Trade with Time Zone Differences: Factor Market Implications

The main purpose of this study is to illustrate, with a simple two‐factor (skilled and unskilled labor) model, how a time‐saving improvement in business‐services trade benefitting from differences in time zones can have an impact on national factor markets. In doing so, we intend to capture the situation where the night‐shift work in one country is replaced by the day‐shift work in another country. In other words, we will show that trade with time zone differences will result in shifts of the relative supplies and demands for skilled labor around the globe.     

Mexico's development strategy for the 1980s

In examining the problems and prospects of the Mexican economy in the 1980s. the main concern of this paper is whether Mexico will use its new found wealth to correct some of the major deficiences of past policies or whether the development of the energy sector will further increase the dualism between the modern and traditional sectors. This paper surveys the major problems now facing the economy (poverty and unemployment, declining agricultural production, a weak industrial base, inflation) and then discusses the framework in which Mexico proposes to deal with these problems, in particular the priority allocated to development of oil and gas. The policies are then compared briefly with the experience of Japan and Iran. The conclusion takes a critical view of current Mexican policies and suggests that a more equity-oriented and efficient growth strategy is required.     

Business Incubators in China: A Financial Services Perspective

The business incubation industry in China has been booming since the mid-1990s. However, the lack of a well-developed financial services sector has become a major bottleneck to the growth of the industry. Based on our visits to 12 Chinese business incubators around the country and interviews with their executives, we present our perspective on the state of the incubator industry in China with special emphasis on incubators' financial services for their incubatees.     

Positive versus negative comparative advertising

Two studies examined cognitive responses to comparative advertising that was valenced, i.e., was either negative or positive. Negative comparative advertising featured the advertised brand derogating the comparison brand (I'm OK, you're not OK). Positive comparative advertising claimed superiority over the comparison brand in a nonderogatory manner (You're OK, I'm more OK). Subjects were exposed to either a negative comparative ad or a positive comparative ad. In study 1, the ad featured either a high or low share advertised brand and either a high or low share comparison brand while in study 2, the ad featured advertised and comparison brands with either a strong or a weak reputation. Across both studies, it was found that negative comparative advertising evoked significantly higher counterargumentation and lower claim acceptance than its positive counterpart. Also, when the advertised brand had a high share relative to the comparison brand, counterargumentation was lower and claim acceptance was higher vis-a-vis when the advertised brand had a low share relative to the comparison brand. Findings pertaining to brand reputation were mixed. Managerial and future research implications of the findings are discussed.     

Investigating the different approaches to importance–performance analysis

Importance–performance analysis (IPA) is an analytic technique that generates a two-dimensional importance–performance grid, where the values of importance and performance across attributes are plotted against each other. This technique is used to assist service and other firms in prioritizing areas for service improvement when resources are limited. This study contributes to service theory by first performing a comprehensive literature review of four different and commonly used approaches to IPA. Survey data from the ports sector are then used to elucidate the value and the distinctiveness of these four different approaches, and it is also shown how the underlying theoretical assumptions led to somewhat varying, and contradictory interpretations. Subsequently, novel guidelines for integrating results from these four different approaches are proposed. The study advances service theory by detailing the integration of the different approaches to make sense of the importance and performance of diverse service attributes. The integrative approach developed in this paper also provides practitioners with clearer guidance for the application of IPA.     

Discussion of “Comparing Alternative Hedge Accounting Standards: Shareholders' Perspective”

Review of Accounting Studies -     

Are labor markets segmented in developing countries? A semiparametric approach

We test the hypothesis that observably similar workers earn higher wages in the formal sector than in the informal sector in developing nations. Using data from Argentina's household survey and various definitions of informal employment, we find that on average, formal wages are higher than informal wages. Parametric tests suggest that a formal premium remains after controlling for individual and establishment characteristics. However, this approach suffers from several econometric problems, which we address with semiparametric methods. The resulting formal premium estimates prove either small and insignificant, or negative. Neither do we find significant differences in measures of job satisfaction between the two sectors. We invoke these results to question the mainstream view that labor markets are segmented along formal/informal lines in developing nations such as Argentina.