Two tales of earnings management with short sales deregulation

We study the impact of short sales on accrual-based and real earnings management (EM). Based on the costs and benefits of using EM to hide negative information, we derive an analytical model showing that there are two possibilities: (1) a firm engages in less accrual-based and real EM when facing short-seller scrutiny (the informational efficiency hypothesis), or (2) a firm switches from accrual-based EM (a less sophisticated method) to real EM (a more sophisticated method), which we call the sophisticated information-hiding hypothesis. That is, there is a tradeoff between accrual-based and real EM in the presence of short sales. Using a natural experiment of the recent short sales deregulation in China, we show findings consistent with the latter reaction. Additional analysis suggests that the decrease in accrual-based EM and increase in real EM are driven primarily by firms with non-Big 10 auditors or firms not under shareholder or regulatory scrutiny. We interpret the findings as being consistent with the model prediction that for firms with weak inside and outside monitoring, the probability of detecting real EM is low, and thus the tradeoff between accrual-based and real EM prevails in the presence of short sales.     

The strange case of the Matthew effect and beauty contests: Research evaluation and specialisation in Italian universities

The paper aims to determine whether the distribution of funds that prizes the best-performing institutions relatively more has the effect of replicating the Matthew effect within them in terms of personnel policies and allocating proportionally more resources to the best departments to strengthen their output considering the prospect of future assessments. Data from the Italian public university system between 2011 and 2016 as well as the outcomes of the national evaluation of research produced between 2004 and 2010 and between 2011 and 2014 in 14 disciplinary research areas are used. The empirical evidence shows that Italian universities have tended to increase their specialisation in the research areas in which they ranked below or slightly above the national mean, revealing that they chose to try to strengthen the weak sectors through both promotions and new recruitments. The results suggest the existence of a dual policy. When the Ministry of Education, University and Research tries to foster a Matthew effect mechanism, allocating more resources to the best-performing universities, the latter seem to opt to implement a beauty contest strategy to make their weak areas converge towards the national mean. When considering the effects of the recruiting strategies following the national evaluation of research, the results indicate the existence of some Matthew effects, showing that increasing specialisation is more fruitful for the best than for the worst universities.     

平台战略内核：网络效应概念演进、测度方式与研究前沿

大量研究虽以平台战略为主题，但并未将网络效应这一平台内核特征纳入分析建模，使得研究缺乏理论深度。采用文献计量和内容分析相结合的方法对网络效应相关研究进行梳理。分析发现：网络效应研究经历了3次理论演进，即同边网络效应向跨边网络效应演进（内容）、网络效应是什么向网络效应有何影响演进（作用）、网络正效应向网络负效应演进（后果）。三大演进从网络效应测度方式和行业情境中亦可窥见。结合关键词突变分析，发现网络效应最新研究已开始从关注网络效应“后果”转向“前因”考察。结合战略管理最新研究趋势，提出未来网络效应前因研究可以从个体行为、关系嵌入、种群生态、制度环境4个层面展开。特别是随着平台模式从消费互联网向产业互联网延伸，网络效应作用和激发方式是亟待关注的研究议题。     

The role of explanations and metadiscourse in management responses to anger-reviews versus anxiety-reviews: The mediation of sense-making

Management response (MR) has become a popular intervention for hotels to manage customer reviews on social media platforms. This article introduces two important linguistic features of MR content—metadiscourse and explanation—and investigates their effectiveness in addressing negative reviews. It also examines how hotels customize MRs using different linguistic features according to different emotions in reviews. Based on a field investigation of large-scale TripAdvisor data and an experimental study, we demonstrate that explanations outperform metadiscourse for anxiety-reviews, whereas metadiscourse is more effective than explanations for anger-reviews. Moreover, their relative effectiveness is mediated by consumers’ sense-making process. Using explanations for anxiety-reviews and metadiscourse for anger-reviews facilitates sense-making, whereas using explanations for anger-reviews and metadiscourse for anxiety-reviews impedes it. This research enriches current understanding of MR effects and provides the hospitality industry with important guidelines for formulating effective MRs and social media marketing practices.     

Effect of disruptive customer behaviors on others' overall service experience: An appraisal theory perspective

Drawing upon the appraisal theory, this study proposes and tests a conceptual model to delineate customers’ evaluative process of disruptive customer behaviors in a shared service environment (e.g., theme parks, airplanes, restaurants). Using a scenario-based online experiment, two sets of data were collected from U.S. customers and analyzed by a series of regression analyses. Findings suggest that customers go through a systematic evaluative process of primary appraisal (e.g., congruence and relevance) and secondary appraisal (e.g., cognitions and emotions), which results in the development of coping behaviors (e.g., active and passive coping). Cognitions are found to have direct influences on passive and active coping. Perceived powerlessness, perceived betrayal, and perceived identity threat are identified as critical cognitions. Negative emotions are found to result in active coping. Primary appraisal (e.g., congruence and relevance) either directly affects coping behaviors, or indirectly through cognitions and negative emotions. Theoretical and managerial implications are further elaborated.     

The fallacy of the heavy buyer: Exploring purchasing frequencies of fresh fruit and vegetable categories

‘Avocado lover,’ ‘banana lover,’ or ‘berry lover’ – these words are starting to dominate the contemporary marketing campaigns for fresh fruit and vegetable categories. Such campaigns assume that there are sizable buyer segments who purchase a particular fresh category more frequently, who are contributing a larger portion of sales, and who will continue to do so into the future. Yet, an established body of empirical evidence from consumer packaged goods (CPG) categories suggests that these assumptions could be false. The current study empirically examines fresh category purchasing behavior (through a large Nielsen US panel data) by applying three known models: the Negative Binomial Distribution, the Pareto share, and the stability over time analysis (buyers and sales contribution). This study compares the results and finds that despite many differences between fresh and CPG categories, buyers' purchasing behavior follows the same established benchmarks patterns as those observed in CPG contexts. There are many more infrequent or light buyers than heavy ‘lovers’; the heavy buyers contribute roughly 60% of sales; they are purchasing less frequently, and contributing fewer sales as time goes by. These findings carry important implications for marketers, retailers, and farmers of fresh categories. Specifically, the results show which marketing campaigns (i.e., those highly targeted at ‘lovers’ or those with a mass marketing appeal) are better grounded in the empirical evidence about buyer behavior which has the highest probability of increasing consumption.     

Does customer incivility undermine employees’ service performance?

This study extends the growing body of research on customer incivility by examining its impact on employees’ in-role and extra-role service performance in the hospitality industry. Using a sample of 307 employee–supervisor dyads in nine hotels in Zhuhai City, China, this research examined the impact of customer incivility along with negative affectivity and hostile attribution bias on in-role performance and extra-role performance, particularly proactive customer service performance (PCSP). The results demonstrate that, while customer incivility negatively influenced PCSP, it did not impact in-role performance. Furthermore, the effect of customer incivility on PCSP was mediated by negative affectivity. Additionally, hostile attribution bias significantly moderated the relationship between customer incivility and negative affectivity, as well as the indirect relationship between customer incivility and PCSP through negative affectivity.     

The impact of knowledge hiding on targets’ knowledge sharing with perpetrators

Using a sequential mixed-methods approach, this study explored how knowledge hiding (KH) targets react to perpetrators in the hospitality industry. Study 1 entailed in-depth interviews of 20 employees from 13 hotels. Findings indicate that KH influences knowledge transfer behavior through negative emotions. Moreover, individual personality and motivation, team and interpersonal factors, job characteristics, and KH characteristics can moderate this effect. In Studies 2 (n = 54) and 3 (n = 118), two scenario-based experiments reveal that KH negatively affects targets’ knowledge sharing (KS) with perpetrators directly and indirectly through negative emotions. In Study 4, the results of a survey from 475 employees indicate that when the need for affiliation of employees and task interdependence is high, the negative effect of negative emotions on KS with perpetrators is weaker. This study advances the literature on KH by offering a sound theoretical treatment of emotional concerns and the interaction between knowledge seekers and knowledge hiders.     

游说、权力分配与制度变迁——以1978年中国农村土地产权制度变迁为例

本文尝试将游说和权力分配引入到中国农村1978年前后土地产权制度变迁的模型化分析中,利用新旧制度下生产收益差额的函数表达式,刻画制度变迁成败及地区差异性的临界条件,揭示制度变迁中游说、权力分配的作用.研究表明,在存在游说和制度转换成本时,制度创新发生和持续下去的条件受农村干部的合法收益、制度转换成本和农民的收益折现率等变量的影响.在既定权力分配格局下,贫困农民和农村干部组成的制度创新团体,可以通过赎买实现其地方性政策在全国层面的制度化认可,此制度变迁路径是农民、农村干部和中央政府的最优选择,从而说明由不同内容的地方性政策合并形成的中央制度是有效率的.游说、权力分配可以影响制度变迁的方向和进程,并使其表现出不同的变迁结果和地区间的差异性.     

The right to food in historical perspective

The right to food is the most fundamental of economic rights. The author disagrees with pessimists who claim that economic rights will never be ensured due to opposition from those who take advantage of the status quo, and believes that social transformations can occur, as history has shown. After outlining the historical background to the right to food, he identifies processes of deprivation in the 1980s, such as the impact of pricing policies, and food insecurity among the urban poor. Finally he outlines some recommendations to Third World governments seeking to ensure the right of food to its peoples.