Weighted symmetric tests for a unit root: response functions,power, test dependence and test conflict

The most frequently applied test statistics for a unit root are the Dickey–Fuller tests, which are built into many econometric packages along with MacKinnon's empirical response functions. This article provides empirical response functions for some easy to compute alternative test statistics that are generally much more powerful than the Dickey–Fuller tests; specifically, these are the Dickey–Fuller tests and the weighted symmetric versions of the and tests. The empirical response functions presented here take into account adjustments for lag length in the maintained regression, and also extend the design of the simulation experiments compared to previous work. A second aspect of this study concerns the widespread practice in applied econometrics of using more than one test for the same feature without an assessment of the implications for the cumulative significance level and probability of test conflict. Tests for a unit root being are a leading example of this practice. Using the extended set of unit root tests considered here, the extent of test dependence is simulated and overall type one error calculated. Two empirical applications illustrate the key principles.     

Improving customer website involvement through experiential marketing

This study outlines some of the important positive outcomes of enhancing e-retailing services through adding experiential benefits. It investigates how provision of experiential values by an online store improves involvement of customers in the e-retailer's website. This paper also looks at the impacts of experiential values on the recently developed construct of perceived e-retailer's assistive intent and investigates whether this variable contributes to the enhancement of website involvement. Collecting data from 431 North American students through a survey on actual shopping experiences supports the overall model and the majority of the hypotheses. Findings confirm that esthetics, service excellence, and customer return on investment are effective experiential values in terms of improving e-retailer's assistive image and enhancing customers' involvement in the website.     

The relevance of pecking order hypothesis for the financing of computer software and biotechnology small firms: some UK evidence

This study explores the funding issues at the early stages of development of computer software and biotechnology small firms in the UK. This study reviewed previous relevant literature in this area and presents empirical evidence derived from an extensive online questionnaire survey. The sample contains a total of 83 small firms, which includes 41 biotechnology and 42 software firms. With regards to funding issues, we found that software firms reports more funding problems than the biotechnology firms. Software firms are fastest growing firms and goes through the early stages of development quicker than the biotechnology firms. With regards to the sources of funding the evidence shows that biotechnology small firms mainly use venture capital finance whilst the main source of funding for the software firms are personal savings and house mortgage/re-mortgage. On the one hand, software firms seem to follow the pecking order hypothesis whilst financing their business growth and development. On the other hand, the pecking order hypothesis may not be fully followed by the biotechnology small firms. However, both software and biotechnology small firms report difficulties in securing equity finance. Software firms are financially constrained not only due to the supply side financial constraints but also by the demand side financial constraints.     

Trade Expansion of China and India: Threat or Opportunity?

By exploring the export performances and specialisation patterns of China and India, we assess their trade competitiveness and complementarity vis-à-vis each other as well as with the rest of the world. Our analysis indicates that (a) India faces tough competition from China in the third markets especially in clothing, textiles and leather products; (b) there is a moderate potential for expanding trade between the two countries; (c) China poses a challenge for the East Asian economies, the US, and most European countries especially in medium-technology industries; (d) India appears to be a competitor mainly for its neighbouring South Asian countries; (e) complementarity exists between the imports of China and India, and the exports of the US, some European states and East Asian countries, especially Japan, Korea, Malaysia, Singapore and Thailand, implying opportunities for trade expansion; and finally (f) the export structure of China is changing with the exports of skill-intensive and high-technology products increasing and those of labour-intensive products decreasing gradually. This suggests that challenges created by China in traditional labour-intensive products might reduce in the long run.     

Assessing multifunctional innovation adoption via an integrative model

This study proposes and tests an integrative model that incorporates the mental resources framework (MOA: motivation, opportunity, and ability) alongside traditional innovation adoption predictors for assessing the adoption of dual-functionality innovations (DFI), a special case of multifunctional innovations (MFI). The multifunctional nature of an increasing number of new products demands the use of mental resources in evaluating new offers, as the comprehension of MFIs is more demanding (i.e., requires more mental resources) than single-functionality (SF) products. The proposed model also recognizes the role of MFI categorization as a critical link in the process, because an MFI, and within the context of our study a DFI, helps consumers achieve multiple goals if they realize its dual functionality. Our model demonstrates that mental resources play a significant role in consumers’ adoption decisions and should be included in studies of MFI adoption. Further, our integrative model offers a significant improvement over rival alternatives that use only traditional innovation adoption predictors. Thus, the model offers a new approach for estimating MFI adoption with a superior predictive power and facilitates the development of appropriate marketing strategies for such products.     

Political connections and corporate financial decision making

Review of Quantitative Finance and Accounting - This paper investigates whether and how political connections influence managerial financial decisions. Our study reveals that those firms that have...     

Modeling tourists' visiting intentions toward ecofriendly destinations: Implications for sustainable tourism operators

The previous literature has overlooked the examination of tourists' visiting intentions for ecofriendly destinations. Hence, anchored in Schwartz (1992) personal values and the theory of planned behavior (TPB), the present study aims to develop a research model for application in Chinese settings. Survey findings from 467 tourists reveal significant positive relationships between tourists' values of resultant self‐transcendence and conservation and TPB factors (i.e., attitude, subjective norms, and perceived behavioral control), with the exception of the relationship between conservation and perceived behavioral control. Moreover, TPB factors and perceived green image were found to have positive effects on tourists' intentions to visit ecofriendly destinations. In addition, environmental consciousness positively moderates the relationships between the two Schwartz values and attitude. Theoretical implications are provided, and the study's findings have strategic practical implications for business managers. We acknowledge the study's limitations and offer research directions for future ecofriendly tourism scholars.     

The Role of Happiness in Financial Decisions: Evidence from Financial Portfolio Choice and Five European Countries

This paper investigates the role of happiness in portfolio choices. Previous literature has only emphasized the reverse association. An additional novelty of the paper is that the analysis focuses on a wider country sample, while the literature has mainly focused on the U.S. and U.K. economies. Based on micro data from five European countries, i.e., France, Germany, Italy, the Netherlands, and the U.K., spanning the period 2009–2014, the results show that higher levels of happiness lead to higher shares of risky assets in financial portfolios. The findings survive a number of robustness tests. When asset holdings are disaggregated by the extent of the risk associated with them, this effect remains only for safe and low-risk assets, whereas the effect for assets with higher risks is the reverse.