Market integration between surplus and deficit rice markets during global food crisis period

Applying the maximum‐likelihood method of co‐integration, this study analysed spatial market integration between an adjacent rice surplus market (India) and deficit markets (Bangladesh and Nepal). The main focus is on the government policies of these three rice‐producing countries which have been imposed to reduce domestic price volatilities in rice markets during the recent ‘global food crisis’ in 2007–2008. The co‐integration tests find that domestic rice prices of India, Bangladesh and Nepal are integrated both in short‐run and long‐run periods despite the imposition of export restriction policies by India. The reason that prices are transmitted so effectively is most likely to be the widespread informal cross‐border trade through the porous borders among India, Bangladesh and Nepal.     

The effectiveness of movie trailer advertising

Prior to a movie release in theaters, trailer advertising provides valuable information that can help viewers and investors form expectations about the movie's future success. While previous research has looked at the financial implications of movie advertising budgets, the effects of trailers' creative characteristics on abnormal returns have not yet been investigated. Using a sample of movie trailers, results from our event study and cross-sectional analysis show that the appeal of the movie plot revealed in the trailer, the number of scene cuts and the inclusion of violent, sexual, or humorous scenes influence the movie's abnormal returns. However, the use of special effects in the movie trailer does not impact investors. Results also suggest that investors react more strongly to first than to follow-up trailers released for the movie, and that early release of the first positively impacts the movie's returns.     

The Adoption of Genetically Modified Cotton and Poverty Reduction in Pakistan

This article employs a propensity score‐matching approach to examine the direct effects of adoption of Bacillus thuringiensis (Bt) cotton on yields, pesticide demand, household income and poverty, using cross‐sectional data from a survey of farmers in the Punjab province of Pakistan. Generally, the findings reveal that adoption of the new technology exerts a positive and significant impact on cotton yields, household income and poverty reduction, and a negative effect on the use of pesticides. The positive and significant impact of the technology on yields and household income is consistent with the potential role of new agricultural technology in directly reducing rural poverty through increased farm household income.     

Microfoundations of institutional change: Contrasting institutional sabotage to entrepreneurship

This paper addresses little understood microfoundations of institutionally driven organizational change and utilizes an institutional‐conflict‐based approach to examine innovation in organizational forms. Using a two‐case comparative analysis, we longitudinally examine the antecedents, mechanisms, and success/failure of attempts at change by institutional entrepreneurs. We analyze and develop theoretical insights on the interplay between internal political processes and external competitive actions in the creation of innovation in organizational forms and the subsequent legitimacy struggles through which an organizational field evolves in a sports (cricket) business context. We draw implications for institutional actors by observing patterns in organizational and institutional evolution in such contexts. We contribute to institutional entrepreneurship literature by developing a nuanced process model of success and failure in institutional entrepreneurship. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

The Usefulness of Measures of Consistency of Discretionary Components of Accruals in the Detection of Earnings Management

Abstract:  Prior research has shown the prevalence of measurement error in models used to estimate aggregate discretionary accruals. In these models, the incremental information content of the various components of accruals is ignored. Limited prior research and data gathered from firms under Securities and Exchange Commission (SEC) litigation indicate that managers use either one or more than one component of accruals simultaneously, in a consistent way to manipulate bottom-line earnings in a given direction. I propose two measures that capture the consistency between the discretionary components of accruals and test their significance in earnings management (EM) detection in firms that have artificially added accrual manipulation and firms that were targeted by the SEC for accrual manipulation. There is evidence that this information is incrementally useful in detecting EM. This finding paves the way for improvements in the discretionary accruals measure by including consistency information from the components of aggregate accruals.     

Asymmetric Foreign Currency Exposures and Derivatives Use: Evidence from France

This paper provides evidence on the asymmetric sensitivity of stock returns of French firms to exchange rate risk and the effect of foreign currency (FC) derivative use in alleviating this risk. The results show that FC exposure is frequently asymmetric and differs with respect to the US dollar (USD) and non‐USD currencies. Cross sectional analysis provides evidence that FC derivatives use has a significant effect on reducing FC exposure to appreciations and depreciations of non‐USD currencies and depreciations of the USD, but not to appreciations of the USD.     

Who spends more online? The influence of time,usage variety,and privacy concern on online spending

The paper tests the influence of adoption time, online time, usage variety, and privacy concern on online spending. Findings support the hypothesis that online time, adoption time, and usage variety, the three dimensions of Internet usage experience, have a positive and significant influence on the amount of money consumers spend online, and privacy concern has a negative and significant influence. The control variables included in the model are gender, age, education, and income. Gender, age, and education did not influence online spending. However, income has a significant effect on online spending. Theoretical and strategic implications and recommendations for future research are presented.     

Land degradation: links to agricultural output and profitability

To understand land degradation and assess policy responses, knowledge is needed of the bio-physical causes, the economic effects on farms and the incentives farmers face to avoid or ameliorate the degradation. An empirical study of land degradation in the Australian state of New South Wales is presented in this article. The results suggest that there are incentives for farmers to co-exist with certain forms of degradation, while there are also incentives to avoid some other forms.     

Influencers' “organic” persuasion through electronic word of mouth: A case of sincerity over brains and beauty

Despite the growing importance of influencers' word-of-mouth through audiovisual content, little is known about its effect on consumers' brand evaluation, purchase intentions, and decisions. Drawing on Ohanian's source credibility framework, we conducted two studies across different influencers, product categories, and respondents' gender and tested the hypotheses using covariance-based and partial least square structural equation modeling. Study 1 focuses on a mega-influencer of cosmetic and beauty brands and predominantly involves female respondents. The findings show that the influencer's attractiveness affects perceptions about source expertise and source trustworthiness but not brand attitude, while source expertise predicts source trustworthiness, and both mediate the effect of source attractiveness on brand attitude. In contrast, brand attitude predicts purchase intention and mediates the impact of source credibility dimensions. Study 2 focuses on various influencers of hedonic products (lifestyle, fashion, and beauty). The results confirm the influence of source attractiveness and expertise on source trustworthiness, which ultimately predicts consumer purchase decisions. This study reveals the interdependencies between different source constructs, contributing to source credibility theory. Furthermore, we show that the effect of source dimensions that are relevant in the celebrity endorsement literature, such as source attractiveness, do not directly influence consumers' intentions and decisions in the context of influencers' electronic word of mouth. Finally, the two studies confirm that only influencers perceived as honest and sincere can influence consumers' purchase decisions.