The Combination Strategy to Optimal Target Selection and Offer Segmentation in Direct Mail

The optimization of direct mail activities generally focuses separately on the issues of target selection and the selection of the strongest offer. In this paper we propose a combination strategy of the two practices through a response model which makes target selection specific to an offer. This combination strategy promises significantly higher profits than does the typical two-stage strategy.     

Quantity and quality of information and SME financial structure

We test whether the amount and/or quality of financial statement information affects the financial structure of small and medium-sized enterprises (SMEs). Belgian SMEs are used, because there are important differences in disclosure and audit requirements among them. Consistent with the traditional view that asymmetric or incomplete information restricts access to external funds, our results indicate that both the amount and quality of financial statement information are positively related to SME leverage. In addition, we find that leverage is positively related to asset structure, growth (prospects) and median industry leverage, and negatively related to firm age and profitability.     

Corporate taxation and the choice of patent location within multinational firms

Corporate patents are important assets in the modern economy, where knowledge is highly valued. In many multinational enterprises (MNEs), they constitute a major portion of the business's value. The intra-firm transfer pricing process for patent-related royalty payments is moreover often highly intransparent and patents thus represent a major source of profit shifting opportunities between multinational entities. For both reasons, MNEs have an incentive to locate their patents at low-tax affiliates to minimize the corporate tax burden. The purpose of our paper is to empirically test for this relationship by exploiting a unique dataset that links information on patent applications to micro panel data for European MNEs. Our results suggest that the corporate tax rate (differential to other group members) exerts a negative effect on the number of patent applications filed by a multinational affiliate. The effect is quantitatively large and robust to controlling for firm size and unobserved heterogeneity between the entities. The findings moreover prevail if we account for royalty withholding taxes and binding ‘Controlled Foreign Company’ rules.     

The legal framework and initiatives for promoting safety in the United Arab Emirates

Injury is a leading cause of morbidity and mortality in the United Arab Emirates (UAE). The UAE is a rapidly developing country with fast economic growth, demographical and environmental changes that are associated with new hazards emerging at a similar pace. The UAE as a federal entity has federal and local systems responsible for safety policy, regulations and enforcement. To set priorities for safety promotion and injury prevention, it is necessary to have data on the most frequent external causes of injury and the main individual, equipment and environmental risk factors that contribute to injury. However good quality data for injury prevention are scarce. The aim of this paper is to describe the scale of injury as a public health problem in the UAE, and the development of safety policies, regulations and promotion efforts with special emphasis on traffic, occupational and child safety.     

Profiling consumers of own brands and national brands using human personality

Traditional methods of market segmentation based on demographic variables have shown mixed results in differentiating between those who are more likely to buy own brand products and those who prefer national brands. Taking advantage of the emerging convergence in human personality research on the Big Five dimensions, we focus on the potential of human personality as a method of identifying different customer segments. Two types of own brands are considered, those labelled with the retailer's corporate name and those labelled with a name independent of the retailer. Two product categories are included, cola as an example of a low-involvement product and cosmetics as an example of a high-involvement product. The personality profiles of buyers of these and the leading national brands in each category are compared. Stepwise regression is used to identify those aspects of shopper personality that predict purchase rates of all products. Individuals who are more ‘open to experience’ report higher purchases of corporately named products, while individuals who are more ‘extrovert’ report higher purchases of national brands. Those reporting higher rates of purchase for own brands with independent names tend to be more ‘agreeable’ and ‘extrovert’. The positioning of the three types of brands against the 5 dimensions of human personality is illustrated using correspondence analysis. The clear potential to use human personality to segment and profile markets for own brands and national brands is discussed.     

Green Public Procurement: A Neglected Tool in the European Green Deal Toolbox?

Intereconomics - Public procurement amounts to around 14% of European Union GDP and, given this size, could well represent an important tool to foster the green transition. However, green public...     

Fan-centric social media: The Xiaomi phenomenon in China

In this highly competitive century, social media offers both opportunities and challenges. The concept of social media is top of mind for many entrepreneurs today. Fans are assuming an increasingly active role in co-creating marketing content with companies and their respective brands. Based on the Xiaomi success story in China, we provide a framework for building the power of the fan base and propose a new fan-centric social media business model. We examine the best practice case study of an emerging company's successful efforts to leverage social media in order to reach an important audience of young consumers. Thereafter, we conclude with several lessons related to the integration of social media into a new firm's operation strategy. We strongly recommend that businesses, and especially startups, make good use of powerful social media to develop a business model with fan demand as the core. This is what we call the ‘fan-centric’ social media business model.     

Technik für ein langes Leben

Megatrend Ambient Assisted Living - Im Jahr 2035 wird in Deutschland jeder dritte Mensch ?lter sein als 60 Jahre. Die Nachfrage nach Dienstleistungen und unterstützenden Systemen wird steigen. Technische Assistenzsysteme für Pflegende, Pflegebedürftige und deren Angeh?rige sollen das Leben im Alter sicherer und bequemer machen.     

Simple and Painless? The Limitations of Spillover in Environmental Campaigning

The comfortable perception that global environmental challenges can be met through marginal lifestyle changes no longer bears scrutiny. The cumulative impact of large numbers of individuals making marginal improvements in their environmental impact will be a marginal collective improvement in environmental impact. Yet, we live at a time when we need urgent and ambitious changes. An appeal to environmental imperatives is more likely to lead to spillover into other pro-environmental behaviours than an appeal to financial self-interest or social status.

NO‐ARBITRAGE PRICING UNDER SYSTEMIC RISK: ACCOUNTING FOR CROSS‐OWNERSHIP

We generalize Merton’s asset valuation approach to systems of multiple financial firms where cross‐ownership of equities and liabilities is present. The liabilities, which may include debts and derivatives, can be of differing seniority. We derive equations for the prices of equities and recovery claims under no‐arbitrage. An existence result and a uniqueness result are proven. Examples and an algorithm for the simultaneous calculation of all no‐arbitrage prices are provided. A result on capital structure irrelevance for groups of firms regarding externally held claims is discussed, as well as financial leverage and systemic risk caused by cross‐ownership.