Charul Agrawal and Taranjeet Duggal
The study aims to study the extent of research done in luxury marketing in an emerging economy like India by conducting a bibliometric analysis. A period of 21 years has been…
Abstract
The study aims to study the extent of research done in luxury marketing in an emerging economy like India by conducting a bibliometric analysis. A period of 21 years has been considered to present a comprehensive picture for results and analysis. Key findings indicate the gaps and scope of further research for academics in India and abroad. The findings indicate a dearth of research by scholars and academicians in luxury, counterfeit and masstige, especially when there is a surge of the upper middle class in India. More specifically, Indian-grown luxury brands also present a massive scope for future research.
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By analyzing tourist choices in Side and Alanya, well-known destinations for tourists in Türkiye’s thriving urban tourism sector, this study aims to fill a crucial vacuum in the…
Abstract
Purpose
By analyzing tourist choices in Side and Alanya, well-known destinations for tourists in Türkiye’s thriving urban tourism sector, this study aims to fill a crucial vacuum in the body of knowledge about urban tourism. The study examines the changing dynamics of consumer preferences for advertisements and closely examines the underlying factors that influence these preferences, both pre and post-influential COVID-19 period.
Design/methodology/approach
This study clarifies the complex interplay between tourism marketing and prospective tourists’ decision-making processes through a thorough examination. This research greatly improves our understanding of urban tourism marketing strategies by examining the varying effects of advertising channels and comparing the persuasive power of emotional versus numerical advertising messages.
Findings
This study’s findings significantly advance our understanding of urban tourism. Examining how visitors react to advertisements in the various urban environments of Side and Alanya offers insightful information on how marketing strategies and visitor preferences correlate. This research also reveals the subtleties of efficient communication techniques, providing a practical basis for improving urban tourism experiences.
Originality/value
Being the first study of its sort, to the best of the authors’ knowledge, this research’s originality is supported by its insights into how advertising, consumer preferences and the urban tourism environment interact. The significant contribution to knowledge highlights the implications for those involved in urban tourism and provides practical advice for improving advertising tactics in the post-COVID-19 age.
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Liang-Wei Kuo, Hsin-Yu Liang and Yung-Jang Wang
Building upon the framework of the tradeoff model of capital structure and motivated by the equity market timing theory, we examine whether equity misvaluation is a source of…
Abstract
Building upon the framework of the tradeoff model of capital structure and motivated by the equity market timing theory, we examine whether equity misvaluation is a source of adjustment “costs” that will affect a firm’s leverage adjustment speed toward target. We also investigate whether the quality of a firm’s long-term growth options will influence the decisions of managers to exploit the mispriced equity to converge to the optimum. Using a sample of listed Taiwanese firms during 1992–2014 and employing the market-to-book decomposition as developed by Rhodes-Kropf, Robinson, and Viswanathan (2005), we find that overleveraged and overvalued firms demonstrate faster adjustment speed than overleveraged but undervalued firms. Furthermore, controlling for the misvaluation status, high-growth firms converge to target faster than their low-growth counterparts. The effect of growth options on the relation between equity mispricing and adjustment speed does not mirror the effect of financing deficits. With the detailed financial information of the local companies across a rather long time series, this study provides incremental inputs to the literature of capital structure from the determinants of target leverage, the estimation of leverage adjustment speeds, to the identification of the sources of adjustment costs in an emerging market where institutional environment is strikingly different from the US.
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Zhenlong Li, Jie Guo and Panagiotis Andrikopoulos
The purpose of this paper is to examine the misvaluation hypothesis using a relative reference point (RRP) in mergers and acquisitions (M&A) market.
Abstract
Purpose
The purpose of this paper is to examine the misvaluation hypothesis using a relative reference point (RRP) in mergers and acquisitions (M&A) market.
Design/methodology/approach
The paper studies 1,878 M&A deals in the US market announced between January 1985 and December 2014.
Findings
The paper finds that bidders prefer stock payments when the RRP increases. The RRP is positively related to the offer premium and the target announcement returns. Although the RRP is negatively related to the bidder announcement returns, it is positively related to the long-run performance of bidders who time the market with overvalued stocks. The results are consistent with the predictions of the misvaluation hypothesis and reference point (RP) theory.
Originality/value
The authors construct a dynamic valuation framework to explain the misvaluation hypothesis by linking M&As’ misvaluation with RP theory. This paper provides direct evidence that the reference-dependence bias is prevalent for more experienced investors in major corporate investment decisions and offers fresh insights into the method of payment hypothesis.
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Julie A. Ruth and Rachel Oakley Hsiung
How do people with few material resources manage their consumption lives? We address this question by investigating the consumption practices and processes of 27 subsistence…
Abstract
How do people with few material resources manage their consumption lives? We address this question by investigating the consumption practices and processes of 27 subsistence consumers in South Africa. These individuals are economically active, underserved consumers who either had in the past or have today few resources in terms of income, employment, and education; most of these consumer–informants grew up in and/or live in urban townships populated by poor black South Africans. Our interpretation is based on family systems theory and centers on analyses showing that subsistence consumers enact strategies to cope with the chronic stress of resource allocation needs for the family that outpace resource generation. The repertoire of strategies includes: (1) adhering to resource generation opportunities, (2) accessing new resources, (3) talking to family members, (4) trying and striving, (5) sacrificing, and (6) risking. These strategies are discussed in light of family systems theory, consumer behavior research, and marketing to subsistence consumers.
M. Kulkarn, V.K. Gupta and T. Viswanathan
Information processing is concerned with the representation, storage, organisation and access of data. In the case of online databases, one expects that the information should be…
Abstract
Information processing is concerned with the representation, storage, organisation and access of data. In the case of online databases, one expects that the information should be retrieved as fast as possible. The query time depends upon how the information has been stored in the database, that is the record structure and associated indexes, as well as the file organisation. Based on these concepts an ‘Information retrieval software’ has been developed at the Indian National Scientific Documentation Centre (INSDOC) for the bibliographic databases. The salient features of this software are described. An entity relationship model for the bibliographic database as implemented is shown in Figure 1.
The survival rate of newly listed firms is low, and there is evidence of a surge of poorly performing new listed firms leading up to the crash of the dot.com bubble. The author…
Abstract
Purpose
The survival rate of newly listed firms is low, and there is evidence of a surge of poorly performing new listed firms leading up to the crash of the dot.com bubble. The author investigates this phenomenon and analyzes investors' ability to understand the quality of accounting information and to adjust their expectations.
Design/methodology/approach
The author employs the dividend discount model in conjunction with clean surplus accounting discussed by Ohlson (1995) to compare the value relevance of earnings and research and development (R&D) expenditures for short and longer listed National Association of Security Dealer Automated Quotations (NASDAQ) firms between 1980 and 2014. The author also uses univariate tests and logistic regression to analyze both recently listed and short-listed firms. In this analysis, the author compares the differences in investors' expectations for the first five years for both types of firms.
Findings
The author provides convincing evidence that markets clearly placed lower valuation weights on accounting earnings and R&D expenditures for short-listed firms on NASDAQ. Market participants originally had high expectations for these ventures. But, they gradually understood the lower quality of accounting information and adjusted their expectations downward.
Originality/value
The author’s results show that optimistic expectations along with easy equity financing created a surge of new listings. My analysis of the interplay between the quality of accounting information and investors' expectations indicates a negative spillover effect where investors are overoptimistic about firms that rode on waves of new listings backed by liberal financing. The author shows that analysis of Tobin's Q and negative earnings can separate ill-prepared from longer-listed firms.
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Carter Mandrik, Yeqing Bao and Sijun Wang
The purpose of this study is to examine the intergenerational influence across dyads of mothers and daughters from the USA and the People’s Republic of China (PRC), with a…
Abstract
Purpose
The purpose of this study is to examine the intergenerational influence across dyads of mothers and daughters from the USA and the People’s Republic of China (PRC), with a particular interest in discovering the cross-national differences in terms of the level of mother–daughter brand preference agreement, the directional influence from daughter to mother and leading factors for the observed differences.
Design/methodology/approach
Using a parallel survey method, responses were obtained regarding participants’ brand preferences, as well as their perceptions of their dyad partners’ preferences, for 20 product categories. A total of 76 dyads in the USA and 114 dyads in the PRC were collected.
Findings
Results not only confirmed the existence of intergenerational influence in mother–daughter dyads’ brand preferences after removing the nominal bias that previous studies commonly suffered but also suggested two interesting cross-national differences. Specifically, the authors find that US mother–daughter dyads possess a higher level of brand preference agreement than their PRC counterparts; however, the influence from daughters to mothers in the PRC is greater than in the USA. The authors further find that two potential leading factors contribute to the observed cross-national differences; mother–daughter communication is stronger but less influential in the USA than in the PRC, while children’s peer influence, measured as information influence of peers, is weaker but more influential in the USA than in the PRC.
Research limitations/implications
Understanding intergeneration influences in different cultural contexts may be applicable in developing communication strategies leading to brand preference.
Originality/value
This study contributes to the consumer socialization literature by examining the cross-national differences of intergenerational influence in brand preferences and their leading causes of such differences in the context of the two biggest economies.
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Garrett C.C. Smith and Jeffrey M. Coy
The purpose of this study is to compare two theories that relate the proportion of diversified firms in the economy and the implied discount for diversified firms: the first is a…
Abstract
Purpose
The purpose of this study is to compare two theories that relate the proportion of diversified firms in the economy and the implied discount for diversified firms: the first is a real-options model predicting a positive relationship between the discount and management’s choice to operate a diversified firm; the second is based on catering theory, in which a negative relationship is predicted, as management is attentive to investor preference concerning diversified firms.
Design/methodology/approach
This study proposes a new aggregate measure of the diversification discount. The authors’ measure allows for decomposition of the discount into firm-level mispricing, industry-level mispricing and long-run fundamental value components.
Findings
Results support a catering theory of diversification. The discount appears to be the result of firm-level mispricing. Thus, providing an explanation for why, in light of the observed discount, a large number of diversified firms persist.
Originality/value
To the authors’ knowledge, this is the first study to provide evidence that firm-level mispricing may drive the observed diversification discount.
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Zhuo (June) Cheng and Jing (Bob) Fang
This study aims to examine what underlies the estimated relation between idiosyncratic volatility and realized return.
Abstract
Purpose
This study aims to examine what underlies the estimated relation between idiosyncratic volatility and realized return.
Design/methodology/approach
Idiosyncratic volatility has a dual effect on stock pricing: it not only affects investors' expected return but also affects the efficiency of stock price in reflecting its value. Therefore, the estimated relation between idiosyncratic volatility and realized return captures its relations with both expected return and the mispricing-related component due to its dual effect on stock pricing. The sign of its relation with the mispricing-related component is indeterminate.
Findings
The estimated relation between idiosyncratic volatility and realized return decreases and switches from positive to negative as the estimation sample consists of proportionately more ex ante overvalued observations; it increases and switches from negative to positive as the estimation sample consists of proportionately more ex post overvalued observations. In sum, the relation of idiosyncratic volatility with the mispricing-related component dominates its relation with expected return in its estimated relation with realized return. Moreover, its estimated relation with realized return varies with research design choices and even switches sign due to their effects on its relation with the mispricing-related component.
Originality/value
The novelty of the study is evident in the implication of its findings that one cannot infer the sign of the relation of idiosyncratic volatility with expected return from its estimated relation with realized return.