The purpose of this paper is to determine the impact of the Supreme Court’s ruling that POM Wonderful could sue Coca-Cola, a competitor, for misrepresentation of their products…
Abstract
Purpose
The purpose of this paper is to determine the impact of the Supreme Court’s ruling that POM Wonderful could sue Coca-Cola, a competitor, for misrepresentation of their products. This decision has the potential to alter the legal environment for soft drink and food processing firms.
Design/methodology/approach
The author conducted an event study of the shareholder value effects of the court decision. The analysis estimates the market responses to the decisions. To control the effects of market-wide fluctuations, the author uses two alternative models of the returns generating process to calculate abnormal returns, the capital asset pricing model (CAPM) and the Fama-French 3-factor models.
Findings
The author hypothesizes that soft drink firms will be negatively impacted by the Supreme Court’s decision, because it may limit their ability to market beverages with a low percentage of expensive juices. Consistent with this argument, the author finds that the stock prices of publicly traded soft drink firms reacted negatively to the announcement of the Supreme Court’s decision. The author also hypothesizes that there may be a spillover effect to food processing firms. These firms may also be at risk to being sued by competitors for exaggerated claims. Contrary to this argument, the author finds no spillover effect to other types of food processing firms. Thus, the decision did leave an aftertaste for the soft drink industry but not the food processing industry.
Originality/value
This study is the first to examine the impact of the right to sue competitors in the food industry for misrepresentation of products.
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Mark Steven Johnson and Tolani Lawson
The purpose of this paper is to determine the impact of the passage and signing of P.L. 111-353, the Food Safety Modernization Act (FSMA), on the market value of agribusiness…
Abstract
Purpose
The purpose of this paper is to determine the impact of the passage and signing of P.L. 111-353, the Food Safety Modernization Act (FSMA), on the market value of agribusiness firms.
Design/methodology/approach
The authors conduct an event study of the shareholder value effects of FSMA. The short-window analyses estimate the three-, five-, and seven-day market responses to three key event dates: passage by the House, passage by the Senate, and the signing of FSMA by President Obama. The long-window analyses examine a time period that encompasses the three informational events, as well as the 30 months after the signing of FSMA. To control for the effects of market-wide fluctuations, the authors use two alternative models of the returns generating process to calculate abnormal returns, the Capital Asset Pricing Model (CAPM) and the Fama-French three-factor model.
Findings
The short-window analyses show no evidence of a significant reaction to the passage of FSMA by the House or the Senate, but evidence of a significant negative reaction to the signing of FSMA by President Obama. The long window results which span the of passage by House, passage by the Senate and signing by the President indicate a decline in the average market value of agribusiness firms on the order of – 10 percent over the period. Additionally, the authors find some evidence that this effect is not evenly spread out across different types of agribusiness firms (wholesale, grocery, and processing).
Originality/value
The study is the first to examine the impact of P.L.111-353 on the market value of agribusiness firms.
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Ronald J. Berger, Carla Corroto, Jennifer Flad and Richard Quinney
Medical uncertainty is recognized as a critical issue in the sociology of diagnosis and medical sociology more generally, but a neglected focus of this concern is the question of…
Abstract
Medical uncertainty is recognized as a critical issue in the sociology of diagnosis and medical sociology more generally, but a neglected focus of this concern is the question of patient decision making. Using a mixed methods approach that draws upon autoethnographic accounts and third-party interviews, we aim to illuminate the dilemmas of patient decision making in the face of uncertainty. How do patients and supportive caregivers go about navigating this state of affairs? What types of patient–doctor/healthcare professional relationships hinder or enhance effective patient decision making? These are the themes we explore in this study by following patients through the sequence of experiencing symptoms, seeking a diagnosis, evaluating treatment protocols, and receiving treatments. In general, three genres of culturally available narratives are revealed in the data: strategic, technoluxe, and unbearable health narratives.
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Alexandra L. Ferrentino, Meghan L. Maliga, Richard A. Bernardi and Susan M. Bosco
This research provides accounting-ethics authors and administrators with a benchmark for accounting-ethics research. While Bernardi and Bean (2010) considered publications in…
Abstract
This research provides accounting-ethics authors and administrators with a benchmark for accounting-ethics research. While Bernardi and Bean (2010) considered publications in business-ethics and accounting’s top-40 journals this study considers research in eight accounting-ethics and public-interest journals, as well as, 34 business-ethics journals. We analyzed the contents of our 42 journals for the 25-year period between 1991 through 2015. This research documents the continued growth (Bernardi & Bean, 2007) of accounting-ethics research in both accounting-ethics and business-ethics journals. We provide data on the top-10 ethics authors in each doctoral year group, the top-50 ethics authors over the most recent 10, 20, and 25 years, and a distribution among ethics scholars for these periods. For the 25-year timeframe, our data indicate that only 665 (274) of the 5,125 accounting PhDs/DBAs (13.0% and 5.4% respectively) in Canada and the United States had authored or co-authored one (more than one) ethics article.
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Steven Laposa and Mark Charlton
This paper compares the corporate property holdings of European and US corporations. The authors initially calculate standard benchmarks based on accounting and balance‐sheet…
Abstract
This paper compares the corporate property holdings of European and US corporations. The authors initially calculate standard benchmarks based on accounting and balance‐sheet information as of 1999, and then test for significant differences by two‐digit standard industrial classification levels between European and US firms. They follow the methodology of Johnson and Keasler (1993) and compare property, plant and equipment book values to a variety of non‐property balance sheet and market value figures. However, this paper extends previous research through a comparative analysis of 1,573 US firms to 2,182 European firms. The findings suggest there are significant differences between Europe and the USA, dependent on the specific benchmark and industrial sector. The conclusions postulate a variety of explanations of the corporate property differences and provide ideas for further research.
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Competition is a prominent topic of discussion among academics and practitioners; yet the relevant literatures in management and psychology lack a consistent definition to…
Abstract
Competition is a prominent topic of discussion among academics and practitioners; yet the relevant literatures in management and psychology lack a consistent definition to describe this phenomenon. Consequently, much of the mixed results concerning competition's impact on attitudes and performance might be due to conceptual differences about the construct. A survey administered in a laboratory setting demonstrated individuals perceive different types of competition, and these different types had different impacts on attitudes and behavior. One type of competition identified here, the opportunity for informal competition, draws from a vast literature in social psychology—using social comparisons to evaluate performance. These results support broadening the definition of competition and expanding future research investigation efforts. Informal social competition can potentially benefit efforts to effectively direct and enhance motivation.
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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In lieu of recent violent acts and the deaths of quare individuals‐queers of colour (e.g. Jorge Steven Lopez Mercado, Carl Walker‐Hoover, Jaheem Herrera, Sakia Gunn, etc.) this…
Abstract
In lieu of recent violent acts and the deaths of quare individuals‐queers of colour (e.g. Jorge Steven Lopez Mercado, Carl Walker‐Hoover, Jaheem Herrera, Sakia Gunn, etc.) this piece remembers their lives, while reimagining our current sociopolitical landscape (Johnson, 2006). Recognising the spiritual as political (Jacqui Alexander, 2005), this work calls upon our collective memories‐psychological, bodily and sacred‐to remember the tragedies and lessons of love necessary to heal our collective wounds. Through a polyvocal montage performance text, life, living, love, and quareness are explored. Believing love as the core of Christianity, and the necessity of love to sustain life, revolution, justice and equality, A Call to Love questions our love practices, urging us to operate from that commonality.
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Maximilian Körber and Diogo Cotta
This study aims to investigate the extent to which the presence of chief supply chain officers (CSCOs) in top management teams (TMTs) helps firms to reduce the incidence of…
Abstract
Purpose
This study aims to investigate the extent to which the presence of chief supply chain officers (CSCOs) in top management teams (TMTs) helps firms to reduce the incidence of product recalls.
Design/methodology/approach
The authors identified all recalls for the period 2010–2017 issued by publicly held firms regulated by the US Consumer Product Safety Commission. These data were subsequently combined with information on TMT composition from BoardEx and financial performance data from Compustat to create a unique data set.
Findings
The study identified a significant and negative association between CSCO presence and incidence of product recalls. The evidence also supports the conjecture that this association is stronger in larger firms, indicating that CSCOs are especially effective when operating within more complex supply chains.
Practical implications
The findings provide important insights into quality management in contemporary supply chains and indicate that assigning specific responsibility for supply chain management to a TMT member improves product reliability.
Originality/value
These findings contribute to the growing literature on the underlying causes of a product recall by identifying corporate governance antecedents of external quality failures of this kind.