Is disclosure the right way to comply with stakeholders? The Shell case

This paper is part of an ongoing research project and builds upon a previous one in which we explain the failure of the Agency Theory through the Shell case. In that, we analysed the behaviour of Shell managers, who reclassified oil reserves, playing with the share price because they owned share options. This previous paper established an important literature framework that is continued and organized to go deeper into our analysis in this paper. The goal here is to show that the way that is supposed to be the right tool to inform stakeholders – disclosure – is not enough, and even in the Shell case, no one would have noticed the problems with the oil reserves through the mere analysis of the company disclosure during the ‘strange period’ (1998–2003). The methodology used in this paper is lexical analysis, which seems to be an innovative and effective approach to the analysis of Corporate Social Disclosure, given the un‐codified nature of the latter. The conclusions obtained highlight the problem of lack of transparency in the contents of corporate social disclosure: some firms avoid communicating crucial contents, some others twist the results in order to camouflage advantages to shareholders or managers. If it is like this for disclosing firms, what is happening in the case of non‐disclosing firms?     

The challenges of developing transit tourism

This paper examines the challenges of attracting day-trip transit passengers in Asian hub airports. The rapid expansion of Asian hub airports in the past six years should produce opportunities for destinations to benefit from short-stay visits by transit and transfer passengers, using the hub for convenient connections. However, little short-haul transit tourism seems to occur. The authors propose that two reasons may account for this lack of demand: lack of opportunity or lack of desire. This study examines transit/transfer passengers from Chinese Taipei that pass through Hong Kong's International Airport. The study concludes that interest in transit tourism is high, but a lack of opportunity precludes higher participation rates. Intervention at the travel purchase decision-making point may enhance transit tourism opportunities.     

Segmentation of low-cost flights users at secondary airports

Low-cost carrier services are important for many tourist destinations. However, there is little information about the characteristics of travellers using low-cost airlines, and their flight preferences. The typical segmentation of air travellers is business versus leisure travellers; and business versus tourist fares. We use segmentation analysis focusing on low-cost travellers’ valuations of various flight attributes and trip-related characteristics, most notably those related to destinations, based on a sample of foreign travellers who used Girona Airport, Spain.     

Can platform competition support market segmentation? Network externalities versus matching efficiency in equity crowdfunding markets

We investigate whether, in spite of the existence of cross‐market network externalities, platform competition can lead to segmentation of the two sides of the market served by the platforms. We address this question in the context of competition between two equity crowdfunding platforms that connect startups looking for capital with prospective investors. Given the heterogeneity in the populations of startups and investors in terms of the riskiness of the former population and the degree of risk aversion of the latter population, we investigate whether there exists an equilibrium where the two populations are segmented to ensure an improved match between them. We find that the segmenting equilibrium can arise only when compatibility in terms of their risk profiles is of high importance to both populations, and compatibility is significantly more important than the size of the network externality considered by startups. Segmentation is likely to improve the welfare of both populations when the basic benefit from any kind of match is relatively high.     

A drunk and her dog: a spurious relation? Cointegration tests as instruments to detect spurious correlations between integrated time series

A significant correlation between integrated time series does not necessarily imply a meaningful relation. The relation can also be meaningless, i.e. spurious. Cointegration is sometimes illustrated by the metaphor of ‘a drunk and her dog’. The relation between integrated processes is meaningful, if they are cointegrated. To prevent spurious correlations, integrated series are usually transformed. This implies a loss of information. In case of cointegration, these transformations are no longer necessary. Moreover, it can be shown that cointegration tests are instruments to detect spurious correlations between integrated time series. This paper compares the Dickey–Fuller and the Johansen cointegration test. By means of Monte Carlo simulations, we found that these cointegration tests are a much more accurate alternative for the identification of spurious relations compared to the rather imprecise method of utilizing the R ²-and DW-statistics recommended by some authors. Furthermore, we demonstrate that cointegration techniques are precise methods of distinguishing between spurious and meaningful relations even if the dependency between the processes is very low. Using these tests, the researcher is not in danger of either neglecting a small but meaningful relation or regarding a relation as meaningful which is actually spurious.     

The Effects of Progressive Levels of Interactivity and Vividness in Web Marketing Sites

Abstract

This experiment examines interactivity and vividness in commercial web sites. We expected increased levels of interactivity and vividness would lead to more positive attitudes toward web sites, stronger feelings of telepresence, and greater attitude—behavior consistency. In addition, we expected increased levels of vividness to lead to the development of more enduring attitudes toward the site. Participants explored four web sites. Increases in interactivity and vividness were associated with increased feelings of telepresence. In addition, increases in vividness were associated with more positive and more enduring attitudes toward the web site. Implications for new media researchers and practitioners are discussed.     

The Effects of CEO Trustworthiness on Directors’ Monitoring and Resource Provision

This research investigates the interplay between leadership styles and institutional corporate social responsibility (CSR) practices. A large-scale field survey of managers reveals that firms with greater transformational leadership are more likely to engage in institutional CSR practices, whereas transactional leadership is not associated with such practices. Furthermore, stakeholder-oriented marketing reinforces the positive link between transformational leadership and institutional CSR practices. Finally, transactional leadership enhances, whereas transformational leadership diminishes, the positive relationship between institutional CSR practices and organizational outcomes. This research highlights the differential roles that transformational and transactional leadership styles play for a firm’s institutional CSR practices and has significant implications for theory and practice.     

Cultural compatibility in internal knowledge transfers: an application to hotel chain growth

This work addresses the internal transfer of knowledge from a cultural perspective when hotel chains grow. The analysis begins with an approach to the intra-organisational transfer of knowledge in hotel chain expansion. Later, culture in organisations is addressed; this gives rise to the proposal of cultural compatibility as a determinant of the intra-firm transfer of knowledge. Moreover, reference is made to possible sources of cultural incompatibility: location abroad of the new hotel, conversions where most employees stay, and small size of the new hotel. The hypotheses are tested in the Spanish hotel context. The results show effects and causes of the compatibility between the cultural context in which the knowledge to be transferred originated and the cultural framework in which it is to be implemented.     

Ownership structure and diversification in a scenario of weak shareholder protection

This work examines the influences of ownership concentration and insider ownership on corporate strategies for diversification within a scenario characterized by poor protection of shareholder interests. We find evidence of a quadratic relationship between ownership concentration and diversification, and a cubic relationship between diversification and insider ownership. These results point towards the high probability of both expropriation and entrenchment phenomena, respectively, in this kind of scenario. We also find that concentrated ownership requires high levels of insider ownership, in order to prevent negative externalities of diversification. Another result shows that entrenchment externalities affect diversification before they erode firm value, which suggests that for low levels of diversification, firm value is still not negatively affected. Additionally, our results show that control mechanisms, such as debt, director remuneration and compliance with codes of good practice, are negatively related to the level of diversification. Overall, our results confirm the theoretical relevance of agency theory in explaining managerial attitudes towards corporate strategy, i.e. diversification. Furthermore, companies characterized by deficiencies in shareholder legal protection, concentrated ownership structures and a higher likelihood of managers being entrenched, should focus on the correct functioning of corporate governance mechanisms.     

Reported gross income and marginal tax rates: estimation of the behavioural reactions of Spanish taxpayers

This article estimates, for the Spanish personal income tax, the elasticity of reported gross income to marginal tax rates. The identification of this elasticity has been performed using the reform approved by Law 35/2006, which came into force in January 2007. The elasticities obtained suggest the existence of important efficiency costs, with significant regional differences. The average elasticity estimated for Spain as a whole is 0.676. However, this elasticity is highly dispersed throughout the Spanish administrative regions, which indicates the unequal power of distortion of the tax. Thus, households whose principal source of income is salary display an elasticity of 0.337, compared to 0.682 for households whose main income source comes from business or savings. Lastly, a positive correlation is also detected between elasticity and income level: an elasticity of 3.6 is reached for taxpayers with an annual gross income exceeding 100 000€.