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The purpose of this paper is to examine the certification and monitoring motivations of third-party underwriting and its effects on credit spreads and earnings management of bank issuers.

Ordinary least squares is used to examine the certification and monitoring effects of third-party underwriting. Furthermore, the Heckman two-stage estimation method is used in controlling the endogeneity of sample selection.

The authors find that financial bonds underwritten by third-party underwriters bear lower credit spreads due to their credibly ex ante certification and effectively ex post monitoring compared with self-underwriting. Moreover, the certification of third-party underwriters can help to select good quality bond issuers with lower earnings management, and the monitoring function also plays an essential role in constraining the behavior of earnings management after the bond issues.

The findings in this study suggest that underwriting types (third-party underwriting) will affect financial bond yields and bank issuers’ earnings management.

On the one hand, the authors should encourage third-party underwriters to actively promote the certification and monitoring functions. For example, given commercial banks the chance to be underwriters when the bond issuers are investment banks, which is not allowed now in China’s financial bond market. On the other hand, the authors should cut off the quid pro quo relations within third-party underwriting because such relations will reduce the certification and monitoring effects of third-party underwriters.

This is the first study to distinguish the certification and monitoring effects by using unique data from China’s financial bond market. And the authors further investigate the adverse effects of quid pro quo relations (hiring each other as lead underwriters) on the certification and monitoring effects of third-party underwriters.

The aim of this paper is to assess the welfare effects of the newest trends in food safety policies characterised by the shift from public to private intervention.

Food safety policies are analysed through concepts of new economic sociology, with a critical review of the literature on social capital.

The article shows that as food safety and quality attributes responsible for the exchange complexity are simply codified and enforced through standards and third‐party certification, the global value chain governance shifts from a relational type to a power‐based type, with possible negative welfare effects.

Further research would be required to verify the welfare effects suggested on the theoretical ground.

The article makes a useful updating of food safety policies and organisational innovation in the food system.

The paper introduces some new (with respect to the marketing literature related to the food system) concepts and theories of economic sociology.

The purpose of the present study is to examine the effect of organic food certification labels of different third-party verification institutions on consumers' choice of organic food in terms of willingness-to-pay (WTP) using cue utilization theory.

The study conducted an experiment in which organic rice and organic certification labels were presented to 360 valid participants.

With different organic rice labels issued by various third-party verification institutions, including (1) foundations, (2) associations, (3) university certification centers and (4) private businesses, results indicate that consumers had different preferences and WTP for certain labels. The institutions preferred organic food labels issued by non-profit organizations. In addition, consumers showed different WTP as a result of different purchase motivations (e.g. health vs environmental protection).

These results imply that consumers might not have confidence in the organic labels issued by associations and private institutions. Therefore, different types of certification institutions can have significantly different impacts on consumers' WTP. The study further proposes that the extrinsic attributes of food products (i.e. the cues used in making a purchase decision) must be incongruent with the image of third-party certification institutions in order to develop more efficient communication of product information and to encourage consumers to give positive comments regarding organic food.

The purpose of this paper with pork as a case is to analyze Chinese consumer preference and demand for traceable food attributes, in order to provide a useful reference for Chinese Government in developing the safe food market and preventing food safety risks.

This research surveyed 1,380 consumers in seven pilot cities that designated by the Chinese Ministry of Commerce for the construction of a meat and vegetable circulation traceability system. A choice-based conjoint analysis and multinomial logit model were used to study consumer preferences and demand for traceable pork attributes.

The results demonstrated that certification of traceable information was the most important characteristic, followed by appearance and traceable information. Significant heterogeneity was obtained in consumer preferences for the attributes of traceable pork. Also, consumers’ preferences for traceable attributes were memorably influenced by age, education level, and income level.

Based on these results, the government should encourage and support the production of traceable food with different certification types and different traceability levels. Meanwhile, the development of food traceability systems should be combined with a quality certification labeling system.

This study extends the applicability of the setting of traceable food attributes and levels in China, and it will improve Chinese food traceability systems through multilateral cooperation.

This paper aims to investigate the role of certification in providing information and reducing market inefficiencies when the “certification process is imperfect”. In the setting, eco-labels imperfectly signal environmental product quality to consumers where the error in the process of certification could be either Type 1 or Type 2 error. The paper examines firms' incentive to get certified, equilibrium quantities and profits. The authors use perfect Bayesian equilibrium concept for the analysis. They then examine conditions for separating and pooling equilibrium to exist and welfare implications of certification process.

The paper uses a vertical product differentiated model where firms are competing in quantities. Consumers are unable to observe the environmental quality of the product. To signal the product quality to consumers, firms may adopt certification by a third party. Using a framework where certification process is imperfect, the paper derives conditions for Perfect Bayesian separating and pooling equilibrium to exist.

The paper shows that the existence of separating and pooling equilibrium depends on the certification fee. A separating equilibrium, where one firm seeks certification and other firm does not seek certification exists for an intermediate value of certification fee. A pooling equilibrium, where both firms seek certification, exists only when the certification fee is sufficiently small. The paper shows conditions for the certification fee for which welfare will be higher under separating equilibrium as compared to pooling equilibrium and analyses welfare implications for subsidy policy for the certification fee.

The paper contributes to the literature by examining the role of labelling under imperfect certification.

The study aims to investigate how hotel booking attributes (i.e. perceived privacy, perceived certification and perceived assurance) engender consumers’ untrust and consequent behavioral intentions (i.e. altruistic behavior and trusting intentions). It also unveils the role of hotel attributes performance as a moderator between hotel booking attributes and consumers’ untrust.

Data were collected through an online platform by engaging 454 Chinese respondents. SPSS 25.0 and AMOS 24.0 (structural equation modeling) were used for data analysis and interpretation.

Results demonstrate that hotel booking attributes positively substantiate consumers’ untrust which, in turn, develops altruistic behavior and negative trusting intentions. Moreover, hotel attribute experience significantly moderates the relationships between perceived privacy, perceived certification and consumers’ untrust. Notably, hotel attribute performance insignificantly influences the association between perceived assurance and untrust.

This study used the Chinese context and examined Chinese domestic travelers and the nonbranded hotel industry. Notwithstanding its limitations, the findings help hospitality and tourism firms, en bloc, to manage their review websites by explicitly disclosing policies regarding customers’ privacy and assurance, winning their trust through third-party certification and employing data scientists to develop algorithms to sieve fake information proactively.

This study develops an original conceptual framework by using the untrust model in this research. Our findings add to the research on consumer behavior, information processing, service management and trust and suggest practical implications for hospitality firms.

Asymmetries in information, where sellers have more information than buyers about product qualities, may prevent firms from supplying some goods and services despite the fact that consumers are willing to pay adequately for them. The frequency and importance of such market failures is growing with the increase in buyers’ interest in unobservable qualities (attributes) of products, including the nature of their production processes. Certification by credible third parties may reduce the frequency and mitigate consequences of market failures. Certification creates a variety of challenges for both marketers and regulators. In this paper, we examine the emergence of alternative domestic and international regulatory regimes for certifying some qualities of products and services. We explore the implications of these regimes and country and product characteristics to the formulation of international marketing strategies. We illustrate our findings through a case study of the forest products industry.

This paper assesses the current knowledge and perceived needs of the key actors in quality management in Russia and examines various strategies for change, in the context of both present Western thinking and the local economic situation and cultural traditions. Three quality management approaches already tested in Russia, namely, third party certification, self‐assessment and a Russian/Western hybrid model, all have significant drawbacks. The priority must be for the creation of an educational and institutional infrastructure for quality management. The conclusions in this paper are also relevant to the other republics of the former Soviet Union and East European countries.

The purpose of this paper is to examine predictors of obtaining global certification (ISO 9000) in an emerging market by focusing on ownership structure and total quality management (TQM) commitment.

This paper adapts the theory of planned behavior to explain organizations that obtain global certification in an emerging market (China). Using 269 service firms at different stages of ISO 9000 certification (a proxy for goal-directed behavior/excellence by organizations), the study examines the influence of ownership structures (a proxy for perceived behavioral control) and TQM commitment (a proxy for attitude toward a behavior), using a probit model.

The results showed that ownership structures that were state-owned enterprises, privately owned enterprises and township-village enterprises (TVEs) had a lower probability of obtaining global certification. However, TQM commitment moderates the relationship between ownership structure and obtaining ISO 9000 certification for POEs and TVEs. The study found stronger results for a subsample of organizations that intended to obtain ISO 9000 certification. Among organizations without ISO 9000 certification, we examined organizations that began the learning process for ISO 9000 and those that had not, and found differences based on competitive pressures, ownership structures, and the moderating effect of TQM commitment.

Future research may consider manufacturing organizations and other countries to further validate the findings of our study.

Creating strong TQM commitment can be an effective means for POEs and TVEs to obtain ISO 9000 certification.

This study is the first to adapt the theory of planned behavior for an organization-level analysis of ISO 9000 certification, especially in the service operations setting. The study found that TQM commitment selectively moderates ownership structures in explaining the probability that an organization obtained ISO 9000 certification.

As investors' expectations shift toward corporate sustainability, many corporations have jumped on the bandwagon of being “green” by issuing green bonds. However, as a recent green financing tool, little attention has been paid on the value that green bonds actually deliver. This causes the problem of greenwashing, in which firms pretend to be environmentally responsible when in reality they are not. This study therefore aims to explore green bonds' impact on issuers' corporate environmental and financial performance.

The sample is collected from among the green bond and conventional bond issues between 2015 and 2019 issued by corporations from various countries. Using the propensity score matching (PSM) and then difference-in-difference (DiD) approaches, two sub-groups (green bond and conventional bond issuers) were generated for comparison. Changes in environmental and financial performance over time between the sub-groups are then examined.

The overall results show that green bonds are effective in improving environmental performance, but only when they are certified by third parties. Additionally, green bonds do not have an impact on financial performance. The findings imply that green bonds' dependency on external certification may be a consequence of an underdeveloped green bond market, where weak governance still dominates the green bond market. Because of this, corporations tend to take advantage of green finance's growing popularity, causing the greenwashing problem.

Green bonds are an extremely new area of research. Few research studies focus on the effectiveness of green bonds in impacting corporate financial and environmental performance. Therefore, this study strives to fill this research gap. It sheds light on the effectiveness of green bonds in supporting the development of green projects and provides a reference point for decision-making in strengthening transparency and accountability in environmental disclosure and helps regulating authorities develop tighter regulatory controls.