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This paper aims to examine the effect of product market competition on firms’ unethical behavior (FUB) in the Chinese insurance industry and to further explore the boundary conditions of the main effects. On the basis of China’s commercial foundation, the study constructs a conceptual framework of FUB by drawing from the perspective of horizontal competition.

Data were collected from 52 property insurance firms at the branch level observed over the six-year period, 2011-2016. Within this framework, market power and market concentration were used to describe product market competition at firm and industry levels, respectively. The moderating effect of market munificence was analyzed to reveal the theoretical boundaries of the main effect. By drawing upon cost–benefit analysis and social network theory, the study used negative binomial model and Poisson model to quantitatively examine the relationship.

The relationship between product market competition and FUB is curvilinear. Especially at the firm level, market power exhibits a U-shape relationship with FUB; at the industry level, market concentration exhibits a U-shape relationship with FUB. In addition, market munificence positively moderates the impact of firm’s market power on FUB, whereas, market munificence negatively moderates the impact of industrial market concentration on FUB.

This paper explored a new type of unethical behavior that concerns consumers or the third party by emphasizing horizontal competitive contexts; it also provides a better understanding of the FUB–financial performance relationship from the perspective of competition. The moderating effects suggest that when the cause of FUB is different (market power vs market concentration), firms may make opposite ethical choice. However, the sample is from a single industry; it will be fruitful to further verify these findings in other industries such as the manufacturing sector. Moreover, the definition of FUB is confined to explicit forms such as participation or collusion but there is no way to measure the implicit forms of FUB.

First, the governance of FUB should not only focus on the firms themselves, but also take into account the industrial market structure. Second, proper use of governance measures for FUB can increase firms’ benefits from “compliance with the law”, enticing firms to decrease FUB. The third, firms with weak market positions, facing fierce competition, should not be involved in FUB for short-term benefit; indeed, a low-cost strategy can be adopted as the dominant competitive strategy. While, in cases of highly concentrated market structure, firms should strive to avoid involvement in FUB through collusion with other rivals.

As it is a very common phenomenon that firms in competitive relationships may adopt FUB toward third parties or consumers, this trend has become a hot topic in the economic and social development in China. The study’s conclusions reveal that a more proactive and ambitious ethical decision is desirable for all kinds of firms; moreover, firms should make a rational choice between “short-term interest” and “long-term survival”. When firms identify the compliance of business ethics as an opportunity to differentiate themselves and perceive the benefits of decreasing FUB as outweighing the costs, the level of FUB will be inhibited, and social welfare will increase.

The primary contribution of this research resides in identifying product market competition as a previously unexplored predictor of FUB, thus revealing the dark side of product market competition. In addition, nonlinear relationships between product market competition and FUB indicate that situations of competition exert an important influence on FUB both at the firm and industry level. This paper’s conclusion provides a more meticulous theoretical explanation for FUB. This research demonstrates that the traditional ethical framework is not sufficient to explain FUB in a horizontal competitive context. Indeed, resource constraints and competitive pressures should also be considered.

This paper aims to improve knowledge regarding the complicated relationship among brand cultural symbolism, consumer cultural involvement, brand authenticity and consumer well-being. Although some literature has mentioned the relationship between the above concepts, these relationships have not been confirmed by empirical studies.

Based on the self-determination theory and the authenticity theory, a causal model of brand cultural symbolism, consumers’ enduring cultural involvement, brand authenticity and consumer well-being is developed. The structural equation model and multiple regressions are used to test the hypothesis. The primary data are based on an online survey conducted in China (N = 533). A total of six brands from the USA, France and China were selected as study samples.

The data reveal that brand cultural symbolism has a positive relationship with brand authenticity and consumer well-being; brand authenticity partially mediates the relationship between brand cultural symbolism and consumer well-being; and find a weakening effect of consumers’ enduring cultural involvement on the relationship between brand cultural symbolism and brand authenticity.

The weakening effect of consumers’ enduring cultural involvement on the relationship between brand cultural symbols and brand authenticity should be further verified through experiments and the model should be tested in different cultural backgrounds from a cross-cultural perspective.

The present study offers novel insights for brand managers by highlighting brand authenticity as the fundamental principle that explains the effect of cultural symbolism of brands, consumers’ enduring cultural involvement, as well as eudaimonic and hedonic well-being.

The findings suggest that cultural significance of a brand is closely related to brand authenticity and consumer well-being; however, on consumers with a highly enduring cultural involvement, the effect of brand culture symbolism and brand authenticity is weakened. This is an interesting finding because in this case, consumers may measure brand authenticity more based on the brand actual behavior (e.g. brand non-commercial tendency and brand social responsibility) rather than the symbolic image.

Consumers share negative brand experience in many occasions to vent their emotion and seek support. The purpose of this paper is to investigate the impact of negative sharing on members’ happiness in online brand communities by drawing from two opposing constructs: social support and social exclusion.

Both survey and experiment methods were employed to test the conceptual model. Online survey data were collected from 1,015 mobile internet users.

The findings reveal that negative sharing may enhance a sharer’s happiness through online social support particularly for novice community members. The findings also indicate greater online social exclusion for experienced members than for novice members. These findings cast doubt on the widely held assumption that increased engagement in a community will always produces positive outcomes. The moderating effect of membership duration is confirmed with an experiment of MI’s brand community members.

The study of happiness in online brand community sheds new light on consumer–brand and user–community relationships.

While most previous studies on negative sharing only explored the negative side of consequences, the authors contribute to this line of research by introducing both positive (social support) and negative (social exclusion) outcomes of negative reviews. The model also explains the conditions under which negative reviews enhance social support and social exclusion.

Vega et al. (2020) find that incentives in executive compensation result in higher earnings informativeness. The discussion focuses on two areas for improvement. First, the authors could look into additional measures of earnings quality. This further analysis could help us understand whether the enhanced earning informativeness stems from capital market effects or real effects. Second, the authors could consider replacing their main earnings response coefficient (ERC) model with one of the alternative ERC models in the literature. Three different ERC models are discussed.

This paper discusses capital market effects versus real effects and illustrates different ERC models.

The discussed paper could differentiate between capital market effects and real effects and use an alternative ERC model.

An accounting audience could be interested in the discussion on capital market effects versus real effects and the illustration on various ERC models.

This study aims to explore the advantage of foreignness in a digital world.

Usage data for 251 days of 32 travel mobile applications installed on a major mobile phone brand in China are examined. Results support the author’s arguments.

Foreign mobile apps enjoy higher daily usage time than local apps. Next, the author consider how foreign apps can maximize their advantage, that is, increase daily usage time. The author argue that a multinational enterprise (MNE) can digitally enter a country that has numerous immigrants from its home country because of the high number of potential long tail users. A high level of diversity of international experience of MNEs increases the ability to understand and satisfy the specific needs of long tail users, thereby increasing daily usage time of foreign mobile apps. To maximize the advantage of foreignness in a digital world, MNEs can also carefully select business models that do not heavily rely on network effect, given the difficulty of generating network effect by long tail users.

Previous studies focus on the liability of foreignness or outsidership that MNEs encounter in the digital world, whereas this study argues that foreignness brings certain benefits, such as the capability to satisfy the specific needs of long tail users.

It is unattainable that entrepreneurs engage equivalent resources in public and private morality because of the limitation of resources. This study aims to conduct experiments to test how entrepreneurial deviation in morality affects legitimacy perception of consumers to entrepreneurs.

This study conducted secondary data analysis and experiment to test how entrepreneurial deviation in morality affects legitimacy perception of consumers to entrepreneurs.

The experimental results show that entrepreneurial deviation in morality negatively affects legitimacy perceptions of consumers to entrepreneurs. Specifically, when public moral is higher than private moral, consumers have negative perceptions of pragmatic legitimacy to entrepreneurs, because consumers perceive deviation behaviors disobey the norm “Li”. However, entrepreneurial private morality excels public morality, consumers have negative perceptions of social legitimacy to entrepreneurs because consumers perceive deviation behaviors disobey the norm “Qing”. Moreover, the authors examined entrepreneurial values moderate the effects of moral deviation and legitimacy perceptions.

This study expands the ethical marketing of entrepreneurs from the perspective of the deviation between public morality and private morality.

Pulchronomics studies the economics of beauty. The purpose of this paper is to research CEO pulchronomics by examining whether a beauty premium exists in CEO compensation and whether this beauty premium is justified by differences in CEO performance.

The authors calculate a facial attractiveness scores (FAS) based on facial symmetry, facial structure and the golden ratio. The authors then perform OLS regressions to examine the effect of CEO beauty on CEO compensation and firm performances.

The authors find that base salaries for attractive CEOs are higher than those for unattractive CEOs, but incentive pays for attractive CEOs are not different from those for unattractive CEOs. The latter is likely due to the fact that attractive CEOs do not outperform unattractive CEOs in operations, innovation, corporate social responsibility and financial reporting quality.

Since the CEO beauty premium is not supported by the superior performance of attractive CEOs, this paper provides new evidence of appearance discrimination in CEO compensation.

Information carriers (including mass media and We-Media) play important roles in information diffusion on social networks. The purpose of this paper is to investigate changes in the dissemination of information combing with data analysis.

This work analyzed nearly 200 years of coverage of different information carriers during different periods of human society, from the period of only mouth-to-mouth communication to the period of modern society. Information diffusion models are built to illustrate how the information dynamic changes with time and combined box office data of several movies to predict the process of information diffusion. In addition, a metric is defined to identify which information would become news in the future.

Results show that with the development of information carriers, information spreads faster and wider nowadays. The correctness of the metric proposed has been validated.

The structure of social networks influences the dissemination of information. There are an enormous number of factors that influence the formation of hotspots.

The results and conclusion of this work will benefit by predicting the evolution of information carriers. The metric proposed will aid in searching hot news in the future.

This work may shed some light on a better understanding of information diffusion, spreading not only on social networks but also on the carriers used for the information spreading.

The purpose of this paper is to examine the interaction effects of spokes-character dynamism (high vs low) and brand personality (sincere vs competent) on consumers’ evaluation and the mediating role of processing fluency.

Two experiments were conducted to test the hypotheses. Study 1 establishes the interaction effect between evoked spokes-character dynamism and brand personality on brand trust and examines the mediating role of processing fluency. By introducing a control group and using purchase intention as the dependent variable, Study 2 further extends the results of Study 1.

The results of Studies 1 and 2 show that for sincere brands, spokes-characters with high dynamic imagery contribute to significantly higher consumer evaluation than the control group and the group of spokes-characters with low dynamic imagery. However, for competent brands, spokes-characters with low dynamic imagery contribute to significantly higher consumer evaluation than the control group and the group of spokes-characters with high dynamic imagery. In addition, processing fluency mediates the interaction effect between evoked spokes-character dynamism and brand personality on consumers’ evaluation.

The studies considered only one method, “frozen motion,” to evoke perceived movement. Further studies using other methods are needed to allow for generalization.

The discerning use of dynamic imagery in spokes-character design involving advertisements may aid marketers in maximizing spokes-characters’ effect on consumers’ evaluation.

The perceived movement of spokes-characters is integrated into the cognition of brand personality. Marketers should take into account how the match between spokes-character dynamism and brand personality may influence consumers’ evaluation of the brand.

The authors study whether CEO beauty influences management guidance.

The authors calculate an attractiveness score based on facial symmetry and perform regression analyses to examine the relation between CEO beauty and management guidance.

The authors find that attractive CEOs are more likely to issue voluntary management earnings guidance. After controlling for this appearance-based self-selection, the authors document that management forecasts provided by attractive CEOs are more optimistic yet less precise. Consistent with this result, the authors find that analysts' consensus forecast error following management forecasts made by attractive CEOs is larger than such error following management forecasts made by unattractive CEOs. The authors further find that the perceived credibility of management forecasts by attractive CEOs is not different from that by unattractive CEOs.

These findings suggest that attractive CEOs are more active but less skillful in issuing management forecasts. This adds to the emerging accounting literature on the relation between facial appearance and information delivery.