The impact of parenthood on consumption:the new car buying experience

In this article the authors discuss the new car buying experience for expectant and new parents to identify the impact of becoming a parent on the values and attitudes they exhibit during the purchase experience and in the final choice they make. In particular, the authors contend that the introduction of a first baby to a family unit will influence the buying process as parents will use consumption to express values and to determine product usage. Firstly, literature delineating the buying process is reviewed, along with literature relating to value adjustment concerning the addition of a newborn to the family unit and the influences of impending or recent parenthood upon the purchase process for a new car. Following this discussion, research suggestions and managerial implications are discussed.

Stock price reaction following large one-day price changes: UK evidence

We examine the short-term price reaction of 424 UK stocks to large one-day price changes. Using the GJR-GARCH(1,1), we find no statistical difference amongst the cumulative abnormal returns (CARs) of the Single Index, the Fama–French and the Carhart–Fama–French models. Shocks bigger or equal to 5% are followed by a significant one-day CAR of 1% for all the models. Whilst shocks smaller or equal to -5% are followed by a significant one-day CAR of -0.43% for the Single Index, the CARs are around -0.34% for the other two models. Positive shocks of all sizes and negative shocks maller or equal to -5% are followed by return continuations, whilst the market is efficient following larger negative shocks. The price reaction to shocks is unaffected when we estimate the CARs using the conditional covariances of the pricing variables.