How Does Stock Market React to Dividend Surprises? Evidence from Emerging Markets of India and Russia

In this article the authors empirically investigate information content of dividends announcements and average reaction of emerging markets of India and Russia to dividend surprises on the postcrisis period 2010 to 2014. The study applies an analysts’ expectations-based approach rarely used in academic literature. The authors conclude that the Russian market on average reacts negatively to good and bad dividend surprises; good dividend surprises on average trigger positive abnormal returns on Indian stocks, whereas bad and no surprises are associated with negative reactions of the Indian market. Results of the study are discussed from the perspective of dividend signaling theory, market efficiency, and investor behavior.     

Value Co-Creation in ICT Services Company: A Case Study of a Cross-Border Acquisition

Abstract

Post-merger and acquisition (M&A) integration is especially important for the services industry, where value co-creation between actors plays a crucial role. This paper is a qualitative single case study of a multinational company (MNE) in information technology (ICT) industry, and the post-acquisition processes of its subsidiary in Russia. The main contribution of this article is the application of a value co-creation view, to the settings of the international business. We also identify the actors and their roles and activities in the value co-creation in the Russian context.     

Non-fatal violence-related injuries in Kingston,Jamaica: a preventable drain on resources

Using data for a one-year period from the Kingston Public Hospital (KPH) in Jamaica, we describe patterns of non-fatal violence-related injuries, and carry out simulation analysis to estimate rates of hospital admission under various injury reduction scenarios, and the potential savings that can be realized by reducing violent crimes. In this period there were 6107 registered violence-related visits to the KPH representing 11.5% of all recorded visits. Of these 16.6% (1001) were admitted. The most common methods of inflicting injury was by stabbing (52.1%), blunt injuries (37.9%) and gunshot wounds (7.3%). Multivariate analyses indicated that gunshot injuries, stab injuries, being male between the ages of 15 and 44 years, receiving the injury in November or December, and being injured by a stranger or unknown assailant, were significant correlates of a higher probability of admission. Simulation analysis with various injury reduction scenarios indicated decreases in the probability of admission ranging from 12% to 44%, with estimated savings of up to 31% of the annual supplies budget of KPH.     

Consumer Motivation for Reward Pursuit: A Culture-Based and Progress-Based Model of Loyalty Program Effectiveness

Aided by the exponential rate of globalization and digitalization, reward or loyalty programs (LPs) have attained global reach. Paradoxically, however, dropout rates of LPs have averaged over 75%. This disconcerting statistic, coupled with the lack of culture-specific insights in the literature, points to a research area of great theoretical and practical importance. To address the aforementioned issues, we develop a culture-based and progress-based model of consumer motivation that is especially applicable to LP members. Drawing on cross-cultural literature and goal pursuit theory, our research enriches a field that is inherently global in nature. Through a series of research propositions that elucidate how Western individualist (vs. Eastern collectivist) consumers are differentially motivated to pursue LP rewards, we advance theoretical understanding of reward-induced behavior across cultures and offer useful insights for global managers of LPs.     

Socially responsible consumption in Russia: Testing the theory of planned behavior and the moderating role of trust

This paper adopts a multilevel approach to explore how socially responsible consumer behavior (SRCB) is shaped by a combination of micro‐level psychological drivers and specifics of the institutional context in which the behavior is performed. The model first applies the theory of planned behavior (TPB) to test the effects of TPB‐based behavioral predictors on the SRCB. Broad‐scope trust in business (BST) is then applied to the model as a variable that characterizes quality of an informal institutional environment, hypothesizing that BST moderates the relationship between TPB‐based behavioral antecedents and SRCB. The paper is based on a survey of 466 Russian consumers. Data were collected by self‐administered questionnaires completed by students and alumni of a large public university in Moscow. Results show that BST moderates the effects of TPB‐based predictors on SRCB. This implies that consumers who believe that the business is overall trustworthy are more likely to take company’s corporate social responsibility (CSR) into account when making purchasing decisions. This study contributes to the multilevel research on SRCB and CSR and adds to the literature on public trust in business as a nascent area of study. Its findings are especially relevant for companies operating in low‐trust environments, including postsocialist economies.     

How Can We Better Understand Current and Future Workforce Values in the Global Business Environment?

Our study tested the predictive power of socioeconomic development theory and age differences theory to explain work values across cultures and across age groups. We compared the values orientations of future managers, business students under the age of 25, with those of current managers and professionals, who we split into three decade groups (30 to 39, 40 to 49, and 50 to 59). Our respondents (n = 1,518) come from six diverse societies: Brazil, Germany, Indonesia, Russia, the United States, and Vietnam. Our findings indicate that both theories contribute to our understanding of work values and behaviors. One implication is that while socioeconomic development theory makes an important contribution, it is clearly not sufficient by itself to explain work values/behavior differences in the global context. The study findings and the discussion of them will hopefully provide multinational managers with a clearer assessment of current and future workforce values/behavior. © 2012 Wiley Periodicals, Inc.     

Correlations in emerging market bonds: The role of local and global factors

This paper empirically assesses co-movements in emerging market bond returns and disentangles the roles of external and domestic factors during episodes of heightened market volatility. The conceptual framework, set in the context of asset allocation, allows us to describe the channels through which shocks originating in a particular emerging or mature market are transmitted across countries and markets. We show that a simple measure of cross-country correlations, when presented together with the more commonly used average correlation coefficient, can be more informative during episodes of heightened market volatility. Data for the period 1997–2008 are analysed for evidence of true contagion and common external shocks.     

Corporate governance and firm performance in Russia: an empirical study

Using the agency and institutional perspectives, this study advances several hypotheses about the board structure–firm performance relationship within Russia. We tested these hypotheses using survey data. Despite a relatively small sample size, predictions from both theoretical perspectives were supported. Specifically, we found a negative relationship between “informal” CEO duality and firm performance. This finding is noteworthy given the 1996 Russian Federal law which prohibits the CEO from also serving as board chair. Also, we found that the more vigorously the firm pursues a retrenchment strategy, the more negative the relationship between proportion of inside directors and firm performance. Overall, these findings suggest that effective corporate governance may be essential to firm performance in Russia.