A Test of the Advertising Life-cycle Theory

New evidence is presented that lends support to Steiner's advertising life-cycle theory.     

Dysfunctional learning in decision processes: the case of employee reciprocity

While traditional economic models characterize individuals as boundlessly self‐interested, decades of empirical findings suggest that individuals' self‐interest motives are constrained by concurrent preferences for fairness. Individuals act on these preferences by behaving reciprocally: rewarding others perceived as behaving fairly and punishing others perceived as behaving unfairly. Successful firms must learn to navigate environments characterized by the reciprocity of their transaction partners. This paper investigates firms' judgments about employee reciprocity and posits a dysfunctional learning process whereby firms that overestimate employee reciprocity learn to correct their beliefs through feedback, while those that underestimate employee reciprocity do not. The result, demonstrated through computer simulation, is a systematic bias toward an overemphasis on employee self‐interest, and a resulting inefficiency in wage choices that hurts firm profitability. Copyright © 2011 John Wiley & Sons, Ltd.     

霓虹101 给新手的霓虹标识基础知识

从历史上来看,当在经济萧条时期或战争末期市场上充斥着“新过时“的人力资本时,人们会开始寻求新的机会。在目前的经济环境下,有些人可能会尝试标识这一行业。制作标识,尤其是霓虹灯招牌,并不是件轻松的事。然而,我却认识不少霓虹灯匠和标识制作者在这个行业中找到了宁静     

Information risk and credit contagion

This paper demonstrates a positive relationship between information risk and the credit contagion effect. We use abnormal changes in the Credit Default Swaps (CDS) spreads to measure the contagion effect, and the dispersion of analyst forecasts as a proxy for information risk. We find that firms with higher information risk suffer a greater contagion effect that occurs in advance to the credit default events. This finding is robust under controls of key firm-specific characteristics and general condition of stock and credit markets.     

The insolvent state: analyzing organized procedures for restructuring the bankrupt sovereign

The purpose of this Article is to examine the impetus behind the movement for a sovereign bankruptcy procedure. The intention is to look at what has (and has not) been said on this issue and evaluate the soundness of various proposals. Part II of this Article looks at the background of international debt crises and the underlying discussions that have taken place on this issue in the international arena. Part III looks at more recent thinking on the subject, sheds light on Argentina's catastrophic global debt crises, and discusses the statutory and market‐oriented solutions for sovereign debt crises. Part IV concludes that the way forward, for now, is to include majority action provision in bond contracts while encouraging responsible internal governance for sovereigns. Such an approach is beneficial until the international market revisits an overarching proposal. Copyright © 2007 John Wiley & Sons, Ltd.     

An event time study of the price reaction to large retail trades

This paper analyzes large retail trades using an event study approach. A major finding in studies of this nature is an immediate reversal on the trade subsequent to the large transaction, for both large purchases and large sales. This reversal is inconsistent with the overwhelming majority of previous findings which show a stock price continuation following purchases to the close of trading. We confirm the reversals first using transaction prices, and then show that continuations follow both large purchases and sales when quote data is used. These large trades do not lead to a fundamental change in stock price volatility. We conclude that the transaction price reversal is driven by natural bid-ask bounce around large purchases and large sales.     

MUTUAL FUND TRADES: ASYMMETRIC LIQUIDITY PREFERENCES AND FUND PERFORMANCE

We investigate the role of the liquidity of stocks traded by mutual funds on the performance of funds experiencing substantial and sustained redemptions (outflows) or inflows. Accordingly, we identify 770 redeeming fund‐periods and 1,757 inflow fund‐periods and find a statistically significant relation between the liquidity of the stocks they trade and the quantity of the stock traded. Notably, when funds experience redemptions, those with low portfolio liquidity have an elevated preference for selling more‐liquid stocks. In the following period, such funds statistically and economically underperform funds that sell less‐liquid stocks. This is consistent with redemptions detrimentally affecting shareholders that remain in a fund.     

Large trades and intraday futures price behavior

This study examines the effects of large trades executed by outside customer on the prices of futures contracts traded on the Chicago Mercantile Exchange. We find that, on average, large buyer-initiated trades have a larger permanent price impact (information effect) than large seller-initiated trades, whereas the opposite is found for the temporary price impact (liquidity effects) of large trades. These results are consistent with previous findings for block and institutional trades in equity markets. However, we also find that the information effects of large sells are larger than large buys in bearish markets, whereas the results are the reverse in bullish markets. The liquidity price effects of buys are larger than the liquidity price effects of sells in bearish markets whereas the reverse results hold in bullish markets. Our results are consistent with the hypothesis that the current economic condition is a key determinant of asymmetric price effects between large buys and large sells. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 28:1147–1181, 2008     

Workers of the Internet unite? Online freelancer organisation among remote gig economy workers in six Asian and African countries

This article presents findings regarding collective organisation among online freelancers in middle‐income countries. Drawing on research in Southeast Asia and Sub‐Saharan Africa, we find that the specific nature of the online freelancing labour process gives rise to a distinctive form of organisation, in which social media groups play a central role in structuring communication and unions are absent. Previous research is limited to either conventional freelancers or ‘microworkers’ who do relatively low‐skilled tasks via online labour platforms. This study uses 107 interviews and a survey of 658 freelancers who obtain work via a variety of online platforms to highlight that Internet‐based communities play a vital role in their work experiences. Internet‐based communities enable workers to support each other and share information. This, in turn, increases their security and protection. However, these communities are fragmented by nationality, occupation and platform.