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This study aims to examine how the relative importance of a search versus a credence attribute, strategically addressed in a flu vaccination advertisement, varies as a function of message sidedness. A search attribute was designed to highlight the affordability of flu shots, and a credence attribute addressed the potential health benefits of flu vaccination.

Two experiments were designed to explore how the relative persuasiveness of search versus credence attributes varies as a function of message sidedness in the context of flu vaccination advertising. In Experiment 1, the search–credence attribute type was manipulated by addressing either the affordability (e.g. “Get free flu shots”) or indirect health benefits of flu vaccines (e.g. “Improve herd immunity/community health”). In Experiment 2, an individual-level credence attribute (e.g. “Strengthen your immune system”) was created and compared to the other two attribute conditions used in Experiment 1: a search versus a societal credence versus an individual credence attribute.

Experiment 1 (N = 114) revealed the relative advantage of a search attribute (free flu shots) in the two-sided persuasion. Experiment 2 (N = 193) indicated that the persuasive impact of a societal credence attribute (herd immunity/community health) was greater in the two-sided message condition (vs one-sided message condition).

Relatively little research has examined how consumers respond to strategic flu prevention and vaccination messages promoting either credence or search attributes. Motivated by the need to investigate the relative effectiveness of stressing “herd immunity” versus “free flu shots” in flu vaccination advertising, this study examines how the effects of these distinct attributes on flu vaccination judgments differ between two-sided (e.g. “No vaccine is 100% effective”) and one-sided persuasion.

The purpose of this paper is to identify primary housing information data set to make an informed decision for key stakeholders to determine the most cost effective refurbishment solution among various alternatives in a building information modelling (BIM) system.

A building simulation approach in conjunction with a hypothetical case study using BIM software (Autodesk Revit) was adopted to identify primary housing information data set and to examine how housing information data set is processed within a BIM system.

Housing information data set such as physical dimensions, energy performance, associated costs, risk level, weather data and other relevant data should be prepared at the outset of a project to determine the most cost effective refurbishment solution. Furthermore, BIM can enable both clients and construction professionals to make informed decisions about diverse climate risk resistant options by providing reliable cost estimations of them at the early design stage.

Actual housing information for the BIM simulation is limited, and as a result, hypothetical housing information based on the UK Government data were used instead.

This research will provide essential housing information data set to utilize BIM effectively and efficiently for refurbishing climate risk vulnerable housing.

This research explores possibility to utilize BIM for climate risk mitigation in the housing sector, and reveals primary housing information data set for BIM to develop a climate resistant housing refurbishment solution.

There has been significant interest in the classification of exchange rate regimes in order to investigate a wide range of hypotheses. Studies of the effects of exchange rate regimes on crises and other aspects of economic performance can have important implications for policy choices. The paper provides a guide to the major new large data sets that classify exchange rate regimes and to critically analyze important methodological issues.

The study surveys and critiques the literature and provides theoretical analysis of major issues involved in classifying exchange rate regimes.

The study finds that all of the new data sets have problems but some have more problems than others and several of them are substantial improvements on what was previously available. It is also shown that the best ways to classify depend on the issue being addressed and that for detailed studies variants of measures using the concept of exchange market pressure are the most promising. Directions for future research are also discussed.

The paper makes researchers aware of the new data sets that are available and discusses their strengths and weaknesses. It also presents original analysis of several of the major conceptual issues involved in classifying exchange rate regimes.

This paper re-examines the relationship between interest rate changes and bank stock returns using the Japanese experience. Specifically, we test the relationship under two different regulatory regimes. During the first regime (1975–1983), there was strict regulation of the financial system and significant oversight of bank activities, whereas the latter regime (1984–1994) represented a period of financial liberalization and interest rate deregulation. The results presented here indicate that interest rate changes negatively affected Japanese bank equity in the post-regulatory period, but not during the period of heavy regulation. Additionally, we also find that most of the short-term rate effects were channeled through volatility proxies while long-term effects were channeled through yield spread and shape effects. These findings represent new and important insights into the relationship between interest rate changes and bank stock returns.

Using a sample of 466 grants of stock options to executives of Japanese firms over the years 1997–2001, this study tests the managerial power theory of compensation design developed by Bebchuk, Fried, and Walker (2002) and Bebchuk and Fried (2004). This theory argues that managers of firms with weak corporate governance will use their “power” to design executive compensation that is “manager-advantageous.” Using our option grants sample, we test to determine if any of the firm's governance mechanisms are able to limit managerial self-dealing with respect to executive stock options. We find that smaller boards and a higher percentage of independent directors are important governance mechanisms for the control of managerial influences in the design of stock-option compensation. An alternative hypothesis, that firms elect to grant advantageously designed options to encourage risk taking by managers, is not supported by our empirical results. Finally, we determine that the market response to the announcements of such grants varies inversely with the extent to which the options are managerially advantageous. Overall, we conclude that managerial power effects are present in the design of executive stock options and that theory of managerial power advanced by Bebchuk et al. holds internationally.

Due to the existence of keiretsu networks and influential bank shareholders, managerial-ownership is not viewed as important in Japan. With the recent decline in the power and influence of Japanese banks, this view might now be obsolete. We present evidence that managerial ownership has become an alternative mechanism for corporate governance in Japan. Using 1993 and 1996 data, we find that firms with significant managerial equity ownership are typically non-keiretsu firms and hold less bank debt. Further, these same manager-owned firms exhibit more control potential and make more discretionary expenditures than do other firms. Overall, our findings suggest that managerial equity ownership is a substitute governance mechanism for monitoring by banks and keiretsu.

The change in CEO pay after their firms make large corporate investments is examined. Whether the change in CEO pay is a beneficial practice or harmful practice to firms is investigated.

A sample of firms that make large corporate investments is identified. For this sample, we identify the change in CEO pay before and after the investment, and we also measure the pay-for-size sensitivity of these investing firms.

For firms that make large corporate investments, CEOs get significantly more option grants when their firms’ stock returns are negative after the investments and these investing CEOs get more option grants than noninvesting CEOs.

The present study suggests that firms may have to increase CEO pay after large corporate investments to encourage investment. However, the results may also be consistent with an agency cost explanation. Future research should try to distinguish between the two explanations.

The study reveals a potential way to prevent CEOs from underinvesting.

The study provides important insights to shareholders on how to encourage CEOs to get their firms to invest, and on how to view CEO pay increases after their firms invest.

Purpose – The relation between research and development (R&D) expenditures and bondholder wealth is examined.

Methodology/approach – A sample of firms that increase R&D expenditures is partitioned into two subsamples: firms with high default risk versus firms with low default risk. For each subsample, we examine the effect of R&D increases on bond returns and default risks.

Findings – For firms with high default risk, R&D increases have a negative impact on bond returns and default risk. Further, there is a wealth transfer from bondholders to stockholders surrounding R&D increases. Neither of these results is found for firms with low default risk.

Research limitations/implications – The present study highlights the importance of assessing firm's existing default risk to understand the effects that R&D expenditures have on bondholders.

Social implications – The study reveals a potential social welfare and economic cost, as it reveals that stockholders may be able to gain wealth at the expense of bondholders.

Originality/value – The study provides important insights to bondholders on how firms’ investment policies, such as R&D expenditures, may affect their wealth.