The role of corporate governance strength in crisis and non-crisis times

This study evaluates corporate governance practices of listed firms in the United Arab Emirates and investigates whether corporate governance mitigates/exacerbates the impact of leverage and risk on firm performance during crisis and non-crisis times. The study constructs a corporate governance index not only to examine the dispute of the role of corporate governance during the crisis but also its influence on other factors that fuelled the crisis. A firm-level panel data is used that spans the period 2008–2012 of all listed firms on Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM). The study finds a positive influence of corporate governance strength on the accounting performance, but a negative influence on the firms’ economic performance. In normal times, corporate governance mitigates the negative influence of leverage and risk on the accounting and economic firm performance. However, this synergy effect varies across performance indicators during crisis.     

Measuring Market Power in the Integrated Malaysian Poultry Industry: New Empirical Industrial Organization Approach

This article examines the level of competition that prevails in the Malaysian poultry markets by using the new empirical industrial organization methodology. We follow the Bresnahan (1982) and Lau (1982) oligopoly model, which allows the identification of market power using aggregated time-series data. The methodology involves the estimation of demand and supply equations for the identification of the parameters measuring the degree of market power. This study uses annual data from 1980–2010 to estimate the demand and supply equations of the poultry market in Malaysia. The estimation results show that the demand for chicken meat is inelastic (?0.124), indicating that consumers are not sensitive to price change. On the other hand, income is elastic at 3.636, implying that poultry meat is a luxury. The cross-price elasticity with respect to beef is ?2.405, rejecting beef as a substitute to chicken meat in Malaysia. The coefficient of conduct parameters for the three subperiods of 1980–1990, 1991–2004, and 2005–2010 measuring market power are 0.6740, 0.5540, and 0.5790, respectively. The results indicate imperfect competitive market in the poultry industry as more farmers opt to join poultry integrators.     

Determinants of App Stores Continuance Behavior: A PLS Path Modelling Approach

Prior research has mostly examined the satisfaction, intention, and behavior of users toward technology and systems in general, and little research has been dedicated to understanding apps commerce and app stores. Drawing upon the extended model of IT continuance and theory of information overload as a theoretical foundation, the aim of this study is to examine consumer satisfaction, continuous intention, and behavior toward apps shopping. A total of 347 valid questionnaires were collected from experienced consumers with app stores to statistically test the theoretical model using the partial least squares path modelling approach, a structural equation modelling technique. The results show that apps self-efficacy, post-usage usefulness, disconfirmation, facilitating conditions, perceived information overload, apps satisfaction, and apps continuance intention can be used to predict and explain 75.7% of variance in consumer’s continuance behavior in using app stores. The negative and positive causal relationship between constructs, managerial implications, and limitations are discussed.     

The Effects of Audit Committee Attributes on Fraudulent Financial Reporting

This study aims to examine the relationship between audit committee attributes （audit committee independence, financial expertise, meeting frequency, gender diversity, and ethnic composition） and the propensity for fraudulent financial reporting. The sample includes 116 fraudulent and non-frandulent firms listed on Bursa Malaysia from 2005 to 2010. The finding of this study indicates that audit committee independence is positively associated with fraudulent financial reporting. The higher the proportion of independent or outside directors on the committee, the higher the possibility of financial fraud, and vice versa. The results also show that the expertise of members of the audit committee is negatively associated with corporate fraud. This suggests that when audit committee members are financially literate, they are more competent to curb fraudulent financial reporting. However, the findings for frequency of audit committee meetings, gender, and ethnicity show that there is no relationship between these variables and corporate fraud. The result of this study is robust after controlling for other firm-specific effects.     

What we know,what we still need to know: the Asian currency crisis revisited

From the literature on currency crises, it is widely understood that weak economic fundamentals increase tremendously the probability of currency crises, especially in emerging markets. However, what was not known is that an accumulation of small problems interacting with each other can be equally damaging. Using a new technique, a combination of Classification and Regression Tree (CART) and Logit regression, this paper re‐examines the causes of the Asian currency crisis in 1997–98. The results indicate that although weak fundamentals were at the root of the crisis, only self‐fulfilling panic and herd behaviour can explain the severity of the crisis. Contrary to previous empirical research, our results indicate that the Asian crisis was caused by the accumulation of small fragilities rather than large deficiencies in the macroeconomic fundamentals. An important policy implication of such findings is the need for governments not to underestimate small problems, which, when they interact, can create chaos. Another novelty of this paper is the interpretation of the crisis in terms of the concepts of trigger and vulnerability, using an empirical model that captures the magnitude of the self‐fulfilling panic and its contribution to capital reversal and eventually to the collapse of the currencies.     

A new fuzzy multi-criteria framework for measuring sustainability performance of a supply chain

Sustainable supply chain performance measurement is aimed at addressing environmental, social and economic aspects of sustainable supply chain management. It can be argued that it is not easy to reduce all dimensions of sustainable supply chain to a single unit. Then, the issue is that all valuations should somehow be reducible to a single one-dimensional standard. Multi-criteria evaluation introduces a framework to remedy this issue. As a consequence, multi-criteria evaluation seems to supply a proper and adequate assessment framework for sustainable supply chain assessment. In this study, a multi-criteria framework based on fuzzy entropy and fuzzy multi-attribute utility (FMAUT) is proposed in order to evaluate and compare the company performances in terms of sustainable supply chain. However, note that reducing all aspects of sustainable supply chain to a single unit using a multi-criteria framework may not be sufficient to satisfy all the needs of decision makers although it is used to evaluate sustainability performance of supply chains with respect to three aspects. Therefore, in this research, an alert management system is also developed to satisfy further requirements of users. The proposed frameworks are tested using data obtained from one of the middle sized Turkish grocery retailers.     

Truth-telling and trust in sender–receiver games with intervention: an experimental study

Recent experimental studies find excessive truth-telling in sender–receiver games. We show that this phenomenon is robust to the random intervention of a truthful regulator. In addition, intervention significantly increases the excessive trust of receivers while the overall percentage of truthful messages received does not change much with or without intervention. We offer a theoretical explanation for the behavior of senders and receivers, using a logit agent quantal response equilibrium (logit-AQRE) model incorporating a non-monetary lying cost for senders (like Peeters et al. in Scand J Econ 115(2):508–548, 2013). We show that our experimental findings are all consistent with the predictions of this model. Moreover, we find that the lying cost is significantly higher under intervention, implying that truthful intervention is beneficial for receivers and justified as a tool for policy makers acting on behalf of informationally inferior parties.     

Measuring Congruence of Affective Images of Destinations and Their Slogans

This study examines whether consumers' emotive responses to a destination slogan are consistent with their reactions to the destination that the slogan is created for and whether affective image congruence between the two contributes to destination brand awareness. Findings conclude that destinations and their slogans may not evoke similar emotions and that affective similarity between a destination and its slogan significantly improves consumers' ability to correctly identify a destination from its slogan. This study proposes and tests a practical tool to aid destination marketers in their effort to evaluate the effectiveness of their brand slogans. Copyright © 2012 John Wiley & Sons, Ltd.