Consumer product search and purchase behaviour using various retail channels: the role of perceived retail usefulness

The purpose of this study was to examine the influences of consumers' perceptions of retail usefulness for product information search and their previous purchase satisfaction on their frequencies of product information search and product purchase behaviours for apparel products. These relationships were investigated in five retail settings – Internet shopping, catalogue shopping, television shopping, local retail shopping, and non‐local retail shopping. One hundred seventy‐six students in a US Midwestern university provided usable responses. The results of causal model analyses showed that the proposed model fits the data well for all five retail channels. Consumers who perceived a certain retail channel more useful for product information search searched for product information more frequently via that retail channel, and purchased products more often via that retail channel. Consumers who were more satisfied with apparel purchases from a retail channel purchased the products more frequently via that retail channel. Theoretical and managerial implications are discussed.     

Determinants of the components of bid-ask spreads on stocks

In this paper we show that George et al. (GKN, 1991) estimators of the adverse selection and order processing cost components of the bid-ask spread are biased due to intertemporal variations in the bid-ask spread. We use alternative estimators that correct this bias and that are applicable to individual securities, and estimate these cost components empirically using data on NYSE/AMEX stocks. As expected, our results indicate that on average adverse selection costs account for approximately 50% of the bid-ask spread, sharply higher than the estimates of 8-10% obtained by GKN for NASDAQ stocks and 21% that we obtain for NYSE/AMEX stocks using GKN's estimators. We then conduct cross-sectional regressions designed primarily to determine whether adverse selection costs vary across specialists after controlling for firm size and other factors. Consistent with previously established hypotheses, we find that adverse-selection costs vary across specialists, and that this variation is related to the number of securities that the specialist handles.     

The Accuracy of Decision Tree Induction in a Noisy Domain for Expert Systems Construction

Many studies have shown that decision tree induction methods could be used to determine rules for expert systems. Pruning techniques are often used to increase the accuracy of an induced decision tree over the instance space. While recent results of decision tree induction show that large samples may be required to induce a decision tree of small error, recent expository studies have used very small sample sizes. In such cases it is of value to obtain a posterior evaluation of the error of the induced concept. In this paper we give three methods to estimate the accuracy of a pruned decision tree. The first method assumes uniform prior distribution. For those cases where uniform prior is not appropriate, we develop a method to obtain appropriate prior using a beta distribution. Finally, we provide a general bound which requires no assumption over the instance space. These results can be used when a pruned decision tree is used to classify the original domain or another close domain.     

Examination of the Equivalent Relationship between the Two Credit Policy Decision Approaches: The Opportunity Cost and NPV Approaches

The net benefits resulting from credit policy decisions can be evaluated based on either the opportunity cost approach or the net present value (NPV) approach. It is known that the two approaches are equivalent in that they provide the same accept/reject decision. Consequently, most text books cover the opportunity cost approach which is much simpler to formulate. This paper reexamines the equivalent relationship based on the NPV models formulated under a capital budgeting framework, and shows that the equivalent relationship only holds for very restrictive conditions. Also, the discount rate for the NPV models is examined along with other models.     

The Good,the Bad and the Ugly: Employment Relations In New Non-Union Workplaces1

David Guest, who is Professor of Occupational Psychology at Birkbeck College, and Kim Hoque, who is Research Officer in the Centre for Economic Performance at the London School of Economics and Political Science, draw on a postal survey of nearly 350 new establishments to consider their propensity to unionise, to adopt practices associated with HRM, and to deliver a number of performance outcomes. Key findings are that not only were there examples of the ‘good’, the ‘bad’ and the ‘ugly’ so far as practice generally was concerned, but also that those establishments which used HRM practices extensively tended to report better results in terms of a number of both employee relations and performance outcomes.     

Market Consequences of Earnings Management in Response to Security Regulations in China*

Under the 1996‐98 security regulations in China, the accounting rate of return on equity (ROE) has to be greater than 10 percent for three "consecutive" years for a firm to qualify for stock rights offers. Despite declining economic conditions during this period, the percentage of firms reporting ROE between 10 and 11 percent is about "three" times that for 1994‐95. This unique regulatory environment provides a natural experimental setting for the empirical assessment of earnings‐management behavior and its consequences. This study examines whether listed Chinese firms manage earnings to meet regulatory benchmarks and whether regulators and investors consider the quality of earnings in their respective regulatory and investment decisions. On the basis of a sample of listed Chinese firms from 1996 to 1998, we observe that managers execute transactions involving below‐the‐line items and use income‐increasing accounting accruals to meet regulatory ROE targets for stock rights offerings. The firms that apply for, but fail to receive, regulatory approval manage earnings more significantly than do firms that receive approval and pair‐matched control firms. Our market study also suggests that investors differentiate the quality of earnings and put less value on earnings suspected of a greater degree of management. Overall, our results imply that the regulatory bodies and investors to some extent make rational adjustments for the quality of earnings.     

Internal Funds Allocation and the Ownership Structure: Evidence from Korean Business Groups

We examine the relationship between the controlling shareholder’s cash flow rights and the funds transfer in the internal capital market within Korean business groups (chaebols) during the period from 1998 to 2001. We find that the funds allocation in the firms where controlling shareholders have high cash flow rights is better aligned with the investment opportunities and therefore, more efficient than in the firms where they have low cash flow rights. This effect is stronger when they have controlling powers large enough to expropriate minority shareholders. However, during the financial crisis period, funds simply move toward the firms where controlling shareholders have high cash flow rights. The results evidence the tunneling behavior in the internal capital market within a chaebol that the ownership structure distorts the allocation of internal funds in such a way as to benefit the controlling shareholders.JEL Classification: G31, G30