{"title":"Advance Selling Without Disclosing the Regular Price? The Role of Anticipated Regret","authors":"Guohao Li, Qihuan Chu","doi":"10.1002/mde.4537","DOIUrl":"https://doi.org/10.1002/mde.4537","url":null,"abstract":"<div>\u0000 \u0000 <p>When a seller introduces an innovative product, some consumers may anticipate regret and factor it into their decision-making due to uncertain valuation. Motivated by current realities, we analyze the profitability of advance deposit selling strategies, both with and without disclosing the regular price. Using an analytical model incorporating consumers' anticipated regret, this study investigates (i) the optimal selling strategy and profits under consumer regret and (ii) whether a profit-maximizing seller should disclose the regular price in advance. The principal results are the following: (i) For the pre-disclosure strategy, sellers may miss opportunities for higher profits by ignoring consumers' inaction regret. Pre-sales-only strategies are optimal when action regret surpasses a certain threshold; the optimal deposit and the pre-sale price decrease (increase) in tandem with action (inaction) regret. (ii) When sellers do not disclose a regular price in advance, contrary to the pre-disclosure strategy, we find that they should pay more attention to action regret behavior, which can cause them to suffer more profit loss. An effective and interesting way to mitigate the adverse impact of action regret on financial gains is to provide a reservation guarantee: reduce both the deposit and the uncertainty of the regular price. Our paper calls for careful assessments of anticipated regrets. In particular, the seller should give weight to the (action) inaction regret behavior when implementing the (non-) pre-disclosure strategy, respectively.</p>\u0000 </div>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 6","pages":"3504-3519"},"PeriodicalIF":2.7,"publicationDate":"2025-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144767942","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Value Effect of Public Data Access—A Perspective Based on Manufacturing Firms' Markup","authors":"Shuangyan Li, Dan Wang, Jun Wen","doi":"10.1002/mde.4542","DOIUrl":"https://doi.org/10.1002/mde.4542","url":null,"abstract":"<div>\u0000 \u0000 <p>The government's sharing of data resources is an essential initiative to release the economic value of data factors. However, it is a question to empirically test whether the public can effectively utilize public data to create economic benefits. Based on this, we explore the value-creation effect of public data access at the micro level from the perspective of manufacturing firms' markup. Using a sample of Chinese A-share manufacturing firms from 2009 to 2023, we view launching a city-level public data platform as a quasi-natural experiment and employ the double difference model. We find that public data access significantly improves the markup of manufacturing firms, contributing to value creation at the firm level. The finding remains consistent after robustness tests such as the parallel trend, placebo, and PSM-DID tests. Mechanistic analysis suggests that public data access facilitates manufacturing firms' markup by encouraging firm innovation and alleviating financing constraints. Further, moderating effect tests suggest that excellent data processing capabilities, high-level internal governance, and a transparent urban information environment reinforce the value-creating effects of public data access.</p>\u0000 </div>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 6","pages":"3486-3503"},"PeriodicalIF":2.7,"publicationDate":"2025-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144768111","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Edward Idemudia Agboare, Luo Guang, Atta Ullah, Huma Iftikhar
{"title":"Impact of Tech-Enabled Financial Disruptions and Internet Plus Initiative on Environmental, Social, and Governance (ESG) Performance in China: Evidence From a PVAR Approach","authors":"Edward Idemudia Agboare, Luo Guang, Atta Ullah, Huma Iftikhar","doi":"10.1002/mde.4527","DOIUrl":"https://doi.org/10.1002/mde.4527","url":null,"abstract":"<div>\u0000 \u0000 <p>Technological advancements have become an integral part of traditional industries but have also raised the question of how these modern technologies would impact sustainable practices, ethical innovation, and transparency. This study examines the impact of tech-enabled financial disruptions on Environmental, Social, and Governance (ESG) performance using a panel vector autoregression (PVAR) approach to analyze 122 A-listed Chinese financial institutions (5856 quarterly observations) from 2012 to 2023. We examined the dynamic interactions across tech-enabled financial disruptions, Internet Plus, and ESG metrics, providing insights into immediate and delayed effects. The findings reveal that tech-enabled financial disruptions boost ESG performance. However, Internet Plus implementation and its interaction with tech-enabled financial disruptions initially pose challenges but ultimately promote ESG performance as institutions adapt. These results underscore the importance of phased policy rollouts and strategic adaptation to maximize ESG advantages through tech-enabled financial disruptions. Recognizing the critical role of tech-enabled financial disruptions in enhancing ESG performance, this study suggests tailored frameworks that are capable of aligning tech-enabled financial disruptions with broader sustainable development goals for 2030. It also encourages financial institutions to integrate ESG strategies with digitalization from its onset.</p>\u0000 </div>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 6","pages":"3467-3485"},"PeriodicalIF":2.7,"publicationDate":"2025-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144767996","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Who Will Pay for the “Mine Toxic Land”?—A Dynamic Game and Simulation Study of Negative Externality Governance in Rare Earth Mines Based on Prospect Theory","authors":"Xiang Guo, Ligang Xu, Rongfu Liu, Zhengfang Zhong","doi":"10.1002/mde.4543","DOIUrl":"https://doi.org/10.1002/mde.4543","url":null,"abstract":"<div>\u0000 \u0000 <p>The contradiction between economic development and the negative externalities generated by the extraction of ionic rare earth elements, such as resource depletion and environmental pollution, is becoming increasingly prominent. Based on prospect theory, this paper utilizes the perceived value of game players to construct a perceived benefit matrix that differs from the traditional benefit matrix and a tripartite game model. On the basis of the game analysis of the evolution of static reward and punishment mechanisms, three dynamic mechanisms, namely, dynamic reward, dynamic punishment, and dynamic reward and punishment, are successively introduced for analysis. The study demonstrated that under the static reward and punishment mechanism, the three-party evolutionary game is not asymptotically stable. After the introduction of the dynamic mechanism, the evolutionary game becomes asymptotically stable, and all players in the tripartite game show a positive willingness to govern. Furthermore, varying value sensitivity coefficients result in a relatively stable perceived value of governance behaviors in rare earth mine development enterprises. With different value sensitivity coefficients, the perceived value of governance behaviors by rare earth product development enterprises remains relatively stable, while the perceived value of governance behaviors by the government and rare earth product application enterprises is more variable.</p>\u0000 </div>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 6","pages":"3448-3466"},"PeriodicalIF":2.7,"publicationDate":"2025-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144767836","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Contracting Institutions and R&D Collaboration Between Nonrivals in Competitive Industry Equilibrium","authors":"Travis Ng","doi":"10.1002/mde.4536","DOIUrl":"https://doi.org/10.1002/mde.4536","url":null,"abstract":"<p>In a duopoly model, one firm has the option to collaborate in R&D with a third party. Although collaboration can expedite innovation, the third party may unintentionally leak the innovation to the rival firm. Engaging in R&D collaboration can make the rival firm anticipate a free ride, which weakens its incentives for R&D spending. The firm can take legal action against the third party in case of information leakage. Strengthening contracting institutions improves the likelihood of success in such cases. In a competitive industry equilibrium, strengthening contracting institutions only sometimes increases R&D collaboration, industry R&D spending, and the innovation rate.</p>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 6","pages":"3414-3427"},"PeriodicalIF":2.7,"publicationDate":"2025-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/mde.4536","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144767395","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Narrative Disclosure Tone and Bank Risk: The Role of Economic Policy Uncertainty","authors":"Acheampong Albert, Ngozi Ibeji, Freeman Owusu, Thuy Nguyen","doi":"10.1002/mde.4539","DOIUrl":"https://doi.org/10.1002/mde.4539","url":null,"abstract":"<p>This study examines the impact of narrative disclosure tone (NDT) on bank riskiness, particularly in the context of heightened economic policy uncertainty (EPU). Utilizing data from 114 banks across 2052 bank-year observations between 2005 and 2022, our findings reveal a significant positive relationship between NDT and various measures of bank risk, including credit, liquidity, operational, and market risks. The results demonstrate that a negative tone in narrative disclosures heightens perceived and actual risk, with this effect being further amplified during periods of high EPU. Our study highlights the strategic importance of narrative disclosures in managing stakeholder perceptions and highlights the need for banks to carefully consider their communication strategies in volatile economic environments. These findings offer practical insights for banking institutions, regulators, and investors in understanding the complex dynamics between narrative tone, economic uncertainty, and financial risk.</p>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 6","pages":"3428-3447"},"PeriodicalIF":2.7,"publicationDate":"2025-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/mde.4539","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144767580","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Green Bonds: Greenwashing or Genuinely Green? A Study Based on Stock Mispricing","authors":"Pengfei Ge, Chuxiong Tang, Yuhui Chen, Yichao Liu, Rui Zhu","doi":"10.1002/mde.4534","DOIUrl":"https://doi.org/10.1002/mde.4534","url":null,"abstract":"<div>\u0000 \u0000 <p>The proposal of carbon neutrality has led to a significant growth in green bonds (GBs), sparking in turn widespread attention on whether these bonds are issued for genuinely green objectives or for greenwashing intentions. The extant research has not fully explored the greenwashing issue concerning GBs, particularly due to the controversies in the methods for identifying such practices. Following the outbreak of COVID-19, the global markets have seen a slowdown in the issuance of GBs, whereas China has experienced a surge in its GB market, emerging as the world's foremost issuer of GBs. In light of this economic reality and to address the research gap, this study draws on Chinese GBs as research objects and examines for the first time the issue of greenwashing in GBs through the lens of stock mispricing (SM). The results reveal that the issuance of GBs by companies significantly exacerbates SM, indicating the presence of greenwashing in Chinese GBs. Notably, the greenwashing issue is more pronounced when firms that issue GBs have political connections with the government and experience low financial risks. These findings not only enrich studies on greenwashing in GBs but also offer valuable insights for investors and regulators.</p>\u0000 </div>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 6","pages":"3396-3413"},"PeriodicalIF":2.7,"publicationDate":"2025-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144767493","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Robots and Product Exports: Evidence From Chinese Markets","authors":"Yuxin Lin, Yuhua Li","doi":"10.1002/mde.4538","DOIUrl":"https://doi.org/10.1002/mde.4538","url":null,"abstract":"<div>\u0000 \u0000 <p>As a rapidly advancing and transformative field, robotics is expected to profoundly reshape the scale, direction, and composition of international trade. However, the extent to which robot adoption affects trade in developing countries remains poorly understood. Our study evaluates the impact of robot adoption on China's product exports, utilizing detailed country-product data from 2009 to 2019. Our findings reveal that increased robot use in production substantially boosts product exports, primarily because of an enhanced comparative advantage in these products. This effect is particularly pronounced in capital-intensive industries and is most evident among resource-based, low-tech, and medium-tech products. Moreover, our research underscores how industry competition amplifies the influence of robot adoption on export growth. Notably, although robot adoption enhances the intensive margin of exports, it reduces the extensive margin. This study significantly expands our understanding of how robot adoption shapes export dynamics in developing economies.</p>\u0000 </div>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 6","pages":"3384-3395"},"PeriodicalIF":2.7,"publicationDate":"2025-04-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144767688","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Are Operating Margin, Markup and Unit Margin Good for Profit? An Approach Based on Microeconomic Theory","authors":"Louis de Mesnard","doi":"10.1002/mde.4535","DOIUrl":"https://doi.org/10.1002/mde.4535","url":null,"abstract":"<p>Managers often say that they want to make their company more profitable by increasing the unit margin, operating margin, or margin rate, making these strategic objectives. There is some confusion in their language, as these three metrics seem to be equivalent to maximum profit. We use simple microeconomic theory to show that they are inconsistent with the objective of maximum profit: the output is lower, and the price is generally higher, when these alternative objectives are chosen instead of the maximum profit. Output is lowest when the unit margin is chosen; the highest output corresponds to maximum profit; the output derived from maximizing operating margin or markup is the same and lies between the two previous maximums. Prices are in the reverse order under imperfect competition for normal goods. Maximizing margin metrics results in lower profit than maximizing profit. This has implications for how companies communicate, both internally and externally, and for their governance.</p>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 6","pages":"3375-3383"},"PeriodicalIF":2.7,"publicationDate":"2025-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/mde.4535","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144767459","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Decision-Making in M&A Under Market Mispricing: The Role of Deep Learning Models","authors":"Yuxuan Tang","doi":"10.1002/mde.4533","DOIUrl":"https://doi.org/10.1002/mde.4533","url":null,"abstract":"<p>In the ever-evolving landscape of financial markets, mergers and acquisitions (M&A) play a pivotal role in shaping the corporate ecosystem. However, the presence of market mispricing, driven by various factors such as information asymmetry, behavioral biases, and external shocks, has been a persistent challenge for investors and corporations alike. Understanding the intricate relationship between stock market mispricing and the M&A landscape is crucial for making informed investment decisions and fostering a resilient financial environment. This research explores how stock market mispricing impacts M&A within a fragmented market setting, utilizing deep learning methods to uncover complex patterns and relationships. By analyzing market inefficiencies, the study aims to provide a deeper understanding of how mispricing influences M&A strategies and outcomes. Employing a quantitative descriptive research design, the study gathered valid data through distributed questionnaires, yielding responses from 130 investors and traders, 115 market participants, and 99 regulators and policymakers. The analysis was conducted using the Statistical Package for the Social Sciences (SPSS). Firstly, it establishes the effectiveness of deep learning algorithms in detecting and quantifying stock market mispricing, providing a reliable measure of its extent. The study then explores the differential performance outcomes of companies engaging in M&A during periods of prevalent mispricing compared to those during efficient pricing. The study's novel contribution lies in the introduction of the role of sentiment analysis in deep learning models to incorporate market participants' sentiments, enhancing the accuracy of mispricing detection and its impact on M&A activity. Finally, this research contributes valuable insights into the integration of deep learning techniques in understanding and leveraging stock market mispricing for strategic decision-making in the context of M&A.</p>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 6","pages":"3352-3374"},"PeriodicalIF":2.7,"publicationDate":"2025-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/mde.4533","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144767458","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}