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The purpose of this paper is twofold: first, to propose a new robust volatility ratio (RVR) that compares the intraday high–low volatility with that of the intraday open–close volatility estimator; and second, to empirically test the proposed RVR on the cross-sectional (CS) average of the constituent stocks of India’s BSE Sensex and US’s Dow Jones Industrial Average index to find the evidence of “excess volatility.”

The authors model the proposed RVR by assuming the logarithm of the price process to follow the Brownian motion. The authors have theoretically shown that the RVR is unbiased in the case of zero drift parameter. Moreover, the RVR is found to be an even function of the non-zero drift parameter.

The empirical results show that the analysis based on the RVR supports the existence of “excess volatility” in the CS average of the constituent stocks of India’s BSE Sensex and US’s Dow Jones index. In particular, the authors have observed that the CS average of individual constituent stocks of BSE Sensex is found to be more excessively volatile than the US’s Dow Jones index during the period of the study from January 2008 to September 2016, based on multiple k-day time window analysis.

The study has implications for the policy makers and practitioners who would like to understand the volatility behavior in the asset returns based on the RVR of this study. In general, the proposed model can be used as a specification tool to find whether the stock prices follow the random walk behavior or excessively volatile.

The authors contribute to the existing volatility literature in finance by proposing a new RVR based on extreme values of asset prices and absolute returns. The authors implement the bootstrap technique on RVR to find the estimates of mean and standard error for multiple k-day time windows. The RVR can capture the excess volatility by comparing two independent volatility estimators. This is possibly the first study to find the CS average of all the constituent stocks of BSE Sensex based on the RVR.

Government policy mandates information disclosure in financial communications to protect consumer welfare. Unfortunately, low readability can hamper information disclosures’ meaningful benefits to financial decision making. Thus, this experiment tests the product evaluation and decision satisfaction of Korean consumers with less or more subjective knowledge and with or without personal finance education.

A between-subjects experiment examined responses of a nationally representative sample of 400 Korean consumers toward a Korean-language credit card advertisement.

Financial knowledge improves financial product evaluation and decision satisfaction. More readable disclosures improved evaluation and satisfaction among less knowledgeable consumers. Less readable disclosures did not. Consumers without financial education exhibited lower evaluations and decision satisfaction regardless of readability. More knowledgeable consumers and those with financial education performed equally well regardless of disclosure readability.

Financial service providers seeking more accurate evaluations and better decision satisfaction among their customers should use easier-to-read disclosures when targeting consumers with less prior financial knowledge.

One-size-fits-all financial communications are unlikely to achieve public policy or consumer well-being goals. Government-mandated information should be complemented by augmenting financial knowledge and providing personal finance training.

Although almost a quarter of the world’s population lives in East Asia, this is the first examination of readability in disclosures written in East Asian characters rather than a Western alphabet. Previous readability research on Asian-originating financial disclosures has been conducted on English-language texts. This study extends knowledge of readability effects to growing East Asian markets.

This paper aims to propose a framework based on the unbiased extreme value volatility estimator (namely, the AddRS estimator) to compute and predict the long position and the short position value-at-risk (VaR) and stressed expected shortfall (ES). The precise prediction of VaR and ES measures has important implications toward financial institutions, fund managers, portfolio managers, regulators and business practitioners.

The proposed framework is based on the Giot and Laurent (2004) approach and incorporates characteristics like long memory, fat tails and skewness. The authors evaluate its VaR and ES forecasting performance using various backtesting approaches for both long and short positions on four global indices (S&P 500, CAC 40, Indice BOVESPA [IBOVESPA] and S&P CNX Nifty) and compare the results with that of various alternative models.

The findings indicate that the proposed framework outperforms the alternative models in predicting the long and the short position VaR and stressed ES. The findings also indicate that the VaR forecasts based on the proposed framework provide the least total loss for various long and short position VaR, and this supports the superior properties of the proposed framework in forecasting VaR more accurately.

The study contributes by providing a framework to predict more accurate VaR and stressed ES measures based on the unbiased extreme value volatility estimator.

Although microblogs have become an important information source, the credibility of their postings is still a critical concern due to the open and unregulated nature. To understand the antecedents of microblog information credibility, the purpose of this paper is to investigate the dual-role of cognitive heuristics (i.e. the additivity and bias roles) and the effect of gender differences.

This study collected data via an online field survey of active microblog users, and a total of 204 valid responses was received.

This study demonstrates the dual-role of source credibility and vividness, the additivity role of microblog platform credibility, and the bias role of social endorsement. Furthermore, this study also found out gender difference that the additivity role of cognitive heuristics was stronger for men while bias role was stronger for women.

This research enriches the microblog literature by examining the cognitive heuristic determinants as key predictors of microblog information credibility, and contributes to the information credibility literature by identifying and analyzing the dual-role effect of cognitive heuristics and corresponding gender differences.

This study can help organizations better manage their reputation, especially during the reputation crises, and also serves as a reminder to microblog platform operators of the importance of their microblog platform credibility.

This study can help organizations better manage their reputation, especially during the reputation crises, and serves as a reminder to the microblog platform operators of the importance of their microblog platform credibility.

This study investigates the dual-role effect of cognitive heuristics (i.e. the additivity role and bias role) and corresponding gender differences that are less touched on before, and thus provides a more nuanced understanding of the more complex effects of cognitive heuristics.

The purpose of this paper is to explore country‐of‐origin (COO) effects on service evaluation in an emerging market.

To gain insight, 24 in‐depth interviews were conducted with stakeholders in five West African countries. A conjoint analysis was also conducted to further explore COO effects.

Propositions were developed based on findings from the qualitative study and conjoint analysis. Situational personal characteristics, such as motivation and ability to process information, may influence use of COO attributes in evaluating a service. Individual characteristics, such as ethnocentrism and culture orientation, may influence COO preference in service evaluation.

Propositions and findings will assist firms considering entering a market in terms of service offerings and positioning strategies.

While COO and consumer products have been widely studied in the literature, mostly within the contexts of industrialized nations, the paper examines COO effects with a service within the context of an emerging market.

A large body of research has analyzed individual psychological characteristics as antecedents of strategic decision-making. However, this research has mainly focused on trait-based characteristics that explain impaired strategic decision outcomes. Recently, PsyCap has been proposed as an alternative driver of strategic decision outcomes that, in contrast to other drivers, can be influenced by management.

Drawing on research on psychological capital (PsyCap), a psychological construct conceptualized as a state-like individual strength that is malleable, the authors argue that PsyCap exerts an inverted curvilinear effect on strategic decision outcomes. The authors use a computerized strategic decision simulation involving 102 managers to empirically test our hypotheses.

The authors show that PsyCap improves strategic decision outcomes up to an inflection point, after which it negatively affects those outcomes. The authors also show that this effect is mediated by heuristic information processing.

For the empirical study the authors relied on a sample of 102 practicing managers from the financial services industry in Germany.

PsyCap has been shown to be malleable through, for instance, micro-interventions and dedicated web-based trainings. Therefore, depending on managers' PsyCap levels, either further increases in PsyCap or a regulation of this characteristic might be appropriate in order to optimize strategic decision outcomes.

As a state-like individual strength that is malleable, PsyCap might serve as a management characteristic that is particularly important in challenging situations such as the COVID-19 pandemic.

This paper contributes to research on strategic decision making by introducing PsyCap as an important antecedent of strategic decision outcomes that – in contrast to other individual characteristics – is state-like and, hence, malleable.

The purpose of this paper is to investigate the effect of game-speed on brand attitude and mediating role of thought favorability in the speed-attitude relationship in the context of in-game advertising (IGA). Specifically, this investigation employs the Limited Capacity Model of Attention and the heuristic-systematic model to explain the conditions under which in-game brand placements form favorable or unfavorable thoughts about the game and the embedded brand, and subsequent brand attitude.

In total, 78 student-gamers participated in the study. One-tailed independent-samples t-tests and a path analysis were used for hypothesis testing.

Results revealed that fast-paced games resulted in higher thought favorability and more favorable brand attitude than the slow-paced games. Furthermore, the results also showed that thought favorability mediated the relationship of game-speed and brand attitude among Indian gamers.

This paper adds to advertising literature from a non-traditional advertising perspective, primarily in the context of IGA, and explains the role played by game-speed as an antecedent to thought favorability that adds value to thought favorability and brand attitude relationship. Also, the study provides an important implication for the marketers that to generate more positive brand attitudes and high favorable thoughts, advertisers and game-developers must focus on high-speed games.

This study is the first in its stream toward understanding the mediating role of thought favorability in determining the persuasion effect on Indian gamers’ brand attitude in the context of online advertising from attention and elaboration perspectives.

The purpose of this study is to investigate the effect of game-product fit on brand advocacy and mediating role of thought favorability in fit and brand advocacy relationship in the context of in-game advertising (IGA) using congruity theory and heuristic systematic model. This expounds the conditions under which in-game brand placements form favorable or unfavorable thoughts about the game and the advertised brand, and following brand advocacy.

A total of 144 student-gamers participated in the study. One-way ANOVA and a path analysis were used for hypotheses testing.

Results showed that the high-fit game resulted in higher thought favorability and greater levels of brand advocacy than the low-fit game. Furthermore, results also revealed that thought favorability mediated the relationship of game-product fit and brand advocacy among players.

Research on IGA is still in its relative infancy, and how gamers respond to brand placements in games has yet to be fully established. This paper’s theoretical implications are primarily in the context of in-game advertising and explain the role played by game-product fit as an originator to thought favorability that further adds value to thought favorability and brand advocacy relationship.

The study offers important implications for marketers, advertisers, policy-makers in terms of effective game-designing and IGA execution.

Since very little research has been done focusing on mediating role of thought favorability in game-product fit and brand advocacy relationship in the context of IGA from attention and elaboration perspectives, this paper scores as a pioneering study of its kind in India.

As the epidemic of online fake news is causing major concerns in contexts such as politics and public health, the current study aimed to elucidate the effect of certain “heuristic cues,” or key contextual features, which may increase belief in the credibility and the subsequent sharing of online fake news.

This study employed a 2 (news veracity: real vs fake) × 2 (social endorsements: low Facebook “likes” vs high Facebook “likes”) between-subjects experimental design (N = 239).

The analysis revealed that a high number of Facebook “likes” accompanying fake news increased the perceived credibility of the material compared to a low number of “likes.” In addition, the mediation results indicated that increased perceptions of news credibility may create a situation in which readers feel that it is necessary to cognitively elaborate on the information present in the news, and this active processing finally leads to sharing.

The results from this study help explicate what drives increased belief and sharing of fake news and can aid in refining interventions aimed at combating fake news for both communities and organizations.

The current study expands upon existing literature, linking the use of social endorsements to perceived credibility of fake news and information, and sheds light on the causal mechanisms through which people make the decision to share news articles on social media.

This study aims to propose that providers should tailor recovery responses to consumers’ emotional states to improve evaluations and behavioral intentions.

A multi-study approach comprising field and lab data was used. The field study, conducted on the Boston public transport network during a weather crisis, sought to determine how a provider should deliver their recovery response to match the consumer’s affective state. In the lab studies, the importance of tailoring a recovery message to the consumer’s state is experimentally demonstrated while controlling for factors such as consumer brand involvement.

This study finds that an emotion-focused recovery emphasizing empathy should be given to those in an avoidance affective state (i.e. focused on the avoidance of negative outcomes) such as worry. A problem-focused recovery, in which the focus is on the process that led to the failure and the steps that will be taken to correct it, should be provided to those in an approach state (i.e. concerned with advancement and accomplishment) such as anger. This study also finds this effect is more salient under low involvement conditions.

Future research should examine how nonverbal behavior during recovery can be tailored to a consumer’s state.

Service providers are encouraged to tailor recovery messages to consumers’ affective states.

To the best of the authors’ knowledge, this study is the first to examine matching recovery messages to affective states, an important contribution as service failures can elicit a wide variety of affective states that influence how consumers react to recovery messages.