Universal Banking, Asset Management, and Stock Underwriting

This paper examines institutions that underwrite IPOs and have asset management divisions from 1993 through 1998. We provide evidence that these firms use asset management funds as vehicles to help them earn more equity underwriting business. We also show that asset managers affiliated with IPO underwriters use their superior information about their own institution's IPOs to earn annualised market adjusted returns 7.6% above asset managers of firms who did not underwrite the IPO. Superior future returns by asset managers who trade affiliated IPOs are dependent on the information environment for the IPO and the underwriter reputation rank.     

Rural tourism — meeting the challenges of the new South Africa

Rural tourism in South Africa has undergone fundamental change since the advent of political democracy in 1995. Previously perceived as a ‘white man's thing’, rural tourism is increasingly finding a home amongst South Africa's formerly marginalised rural communities. The country has considerable potential in attracting tourists in search of new, exciting experiences in areas of unexploited natural beauty and rich cultural resources. The concept of rural tourism has mushroomed to include adventure tourism activities, cultural tourism and, lately, a new phenomenon in rural communities known as ‘township tourism’. There are, however, substantial challenges to be overcome if the rural tourism sector is to achieve its goals. These include a lack of capacity at local government level, the difficulties involved in operationalising community‐based rural tourism and the dearth of entrepreneurial expertise, management skills and capital with which to expand the rural tourism infrastructure. Copyright © 2004 John Wiley & Sons, Ltd.     

Have the tax benefits of debt been overestimated?

We re-examine the claim that many corporations are underleveraged in that they fail to take full advantage of debt tax shields. We show prior results suggesting underleverage stems from biased estimates of tax benefits from interest deductions. We develop improved estimates of marginal tax rates using a non-parametric procedure that produces more accurate estimates of the distribution of future taxable income. We show that additional debt would provide firms with much smaller tax benefits than previously thought, and when expected distress costs and difficult-to-measure non-debt tax shields are also considered, it appears plausible that most firms have tax-efficient capital structures.     

Paradoxical implications of personal social media use for work

New information and communication technologies can have paradoxical implications: they may be liberating and constraining at the same time. This field study examines the direct implications of personal social media use for work on employees’ autonomy and work pressure, and the indirect effects on exhaustion and work engagement. A total of 364 employees of three large multinationals responded to a web‐based survey. Results demonstrate the presence of a paradox, as social media for work is associated positively with both autonomy and work pressure. SNS use has indirect effects on exhaustion and engagement through autonomy, and on exhaustion through work pressure, but not on engagement through work pressure. Furthermore, one's responsiveness to colleagues’ communication decreases the relation between use and autonomy, although not between use and work pressure. Overall, employees seem more likely to be burdened by the use of social media for work than benefit from it, but managing one's responsiveness can help.     

Bargaining rationale for cooperative generic advertising*

The beggar-thy-neighbour aspect of commodity advertising means that benefits to one commodity from advertising come at the expense of other commodities. The effect can be mitigated by cooperation among groups as shown by Alston, Freebairn and James (AFJ). A drawback to AFJ's analysis is that some cooperative outcomes require side payments from one producer group to another. This paper offers a bargaining solution as an alternative to cooperation in the case where cooperative side payments would be needed. We show that while bargaining without side payments is not as effective as cooperation at reducing beggar-thy-neighbour effects, it is a welfare improving alternative to non-cooperation and is likely more practical in many situations.     

Connecting With Celebrities: How Consumers Appropriate Celebrity Meanings for a Sense of Belonging

We propose that consumers appropriate brand symbolism that comes from celebrity endorsements to construct and communicate their self-concepts. We also argue that consumers with high need to belong (NTB) look to celebrities to a greater extent than those who have lower needs to belong, because high-NTB consumers are more likely to look to celebrities for cues about which brands may aid these consumers' attempts to meet their affiliation needs. High-NTB consumers are also prone to develop one-sided (parasocial) relationships with celebrities, and these parasocial relationships mediate the celebrity endorsement effect on self–brand connections. Three studies support these proposed relationships. Furthermore, the third study also manipulates the degree to which the celebrity's image matches that of the brand being advertised, revealing that a symbolic match between the celebrity image and brand image is important for consumers who do not form parasocial relationships with celebrities (i.e., low-NTB consumers).     

Co-producing with consumers: how varying levels of control and co-production impact affect

As companies continue to utilize co-production (customer participation in product or service creation) strategies with consumers, academic researchers have expanded their study on issues related to co-production. However, research has been scant on the issue of control in such situations. The underlying belief in increasing customer participation and involvement is it increases customers’ perceived control, thereby enhancing their experience and outcomes; this belief creates the necessity for further examination of control in co-production environments. This study examines consumers’ affective responses to differing levels of three types of control (cognitive, behavioral, and decisional) in low and high co-production conditions. Using two experimental contexts and one survey study, the results show increasing cognitive control will increase affect when co-production is low. Behavioral control can negatively or positively influence affect depending on specific situational contexts and perceptions of customization in low co-production conditions. Lastly, decisional control is found to be an important positive contributor to affect regardless of co-production level. Theoretical and practical implications are discussed.     

A social networks approach for strengthening participation in technology innovation: lessons learnt from the Mount Elgon region of Kenya and Uganda

Participatory approaches to agricultural technology development have not yet fully lived up to their promise to incorporate farmer knowledge. This paper introduces a social networks approach (SNA) to improve participatory research processes for co-innovation. Drawing upon findings from a collaborative project developing conservation agricultural production systems for smallholders in western Kenya and eastern Uganda, the paper explores farmer support networks to improve participation in technological innovation and development. Key research themes include: identifying farmers’ agricultural production networks; the local articulation of agricultural production networks and mindsets; using networks to facilitate meaningful participation in technology development; and disadvantages and advantages of using a social network approach. The introduction of SNA improved participatory research by building external and internal legitimacy for determining who participates, discouraging participatory attrition, and providing a meaningful forum for participation of all stakeholders. As a result, the introduction of SNA is demonstrated to show strong promise for improving processes of participatory technology development in agriculture.     

JobKeeper: An Initial Assessment

We present details of the design and implementation of the 2020–2021 JobKeeper program and review the literature on its impacts. JobKeeper stimulated the macroeconomy and restrained job loss in the downturn. But because the program was not narrowly targeted, the cost per job saved was high and the impact most likely regressive. However, it would not have been possible to devise and implement a more targeted program in the available time, and as it was, JobKeeper was arguably implemented later than needed for maximum effectiveness. We therefore recommend that Australia consider establishing a short-time work program for use in future recessions.