Testing Monetary Policy Intentions in Open Economies

Temple (2002) argues that the inflation level used in Romer (1993) lacks power in revealing the policy intentions of monetary authorities, Temple also points out that Romer's use of the openness-inflation correlation cannot be explained by time consistency theory. In this article, we demonstrate that more open economies experience less inflation volatility and persislence. We attribute our findings to the hypothesis that monetary authorities in more open economies adopt more aggressive monetary policies. This pattern emerges strongly after 1990. Our results indicate that the near-universal regime shift in 1990 is not just a simple process of increased monetary policy aggressiveness, but an increased response to economic openness.     

What do analysts do? Discussion of “Information interpretation or information discovery: which role of analysts do investors value more?”

Three decades of accounting and finance research has extensively studied the outputs from financial analysts. However, there is sparse systematic evidence on what analysts do to generate their outputs in the form of forecasts, recommendations, and research reports. Livnat and Zhang (Rev Account Stud, 2012) provide interesting new evidence regarding the relative amount of value added that analysts produce by examining investors?? reaction to analysts?? forecast revisions issued promptly after firms?? public disclosures compared with those issued at other times. Their analysis shows that prompt revisions are associated with larger returns, which the authors interpret as evidence that analysts?? ability to interpret public disclosures is more valuable to investors. Three issues bear consideration in the interpretation of these findings.     

The impact of environmental management systems on financial performance in fashion and textiles industries

With rising environmental concerns from consumers and stakeholder groups, environmental management has become an important responsibility for today's fashion and textiles manufacturers. The production of fashion and textiles related products often requires high levels of energy and water consumption, and emits large quantities of pollutants to the environment. Therefore, the adoption of environmental management systems (EMSs) is important and could have a significant impact on these firms' operational performance. This study presents empirical evidence on the performance impact of EMS adoption in the fashion and textiles related industries (FTIs). Although EMSs have emerged as a passport to business in the FTIs, their actual impacts on firms' financial performance have not been explored. We reveal that the adoption of ISO 14000, the most popular EMS, improves manufacturers' profitability in the FTIs over a three-year period as measured by return-on-assets (ROA). Based on our sample, we find that profitability improvement started during the implementation stage and continued at least one year after the firm obtained ISO 14000 certification. We also find that profitability improvement is mainly due to improvement in cost efficiency, measured by return-on-sales (ROS). Specifically, certified firms improved up to 2.9% in ROA and 3.3% in ROS over the three-year period since they implemented ISO 14000. We conclude that there is a positive impact of EMS adoption on firms' financial performance in the FTIs.     

Nonlinearities in the real exchange rates: new evidence from developed and developing countries

This paper investigates nonlinearities in the dynamics of real exchange rates. We use Monte Carlo simulations to establish the size properties of the Teräsvirta-Anderson test, when the dynamics of the real exchange rate is influenced by an exogenous process. In addition, we show that a modified nonlinearity test, which includes additional right-hand-side variables, performs much better than the original in both Monte Carlo exercises and in the actual data on 1431 bilateral real exchange rate series. Finally, we investigate the dynamics of the real exchange rate for both developed and developing countries using the modified test for the recent floating period. In general, the results find a greater incidence of nonlinear dynamics for developing country real exchange rates.     

Expanding the two wings of social capital for value creation: strategic entrepreneurship of HTC, 1997–2008

This study draws on a historical, qualitative case study to explore how a leading Taiwanese high-tech mobile phone manufacturer, HTC, successfully and continuously manoeuvred the two wings of social capital – that is, structural social capital and cognitive social capital – to create value in its strategic entrepreneurial process between 1997 and 2008. Taiwan is a wide-spreading trust-based Chinese Confucian-influenced culture. The process of developing trust-based social capital for value creation consists of three central actions: identifying potential social capital, reinforcing cognitive social capital, and extending structural social capital. Our findings advance knowledge of trust-based social capital based on the perspective of strategic entrepreneurship for value creation and offer practical implications for the mobilisation of social capital. In sum, we suggest that firms could develop trust-based social capital considering business conditions to reduce possible risks or uncertainties of network management in an international arena.     

Are freelancers a breed apart? The role of protean and boundaryless career attitudes in employability and career success

Recent economic and organisational changes have fostered an increasing diversification of the workforce, among whom freelancers are an under‐represented population in the literature. This study aimed at examining the role of protean and boundaryless career, professional commitment, and employability activities in fostering freelancers' subjective career success. Data were collected via an online survey among a sample of 425 Italian freelancers and analysed through structural equation modelling. Results partially confirmed several hypotheses: higher self‐directed career management and boundaryless mindset predicted higher employability activities and professional commitment; moreover, employability and professional commitment acted as mediators between career attitudes and subjective career success. The study provides support for the importance of such variables to freelancers' career success, as well as for the significance of protean and boundaryless careers among nontraditional occupational groups. Interventions aimed at fostering such attitudes could support freelancers in improving their attainment of professional progress and perception of career success.     

To Be or Not to be Temp? An Analysis of the Moderating Role of Motives for Accepting Temporary Employment

We investigate the role of contract volition and motives for accepting temporary employment in the relationship between precariousness of life and negative psychological symptoms in a sample of 275 Italian temps. Results suggest that the negative effect of contract volition on negative psychological symptoms is partially mediated by precariousness of life. A moderated mediation model shows that specific motives moderate the negative effects of contract volition on precariousness of life, so that when contract volition is higher, workers with weaker motives feel less precarious. This study broadens our understanding of temporary employment outcomes by showing that the negative consequences of precariousness of life seem to be less troublesome among temporary workers with higher contract volition and lower motivation. © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

To tell or not to tell? The roles of perceived norms and self‐consciousness in understanding consumers' willingness to recommend online secondhand apparel shopping

Secondhand apparel shopping resides in a domain characterized by used goods traditionally associated with financially marginalized consumers. Acknowledging the elusive psychological barriers associated with preowned apparel, this study explores mechanisms that facilitate consumers' willingness to recommend online secondhand apparel shopping. Results from three experimental studies and a cross‐sectional survey of online secondhand shoppers in the United States reveal that hedonic and ethical benefits influence recommendation behavior via perceived norms, whereas economic benefit directly influences consumers' willingness to recommend. Moderated mediation analyses further demonstrate that self‐consciousness alters the strength of the indirect effects, such that consumers with lower self‐consciousness displayed greater willingness to recommend compared to highly self‐conscious consumers. Findings contribute to a greater theoretical understanding of the roles perceived norms and self‐consciousness play in facilitating or inhibiting recommendation behavior in a context that implicitly involves self‐disclosure of one's secondhand purchase behavior. Managerial implications offer insights on salient benefits that can be leveraged to influence word‐of‐mouth recommendation.     

Entrepreneur subsidiary of business groups from emerging markets: a multi-level perspective

International Entrepreneurship and Management Journal - This study examines the effects of firm resources on entrepreneur subsidiaries of business groups. Resource-based theory is the foundation...