Corporate Social Responsibility and Firm Value: Disaggregating the Effects on Cash Flow,Risk and Growth

This paper investigates the effect of corporate social responsibility (CSR) on firm value and seeks to identify the source of that value, by disaggregating the effects on forecasted profitability, long-term growth and the cost of capital. The study explores the possible risk (reducing) effects of CSR and their implications for financial measures of performance. For individual dimensions of CSR, in general strengths are positively valued and concerns are negatively valued, although the effect is not universal across all dimensions of CSR. We show that these valuation effects are principally driven by CSR performance associated with better long run growth prospects, with an additional minor contribution made by a lower cost of equity capital.     

Fundraising and the Elderly: A Content Analysis

Direct marketing, as an avenue for fundraising, provides nonprofit organizations with the ability to fulfill their missions and donors the opportunity to support a worthy cause. There are concerns, however, when sophisticated marketing practices target potentially at-risk consumers. Demographic studies clearly show that the percentage of elderly Americans, aged 65 and over, is rising with a corollary increase in the incidence of Alzheimer’s disease and dementia. These facts suggest this may be a group whose defining characteristics make them especially vulnerable. This exploratory study identifies and qualifies persuasive tactics used by several linked nonprofit organizations targeting one elderly Alzheimer’s victim over a 14-month period. The carefully designed direct mail solicitations utilize appeals that engender low elaboration likelihood and peripheral route processing. In addition, there is some evidence that even those appeals that might encourage high elaboration likelihood become heuristic cues for individuals with cognitive decrease. Taken together, the incorporation of multiple tactics within each solicitation, an approach referred to here as shotgunning, may have significant implications for future research and practice in communication, ethics, and public policy.     

Pasture-Raised Milk: The Market for a Differentiated Product

Pasture-raised (PR) milk is a specialty product that could feasibly be produced by economically challenged dairy farms. Our goal was to profile the milk market using an internet survey to identify potential future consumers of PR milk. There were 611 U.S. respondents that were divided into three categories as types of milk consumers: those who only purchased conventional milk in the past year (CONV), those who only purchased non-conventional milk (such as organic, PR, or natural milk) in the past year (NONCONV), and those who purchased both conventional and non-conventional milk in the past year (MIXED). MIXED and NONCONV agreed or strongly agreed with PR milk benefits substantially more than CONV. PR milk was also valued by NONCONV and MIXED in purchasing intentions, but not nearly as much as organic milk. In addition, CONV valued PR milk in purchasing intentions more than organic milk. Results suggest that PR milk can be successfully positioned to appeal to MIXED and perhaps some CONV, potentially increasing sales or market share.     

Generic Competition in the US Pharmaceutical Industry

We develop a simultaneous equations estimation framework to understand the interactions among generic entry, prices, and market shares. We base our estimates on a panel data sample of 40 brand‐name drugs that first experienced generic competition during the period July 1992–January 1998. We find that generic share and price are simultaneously determined, while the number of generic entrants is a key determinant of generic market share and the generic‐to‐brand price ratio. In addition, we find generic competition to be particularly intense for blockbuster drugs, which experience significantly more generic entrants, price erosion, and generic penetration than other drugs.     

Beyond organic: consumer interest in new labelling schemes in the Central Coast of California

Producers are interested in developing labelling schemes that go ‘beyond organic’ to address ethical criteria not included the US Department of Agriculture organic standards. However, consumer interests in labels that are not as widely available as organic in the market are poorly understood. This study reports results of focus‐group research and a survey of 1000 households in the Central Coast region of California to determine which standards consumers are most interested in supporting through their purchases. The results indicate that standards for the humane treatment of animals have the highest level of support, followed by a standard for local origin, and for a living wage for workers involved in producing food. Logistic regression analysis suggests that humane is more likely to be chosen by women, European‐Americans, younger people and frequent organic purchasers. Locally grown was preferred by older people and households with children. A living wage for workers involved in food production was selected more often by Latinos. Although a characterization of trends is not possible due to a cross‐sectional design, the results suggest some potential directions for producers in this region who are willing to supply unmet consumer demands for ethical criteria. There are three basic directions that new and emerging labels may take with respect to US national organic standards: (1) separate from organic; (2) institutionally separate, but tightly integrated with organic; and (3) intended to supplant organic. The success of each of these strategies will depend on how much trust consumers continue to place in government oversight of organic food. The study results also suggest that the movement for a more sustainable food system would benefit from devoting more attention to issues of animal rights and social justice.     

Anytime, Anyplace Learning in an Online Graduate Professional Degree Program

This paper describes experiences at Drexel University with use of an Asynchronous Learning Network to provide an online graduate degree for information systems professionals. Students in this program never gather for face-to-face classes but students and faculty engage in an active learning experience online. This paper provides an overview of the project's fundamental strategies, presents some evaluation data relevant to these strategies, and concludes with some observations based on the project experience.     

Cross-border banking,credit access,and the financial crisis

We study the sensitivity of credit supply to bank financial conditions in 16 emerging European countries before and during the financial crisis. We use survey data on 10,701 applicant and non-applicant firms that enable us to disentangle effects driven by positive and negative shocks to the banking system from demand shocks that may vary across lenders. We find strong evidence that firms' access to credit was affected by changes in the financial conditions of their banks. During the crisis firms were more credit constrained if they were dealing with banks that experienced a decline in equity and Tier 1 capital, as well as losses on financial assets. We also find that access to credit reflects the balance sheet conditions of foreign parent banks. The effect of positive and negative shocks to a bank is greater for riskier firms and firms with fewer tangible assets.