The role of CEO relative standing in acquisition behavior and CEO pay

In this study, we develop and test a theory of CEO relative pay standing. Specifically, we propose that CEOs with negative relative pay standing status (underpaid relative to comparison CEOs) will engage in acquisition activity, as a self‐interested means of attempting to realign their pay with that of their peers. We further propose that, when CEOs with negative relative pay standing acquire, they will tend to finance those acquisitions more heavily with stock than cash, to mitigate the risk associated with those deals. Finally, we argue that acquisition activity will partially mediate the influence of CEO negative relative pay standing on subsequent CEO compensation increases; however, that pay growth will come primarily in the form of long‐term incentive pay. Our results support our predictions. Copyright © 2014 John Wiley & Sons, Ltd.     

Firm and Group Dynamics in the Small and Medium Enterprise Sector in Indonesia

This paper discusses the role of clusters and subcontracting as factors in the evolution of small and medium firms in Indonesia during the last quarter century. It is argued that a number of such firms have become successful exporters of rattan furniture, wood furniture and garments on the strength of subcontracting relationships with foreign investors and buyers as well as agglomeration economies achieved by clustering in selected locations. Examples are provided to show that clustered enterprises are more likely to be in the exports business and to adopt product and process innovations as compared to more dispersed firms. Public policy support for fostering subcontracting links and cluster formation is also discussed.     

A content analysis of ethical policy statements regarding marketing activities

Many large corporations now have written codes of ethics to guide the business/marketing activities of employees. The purpose of this study was to determine the frequency and types of topics which are covered in the ethics policy statements of large U.S. corporations. The results indicated that the topics covered most often (respectively) were: misuse of funds/improper accounting, conflicts of interest, political contributions, and confidential information. It is concluded that in addition to written ethics policy statements, top management should communicate ethical values and demonstrate by example. Robert E. Hite (Ph.D. University of Arkansas) is Associate Professor of Marketing at Kansas State University. His textbook is entitled Managing Salespeople, and his articles have appeared in such journals as the Journal of Advertising Research, Journal of Business Research, Journal of the Academy of Marketing Science, and Industrial Marketing Management. Joseph A. Bellizzi (Ph.D. University of Nebraska) is Associate Professor of Marketing at Kansas State University. He was previously employed by Hilti Fastening systems as a Market Research analyst. His articles have appeared in such journals as the Journal of Business Research, Journal of Advertising Research, and Journal of Retailing. Cynthia Fraser (Ph.D., University of Pennsylvania) is Associate Professor of Marketing at Kansas State University. Her research interests are international marketing and marketing models. Her articles have appeared in such journals as the Journal of Consumer Research and Industrial Marketing Management.     

Cash holdings and business group membership

This study examines the cash policies of business group members (i.e., affiliates). Using a panel dataset of private Belgian affiliates and comparable non-affiliated firms, the empirical results show that business group affiliates hold significantly smaller amounts of cash as compared to non-affiliated firms. This finding is consistent with the notion that affiliates can afford to keep lower cash reserves because these firms can access the internal capital market of the group. The analysis also combines affiliate level and group level data to evaluate cash drivers and shows that groups in financial distress reduce cash holdings in affiliates. However, affiliates that are more important for the group's reputation and operations maintain cash levels comparable to affiliates belonging to financially healthy groups.     

Exploring VCR use as a leisure activity

On the basis of a uses‐and‐gratifications perspective, this exploratory study examined the TV viewing and VCR use of a sample of 119 households with VCRs. The instrument developed for use in this study consisted of a TV and VCR diary in which respondents recorded a variety of information related to each viewing (or recording) occasion for 1 week. The results suggest that although the ability to manipulate the broadcast schedule was a valued feature of the VCR, VCR use merely enhanced established patterns of TV viewing rather than significantly altered TV viewing or leisure behavior. The playback function of the VCR represented a primarily solitary activity pursued for entertainment and relaxation. Watching rented movies represented a primarily social activity pursued for entertainment, relaxation, and companionship. An equal number of television programs were viewed alone as were viewed with others.     

The politics,satisfaction, loyalty,and success of Ph.D. students in hospitality and tourism

The purpose of this study was to explore the roles of organizational politics in educational institutions with regard to graduate students’ satisfaction with supervision and loyalty toward advisors, and thereby success of students in the Ph.D. program, within the hospitality and tourism discipline. The findings demonstrate that satisfaction and loyalty play important roles in doctoral students’ experiences in graduate education. Several implications for students and faculty are discussed.     

The Sensitivity of the General Price Level to Changes in the Price of Crude Oil

There are many direct and indirect effects of changing crude oil prices on the inflation rate, so it is not surprising that there are different views about the resulting effects on the general price level and also on other aspects of the general economy. This study, estimates the direct and indirect effects of oil price changes on the economy-wide rate of inflation, which then has effects on spending and producing decisions. However, in this forum, we do not try to estimate the full indirect effects on the level of economic activity, such as effects on real GDP. JEL Classification E310, E370