Career Concerns and Resource Allocation in Conglomerates

We investigate resource allocation decisions in conglomerateswhen managers are motivated by career concerns. When divisionalcash flows are differentially informative about managerial ability,we show that it is in the managers' interest to overallocateunobservable intangible resources to the more informative divisions.Anticipating this bias, it is optimal for the firm's ownersto also overallocate observable capital to the more informativedivisions. The model provides rationale for corporate socialismand corporate hedging. It also highlights a cost of segmentreporting and tracking stocks, namely, that they allow managersto distort their perceived ability at the expense of investors.     

Does diversity matter? A fresh inquiry into the energy,economy and environment nexus

ABSTRACT

The article extends the literature on the nexus among economy, environment and energy by incorporating an index of electricity generation diversity in production and emission functions. The index is mathematically equivalent to Herfindahl–Hirschman index. The index captures substantial information regarding the ongoing energy transition at the global level. The results obtained through pooled mean group estimation, on a dataset of fairly diversified group of countries, indicate that if diversity index increases by a percentage point, per capita income increases by 2.4% and per capita emissions are reduced by 0.71%. This is against the conventional wisdom in favour of specialization. The study has found some interesting long-run causal pathways. Firstly, the causality runs from diversification to income. Secondly, there is a causality running from electricity consumption to specialization. Thirdly, bi-directional causality runs between emissions and specialization. The results have interesting policy implications. The study supports the growth hypothesis that the electricity consumption drives the economy. As this inevitably increases emissions, a better pathway is through diversification. The fossil fuel intensive pathway may have been the preferred choice in the past for countries with low electricity consumption; the diversified portfolio appears to be prudent in the future.     

Smoking prevalence in the United States: Differences across socioeconomic groups

This paper uses recent US state-level data to examine smoking behavior across four population groups divided by age, literacy, income and ethnicity. Another contribution lies in the consideration of various smoking control policies and the full costs of smoking. Overall, the results show that non-price smoking policies are relatively more effective than price or tax policies in reducing smoking prevalence and that these policies gain effectiveness as the population begins to age.

Costs of smoking and attempts to quit

Using recent cross-sectional state-level data for the US, this article examines smoking quitting behaviour by smokers. In particular, we uniquely focus on how the costs of smoking, both direct and indirect costs, induce smokers to quit. Results show that the price of cigarettes and home smoking restrictions are the primary thrusts behind smokers' quit decision. The indirect costs due to workplace smoking restrictions, medical costs and a lack of insurance do not seem to significantly matter. The habit-forming effect of cigarettes is shown to lead to greater quit attempts. Policy implications are discussed.     

Tourism and rural settlements Nepal’s Annapurna region

Functional and humanist perspectives relevant to counterurbanization studies are applied to examine the processes of growth and development of rural settlements affected by tourism. Based on a survey of tourism lodges located in several settlements in the Annapurna region of Nepal, this paper analyzes tourism-induced growth in such accommodations and its implications on changing characteristics. Results suggest the emergence of a hierarchical structure of rural settlements with core and peripheral traits. A normative classification of induced patterns defined by their development stage, size, and function is proposed. Historical, social, and economic influences on the transformation of rural settlements are discussed.     

The Influence of Religiosity on Consumer Ethical Judgments and Responses Toward Sexual Appeals

This research explores the influence of religiosity on consumer perception of, and response toward, sexual appeals. The first study (survey, national sample; n = 423) examines the relationship between religiosity and consumer response toward sexual appeals using causal modeling. Study 1 finds that high intrinsic religiosity consumers exhibit more adverse ethical judgments toward the company’s use of sexual appeals and these judgments, in turn, result in inferior attitudes and purchase intent toward the advertised brand. To confirm and expand on these findings, the second study (experiment, young adult sample; n = 216) examines the influence of intrinsic religiosity on consumer response toward both sexual and nonsexual appeals. The results show that sexual appeals elicit inferior (superior) ethical judgments, attitudes, and purchase intent among consumers high (low) in intrinsic religiosity. In contrast, nonsexual appeals elicit (un)favorable responses from consumers who are (low) high in intrinsic religiosity.     

The biotechnology industry and strategies of biodiversity conservation: The influence of managerial interpretations and risk propensity

This article presents the results of a questionnaire‐based mail survey which was conducted to examine the influence of managerial cognitions on the strategies for biodiversity conservation undertaken by individual companies in the North American biotechnology industry. The study confirmed that managerial issue interpretations and risk propensities were significant influences on organisational actions for biodiversity preservation. More specifically, the biodiversity conservation strategies undertaken by individual companies were influenced by whether or not the managers of these companies interpreted biodiversity conservation as an opportunity or a threat as well as the propensity of these managers to undertake risk on behalf of their companies. This article concludes that opportunity interpretations of biodiversity conservation by managers of biotechnology companies will be translated into proactive environmental responsiveness strategies in uncertain environments only if these managers also exhibit a high risk propensity. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.     

When loyalties clash purchase behavior when a preferred brand is stocked out: The tradeoff between brand and store loyalty

The interplay between brand and store loyalty is investigated in the situation of stockout of a preferred brand at a preferred store through three studies. A four-item scale for measuring store loyalty is developed and tested. While brand loyalty influences between-store substitution and within-store substitution in a stockout, store loyalty does not have any influence, suggesting the dominance of brand loyalty over store loyalty in a stockout. Relevance and implications of the results are discussed.