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The causes for the formation of a bubble in the collateral market when agents are provided with homogeneous expectations are explored. This bubbly dynamics will define a sufficient condition for deleveraging.

Theoretical approach with neutral deleveraging.

Findings of the study are defined sufficient conditions for a behavioral rational bubble's formation in a market of collateral and the subsequent deleveraging. The crowd-in effect of the representative bubble is caused by errors in extrapolating information and thus by representativeness, while the crowd-out effect of deleveraging is set off by reverting to a rational heuristic.

The limit is that it is a homogeneous expectations approach, the implication is that cannot be rational speculation.

Even in a simple model of homogeneous expectations a bubble may arise with serious effect on the demand side: models that detect just rational mispricings cannot account for behavioral components that have financial and real effects.

The paper defines how deleveraging may occur even in case of homogeneous expectations. The latter should not be seen just as a limit but also as a signal of the importance of being aware of behavioral components.

To examine the impact of culture on customer service expectations, specifically, how individualists and collectivists use internal and external sources of information to formulate their service expectations.

The context was the airline industry and the subject pool consisted of experienced consumers. A survey was employed to measure individualism/collectivism, various internal/external information sources, and the functional and technical dimensions of “should” and “will” service expectations. Hypothesized relationships were tested using a structural equations modeling approach.

Both individualists and collectivists relied more on external information sources in formulating their service expectations, gave variable weight to the functional and technical components, and used more realistic “will” expectations to judge service offerings. Internal (external) information sources were relatively more important in forming expectations for collectivists (individualists) than for individualists (collectivists), and “will” (“should”) expectations were more diagnostic for collectivists (individualists) than for individualists (collectivists).

Generalizability of the findings is limited due to the specific industry under study (airlines), the sample (two geographically‐proximate sub‐cultures), and the scope of the cultural variables considered (individualism/collectivism).

Whether managers should leverage the functional and/or technical components of services depends in part on the cultural orientation of their customers. Managers should also recognize that customers’ usage of various information sources in forming service expectations is also, in part, culturally determined.

In this era of globalization, researchers and managers alike need to consider the subtle influences of culture on marketing theories and the formulation of service expectations respectively.

This study aims to critically review recent contributions to the methodology of financial economics and discuss how they relate to one another and directions for further research.

A critical review of recent literature on new methodologies for financial economics.

Recent books have made important contributions to the study of financial economics. They suggest new approaches that include an emphasis on radical uncertainty, adaptive markets, agent-based modeling and narrative economics, as well as extensions of behavioral finance to include concepts such as diagnostic expectations. Many of these contributions can be seen more as complements than substitutes and provide fruitful directions for further research. Efficient markets can be seen as holding under particular circumstances. A major them of most of these contributions is that the study of financial crises and other aspects of financial economics requires the use of multiple theories and approaches. No one approach will be sufficient.

There are great opportunities for further research in financial economics making use of these new approaches.

These recent contributions can be quite useful for improved analysis by researchers, private participants in the financial sector and macroeconomic and regulatory officials.

Provides an introduction to these new approaches and highlights fruitful areas for their extensions and applications.

The purpose of this paper is to analyze the influence of online hotel reviews (OHRs) on the fit between strategy and use of the management control system (MCS) in small- and medium-sized hotels in Brazil. The study analyzed the influence of the variable OHR on the fit between the deliberate strategy and emergent strategy, as well as the diagnostic use and interactive use, of MCS.

The study was carried out with the application of a questionnaire in small- and medium-sized hotels in Brazil. The analyses are based on 78 responses from Brazilian hotels. The analysis used the modeling of structural equations by parts (SmartPLS).

The results show the influence that external variables have in the adjustment of management systems. Specifically, the authors present quantitative evidence that OHR plays an important role in the adjustment between the deliberate strategy and the diagnostic use of MCS.

The results have several implications for research and practice.

The results have several implications for research and practice. A practical implication of this work is to understand how external variables (e.g. OHR) can be important in the fit of management systems. This study offers value for managers in that it supports the argument that hotels can benefit from the use of OHR in the MCS fit.

This study provides evidence for the influence of external variables, such as OHR, on the fit between strategy and MCS use. The study contributes to the literature by providing new evidence of the role of guest evaluations in aligning strategies with the use of MCS.

As conceptualizations of expectations in consumer evaluations continue to evolve, researchers have been exploring multiple levels of expectations in satisfaction and service quality evaluations. In 1993 Zeithaml, Berry and Parasuraman proposed that consumers use both desired and adequate expectations in service quality evaluations and a “zone of tolerance” separates these levels. This study extends the Zeithaml et alwork by investigating the zone of tolerance as it relates to consumer experience with the service provider, perceived competitive choice opportunities, and the essentialness of differing service dimensions. Results indicate that consumers readily distinguish between desired and adequate expectation levels; and understanding both expectation levels is important. Although perceptions of what a firm should offer remain relatively stable, perceptions of acceptable performance vary by service dimensions and as consumers acquire experience. In comparison with the traditional SERVQUAL framework, this multiple expectation conceptualization offers service marketers the opportunity to fine‐tune resource allocations.

Although the effects of both news sentiment and expectations on price in financial markets have now been extensively demonstrated, the jointness that these predictors can have in their effects on price has not been well-defined. Investigating causal ordering in their effects on price can further our understanding of both direct and indirect effects in their relationship to market price.

We use autoregressive distributed lag (ARDL) methodology to examine the relationship between agent expectations and news sentiment in predicting price in a financial market. The ARDL estimation is supplemented by Grainger causality testing.

In the ARDL models we implement, measures of expectations and news sentiment and their lags were confirmed to be significantly related to market price in separate estimates. Our results further indicate that in models of relationships between these predictors, news sentiment is a significant predictor of agent expectations, but agent expectations are not significant predictors of news sentiment. Granger-causality estimates confirmed the causal inferences from ARDL results.

Taken together, the results extend our understanding of the dynamics of expectations and sentiment as exogenous information sources that relate to price in financial markets. They suggest that the extensively cited predictor of news sentiment can have both a direct effect on market price and an indirect effect on price through agent expectations.

Even traditional financial management firms now commonly track behavioral measures of expectations and market sentiment. More complete understanding of the relationship between these predictors of market price can further their representation in predictive models.

This article extends the frequently reported bivariate relationship of expectations and sentiment to market price to examine jointness in the relationship between these variables in predicting price. Inference from ARDL estimates is supported by Grainger-causality estimates.

Among all the Asian markets, mainland China was least affected by the economic downturn. It provides a leading source of tourism revenue to Hong Kong. In order to fully capture this market, it is important to satisfy the needs of the mainland Chinese travelers. This study aims to measure the satisfaction levels of Chinese travelers in relation to the hotel services in Hong Kong. The satisfaction levels of the mainland Chinese travelers on 34 hotel service attributes were studied using the disconfirmation paradigm. A total of 203 mainland Chinese travelers were interviewed. The results indicated that mainland Chinese travelers were satisfied with “Availability of personal care amenities”, “Quietness of the room”, “Availability of food and beverage variety” and dissatisfied with “Recreation facilities” “Availability of frequent travelers’ program” and the “Baggage handling service”. Eight dimensions of hotel services were identified. “Service quality and value” and “Augmented product quality” dimensions were found to be more important than others in influencing their overall satisfaction levels and the likelihood of returning to the same hotels. Implications of the findings for hotel operators in Hong Kong were discussed.

The purpose of this study is to determine the impact of disaggregate official development aid (ODA) on economic growth, and ascertain whether bilateral and multilateral aid played complementary role with private sector, government sector and external sector in driving growth of sub-Saharan African economies.

The role of bilateral and multilateral aid in economic growth of sub-Saharan Africa (SSA) is investigated in this study. The vector error correction model (VECM) and generalized method of moments (GMM) techniques are employed in estimating the short-run and long-run impacts, over the period 1980–2020.

The estimation results reveal that the effect of bilateral aid is positive, and more significant than multilateral aid. Their effect on economic growth is, however, less significant than the effects of domestic private investment and government spending. Nonetheless, aid complemented private and government sectors in facilitating growth. External trade is the only exogenous variable in estimation that is insignificant. The results further reveal that economic growth is unable to significantly respond to its own lag. Generally, the estimation results conform to theoretical expectations.

One major implication of the findings is that SSA countries have benefited substantially from development aid. It is, therefore, important for these countries to develop stronger institutions that would attract more inflows of development aid.

The study was motivated by the fact that less attention has been given to the role of disaggregate ODA in economic growth of African countries. Previous research works have tended to focus more on aggregate ODA. Furthermore, adequate research has yet to be done on how ODA complements the private sector, government sector and external sector in facilitating growth of African countries. These issues are investigated in the study.

Organizations are reorganizing into collaborative subunits or teams in order to generate innovative ideas and stay ahead of the competition. Traditional control systems were established to direct employees and prevent control problems, such as fraud or theft, and were designed for vertically managed systems where managers and supervisors made decisions and their subordinates performed tasks. As companies evolve into a team-based structure, decisions are made at lower levels. Restructuring for teams makes information more available and decisions more transparent. Traditional controls no longer apply and can be detrimental to empowerment and the generation of innovative ideas. With increased empowerment there will be a need for different controls and maybe even more control. Innovation can thrive when collaboration takes place and collaboration can occur best when teams are empowered. This chapter presents three separate domains – models of empowerment and innovation, decision-influencing and decision-facilitating information, and management control systems – and illustrates how they interact in a holistic way to either enhance innovative culture or inhibit the generation of ideas.

This study examines the relationship between the use of management controls and the perception of meaningful work. Meaningful work is an important driver of individual performance of managers, and employees and can be enabled by sufficient use of management controls. The purpose of this paper is to address this issue.

Based on bibliometric analyses and a structured literature review of academic research studies from the organizational, management and accounting literature, the authors develop a conceptual model of the relationship between the use of management controls and the perception of meaningful work.

First, the authors propose that the use of formal management controls in a system (i.e. the levers of the control framework) is more powerful than using unrelated formal controls only. Second, they suggest that the interaction of a formal control system together with informal controls working as a control package can even stretch the perception of meaningful work. Third, they argue that the intensity of the control use matters to enhance the perception of meaningful work (inverted u-shaped relationship).

This study presents the first conceptual model of the relationship between the use of management controls and the perception of meaningful work. It provides valuable implications for practice and future research in the field of performance management.