The Price is Right? Pay Settlements and Nominal Wage Rigidity in Britain

We examine representative, group‐level wage settlement data to augment the debate on nominal pay rigidity in Britain. We investigate the characteristics of groups that settle at zero and the role of within‐firm and external influences. Nominal settlement cuts are rare. Zero nominal wage settlements are more common, but still relatively unusual, highest during (low‐inflation) recessionary periods. Small groups, above all firms under duress, appear most likely to settle at zero. Once a group settles at zero it is unlikely to do so again in the short run.     

Common Method Variance in Advertising Research: When to Be Concerned and How to Control for It

In this article we discuss and analyze the critical issues related to common method variance (CMV) that are particularly relevant to advertising research and recommend best practices for assessing the effects of CMV in this domain. Specifically, we cover the development of CMV as a domain-specific methodological concern and the underlying sources of CMV that are likely to operate in cross-sectional survey-based studies in the field of advertising. We discuss in detail the available procedural and statistical techniques that can be applied to control for and/or measure the effects of sources of CMV in a single study and across research domains. In addition, we provide a critical look at how these techniques have been employed in past research and make recommendations for future examinations of CMV in advertising research.     

Building entrepreneurial tie portfolios through strategic homophily: The role of narrative identity work in venture creation and early growth

In this article, we present the results of a case study of an entrepreneur who successfully founded and grew a venture underpinned by a portfolio of strongly homophilous, dyadic ties. Building on our case, we discuss how the entrepreneur strategically constructed these ties through a form of narrative identity work, explore the shared identity narratives that he used to do so, and highlight the heterogeneous nature of the resulting tie portfolio. We go on to explore the factors that motivated the entrepreneur to purposefully construct an entrepreneurial tie portfolio in this way. Building on our findings, we discuss the nature of narrative identity work and its role in creating homophilous ties, explore the connection between the resulting shared identity narratives and trust, and discuss the central role of values in strategic homophily.     

Partial Industrialisation in Tourism: A New Model

Certain forms of human activity, such as sport, education and tourism, can be described as being partly industrialised; they are supported partly by organisations with industrial relationships to the particular activity (e.g. tourism industries, sports industries, and so on), and partly by other factors. The latter includes business organisations whose relationship to the activity might be direct and commercial but is non-strategic, non-industrial. Partial industrialisation in tourism (PIIT) has been explored by a handful of researchers interested in its nature, causes and implications. However, the diagrammatic model used in the exploratory studies is awkward, a defect that probably helps explain why PIIT has not become widely recognised in the community of tourism researchers. A new model enables clearer insight and should facilitate understanding and greater recognition. Using the new model, an empirical research project in a mass destination provided substantial evidence for PIIT. Implications arise for many issues, including how tourism is conceptualised, strategic business management, destination competitiveness, destination development and promotion, seasonality, environmental activism, employment numbers, vocational training, planning and government policy.     

Information Provided by Accrual and Cash-Flow Measures of Operating Activities

This article examines accrual and cash-flow measures useful for observing companies' financing, investing and operating activities. It addresses the information provided jointly by income and operating cash flow, and reveals that information provided by these accounting measures is dependent on their relative magnitudes. A consistent pattern of income in excess of operating cash flow, with both measures appropriately adjusted and scaled, indicates superior company growth. Income and cash-flow patterns are associated significantly with various company financing, investing and operating attributes. Empirical tests confirm that both income and operating cash flow are important for observing company performance and prospects when considered jointly and when interpreted with respect to accounting measurement theory. At least for many companies, the results do not support the conventional wisdoms that accounting measures of income and operating cash flow converge over long periods of time and that earnings provide a reliable basis for cash-flow prediction.     

Fissures in the marketing strategies of South Asian restaurants in Edinburgh

This exploratory study sought to investigate South Asian restaurants in Edinburgh, Scotland, UK in order to obtain a preliminary identification of marketing gaps compromising their future profitability. The aims of the study were to expose and understand the relative importance attached by owners and managers of South Asian restaurants in Edinburgh to the different elements of the marketing mix. South Asian restaurants form a small but important sector of the restaurant in market in towns throughout the UK and are characteristically of disproportionate financial and social importance to the communities who run them. South Asian restaurants in Edinburgh, as in most towns in the UK, are run primarily by the Bangladeshi community and are under increasing pressure as the variety of restaurants operating in the sector increases. The results of the study make evident that any initiatives taken to support South Asian restaurants should include awareness‐raising actions. Building awareness, which is perceived to be currently partially understood, of the importance of studying markets, customers and competitors is essential before any advice is given on how to accomplish these monitoring tasks. Equally, a fundamental priority is to encourage self‐critical and proactive approaches to business, thus increasing the capacity to identify possible problems and implement correcting measures.     

THE EFFECT OF TRADING IN EIGHTHS ON SECURITY RETURN BEHAVIOR

Currently the equity securities of most British, Canadian and US firms trade in eighths. However, this pricing system may soon be abandoned in the US. Specifically, the US Securities and Exchange Commission (SEC) is currently studying the feasibility of changing the pricing of US securities to dollars and cents from dollars and eighths. 'SEC officials contend that moving to a system that quotes stock prices in dollars and cents would create efficiency in the stock market that eighths and sometimes sixteenths can't permit' (Torres and Salwen, 1991). This paper demonstrates the inefficiencies that result from constraining stocks to trade in eighths of a dollar. It describes the effects on returns and betas; then, it presents empirical evidence consistent with the effects. Systematic differences in the distributions of returns of low and high-priced stocks are documented. The covariance of returns with a market index is shown to vary systematically across stocks of different prices and to depend on the return interval used to estimate market model parameters. The variations are explainable by an observed lag between the returns of low-priced stocks relative to those of high-priced stocks. The lag is partially attributable to trading in eighths. A systematic relationship that varies with share price is observed between market model residual returns and unadjusted returns. This relationship is not eliminated by using longer return intervals alone. The extent of the relationship is reduced when longer return intervals are combined with the use of a market index composed of stocks that are priced similarly to those of the securities being tested. The implications of these results for capital market studies are discussed.