It's about our values: How founder's stories influence brand authenticity

Companies increasingly share the stories behind their brand's founding to engage consumers. The current studies explore how the motives that underlie business formation in founder's stories influence consumer brand perceptions. Specifically, stories that highlight self‐transcendence (vs. self‐enhancement) founder values enhance the perceived authenticity of the focal brand. We examine narrative co fidelity as a mechanism of narrative persuasion through which the audience judges whether the motives underlying character actions represent “good reasons” for action. Across three studies, we show that the values underlying a founder's motivation to start a business influence the perceived authenticity of the associated brand, and this relationship is mediated by narrative fidelity. Further, reader's personal values moderate the influence of founder's values on narrative fidelity judgments, and the relationship between narrative fidelity and brand authenticity is attenuated by a merger between the original company and another company, demonstrating a boundary condition of the observed relationships.     

Value Relevance of Comprehensive Income for the Canadian Market*

The value relevance of comprehensive income (CI) compared to net income (NI) remains unresolved. We look at this issue in the Canadian market, using association methods to determine the value relevance of reporting CI and other comprehensive income (OCI) components for stock prices and returns. The sample consists of all the firms in the S&P/TSX Composite Index that prepared their financial statements according to Canadian standards or International Financial Reporting Standards (IFRS) over the 2008–2016 period. Although we find no evidence that CI is more value relevant than NI for stock prices and returns, we note that some OCI components are incrementally value relevant beyond NI for both amounts. In addition, financial services firms differ from other companies in terms of the relationships between some of their OCI components and prices or returns, with such firms even driving some relationships. Relationships between OCI components and prices or returns are also affected when data from the financial crisis period are excluded, with some relationships even changing after IFRS adoption. These results inform Canadian standard setters and financial statement users that OCI components are decision useful for the Canadian market.     

Measuring poverty and income distribution in Southeast Asia

The paper surveys the extensive research on the measurement of poverty and inequality in Southeast Asia over the last five decades. It examines the work carried out by both independent scholars and international agencies including the World Bank and the Asian Development Bank. The paper argues that the household surveys carried out by national statistical agencies across the region, and used by most researchers, are often flawed. These flaws have led to rather misleading results both for individual countries and for cross‐country comparisons. Further problems have been found in the data on purchasing power parities (PPP) which have been used by the World Bank to estimate poverty both in Southeast Asia and in other developing countries. The paper also points out that estimates of poverty and inequality are often politically sensitive, and argues that a more accurate understanding of the estimation problems will only emerge if governments support rather than suppress open debate over measurement problems.     

Personalized charity advertising. Can personalized prosocial messages promote empathy,attitude change,and helping intentions toward stigmatized social groups?

This study examines the role of personalized charity advertising in promoting empathy, attitude change, and helping intentions toward stigmatized social groups. Based on theories of message involvement, empathy, and reactance, we predicted that higher levels of involvement elicited by a personalized charity advertisement would reinforce empathy and prosocial outcomes. An online experiment was conducted using a personalized and a nonpersonalized version of a charity advertisement for a campaign soliciting donations of winter coats for homeless people. As expected, structural equation modeling revealed a positive indirect effect of personalization on prosocial outcomes (attitudes and behavioural intentions toward homeless people, and willingness to donate to the campaign) that was mediated by involvement and empathy. However, in addition to promoting involvement and empathy, personalization also led to heightened reactance, which detracted from the positive effects. Theoretical as well as practical implications of the findings for personalized charity advertising are discussed.     

Automatic leading indicators versus macroeconometric structural models: A comparison of inflation and GDP growth forecasting

This paper compares the forecast performance of automatic leading indicators (ALIs) and macroeconometric structural models (MESMs) commonly used by non-academic macroeconomists. Inflation and GDP growth form the forecast objects for comparison, using data from China, Indonesia and the Philippines. ALIs are found to outperform MESMs for one-period-ahead forecasts, but this superiority disappears as the forecast horizon increases. It is also found that ALIs involve greater uncertainty in choosing indicators, mixing data frequencies and utilizing unrestricted VARs. Two ways of reducing the uncertainty are explored: (i) give theory priority in choosing indicators, and include theory-based disequilibrium shocks in the indicator sets; and (ii) reduce the VARs by means of the general-to-specific modeling procedure.     

Invisible costs in offshoring services work

Offshoring service work is an accelerating trend. While the cost-savings from offshoring service work are usually clear, operating at a distance also brings with it certain “invisible costs.” We combine existing service operations theory with insights from the literature on communications and culture to present a new conceptual framework, organized around interaction intensity and interaction distance. We identify the drivers of these costs. We conclude with recommendations for controlling or attenuating invisible costs in offshoring service work.     

Utility maximization under a shortfall risk constraint

The article analyzes optimal portfolio choice of utility maximizing agents in a general continuous-time financial market model under a joint budget and downside risk constraint. The risk constraint is given in terms of a class of convex risk measures. We do not impose any specific assumptions on the price processes of the underlying assets. We analyze under which circumstances the risk constraint is binding. We provide a closed-form solution to the optimization problem in a general semimartingale framework. For a complete market, the wealth maximization problem is equivalent to a dynamic portfolio optimization problem.     

Accounting students’ choice of blended learning format and its impact on performance and satisfaction

Using online platforms to deliver educational content, some institutions have developed blended courses that combine the advantages of online instruction with traditional face-to-face (F2F) teaching. This study compares accounting student performance and satisfaction in two blended formats with similar content and design, i.e. F2F+ vs. Online+ courses. It also assesses the characteristics of students who choose the latter option over F2F+ courses. Students in four advanced accounting subjects were surveyed and their course performance was obtained. Results indicate that the main determinants of students’ decision to register for an Online+ course are retaking the course, increased weekly work hours, and belief that this type of blended course facilitates learning. Results show that students in advanced accounting courses with equivalent content and design perform similarly and have the same level of course satisfaction across course delivery formats, as hypothesized under equivalency theory.     

Stakeholders,the natural environment and the future of Caribbean cruise tourism

Given the sheer complexity of effectively managing the web of potential stakeholders in any tourism development it is argued that for the future of Caribbean cruise tourism, the task is compounded by several key issues that warrant discussion. These include the economic dependency of the Caribbean region on tourism, the inequity of power relations between the various stakeholder groups and the lack of proven collaboration within this fragmented region of culturally diverse islands. This paper addresses these issues, discussing the importance of collaboration and planning for development, highlighting the disparate needs of the different stakeholders involved and drawing attention to the continuing paradox between maximising the opportunities presented by Caribbean cruise tourism whilst effectively managing its sustained development. Copyright © 2004 John Wiley &Sons, Ltd.     

Making the ‘rules of the game’: Constituting territory and authority in Nicaragua's indigenous communities

Indigenous communities, particularly in Latin America, are increasingly winning recognition of rights to lands and forests that they have managed or used historically under customary institutions. If property refers to ‘the rules of the game’, this article uses the constitution of indigenous communal territories in Nicaragua to examine the process of ‘making the rules’. Specifically, the recognition of rights by central governments leads to political contestations over both territory and authority as communities and indigenous political leaders vie for different configurations of both lands and new territorial authorities. That is, the process of constituting large collective territories is intimately related to the constitution of authority, as it involves not only the negotiation of physical boundaries but also the recognition of an existing authority structure – or the creation of a new entity – to represent the beneficiaries. In Nicaragua's North Atlantic Autonomous Region, then, the decision over ‘which configuration of territory’ is ultimately a political negotiation over which ‘authority’ will have the right to control and enforce access to which rights and benefits from land and natural resources.