Did the value premium survive the subprime credit crisis?

We provide evidence that value stocks significantly underperformed growth stocks during the subprime credit crisis, despite a positive value premium before the crisis. The reversal in the value premium concentrates in financially constrained firms, suggesting it was due to the adverse influence of the crisis rather than confounding effects. These findings are robust to alternative financial constraint proxies and asset pricing models. The observation that value stocks are vulnerable to losses during extreme downturns like the crisis is consistent with them being riskier than growth stocks. Our findings have implications for the academic debate on the underlying cause of the value premium and for investors on the profitability of value investing strategies.     

Non-cooperative Tacit Collusion,Complementary Bidding and Incumbency Premium

This article focuses on testing the intuitive idea of Folk Theorem in a repeated game, and the existence of complementary bidding and incumbency premium. Through careful analysis of bidding behaviors in the Dallas-Ft. Worth (DFW) school-milk industry, I find that cooperation based on rationality and repetition satisfies the conditions for a kind of Folk Theorem. The data also strongly suggest that all major milk processors are engaged in complementary bidding to allocate consumers geographically and command statistically significant incumbency premia in their incumbent districts. Even if the equilibrium outcomes are largely non-cooperative, some pieces of circumstantial evidence uncovered in this school-milk market study may be sufficiently convincing to enable dispensing with evidence of actual communication.     

Which stock price component drives the Amihud illiquidity premium?

We examine the components of stock prices that play a key role in the pricing of the Amihud (2002) illiquidity measure. We first decompose the stock price series into permanent and transitory components and then construct the half-Amihud illiquidity measures on the days of positive and negative permanent price returns. We find that the transitory half-Amihud measure on the days of negative permanent price returns plays an important role in pricing the Amihud illiquidity even after controlling for the turnover ratio. This finding contrasts with that of Lou and Shu (2017) in that both the trading volume component and transitory price impact, drive the Amihud illiquidity premium.     

How psychological and contextual factors contribute to travelers’ propensity to choose green hotels?

Despite the growing popularity of green hotels, there remains a dearth of research examining travelers’ intentions to choose green hotels. The study addresses this research gap by developing and testing an integrated model of green hotel behavior in an emerging market of India. We use a sequential approach of SEM and fuzzy set qualitative comparative analysis on 347 responses collected from Indian travelers to gain a more in-depth understanding of the role of biospheric value, green trust, willingness to pay premium, attitude, subjective norms, and perceived behavioral control in determining green hotel intentions. The findings show that presence of green trust is a significant and necessary condition for green hotel choice. Additionally, absence of willingness to pay premium, biospheric value, attitude, and subjective norm were found to deter travelers from choosing green hotels. These findings offer unique insights for managers in developing marketing strategies to enhance travelers’ green hotel adoption.     

FDI and the skill premium in a North–South global economy

The effect of FDI from North to South countries on the skill premium of both groups of countries is examined. The lower wage of unskilled labor in the South induces the Northern firms to shift the unskilled labor intensive production processes in the South. FDI occurs in an unskilled labor intensive activity, but in a skill-intensive sector. It is shown that this leads to an increase in the skill premium of skilled labor in both North and South.     

基于中部六省名牌比较的山西省名牌问题思考

本文认为,名牌产品是质量和效益的集中体现,代表着一个国家和地区的经济竞争能力和科技发展水平。山西省经济整体发展水平与名牌现状基本上一致,不论在中部还是全国都排名靠后。山西“十一五”规划第一次提出名牌战略问题,将为山西名牌建设和经济发展提供一个良好的政策平台;强调要着力抓好转变经济增长方式和加快推进产业结构调整两项战略任务,将为名牌建设搭建一个经济平台。山西省的经济命脉和最大的支柱产业煤炭,到目前为止只有一枚中国驰名商标。因此,山西省今后要努力在煤的品种和衍生产品上打出名牌,同时要推进产学研一体化,着力提高企业持续的技术创新能力,为名牌建设提供一个科技平台。