Volunteers as tour guides: a stakeholder–agency theory case study†

The use of volunteer tour guides by commercial tour operators has attracted little scholarly attention. This paper presents a qualitative case study of a commercially organized tour led by volunteer tour guides, and explores how the guides' status as volunteers shaped experiences of tour customers. Analysis, underpinned by stakeholder–agency theory, highlighted a range of service delivery issues that emerged during the tour. Theoretical and applied implications are discussed, with particular reference to how tour operators might negotiate the vexed issue of managing service delivery quality in the context of tour services paid for by customers, yet delivered by volunteers. Further research is required to explore potential differences in the willingness of tour operators to invest in human resource development initiatives for paid versus volunteer tour guides, along with possible flow-on implications for tour guides' role performance and customer satisfaction.     

A Bayesian encompassing test using combined value-at-risk estimates

The Value at Risk (VaR) is a risk measure that is widely used by financial institutions in allocating risk. VaR forecast estimation involves the conditional evaluation of quantiles based on the currently available information. Recent advances in VaR evaluation incorporate conditional variance into the quantile estimation, yielding the Conditional Autoregressive VaR (CAViaR) models. However, the large number of alternative CAViaR models raises the issue of identifying the optimal quantile predictor. To resolve this uncertainty, we propose a Bayesian encompassing test that evaluates various CAViaR models predictions against a combined CAViaR model based on the encompassing principle. This test provides a basis for forecasting combined conditional VaR estimates when there are evidences against the encompassing principle. We illustrate this test using simulated and financial daily return data series. The results demonstrate that there are evidences for using combined conditional VaR estimates when forecasting quantile risk.     

The impact of innovation training on successful outcomes in public–private partnerships

Public–private partnerships (PPPs) are increasingly seen as a way of innovating the production and management of public services. However, the question of what drives innovation in partnerships has so far received only limited attention. Drawing on network governance and collaborative innovation literature, this article presents the findings from a survey among 260 Danish PPPs. The study shows that while innovation training has a significant effect on achieving innovation in PPPs, factors such as trust and institutional support only affect some innovation types. The findings demonstrate the importance of individual innovation skills and a differentiated understanding of innovation outcomes in PPPs.     

Testing Fama–French’s new five-factor asset pricing model: evidence from robust instruments

Fama and French (FF, 2015) propose a five-factor asset pricing model that captures size, value, profitability and investment patterns. The primary purpose here is to further investigate this new model using an improved GMM-based robust instrumental variables technique. A further purpose is to explore the relationship among the FF factors and the Pástor–Stambaugh (PS, 2003) liquidity factor. We conclude that except for the market factor, all of the factors including liquidity are not significant at even the 5% level using our GMM approach for almost all of the FF 12 sectors.     

The Feldstein Horioka puzzle in E7 countries: Evidence from panel cointegration and asymmetric causality analysis

In this study, the Feldstein–Horioka (FH) puzzle were investigated by the panel cointegration and causality methods over the available period of 1989–2015 for the E7 countries. Westerlund panel cointegration test with multiple structural breaks, and Westerlund and Edgerton regime panel cointegration test results indicate that there is a cointegration relationship between the two variables in the long term. The long-term FH panel coefficients obtained from common correlated effects mean group (CCMEG) and augmented mean group (AMG) estimators are 0.792 and 0.758, respectively. The findings of the Kónya bootstrap panel Granger causality test show that there is no causality relationship between the two variables in the short term. However, in the results of the asymmetric causality test, unidirectional and statistically significant causality is going from the negative shocks of domestic saving to the positive shocks of investment for China, Indonesia, Mexico and Turkey. The overall results show that the FH puzzle is valid for the E7 countries.     

Forward-looking portfolio selection with multivariate non-Gaussian models

In this study, we suggest a portfolio selection framework based on time series of stock log-returns, option-implied information, and multivariate non-Gaussian processes. We empirically assess a multivariate extension of the normal tempered stable (NTS) model and of the generalized hyperbolic (GH) one by implementing an estimation method that simultaneously calibrates the multivariate time series of log-returns and, for each margin, the univariate observed one-month implied volatility smile. To extract option-implied information, the connection between the historical measure P and the risk-neutral measure Q, needed to price options, is provided by the multivariate Esscher transform. The method is applied to fit a 50-dimensional series of stock returns, to evaluate widely known portfolio risk measures and to perform a forward-looking portfolio selection analysis. The proposed models are able to produce asymmetries, heavy tails, both linear and non-linear dependence and, to calibrate them, there is no need for liquid multivariate derivative quotes.     

How to create genuine happiness for flight attendants: Effects of internal marketing and work-family interface

Drawing on the combination of affective event theory and the job demands–resources model, this paper advances research on the link between organization-related predictors and individual-related outcomes through a psychological mechanism in the aviation industry. Specifically, this study makes a novel contribution as the first to quantitatively explore how internal marketing helps build happiness by changing flight attendants' work-family interface. Using a sample of 142 flight attendants working in airline companies based in Asian countries, our results indicate that communication, welfare systems, training, and management support are directly associated with happiness and indirectly associated with happiness via work-family facilitation. Communication, welfare systems, and management support can shape cabin crews' happiness via decreased work-family conflict. However, compensation is not found to influence flight attendants’ happiness. Practical implications and potential future research avenues also are discussed.     

Does tunneling explain the sensitivity of executive compensation to other member firms’ performance?

This study examines how executive compensation is set when a firm is a business group member. Using Korea's unique setting of family-controlled business groups, we find that a member firm's executive cash compensation is positively linked to the stock performance of other member firms as well as its own. Further analyses reveal that this positive link is consistent with the hypothesis that corporate managers are rewarded for their decision to benefit the controlling family at the expense of the firm they manage. Specifically, we find that the sensitivity of executive pay to other member firms’ performance exists only in respect to firms in which the cash flow rights of the controlling family exceed those of the subject firm. We also find that this sensitivity is strengthened if the controlling family's control–ownership disparity in the subject firm is above the sample median.     

International trade,pollution, and economic structure: evidence on CO2 emissions for the North and the South

This study investigates the mechanics of international trade and CO₂ emissions in two blocs of countries (‘North’ and ‘South’) by analyzing data from the World Input–Output Database. We adapt the Miyazawa technique to estimate the linkages between international trade and the environment at a global scale. Therefore, this study is in line with the idea of highlighting the role of feedback effects as well as the nature and extent of extra-regional influences on an economy in response to an additional stimulus. This is a contribution that, to our best knowledge, has not yet appeared in the literature. Our results suggest that both the North and the South have become less pollution-intensive (technique effect) over the years. Interestingly and in contrast to much of the literature, we also find support to the hypothesis that the South has specialized in relatively more pollution-intensive activities (composition effect).     

“Yes,we do. Why not use augmented reality?” customer responses to experiential presentations of AR-based applications

Augmented reality (AR) is regarded as a visually transformative technology that enables consumers to gain immersive and enjoyable information about experience products/services during the purchasing process. Based on the stimulus-organism-response (S–O-R) paradigm, this study investigates how experiential AR applications (apps) influence customers' experiential value, in turn enhancing continued usage intention. Furthermore, perceived customer support plays an even more important role in enhancing customers’ continued usage intention. This study obtained data through an online survey of 437 customers of the YouCam Makeup app in Taiwan. We used SmartPLS software to analyze the data and test the hypotheses. The findings suggest that the features of an experiential AR app have a greater positive impact on hedonic value than utilitarian value; in turn, only hedonic value has a positive impact on continued usage intention. The results further demonstrate that the effect of hedonic value on continued usage intention is positively moderated by perceived customer support.