Fairness judgments and counterfactual thinking: pricing goods versus services

2015 ◽  
Vol 23 (2) ◽  
pp. 174-190 ◽  
Author(s):  
Charles E Naquin ◽  
Terri R. Kurtzberg ◽  
Aparna Krishnan
Keyword(s):  
Procedural Justice ◽  
Design Methodology ◽  
Organizational Processes ◽  
Content Type ◽  
Perceptions Of Fairness ◽  
Fairness Judgments ◽  
Fair Compensation ◽  
Cost Of Materials ◽  
The Cost ◽  
The Relationship

Purpose – This paper aims to propose and empirically document the idea that people’s perceptions of having been treated fairly depend, in part, on whether the explanation provided to them of a product’s pricing is primarily based on the costs of labor (a service) versus materials (goods). Because materials are more fixed and tangible than the effort of labor, it is argued that people will have fewer counterfactual thoughts about how things could have been different with the cost of materials than those associated with labor. This has implications for fairness judgments more generally, as it suggests that people may be uneven in which types of data they attend to when making fairness judgments. Three experiments are presented that empirically test the relationship between the salience of goods versus services in the price paid and the resulting perceptions of fairness. Findings confirm that thoughts of money spent on a service were associated with lesser feelings of fairness than were thoughts of money spent on a good. This research uniquely identifies the mechanism by which some evaluations are considered fairer than others. Implications for organizational processes, such as procedural justice and fair compensation, are discussed. Design/methodology/approach – Three experiments are presented that empirically test the relationship between the salience of goods versus services in the price paid, and the resulting perceptions of fairness. Findings – Findings confirm that thoughts of money spent on a service were associated with lesser feelings of fairness than were thoughts of money spent on a good. Originality/value – This research uniquely identifies the mechanism by which some evaluations are considered fairer than others. Implications for organizational processes, such as procedural justice and fair compensation, are discussed.

Tax avoidance, tax risk and the cost of debt in a bank-dominated economy

2018 ◽  
Vol 33 (8/9) ◽  
pp. 683-699 ◽  
Author(s):  
Jost Hendrik Kovermann
Keyword(s):  
Interest Rates ◽  
Design Methodology ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Research Literature ◽  
Cost Of Debt ◽  
Content Type ◽  
Negative Effect ◽  
The Cost ◽  
The Relationship

Purpose The purpose of this paper is to investigate whether tax avoidance has a positive or negative effect on firms’ cost of debt. It further investigates whether the implications for the cost of debt are different for tax avoidance and tax risk. Design/methodology/approach Based on a sample of 201 firms listed on Frankfurt Stock Exchange from 2009 to 2014, three tests are performed using pooled OLS regression. Controlling for numerous variables that have been found to influence the cost of debt, a first model examines the relationship between tax avoidance and the cost of debt. A second model examines the relationship between tax risk and the cost of debt and a third model interacts tax avoidance with tax risk. Findings The results show that tax avoidance has a negative effect on the cost of debt; however, tax risk increases the cost of debt. These results indicate that creditors generally view tax avoidance as positive and that tax avoidance is not regarded as inherently risky. Although tax avoidance is rewarded by capital markets with lower interest rates, tax risk contributes to higher interest rates. The effect of tax avoidance on the cost of debt depends therefore on the level of tax risk. Originality/value This paper contributes to two distinct strands of research: literature investigating the driving factors behind the cost of debt and literature investigating the consequences of firms’ tax avoidance activities.

Promoting Muslims’ cooperation with police in counter-terrorism

2017 ◽  
Vol 40 (3) ◽  
pp. 544-559 ◽  
Author(s):  
Kristina Murphy ◽  
Natasha S. Madon ◽  
Adrian Cherney
Keyword(s):  
Procedural Justice ◽  
Design Methodology ◽  
Crime Control ◽  
Police Legitimacy ◽  
Content Type ◽  
Counter Terrorism ◽  
Justice Perceptions ◽  
Willingness To Report ◽  
The Relationship ◽  
Willingness To Cooperate

Purpose Procedural justice is important for fostering peoples’ willingness to cooperate with police. Theorizing suggests this relationship results because procedural justice enhances perceptions that the police are legitimate and entitled to be supported. The purpose of this paper is to examine how legitimacy perceptions moderate the effect of procedural justice policing on Muslims’ willingness to cooperate with police. Design/methodology/approach Survey data from 800 Muslims in Australia are used. Findings This study shows Muslims’ procedural justice perceptions are positively associated with two types of cooperation: willingness to cooperate with police in general crime control efforts; and willingness to report terror threats to police. Muslims’ perceptions of police legitimacy and law legitimacy also influence willingness to cooperate. Specifically, police legitimacy is more important for predicting general willingness to cooperate with police, while law legitimacy is more important for predicting Muslims’ willingness to report terror threats. Importantly, legitimacy perceptions moderate the relationship between procedural justice and both types of cooperation. Specifically, procedural justice promotes cooperation more strongly for those who question the legitimacy of police or the legitimacy of counter-terrorism laws, but the moderation effects differ across the two cooperation contexts. The findings have implications for procedural justice scholarship and for counter-terrorism policing. Originality/value The current paper examines an under-explored aspect of legitimacy; it examines police legitimacy perceptions, but also examines how people view the legitimacy of laws police enforce (i.e. law legitimacy). It is argued that perceptions about law legitimacy can also impact people’s willingness to cooperate with police.

The relation between excess control and cost of capital

2014 ◽  
Vol 10 (1) ◽  
pp. 93-114 ◽  
Author(s):  
Yves Bozec ◽  
Claude Laurin ◽  
Iwan Meier
Keyword(s):  
Firm Value ◽  
Design Methodology ◽  
Cost Of Capital ◽  
Weighted Average ◽  
Equity Capital ◽  
Content Type ◽  
The Common ◽  
Cash Flow Rights ◽  
The Cost ◽  
The Relationship

Purpose – The purpose of this study is to investigate the relationship between dominant shareholders, whose voting rights exceed cash flow rights (excess control), and firms’ cost of capital, including both equity capital and debt. Design/methodology/approach – This research is conducted in Canada over a four-year period from 2002 to 2005 and uses panel data of 155 S&P/TSX firms. The weighted average cost of capital is regressed on excess control using fixed-effect regressions in a two-stage least squares framework. Findings – The paper finds evidence that the cost of capital increases with excess control. The paper also confirms that for firms incorporated under the less protective Quebec incorporation law the excess control and, therefore, cost of capital is higher than for firms incorporated in the other provinces under the common law regime. Originality value – Prior work examined the relationship between excess control and firm value, mostly Tobin's Q. By using cost of capital, the study explores another channel through witch excess control may affect firm value.

Exploring intellectual capital disclosure as a mediator for the relationship between IPO firm-specific characteristics and underpricing

2015 ◽  
Vol 16 (3) ◽  
pp. 639-660 ◽  
Author(s):  
Shaw Warn Too ◽  
Wan Fadzilah Wan Yusoff
Keyword(s):  
Initial Public Offerings ◽  
Intellectual Capital ◽  
Design Methodology ◽  
Firm Characteristics ◽  
Content Type ◽  
Public Offerings ◽  
Intangible Resources ◽  
The Cost ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the direct and indirect impact of firm-specific characteristics on the level of underpricing among Malaysian initial public offerings (IPOs). Design/methodology/approach – Content analysis of IPO prospectuses was used for 331 firms underwent listing between 2002 and 2008. The extent of disclosure was computed by applying the disclosure index of Bukh et al. (2005). Findings – Of the five firm characteristics examined, there is a direct relationship between the firm’s financial performance and the level of foreign activity, and the level of underpricing, instead of being mediated through disclosure. However, some firm characteristics have direct influence on the extent of disclosure but do not have any influence on underpricing. Research limitations/implications – This empirical study concentrates on the Malaysian IPOs on a single disclosure mechanism. Other disclosure items can be examined together with the intellectual capital disclosure items. Practical implications – As the findings reveal that the extent of disclosure is relatively low in influencing the level of underpricing. Had the disclosure been higher, it may have some influence on underpricing. The accounting governance board need to regulate the disclosures of the intangible resources so that the level of underpricing can be minimized. Originality/value – This study provides new insight for the examination of direct and indirect (through disclosure) association between firm-specific characteristics and underpricing. The findings shed some lights to the IPO issuers to enhance disclosure so that the cost of capital can be reduced.

Can reviewer reputation and webcare content affect perceived fairness?

2019 ◽  
Vol 13 (4) ◽  
pp. 464-476 ◽  
Author(s):  
Amar Raju
Keyword(s):  
Design Methodology ◽  
Source Credibility ◽  
Perceived Fairness ◽  
Content Type ◽  
Perceptions Of Fairness ◽  
Main Effect ◽  
The Relationship ◽  
Moderating Role ◽  
Practical Implications

Purpose This paper aims to explore the effects of webcare content type and webcare source credibility on perceived fairness, in the presence of reputation of a reviewer as a moderator. Design/methodology/approach The experiment used a 2 (Webcare content type: Specific vs Vague) × 2 (Webcare source credibility: High vs Low) × 2 (Reviewer reputation: Good vs Bad) between-subjects design. ANOVA was used to test the hypotheses. Findings A significant main effect and interaction effect of independent variables was found on perceived fairness. The moderating role of reviewer reputation was also found significant in the relationship between content type and perceived fairness. However, reputation of the reviewer did not moderate the relationship between webcare source credibility and perceived fairness. Practical implications Marketers should respond to negative reviews by paying attention toward review and webcare attributes highlighted in the paper because doing so might satisfy the consumer. Originality/value This paper attempts to study a combination of webcare and review characteristics together on consumers' perceptions of fairness.

The relationship between conflict, anticipatory procedural justice, and design with intentions to use ombudsman processes

2013 ◽  
Vol 24 (1) ◽  
pp. 56-72 ◽  
Author(s):  
Tyler R. Harrison ◽  
Paula Hopeck ◽  
Nathalie Desrayaud ◽  
Kristen Imboden
Keyword(s):  
Procedural Justice ◽  
Design Methodology ◽  
Intention To Use ◽  
Content Type ◽  
Perceived Seriousness ◽  
Type 3 ◽  
Conflict Research ◽  
The Relationship ◽  
Practical Implications

PurposeThe purpose of this study is to explore the role of anticipatory procedural justice, seriousness/type of conflict, and design of ombudsman processes with intentions to use ombudsman processes to resolve disputes.Design/methodology/approachThe study was a 3 (type of conflict with three scenarios nested in each type)×3 (design of ombuds system). Subjects read scenarios and filled out Likert type survey items related to seriousness of conflict, anticipatory procedural justice, and intentions to use ombuds processes.FindingsPerceived seriousness and anticipatory procedural justice were significantly related to intention to use ombuds process, but design of ombuds process was not.Research limitations/implicationsThis study was limited to scenarios of academic conflict. Research should be extended to experienced conflicts and conflicts in other contexts.Practical implicationsPotential users of ombuds processes are more concerned with principles of fairness and justice than the specific elements of how dispute systems are designed. While the design of a system needs to insure disputants perceive it to be fair, institutions concerned with resolving disputes between/among members should be more concerned with having a system than about promoting specific details about the design of that system.Originality/valueThis study advances both the study of ombuds processes/design and anticipatory procedural justice. This study provides unique findings related to both the design of ombuds processes and the conditions under which disputants might utilize the process. Additionally, procedural justice is demonstrated to be useful in forming decisions about use of processes, not just evaluations after processes have been used.

Police bias and diminished trust in police: a role for procedural justice?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Natasha S. Madon ◽  
Kristina Murphy
Keyword(s):  
Law Enforcement ◽  
Procedural Justice ◽  
Interaction Effect ◽  
Design Methodology ◽  
Significant Interaction Effect ◽  
Content Type ◽  
The Relationship ◽  
Positive Effect ◽  
Sydney Australia ◽  
Trust In Police

PurposeSince 9/11, Muslims have experienced discrimination and scrutiny from authorities. For many, this experience has damaged their trust in law enforcement and left them with the impression that they are viewed as suspect. This study seeks to better understand the relationship between Muslims' perceived police bias and trust, and how procedural justice may shape this relationship.Design/methodology/approachThe authors collected survey data from 398 Muslims in Sydney, Australia, as part of a larger study on immigrants' views of police. Participants were surveyed on a range of topics including contact with police, global assessments of police procedural justice and how they believe police treat their cultural group.FindingsOverall, the authors find that the extent to which people perceive police bias is associated with their level of trust in police. Greater preconceived bias is associated with lower trust in police. The authors also find that perceiving police as procedurally just is positively related to trust. Importantly, this study finds a significant interaction effect between perceptions of police bias and procedural justice on Muslims' trust in police. Specifically, for those who hold the view that police are unbiased, perceiving police as generally procedural just has a strong positive effect on trust. For those who view police as biased against Muslims, procedural justice has a weak but positive effect on trust. This interaction effect suggests that perceived bias may shape how Muslims interpret police treatment of Muslims.Originality/valueThis study is the first to explore how perceived police bias and perceptions of procedural justice predict and interact to shape Muslims' trust in police, advancing existing procedural justice policing scholarship.

Perceptions of time at work

2016 ◽  
Vol 45 (1) ◽  
pp. 29-50 ◽  
Author(s):  
Aristides Isidoro Ferreira ◽  
Joana Diniz Esteves
Keyword(s):  
Gender Differences ◽  
Design Methodology ◽  
Internet Use ◽  
The Internet ◽  
Content Type ◽  
Future Studies ◽  
Work Related ◽  
Phone Calls ◽  
Working Day ◽  
The Relationship

Purpose – Activities such as making personal phone calls, surfing on the internet, booking personal appointments or chatting with colleagues may or may not deviate attentions from work. With this in mind, the purpose of this paper is to examine gender differences and motivations behind personal activities employees do at work, as well as individuals’ perception of the time they spend doing these activities. Design/methodology/approach – Data were obtained from 35 individuals (M age=37.06 years; SD=7.80) from a Portuguese information technology company through an ethnographic method including a five-day non-participant direct observation (n=175 observations) and a questionnaire with open-ended questions. Findings – Results revealed that during a five-working-day period of eight hours per day, individuals spent around 58 minutes doing personal activities. During this time, individuals engaged mainly in socializing through conversation, internet use, smoking and taking coffee breaks. Results revealed that employees did not perceive the time they spent on non-work realted activities accurately, as the values of these perceptions were lower than the actual time. Moreover, through HLM, the findings showed that the time spent on conversation and internet use was moderated by the relationship between gender and the leisure vs home-related motivations associated with each personal activity developed at work. Originality/value – This study contributes to the literature on human resource management because it reveals how employees often perceive the time they spend on non-work related activities performed at work inaccurately. This study highlights the importance of including individual motivations when studying gender differences and personal activities performed at work. The current research discusses implications for practitioners and outlines suggestions for future studies.

Learning from intelligent conversation

IMP Journal ◽  
2016 ◽  
Vol 10 (3) ◽  
pp. 512-539 ◽  
Author(s):  
Luitzen De Boer ◽  
Poul Houman Andersen
Keyword(s):  
System Theory ◽  
Design Methodology ◽  
Historical Analysis ◽  
Research Field ◽  
Literature Study ◽  
Content Type ◽  
Narrative Literature ◽  
The Relationship ◽  
Conceptual Research

Purpose The purpose of the paper is to contribute to further advancing of IMP as a research field by setting up and starting a theoretical conversation between system theory and the IMP. Design/methodology/approach The approach is based on a narrative literature study and conceptual research. Findings The authors find that system theory and cybernetics can be regarded as important sources of inspiration for early IMP research. The authors identify three specific theoretical “puzzles” in system theory that may serve as useful topics for discussion between system theorists and IMP researchers. Originality/value Only a handful of papers have touched upon the relationship between system theory and IMP before. This paper combines a narrative, historical analysis of this relationship with developing specific suggestions for using system theory as a vehicle for further advancement of IMP research.

Dynamic capabilities vs. innovation capability: are they related?

2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich
Keyword(s):  
Literature Review ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Future Research ◽  
Innovation Capability ◽  
New Approach ◽  
Content Type ◽  
New Research ◽  
The Relationship

Purpose – The purpose of this paper is to provide insights into the relationship between dynamic capabilities and innovation capabilities. It links dynamic capability with innovation capability and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review. Findings – The review indicates that common characteristics exist between of the both fields, which demonstrate six relationships. Additionally, findings show some inconsistencies and even contradictions. Originality/value – In this paper, the authors have compared dynamic capabilities, a relatively new approach in the field of strategic management, with innovation capabilities, a widely recognised crucial domain for sustained competitiveness. Since both areas address issues that are essential to today's environment, future research should seek to clarify both concepts, by undertaking some new research and developing comprehensive and unambiguous framework.

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