The moderating role of institutional networking in the customer orientation–trust/commitment–performance causal chain in China

This study uncovers the ignored role of institutional environment for marketing strategy and customer relationship management. Hypothesis tests in a sample of Chinese firms find support that channel networking strengthens the customer orientation–customer trust/commitment–firm performance (CTP) causal chain. In addition, the results show that government networking moderates this chain in a non-linear fashion. The CTP linkages are most salient when the firm develops a moderate level, rather than a high or low level of networking ties with government agencies.

Archie B. Carroll and Ann B. Buchholtz,Business and Society: Ethics and Stakeholder Management,fourth edition

Teaching Business Ethics -     

Jamie Mackie: scholar,mentor and advocate

With the passing of Jamie Mackie in April 2011, the intellectual and policy community in Australia lost a scholar, mentor and advocate who charted understandings of Indonesia, Southeast Asia and Australia's relations with Asia for over half a century. Mackie provided effective leadership and quiet inspiration for the development of Indonesian and Asian studies in three of Australia's top universities and throughout the nation. His intellectual contribution ranged across politics, international relations and economics. He urged students, fellow scholars, policy makers and the broader community to remember the historical basis of events in the region, strove to understand what ‘makes things tick’ in Indonesia and promoted racial tolerance in Australia. His style was low-key and personal, mentoring individuals and bringing together groups of like-minded people. While not dodging difficult issues, he was generally optimistic that sensible and sensitive approaches would enable Australia to live in greater harmony with its neighbours.     

An Examination of Long-Term Abnormal Stock Returns and Operating Performance Following R&D Increases

We examine a sample of 8,313 cases, between 1951 and 2001, where firms unexpectedly increase their research and development (R&D) expenditures by a significant amount. We find consistent evidence of a misreaction, as manifested in the significantly positive abnormal stock returns that our sample firms' shareholders experience following these increases. We also find consistent evidence that our sample firms experience significantly positive long‐term abnormal operating performance following their R&D increases. Our findings suggest that R&D increases are beneficial investments, and that the market is slow to recognize the extent of this benefit (consistent with investor underreaction).     

Do Spin‐offs Expropriate Wealth from Bondholders?

A wealth transfer from bondholders to stockholders is one of several hypotheses used to explain stockholder gains on the announcement of a spin‐off. However, previous empirical research has not found systematic evidence supporting the wealth expropriation hypothesis. Using a larger sample with comprehensive bond data, we find evidence consistent with wealth expropriation. Bondholders, on average, suffer a significant negative abnormal return during the month of the spin‐off announcement. However, even accounting for the loss to the bondholders, the aggregate value of the publicly traded debt and equity increases on a spin‐off announcement, suggesting that the wealth expropriation hypothesis is not a complete explanation of the stockholder gains. In explaining the magnitude of the losses to bondholders, we find they are a function of the loss in collateral in the spun‐off subsidiary and the level of financial risk of the parent firm. Consistent with a loss to bondholders, firms are more likely to have their credit rating downgraded than upgraded after a spin‐off. Additionally, consistent with the wealth transfer hypothesis, losses to bondholders tend to be more severe, the larger the gains to shareholders.     

Less pain,same gain: The effects of priming fairness in price negotiations

This research demonstrates that, by priming a consideration for fairness, a seller can increase a buyer's satisfaction without sacrificing profit. In simulated negotiations, participants primed to consider fairness demonstrated more cooperative behavior, making greater concessions that led to faster agreement. Fairness‐primed buyers consequently had a more positive attitude toward the seller and expressed significantly greater positive subjective disconfirmation of their expectations. These results show how self‐interest and social utility can work in concert once a concern for fairness is activated. The results support the Models of Social Utility and Group Identification and confirm the Expectancy Disconfirmation Model of Negotiations. © 1999 John Wiley & Sons, Inc.     

The attitudes and nutritional knowledge of 11‐ to 12‐year‐olds in Merseyside and Northern Ireland

School is a major area for providing young people with nutritional knowledge and skills. In Northern Ireland home economics (HE) is taught to 11‐ to 12‐year‐olds. The 1988 Education Reform Act introduced the national curriculum and HE as a subject was effectively abolished in English schools, and key stage 3 pupils in England are taught nutrition in Science, Design and Technology and in the cross curricular theme of health education. The aim of the study was to compare the attitudes and nutritional knowledge of children in Merseyside, England (M) and Northern Ireland (NI). A questionnaire was designed, which examined attitudes to aspects of healthy eating and tested the subject's knowledge, practical and theoretical, on nutrition and healthy eating. Subjects aged 11–12 years were recruited (M: 541, NI: 128). The majority ‘understood and knew what to eat to have a healthy diet’, ‘liked the taste of healthy food’ and considered that ‘there were healthy foods at home’. However, a significantly greater number in Merseyside agreed that ‘their health will be affected in the future by what they eat now’ (M: 71%, NI: 54%, P < 0.01) and agreed that ‘they enjoyed cooking’ (M: 76%, NI: 56%, P < 0.01). Whereas more from Northern Ireland agreed that ‘they do not know what foods to eat to have a healthy diet’ (M: 14%, NI: 30%, P < 0.01), ‘that healthy eating involved “dieting” ’ (M: 29%, NI: 59%, P < 0.01) and agreed that ‘there are no healthy food choices at school’ (M: 23% NI: 42%, P < 0.01). More subjects from Merseyside disagreed that ‘healthy eating is a waste of time’ (M: 87%, NI: 77%, P < 0.01). The mean knowledge scores (correct answers) from Merseyside were significantly greater than from Northern Ireland (total score: M: 51%, NI: 43%P < 0.05; practical score: M: 58%, NI: 49%P < 0.05, theory score: M: 38%, NI: 31%, P < 0.05). The results indicate that the healthy food message seems to have been better learnt by children in Merseyside but results of surveys in Merseyside into eating habits suggest that many have not put this knowledge into practice.     

The Wealth Effects of Repurchases on Bondholders

Prior research has documented positive abnormal stock returns around the announcements of repurchase programs; several explanations of these returns have been suggested, including signaling, free cash flow, and wealth redistributions. This study analyzes abnormal stock, bond, and firm returns around repurchase announcements to examine these hypotheses. We find evidence consistent with both signaling and wealth redistribution. The loss to bondholders is a function of the size of the repurchase, and the risk of the firm's debt. We also find that bond ratings are twice as likely to be downgraded as upgraded after the announcement of the repurchase program.