The pricing of audit and non-audit services in a regulated environment: a longitudinal study of the UK life insurance industry

This paper studies the relationship between audit and non-audit service fees paid to the statutory auditor by UK life insurance firms, utilising an extensive panel-data sample set for the period 1999–2009. Consistent with a knowledge spillover (impairment of independence) hypothesis, we predict and find that audit fees are positively (negatively) associated with actuarial (tax service) fees. Additionally, our results indicate that regulatory changes enforced after 2004 deterred UK life insurance firms from purchasing non-audit services that are perceived to impair auditor independence. Finally, we find evidence concerning the inter-temporal determination of audit fees.     

A Socio‐Psychological Perspective on Team Ambidexterity: The Contingency Role of Supportive Leadership Behaviours

In addressing the notion of team ambidexterity, we propose that socio‐psychological factors (i.e., team cohesion and team efficacy) may help team members to resolve paradoxical challenges and to combine exploratory and exploitative learning efforts. In addition, we theorize that senior executives may play an important role in facilitating the emergence of ambidexterity at lower hierarchical levels. In doing so, we develop a multilevel contingency framework and propose that the effectiveness of teams to achieve ambidexterity is contingent upon supportive leadership behaviours at the organizational‐level. Using multilevel, multisource, and temporally separated data on 87 teams within 37 high‐tech and pharmaceutical firms, we not only reveal how team cohesion and efficacy may matter for the emergence of team ambidexterity but also show that the effectiveness of supportive leadership behaviours from senior executives varies across cohesive and efficacious teams.     

Foreign direct investment in OECD countries: a special focus in the case of Greece

Foreign Direct Investment (FDI) is considered as an important instrument for economic development all over the world. The aim of this paper is to examine the FDI inflows determinants for 24 OECD countries. To this end we employ annual data from 1980 to 2012 for a series of potential FDI determinants that have been identified as the most important by the relevant literature. Our empirical strategy employs both the standard fixed effects panel as well as a dynamic panel approach. The empirical findings highlight the importance of market size, trade openness, unit labor cost, schooling, taxation, gross capital formation, institutional variables, and ROA/ROE as significant FDI determinants. In the case of the dynamic panel model those FDI inflows determinants are not uniform for all country groups. Additionally, the results indicate that corporate tax rates clearly affect FDI attractiveness. This finding is robust when testing different countries subgroups. The present study has important policy implications indicating the factors that host economies should place emphasis on in order to attract FDI inflows. Policy makers should not only pay attention to the corporate tax rate level but they should also design a simple, stable and transparent taxation system that minimizes the relevant business risk.     

To go or stay home and watch: exploring the balance between motives and perceived constraints for major events: a case study of the 2008 Beijing Olympic Games

The current study offers insight into the role of motivation and constraints on behavioural intentions prior to a mega event. The Psychological Continuum Model framework was used to integrate motivation and leisure constraints theory to examine attraction towards the 2008 Olympic Games. Semi‐structured interviews (N = 47) and a questionnaire (N = 235) distributed in Australia and the USA were used to identify and measure three motivational themes: cultural learning, cultural experience and olympic event interest, and three perceived constraints: structural, interpersonal and intrapersonal. Structural Equation Modelling revealed that motives were positively related to behavioural intentions while constraints were negatively related. Analysis further revealed the interaction between motives and perceived constraints led to two different forms of behavioural intentions; intentions to travel and attend the event vs. stay home to watch the event on TV. Policy and marketing implications are discussed that illustrate the benefits of understanding both motives and perceived constraints for tourism travel. Copyright © 2008 John Wiley and Sons, Ltd.     

Safety alerts reduce willingness to visit parks irrigated with recycled water

This study demonstrates the effects of framing safety precautions on the presentation of a controversial product (recycled water [RW]) to the inhabitants of two Greek towns by asking them whether they would visit various configurations of a public park irrigated with RW. The same questions are posed in an additional version augmented with a safety alert. Among many others, results mainly show that willingness to visit (WTV) a park irrigated with RW or willingness to pay for RW decrease when respondents are confronted with the safety statement that ‘the irrigated parts are isolated and have been properly marked for the visitor so that he/she does not come into touch with RW’. Moreover, WTV does not decrease when there is previous experience with the park. The upgrade of RW from secondary to tertiary treatment is valuated only when safety alerts are present. The paper yields promotion insights useful for relevant utilities, organizations, and governments which are interested in forming a social marketing mix for this product while contributing to the theoretical and empirical understanding of framing effects with their experimental demonstration in the two case studies.     

Nonlinear incentives and mortgage officers’ decisions

In the aftermath of the recent financial crisis, banks should ensure that their incentive compensation policies appropriately balance long-term risk with short-term rewards. Using daily output data from mortgage officers in a US commercial bank, we test the notion that nonlinear contracts create time-varying incentives for the employees and impose costs on the firm. We provide empirical evidence that mortgage officers greatly increase their output toward the end of each month, when the minimum monthly quota is assessed. This occurs through a combination of reducing the processing time and approving some marginal applications. We also find that mortgages originated on the last working day of the month have a higher likelihood of delinquency.     

Extent and intensity of investment with multiple capital goods

Overall investment is the product of the number of capital goods for which triggering has occurred (the extensive or reductive margin) and the depth of investment per capital good (intensive margin). Based on a longitudinal plant-level data and using dynamic panel techniques we investigated the validity of the hypothesis that the intensity of investment increases as its extent increases. Our results indicate a strong linkage between the extent and intensity of investment decisions, finding which holds both for positive and negative investment decisions. This linkage suggests that the decision on how many capital types to initiate investment is closely connected to the decision regarding the depth of investment expenditures. Moreover, the intensity–extent derivative remains positive but its magnitude decreases with plant size, providing indirect evidence for higher complementarity between capital types for smaller plants.     

International equity flows, marginal conditional stochastic dominance and diversification

The weak empirical evidence linking diversification and international equity flows calls into question the diversification paradigm at the international level and the analytical framework it implies. Using the concept of Marginal Conditional Stochastic Dominance (MCSD) to estimate the diversification opportunities, this paper reexamines the role that diversification opportunities play in the determination of international equity flows. It provides strong evidence that when diversification opportunities are measured in terms of MCSD, they are significant determinants of international equity flows. Capital flows into dominant markets and flees markets that are dominated. These results are robust with respect to a range of conventional control variables documented in the outstanding literature.     

Benchmarking Tendencies in Managerial Mindsets: Prioritizing Stockholders and Stakeholders in Peru, South Africa, and the United States

Managers in Peru, South Africa, and the United States were classified into four groups along Singhapakdi et al. (J Bus Ethics 15:1131–1140, 1996) Perceived Role of Ethics and Social Responsibility (PRESOR) scale. In Peru and the United States, individuals in the ethics and social responsibility first category reported greater satisfaction with organizational performance than did those in the profits first category. Moral capitalists—individuals who report high emphases on both social responsibility and profits—reported the highest satisfaction with performance in the United States. Managers in the United States are more likely than their counterparts in Peru and South Africa to reject the mutual exclusivity of prioritizing social responsibility and profits simultaneously. Directions for future research are outlined.     

Individual and contextual influences on the affective commitment of retail salespeople

Abstract

Salesperson characteristics as well as managerial approaches have been found to play an important role in the development of positive attitudes by salespersons towards an organisation. This study integrates these two research areas to investigate the personal and contextual antecedents of affective organisational commitment of retail salespeople. Fit theory and the literature on person–situation interaction provide the theoretical bases for explaining how salesperson selling skills, job liking, and empowerment individually and jointly influence affective commitment. A multilevel modelling approach is used to analyse data from 105 sales managers and 419 salespeople. Findings reveal that salespersons' affective commitment is influenced by their selling skills, degree of job liking, tenure, and empowerment. The results also indicate that the impact of selling skills on affective commitment is higher when empowerment is high. Based on the study's findings, implications for managing salespeople as well as limitations and suggestions for future research are offered.