Wenjia Zhang and Julan Du
This study investigates the impacts of Chinese media reporting strategy (media tone) on the market performance of US-trade-intensive firms vs non-US-trade-intensive firms and the…
Abstract
Purpose
This study investigates the impacts of Chinese media reporting strategy (media tone) on the market performance of US-trade-intensive firms vs non-US-trade-intensive firms and the effect of media tone on the occurrence of good and bad news.
Design/methodology/approach
News texts were retrieved from nine major financial/economic media outlets. Lexical analysis and event study have been adopted to examine the impact of different types of news during the US–China trade frictions on Chinese firms.
Findings
The results show that US-trade-intensive firms vs non-US-trade-intensive firms exhibited different reactions to media coverage. US-trade-intensive firms care more about the governmental attitudes toward the trade war and potential policy supports implied in the official media reports than non-US-trade-intensive firms do. The return-chasing behavior hypothesis is supported by US-trade-intensive investors, and this effect is further enhanced when multiple releases occur on the same day. A higher media tone combined with intensified media releases significantly increases the volatilities of both US-trade-intensive and non-US-trade-intensive firms.
Practical implications
Information provided by this study helps the regulatory authorities to formulate measures to enhance investor confidence and better optimize resource allocation.
Originality/value
This study investigates the asymmetric effect of media tone on US-trade-intensive firms vs non-US-trade-intensive firms, which has not been examined, to the best of the authors’ knowledge, in the existing literature.
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John A. Doukas and Wenjia Zhang
– The purpose of this paper is to test whether bank mergers are driven by equity overvaluation and management compensation incentives.
Abstract
Purpose
The purpose of this paper is to test whether bank mergers are driven by equity overvaluation and management compensation incentives.
Design/methodology/approach
To test whether equity mispricing drive bank mergers, the authors employ two alternative price-to-residual income valuation (P/V) measures for bidders and targets while the authors control for their growth prospects with the price-to-book (P/B) (two years before) ratio. The intrinsic value (V) is estimated using the three-period forecast horizon residual income model of Ohlson (1995) and perpetual residual income model that does not rely on analysts’ forecasts of future earnings prospects. The latter measure allows the authors to estimate V for a much larger sample of banks. The empirical analysis is supplemented with a standard event analysis and assessment of the long-term performance of bank mergers subsequent to the announcement date.
Findings
The evidence shows that bidders are overvalued relative to their targets, especially in equity offer deals. The authors also find that highly valued bidders: are more likely to use stock than cash; are willing to pay more relative to the target market price; are more likely to acquire private than public targets; earn lower announcement-period returns; fail to create synergy gains; experience long-term underperformance; and reward their top managers of with large compensation increases subsequent to mergers.
Originality/value
This study provides results consistent with the view that behavioral and managerial incentives play an important role in motivating bank mergers.
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John A. Doukas and Wenjia Zhang
This study investigates the implications of the cumulative prospect theory in the context of US bank acquisitions, with particular emphasis on its probability weighting component…
Abstract
Purpose
This study investigates the implications of the cumulative prospect theory in the context of US bank acquisitions, with particular emphasis on its probability weighting component. Specifically, we examine whether gambling attitudes matter in US bank takeover decisions. The evidence demonstrates that offer price premiums and target announcement returns are much higher in bank takeover transactions involving targets with gambling (lottery) features (high skewness, high volatility, and low price). Overall, the results indicate that banking acquisitions are influenced by gambling attitudes.
Design/methodology/approach
To measure idiosyncratic skewness, we follow Harvey and Siddique (2000) and Kumar (2009) and decompose total skewness into its idiosyncratic and systematic components.
Findings
The evidence demonstrates that offer price premiums and target announcement returns are much higher in bank takeover transactions involving targets with gambling (lottery) features (high skewness, high volatility, and low price). In addition, we find that synergies and bidder announcement returns are lower in lottery‐type acquisitions. The patterns we document are stronger when bidding banks are bigger, target banks are smaller, investor sentiment is above the median, and the Chicago Fed National Activity Index is negative.
Originality/value
This is an original piece of work in the field of banking.
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Guangning Zhang and Wenjia Zhao
This study aims to explore the influence mechanism of inclusive leadership on employees' innovative behavior, in order to provide useful inspiration for leaders and enterprises to…
Abstract
Purpose
This study aims to explore the influence mechanism of inclusive leadership on employees' innovative behavior, in order to provide useful inspiration for leaders and enterprises to develop.
Design/methodology/approach
This study constructs a moderated mediation model based on the valid questionnaire data of 211 employees in service in enterprises and used SPSS23.0 and AMOS24.0 analysis software to analyze the data and test the theoretical hypotheses, and explore the influence mechanism of inclusive leadership on employees' innovative behavior.
Findings
The empirical findings show that inclusive leadership has a significant positive impact on employees' innovative behavior; organizational harmony plays a mediating role in the relationship between inclusive leadership and employees' innovative behavior; and innovation self-efficacy plays a positive moderating role between organizational harmony and employees' innovative behavior. Therefore, inclusive leadership can create a harmonious organizational climate and further improve employees' innovative behavior under the influence of employees' creative self-efficacy, which can promote innovative behavior and sustainable development of enterprises.
Originality/value
The authors put two variables, organizational harmony and employees' innovation self-efficacy, into the same model for correlation tests for the first time, and introduced into the mechanism of inclusive leadership's influence on employees' innovation behavior, which broadened people's understanding of organizational harmony and innovation self-efficacy and broadened the ideas for the subsequent research about the relationship between them.
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Wenjia Han, Wen Jiang, Jason Tang, Carola Raab and Anjala Krishen
This study aims to examine whether indirect customer-to-customer interactions (CCI) affect consumers’ behavioral intentions and how that effect is generated. It also explores the…
Abstract
Purpose
This study aims to examine whether indirect customer-to-customer interactions (CCI) affect consumers’ behavioral intentions and how that effect is generated. It also explores the effect of dining experience on customer behavioral intentions and how that effect varies by party type.
Design/methodology/approach
The research consists of an experimental survey-based study of n = 491 real-world consumers from a marketing research panel. Structural equation models are analyzed to examine hypothesized relationships.
Findings
Indirect CCIs significantly affect all five dimensions of experiential value. Food and beverage (F&B) excellence, aesthetics and service excellence positively affect customer revisit intentions and word-of-mouth intentions via restaurant image. Furthermore, party type moderates the effect of aesthetics on behavioral intentions so that the effect is significant for the social diner group only. Customer return on investment and playfulness show non-significant impacts on behavioral intentions.
Practical implications
Managers should be aware that indirect CCIs influence all aspects of the restaurant experience. Since F&B excellence, aesthetics and service excellence affect restaurant image and behavioral intentions, management can operationalize these elements of service. The impact of aesthetics differs by consumers’ party type, enabling management to create unique servicescapes based on their target customer segment.
Originality/value
The study pioneers an investigation of how indirect CCI is associated with behavioral intentions through the mediating effects of experiential value and restaurant image. It contributes to the literature by examining how the impact of diners’ experiences differs by party type.
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Wenjia Han and Billy Bai
This study systematically reviewed pricing research published in leading marketing and hospitality and tourism (H&T) journals between 2010 and 2019. It attempts to concretize the…
Abstract
Purpose
This study systematically reviewed pricing research published in leading marketing and hospitality and tourism (H&T) journals between 2010 and 2019. It attempts to concretize the understanding of the evolving patterns of pricing research in both fields and suggests an agenda for future research in H&T.
Design/methodology/approach
This study performed keyword co-occurrence analyses and co-citation analyses on the bibliographic data of 575 articles from marketing and H&T journals. Content analysis was applied to investigate the emerged topics in H&T.
Findings
The marketing discipline showed a persistent focus on research themes including price promotion, reference price, price fairness and pricing strategy. The H&T domain experienced a significant content enrichment of preexistent research topics. H&T scholars showed a growing interest in studying pricing for sharing economy accommodations and the interplay between pricing and electronic word-of-mouth. While marketing research applied theories from multiple disciplines as the theoretical foundations, H&T studies adopted the hedonic pricing model as an overarching theory.
Practical implications
Future pricing research in H&T may incorporate theories from other disciplines such as psychology, sociology and anthropology to broaden the scope of the study. Besides, innovative study designs and complex data analysis techniques should be encouraged. Topicwise, H&T scholars can dive deeper into price promotion and distribution channel price management.
Originality/value
This is the first study consolidating the pricing literature in H&T and marketing. It also suggests the potential research directions for researchers.
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Ozgur Ozdemir, Wenjia Han and Michael Dalbor
The purpose of this paper is twofold. First, the study examines the prolonged effect of policy-related economic uncertainty on hotel operating performance, particularly the room…
Abstract
Purpose
The purpose of this paper is twofold. First, the study examines the prolonged effect of policy-related economic uncertainty on hotel operating performance, particularly the room demand (occupancy). Second, the study attempts to explain why occupancy drops when the perceived economic uncertainty is high by studying the mediating effect of consumer sentiment in the relationship between economic policy uncertainty and hotel demand.
Design/methodology/approach
This quantitative study uses secondary data – US economic policy uncertainty (EPU) index, University of Michigan's index of consumer sentiment (ICS), and property-level hotel operating data from three states of the US – California, Florida and New York. Data were analyzed using random effect regression and structural equation modeling. Robustness tests were conducted to enhance the reliability of the research findings.
Findings
Random-effects regression analysis reveals that policy-related economic uncertainty has a negative and lead-lag effect on hotel occupancy, average daily rate and revenue per available room (RevPAR). Structural equation modeling results show that the relationship between economic policy uncertainty and hotel occupancy is significantly mediated by consumer sentiment. Robustness test results support the findings from the main analysis.
Practical implications
This study offers valuable implications for the hotel professionals in regard to anticipating the economic impact of policy-related uncertainty on hotel industry and understanding how consumer sentiment affects demand at such crises times. Moreover, the study suggests potential course of actions to deal with declining room demand at times of uncertainty.
Originality/value
This empirical study explores how economic policy uncertainty affects hotel performance at the property level and explains the mediating effect of consumer sentiment on hotel room demand. The study provides a first-hand evidence of how consumer sentiment relates to the perception of economic uncertainty and leads to decline in consumer demand. In that regard, findings of the study have valuable implications for hospitality industry practitioners and relevant policymakers.
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Da Huo, Rihui Ouyang, Aidi Tang, Wenjia Gu and Zhongyuan Liu
This paper delves into cross-border E-business, unraveling its intricate dynamics and forecasting its future trajectory.
Abstract
Purpose
This paper delves into cross-border E-business, unraveling its intricate dynamics and forecasting its future trajectory.
Design/methodology/approach
This paper projects the prospective market size of cross-border E-business in China for the year 2023 using the GM (1,1) gray forecasting model. Furthermore, to enhance the analysis, the paper attempts to simulate and forecast the size of China’s cross-border E-business sector using the GM (1,3) gray model. This extended model considers not only the historical trends of cross-border E-business but also the growth patterns of GDP and the digital economy.
Findings
The forecast indicates a market size of 18,760 to 18,934 billion RMB in 2023, aligning with the consistent growth observed in previous years. This suggests a sustained positive trajectory for cross-border E-business.
Originality/value
Cross-border e-commerce critically shapes China’s global integration and traditional industry development. The research in this paper provides insights beyond statistical trends, contributing to a nuanced understanding of the pivotal role played by cross-border e-commerce in shaping China’s economic future.
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The purpose of this paper is to examine securities analyst independence in China's capital market and the effect on analyst independence of institutional investors’ shareholding…
Abstract
Purpose
The purpose of this paper is to examine securities analyst independence in China's capital market and the effect on analyst independence of institutional investors’ shareholding and separation between control rights and cash flow rights of ultimate controller.
Design/methodology/approach
Using data of China's listed companies from 2006 to 2012, the authors empirically tested the relationship between analyst following and volatility of stock return. And based on the test, the authors investigated the role played by institutional investors’ ownership and separation between control rights and cash flow rights of ultimate controller.
Findings
According to the empirical results, there is a significant negative correlation between analyst following and volatility of stock return. Also, shareholding of institutional investors and the separation between control rights and cash flow rights of ultimate controllers will have an impact on the relationship between analyst following and volatility of stock return. When institutional investors hold higher proportion or the separation between control rights and cash flow rights of ultimate controllers keeps at a high level, the negative correlation between analyst following and volatility of stock return will weaken.
Originality/value
First, based on the theory of market intermediation, the paper examined analyst independence by investigating and analyzing the relationship between analyst following and volatility of stock return. Second, it analyzed the factors affecting analyst independence by integrating enterprise characteristic variable and market characteristic variable on the basis of introducing two variables – shareholding of institutional investors and the separation between control rights and cash flow rights of ultimate controllers.
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Wenjia Han, Ozgur Ozdemir and Shivam Agarwal
Built upon customer engagement marketing theory and uses and gratification theory, this study examines the link between individual social media marketing (SMM) performance…
Abstract
Purpose
Built upon customer engagement marketing theory and uses and gratification theory, this study examines the link between individual social media marketing (SMM) performance indicators and restaurant sales performance at the firm level. Moreover, the study investigates the moderating effect of advertising expenditure on this proposed relationship.
Design/methodology/approach
Random effect regression models were developed in Stata to examine the associations between SMM performance indicators, advertising expenditure, and restaurant firm revenue. Twelve years of SMM data from brands' Facebook pages were collected with a web scraper built in Python. Natural language processing was used to analyze the sentiment of user-generated content (UGC).
Findings
The results suggest that restaurant annual sales revenue increases as the volume of brand posts, “like”s, “share”s and positive comments on restaurants' Facebook pages increase. However, the total number of comments and the number of negative comments show non-significant associations with revenue. Firm advertising expenditure negatively moderates the relationships between sales revenue and the number of “like”s, “share”s, total comments and positive comments.
Practical implications
Restaurants benefit from making frequent posts on SNSs. Promotions that motivate online users to “like”, share, and comment on brand posts should be implemented. Firms with limited advertising budgets are encouraged to actively create buzz on SNSs due to evidenced stronger effects of UGC on sales performance than large advertisers.
Originality/value
This research bridges the gap by studying the effects of individual SMM performance indicators on restaurant financial outcomes. The findings support the effectiveness of SMM; and, for the first time, demonstrate that SMM could generate a more profound impact for firms with low advertising budgets.