Herding behaviour and sentiment: Evidence in a small European market 

Abstract

This work studies herding behaviour in a small European market, by analysing the stocks that constitutedthe Portuguese stock PSI-20 index, for the period between 2003 and 2011. The two different approachesused to measure herding intensity led to different results, suggesting that measurements of the herdingphenomenon are sensitive to the method used. Consequently, there is a need for further research into themethodology used to test this phenomenon. Additionally, the study analyses the relationship betweenherd behaviour and investor sentiment, an area that has been little explored. In applying causality teststo the impact of sentiment on herd behaviour, only weak evidence is found that sentiment influencesherding.

Governance, product market competition and cash management in IPO firms

Abstract
This study evaluates the link between CEO governance heterogeneity, power structure of the firm, and product market competition on various facets of post-IPO cash policy. Our results suggest that post-IPO cash holdings as well as marginal value of cash reserves are higher under a founder CEO governance regime relative to non-founder CEOs. Concentrating board power in the hands of founder CEOs however, reduces their ability to maintain higher post-IPO cash reserves. Our results also suggest that product market competition influences both the level and marginal value of cash reserves in the hands of founder CEOs. Further, we find that stronger internal governance reduces the tendency of IPO firms to deploy excess cash reserves to fund internal investments in excess of industry rivals. Finally, our results suggest that excess cash reserves in competitive industry environments lead to superior post-IPO operating performance.

Exploring the impact of communication effectiveness on service quality, trust and relationship commitment in IT services

Abstract
Most firms today are served by specialized IT service providers for the development and maintenance of their business information systems. During the IT service encounter, service providers and clients interact throughout the project, exchanging information, sharing knowledge and making critical decisions. From the IT service provider's viewpoint, it is important to raise the level of clients’ relationship commitment during this service encounter as their business continuity depends upon clients assessment. Intuitively, effective communication and effective service quality, mediated by trust, are critical factors in raising the level of relationship commitment. This study proposes an empirical model consisting of four critical antecedents of relationship commitment (communication effectiveness, technical service quality, functional service quality and trust) and then tests the model using data points solicited from two global firms. Study results revealed that trust is a strong mediator for relationship commitment while functional, rather than technical, service quality is a stronger mediator in forming the clients’ trust.