The effect of political factors on sovereign default

This aricle examines the effect of political factors on sovereign default. Using a theoretical model, we find that political instability increases the likelihood of default. To test this theoretical implication, we use a panel logit model to estimate the effect of long- and short-run political factors, along with other macroeconomic variables, on the probability of default. Data from 68 developed and developing countries between 1970 and 2010 is used to conduct the study. Our findings suggest that a country is more likely to default when (i) it has a relatively younger political regime in place; (ii) it faces a higher chance of political turnover; and (iii) it has a less democratic political system. Economic factors are also vital; a country with stronger growth and less external debt is less likely to experience sovereign default. Robustness tests using alternative measures of political risk, trade balance and EMBI sovereign bond spreads also support the baseline findings.     

Impact of supplier relationship management practices on buying firm performance: comparison of the United States and China

In 2007, Krause, Handfield, and Tyler examined the relationship between various aspects of social capital and buyer performance in the buyer-supplier dyad by surveying buying firms within the United States. This study extends the (Krause et al. in J Oper Manag 25:528–545, 2007) study by replicating it in two different contexts (industry and China). The original study was conducted in the automotive and electronic industries in the United States, while the current study was conducted in both manufacturing and service industries in the United States and China. We found that the difference of information sharing between the two United States populations is the only difference attributed to industry differences. Overall, study results indicate that buyer commitment positively impacted buying firm performance in China; while buyer commitment and shared values impacted buying firm performance in the United States. These findings suggest that certain aspects of social capital are important in China, but differences do exist between the two countries that may be attributed to culture. Therefore, researchers should consider the impact of country culture when conducting studies in China.     

Cracks in Diversity Research: The Effects of Diversity Faultlines on Conflict and Performance

In this quasi-field study, we investigate the effects of diversity faultlines on the conflict experience, performance, and morale of 79 groups. This is one of the first studies to operationalize the construct of diversity-related faultlines (Lau and Murnighan 1998). One of the most important contributions of this research is that faultlines incorporate multiple characteristics of group members simultaneously rather than assessing just one demographic characteristic at a time as most past diversity research has done. We develop a measure to capture the complexity of the faultline construct and to examine the effects of various group diversity faultline profiles on group outcomes. Linear results with a limited range of data show that faultlines are negatively related to conflict and positively related to morale and performance. Supplemental analyses that take into account the unique characteristics of our dataset indicate curvilinear relationships between diversity faultlines and relationship conflict, process conflict, group morale, and group performance. Groups with either virtually no faultlines (very diverse members) or strong faultlines (split into 2 fairly homogeneous subgroups) had higher levels of conflict and lower levels of morale and performance than groups with medium faultlines. The results suggest a more complex relationship between diversity and group process and outcome variables than typically described in diversity research. A detailed discussion of the faultline measure we developed and the methodological issues associated with measuring and interpreting faultlines are reported.     

Expanding opportunities in fashion merchandizing: a successful internship programme through an innovative collaboration with The National NeedleArts Association

Internships are an important part of education in an applied field such as consumer sciences. Within consumer sciences, coursework typical of a fashion merchandizing programme exposes students, often for the first time, to issues of fibre, yarn and textile structure as well as colour and design. While these topics expand student knowledge beyond apparel, students find it difficult to imagine careers outside of the typical fashion merchandizing framework, thus limiting their internship choices to apparel retailing. Most students are unaware of the art and craft markets, specifically the needlearts of knitting, crocheting, needlepoint, cross‐stitching and embroidery. In the United States and Canada alone, this market, which includes fibre and yarn designers and producers, suppliers and retailers, constitutes an $8.5 billion industry. In summer 2006, the University of Akron and The National NeedleArts Association (TNNA), a trade association, initiated a joint venture, coined Pathways into Professional Needlearts (PiPN), to familiarize and train students in the needlearts. During the pilot programme, 10 fashion merchandizing students attended TNNA's trade show, spent 2 weeks in intense needlearts training and completed 10‐week‐long internships. TNNA appealed to its members for internship positions, which were subsequently matched with students’ abilities and expectations. The positions, scattered throughout the United States and Canada, ranged from a summer camp for school‐aged children, a design house for specialty knits, a needlepoint boutique and design business, yarn designers and distributors, to a web site and e‐business to retail boutiques. Both hosts and students benefited from new, and ongoing, business relationships. The enthusiasm for PiPN prompted TNNA to sponsor a second class in 2007. The students reported that they easily transferred their traditional fashion course concepts to their new areas of interest. They were able to apply their knowledge of textile materials, construction techniques, fashion trends, market research and consumer behaviour to both their needlearts course and subsequent internship. Students not only learned the fundamentals of the needlearts, they also gained a new perspective on the possibilities of future careers. Equally important, they experienced the personal fulfilment of self‐expression through artistic media previously not attempted and the relevance of building a community through the needlearts. They also learned that in applying the traditional content of fashion merchandizing to a related industry, they could expand consumer choice by providing a different market perspective.     

Teaching Economics to Trade Unionists

This audience for economic education has special pedagogical and subject matter needs from instructors. The rewards to both, however, outweigh the efforts required.     

When a celebrity endorser is disgraced: A twenty-five-year event study

This paper investigates how the announcement of negative information about a celebrity endorser impacts firm value, as measured by abnormal stock returns. The unique data sample consists of 93 celebrity disgraces that occurred between 1986 and 2011, affecting firms listed on US stock exchanges. Some evidence is documented of negative and statistically significant abnormal returns around these events. Returns are lower when the disgrace attracts much media attention, or when the celebrity itself is prominent. No significant returns are observed when a firm decides to terminate its endorsement contract with the disgraced celebrity. Endorsement contracts for “edgy” products, for which consumers may actually be attracted by negative publicity, are less likely to be terminated.     

Enhancing occupational health and safety in young workers: the role of social marketing

• Young workers (age 15–24) suffer work‐related injury at a much higher rate than older workers, yet research on the role and effectiveness of social marketing to influence and improve workplace safety is limited.
• A review of the relevant literature reveals that significant gaps exist in terms of effectively using social marketing to reduce young worker injury rates.
• A comprehensive, multi‐faceted social marketing approach is required to address young worker safety.
• Directing more attention toward the practice of social marketing can enhance the effectiveness of campaigns to reduce workplace injuries.

Copyright © 2007 John Wiley & Sons, Ltd.