Spanning the Globe: The Rise of Global Communications Systems and the First Globalisation

After postulating the relevance of information for trade costs we outline the rise of international communication networks (mail, telegraph, telephone) during the first globalisation of the long nineteenth century. In this period, global communications systems for the first time in history provided universal access to affordable and reliable means of communication. Using a new set of internationally comparable data on global postal flows, we analyse basic determinants of international information exchange and conclude by outlining a research agenda that links these to international trade patterns and knowledge transfer between countries.     

REGULATION AND THE PAYDAY LENDING INDUSTRY

Using a unique, multistate data set and exploiting policy heterogeneity across states and time, I examine average and marginal effects of changing payday‐lending policies on county‐month‐level branch counts between January 2001 and December 2010. Average results on operating branches are mixed: the effects of adopting liquidity requirements and fee ceilings are negative while the effects of adopting balance and rollover limits are positive. Adopting balance limits decreases new branch counts. Marginal effects of relaxing rollover ceilings are positive for operating branches, though negative for new branches. Results highlight the need to consider both consumer‐ and producer‐interest perspectives when examining the relationship between industry and regulation. (JEL L22, G28, D22)     

Mean Reversion in Investment Decisions: The Case of Hollywood*

One explanation for the comparatively lower quality of movie sequels is selection bias, known in personnel economics as the Peter principle. Only abnormally successful movies are selected for a sequel. Another explanation is a deterministic depreciation in quality due to the decline in the novelty of the sequel’s characters and storyline. Both explanations predict that, relative to the original, the sequel’s performance will revert towards the mean. We develop a structural model to decompose the two explanations, and estimate its parameters using detailed data on 306 franchise films and 2,823 non-franchise films between 1995 and 2014. Parameter estimates provide evidence of selection bias for action & adventure and horror movies, and evidence of a deterministic decline in quality for comedies.     

The Importance of Mutual Understanding Between External Accountants and Owner–Managers of SMEs

This study investigates the perspective of the owner–manager of a small or medium‐sized enterprise (SME) on the importance of mutual understanding with an external accountant. Mutual understanding means that the owner–manager understands what the accountant is saying and feels understood by the accountant. The results, based on 310 completed surveys of Belgian owner–managers, show that owner–managers who have a high level of mutual understanding use the advice of their external accountant more extensively. This is in turn positively linked to the financial health of an SME. Furthermore, several drivers that enable the establishment of a high level of mutual understanding are explored. Owner–managers with a high level of mutual understanding consider their accountant as a strategic partner, experience a high level of proactive behaviour with them, have a higher frequency of formal contact, and perceive informal contact as important. External accountants should consider these opportunities in their client management and training of internal staff. Education of clients and openness also seem very important, as the level of a client's accounting knowledge, the number of accounting topics owner–managers deal with, and transparency towards the accountant are significantly positively related to mutual understanding.     

The role of regulatory capital in international bank mergers and acquisitions

When investigating the role of regulatory capital in bank mergers and acquisitions (M&As) we finds that US targets are better capitalized than their acquirers and non-acquired peers and that US banks maintain higher capital levels than European banks. Thus, US banks strategically raise their capital levels to avoid regulatory scrutiny. Furthermore, more value is created for targets with high excess capital and in M&As involving targets with considerably higher excess-capital ratios than their acquirers. Thus, the excess regulatory capital hypothesis is supported. Finally, market prices reflect the influence that capital has on the probability of the merger's regulatory approval.     

LONG‐RUN VERSUS SHORT‐RUN PERSPECTIVES ON CONSUMER SCHEDULING: EVIDENCE FROM A REVEALED‐PREFERENCE EXPERIMENT AMONG PEAK‐HOUR ROAD COMMUTERS

Earlier studies on scheduling behavior have mostly ignored that consumers have more flexibility to adjust their schedule in the long run than in the short run. We introduce the distinction between long‐run choices of travel routines and short‐run choices of departure times, using data from a real‐life peak avoidance experiment. We find that participants value travel time higher in the long‐run context, supposedly because changes in travel time can be exploited better through the adjustment of routines. Schedule delays are valued higher in the short run, reflecting that scheduling restrictions are typically more binding in the short run.     

Antecedents and consequences of the quality of e-customer-to-customer interactions in B2B brand communities

The opportunities that interactions in business-to-business (B2B) brand communities offer companies as well as brand community members have already been recognized by B2B firms, but are still an underexplored field of B2B academic marketing research. To provide a first step in analyzing B2B brand communities, we develop a conceptual framework of the quality of customer-to-customer (C2C) interactions in B2B brand communities by drawing on several theories and concepts (e.g., social exchange theory, uses and gratifications approach and value-in-the-experience). Based on an online survey (n = 330) spanning three virtual B2B brand communities in the IT-sector, we test our framework using structural equation modeling. Our results reveal that brand trust has a positive impact on brand community trust. Brand community trust leads to an increase in the quality of C2C interactions in B2B brand communities. Furthermore, we demonstrate that the quality of C2C interactions in B2B brand communities has a positive impact on functional, experiential, and symbolic brand community benefits, which, in turn, foster brand loyalty.     

Worker–Plant Matching and Ownership Change*

Is a change in ownership an opportunity for the new owners to make systematic changes to the workforce of the acquired plant? Using matched employer–employee data, we document changes to the workforce along observable and unobservable dimensions of worker quality around the time of ownership change. We observe above-average separations of workers around domestic acquisitions. This is associated with a decline in unobserved worker quality in the plant. Foreign acquisitions are not associated with above-average worker turnover; instead, new foreign owners share rents with the high-skilled workers who are already in the plant before the acquisition.