The welfare effects of disclosure under cognitive dissonance

Atlantic Economic Journal -     

The Lévy LIBOR model

Models driven by Lévy processes are attractive because of their greater flexibility compared to classical diffusion models. First we derive the dynamics of the LIBOR rate process in a semimartingale as well as a Lévy Heath-Jarrow-Morton setting. Then we introduce a Lévy LIBOR market model. In order to guarantee positive rates, the LIBOR rate process is constructed as an ordinary exponential. Via backward induction we get that the rates are martingales under the corresponding forward measures. An explicit formula to price caps and floors which uses bilateral Laplace transforms is derived.     

Reserve Requirements,Liquidity Risk,and Bank Lending Behavior

Although reserve requirements (RR) have been used in emerging markets to smooth credit cycles, the transmission mechanism remains blurry. Using bank‐level data, we unveil the interaction of RR with bank lending. We identify a new channel that works through a decline in banks’ liquid assets and loan supply due to an increase in RR. “Quantitative tightening” through RR raises the short‐term funding needs of the banking system, which is met by collateralized central bank lending, thus depleting banks’ unencumbered liquid assets. Our results suggest that such a shift in bank liquidity is associated with a significant change in lending.     

Consumers’ Perceptions of Corporate Social Responsibility: Scale Development and Validation

Researchers and companies are paying increasing attention to corporate social responsibility (CSR) programs and the reaction to them by consumers. Despite such corporate efforts and an expanding literature exploring consumers’ response to CSR, it remains unclear how consumers perceive CSR and which “Gestalt” consumers have in mind when considering CSR. Academics and managers lack a tool for measuring consumers’ perceptions of CSR (CPCSR). This research explores CPCSR and develops a measurement model. Based on qualitative data from interviews with managers and consumers, the authors develop a conceptualization of CPCSR. Subsequently, model testing and validating occurs on three large quantitative data sets. The conceptualization and the measurement scale can assist companies to assess CPCSR relative to their performance. They also enable managers in identifying shortcomings in CSR engagement and/or communication. Finally, the paper discusses implications for marketing practice and future research.     

Foreign banks,financial crises and macroeconomic fluctuations

Understanding the implications of increased foreign bank presence is especially compelling in periods of financial crisis. In this paper, we explore this issue by examining the relationship between the involvement of foreign banks in the banking systems and the volatility of key macroeconomic variables in normal and crisis periods. Using a sample of 20 Emerging European countries from 1998 to 2013, we find that an increase in the assets of foreign banks in the banking system reduces output and consumption growth volatility in general but does not significantly affect the volatility of investments. However, these banks were found to play a significant role in increasing output, consumption and investment volatility in 2009. Our findings suggest that foreign banks’ harmful impact during the global crisis was only temporary and that they seem to help Emerging European countries stabilize macroeconomic volatility in normal times and after the global crisis.     

Consumers' awareness,acceptance and attitudes towards functional foods in Turkey

The aim of the present study was to investigate consumers' awareness, acceptance and attitudes towards functional foods in Turkey. Eight hundred and eight people participated in this study: aged between 20 and 80 years, 38.5% were male and 61.5% were female. Participants were given a questionnaire and were asked to fill it in by themselves to minimize the influence of the interviewer. Results indicated that socio‐demographic characteristics such as age, education level and income level are important indicators of consumers' awareness and consumption of functional food. The results show that the female respondents were 2.987 times more aware of functional food than the male respondents. Similarly, the likelihood of respondents having awareness of functional food was 1.431 times greater among those who had a higher educational level than among those with a lower educational level. Consumers who used vitamin supplements were 1.228 times more aware of functional food than other consumers. The results show that older respondents were 3.395 times more aware of functional food than younger respondents. Respondents with a history of familial diseases were more likely than others to have consumed margarine with plant sterol, fruit juices fortified with vitamin C, and breakfast cereals fortified with vitamins and minerals. Those with a diet‐related problem were more likely to have consumed cholesterol‐lowering products than those without a problem. As a conclusion, this study has shown that socio‐demographic characteristics such as age, education and income levels, and prices are important indicators that influence consumers' awareness and consumption of functional food. These results suggest that this type of knowledge could affect consumers' interest in functional foods, and therefore educational strategies might be necessary to encourage the consumption of functional foods.     

ACQUISITION OF INFORMATION TO DIVERSIFY CONTRACTUAL RISK*

Are hedging transactions that diversify a manager’s compensation risk detrimental to incentives, or can they improve contracting efficiency? If hedging provides efficiency benefits, should the manager or the firm undertake it? In our model, both the firm and the manager can trade financial portfolios to diversify the manager’s compensation risk. Prior to the portfolio selection, the parties need to acquire information on how different financial portfolios fit their diversification purposes. We illustrate that financial portfolios correlated with firm‐specific risk improve contracting efficiency. For equal information costs, it is optimal for the firm to undertake the hedging on the manager’s behalf.     

Salesperson cooperation: The influence of relational, task, organizational, and personal factors

Salesperson cooperation has become a crucial issue for the overall performance of most sales organizations. The authors examine the antecedents of task-specific, cooperative behaviors of salespersons toward other salespeople working in the same organization. The main theses of the study are that (1) the four major antecedent categories of factors—relational, task, organizational, and personal— constitute, collectively, the primary determinants of salesperson cooperation and (2) each antecedent category exerts, independently, significant influence on the cooperative behaviors of salespersons. The results support the main theses and provide useful insights for sales managers attempting to foster cooperation among salespeople. The relative impact of each antecedent category, as well as the effects of specific variables within each, is discussed. Cengiz Yilmaz is an assistant professor of marketing at Gebze Institute of Technology, Turkey. He obtained his Ph.D. in marketing from Texas Tech University in 1999. His research interests focus on sales management, distribution channels and relationship marketing, and strategic issues concerning intra- and interfirm aspects in marketing systems and their links with business performance. His research has been published in various conference proceedings. Shelby D. Hunt is the J. B. Hoskins and P. W. Horn Professor of Marketing at Texas Tech University, Lubbock, Texas. A past editor of theJournal of Marketing (1985–1987), he is the author ofModern Marketing Theory: Critical Issues in the Philosophy of Marketing Science (South-Western, 1991) andA General Theory of Competition: Resources, Competences, Productivity, Economic Growth (Sage Publications, 2000). He has written numerous articles on competitive theory, macromarketing, ethics, channels of distribution, philosophy of science, and marketing theory. Three of hisJournal of Marketing articles, “The Nature and Scope of Marketing” (1976), “General Theories and Fundamental Explananda of Marketing” (1983), and “The Comparative Advantage Theory of Competition” (1995) (with Robert M. Morgan) won the Harold H. Maynard Award for the “best article on marketing theory.” His 1985Journal of Business Research article with Lawrence B. Chonko, “Ethics and Marketing Management,” received the 2000 Elsevier Science Exceptional Quality and High Scholarly Impact Award. His 1989 article, “Reification and Realism in Marketing: In Defense of Reason,” won theJournal of Macromarketing Charles C. Slater Award. For his contributions to theory and science in marketing, he received the 1986 Paul D. Converse Award from the American Marketing Association, the 1987 Outstanding Marketing Educator Award from the Academy of Marketing Science, and the 1992 American Marketing Association/Richard D. Irwin Distinguished Marketing Educator Award.     

Sustainability practices of family firms: the interplay between family ownership and long-term orientation

Sustainability practices are critical for family firms, as they relate directly to the continuity of the business and relationships with important stakeholders, such as members of the local community. Nevertheless, not all family firms wish to adopt sustainability practices. To examine this, we draw upon the socioemotional wealth perspective in order to develop a theoretical model of the direct negative effects of family ownership on the adoption of sustainability practices. We also suggest moderating effects of long-term orientation (LTO) on this link. Our model is tested on a sample of 195 family firms in the tourism and hospitality sector. The results support our hypothesis that family ownership negatively influences the adoption of sustainability practices. Additionally, LTO moderates the relationship between family ownership and the adoption of sustainability practices, such that family owners with a high LTO are more likely to adopt this particular practice compared to those with a low LTO.