Aesthetically (dis)pleasing visuals: A dual pathway to empathy and prosocial behavior

This research investigates how the combination of aesthetically appealing and unappealing visual elements in marketing communications can motivate prosocial behavior. Prior literature has investigated the effectiveness of aesthetically pleasing or displeasing visuals separately and has reported mixed results. Based on the notion that empathy is a key driver of prosocial behavior, the current work first makes a theoretical distinction between two antecedents of empathy—identification and perceived need—and then illustrates how these antecedents are evoked by pleasing and displeasing visual elements, respectively. The authors show that the combination of a pleasing individual (human or object) and a displeasing group is particularly effective in evoking identification and perceived need, and therefore empathy. The elevated empathy, in turn, motivates prosocial behavior. Five main experiments in the field, lab, and online, as well as a pre-study and two post-studies, provide supportive empirical evidence. Implications for theory and practice are discussed.     

International experience,growth aspirations,and the internationalisation of new ventures

The aim of this paper is to investigate the impact of the breadth and depth of international experience on subsequent new venture internationalisation and to what extent growth aspirations moderate these relationships. Drawing upon previous literature on international new ventures, human capital and growth aspirations, we tested our hypotheses using longitudinal data from the Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE). Our results support the hypothesis that breadth of international experience has a positive impact on internationalisation. Depth of international experience on its own does not predict subsequent internationalisation activities. However, results support our hypothesis that the interplay of a high growth aspiration and depth of international experience has a positive effect on internationalisation activities. Our study contributes to the research stream on new venture internationalisation by distinguishing between breadth and depth of international experience, suggesting that these dimensions are differentially linked to internationalisation. Further, we test for interaction effects between international experience and growth aspirations. We thereby add to the knowledge by illustrating that some types of human capital are only utilised when accompanied by growth aspirations.     

Ruin probabilities under general investments and heavy-tailed claims

In this paper, the asymptotic decay of finite time ruin probabilities is studied. An insurance company is considered that faces heavy-tailed claims and makes investments in risky assets whose prices evolve according to quite general semimartingales. In this setting, the ruin problem corresponds to determining hitting probabilities for the solution to a randomly perturbed stochastic integral equation. A large deviation result for the hitting probabilities is derived that holds uniformly over a family of semimartingales. This result gives the asymptotic decay of finite time ruin probabilities under sufficiently conservative investment strategies, including ruin-minimizing strategies. In particular, as long as the insurance company invests sufficiently conservatively, the investment strategy has only a moderate impact on the asymptotics of the ruin probability.     

Relations between communist and third world countries

Despite the unproportionately low level of Soviet economic assistance, Soviet influence in the Third World is quite considerable at present. Taking this fact as a starting point the following article examines the principles guiding relations between communist and developing countries.     

Do auditors constrain intertemporal income shifting in private companies?*

This study investigates the association between private company auditing and intertemporal income shifting. Using a large reduction in the Finnish corporate tax rate as a strong incentive for income shifting and financial statement data coupled with proprietary information from the tax authorities, we analyse accruals and cost stickiness of small private companies. Our results reveal significant differences in accrual income shifting between audited and unaudited companies, but only among companies that on average could anticipate the tax reduction the most. Further, we find auditors to restrict sticky selling, general, and administrative cost behaviour that we hypothesise is associated with illegal actions. Additional tests expose a nontrivial number of incorrectly unaudited companies which are the ones mostly associated with income shifting. Taken together, our study highlights the effects of audit exemption and the importance of enforcement while also suggesting that the audit process is value adding for the tax authorities.     

LRN 2016 SPECIAL – high capacity vehicles and modal shift from rail to road: combining macro and micro analyses

ABSTRACT

This paper addresses a road transport policy of allowing high capacity vehicles (HCVs) on the roads. The purpose is to examine the effect reduced road transport costs from HCVs can have on a modal shift. Two studies of HCV implementation in Sweden were combined. A micro-based case study modelled the distribution network of a major retailer in scenarios based on actual cost and flow data. A macro analysis was conducted of the cross-elasticity between rail and road combined with detailed price changes for lorries considering the product characteristics in different industries. The results show the long-term effects of HCVs on the modal shift for heavier, and heavier and longer vehicles. The combined approach triangulates the results and highlights the effects of logistics decision-making, transport network characteristics, and time. It emphasises linkages between modal shift and road transport efficiency, price reductions, geographical characteristics, product types, train organisation, and the capacity of HCVs.     

Packaging logistics in supply chain practice – current state,trade-offs and improvement potential

Packaging affects the logistical and environmental efficiency of supply chains. The purpose is to increase knowledge of the current state, trade-offs and improvement potential of packaging logistics in supply chain practice. The research is based on 22 cases, each of which consists of supply chain mapping and structured interviews with three supply chain actors (manufacturer, distributor and retailer). The paper identifies and explains improvement areas, trade-offs and gaps in packaging systems from a supply chain perspective for the whole packaging system, each packaging level and each actor. The results highlight a supply chain potential of better incorporating the packaging system requirements from actors not responsible for developing or selecting packaging. The paper discusses models for cost and benefit sharing and for identification and decision-making about trade-offs in packaging systems. Companies should collaborate, apply an integrated approach and find new approaches to integrate customers and suppliers into the packaging development process.