospitalization were excluded. Patients treated with apixaban or warfarin during hospitalization were identified. Propensity score matching (PSM) was performed to control for baseline imbalances between patients treated with apixaban or warfarin. Primary outcomes were hospital LOS (days), post-medication administration LOS, and index hospitalization costs, and were compared using paired t-tests in the matched sample.

Results: Before PSM, 2894 apixaban and 124,174 warfarin patients were identified. Patients treated with warfarin were older and sicker compared to those treated with apixaban. After applying PSM, a total of 2886 patients were included in each cohort, and baseline characteristics were balanced. The mean (standard deviation [SD] and median) hospital LOS was significantly (p?=?0.002) shorter for patients treated with apixaban for 5.1 days (5.7 and 3) compared to warfarin for 5.5 days (4.8 and 4). The trend appeared consistent in the hospital LOS from point of apixaban or warfarin administration to discharge (4.5 vs 4.7 days, p?=?0.051). Patients administered apixaban incurred significantly lower hospitalization costs compared to those administered warfarin ($11,262 vs $12,883; p?<?0.001).

Conclusions: Among NVAF patients, apixaban treatment was associated with significantly shorter hospital LOS and lower costs when compared to warfarin treatment.     

Enough is enough! When identification no longer prevents negative corporate associations

Negative publicity has the potential to create negative corporate associations. However, consumers’ identification with a company might moderate the extent of this effect. This article examines the impact of consumer-company identification on reactions to variable levels of negative publicity about a company. Exposing consumers who had strong identification with a company to moderately negative publicity was found to result in less negative corporate associations than for consumers who had relatively weak identification. In contrast, consumers’ levels of identification did not affect reactions to extremely negative information, resulting in equally negative corporate associations for those with strong versus weak consumer-company identification. Thus, strong identification mitigates the effects of moderately negative publicity but does not attenuate the effects of extremely negative publicity. Consumers’ perceptions of and thoughts regarding negative information about a company partially mediated the effect of identification on attitudes and behavioral intentions. Sabine A. Einwiller (sabine.einwiller@fhso.ch) is a lecturer and researcher at the University of Applied Sciences Northwestern Switzerland. She worked on this research as a visiting scholar at the University of Southern California, visiting from the University of St. Gallen, Switzerland, where she received her Ph.D. She has published in journals such as theJournal of Consumer Psychology and thePersonality and Social Psychology Bulletin. Her research interests include causes and the measurement of corporate reputation and stakeholder-company identification. Alexander Fedorikhin (sfedorik@iupui.edu) is an associate professor in the Kelley School of Business at Indiana University. His research focuses on the intersection of affect and cognition in consumer decision making. He has published in such journals as theJournal of Consumer Research, theJournal of Consumer Psychology, andOrganizational Behavior and Human Decision Processes. Allison R. Johnson (ajohnson@business.queensu.ca) is an assistant professor of marketing in Queen’s School of Business, Queen’s University. She received her Ph.D. from the Marshall School of Business, University of Southern California. Her research interests include corporate social responsibility, customer-company identification, and consumer emotion. Michael A. Kamins (mkamins@marshall.usc.edu) is an associate professor at the University of Southern California, Marshall School of Business. Dr. Kamins’s current research interests he in pricing strategy in the context of online auctions as well as in the impact of color on consumers’ perceptions of products. He has published over 40 academic articles and proceedings in major academic journals, including theJournal of Marketing, theJournal of Marketing Research, theJournal of Consumer Research, theJournal of Consumer Psychology, theJournal of Advertising, and theJournal of Advertising Research.     

The Potential Impact of Reforms to the Essential Parameters of the Council Tax*

Council tax was introduced in Britain in 1993 and represents a unique international property tax. There is a growing belief that it is time to reform the number and structure of council tax bands, but such views have a minimal empirical base. This paper sets out to assess the impact of changing the bands on personal and local government finances, and extends the analysis to the role of the tax multipliers linked to each band. The research is based on the experience of a representative sample of local authorities in Scotland. A statistical revaluation for 2000 is estimated for the existing eight‐band system, and from this base a 10‐band system is calculated. Financial implications are then simulated for each local authority, taking account of central resource equalisation mechanisms. The results indicate that increases in the number of bands will have little impact on the burden of the council tax compared with regular revaluations. Changing the tax multiplier range has the greatest impact on local authority finances and council tax payments.     

Personality,person–brand fit,and brand community: An investigation of individuals,brands, and brand communities

Abstract

Brand communities have received considerable and warranted attention from marketing researchers and practitioners. Brand communities can be important sources of information for both the firm and other customers, and they play an important role in building and maintaining strong brands. Nevertheless, the antecedents of brand community identification, such as individual differences across consumers in the propensity to connect with brand communities, are not as well understood. We hypothesise that the enduring personality traits extraversion and agreeableness predict identification with the [brand] community, which in turn, and along with product attachment, will be related to brand trust and brand loyalty. Product attachment itself is hypothesised to be a function of person–brand congruity, the perceived fit between the person and the brand. Those relationships are tested and supported in data from a sample of 662 car enthusiasts attending a large brand community meeting or ‘brandfest’.     

A critical examination of the AICPA Code of Professional Conduct

The American Institute of Certified Public Accountants (AICPA) is responsible for the Code of Professional Conduct that governs the actions of CPAs. In 1988, the Code was revised by the AICPA, but a number of issues still remain unresolved or confounded by the new Code. These issues are examined in light of the profession's stated commitment to the public good, a commitment that is discussed at length in the new Code.Specifically, this paper reviews the following issues: (1) client confidentiality and whistleblowing, (2) limited liability, and (3) auditor independence. We argue that, in each of these areas, the AICPA promotes a position that is potentially harmful to the public good.Allison Collins is an Assistant Professor in the Department of Accounting and Taxation at Colorado State University. She has been a Certified Public Accountant since 1982. She has published previously inJournal of Business Ethics.Normal Schutz is an Associate Professor in the Department of Accounting and Taxation at Colorado State University. He has published in such journals asJournal of Business Ethics, EDP Auditor Journal andInternal Auditor.     

Express yourself: Facial expression of happiness,anger, fear,and sadness in funding pitches

We build upon theory from evolutionary psychology and emotional expression, including basic emotion theory and the dual threshold model of anger in organizations, to extend knowledge about the influence of facial expressions of emotion in entrepreneurial fundraising. First, we conduct a qualitative analysis to understand the objects of entrepreneurs' facial expressions of four basic emotions in their pitches: happiness, anger, fear, and sadness. This provides a base for our theorizing that the frequency of entrepreneurs' facial expression of each of these emotions exhibits an inverted U-shaped relationship with funding. We also argue that the frequency of changes in entrepreneurs' facial expressions is positively related to funding. We test our predictions with a sample of 489 funding pitches using computer-aided facial expression analysis. Results support inverted U-shaped relationships of the frequency of facial expression of happiness, anger, and fear with funding, but show a negative relationship of sadness with funding. Results further support that the frequency of change in entrepreneurs' facial expressions promotes funding.     

Wettbewerbsmessung im Bankensektor: alternative Maße — divergierende Ergebnisse

Precise assessment of the competitive conditions is the necessary foundation of numerous stability, productivity and profitability analyses of the banking industry. From a theoretical point of view, a wide range of alternative approaches are available. Nonetheless, the operationalisation of these measures has proved difficult due to regional market conditions, individual business models and generally high data requirements. Considerable divergences and contradictory results are revealed by a comparison of more than 50 studies from four decades. In reference to the resilience and comparability of regulatory inferences, the question remains as to which measure should be favoured in the future.