The Effect of Investor Status on Investors' Susceptibility to Earnings Fixation

This study investigates whether an individual's status as a current or a prospective investor affects the investor's susceptibility to earnings fixation and proposes a mechanism to reduce earnings fixation. Our experimental results suggest that current investors are more susceptible to earnings fixation than prospective investors, and that current investors can reduce earnings fixation by explicitly forecasting future earnings as part of their evaluation process. We provide theory‐consistent evidence that current investors' prevention focus makes them elevate the importance of summary earnings in their evaluation of a company. However, after forecasting future earnings, current investors view summary earnings as only one of several similarly important evaluation inputs rather than as one substantially more important input (relative to its components). Our study contributes to research on earnings fixation and investor status. We also contribute to practice by documenting the moderating effect of investor status on earnings fixation and by identifying a simple mechanism that current investors can use to reduce their susceptibility to earnings fixation.     

Home visit and community‐based tourism: Hong Kong's family insight tour

Formal and informal visitor welcome programmes have been identified as providing a positive step in promoting cross‐sociocultural relations and communication. Several countries now operate such programmes. Since 1990, Hong Kong has successfully operated a formal community visitor welcome programme, known as the Family Insight Tour’. This tour programme is a joint initiative offered by the Hong Kong Tourist Association (HKTA) and the Hong Kong Housing Authority. It offers tourists the chance to visit the public housing estates in Hong Kong where approximately 55% of the population lives. The tourists are able not only to visit the homes and social services provided for residents, but also afforded the chance to meet and interact with a local family. The tour has become so successful that demand from tourists now far outstrips the limited number of places the HKTA is able to offer. The paper examines the rationale behind such tours, looks at the HKTA tour in detail, and presents limitations and issues relating to the operation of the programme.     

Cultural and structural issues affecting Japanese tourist shopping behaviour

This paper identifies and examines the various cultural issues that affect Japanese tourist shopping. The paper looks beyond the concept of omiyage and at some of the deeper issues that influence Japanese shopping patterns. Apart from looking at cultural issues that influence the tourist, the paper also examines the tripartite relationship between the tourist, tour operators and retailers that service the overseas Japanese tour market. Finally the paper proposes a model to explain how these relationships interact to influence Japanese tourist shopping behaviour.     

Robust Hedging of Barrier Options

This article considers the pricing and hedging of barrier options in a market in which call options are liquidly traded and can be used as hedging instruments. This use of call options means that market preferences and beliefs about the future behavior of the underlying assets are in some sense incorporated into the hedge and do not need to be specified exogenously. Thus we are able to find prices for exotic derivatives which are independent of any model for the underlying asset. For example we do not need to assume that the underlying assets follow an exponential Brownian motion.
We find model-independent upper and lower bounds on the prices of knock-in and knock-out puts and calls. If the market prices the barrier options outside these limits then we give simple strategies for generating profits at zero risk. Examples illustrate that the bounds we give can be fairly tight.     

INTERGOVERNMENTAL GRANTS AND THE POSITIONING OF PRESIDENTIAL PRIMARIES AND CAUCUSES: EMPIRICAL EVIDENCE FROM THE 1992, 1996, AND 2000 ELECTION CYCLES

The present study tests the theory that states can impact the size of the grants they receive (per capita) from the federal government by becoming pivotal players in the federal electoral (primary/caucus) process. That is, by rearranging their presidential primary and caucus dates, states can play an important role in determining the field of candidates for the two major political parties in the United States. States are then likely to be rewarded within the budgetary process at the federal level, which begins with the executive branch. Results from a simultaneous equation system suggest that the impact of the average movement of primaries/caucuses in the sample period (10.36 days closer to 1 January) results in an increase of federal grants of $362 million to $1.2 billion (over a two-year period) for the average state. These results are consistent with the current pattern in the American political process of more front-ended presidential primaries and caucuses.