Analysis of categorical multiple response variables in marketing research

Multiple Response Data (MRD) can be defined as the set of answers to a question that allows the respondent to pick more than one response, also known as a pick any/J format. Such questions have become very popular for marketing research, and are frequently encountered in the analysis of survey data . Although widely used, the analysis of these types of responses is becoming increasingly complex. The purpose of this paper is to examine the underlying issues and subsequent solutions for dealing with aggregated MRD. The paper also presents a summary of benefits and drawbacks associated with different analytical methods

CEO Extraversion and the Cost of Equity Capital

We examine whether CEO extraversion, an important personality trait associated with leadership, is associated with firms\u27 expected cost of equity capital. We measure CEO extraversion using CEOs\u27 speech patterns during the unscripted portion of conference calls. After controlling for multiple CEO and firm-specific variables, we find a strong positive incremental association between CEO extraversion and firms\u27 expected cost of capital. Moreover, cost of equity increases when a more extraverted CEO replaces a less extraverted CEO. In addition, we find that firms with relatively extraverted CEOs take more risk and exhibit lower credit ratings, which is associated with higher cost of equity capital. These results are statistically and economically meaningful and do not appear to be driven by reverse causality, endogenous matching, look-ahead bias, or bias in analysts\u27 earnings forecast

Performance and value creation in international acquisitions: an empirical analysis of foreign acquisitions by Indian firms

This study examines the announcement effect and the post-acquisition long-term performance of 96 Indian international acquisitions of U.S. firms made in the period 1999-2005. We find that while the international acquisition announcements by Indian firms create significant short-term shareholders’ wealth, in the long-run international acquisitions have a negative impact on the shareholders’ wealth

The Role of Export Processing Zones in Development and International Marketing Strategy

Export Processing Zones (EPZs) are areas within developing countries where business is offered special incentives and a barrier-free environment in order to promote economic growth by attracting foreign investment for export-oriented production. Most developing countries now have EPZs, and the number of zones, number of firms operating within them, and volume of business are growing rapidly. Yet studies of the EPZ phenomenon by business researchers are virtually non-existent, leading to poor understanding of its role in international marketing. This paper draws from the economics literature to provide an integrative review of the EPZ concept, discusses its importance for host nations and international business, and provides suggestions for future research

The Acquisitive Nature of Extraverted CEOs

This study examines how extraversion, a personality trait that signifies more or less positive affect, assertive behavior, decisive thinking, and desires for social engagement, influences chief executive officers’ (CEOs’) decisions and the ensuing strategic behavior of firms. Using a novel linguistic technique to assess personality from unscripted text spoken by 2,381 CEOs of S&P 1500 firms over ten years, we show that CEOs’ extraversion influences the merger and acquisition (M&A) behavior of firms above and beyond other well-established personality traits. We find that extraverted CEOs are more likely to engage in acquisitions, and to conduct larger ones, than other CEOs and that these effects are partially explained by their higher representation on boards of other firms. Moreover, we find that the acquisitive nature of extraverted CEOs reveals itself particularly in so-called “weaker” situations, in which CEOs enjoy considerable discretion to behave in ways akin to their personality traits. Subsequent analyses show that extraverted CEOs are also more likely than other CEOs to succeed in M&As, as reflected by stronger abnormal returns following acquisition announcements

Extent of Protection via Antidumping Law: A case study of the Vitamin C industry in India. Extent of Protection via Antidumping Law: A case study of the Vitamin C industry in India

Abstract We look at the trade effects of antidumping (AD) policy in the Vitamin C industry in India. We find that AD is very effective in restricting imports from the countries that are named to be dumping. However, we also find a strong evidence of trade diversion: imports are diverted away from the named source country to the nonnamed countries. More over, after the imposition of AD duties on the named countries there is an influx of new entrants. Countries that were not supplying Vitamin C to India earlier now become an important source of imports. Our study highlights how the entry of alternate foreign suppliers (new entrants) significantly mitigates the restrictive effect of AD Law. It has been suggested in the literature (Prusa (1996)) that multiple petition filing or using the cumulation amendment is one way to curb import diversion. However, our study shows that the entry of new foreign suppliers could lend such a solution ineffective, as these foreign suppliers enter the market only after the petition has been filed. This case study also highlights the possibility of abuse of the AD law by the domestic industry. One way to mitigate abuse is for national authorities to incorporate the views of the importing industry in its decision making process.

Curvilinear relationship between cultural distance and equity participation: An empirical analysis of cross-border acquisitions

We examine the relationship between national cultural distance and equity participation using an analysis of a sample of more than 100,000 cross-border acquisitions from 1976 to 2008. We find that cultural distance has a curvilinear (U shaped) relationship with equity participation: Acquiring firms make large equity acquisitions at both low and high cultural distances and small equity acquisitions at moderate cultural distances. In addition, we find that industry relatedness of acquisitions positively moderates the relationship between cultural distance and equity participation: Acquiring firms take a higher equity stake for a given cultural distance if the acquisitions are in a related industry. Our findings offer important insights into firms' market entry behavior and provide guidelines for managers about entry strategies