Managerial Rationale for Entry and the Relation to Performance and Small-Business Lending

In a survey of banks founded from 1994–2002, we find over 85% of respondents think their small-business market was underserved, 72% felt the market needed more competition, almost half indicated they were likely to start a bank because takeover activity displaced them, and 75% entered due to a market merger. Markets of banks started by displaced managers or following a merger have performance and lending characteristics similar to comparable banks, but larger changes in asset growth rates. Managers who responded that small-businesses were underserved have higher numbers and amounts of small-business loans 3 years after entry. Managers responding that entry was due to mergers eliminating community banks have lower ROA, but larger changes in market ROA. Markets had smaller changes in ROA when entry was to provide competition or when managers thought the small business market was underserved.

The impact of the review process in hypothesis generation tasks

This paper examines the performance of auditors in generating hypotheses in an analytical review case both prior to and after review. It partitions two possible sources of gain from the review process, namely the discussion effect and the rank effect. The discussion effect compares review groups with and without discussion. The rank effect compares seniors and audit managers. The study found that the review process results in more plausible hypotheses being generated. Discussion within the review process between reviewer and reviewee was found to be one source of gain from the review process. While there was no difference in the performance of the senior and manager reviewers, managers completed the task in less time.     

Decomposing Local: A Conjoint Analysis of Locally Produced Foods

Increasingly, foods are marketed as "locally grown." We use stated preference data from a choice-based conjoint instrument to address two issues surrounding consumer demand for locally produced goods: (1) what is the geographical extent of "local," and (2) is the value consumers place on "local" production distinct from other factors that are often confounded with locally produced foods such as farm size and product freshness? We find our subjects place similar value on products produced "in state" and "nearby" and that consumers' willingness to pay for local production is independent from values associated with product freshness and farm size.     

Fixed Asset Revaluation and Equity Depletion in the UK

UK GAAP has traditionally allowed the write-off of purchased goodwill directly to reserves, resulting in the widespread depletion of book equity. Companies have also been permitted to revalue fixed assets at management's discretion. This study examines whether upward revaluations have been associated with the depletion of book equity and with other costly contracting explanations identified in prior research. Our results provide strong support for the equity depletion hypothesis, both with regard to the decision to revalue and the timing of the revaluations. Indebtedness, liquidity, size and fixed asset intensity are also consistently associated with upward revaluation.     

Strategic Planning and Community Involvement as Contributors to Sustainable Tourism Development

This paper is concerned with the role of stakeholder driven strategic planning as a contributor to the ultimate sustainability of tourism development. An initial literature review describes the evolution of theory related to three specific issues in the study of tourism – sustainability of tourism development as a desirable goal, stakeholder participation as a contributor to sustainability, and strategic planning as an appropriate framework within which stakeholder driven development activity can occur. The review concludes that these concepts are well supported in the literature, with little empirical evidence available on which to base any meaningful level of support. It is therefore argued that the value of these propositions may exist more strongly in theory than in practice. After discussing a number of factors which may negatively impact upon the practical implementation of these theoretical constructs, the paper proposes a quantitative instrument by which a specific tourism development planning process can be assessed for its conformity with desirable principles of sustainability in tourism development. Closing paragraphs indicate an intention to test this instrument across a variety of regional settings.     

Timing,order and durability of new product advantages with imitation

This research examined the effects of timing, order and the durability of first mover advantages by analyzing the stock market reactions to new product introductions and imitations. The major findings are that both timing and order of moves are important and that rival reactions undermine the durability of first mover advantages. More specifically, (1) early and fast movers achieve greater gains than late and slow movers, and (2) first movers suffer at the time of new product imitations. Copyright © 2000 John Wiley & Sons, Ltd.     

A Falling of the Veils: Turning Points and Momentous Turning Points in Leadership and the Creation of CSR

Contemporary organizations often reciprocate to society for using resources and for affecting stakeholders by engaging in corporate social responsibility (CSR). It has been shown that CSR has a positive impact on employee attitudes. However, not all employees may react equally strongly to CSR practices. Based on socio-emotional selectivity theory (Carstensen in Science 312:1913–1915, 2006), we contend that the effect of CSR on employee satisfaction will be more pronounced for older than for younger employees, because CSR practices address those emotional needs and goals that are prioritized when people’s future time perspective decreases. In one multi-source field study (N = 143) and one experimental study (N = 500), we demonstrate that CSR indeed has a stronger positive effect on employee satisfaction for older relative to younger employees. Accordingly, engaging in CSR can be an attractive tool for organizations that aim to keep their aging workforce satisfied with their job.     

Identity Bias in Negative Word of Mouth Following Irresponsible Corporate Behavior: A Research Model and Moderating Effects

Current research has documented how cases of irresponsible corporate behavior generate negative reactions from consumers and other stakeholders. Existing research, however, has not examined empirically whether the characteristics of the victims of corporate malfeasance contribute to shaping individual reactions. This study examines, through four experimental surveys, the role played by the national identity of the people affected on consumers’ intentions to spread negative word of mouth (WOM). It is shown that national identity influences individual reactions indirectly; mediated by perceived similarity and sympathy. Consumers perceive foreign victims as different from the self and this reduces the sympathy experienced towards them. Sympathy is an emotion that shapes consumer reactions and regulates WOM. The study identifies two moderating processes of this effect. Individuals who score high on collective narcissism are most likely to be strongly biased against foreign victims. In-group bias is also moderated by the perceived severity of the crisis. When a case is perceived as very serious, perceived similarity plays a less important role in generating sympathy because consumers focus on the perceived suffering of the victims. Hence, in-group bias is stronger in cases perceived as having minor consequences. The paper contributes to the literature on corporate social irresponsibility and offers implications for both scholars and managers.