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This paper aims to examine the effects of narrowing social distance with celebrity endorsers (i.e. via close relationship social categories) and their origin (i.e. local or international) on consumer attitudes about advertisements. It is proposed that using such a relational approach to celebrity endorsement, where celebrities are framed as socially close social categories, leads to more favorable attitudes toward the advertisement.

A pilot test on actual advertisements and three laboratory experiments tested the proposed hypotheses on the effects of varying celebrity social distance levels, with self-referencing as mediator, on attitudes toward the advertisements.

Celebrity endorsements are more effective when the advertisement features celebrities as socially close social category; furthermore, these effects are more pronounced when the celebrity is local as opposed to foreign. The study also proposes that consumer self-referencing vis-a-vis celebrities’ social distance through framed social categories mediates these effects.

Anchored in the identity and social identity theories, implications on relational approaches to celebrity endorsements and international marketing communications are discussed together with the fact that Asian culture inherently subscribes to relational celebrity endorsements.

The purpose of this paper is to examine local consumers’ acculturation process as they observe, encounter and shop with an influx of outsiders.

The multi-year qualitative study (involving in-depth interviews and netnography) investigates Hongkongers’ adaptation to encounters with Mainland Chinese shoppers in Hong Kong.

The authors focus on the world of luxury brand consumption, which plays a key role in signaling a newfound status for Mainlanders, and a change in identity construction for Hongkongers. Hongkongers’ acculturation process in response to large numbers of Mainland luxury shoppers includes emotional responses, behavioral adaptation and identity negotiation.

This research has theoretical implications for consumer acculturation theory.

This research has managerial implications for consumers’ luxury consumption experiences.

First, the authors extend the consumer acculturation literature by focusing on the adaptation of locals to visitors. Unlike other acculturation studies that focus on poorer immigrants from less industrial countries to a wealthy nation, the study focuses on local perspectives of elite Hong Kong consumers about Mainland Chinese visitors who are economically well-off but lack cultural capital. Second, emotions are found to be an important component of acculturation and their causes and consequences are analyzed.

The purpose of this paper is to examine the influence of board gender diversity on the transparency of corporate political disclosure (CPD).

Two empirical proxies, CPD transparency and policy transparency, are constructed from a data set jointly produced by the Center of Political Activity and the Carol and Lawrence Zicklin Center for Business Ethics Research. The CPD transparency score measures the level of transparency in voluntary corporate disclosure of the amount of political contributions and the identity of the recipients as well as the titles and names of the executives who authorize the political spending. The policy transparency score measures the level of transparency in the voluntary disclosure of the policies governing corporate political spending. Board gender diversity is measured by the percentage of women on the board of directors.

Higher proportions of female directors are associated with more transparent disclosure of political contributions after controlling for a set of corporate governance and firm-level variables.

This study is the first to examine whether and how gender-diversified boards enhance the transparency of CPD. It contributes to the literature by providing evidence that gender-diversified boards enhance corporate governance.

This study aims to examine whether the pay gap between the chief executive officer (CEO) and non-executive employees affects the firm’s research and development (R&D) efficiency.

The dependent variable is the firm’s R&D efficiency, defined as a percentage increase in revenue from a 1-per cent increase in R&D spending. The main independent variable is the CEO-employee pay gap, defined as the ratio of annual total compensation for the CEO to the average of non-executive employees of the firm. The authors estimate fixed-effects models to examine the association between R&D efficiency and the pay gap between CEO and non-executive employees.

Results indicate a negative and significant association between R&D efficiency and CEO-employee pay gap, which suggests that a wider pay gap reduces employee motivation and effort, consistent with pay equity theory. We also find that the CEO-employee pay gap negatively moderates the relationship between employee pay growth and R&D efficiency

Recently enacted pay gap disclosure requirements mandated by the Dodd-Frank Act will make the disparity between CEO and non-executive compensation more salient. This study provides evidence of a firm outcome associated with that disparity.

This study is among the first to investigate the impact of the pay gap on R&D efficiency, a firm outcome not previously explored in the literature. This study also investigates CEO-employee pay gap’s role as a factor that moderates the effects of employee pay growth and institutional ownership on R&D efficiency

This paper aims to investigate the association between analyst forecast dispersion and investors’ perceived uncertainty toward earnings.

A new measure for investors’ expectations of earnings announcement uncertainty is constructed, using changes in implied volatility of option contracts prior to earnings announcements. Unlike other proxies of uncertainty, this measure isolates the incremental uncertainty regarding the upcoming earnings announcement and is a forward-looking measure.

Using this new proxy, this paper finds a significant negative correlation between analyst forecast dispersion and investors’ uncertainty regarding the upcoming earnings announcements. Further tests show that this negative correlation is driven by analysts’ private information acquisition rather than analysts; uncertainty toward upcoming earnings announcements. Additional cross-sectional tests show that this negative relationship is more pronounced in the subsample with lower earnings quality.

This paper helps to further the understanding of the information content of analyst forecast dispersion, particularly the ways in which they gather and produce private information and their incentives for so doing.

This paper introduces a new market-based and forward-looking proxy of earnings announcement uncertainty that should be useful in future research. This paper also provides original empirical evidence that analysts gather and produce an additional private information to the market when facing noisy signals and that their information reduces investors’ uncertainty toward upcoming earnings announcements.

This study aims to examine a firm’s disclosure properties subsequent to receiving a going-concern opinion.

A difference-in-difference research design was used to control for endogeneity issues. Annual report readability is used as a proxy for firm disclosure.

The results indicate a negative and significant association between issuance of a going-concern report to a firm and the firm’s readability index in the subsequent year. In other words, after receiving a going-concern opinion, a firm’s annual report exhibits increased readability. The results, when broken into subsamples of surviving and failing firms, are concentrated in the surviving firms.

Prior research has shown that firms change their disclosure properties due to endogenous choices motivated by incentive or exogenous shocks. The results of this study, however, suggest that firms that receive going-concern opinions are incentivized to be more forthcoming in disclosing their financial information.

To the authors’ knowledge, this study is the first to investigate how firms’ general disclosures change subsequent to receiving a going-concern opinion.

The purpose of this paper is to introduce analyst estimates and option pricing-based variables in modeling material accounting misstatements.

The paper uses a logistic regression model to analyze a comprehensive sample of AAER and non-AAER firms listed in the USA.

By applying a cross-sectional, sequence of time-series logistic regression models, the authors find better identifiers of ex ante risk of fraud than prediction models based on an inspection of abnormal accruals. These identifiers include the managed earnings (ME) component of a firm and the change in a firm’s option contracts’ implied volatility (IV) prior to an earnings announcement.

The empirical findings contribute to an understanding of earnings manipulation (fraud) and should be of value to auditors and regulatory bodies interested in identifying financial statement fraud, particularly the Securities and Exchange Commission, which has been improving its accounting quality model (AQM or Robocop) fraud detection tool for many years. The results contribute substantially to enhancing the current accounting literature by introducing two non-accrual-based measures that significantly enhance the predictive power of an accrual-based accounting misstatement prediction model.

This paper radically departs from relying on the assumption that the clearest and easiest pathway to detect fraud reporting ex ante is through an examination of accruals. Instead, the authors use a richer source of information about the possibility of a firm’s misstatement of its financial accounting numbers, namely, analyst estimates of ex post earnings and the IV from exchange-traded option contracts.

Purpose: This paper uses performance theory to explore how wine-tourism experiences are orchestrated by wine tour guides to encourage engagement of consumers. It describes how such orchestration is built on material elements such as landscapes, architecture, vineyards, production facilities, and wine tastings.

Design/methodology/approach: A multi-layer ethnographic research on wine-tourism was employed. The interviews, observations, and field notes were analyzed through the lens of performance theory. A constant comparative method was used to identify emergent patterns, and a hermeneutic method was used to interpret the data.

Findings: The paper builds on performance theory and delineates the ways in which guides co-create intense experiences with participants. It portrays how tour guides often adjust their theatrical scripts to consumers’ unique needs through creative variations: surprise treats, activities, and personal stories. When guides take pleasure in tours, participants do as well, resulting in memorable co-created experiences. The tours feature processes such as pitching and relation-building techniques that call upon identity, morality, and materiality scripts, which ultimately build a sense of social obligation among participants toward tour guides and winery staff.

Originality/value: From a theoretical perspective, the paper adds value to the discussion of performance in tourism by suggesting that the service blueprint, architecture, and employee training are only part of the story. This paper shows how consumer engagement and interactions between participants, guides, architecture, and landscapes are essential elements of memorable experiences.

Research limitations: Like other studies, there are limitations to our study as well. Our study only included one-day wine tours. A broader investigation of strategic alliances between tour companies and wineries, and how wine tourists experience and sustain a sense of social obligations to the wineries they visit, will provide further insights into how wine-tourism functions as a co-creative emergent form of consumption involving individuals, products, and processes.

The purpose of this paper is to identify the relationship between knowledge transfer characteristics in alliance and alliance governance mechanisms, the influence of alliance governance mechanisms on knowledge transfer consequences and investigate the role of environmental uncertainty in knowledge transfer of alliance.

Survey data were collected mainly in high-tech industries of China, the firms in which often establish alliance for the purpose of learning and knowledge transfer often takes place in that alliance. Finally, 293 usable samples were included in subsequent analysis. Multiple regression analysis was used to examine the hypotheses.

The extent of relational (/formal) governance mechanism used in alliance has a stronger positive relationship with the extent of tacit (/explicit) knowledge transfer in alliance than with the extent of explicit (/tacit) knowledge transfer in alliance between them; environmental uncertainty impairs relational governance mechanisms and enhances formal governance mechanisms used in alliance; both relational and formal governance mechanisms could facilitate knowledge transfer in alliance; environmental uncertainty hinders knowledge transfer and negatively moderates the relationship between alliance governance mechanisms and knowledge transfer.

This paper finds the relationship between knowledge transfer in alliance and alliance governance mechanisms, and the role of environmental uncertainty, providing managers with direct implications about how to manage alliance with different knowledge transfer characteristics for the purpose of facilitating knowledge transfer in alliance; provides managers more details about the dark side of the environmental uncertainty in knowledge transfer, also reminds public policy-makers paying enough attention for the improvement of institutional environment to deal with uncertainty.