Do strained bilateral relations affect tourists’ desire to visit a country that is a target of animosity?

ABSTRACT

This study examines the attractiveness of destination tourism offerings when the destination country and the source market country are engaged in ongoing political and economic conflict. The study is set in the Russia–United States (US) context, where Russia is the tourism-generating region and the US are the vacation destination. Specifically, the study investigates how the desire of Russian tourists to vacation in the US is affected by perceptions of the US as a country and as a vacation destination, animosity toward the US, and Russian tourists? level of national attachment and ethnocentric tendencies. The study found that country image, destination image, and general animosity have a direct effect on intention to visit. The effects of consumer ethnocentrism and national situational animosity on intention to visit are mediated by destination image and country image respectively.     

Project analysis using a linear approach (P.A.U.L.A.)

We define a general model (called PAULA) for the valuation, optimal management and selection among mutually exclusive safe projects. By exploiting the formal and financial features of the associated linear problems (primal and dual), we put forward two proposals to define an optimal internal financial law (IFL). They may be used to reduce the multiplicity of the IFLs and to avoid economically arbitrary outcomes.Research projectsCariplo andMurst.     

M&A Operations and Performance in Banking

This paper investigates whether M&A operations influence the performance of banks. Using a sample of 714 deals involving EU acquirers and targets located throughout the world over the period 1991–2005, we investigate whether M&A operations are associated with improved performance (using both standard accounting ratios and cost and alternative profit X-efficiency measures). Despite the extensive and ongoing consolidation process in the banking industry, we find that M&A operations are associated with a slight deterioration in return on equity, cash flow return and profit efficiency and with a marked improvement in cost efficiency. Hence, the improvements in cost efficiency appear to be transferred to bank clients. These changes in performance are directly attributable to the M&A operations, and would not have occurred in their absence. Moreover, these changes exhibit a particularly negative trend for cross-border deals to testify the importance of geographical relatedness in order to achieve better post-M&A performance. The environmental and bank-characteristics that make a deal successful or unsuccessful are finally identified.     

On Modelling Speculative Prices: The Empirical Literature

Traditionally, financial theory and in particular asset pricing models have assumed (implicitly or explicitly) a certain probabilistic structure for speculative prices. The probabilistic structure is usually defined in terms of specific statistical models and relates to the dependence, heterogeneity and the distribution of such prices. The primary objective of this paper is to trace the development of various statistical models proposed since Bachelier (1900), in an attempt to assess how well these models capture the empirical regularities exhibited by data on speculative prices.     

Surges and stops in greenfield and M&A FDI flows to developing countries: analysis by mode of entry

This paper investigates the factors associated with foreign direct investment “surges” and “stops”, defined as sharp increases and decreases, respectively, of foreign direct investment inflows to the developing world and differentiated based on whether these events are led by waves in greenfield investments or mergers and acquisitions. Greenfield-led surges and stops occur more frequently than mergers-and-acquisitions-led ones and different factors are associated with the onset of the two types of events. Global liquidity is the factor significantly and positively associated with a surge, regardless of its kind, while a global economic growth slowdown and a surge in the preceding year are the main factors associated with a stop. Greenfield-led surges and stops are more likely in low-income countries and mergers-and-acquisitions-led surges are less likely in resource-rich countries than elsewhere in the developing world. Global growth accelerations and increases in financial openness, domestic economic and financial instability are associated with mergers-and-acquisitions-led surges but not with greenfield-led ones. These results are particularly relevant for developing countries where FDI flows are the major type of capital flows and suggest that developing countries’ macroeconomic vulnerability increases following periods of increased global liquidity. As countries develop they typically become more exposed to merger-and-acquisition-led surges, which are more likely than greenfield-led surges and stops to be short-lived and associated with domestic macroeconomic policies.     

The Role of Language in the Communication Process Between Business and Government: Evidence from Russian Firms

Abstract

The paper investigates how language facilitates communication process between government and business. We use Russian context to show barriers and challenges of using language in official communication between governmental authorities and Russian companies. In our work, we demonstrate how language may produce employee’s misunderstanding and discuss typical sources of ineffective usage of language. The results indicate that problematic issues of both linguistic and non-linguistic nature can lead to serious implications for successful communication between government and business in Russia. We found that documentations’ complexity, which is perceived as such due to a complicated subject area they belong to (legal, tax, etc.) and language insufficiency applied are most likely to raise multiple problems related to government’s communication with business.     

Strategies developed by leading EU agrifood cooperatives in their growth models

The objective of this article is to identify the factors that have brought about the greatest degree of competitiveness in some of the principal agrifood cooperative groups in the European Union (EU), using pertinent case studies from a range of sectors including the dairy, meat and fruit and vegetable sectors from three EU member states: Holland, Ireland and Denmark. With this purpose in mind, seven cases were identified for inclusion: Kerry Group, the Irish Dairy Board, Arla Foods, The Greenery BV, Danish Crown, Agrifirm and DLG. The article identifies the main barriers and problems faced by this type of cooperative and shows the strategies developed by leading cooperatives in their sector within the current comparative context and familiarizes readers with the different growth models these cooperatives use to achieve and maintain their market standing.     

Coalition Formation: The Role of Procedure and Policy Flexibility

A spatial model of coalition formation is used together with data from Dutch elections and theoretical instances to study different procedures of coalition formation. The model shows that procedure plays an important role in reaching a coalition agreement and that political parties do not necessarily benefit from being a first-mover. Moreover, it is shown that a decrease in a party’s flexibility can be (dis)advantageous in coalition negotiations. Furthermore, certain power sharing tactics appear not always to lead to an agreement that is in a party’s advantage. The main message put forward is that the procedure of forming a coalition plays a more important role than is usually acknowledged in literature and practice.     

Consumer Preference for Status Symbolism of Clothing: The Case of the Czech Republic

During the past three decades, consumer demand for luxury goods has been growing on a global scale. The luxury and status market base has expanded beyond the traditional affluent consumer segment to include an increasingly heterogeneous group of consumers. Despite the substantial size, greater reach, and significant growth of the luxury goods market, status consumption has been treated as an atypical and peripheral subject in consumer research. The authors develop a conceptual model of psychological determinants of status seeking through consumption. The model considers the effects of three general traits (namely, status concern (SC), public self‐consciousness (PSC), and self‐esteem (SE)) and one consumption‐related consumer trait (namely, susceptibility to normative social influence (SNSI)) on preference for status meaning, which in turn influences consumer interest in the product. The conceptual model is tested with data from a survey of 1000+ respondents drawn from the Czech Republic, a country where the recent market liberalization has unleashed an inflow of luxury goods from marketers from the West. Face‐to‐face home‐based structured interviews were conducted by an international market research agency. The hypothesized causal relationships are all supported. The effects of SC, PSC, and SE on SNSI and preference for status meaning (PSM) are significant and in the expected direction. Additionally, SNSI is found to exert a significant positive influence on PSM, and these two constructs, in turn, have significant positive effects on consumer interest in clothing. The conceptual model and empirical evidence enhance the existing knowledge of the antecedents and outcomes of status consumption. The study advances a better understanding of the psychology of consumer adoption of status consumption; equally important, it also highlights the value of extending consumer theories from established to emerging market economies and back again from still‐evolving to long‐standing marketplaces.     

Social and Political Risks: Factors Affecting FDI in China's Mining Sector

Political risk can be defined as the potential for uncertainty and harm to business/economic operations that arise from political (governmental and other) behavior and events. These risks typically stem from factors such as economic structures, government institutions, policies, and societal characteristics, and are becoming more of a concern to prospective investors in a changing global political economy. This article seeks to expand upon the framework of political risk analysis by looking at “softer,” nonquantifiable risk factors. Through the analysis of foreign business experiences in China, we aim to demonstrate, via a qualitative case study of foreign direct investment (FDI) in the Chinese mining sector, that in addition to typical financial, operational, and geological factors, firms should be better aware of the particular sociopolitical and cultural risks that can harm their investments in a given industry. This study draws on primary fieldwork, focuses on micropolitical risks to the industry, and stresses that multinational corporations (MNCs) could be more cognizant of the many societal factors that can influence an investment success. © 2016 Wiley Periodicals, Inc.