The Causes and Consequences of Accelerated Stock Repurchases

We examine the choice between accelerated share repurchase (ASR) and open market repurchase (OMR) as repurchase mechanisms between 2004 and 2007. For a sample of ASRs and OMRs that actually buy shares in the announcement quarter, we find that ASR firms have lower market‐to‐book ratios, less cash, but greater managerial entrenchment. Prior to repurchase, ASR firms are subject to significantly more takeover rumors than OMR firms are, and this, along with entrenchment and undervaluation, affects the choice to use ASRs. ASR firms experience positive average abnormal returns both before and after the announcement. Moreover, the latent takeover probability is significantly lower for both ASR and OMR firms (when compared with pre‐announcement levels), but the reduction for ASR firms is more pronounced. Our results suggest that repurchases, and especially ASRs, indeed make a firm a less attractive prospect for takeover.     

Globalizing Business Ethics Research and the Ethical Need to Include the Bottom-of-the-Pyramid Countries: Redefining the Global Triad as Business Systems and Institutions

A majority of the countries in the world are still considered “developing,” with a per capita income of less than U$1,000. Hahn (2008, Journal of Business Ethics 78, 711–721) recently proposed an ambitious business ethics research agenda for integrating the “bottom-of-the-pyramid” countries (Prahalad and Hart, 2002, Strategy and Competition 20, 2–14) through sustainable development and corporate citizenship. Hahn’s work is among the growing field of research in comparative business ethics including the global business ethics index (Michalos, 2008, Journal of Business Ethics 79(1), 9–19; Scholtens and Dam, 2008, Journal of Business Ethics 75(3), 273–284; Tsalikis and Seaton, 2008, Journal of Business Ethics 75(3), 229–238). This article is complementary to Hahn’s work and it advocates an urgent need for business ethics researchers to globally integrate the bottom-of-the-pyramid countries through a fundamental re-definition of the global economic triad, including the United States, Western Europe, and Japan [Ohmae, 1985, Triad Power: The Coming Shape of Global Competition (New York: Free Press)]. The definition that we propose is based on business systems and institutional perspectives that include the bottom-of-the-pyramid countries. We also propose to broaden the research in business ethics to enable comparisons across business systems indifferent income levels.     

Leader political skill and casino dealer morale: the mediating role of follower perceptions of leader–member exchange

Our study investigated the follower perceptions of leader–member exchange (FPLMX) as a mediator between leader political skill (LPS) and follower morale and tested these relationships using data obtained from casino dealers in Korea. Social astuteness, interpersonal influence, networking ability, and apparent sincerity are the indicators of LPS, while follower morale is composed of job satisfaction and affective organizational commitment. The results from structural equation modeling suggest that the research model we have proposed is viable. Broadly speaking, FPLMX is a partial mediator between LPS and follower morale.     

The unrealized value of incentivized eWOM recommendations

While companies have recognized the perceived economic benefits of encouraging and managing electronic word-of-mouth (eWOM), the benefits may be understated. Companies take into account the influence on the audience. But, what about any effects on the person who communicates the eWOM? We explore the impact that incentivized eWOM has on communicator attitude. Using the saying is believing effect as our theoretical foundation, we suggest that providing eWOM induces a change in the communicator’s attitude. By generating and providing a biased recommendation, the communicator will believe the biased recommendation. Furthermore, the communicator is likely to remember the biased recommendation and will use it to update their attitude. We examine how valence of recommendations (negative versus positive) and the number of opportunities to recommend affect the change in attitude. Our findings indicate that providing recommendations changes communicator’s attitude. Implications of the results are discussed.     

Hotel Employees' Perception of Green Practices

This study examined how hotel employees perceive green practices. Data was collected from 220 employees working in eight green certified hotels in Orlando, Florida. Study results from an importance–performance analysis revealed that the surveyed employees rated their hotels' performance in green practices lower than the importance levels. A positive correlation was found between the employees' organizational commitment and their perception on the company's green practices. The relationship between the respondents' key demographic characteristics and their perception of green practices was also investigated. Lastly, implications for hotels are discussed to assist the companies to promote and train green practices among their employees.     

Query Titles in Travel Forums: Nature and Impacts on Responses

Despite travel forums being an influential source of electronic word of mouth in the tourism context, the nature of interaction between information inquirers and contributors is yet to be appraised. This study attempts to fill the knowledge gap by exploring the inquiry titles in a travel forum in terms of its nature and influence on viewers’ responses. For empirical examination, thread titles for queries on South Korea and Japan that were posted in the Lonely Planet Thorn tree forum between March 2009 and February 2010 were collected (n?=?220) and analyzed. The results reveal that search by location is prevalent when potential tourists post a query in a travel forum. Search by interest is more likely at the city or regional level, while search by general (SBG) topic is prevalent in national-level search. The nature of inquiry title also reflects the intended length of stay at a destination. SBG in title significantly outweighs other categories in terms of the number of views and replies. Implication of findings and directions for future study are discussed.     

Senior Travelers and Airport Shopping: Deepening Repurchase Decision-making Theory

Despite the importance of the seniors market, little is known about international senior tourists' post-purchasing behaviors in the airport-shopping industry. The aims of this study were to attain a better comprehension of these customers' repurchase decision formation by employing a Theory of Repurchase Decision-making (TRD) and identify differences in the proposed theoretical framework between senior and non-senior travelers. A field survey was conducted to collect data at international airports. Results of a structural model showed that the TRD has an excellent ability to predict seniors' repurchase intentions; some variables in the model were found to have a significant mediating impact. Additionally, satisfaction was determined to play a prominent role in these decisions. Finally, findings from the test for metric invariance revealed that the proposed theoretical framework significantly differed across senior and non-senior tourist groups, verifying the moderating impact of age. Implications for both researchers and practitioners are discussed.     

Intention to pay conventional-hotel prices at a green hotel – a modification of the theory of planned behavior

Numerous studies have employed the theory of planned behavior (TPB) to understand customers’ behaviors in various fields, but none has tested and extended the theory to explain customers’ decision formation to pay comparable regular-hotel prices for a green hotel. This is the first study designed to test and modify the TPB by including environmental concerns, perceived customer effectiveness and environmentally conscious behaviors, which are critical in explaining eco-friendly consumer behaviors. Salient belief items were identified using an elicitation method (focus group and open-ended survey). A survey obtained 389 respondents. Confirmatory factor analysis indicated that measurement items for all study variables had an adequate level of reliability and validity. The findings from the structural equation modeling showed that the proposed model had a satisfactory fit to the data and better predicted hotel customers’ intention than the original TPB. The results also indicated that all antecedent variables of intention significantly contributed to forming the intention to pay conventional-hotel prices for a green hotel. Respondents were happy to have minor inconveniences, e.g. reusing towels and using recycled products, and were keen to learn about the positive environmental attributes of green hotels. Benefit awareness was shown to be important in customer decision-making.