Discussion of “Aggregate Margin Debt and the Divergence of Price from Accounting Fundamentals”

Burger and Curtis (2017) is an empirical investigation of whether aggregate margin debt correlates with aggregate stock prices and aggregate accounting‐based fundamentals. While the paper convincingly documents a significant relation: aggregate margin debt is higher when aggregate fundamentals‐to‐price ratios are low, it fails to document why. The documented relation could exist because margin traders are the overly exuberant noise traders that push stock prices higher away from fundamental values; or the documented relation could be spurious, and exist because aggregate margin debt rises with aggregate price levels simply because margin loan capacity increases as aggregate price levels increase. With insufficiently granular data (aggregate margin debt measured monthly), the authors are not able to sort out why the relation exists. Thus, interpretation of the findings documented in this paper is difficult.     

Shareholder value,stakeholder management,and social issues: what's the bottom line?

We test the relationship between shareholder value, stakeholder management, and social issue participation. Building better relations with primary stakeholders like employees, customers, suppliers, and communities could lead to increased shareholder wealth by helping firms develop intangible, valuable assets which can be sources of competitive advantage. On the other hand, using corporate resources for social issues not related to primary stakeholders may not create value for shareholders. We test these propositions with data from S&P 500 firms and find evidence that stakeholder management leads to improved shareholder value, while social issue participation is negatively associated with shareholder value. Copyright © 2001 John Wiley & Sons, Ltd.     

Managing and modeling the price reduction effect in mobile telecommunications traffic

As needs for telecommunications services diversify, an increasingly wide range of services is becoming available in the market. Service price reduction is one strategy used by service providers to retain existing subscribers. A price reduction for one service, however, can affect the individual-level usage for other services. Price reductions can also be imposed on a service provider by regulation. For these reasons, understanding how price reductions affect service usage is of growing importance to the telecommunications industry for purposes of pricing and tariff development. In this paper, an individual-level usage model for telecommunications services is developed and the effects on usage of a price reduction are analyzed. The model is applied to age-stratified aggregate traffic data for a Korean mobile telecommunication service provider. Finally, a 0-1 integer programming model is proposed for choosing which market segment should be targeted with a price reduction to minimize revenue loss. These models can be applied to market segmentation and price reduction strategy.     

Environmentally related research in scholarly hospitality journals: Current status and future opportunities

This study presents a comprehensive review of recent developments in environmentally related research articles published in major hospitality journals in the period from 2000 to 2010. A total of 58 articles are classified into three hospitality areas: lodging, restaurant, and meeting and convention. The results are presented with the discussion of research articles by period, journal, research focus, research type, and key findings. Conclusions and recommendations for future research are offered.     

The effect of board capital and CEO power on strategic change

We develop the construct of board capital, composed of the breadth and depth of directors' human and social capital, and explore how board capital affects strategic change. Building upon resource dependence theory, we submit that board capital breadth leads to more strategic change, while board capital depth leads to less. We also recognize CEO power as a moderator of these relationships. Our hypotheses are tested using a random sample of firms on the S&P 500. We find support for the effect of board capital on strategic change, and partial support for the moderating effect of CEO power. Copyright © 2010 John Wiley & Sons, Ltd.     

Dynamic capabilities and strategic management

The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm’s (specific) asset positions (such as the firm’s portfolio of difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is amplified where conditions of increasing returns exist. Whether and how a firm’s competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding internally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing internal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival’s costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.     

The Village Network™: Partnership and collaboration to alleviate poverty in subsistence marketplaces

The Village Network is a unique model of poverty alleviation involving the collaboration of a host subsistence market community and a nonprofit organization, typically a university, with a multidisciplinary academic module. All parties in this partnership stand to gain from collaboration. The subsistence market benefits from the skill set and labor provided by the university. The university benefits by placing their students in a position to apply theory guided by the social and economic development experience and insights of the indigenous village leadership. The coordinating organization improves relationships and fosters growth in developing communities. The discussion then focuses on insights about subsistence marketplaces that emerge from this initiative.     

Frontline employee motivation to participate in service innovation implementation

Companies today face the challenge not only of designing innovative customer-focused service strategies to compete and grow but also of translating such strategies into results through successful execution. Experience and research demonstrate the difficulty of such an execution, but little research in marketing has focused on strategy implementation, particularly at the employee level. Prior research has suggested that frontline employee participation is critical to successful innovation implementation, especially in service contexts. We develop a theoretical model to investigate the complex role of motivation in engaging employee participation in service innovation implementation and test it with field data from a real-world context. The study contributes to motivation research in marketing by adapting and extending a hierarchical conceptualization from psychology that incorporates three levels of motivation: global, contextual, and situational. We also investigate the antecedents managers can control to increase employee motivation to participate in implementation efforts and subsequently to improve participation behaviors that are critical to the successful implementation of a customer service innovation.     

Supervisión y rendición de cuentas en el sector de la auditoría social. El papel de las iniciativas de cumplimiento social

El colapso del Rana Plaza en 2013 concienció acerca de las condiciones de trabajo abusivas en la industria del vestido. Se ha prestado mucha atención a la responsabilidad de las empresas minoristas, pero no tanta a la de las empresas de auditoría social. Las autoras investigan los sistemas existentes para detectar y corregir las auditorías deficientes e ineficaces y concluyen que, en la práctica, la supervisión y las sanciones en este ámbito son limitadas. Se explora pues cómo las iniciativas de cumplimiento social pueden mejorar la verificación de la calidad de las auditorías y la rendición de cuentas.