Destination zone fallacies and half-truths

The author discusses key issues surrounding the concept of the destination zone, and seeks to identify fallacies and half-truths about the concept which are still current. Material is drawn from recent destination zone analysis methodology work for the Canadian Government Office of Tourism.     

The collateral value of fine art

In this paper, we examine the effect of implicit seller reserves on the estimation of value-at-risk based on historical asset sales data. We direct our examination toward how and whether fine art might prove an appropriate form of loan collateral for banks and other financial institutions. Using a data set of French Impressionist paintings brought to auction from 1985 to 2001, we control for the effect of works that are bought in-house to construct a distribution of potential sale values that corrects for sample selection bias. It turns out that the downside risk surrounding deviations of auction prices from expert presale estimates depends critically on how buy-ins are incorporated. If downside risk is assessed solely on historical experience with successful auction sales, the data appear to support loan-to-value ratios between 50% and a 100% larger than loan-to-value ratios that countenance the existence of seller reserves. The auction process, however, is quantifiable and can reveal the necessary risk information required for loan consideration.     

Consumer biases in the perception of organizational greed

This article extends current models of how consumers judge or perceive organizations as greedy using the theoretical framework of motivated moral reasoning. We show that inherent features of an organization (size and ‘black sheep’ status) and its behaviour (relative frequency) bias consumer perceptions of organizational greed. We use an experimental methodology, present subjects with vignettes describing different scenarios, validate our questionnaire using confirmatory factor analysis, and test our hypotheses using a general linear model with covariates. Our findings suggest that consumer perceptions of organizational greed are subject to three effects: the underdog effect (Study 1, n = 496), the black sheep effect (Study 2, n = 229) and the ‘common is moral’ heuristic (Study 3, n = 249). This is the first study to investigate greed under a motivated reasoning paradigm and to show that perceptions of organizational greed are subject to socio-psychological biases. This study also provides advice on branding and positioning strategies that appeal to the underdog status of an organization or its local origins.     

Walking the contractual tightrope: a transaction cost economics perspective on social impact bonds

ABSTRACT

Transaction cost economics is applied in this paper to social impact bonds to explore how public service commissioners could improve outcomes-based contracts. The authors supply a framework for assessing the quality of outcomes specifications and clarify the trade-off between a robust value case for government and the transaction costs associated with specifying such a deal. Illustrated by two examples, the authors suggest that commissioners aim for a ‘requisite’ contract: one that minimizes opportunism while balancing the costs of developing a more robust outcomes specification.     

Corporate lobbying in the UK: an analysis of attitudes towards the ASB's 1995 deferred taxation proposals

This paper models corporate lobbying behaviour with respect to the ASB's 1995 discussion paper on deferred taxation. The study makes improvements to the methodology applied in prior studies. It expands the definition of lobbying beyond the submission of comment letters. It extends the analysis to control for past lobbying behaviour. It uses multinomial logistic regression to consider those companies lobbying in favour, those lobbying against, and those that did not lobby. The findings suggest that size and past lobbying behaviour are key determinants of the decision to lobby. In addition, companies that lobbied against the proposals were more likely to have debt covenants than were those that lobbied in favour. Debt covenants, however, did not explain the difference between non-lobbyists and lobbyists against. Companies that lobbied in favour were more likely to experience incentive compensation effects than were those that lobbied against. There was some evidence of the influence of US listing.     

A Study of Older Australians’ Volunteering and Quality of Life: Empirical Evidence and Policy Implications

Older Australians are confronted by dramatic changes in their physical, social, financial, and psychological well-being. There are social costs to these changes related to their productivity and increased costs associated with caring for older Australians. Greater community engagement through voluntary work practice may minimize these costs, as well as positively influence volunteers' subjective quality of life (QOL). This study investigates the motivations for older Australians to engage in formal voluntary work. It seeks to identify whether the motivational factors to volunteer are associated with individuals' subjective QOL. The results indicate a positive relationship between older people's motivations to volunteer and their subjective QOL. This association is strengthened by respondents' community orientation, positive perception of voluntary work, positive personal attitudes toward volunteering, and their self-esteem. The role of policy makers in motivating larger participation by the older groups is discussed.     

Progress through school and the determinants of school dropout in South Africa

The release of the National Income Dynamics Study Wave 2 provides the first nationally representative longitudinal data collected in South Africa, making it possible to study transitions in and out of school, across grades and into work, in ways not previously possible. We illustrate the high levels of grade repetition evident in South African schools and show how school completion presents a significant hurdle with very few youth successfully matriculating. Exit from school does not offer any advantages as most youth find themselves idle once they have left school. Our regression analysis investigates correlates of school dropout and shows that falling behind is a key determinant of school dropout, even after controlling for school quality and socio-economic status. Those behind but attending higher quality schools are partially protected from dropping out. Some evidence that credit constraints may be related to dropout is found, especially among males.     

Male eco‐fashion: a market reality

With the fashion industry striving for competitive advantage, eco‐fashions provide an opportunity to distinguish environmentally friendly products from other fashion products. However, the viability of these eco‐fashion brands is questionable. An exploratory study is conducted to explain men's differences, particularly, as clothing styles vary for men and women. The research examines if men's purchase intent would make a difference to the eco‐fashion industry. A random sample is collected to examine men's purchase intentions for eco‐clothing by product attributes, environmental concerns and sustainable behaviour. Partial least squares is used to empirically test the sample. A conceptual model is developed. It was found that there are four significant exogenous variables, environmental concern, sustainable pricing, sustainable behaviour and sustainable branding with a moderately strong, negatively signed coefficient path. Perceived consumer effectiveness and faith in others are not found to be significant moderators. This defined male segment makes several theoretical contributions as well as generating useful recommendations for marketing practitioners.