Moderating effects of self-image congruity on the relationship between advertisement message strength and revisiting intention

This research note delineates the effect of restaurant customers’ perceived self-image congruity (i.e., the match between the image of a product or brand and customers’ image of themselves) on the relationship between the strength of a restaurant advertisement and customers’ intention to revisit that restaurant. This study posits that customers’ preference for a restaurant brand, formed by their perceived self-image congruity, can alter the effects of ad message strength on their revisiting intention. More specifically, due to the biasing effect caused by self-image congruity, the effect of an ad’s argument strength on behavioral intentions may be diminished when customers have a high perceived level of self-image congruity. The findings indicate that strong ad messages elicit significantly higher revisiting intentions than weak ad messages when customers perceive a mismatch between the image, the brand, and themselves; however, no significant difference in revisiting intentions was detected between strong and weak ad messages when customers perceived a match between image and restaurant brand. Furthermore, this study examines how gender-based information-processing tendencies influence this effect of self-image congruity on the relationship between ad message strength and revisiting intention. Overall, this study provides a theoretical understanding of the biasing effect of self-image congruity on customers’ information processing and has important managerial implications for restaurant marketing.     

The moderating effect of self-esteem on consumer responses to global positioning in advertising

The study investigates consumers' responses to global positioning in advertising from the perspective of self. It is suggested that consumers' attitudes toward the brand advertised through global positioning are influenced by their ideal selves and cosmopolitan orientations and these influences are moderated by one's self-esteem level. Study 1 shows that attitudes toward the globally positioned brand are more positive for those with ideal selves that are more congruent with personal traits associated with globally positioned brands, but only for those with high self-esteem. Interview results from study 2 suggest that low self-esteem informants make use of the global brands associated with ‘Western’ as a means of signaling their social selves in order to obtain social approval and that high self-esteem informants attend to ad content, whether the ad employs global or local positioning.     

The importance of understanding the shape of diverse ethnic female consumers for developing jeans sizing systems

This study has been conducted to investigate the fit issues related to the current apparel pants and jeans sizing system for diverse consumers, identifying body shape differences among ethnic groups. A total of 1335 women in a certain size range (Misses figure type sizes 2–20) were selected in the study. A Misses figure type size category is commonly used for adult women of average proportion and height. First, the body dimension differences among ethnic groups were examined with a single factor analysis of variance. Second, the fit of pants and jeans for the diverse consumers within the same size category was examined with the current standard sizing system, ASTM D5585 for adult female Misses figure type sizes 2–20. Three cases were programmed within a database: When each consumer selects a size for a pair of jeans based on (1) waist size; (2) hip size; and (3) waist height (usually pants length). And last, the results were analysed with fit comparison plots. Current jean consumers are racially diversified in the US and globally as well. This study revealed that ethnic groups had different fit problems and significant body shape differences. Even within the same figure type size category, a variety of body dimensions existed in each ethnic group. According to the fit problem assessment in this study, consumers within the same body figure type size category could not find the right fit of the pants and jeans within the current sizing system. Half of the female consumers could not find a garment to fit based on waist height (pants length) because the current sizing systems overlooked the effect of diverse consumers. This study will be useful for standardizing organizations to modify current sizing systems for diverse ethnic consumer groups as a demographic factor so that apparel companies could provide better quality of fit for their consumers in the global and local market.     

Ownership Structure,Business Group Affiliation,Listing Status,and Earnings Management: Evidence from Korea*

Using a large sample of both publicly traded and privately held firms in South Korea (hereafter “Korea”), we investigate whether, and how, the deviation of controlling shareholders' control from ownership, business group affiliation, and listing status differentially affect the extent of earnings management. Our study yields three major findings. First, we find that as the control‐ownership disparity becomes larger, controlling shareholders tend to engage more in opportunistic earnings management to hide their behavior and avoid adverse consequences such as disciplinary action. The result of our full‐model regression reveals that an increase in the control‐ownership wedge by 1 percent leads to an increase in the magnitude of (unsigned) discretionary accruals by 1.3 percent of lagged total assets, ceteris paribus. Second, we find that for our full‐model regression, the magnitude of (unsigned) discretionary accruals is greater for group‐affiliated firms than for nonaffiliated firms by 0.8 percent of lagged total assets. This result suggests that business group affiliation provides controlling shareholders with more incentives and opportunities for earnings management. Finally, we find that for our full‐model regression, the magnitude of (unsigned) discretionary accruals is greater for publicly traded firms than for privately held firms by 1.2 percent of lagged total assets. This result supports the notion that stock markets create incentives for public firms to manage reported earnings to satisfy the expectations of various market participants that are often expressed in earnings numbers.     

Routing and refueling plans to minimize travel time in alternative-fuel vehicles

A driver who drives an alternative-fuel vehicle (AFV) from an origin point to a destination point needs to consider how to get there (i.e., the routing problem), when to stop, and how and when to refuel (i.e., the refueling plan). In this study, models and algorithms are proposed that optimize a one-way-trip path such that the total travel time from the origin to the destination is minimized. The travel time consists of the setup time, the refueling time and the driving time. The setup time includes waiting for the AFV to be served at a refueling station and the preparation time of charging the machine. We categorized the problems into two types: (1) the refueling plan problem when the routing decision is given and (2) an integrated problem of routing and refueling. Another axis of categorization is when (1) setup time and refueling times are site-independent and (2) parameters are site-dependent. We propose optimal algorithms for site-independent problems and the integrated problem of routing and refueling planning with site-independent parameters. We also conduct experiments and sensitivity analyses for the site-dependent integrated problems of routing and refueling.     

Are REITs inflation hedges?

This study investigates the relationship between returns on Real Estate Investment Trusts (REITs) and anticipated inflation. It was motivated by the contradictory findings in the literature concerning the inflation-hedging characteristics of financial and real assets. We employ the methodology developed by Fama and Schwert, which represents a generalization of the Fisher equation. Two different measures of anticipated inflation were used to estimate the regression equations. The results show that REITs generally tend to behave like equities with respect to their hedging characteristics, regardless of how inflation expectations are measured. When we used a survey measure of anticipated inflation, however, we found some evidence that REITs are partial hedges against anticipated inflation.     

Analyst Forecast Accuracy and Media Independence

Using a large international sample of 47,307 firm‐years from 52 countries, we investigate the impact of media independence on the forecast quality of financial analysts. We find that analyst forecast errors are positively associated with the extent of a country's state media ownership and its lack of freedom of the press. We also find that financial analysts with more inaccurate forecasts disappear from the institutional broker's estimate system more quickly in countries with more independent media.     

The Effect of IPO Risks on Auditors’ Decisions: Auditor Designation Case

This study examines the effect of audit risks in the Korean initial public offering (IPO) market on the designated auditors’ decisions. The Korean External Audit Act requires firms to switch from incumbent to new auditors designated by the Securities and Futures Commission after the firm announces a future IPO. This study shows the effects of audit risks by examining if the quality of reported earnings and audit fees significantly differs between IPO‐eligible and IPO‐ineligible firms. Empirical tests first show that discretionary accruals are significantly lower for IPO‐ineligible firms than for IPO‐eligible firms in both the IPO designation period and the following review period. We interpret this result to mean that designated auditors evaluate the IPO‐ineligible (and eventually failed) firms’ listing possibility as low. Second, audit fees are higher for IPO‐ineligible firms in the auditor designation period. This reflects the fact that designated auditors are exposed to future audit risks associated with firms’ post‐IPO financial market troubles if IPO‐ineligible firms attempt to go public. Our study contributes to IPO‐related research by showing the effects of auditors’ risk evaluation on discretionary accruals and audit fees. This study also contributes to accounting policymaking regarding auditor independence.     

Industry shakeouts and product strategies: lessons from the US laser printer industry

Many industries experience a shakeout, which occurs when, after an initial increase, the number of firms drops significantly in a short period of time. A shakeout drives changes in the market structure and, thus, accompanying changes in firms’ strategies. In this paper, we explore differences in firms’ product strategies (i.e. product quality improvement, product line management, and product market strategy) before and after the initiation of an industry shakeout, focusing on the role of product exit. In analyzing a sample of US laser printer manufacturers and their products for the period between 1983 and 2002, we find clear differences in firms’ product exit decisions before and after the initiation of a shakeout. With these findings, our study contributes to the understanding of the link between industry shakeouts and firms’ product strategies.