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The house money effect is proposed to describe that people appear to consider large or unexpected wealth gains to be distinct from the rest of their wealth, and are thus more willing to gamble with such gains than they ordinarily would be. On the other hand, the availability heuristic describes that people tend to have a cognitive and systematic bias due to their reliance on easily available or associational information. The purpose of this paper is to employ these behavioral perspectives in an empirical model regarding the January anomaly to explore investor behavior in Taiwanese stock market with bonus culture and well-known electronics industry.

This study uses the conventional and standard dummy variable regression model, as employed in prior studies, and further includes some control variables for firm, industry and macro-economic level factors. Moreover, 19 industrial indices for Taiwanese stock market over the period January 1990 to December 2014 are included in this study to examine the hypotheses, except for the 1997 Asian financial crisis and the global financial crisis period of 2007-2009 to avoid the potential effect. On the other hand, the authors also use the entire sample period of 1990-2014 for understanding whether the magnitude of January effect is different.

The empirical results indicate that Chinese bonus payments in January induce a strong January effect in the Taiwanese stock market, especially when most listed firms have positive earnings growth in the preceding year, suggesting a house money effect. Moreover, this study further provides some preliminary evidence that the higher January returns due to bonus culture are apparent only in the electronics industry when both Chinese New Year and bonus payments are in January, implying the role of availability heuristic based on the electronics stocks in investor behavior before the impending stock exchange holidays. Some robust tests show qualitative support.

The major contribution of this study is to extend the existing research by incorporating cultural and industrial factors with behavioral finance, thus enriching the literature on the causes of seasonality for Asian stock markets.

This study also has behavioral implications of investments for investors in the Taiwanese stock market, especially for foreign institutional investors which pay close attention to this market.

This study first applies and examines the culture bonus hypothesis with regard to how employees who receive culture bonuses in January can change their attitudes toward risk and induce the January effect from the concept of mental accounting. Moreover, this study further proposes and examines the extended culture bonus hypothesis related to how the January effect due to culture bonus is different for the electronics and non-electronics industries when taking into account the stock market holidays from the concept of availability heuristic.

Town centre management (TCM) schemes in Spain have generally evolved primarily from a retail perspective, led by small and medium sized (SME) retailers. However, their development has often focused on business goals (e.g. profit, increase in footfall, etc). In doing so, they have often overlooked the very social issues that have embedded retail historically in the socio‐economic matrix of our towns and cities. This paper, adopting a case‐study approach, seeks to re‐address this imbalance by exploring some of the key success factors of Gran Centre Granollers (GCG) – one of Spain's most advanced retailer‐led TCM schemes located in Granollers (near Barcelona).

This paper, adopting a case‐study approach, explores some of the key success factors ofGCC..

GCG's visionary motto of “city, culture and commerce” and its inclusive approach to the management of the area's stakeholders have captured the imagination of the town's independent retailers (75 per cent of them are members of the scheme). It has also proved pivotal in engaging the town's residents with the scheme's vision, purpose and ethical values. This is reflected in the success of their customer loyalty credit card initiative and the steady growth of the scheme's membership from ten to three hundred businesses in the last ten years.

This case study should be of interest to town centre managers, SME retailers, researchers in the social sciences and students of urban regeneration and retail management.

The purpose of this paper is to examine the political influence on the reforms proffered for the banking sector.

The paper is divided into three main parts. First, the paper will examine the background of the financial crisis. The second and main part of the paper is the examination and critique of the White Paper reform proposals. The paper concludes by critically examining the opposition party's reform paper and contrasts the proposals.

The paper concludes that although the bank regulation needs to be reformed, it is debateable whether it is the time or the place or indeed the party that is right to achieve a successful result at the present time.

The implications for the research is that during the next year banking reforms will undergo further changes, therefore, there will be a requirement to revisit and revise the findings in light of the political agenda of the new government.

This paper offers an original insight into the political influences on banking regulation within the UK.

In the last decades, many of the most talented and promising young graduates in the developed economies have joined the financial industry. Simultaneously, ill-designed incentives’ schemes have favored the development of a culture in which excessive greed, free-riders’ behavior, unreasonable appetite for risk, and short-term decision making have endangered the economy and, potentially, have laid the foundations for financial, economic, social, and environmental crises.

In this chapter, we review current challenges in the financial industry from the lens of human and social capital. We examine some of the factors that allowed unethical behavior and a short-term financial focus in the financial sector, examining how compensation and an extremely competitive culture became key elements that favored greedy and manipulative behavior and ultimately generated socially harmful human and social capital in the financial sector. Finally, we discuss the emergence of a number of game-changers (namely, Brexit, FinTech, the growing relevance of ethical standards, and the increasing participation of women and millennials in the industry) that might represent potential promotors of change and help restructure and reshape the financial industry.

This paper aims to discuss the appropriate uses of bonuses and award in recruiting and motivating project employees.

It is a conceptual discussion of human resources management (HRM) practices, supported by the author’s professional experience and observations in real-life project settings.

Bonuses and awards not only provide extrinsic financial rewards but also provide positive feedback to recipients. Extrinsic financial benefits (such as sign-on bonus, and retention bonus) may enhance the total compensation package and positively affect an employee’s job-related decision at least for the short term. He/she may accept a job offer or choose to stay on a project longer until the completion of a critical milestone because of the bonuses. However, positive recognition of employee performance (through the use of spot award, holiday award, or non-financial certificate of appreciation) is also a useful means to motivate employees. In addition, managers on international assignments need to pay attention to practices specific to host countries.

The practices discussed in this paper are based on real-life experience and observations. When they are used properly in conjunction with other HRM arrangements, bonuses and awards can be used to mitigate and delay turnover, and to motivate employees to increase their work performance.

This paper not only draws on theories and information from the HRM and project management literature but also draws from the author’s own management experience. Thus, the relevance and validity of the proposed concepts and practices have been proven in actual functional and project management settings.

Evidence indicates that the distribution of performance‐related pay (PRP) schemes among manual workers is limited and has increased at a much slower rate than with non‐manual workers. Case study evidence from firms with manual PRP schemes is used to investigate this. A successful PRP scheme for manual workers is likely to demand a very careful introduction. Successful operation of a manual PRP scheme is only likely if the organizational culture changes at the same time, or if it is part of a wider process of performance management.

The study examines whether corporate governance moderates the relationship between CEO compensation and earnings management.

The study uses 1,800 firm-year observations from 2005 to 2010 and employ multiple regression analyses and other sensitivity tests.

The study finds a positive relationship between CEO compensation and earnings management. The study’s results also suggest that CEO bonus compensation increases in relation to earnings management and therefore the study infers that managers may become involved in earnings management to increase their compensation. However, the study finds that the relationship is moderated by a strong corporate governance system which reduces the impact of earnings management on CEO compensation.

The study is conducted in a specific context, and therefore it may be subject to a set of limitations. The study emphasises exclusively on whether executives manage earnings to increase their compensation. The study does not consider the issue of several other and potentially contradictory motivations here.

The study’s findings highlight potential implications and offer useful propositions for stakeholders, particularly accounting and corporate governance regulators, to consider. The findings offer a basis for the accounting professions to further discuss and improve accounting standards to provide adequate regulations and monitoring to decrease managerial opportunistic behaviours in earnings manipulations. The findings also emphasise the need for appropriately designed CEO compensation packages in such a manner that improves the manager–shareholder alignment and reduces the information asymmetry problem. The results signify that corporate governance plays a vital role in mitigating the relationship between CEO compensation and earnings management.

This study adds to the existing literature by documenting empirical support on the link between earnings management and CEO compensation against a backdrop of high demand for strong corporate governance practices.

Over the last decade, trust repair has become an important theoretical and practical concern in HRM. The purpose of this paper is to explain why organisations fail to repair their stakeholders’ trust following a series of trust breaches.

Archival data is used to investigate the Royal Bank of Scotland (RBS). Using the analytical frame of the detective novel, the authors analyse reputational scandals in RBS, and in doing so, they explore the interweaving of two stories: the story of the “crime” (the bank's actions which led to breaches of trust) and the story of the “detectives” (parliamentary, regulatory and press investigators).

Based on their analysis, the authors argue that the organisation's failure to repair trust is associated with ineffective detection of what went wrong in the bank and why.

HR practitioners dealing with similar situations should understand the complicated and unfolding nature of repeated transgressions, and the reasons why previous trust repair efforts may have failed.

An organisation may be showing willingness to accept responsibility for the violation of trust, but while new transgressions happen, trust repair efforts may fail. Therefore, what is needed in organisations is a longitudinal analysis that takes into account organisational history, including earlier wrongdoings.

The paper is one of the few analysing trust repair from a process perspective and using the metaphor of the detective novel to provide insights into organizational reintegration.

Examines the organizational implications of innovative reward structures, with particular reference to gainsharing. Focuses on exploring beyond the impact of compensation on productivity and profitability, which are essential considerations in designing a compensation scheme. Explores the connection between compensation and organizational development – the ways in which incentives and rewards contribute to improved utilization of human resources and capabilities within organizations. Assesses the relationship between gainsharing and organizational development, with particular attention to features such as work design, employment relationships, structure, culture and workplace attitudes and behaviour. Rounds off the discussion with a look at several examples of firms which have introduced innovative compensation schemes, to determine what lessons can be drawn from their experiences. Concludes with an assessment of the strategic calculations that should inform decisions about introducing innovative compensation schemes, especially gainsharing.

The purpose of this paper is to examine how firm growth, and its decomposition into acquisitive and organic growth, can serve as an antecedent to the disparity in pay between the CEO and other top management team (TMT) members.

Drawing on tournament theory, the authors argue that acquisitive and organic growth strategies have different effects on CEO-TMT pay disparity.

The authors find that acquisitive growth, measured through the number and size of acquisitions, increases CEO-TMT pay disparity while organic growth has no effect on CEO-TMT pay disparity.

The findings, based in the context of the Netherlands, imply that boards in their monitoring activity may need to take into account the potential incentive effects of acquisitive activity as CEOs may have a greater motivation to engage in acquisitions than their fellow TMT members.

This paper contributes to the literature on relative compensation and incentives and the literature on managerial compensation and firm strategy. To investigate the role of firm growth in increasing CEO-TMT pay disparity, the authors adopt a fine-grained approach along two dimensions. First, the authors disaggregate firm growth into organic and acquisition driven firm growth. Second, the authors disaggregate pay disparity in these components.