Determinates of financial behavior: insights into consumer money attitudes and financial literacy

As consumer requirements for financial services permeate society, they link various financial institutions more closely together, developing divergent financial products. This research develops a conceptual framework for discussing consumer money attitudes, financial literacy regarding financial decisions, and financial behavior. Study findings suggest that consumers who have retention-planning and achievement-esteem attitudes toward money make high-risk financial decisions; anxiety toward money tends to exist mainly in low-risk investors. Financial literacy affects consumer financial behaviors, and demographic variables play segmentation roles. Theoretical contributions and management implications are provided in the study for related research, education departments and financial firms.     

The product development process of an enterprise from an SSME perspective

This study empirically explores a real-world manufacturer product development process from a service science perspective. In this era of keen global competition, the process of product development is crucial for companies before the final product is launched to the market. The poor development of a product can fail to meet customer needs and result in product failure, which can even lead to significant losses for manufacturers. However, traditional product development processes are much more manufacture-oriented rather than customer-involved. In this paper, we aim to use the Service science, management, and engineering (SSME) perspective, proposed by IBM, to improve product demand asymmetries by discovering true user requirements in order to enhance customer involvement and lead to better product development. We show how SSME is applied in the context of product development and in the discovery of customer needs, and propose a modified process based on SSME to the product development process.     

Major weapons procurement: An efficiency-based approach for the selection of fighter jets

This study applies the epsilon-based measure method in data envelopment analysis (DEA) to evaluate processes in procuring fighter jets (FJs), which are indicative of the technology and capability of major weapons. Moreover, multidimensional scaling analysis and sensitivity analysis were included to assess the selection of FJs. The DEA analysis indicates that the overall efficiency of the sample of 26 FJs was 0.824 on average. Besides, procurers rely on price and capability to decide which FJ models to purchase. Overall, the evaluation results can be provided to procurement decision makers even in selecting other types of major weapon in a cost-effective manner.     

Co-production and customer loyalty in financial services

Recent developments in marketing thought and practice highlight the opportunities that co-production of services provide for creating customer value. The authors propose a model of co-production with which they investigate the links between co-production and customer loyalty and the factors likely to increase the level of co-production in a financial services context, with support from an investigation in the medical services context. Further, the authors consider the relationships of customer expertise, customer–advisor communication, customer affective commitment, and interactional justice with the level of co-production. On the basis of testing with a sample of 1,197 customers of a large multinational financial services organization and 100 patients of medical services, the model is partially supported. Therefore, the authors suggest that co-production may have an important role as a basis for competition in the financial services industry.     

Static hedging and pricing American options

This paper utilizes the static hedge portfolio (SHP) approach of Derman et al. [Derman, E., Ergener, D., Kani, I., 1995. Static options replication. Journal of Derivatives 2, 78–95] and Carr et al. [Carr, P., Ellis, K., Gupta, V., 1998. Static hedging of exotic options. Journal of Finance 53, 1165–1190] to price and hedge American options under the Black-Scholes (1973) model and the constant elasticity of variance (CEV) model of Cox [Cox, J., 1975. Notes on option pricing I: Constant elasticity of variance diffusion. Working Paper, Stanford University]. The static hedge portfolio of an American option is formulated by applying the value-matching and smooth-pasting conditions on the early exercise boundary. The results indicate that the numerical efficiency of our static hedge portfolio approach is comparable to some recent advanced numerical methods such as Broadie and Detemple [Broadie, M., Detemple, J., 1996. American option valuation: New bounds, approximations, and a comparison of existing methods. Review of Financial Studies 9, 1211–1250] binomial Black-Scholes method with Richardson extrapolation (BBSR). The accuracy of the SHP method for the calculation of deltas and gammas is especially notable. Moreover, when the stock price changes, the recalculation of the prices and hedge ratios of the American options under the SHP method is quick because there is no need to solve the static hedge portfolio again. Finally, our static hedging approach also provides an intuitive derivation of the early exercise boundary near expiration.     

A ‘Knowledge Trading Game’ for collaborative design learning in an architectural design studio

Knowledge-sharing and resource exchange are the key to the success of collaborative design learning. In an architectural design studio, design knowledge entails learning efforts that need to accumulate and recombine dispersed and complementary pieces of knowledge. In this research, firstly, ‘Knowledge Trading Game’ is proposed to be a way for promoting students’ design knowledge exchange, dissemination and refinement. Twelve students are randomly chosen as experimental participants. And secondly, ‘virtual value’ is used for students to trade their design knowledge. In this game, students buy others’ design knowledge to extend their design problem space; students decrease their design solution space through their sold design knowledge. Finally, ‘protocol analysis’ is adapted as the research methodology to examine the results of implementation. A positive outcome is identified that Knowledge Trading Game encourages collaborative design learning.     

Parallel trade with an endogenous market structure

This paper sets up a two‐country model in which there is one domestic manufacturer authorising its product to a distributor in the foreign country. The distributor can sell the product not only to its own market (i.e., the foreign market) but also back to the domestic market. The latter is called parallel trade (PT). The paper investigates the effects of PT on the profits of the manufacturer and social welfare if the domestic market structure is endogenously determined. It is found that PT should be encouraged rather than banned as it increases not only the profits of the manufacturer but also the welfare of both the domestic and the foreign countries.     

This is why I have decided to stop helping you: A theoretical model of help-giving discontinuity in organizations

Drawing upon conservation of resources (COR) and attribution theories, we develop a help-giving discontinuity model. From the COR perspective, we theorize that when help-giving is perceived to be obligation, prevention-focused self-regulation is triggered, which induces help-giving discontinuity to prevent further loss of resources. Additionally, when a low likelihood of receiving reciprocated help is perceived, prevention-focused self-regulation is activated, which induces help-giving discontinuity due to insufficient replenishment of resources. From the attribution perspective, we propose that a co-worker's lack of effort and recurrence of the same task-related issue promote dispositional attributions, which result in help-giving discontinuity. Our model, therefore, provides an important theoretical base for future research investigating why some employees continuously help others while others do not.     

How can corporations adopt Confucianism in business practices? Two representative cases

Ethics is one of the oldest scholarly topics, whether in Eastern Confucianism, Daoism, and Buddhism, or Western Deontology, Utilitarianism, and Virtue Theory, among others. Traditional ethics focuses on providing guidelines for behavior at a personal level. However, business ethics focuses more on corporations, with related studies addressing why corporations should practice social responsibility and embed ethics in business practices. Applying ethics to firms requires a variety of considerations in many areas. This is especially the case in Confucianism, which emphasizes self‐cultivation, self‐reflection, and self‐discipline. This study investigates two modern representative cases of Confucian firms and observes how they integrate Confucianism into their business practices. It finds that despite the prevalence of a complex environment, Confucianism can still be adopted by them if they use certain methods. Besides, we also identify the common outcomes across these companies. These findings provide a reference for companies that want to incorporate Confucianism in their operations.     

Management earnings forecasts and bank loan contracting

We find that firms tend to issue management earnings forecasts and convey good news before bank loan initiation. Issuing firms enjoy more favorable contracting terms and attract more lenders. Management forecasts issuance within a nine‐month period prior to the loan activating quarter can lower the subsequent loan spread by 14.06 basis points. Moreover, firms with larger management forecast errors are charged harsher contracting terms and attract fewer lenders. Our study suggests that firms strategically issue management earnings forecasts before entering into debt contracts and lenders incorporate the information contained in management earnings forecasts into bank loan contracting.