The mode of corporate diversification: Internal ventures versus acquisitions

This study investigates empirically the underlying motives for selecting the mode of corporate diversification and attempts to match the form of capital investments with a corresponding theoretical rationale for diversification. The empirical results seem to support both the transaction-costs rationale for diversification and the motive that arises from a firm's prior experience with each form of capital investment. However, the empirical findings are inconsistent with the explanation that is based on the owner-manager conflict of interest.     

Is Sound Just Noise?

We analyze the information content of the ambient noise level in the Chicago Board of Trade's 30-year Treasury Bond futures trading pit. Controlling for a variety of other variables, including lagged price changes, trading volumes, and news announcements, we find that the sound level conveys information which is highly economically and statistically significant. Specifically, changes in the sound level forecast changes in the cost of transacting. Following a rise in the sound level, prices become more volatile, depth declines, and information asymmetry increases. Our results offer important implications for the future of open outcry and floor-based trading mechanisms.     

Devaluation and liberalization in the presence of tariff and quota restrictions: An equilibrium model

The purpose of this paper is to examine and compare the effects of devaluation and trade liberalization policies on a monetary economy which uses quotas in contrast to an economy which uses tariffs. This is done in a general equilibrium framework. The paper also investigates the reasons for coupling liberalization policies with a devaluation.     

Violence,Aggression, and Ethics: The Link Between Exposure to Human Violence and Unethical Behavior

Can exposure to media portrayals of human violence impact an individual’s ethical decision making at work? Ethical business failures can result in enormous financial losses to individuals, businesses, and society. We study how exposure to human violence—especially through media—can cause individuals to make less ethical decisions. We present three experiments, each showing a causal link between exposure to human violence and unethical business behavior, and show this relationship is mediated by an increase in individual hostility levels as a result of exposure to violence. Using observational data, we then provide evidence suggesting that this relationship extends beyond the context of our experiments, showing that companies headquartered in locations marked by greater human violence are more likely to fraudulently misstate their financial statements and exhibit more aggressive financial reporting. Combined, our results suggest that exposure to human violence has significant and real effects on an individual’s ethical decision making.     

Translating Environmental Ideologies into Action: The Amplifying Role of Commitment to Beliefs

Consumers do not always follow their ideological beliefs about the need to engage in environmentally friendly (EF) consumption. We propose that Commitment to Beliefs (CTB)—the general tendency to follow one’s value-based beliefs—can help identify who is most likely to follow their environmental ideologies. We predicted that CTB would amplify the effect of beliefs prescribing environmental stewardship (e.g., new ecological paradigm), or neglect (e.g., economic system-justification), on corresponding intentions, behavior, and purchasing decisions. In two studies, CTB amplified the positive and negative effects of relevant EF ideologies on EF purchase decisions (Study 1), and consumption and conservation attitudes, intentions, as well as future behavior (Study 2). In each study, only people with higher levels of CTB demonstrated the most ideologically consistent consumption and conservation intentions and behavior. These findings clarify who is most likely to align their decisions and lifestyles according to their sustainable consumption ideologies. The amplification effect of CTB, and the CTB variable itself, present new contributions to consumer behavior research and the domains of sustainable or ethical consumption in particular and offer wide-ranging potential for marketing practitioners and researchers.