The Information Content of Bank Examinations

We identify three types of information from bank examinations—auditing information from verifying the honesty and accuracy of the bank's books, regulatory discipline information about the treatment of the bank by regulators, and private information about bank condition. We estimate these information effects by comparing the cumulative abnormal market returns associated with examinations in which the CAMEL rating remained unchanged, improved, and worsened. All three information effects are found to be greater for banks entering the examination process with unsatisfactory ratings from prior examinations. The only consistently strong effect found is that examination downgrades appear to reveal unfavorable private information about bank condition. The evidence also suggests that the information may reach the market in part through loan quality data released in quarterly financial statements.     

Global M&A: Still the chocolate industry sweetspot?

Like a dividing cell under the microscope, the American snack food market has split apart into two distinct cells, each with its own unique consumer DNA. The two market segments can best be defined as legacy consumers and next‐generation consumers. This tectonic shift in the confectionery industry may make global industry‐giant mergers more a battle between dinosaurs, lit by meteor light.     

Corporate association strategies and consumer responses: The relative effectiveness of CA versus CSR communication strategy by industry type

Given the importance of communication in the realm of corporate associations, this study analyzes the roles that communication strategies play in the formation of corporate associations. The study examines (1) whether particular types of associations (corporate ability or corporate social responsibility associations) can be developed through CA- or CSR-based communication strategies, and (2) the relative effectiveness of these two association types at amplifying favorable consumer responses across three different industries (consumable goods, durable goods, and stigmatized goods). An experiment was conducted to test the proposed model with six Fortune 500 companies. The results demonstrate that communication strategies can effectively facilitate a particular type of association. Differing levels of association effectiveness were found within each industry. For the consumable goods industry, CA associations are found to be more effective than CSR associations. For the durable goods industry, CSR associations are more influential at enhancing consumer attitudes and purchase intent than CA associations, while CA associations have a larger impact on supportive communication intent. In the case of the stigmatized industry, CSR associations play a determinant role in fostering positive consumer responses. This study provides managers and communication specialists with more concrete guidance for choosing a particular corporate positioning and communication strategy.     

Land use and commodity production

An agricultural land use system á la Von Thünen is adduced. Sraffa's theory of production, prices, and distribution is situated within this system. The specific inter-relations of the Von Thünen model and the Sraffa model are then discussed. The discussion is particularly focussed around the problem of the determination of land rent in relation to both production and consumption. Some final comments are appended on the process of land use change.     

Are You a Chocolate Lover? An Investigation of the Repurchase Behavior of Chocolate Consumers

This study aimed to understand the factors affecting repurchase behavior of chocolate brands and, consequently, customer retention and acquisition. The study adopted a qualitative, inductive approach using in-depth interviews with 31 Australian consumers. The factors identified in the extant literature as antecedents of customers’ repurchase intention in the chocolate industry, including brand recognition, sales promotion, product price value, variety, taste, texture, size, packaging, and customer satisfaction, were confirmed. The results also indicated that functional value, product selection value, self-gratification value, socialization value, and transactional value were also considered during the consumer decision-making process. Implications for practitioners are provided.     

Self-gifting as a therapeutic reward: motivational approach for self-gifting promotions

This study uncovers a motivational mechanism of self-gifting and argues for a therapeutic reward of self-gifting in the context of success. The effects of external motivation of achievement as the underlying antecedent of perceived sacrifice on inspiring materialistic self-gifting behavior are investigated. A total of 774 respondents participated in an online survey posted via the nationwide crowdsourcing web service (MTurk) in the US. The results revealed that extrinsic motivation, internal locus of achievement causality, perceived sacrifice and self-achievement evaluations are indicators for predicting material self-rewarding intention. Further practical and academic implications in marketing communications are discussed in this paper.     

Price Run-up in Housing Markets,Access to Bank Lending and House Prices in Korea

This paper studies the causal relationship between house prices and the access to bank lending in Kangnam, the hottest submarket in Seoul and four ‘cold’ markets which have shown relatively modest price increases. In response to the rapid escalation of house prices in Seoul, primarily in Kangnam in recent years, the Korean government implemented a number of policies to stabilize house prices. In particular, it introduced more strict limits on loan-to-value ratio and debt-to-income ratio as part of the mortgage loan qualification process in order to restrict the availability of bank lending for the housing market. The short-run influence of the bank lending on the apartment prices is clearly present in ‘cold’ markets, while it is not in Kangnam, the ‘hot’ market, even though the long-run influence is stronger in Kangnam than in the other markets. This result holds for the entire sample period (1999–2006) as well as for the subperiods before and after the introduction of lending restrictions in August, 2005. It also holds for Kangnam and Kangbuk for an extended period of 1988 to 2006. Our results suggest that in the short run the lending restriction may cause a disruption in untargeted housing markets while it has little influence on the apartment prices in the targeted market. We also find that banks have adjusted the bank lending in response to changes in the house prices in Kangnam as well as in the other markets.     

Understanding IJV performance in a learning and conflict mediated context

Determinants of international joint venture (IJV) performance are examined within the context of cross-border learning. Using a structural equation model, we test the multifaceted interactions among strategic goal congruency, national culture differences, learning and conflict. Cross-border learning is recognized as a kernel variable which is influenced by matching strategic motives, national culture differences, and conflicting relations, and which affects the performance of IJVs. In particular, we hypothesize that interpartner goal congruency and national culture differences have an indirect effect on IJV performance through cross-border learning and conflict; previous studies established their direct relationship. The test results show that congruent strategic motives and cultural similarity had a positive effect on cross-border learning, which was reinforced by learning capacity, and which in turn led to better performance. Conflicting relations between partners and heterogeneous cultural backgrounds were shown to discourage cross-border learning.