Accounting based valuation: a simultaneous equations model for forecasting earnings to proxy for ‘other information’

This paper develops and tests a simultaneous equations model (SEM) for extending accounting based valuation models used in empirical studies. Rather than using analysts’ forecasts, we derive forecasts of operating income from the SEM to calculate the ‘other information’ variable in the Ohlson (Contemp Account Res 11:661–687, 1995) model. The SEM forecasts are based on observable data contained in the firms’ reporting, like order backlog, and other publicly available information. The SEM produces more accurate out-of-sample forecasts of operating income compared to simple benchmark models particularly in years around economic changes and instability, like the years 2001 and 2009. Integrating the SEM forecast as ‘other information’ in market value regressions significantly increases the explanatory power compared to simpler versions without or with single information proxies for ‘other information’. Finally, we find that the SEM forecast is able to explain a major portion of the information advantage of analysts relevant for explaining market values.     

Promoting service brands via the Internet

This paper suggests a new typology of web design strategies in the academic context, in terms of perceived service quality. A survey of the web pages of 500 high-ranking universities illustrates how academic service brands use different design strategies to communicate their intangible qualities. Differences found between the pages suggest that the design strategy of each university can be described as a point on a continuum, where at one end is a ‘service-oriented’ design strategy and at the other a ‘practice-oriented’ design strategy. Cross-cultural differences were evident in the use of color and image categories. Research and managerial implications are discussed.     

Monetary Policy Transparency in the UK: The Impact of Independence and Inflation Targeting

There is a widespread belief that the transparency of UK monetary policy has increased substantially as a result of the introduction of inflation targeting in 1992 and a number of procedural and institutional reforms which accompanied and followed it. Here, money market responses (and other data) are used to test the possibility that improved anticipation of policy moves may be the result of developments other than the institutional reforms popularly cited. We find overwhelming evidence that the switch to inflation targeting itself significantly reduced monetary policy surprises, while subsequent reforms have contributed little. Where we advance substantially on earlier work is to look at the cross‐sectional dispersion of agents’ anticipation. If the benefit of transparency is the elimination of policy surprise, there is little benefit if the averagely correct anticipations of agents conceal a wide dispersion of view.     

The Effectiveness of Fear Appeals Featuring Fines versus Social Disapproval in Preventing Shoplifting Among Adolescents

The present study investigates the effectiveness of fear appeals, including type of punishment (social disapproval vs. fines), probability of getting caught when shoplifting, and severity of the punishment, in preventing shoplifting among adolescents. Results show that when the chance of getting caught is low, social punishment messages should stress severe levels of social disapproval. When social disapproval messages imply a high probability of apprehension, the severity of social rejection does not affect shoplifting intentions. Finally, messages focusing on fines should depict large instead of small fines, irrespective of the communicated probability of getting caught.     

Organizational learning and strategic renewal

This paper attempts to fill an important gap in the integration of strategy and organizational learning through empirical research that examines the process of strategic renewal using a comprehensive framework of organizational learning. The 4I framework of organizational learning is used to examine the phenomenon of strategic renewal at Canada Post Corporation (CPC). The study illustrates the underlying processes that form the tension between exploration and exploitation, demonstrating why strategic renewal is so challenging. Furthermore, it challenges assumptions about organizational learning, suggesting that we need to demystify organizational learning by removing the halo that surrounds it. Copyright © 2003 John Wiley & Sons, Ltd.     

Structural Relationships among Destination Preference,Satisfaction and Loyalty in Chinese Tourists to Australia

This study quantifies the relationship among destination preference, destination satisfaction and destination loyalty. Destination loyalty consists of two dimensions: word‐of‐mouth (WOM) and destination attachment (DA). It is found that WOM is directly affected by destination satisfaction, whereas DA is predetermined by the destination preference of tourists before a visit. Thus, the destination experience is the crucial factor in the spread of positive WOM about a destination. Nevertheless, to develop tourists' DA, effective loyalty schemes should be implemented through marketing efforts before they visit a destination. The findings of this study can be used by destinations to analyze and evaluate their loyalty‐building process and marketing strategy. Copyright © 2012 John Wiley & Sons, Ltd.     

Financial constraints and foreign direct investment: firm-level evidence

Low productivity is an important barrier to the cross-border expansion of firms. But firms may also need external finance to shoulder the costs of entering foreign markets. We develop a model of multinational firms facing real and financial barriers to foreign direct investment (FDI), and we analyze their impact on the FDI decision. Theoretically, we show that financial constraints can affect highly productive firms more than firms with low productivity because the former are more likely to expand abroad. We provide empirical evidence based on a detailed dataset of German domestic and multinational firms which contains information on parent-level financial constraints as well as on the location the foreign affiliates. We find that financial factors constrain firms’ foreign investment decisions, an effect felt in particular by firms most likely to consider investing abroad. The locational information in our dataset allows exploiting cross-country differences in contract enforcement. Consistent with theory, we find that poor contract enforcement in the host country has a negative impact on FDI decisions.     

Who Gets on the News? The relation between media biases and different actors in news reporting on complex policy processes

Abstract

Having a voice in media is important to gain power and legitimacy in policy processes. However, media are biased in transmitting information. Using a quantitative content analysis of ten years’ news reporting around water management policies in the Netherlands, we study how much media attention different groups of actors receive and how media biases relate to this attention. Executive politicians get on the news because of their authoritative position; less authoritative actors getting on the news is more related to information biases. Information biases can thus function as a form of checks and balances in news reporting on policy processes.     

Work-life balance – a neglected issue among Austrian female expatriates

Previous research has highlighted the importance of subjective well-being and the expatriate's supportive personal environment for the success of an international assignment. As studies focusing on work-life balance of expatriates are still very rare, and research dealing with this topic from a gender perspective seems to be almost non-existent, this study emphasizes the work-life balance situation of female expatriates on foreign assignments. After having interviewed 10 female expatriates, results clearly support the existing state of the art in this field. Thereby work intrusion into family life, for example, has proven to have stronger impact on an expatriate's life than vice versa. Furthermore, several issues so far neglected in the literature have been revealed that influence women's work-life balance abroad. The importance of leisure time, social networks, sports and personal confidence can be determined. Additionally, as work-life balance has an individual meaning, support measures offered by companies are thus also required to be tailored individually. This paper reports on narrative interviews with female expatriates and provides more insight into the subject of work-life balance of international women managers. It begins by reviewing the literature on work-life balance and expatriation before analysing the specific matters of work-life balance of female expatriates and asking how women deal with the additional stress and pressure arising on an international assignment. Then, the underlying Grounded Theory Method is discussed before presenting the findings and discussing their implications in terms of future research.