Does Information Asymmetry Matter to Equity Pricing? Evidence from Firms’ Geographic Location*

The scarcity of suitable proxies for asymmetric information has impeded empirical research from providing reliable evidence on whether information risk shapes equity pricing. In reexamining this unresolved question, we rely on firms’ geographic distance from financial centers to gauge information asymmetry. We provide strong, robust evidence supporting the prediction that equity financing is cheaper for firms nearer central locations, implying that investors rationally require more compensation when information asymmetry is worse. The equity pricing role of geographic proximity is economically large, with our coefficient estimates translating into firms located within 100 kilometers of the city center of the nearest of six major financial centers, or in their metropolitan statistical areas, enjoying equity financing costs that are seven basis points lower. Our inferences are insensitive to measuring both the cost of equity capital and distance in several ways, controlling for corporate governance quality, and addressing endogeneity. Collectively, our analysis suggests that investors discount the price that they pay for their securities to reflect the greater information asymmetry that ensues when firms are far from major financial centers.     

The determinants of hotels' marketing managers' green marketing behaviour

Little is known about the factors underlying the pro-environmental behaviour of marketing managers. This paper explores the determinants of green marketing practices in the Red Sea hotel sector in Egypt. The research model assesses green marketing practices against the personal and organisational values of the marketing managers, together with a range of organisational and demographic variables expected to influence hotels' environmental behaviour. From a valid sample of 89 marketing managers responsible for 194 hotels, it was found that organisational contextual variables, and in particular targeting Western tourists, being affiliated to an international hotel chain and the marketers' own demographics, including age, academic subject studied and gender, were the best predictors of more proactive green marketing. Personal environmental values did not explain the pro-environmental behaviour of marketers, and the organisational environmental values that had explained part of their ethical behaviour had resulted from voluntarism rather than utilitarian or conformance-based values. Government policies also appeared to be ineffective determinants. The implications for green marketing practices are also discussed.     

On the determinants of obesity: evidence from the UAE

This article investigates the possible determinants of being overweight and obese in the United Arab Emirates (UAE), controlling for age and education status. We use a novel dataset constructed from survey responses of university undergraduate students. Using OLS, logistic and ordered logistic regressions, we find that male, affluent and nonnational students face a higher risk of being obese (or overweight). The results also show that cultural and geographical factors interact with some behavioural aspects related to lifestyle in determining weight status. Students originating from other Middle East and North Africa countries exhibit higher body mass index (BMI) and odds of being obese with higher frequency of eating out and more computer use. Unexpectedly, fast food consumption and lack of exercise do not seem to contribute to higher risks of being overweight/obese.     

Consistency Matters! How and When Does Corporate Social Responsibility Affect Employees’ Organizational Identification?

Despite the increasing attention to corporate social responsibility (CSR) in the management literature, little is known about the mechanisms and boundary conditions explaining employees’ responses to CSR. Drawing on social identity and cue consistency theory, we develop a mediated moderation model that explains how and under which conditions perceived CSR affects employees’ organizational identification. We test the model by carrying out a three‐wave longitudinal study on employees of an international utility company. The findings indicate that perceived CSR interacts with overall justice to predict organizational identification through the successive mediation of perceived external prestige and organizational pride. The study clarifies and advances some of the theoretical foundations surrounding the micro‐level approach of CSR and has key implications for management research and practice.     

Cost of severe hypoglycaemia in nine European countries

Objective: Complications contribute largely to the economic gravity of diabetes mellitus (DM). How they arise and are treated differs substantially between countries. This paper assesses the total annual, direct, and indirect cost of severe hypoglycemia events (SHEs) in nine European countries: Bulgaria, Croatia, the Czech Republic, Greece, Hungary, Macedonia/the former Yugoslav Republic of Macedonia (MK), Poland, Slovenia, and Spain.

Methods: Data was collected on epidemiology, treatment structure, SHE-driven resource consumption, and unit costs. Two systematic reviews—on the SHE rates and the resources used for treatment—and data on the days-of-work lost due to SHE along with salaries and employment rates were used. The total SHE cost in each country was calculated and how the differences are driven by individual parameters was analysed.

Results: The annual costs of SHEs varied in absolute terms from €379,951.25 in MK up to €58,429,684.40 in Spain, or—when expressed per one drug-treated DM patient—from €5.47 in Bulgaria up to €17.74 in Spain. Indirect cost constituted between 6.01% (MK) and 26.49% (Hungary) of the total cost. The differences between countries are driven mostly by the cost of treating a single event, and this is related to general differences in prices.

Limitations: The main limitation is the lack of good quality data in some parts, and the necessity to use mean-value imputations, experts’ opinions, etc. Additionally, we only considered DM treatment as the SHE driver, while other elements, e.g. style of living, may contribute substantially.

Conclusions: A common framework can be applied to estimate the economic burden of SHE in various countries, allowing one to identify the drivers of differences in cost. Treating DM is complex, and so no resolute conclusions ought to be drawn as to whether SHE management is better in one country than another.     

Performance implications of centrality in franchisee advice networks

Although the literature has provided ample evidence for the decisiveness of the franchisor–franchisee relationship in explaining organizational success or failure, performance effects of franchisee–franchisee relationships remain largely unexplored. Yet a growing body of research indicates that by building interfranchisee relationships, franchisees can form advice networks in the chain. Such networks offer privileged access to resources such as knowledge, information, and best practices that help individual franchisees to become more productive. In this context, we study linkages between a franchisee's centrality in franchisee relationships and various individual performance outcomes, using comprehensive data from franchisees in 3 different chains in the largest European franchise market, France. We find that conditional on the specific governance structure of each chain, the results document a strong impact of centrality in advice networks on franchisee performance. Accordingly, we offer theoretical contributions concerning knowledge‐sharing processes in franchise chains, and managerial implications as regards more effective cooperation management in practice, from the perspective of both a franchisee and a franchisor.     

中国投资塞内加尔:一个SWOT分析

2005年12月,塞内加尔和中国恢复中断了10年之久的外交关系.此后,两国都在努力维持良好的双边关系并继续促进两国之间商业关系的改善.中国现已被广泛视为一个经济大国,其在塞內加尔的一些领城的市场明显可见并日益增加,特别是在农业方面.然而中国还没有享受到所有在塞內加尔投资的优势与它提供的机会.在与中国的合作中,塞內加尔还没有完全显示出它的经济吸引力上的潜能,幸好这个国家良好的技术力量和金融影响力使它有条件去开发这些机遇,也能使其踏出领导非洲发展具体化的领先一步.尽管有着这些优势,塞內加尔像其它许多非洲国家一样,也面临着发展受限的严重问题.一种以SWOT(优势、劣势、机遇、威胁)方法为基础的分析能让我们更好地了解引进中国投资塞内加尔的议题,并能帮助我们得出引进投资最好的方法.     

Health care expenditures of self‐employed farm households in the United States

For self‐employed individuals and their families, purchases of health care services and health insurance policies have the potential to impact their health status, as well as the financial viability of their businesses. Most people in the United States receive health insurance coverage through employer‐sponsored programs. Self‐employed individuals and their households, such as farm households, may face a greater challenge in getting affordable health insurance. Using a large cross‐sectional farm household level dataset, we estimate the impact of the source of health insurance on health care expenditures of farm households in the United States. Results suggest that farm households purchasing individual health insurance directly from vendors are likely to spend more on health care than those with other sources of health insurance. After controlling for a variety of personal and local area characteristics, having health insurance was negatively related to total health care expenditures. Age and income, not surprisingly, were also found to be significant in explaining health care expenditures.