Should Independent Directors Have Term Limits? The Role of Experience in Corporate Governance

We examine the role of independent directors with extended tenure in board‐level governance, monitoring decisions, and advising outcomes. These directors exhibit a higher level of commitment as they attend more board meetings and take more committee memberships. Firms with a higher proportion of these directors have lower chief executive officer (CEO) pay, higher CEO turnover‐performance sensitivity, and a smaller likelihood of intentionally misreporting earnings. These firms also restrict the expansion of resources under the CEO's control as they are less likely to make acquisitions, while the acquisitions they do make are of higher quality. Efforts to impose term limits on directors may, therefore, be misguided.     

Following the breadcrumbs: An analysis of online product review characteristics by online shoppers

Consumer-generated product reviews are a driving force behind online purchases; at the same time, unfavorable reviews can discourage interested online shoppers and eventually hurt the brand. The objective of this exploratory study was to analyze a diverse range of characteristics and the valence of online product reviews that would aid in responding to customer dissatisfaction. Product reviews (N = 1982) from Amazon.com were collected and content analyzed. Some of the key findings include the following: (a) price was the most commonly discussed product feature; (b) online shoppers found two-sided reviews to be most informative, contradicting the commonly held assumption that negative reviews were more informative and diagnostic in nature; and (c) ‘no action’ was the most common end action across two-sided and negative reviews, indicating that varying levels of dissatisfaction might not always lead to a negative end action. Implications for marketers are discussed.     

Management Resistance to Takeover Bids and Shareholder Response

This paper presents a model of management resistance to takeover bids in which there is both a managershareholder conflict of interest due to perquisite consumption and information asymmetry. The optimal response of shareholders to such resistance is then analysed. The paper highlights the role of information asymmetry and perquisite consumption in explaining the empirical evidence on takeovers and the institutional features of golden parachutes and greenmail.     

‘I owe my life to the kind individual who called the helpline’: exploring the interplay of self-views and social distance in narrative advertising on domestic violence prevention in India and the United States

Abstract

The persuasiveness and popularity of narratives in commercial advertising has gained much attention but its application in inculcating responsible behaviour is severely limited. Domestic violence against women is a global issue and there is a dire need for effective bystander intervention campaigns. This two-part study delved into how narratives could be employed to elicit favourable ad attitudes and encourage bystanders to report instances of domestic abuse in their neighbourhood. Study 1 focused on testing the effectiveness of narratives in two culturally diverse countries – India and the United States. In general, findings showed that narratives (vs. non-narratives) were more persuasive in both countries. As the next step, using culture (interdependence vs. independence) and social distance (parents vs. neighbours), Study 2 found narratives with a socially proximal entity (parents) to be more persuasive in India while no differences between countries were observed for the socially distant entity (neighbours). Theoretical and managerial implications are discussed.     

“Tax” and “Fee” Frames in Green Advertisements: The Influence of Self-Transcendence in Reusable Bag Usage

Increasing the use of reusable shopping bags is one of many actions that consumers can take to reduce waste and conserve energy. However, this goal is somewhat daunting because it requires a significant behavior change on the part of consumers. Taking their self-transcendence into consideration, the current study used an experimental method to examine which type of message frame best influenced shoppers to use reusable bags: a fee (gain) or a tax (loss). Findings show that high self-transcendent participants were more environmentally conscious and that, overall, a penalty framed as a tax was more effective. Implications are discussed.     

Can Divine Intervention Aid in Domestic Violence Prevention? An Analysis of Bystanders' Advertising Attitudes and Reporting Intentions in India

The research explores how religious symbols can be used in advertising to encourage bystander intervention in the context of domestic violence. Using symbolic interactionism as the theoretical framework, a 4 (Ad type: Control vs. Visual vs. Verbal vs. Visual/Verbal) × 2 (Religiosity: Low vs. High) between-subjects experimental design was conducted to assess impact on attitudes toward the ad and intention to help. A national sample (N = 402) of Hindu adults from India was recruited. The findings suggest level of religiosity is critical to the process with highly religious individuals displaying higher levels of involvement, concern for others and willingness to report abuse. No significant differences were found across visual and verbal religious symbol conditions. Implications for advertisers and government agencies are presented.     

What triggers young Millennials to purchase eco-friendly products?: the interrelationships among knowledge,perceived consumer effectiveness,and environmental concern

As the attention to environmental sustainability heightens, marketers increasingly claim that their products help preserve the environment. Without proper understanding of how emerging target markets, such as young Millennials, are triggered to purchase green claims, their efforts may be futile. Accordingly, the current study examined the interrelationships among major environmental antecedents, such as environmental knowledge (EK), perceived consumer effectiveness (PCE), and environmental concern (EC) on environmentally conscious consumer behaviour (ECCB). The results of an online survey with younger Millennials revealed that EK and EC were significant predictors of ECCB, with EC being the stronger predictor. Unlike past literature, PCE was not directly related to ECCB. The study also found a strong mediating role of EC between EK and ECCB, as well as PCE and ECCB. Implications for green marketers are discussed, along with theoretical discussion.     

A Green Picture is Worth A Thousand Words?: Effects of Visual and Textual Environmental Appeals in Advertising and the Moderating Role of Product Involvement

This study examined the main effects and interaction effects of textual environmental claims and green visuals on attitude-toward-the-ad (A_ad), attitude-toward-the-brand (A_b), purchase intention (PI), and green brand associations. In general, the use of textual environmental claims and green visuals lead to more positive advertising responses and more favorable perception of the brand's environmental effort. Textual environmental claims had stronger impact, but if no textual information was available, the use of green visuals could also generate positive perception of the brand's environmental effort. In addition, when textual claims or green visuals are present, participants perceived high involvement products as more environmentally friendly than low involvement products.     

Studying the impact of religious symbols on domestic violence prevention in India: applying the theory of reasoned action to bystanders' reporting intentions

Using the theory of reasoned action (TRA), the study examines the process of religious beliefs, social norms and attitudes toward women to predict people's intentions to intervene when confronted with domestic violence. Drawing from a nationwide sample in India and the religion of Hinduism, the structural equation modeling (SEM) findings show support for the hypothesized models. The religious symbol primed one's level of religiosity, generating positive ad attitudes and intentions to report domestic violence. For both ads, beliefs in gender equality and social norms about helping were critical to reporting intentions. More importantly, the study extends the TRA by showing religion's relevance in public service persuasion. The study provides both theoretical and managerial implications as well as avenues for future research.     

Evaluation of the Reggio approach to early education

We evaluate the Reggio Approach using non-experimental data on individuals from the cities of Reggio Emilia, Parma and Padova belonging to one of five age cohorts: ages 50, 40, 30, 18, and 6 as of 2012. The treated were exposed to municipally offered infant-toddler (ages 0–3) and preschool (ages 3–6) programs in Reggio Emilia. The control group either did not receive formal childcare or were exposed to programs offered by municipal systems (outside of Reggio Emilia), or by state or religious systems (in all three cities). We exploit the city-cohort structure of the data to estimate treatment effects using three strategies: difference-in-differences, matching, and matched-difference-in-differences. Most positive and significant effects are generated from comparisons of the treated with individuals who did not receive formal childcare. Relative to not receiving formal care, the Reggio Approach significantly boosts outcomes related to employment, socio-emotional skills, high school graduation, participation in elections, and obesity. Comparisons with individuals exposed to alternative forms of childcare do not yield strong patterns of positive and significant effects. This suggests that differences between the Reggio Approach and other alternatives are not sufficiently large to result in significant differences in outcomes. This interpretation is supported by a survey we conduct, which documents increasing similarities in the administrative and pedagogical practices of childcare systems in the three cities over time.