Stock Prices, Output and the Monetary Regime

Should monetary policy react to stock prices? The answer depends on whether stock prices are good predictors of future economic activity. Using long annual time-series data for the G-7 countries, data going back over 150 years for some countries, we find that stock prices do not systematically predict output growth regardless of the monetary regime in effect. We also find no evidence of a nonlinear relationship between stock prices and output except during the gold standard, when stock price booms and busts had some predictive power for output growth volatility.     

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The views expressed herein are not purported to reflect those of the U.S. Department of Justice.     

Righting the Wrong for Third Parties: How Monetary Compensation,Procedure Changes and Apologies Can Restore Justice for Observers of Injustice

People react negatively not only to injustices they personally endure but also to injustices that they observe as bystanders at work—and typically, people observe more injustices than they personally experience. It is therefore important to understand how organizations can restore observers’ perceptions of justice after an injustice has occurred. In our paper, we employ a policy capturing design to test and compare the restorative power of monetary compensation, procedure changes and apologies, alone and in combination, from the perspective of third parties. We extend previous research on remedies by including different degrees of compensation and procedural changes, by comparing the effects of sincere versus insincere apologies and by including apologies from additional sources. The results indicate that monetary compensation, procedure changes, and sincere apologies all have a significant and positive effect on how observers perceive the restoration of justice. Insincere apologies, on the other hand, have no significant effect on restoration for third parties. Procedural changes were found to have the strongest remedial effects, a remedy rarely included in previous research. One interpretation of this finding could be that observers of injustice prefer solutions that are not short sighted: changing procedures avoids future injustices that could affect other people. We found that combinations of remedies, such that the presence of a second remedy strengthens the effect of the first remedy, are particularly effective. Our findings regarding interactions underline the importance of studying and administering remedies in conjunction with each other.     

An Analysis of Submissions on Proposed Regulations for Audit and Assurance in New Zealand

After numerous collapses of finance companies in New Zealand, and widespread losses by investors, self‐regulation of the auditing profession was no longer considered adequate or acceptable internationally. The New Zealand Government sought to restore public perceptions of audit quality and investor confidence in the financial markets with proposals to change existing accounting standards and audit and assurance requirements. The proposals included a review engagement for some entities, and imposing the force of law on auditing standards. We analyse the public submissions on the auditing and assurance aspects of these proposals. Many respondents object to the proposal, requiring small public sector and not‐for‐profit entities to obtain review engagements, and to give auditing standards the force of law.     

The intercultural communication motivation scale: An instrument to assess motivational training needs of candidates for international assignments

The Intercultural Communication Motivation Scale (ICMS) is a tool to assess the intercultural communication motivation of candidates for international assignments. The ICMS performed well in four studies conducted with undergraduate students in New Zealand, the United States, the United Arab Emirates, and Germany. Generally showing a stable fi ve‐factor structure, high test‐retest correlations, very high Cronbach's alphas, and almost no social desirability bias in self and peer evaluations, the ICMS is sensitive enough to detect test‐retest differences. Thus, socially responsible strategic international HR programs can use this scale to reliably evaluate employees and their families for specifi c international locations. © 2009 Wiley Periodicals, Inc.     

Marketing survey research best practices: evidence and recommendations from a review of <Emphasis Type="Italic">JAMS</Emphasis> articles

Survey research methodology is widely used in marketing, and it is important for both the field and individual researchers to follow stringent guidelines to ensure that meaningful insights are attained. To assess the extent to which marketing researchers are utilizing best practices in designing, administering, and analyzing surveys, we review the prevalence of published empirical survey work during the 2006–2015 period in three top marketing journals—Journal of the Academy of Marketing Science (JAMS), Journal of Marketing (JM), and Journal of Marketing Research (JMR)—and then conduct an in-depth analysis of 202 survey-based studies published in JAMS. We focus on key issues in two broad areas of survey research (issues related to the choice of the object of measurement and selection of raters, and issues related to the measurement of the constructs of interest), and we describe conceptual considerations related to each specific issue, review how marketing researchers have attended to these issues in their published work, and identify appropriate best practices.     

Successful New Product Pricing Practices: A Contingency Approach

The purpose of this study is to examine the success of new product pricing practices and the conditions upon which success is contingent. We distinguish three different pricing practices that refer to the use of information on customer value, competition, and costs respectively. Following Monroe's (1990) price discretion, we argue that the success of these practices is contingent on relative product advantage and competitive intensity. The hypotheses are tested on pricing decisions for new industrial products. Our results show that there are no general best or bad practices, but that a contingency approach is appropriate. These results may help reduce the complexity that managers experience in pricing new products.     

Who selects the ‘right’ directors? An examination of the association between board selection,gender diversity and outcomes

Using a sample of companies from the top 500 listed firms in Australia, we investigate whether the presence of a designated nomination committee and female representation on the nomination committee affect board gender diversity. We also examine whether gender diversity on the board affects firm risk and financial performance. We find that board gender diversity is significantly and positively associated with the presence of a designated nomination committee and that female representation on the nomination committee is a significant explanatory factor of increasing board gender diversity following the release of the 2010 Australian Securities Exchange Corporate Governance Council (ASXCGC) recommendations. Further, our results support the business case for board gender diversity as we find greater gender diversity moderates excessive firm risk which in turn improves firms' financial performance. Our results are robust after correcting for selection bias and controlling for other board, firm and industry characteristics.     

Valletta ECoC 2018 and cultural tourism development

Valletta, European Capital of Culture 2018 offers the prospect of cultural tourism development and attracting more visitors. However, tensions and opportunity costs potentially arise in planning such change. Strategies could be to intensify or diversify Valletta’s cultural tourism during the run-up to 2018; however, their appropriateness could differ in terms of competitive advantage, social inclusivity and sustainability. This paper focuses on the rationales for different approaches to tourism product development, adopting a broad relational perspective on product assembly that directs attention to the relationships, processes and contexts involved. Analysis suggests that innovative, experimental combinations of selected forms of intensification and diversification are needed to avoid locally insensitive cultural change and unsustainable tourism development.