This paper examines how the difference in institutional environments constitutes differential IPO underpricing across countries. Using the Heritage Foundation’s Index of Economic Freedom (IEF) as a proxy for the heterogeneous institutional environment, and a sample of 3728 IPOs from 22 countries and regions over the period 1993–2014, we find that countries with higher economic freedom have significantly less serious IPO underpricing problems. Moreover, we find that among the 10 economic freedom factors covered by theIEF, financial freedom related factors play a more important role in reducing the IPO underpricing problem. Finally, consistent with the market sentiment hypothesis, we find strong evidence that pre-IPO market sentiment influences IPO firstday returns, and that the IPO underpricing problem is less severe when the market is bearish.
With the rapid development of technology, more and more products tend to both meet customers’ functional needs and provide stylish consumption experiences at the same time. We define them as “fashion tech” products. In practice there exist two opposite consumption externalities associated with “fashion tech” products. One, some customers are more likely to purchase the product if fewer customers can afford or have access to it to advertise their prosperity or good taste. In contrast, other customers’ utility increases with the rising number of other customers. Thus the firm needs to consider such consumption externalities in their pricing decisions in order to appropriately position products and maximize profits. In such contexts, this paper optimizes intertemporal pricing strategies for fashion tech products selling to strategic customers with two kinds of externalities. We find that a markdown strategy is always optimal. In addition, it is appropriate for the firm to use slight markdowns when both the fraction of snobs and probability of stockout are small or use sharp markdowns otherwise.
Purpose: While most literature concerning knowledge sharing examines it as an organizational method for innovation and value creation, this paper considers online knowledge sharing as an individual behavior decision embedded in a virtual community. We attempt to explore which sharing behavior can help individual participants gain a better position in an online community, improving social status, reputation, and other social networking interests.Design/methodology/approach: We collected and measured the knowledge sharing activities and discussion from a Chinese online expertise knowledge network in Business Management Consulting. We tested the mediating effects of the sharing behavior of the major members of the online knowledge network on members’ status (network centrality) in different time units (days).Findings: In a dynamic virtual community, the direct result of knowledge sharing behavior is reflected in the individual status position (the degree of node centrality). At the same time, individual knowledge sharing behavior has an “inertia effect”: individual prior status (the degree of node centrality) affects current knowledge sharing behavior, while current knowledge sharing behavior affects current status in the knowledge network, forming an inertial circuit between personal behavior and network status.Originality/value: We expound the theory of individual knowledge sharing in the context of an inter-person dynamic virtual community; we provide action “strategies” for individual knowledge sharing behavior choice, for better understanding the nature of individual knowledge behavior, and we also propose and test the “inertia effect” of knowledge sharing behavior and the knowledge network, and demonstrate the theory of network effects from an individual perspective.
This paper proposes a model featuring the heterogeneity of consumer preferences and analyzes the multiple equilibrium of retail formats by building a map of the relationships between consumer heterogeneity and retail formats. The key questions analyzed in this paper are how the retailer adjusts its combination of marketing elements through repositioning and how innovation in retail formats is implemented to match consumers’ heterogeneous preferences in a market with consumer search costs. Unlike recent research, our model, by taking different consumer preference structures into account, introduces consumer psychological costs into the Ehrlich-Fisher model and deduces the existence of different retail formats and their multiple equilibriums. We find that consumer heterogeneity, retailers’ diversified transfer costs and economies of scale are endogenous drivers of prosperous retail formats. Accordingly, diversified retail formats with complementary functions and differentiated services can be described as the horizontal extensions and interface changes of the retailing industry.
The selection process of appropriate Performance Appraisal (PA) methods for organizations in today’s dynamic and agile environments along with its funding scales is a complex problem. Performance appraisal in modern organizations has become a part of the strategic approach toward integrating business policies and human resource activities. The existence of multiple criteria in the decision-making procedure makes finding the optimal PA method more challenging. The current study tackles a PA method assessment by applying a multiple criteria decision analysis method i.e., MULTIMOORA integrated Shannon’s entropy significance coefficient. A case study on the optimal PA method selection is analyzed by identifying the criteria and alternatives based on the literature and expert comments of the case-study employing two approaches, that is, MULTIMOORA and Entropy MULTIMOORA. The final rankings of the suggested methods are compared to TOPSIS and TOPSIS integrated Shannon’s entropy methods utilizing correlation coefficients of the final ranks. Eventually, by identifying the optimal PA approach i.e., 360-degree feedback, the selected optimal method employed in the case study and results are demonstrated and described with a comprehensive example.