Takeover bids, unconditional offer price and investor protection

In this paper, we develop a contingent claim analysis on shareholders' right to sell unconditionally their shares at the acquisition bid price during a takeover bid procedure. Compared with a situation without any guarantee, this regulation brings about wealth transfer towards outside shareholders. Why, in an apparently irrational way, do outside shareholders, who may benefit from a price guarantee, not systematically sell their shares? That question emphasizes the outside shareholders' behavior. Using a real option valuation model to evaluate the price guarantee opportunity, we show that an equal treatment rule between controlling and outside shareholders may lead outside shareholders to sell their shares.     

Attitude formation from product trial: Distinct roles of cognition and affect for hedonic and functional products

Affective and cognitive responses to a product trial are examined in an experiment containing two cells representing two product types: hedonic and functional. The stimulus products were a computer game and grammar‐checking software. Forty‐two college students comprised the sample for the experiment. The specific affective responses studied are pleasure and arousal, and brand cognitions are represented as the expectancy value from brand attributes (the product of brand beliefs, belief confidence, and attribute evaluations, summed across the attributes (σ b_ic_ie_i)). The relative level and influence of affective and cognitive responses to a product trial were shown to differ significantly, depending on whether the product was hedonic or functional in nature. Specifically, for the hedonic product, felt arousal during the trial was higher than for the functional product, and emotional responses were significant antecedents of subjects' evaluations of the trial experience. Brand cognitions, however, were not significantly related to trial evaluations for the hedonic product. In contrast, for the functional product, brand cognitions and pleasure were significant antecedents of trial evaluations, but arousal was not. The findings of this study demonstrate the importance of considering both the cognitive structure created by a product trial and the consumer's emotional reactions to the trial. For hedonic products, especially, emotional responses to the trial were shown to be powerful antecedents to consumers' evaluations of a trial experience, and subsequently, brand attitude. Marketers and marketing researchers can use these results to predict which category of responses to product trial (affective or cognitive) will be most important for brand evaluation for the particular product in question. This knowledge may also enable marketers to manipulate aspects of a product trial that are most influential on the set of trial responses that this study has shown to significantly affect brand evaluation for that product type. © 1999 John Wiley & Sons, Inc.     

The role of coworker support in the relationship between moral efficacy and voice behavior: The case of hospitality students in Ecuador

ABSTRACT

This article explores the relationships among employee moral efficacy, coworker emotional support, coworker instrumental support, and employee voice behavior regarding abusive supervision in the hospitality industry in Ecuador: a high power distance culture. The results indicate that employees’ moral efficacy predicted their voice behavior with regards to abusive supervision and that coworker emotional support strengthened this relation. However, an interaction effect between moral efficacy and coworker instrumental support on voice behavior was not found. This study provides a theoretical extension of the voice literature by introducing the roles of moral efficacy and coworker support, and has practical implications for the hospitality workplace.     

Do Investments in Specialized Knowledge Lead to Composite Good Industries?

We try to understand why firms producing goods by means of complementary components do not merge, especially in industries in which investments in component-based knowledge matters. As Audretsch, we state that these activities are developed by “individuals” who do their best to appropriate the return from their knowledge and whose effort is non-contractible. The organization of the industry into firms is identified to a partition of the set of individuals. In this context, we prove that an organization in which each individual hold his own firms is both stable with respect to unilateral deviation and optimal in the line of the property right approach. If the returns are high enough, this structure is even the only one which shares both properties.     

Restoring the growth potential of formerly centrally planned economies

All formerly centrally planned economies record very substantial declines in their social products. The largest drops in production are recorded in Poland and in east Germany (the former GDR), that is, in those countries where the most radical steps towards a market economy were taken in 1990. Thus it looks as though a recession was unavoidable during transition. But what are the conditions that must be fulfilled in order to restore growth potential to these countries? The following article aims first to devise a theoretical picture of a successful transition. The criteria thus obtained are then employed for an analysis of the recessive processes in Poland, the first east European country to start a radical programme of transition. Finally, the recession in Poland is compared with that in the former GDR.     

Consumer Neuroscience und Neuromarketing - der Blick ins Kundenhirn

Nach wie vor mangelt es in weiten Teilen der K?uferverhaltensforschung an ganzheitlichen Theorien. Mit der Integration neurowissenschaftlicher Verfahren und Erkenntnisse in die Marketingforschung verbindet sich die Hoffnung, diese Lücke zu schlie?en. Diese Erwartung scheint berechtigt, wird aber oft auch überstrapaziert. Eine realistische Einordnung der neuen Forschungsrichtung erl?utert die jeweiligen Methoden und deren Einsatzm?glichkeiten in der Praxis, zeigt aber auch die Grenzen des Neuromarketing auf.     

The Influence and Policy Signalling Role of FOMC Forecasts

Federal Open Market Committee (FOMC) policymakers have published macroeconomic forecasts since 1979 and we examine the effects of FOMC inflation forecasts using a structural VAR model. First, we assess whether they influence private inflation expectations. Second, we investigate the underlying mechanism at work and whether they convey policy signals. We provide original evidence that FOMC inflation forecasts influence private ones. We also find that the influencing effect of FOMC forecasts does not come through current Fed rate changes, that FOMC forecasts affect private expectations in a different way than current policy decisions, and that FOMC forecasts are informative about future Fed rate movements.