Better late than never: a study of late entrants in household electrical equipment

For the most part, studies on timing of entry have attempted to determine the advantages that early entrants may be able to develop and hold over subsequent entrants. Given that a large number of firms attempt to enter at a much later stage in the development of the market, it is particularly surprising that little research has attempted to examine the differences in the ability of late movers to penetrate the market. In this paper, we focus exclusively on late movers and examine the extent to which their early success can be tied to existing market conditions, their resource strengths, and their strategic positioning. Copyright © 2003 John Wiley & Sons, Ltd.     

How important is the financial sector to price indices in an inflation targeting regime? An empirical analysis of the UK and the US

This paper investigates whether there are benefits in terms of higher economic stability from incorporating stock prices into the price index targeted by the central banks. It also looks into the question of whether central banks should use stock prices as a component of the output stability index and how the index can be constructed. An optimization technique is employed to estimate weights for the various sectoral prices. The obtained weights, which depend on sectoral parameters, differ from those used in the construction of the consumer price index, CPI. Using data from the UK and the US, our analysis demonstrates that in comparison to the CPI, our measure of inflation leads to a higher output stability. Thus, in an inflation-targeting monetary policy environment, it is important to adopt a broader inflation benchmark than the CPI for the general macroeconomic stability.     

Pairwise X-efficiency combinations of merging banks: analysis of the fifth merger wave

Using the non-parametric data envelopment approach, the long-run profit efficiency of nine pre-classified merger deals of merging and non-merging U.S. banks is investigated during the period from 1992 to 2003 for a sample of 359 merger deals. The findings show that, in general, large acquirers have and maintain higher efficiency scores than targets and non-merging banks. The results also show that merger deals that match least efficient acquirers with the least efficient targets could improve their profit efficiency 4 years following the merger event, which is different than all other merger deals. Finally, value-maximizing mergers are determined to be mostly large and match banks with clear opportunities to increase their future efficiency rankings.     

Deal-to-deal marginal efficiency dynamics of serial US banking acquirers

Review of Quantitative Finance and Accounting - This study investigates the changes in the marginal cost, revenue, and profit efficiencies after a series of deals by US acquiring banks for the...     

Chief executive officers' dispositional optimism,host country's rule of law,and foreign market equity mode choice of Ghanaian small and medium‐sized enterprises

Despite a growing interest in the influence of managerial characteristics on firms' strategic decision‐making process, scholarly knowledge is limited with regard to how and when psychological attributes of executives affect firms' foreign entry mode decision. Building on behavioral decision‐making theory, we address this gap by investigating the effect of chief executive officers' (CEOs') optimism on firms' foreign market equity mode choice. In addition, we examine the moderating influence of the host country's rule of law on this relationship. Using primary data from 227 small and medium‐sized enterprises (SMEs) in Ghana, we found that increases in the levels of CEOs' optimism are related to the increases in preference for equity entry mode. This relationship is amplified when CEOs perceive the host country to have stronger rule of law. The findings have theoretical, managerial, and policy implications for SMEs' foreign market entry mode strategy.     

Collaborating for success: managerial perspectives on co-branding strategies in the fashion industry

Abstract

This article investigates the nature of co-branded relationships within the fashion industry. Existing co-branding literature focuses heavily on consumer evaluations, and many studies explore FMCG and electronics markets, within which ingredient co-branding is common. When two brands from the fashion industry collaborate, both brands exist independently and do not rely on ‘ingredients’ for developing a new product and, therefore, presenting an opportunity for exploring the drivers and types of relationships that could exist. This study adopts an interpretive method of investigation using in-depth interviews with brand managers. Findings provide empirical support for value creation through different relationship levels (such as brand/awareness co-branding, values endorsement and complementary competence co-branding) while highlighting some challenges and risks for co-branding in practice. This article discusses implications for theory development and practice and highlights avenues for future research.     

The Macroeconomic Management of Increased Aid: Policy Lessons from Recent Experience

The authors investigate the macroeconomic challenges created by a surge in aid inflows. They develop an analytical framework for examining possible policy responses to increased aid, in terms of absorption and spending of aid—where the central bank controls absorption, through monetary policy and the sale of foreign exchange, and where the fiscal authority controls spending. Different combinations of absorption and spending lead to different macroeconomic consequences. Evidence from five countries that recently experienced an aid surge (Ethiopia, Ghana, Tanzania, Mozambique, and Uganda) shows no support for aid-related real exchange rate appreciation in these countries, but it does indicate that the fear of Dutch disease played an important part in the policy reaction to aid surges. Fiscal and monetary authorities should coordinate their responses to an aid surge, because an uncoordinated response—typically when the fiscal authority wants to spend aid while the central bank wants to avoid exchange rate appreciation—can have serious negative macroeconomic consequences.     

Paradox strategic cognition and ECSR in China: a three-tripod perspective

Literature rooted in institutional theory and stakeholder theory offers conflicting views on the relationship between environmental corporate social responsibility (ECSR) and financial performance. However, both failed to explain why firms interpret this relationship variously which is subjective to a firm’s strategic cognition. How firms interpret this relationship affects the ECSR decision and implementation. Drawing on the paradox theory, four hypotheses were proposed and examined using data from 170 manufacturing firms in China. This study found paradox strategic cognition positively affects ECSR. Legal enforcement inefficiency, competitive intensity and industrial power weaken the effect of paradox strategic cognition on ECSR.