Banks and Corporate Decisions: Evidence from Business Groups

Banks who can influence clients' governance may steer those clients into mergers to reduce the banks' own risk. Empirical evidence based on Japan's mergers and acquisitions (M&As) during the country's 1990s banking crisis indicates that acquirers with stronger bank ties made acquisitions that they would not have normally made. These acquirers lost more shareholder value via mergers than acquirers with weaker bank ties. The banks' risk was reduced, while the banks' shareholders gained significant excess returns from their borrowers' mergers. This paper offers implications for corporate governance of firms with strong bank ties and advances the existing knowledge on business groups.     

Being Innovative While Being Green: An Experimental Inquiry into How Consumers Respond to Eco‐Innovative Product Designs

Eco‐innovations are an effective way for companies to strategically align themselves with customers’ growing environmental concerns. Despite their crucial role, scant research has focused on eco‐innovative product designs. Drawing from the sustainability and innovation literature, this article proposes that in the design of an eco‐innovation, its degree of innovativeness, level of eco‐friendliness, and detachability significantly affect consumers' adoption intentions. This article develops various conceptual models tested through three independent online experiments with U.S. consumers. The findings support the hypotheses and provide useful insights into the underlying mechanisms of how and why consumers respond to eco‐innovative product designs across various high‐tech product categories. Specifically, the results show (1) a positive effect of innovativeness degrees of eco‐innovative attributes on consumers' perceptions of product eco‐friendliness and on their adoption intentions as well as a significant moderating role of consumers' need for cognition (Study 1); (2) a positive influence of eco‐friendliness levels of eco‐innovative attributes on consumer adoption intentions in the case of high‐complexity products but not for low‐complexity products, emphasizing the need to adopt different approaches when developing eco‐innovations to ensure favorable consumer reactions (Study 2); and (3) a significant impact of the detachability of eco‐innovative attributes on consumers' perceptions of trade‐offs between environmental benefits and product functionality and on their intentions to adopt eco‐innovations (Study 3). These findings add to existing theoretical knowledge, provide actionable managerial implications, and identify fruitful avenues for future research.     

Tourist Satisfaction and Destination Image of Vietnam's Ha Long Bay

Although considerable work has been done on destination image as a whole, far less research has investigated the differences in destination image assessments for domestic versus international visitors in developing countries. This study offers findings that illustrate the differences in perception of destination image, satisfaction attributes, and intention among domestic and international visitors to Ha Long Bay, a United Nations Educational Scientific and Cultural Organization World Heritage Site in Vietnam. The results of a survey on 650 tourists suggest that international visitors to the Ha Long Bay region have higher standards and are more critical in their evaluation of services than domestic visitors when judging this destination. Destination image is a common factor determining the level of satisfaction of both groups. Basic and augmented services were found to influence international visitors’ future intention toward the destination. This finding implies that the destination managers of Ha Long Bay need to improve current standard of augmented services to yield higher visitors’ propensity to recommend and return to the destination.     

Overnight public information,order placement,and price discovery during the pre-opening period

This study examines the impact of corporate news announcements released overnight on price discovery during the pre-opening period in the Australian Securities Exchange. Our results suggest that the presence of these announcements increases the efficiency of indicative opening prices and that the intensity of these announcements significantly influences the aggressiveness of pre-opening orders. Using earnings announcements to compare the speed of price adjustments in response to overnight and daytime information of a homogeneous type, we find that prices respond immediately to overnight news upon the commencement of trading, whereas adjustments based on trading-hours news tend not to be instantaneous. Overall, our evidence highlights the important role of the pre-opening period in price discovery and the prospect of further enhancing this role by timing the release of public information to occur during non-trading hours.     

Network ties and export propensity of Vietnamese small and medium enterprises

This paper investigates the impacts of different network ties on export propensity of Vietnamese small and medium enterprises (SMEs) in the manufacturing sector. Using data from a survey of over 2,600 manufacturing SMEs in 2015, we found that social networks contribute positively to the export propensity of SMEs, while the size of business networks negatively associates with the likelihood of export. However, bank networks and political networks are not significant for the propensity to export of Vietnamese SMEs. We discuss the results in detail and offer recommendations for SME owners, managers and policy makers.     

Cultural intelligence and voice behavior among migrant workers: the mediating role of leader–member exchange

Abstract

This empirical study is the first to explicitly examine cultural intelligence (CQ) as an antecedent of voice behavior and to explore the mediating role of leader–member exchange (LMX) in the CQ–voice relationship. Two hundred and sixty-one usable questionnaires were collected from migrant workers in Australia using an online survey. The data were analyzed with regression analyses and structural equation modeling. Results showed that migrant employees with higher CQ were more likely to engage in voice behavior. The positive relationship between CQ and voice behavior was partially mediated by LMX. These findings verify a relatively new individual antecedent (i.e. CQ) of voice behavior and reveal the underlying mediation mechanism that explains the effects of CQ on employee voice. This study also carries important implications for managing culturally-diverse workforces (i.e. migrant workers) regarding the promotion of voice.     

Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system

Rapid income growth and urbanisation could significantly change the composition of the food basket in many emerging economies. This study estimates a demand system, including 15 major food items in Vietnam, with multiyear household survey data. We find a large variation in the estimated price elasticities (–0.05 to –0.88) and expenditure elasticities (–0.16 to 2.56). Food types, urban status and income groups can explain this variation. We also find that the staple food, rice, is already an inferior good for rich urban households in Vietnam. Moreover, food preferences are evolving away from rice but towards animal proteins (fish, pork, chicken, eggs and milk), fruits and vegetables, irrespective of urban status and income groups. As the Vietnam economy continues to grow with a doubling of gross domestic product (GDP) in the next decade, per capita rice consumption in both urban and rural areas and across different income groups will continue to decline, whereas demand for other high‐value products will rise. Thus, government policy should focus on encouraging demand‐oriented food production. In addition, crop diversification at the farm level needs to improve substantially to meet the rising demand for these food products due to income growth and urbanisation.     

Pesticide use in Vietnamese vegetable production: a 10-year study

Vietnam has had varying success over the past decade with its pesticides policy. Some of the most toxic pesticides have been banned from the market. But while many countries have successfully decreased agricultural pesticide use per hectare, this has not (yet) happened in Vietnam. Due to insufficient pesticide management capacity of the Vietnamese government, pesticide types and quantities registered and distributed on the market have substantially increased in Vietnam over the last 10 years. A 10-year monitoring programme at farm level showed that pesticide use follows the increasing pesticide availability on the market, and many toxic and illegal pesticides are still being used. In an agricultural country dominated by millions of small-scale farmers and with limited state capacity for control at farm level, reduction of the use of the most toxic pesticides can best be achieved by more effective pesticide market control through stricter and more effective state regulations and implementation, aimed at eliminating illegal, low quality and counterfeit pesticides from the market. But even then, better state and private extension services, and greater state capacity for control and enforcement remain essential in enabling farmers to make better decisions about pesticide use.     

Rating Migrations: The Effect of History and Time

We examine the effect of rating history and the passage of time on the rating migration hazard for corporate debt issuers. Controlling for industry effects and the evolution of business and political cycles, the results consistently show that the next change of rating depends more strongly on rating history than it does on the current rating. However, there are significant interactions between the main effects of rating history and the duration of the current rating. The result is substantial decay in the effects of rating history the longer a rating remains unchanged. This decay effect is stronger for downgrades and for ratings in the speculative category.     

Inequality in Vietnamese Urban–Rural Living Standards, 1993–2006

We investigate urban–rural inequality in Vietnam using data from the Vietnam Living Standard Surveys between 1993 and 2006. We find that mean per capita expenditure of urban households is consistently twice as much as that of rural households and that the urban–rural gap monotonically increases from the poorer to the richer groups of the expenditure distribution. To isolate factors contributing to the urban–rural gap, we apply the Oaxaca–Blinder type decomposition to a newly developed unconditional quantile regression method. Factors contributing significantly to the high urban–rural gap include inter‐group differences in education, household age structure, labor market activity, geographic location and their related returns, with education playing the most important role. Over the period, consistent with the country's massive rural–urban migration, we find that domestic remittance plays a significant role in shortening the urban–rural expenditure gap in the later years, 2002 and 2006.