Ambivalence toward a country and consumers?? willingness to buy emblematic brands: The differential predictive validity of objective and subjective ambivalence measures on behavior

Previous country-of-origin research has treated opinions of countries as either positive or negative, even though people may in fact hold conflicting opinions about countries. The extant literature on ambivalence suggests that the coexistence of positive and negative opinions of a country should increase avoidance of objects associated with that country, above and beyond the effects of mere positivity or negativity. Data collected from French consumers who varied in degrees of ambivalence toward the US reveal that ambivalence, measured indirectly through consumers?? coexisting positive and negative views, is indeed negatively related to consumers?? willingness to buy emblematic American brands. The findings highlight the latent nature of ambivalence, the difficulty of assessing the subjective experience of the ambivalence state, and the importance and practicality of using indirect measures.     

The moderating effect of environmental uncertainty on the relationship between real options and technological innovation in high-tech firms

In the past decade, management scholars have applied aspects of real options theory to organizational settings, considering it an approach to enhancing strategic flexibility in the firm. They have also recognized that technological innovation is a critical mechanism through which high-tech firms try to secure a place in the competitive world of the future. Uncertainty about the environment makes it very important to analyze both factors, since the use of real options obligates managers to reflect constantly on future scenarios for which they will have to propose innovative solutions. This paper attempts to apply the theory of real options to innovation theory to propose a model in which real options reasoning improves the level of product/process technological innovation. We argue that this improvement will increase when the environment's level of uncertainty is higher. The proposal is supported empirically by a study performed on a sample of technology firms from different countries in the European Union.     

Do Acquirers Manage Earnings Prior to a Share for Share Bid?

Abstract:  Earnings management by acquirers ahead of share for share bids may affect whether a bid succeeds, and hence which management team controls the target's assets, as well as the distribution of gains between target and acquirer shareholders. This paper tests for such earnings management for the UK, the world's second largest takeover market, in the period 1997–2001 when M&A reached record levels and share for share deals came to account for the majority of expenditure. Using a range of approaches originating in Jones' model, the paper finds evidence consistent with earnings management ahead of share-financed bids.     

SHORT‐RUN AND LONG‐RUN DETERMINANTS OF THE REAL EXCHANGE RATE IN MEXICO

This paper explores the real exchange rate behavior in Mexico from 1960 until 2005. Since the empirical analysis reveals that the real exchange rate is not mean reverting, we propose that economic fundamental variables affect its evolution in the long run. Therefore, based on equilibrium exchange rate paradigms, we propose a simple model of real exchange rate determination, which includes the relative GDP per capita, the real interest rates, and the net foreign assets over a long period of time. Our analysis also considers the dynamic adjustment in response to shocks through impulse response functions derived from the multivariate vector autoregressive (VAR) model.     

Weg vom negativen Branchenimage — mit Subtyping zur Arbeitgebermarke

Zusammenfassung  Employer Branding, die Positionierung einer Marke auf dem Arbeitsmarkt, wird vor allem von Unternehmen professionell betrieben, die dank positivem Image bei Arbeitnehmern ohnehin schon ganz oben auf der Wunschliste stehen. Unternehmen aus unattraktiven Branchen haben es schwerer: Das wenig attraktive Branchenimage übertr?gt sich oft auf die eigene Marke. Doch auch diese Unternehmen k?nnen eine unverwechselbare Positionierung auf dem Arbeitsmarkt erreichen: Indem sie sich zu einem „Subtype“ des Branchenstereotyps entwickeln und das gezielt kommunizieren. Dipl.-Kommunikationswirtin Antonia Erz Wissenschaftliche Mitarbeiterin im Center for Innovation am Institut für Marketing und Handel an der Universit?t St. Gallen Dr. Sven Henkel Projektleiter Consumer and Brand Research am Institut für Marketing und Handel an der Universit?t St. Gallen Prof. Dr. Torsten Tomczak Ordinarius für Betriebswirtschaftslehre mit besonderer Berücksichtigung des Marketing und Direktor des Instituts für Marketing und Handel an der Universit?t St. Gallen     

Guilty by stereotypic association: Country animosity and brand prejudice and discrimination

This research tests the proposition that brands suffer prejudice and discrimination due to animosity toward a country with which they have a strong stereotypic association. In the first study, attitudinal data collected across a range of brands that vary in terms of the strength of the brand–country association indicate that brands with strong stereotypic association with a country suffer direct prejudice, in the form of more negative attitudes, related to animosity. When the brand–country association is less strong, the relationship between animosity and brand attitudes is moderated by the strength of the stereotypic association. In the second study, the level of brand–country association is manipulated experimentally to provide additional evidence of its moderating role on the relationship between country animosity and both prejudice toward (more negative brand attitudes) and discrimination against (less choice) a new brand.     

Here or there? Consumer reactions to corporate social responsibility initiatives: Egocentric tendencies and their moderators

This research examines how consumers react to corporate social responsibility (CSR) programs that vary in geographic focus. Three experiments compare consumers' patronage of a company in response to local and distant CSR initiatives. The extant egocentrism literature suggests that a CSR activity focused locally, and thus, with greater personal relevance, should increase patronage of the company responsible for the CSR activity. Indeed, this egocentric bias, exhibited in the form of increased purchase intentions or actual choices, is found across all three studies. However, these egocentric tendencies are moderated by consumers' superordinate identities. In study 1, consumers' greater intentions to patronize a company whose CSR activity is domestic vs. foreign are moderated by their sense of global identity. In study 2, consumers' increased choices of a company whose CSR activity is in their home state vs. a distant state are moderated by levels of environmental consciousness. Finally, in study 3, increased patronage of a company whose CSR activity focuses in consumers' home city vs. a distant city depends on the salience and level of consumers' superordinate group identity.     

The 1996 ICC Report on Extortion And Bribery in International Business Transactions

Extortion and bribery are regularly identified as well–nigh insoluble ethical problems for business, especially on an international scale, yet there are many initiatives being steadily pursued to combat them. One of the most impressive is the work of the International Chamber of Commerce, which published an important Report on the subject in 1977, the first such document prepared by the business community. Now that Report has undergone an in-depth revision which was published last year and is the subject of this study. Professor Argandoña is Secretary General of IESE [the International Graduate School of Management of the University of Navarre], Av. Pearson 21, E–Barcelona, Spain (email: argandona@iese.es), and an Associate Editor of this Review. The article is a revised version of the presentation made to the Nineth EBEN Annual Conference held in Frankfurt in September last year.     

On the user cost and homeownership

This paper studies the differences in the cost of housing services for renters and homeowners and calculates the bias that results when we value owner-occupied housing services using a rental equivalence approach. Our framework is a life-cycle model with endogenous tenure choice with households facing idiosyncratic uninsurable earnings risk and housing price risk. We model houses as illiquid assets that provide collateral for loans. To analyze the impact of preferential housing taxation on the tenure choice and the bias, we consider a tax system that mimics that of the US economy. Namely, owner-occupied housing services are not taxed and mortgage interest payments are deductible. Through simulations, we show that a rental equivalence approach (relative to a user cost approach) overestimates the cost of housing services. The magnitude of the bias is very sensitive to both the income tax rate and the size of adjustment costs in the housing market.