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This study evaluates the forecasting performance of different predictive measures for the future exchange rate variability. Results seem to indicate that the out‐of‐the‐money ISD outperforms the at‐the‐money ISD and other predictive measures. Thus, when ISD is used to forecast future exchange rate variability, out‐of‐the‐money options should be selected instead of using all other options to compute the complicated weighting schemes.

The purpose of this paper is to examine the impact of the target and bidder reference points on the method of payment in mergers. When considering initial and final results for target and bidder, the target appears to have more negotiating power than the bidder in achieving the financial mix preference that was initially articulated.

The authors examine the impact of target and bidder reference points on the consideration sought by the target and the consideration offered by the bidder. The authors test whether the target reference points has an impact on the final method of payment agreed upon by the target and the bidder.

The authors find that targets with a longer distance to their respective target reference points prefer to receive cash financing in the consideration sought, while bidders with a longer distance to their respective reference points prefer stock financing in consideration offered. The authors also find evidence that target’s longer distance to its reference point is associated with the use of cash over stock, while the bidder reference point has no impact on the final method of payment used in the merger.

These insights may be used by the management to formulate the optimal mix of financing in M&A transactions.

This is an original paper exploring the effect of behavioral finance on corporate decision making.

Across different research fields, it is increasingly acknowledged that gender is not a binary variable and goes beyond the male–female dichotomy. At the same time, gender is a prominent social cue that affects evaluations and interactions among individuals. Thus, gender can impact social processes on many levels in complex ways. Meetings provide arenas where key social processes unfold that are relevant to the organization. Understanding which role gender takes in this context is therefore central to organizations as well as meeting research. This chapter provides a critical review of research to date on social influence in meetings, specifically zooming in on the role of gender. The authors conducted a multi-step systematic literature review and identified 43 studies across a wide area of disciplines (e.g., psychology, communication, and management). The authors put special emphasis on the methodologies employed across this work since a comprehensive understanding of the applied methods is core for a synthesis of research results. Through the analysis, the authors pinpoint six variables – individual gender, sex role orientation, gender composition, gender salience, contextual factors such as task type and organizational settings, and the construction of gender as a social concept – that are directly related to gender and which represent factors that are critical for the role of gender in the meeting context. Thereby, this chapter aims to provide a roadmap for researchers and practitioners interested in the role of gender during workplace meetings. The authors conclude by highlighting methodological and managerial recommendations and suggest avenues for future research.

The purpose of this paper is to examine the misvaluation hypothesis using a relative reference point (RRP) in mergers and acquisitions (M&A) market.

The paper studies 1,878 M&A deals in the US market announced between January 1985 and December 2014.

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.

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.

Examines the USA‐Japan trade controversy, arising from the extended trade imbalance between them, with respect to the most contentious product categories. Then provides a statistical assessment of the changes that have occurred in Japanese trade between 1985 and 1989. The findings suggest little improvement over the time period.

The Foreign Corrupt Practices Act (FCPA) of 1977 and its amendment – the Trade and Competitive Act of 1988 – are unique not only in the history of the accounting and auditing profession, but also in international law. The Acts raised awareness of the need for efficient and adequate internal control systems to prevent illegal acts such as the bribery of foreign officials, political parties and governments to secure or maintain contracts overseas. Its uniqueness is also due to the fact that the USA is the first country to pioneer such a legislation that impacted foreign trade, international law and codes of ethics. The research traces the history of the FCPA before and after its enactment, the role played by the various branches of the United States Government – Congress, Department of Justice, Securities Exchange commission (SEC), Central Intelligence Agency (CIA) and the Internal Revenue Service (IRS); the contributions made by professional associations such as the American Institute of Certified Public Accountants (AICFA), the Institute of Internal Auditors (IIA), the American Bar Association (ABA); and, finally, the role played by various international organizations such as the United Nations (UN), the Organization for Economic Cooperation and Development (OECD), the World Trade Organization (WTO) and the International Federation of Accountants (IFAC). A cultural, ethical and legalistic background will give a better understanding of the FCPA as wll as the rationale for its controversy.

Volatility has become a traded commodity, and the value of extricating the implied volatility for a given underlying asset’s market value from observed option premia has long been recognized. This contribution offers a least-squared error approach based on Standardized Options that offers the potential to overcome the well-known problem of “smiles and frowns.”

The case has been tested and proved significant as a part of executive educative courses. Students and participants are pushed to consider practical options. The audience for this case study could be BBA students, MBA students, postgraduate management students or students who chose marketing as their area of specialization.

• Strategic management courses/modules at the intermediate level.

• Marketing management courses/modules at the entry/intermediate level.

When the instructor wants to discuss marketing models like segmentation, targeting, positioning (STP) or marketing strategy model during the course, he or she may use this example.

This instructor’s manual accompanies the case entitled “Krishivan Agri Tourism: Challenges for Sustainability.” This case study highlights the entrepreneur’s struggles with his resort’s limited audience, lower weekday occupancy and weekday reach. The government’s declaration of a lockdown and the COVID-19 epidemic ultimately led to financial losses and stressed cash flow. The businessman understood the enormous potential of the Indian agritourism market. It was a turbulent time for him to evaluate his strategies to sustain in the market. The case illustrates the owner’s struggle to survive and prosper in a commercial setting. The scenario can be used by the instructors to talk about risk mitigation strategies such as promotion, marketing and strategy analysis. Readers must consider difficulties related to corporate success strategically. The proposed responses to the discussion questions in the instructors’ manual are provided here. It can be taught in management courses to handle topics like marketing management, strategic marketing, STP and entrepreneurship, among others.

Marketing management and strategic marketing in Management courses at the intermediate level.

The Black‐Scholes (B‐S) model in its various formulations has been the mainstay paradigm on option pricing since its basic formulation in 1973. The model has generally been proven empirically robust, despite the well documented empirical evidence of mispricing deep‐in‐the‐money, deep out‐of‐the‐money and, occasionally, at‐the‐money options with near maturities [see Galai (1983)]. Research on explaining the observed pricing anomalies has focused on the variance of the return of the underlying asset, which, in the case of the B‐S model, is assumed to remain invariant over time. The variance term is not directly observable, leading researchers to speculate that pricing discrepancies may be caused by misspecification of this variable. More specifically, interest in the volatility variable has centered about the implied standard deviation (ISD).