An institutional analysis of the US foreign sales corporation

The purpose of this paper is to illustrate how institutional analysis can be applied to the study of an evolving institution—the Foreign Sales Corporation (FSC). The FSC was created by the US government to provide a tax incentive to domestic exporters. It has a checkered history because the European Union views it as an export subsidy. After establishing that the FSC is definitely an institution, Scott’s institutional synthesis is utilized as a conceptual prism to demonstrate how his framework can be utilized to examine complex phenomena. The study also tests a crucial proposition for institutional theory and explores a research question critical to the continuing development of the theory. That question deals with the persistence of the FSC as an institution.     

The influence of topic involvement on mail‐survey response behavior

In this study the influence of topic involvement on mail‐survey response rate and speed was experimentally investigated. The results show that response rates for topics that are generally considered as high involvement were higher than for topics that are generally considered as low involvement. However, the speed of response did not differ between the two levels of topic involvement. Moreover, in terms of response rates an interesting interaction effect was observed: For the high‐involvement topic, the response rate showed a further positive and significant correlation with the within‐topic level of involvement, but this was not the case for the low‐involvement topic. The implications of these findings to nonresponse bias in mail survey research are discussed. © 2002 Wiley Periodicals, Inc.     

Values and Beliefs Related to Ethical Decisions

Although there is reason to suspect thatpeople's values and beliefs influenceintegrity-related decisions, few studies haveexamined the values and beliefs related tomanagerial integrity. In the present study,197 students were asked to complete measures ofvalues and beliefs as manifest in theirpreferred courses of action when confrontedwith ambiguous situations. Subsequently, theywere asked to work on a managerial ``in-basket'task where the decisions made might result inharm to others or harm to the organization. Itwas found that values and beliefs were relatedto both types of decisions producing multiplecorrelations in the 0.40s. People whose valuesstressed growth and contributions to others, asopposed to personal gain, and believed actionswere under their control, as opposed toexternal control, exhibited greater integrity. The implications of these findings forunderstanding leader integrity are discussed.     

Optimal Policy with Tradable and Bankable Pollution Permits: Taking the Market Microstructure into Account

This paper analyzes how the way emission permits are traded—their market microstructure—affects the optimal policy to be adopted by the environmental agency. The microstructure used is one of a quote driven market type, which characterizes many financial markets. Market makers act as intermediaries for trading the permits by setting an ask price and a bid price. The possibility of bank permits is also introduced in our dynamic two‐period model. We consider two models whether the market makers are perfectly informed about the technology of the producers or not. When the market makers have complete information, the equilibrium price of permits is the same as if the market is walrasian. When they are imperfectly informed, they may set a positive spread between bid and ask permit prices, which creates some inefficiency as the marginal abatement costs of polluters do not equalize. By allowing more flexibility in the use of the permits, banking may reduce the spread. Moreover, it may introduce price rigidities due to intertemporal arbitrage. In this framework, the circumstances under which banking should be allowed or not depend crucially on the evolution of the marginal willingness to pay for the environment.     

Toepassing van de wet van Pareto op de lage inkomens

Summary Pareto’s Law may be applied only to the upper 50 per cent. of the incomes. In order to render it also applicable to the lower 50 per cent., the cumuled per cents. of the income recipients in this range must be calculated from poorest to richest. This can be established by making an examination of empirical material, and by comparing the log-log. scale with the log-normal distribution. The 10 per cent. highest incomes are higher, and the 10 per cent. lowest lower, than would follow from a log-normal distribution. Here, special factors are apparently exerting an influence upon the income distribution. The deviations from the log-normal distribution and the dispersion within this distribution are characteristic of a certain income distribution and are, therefore, important.     

Public Policy and Innovative Capabilities: The Case of Philips' IT Activities

The main aim of this paper is to analyze the impact of public policy on innovative capabilities of firms, focusing on, on the one hand, the measure of sheltering provided by the policies and, on the other hand, the effects of policies on industrial life cycles and on the life cycle related patterns of firms' behaviour. The paper deals with one sector, IT, and discusses EU and Dutch policies directed toward this sector. Furthermore, a case will be presented concerning Philips' ventures in the IT sector. The way in which public policy influenced the innovative capabilities of Philips helps to explain the relative success of the various projects.     

TRADING COSTS AND QUOTE CLUSTERING ON THE NYSE AND NASDAQ AFTER DECIMALIZATION

We examine execution costs and quote clustering on the New York Stock Exchange (NYSE) and NASDAQ using 517 matching pairs of stocks after decimalization. We find that the mean spread of NASDAQ stocks is greater than the mean spread of NYSE stocks when spreads are equally weighted across stocks, and the difference is greater for smaller stocks. In contrast, the mean NASDAQ spread is narrower than the mean NYSE spread when spreads are volume weighted, and the difference is statistically significant for large stocks. Both NYSE and NASDAQ stocks exhibit high degrees of quote clustering on nickels and dimes, and quote clustering has a significant effect on spreads in both markets.     

Multiple facets of budgeting: an exploratory analysis

This paper investigates four potential reasons for budgeting in organizations (operational planning, performance evaluation, communication of goals, and strategy formation), their antecedents (e.g., organizational strategy and structure), and several budgeting characteristics (e.g., target difficulty and budget emphasis) that potentially influence these reasons-to-budget's performance. While the idea of multiple uses of budgets in organizations is not new, the rationale for this study is that prior research has tended to look at the same (one) reason for budgeting (primarily performance evaluation), or at only one reason in isolation. Based on survey data from 57 managers responsible for preparing the budget for their organizational unit, our analyses suggest that while the four reasons-to-budget exhibit overlap, they are also substantively unique in their own use. Moreover, we demonstrate that the reasons-to-budget arise in different circumstances and that each reason-to-budget's performance is associated with different budgeting characteristics. We also demonstrate a link between the performance of the individual reasons-to-budget and overall budget satisfaction and organizational unit performance.     

The element of surprise: the diverse impact of slightly alternative specifications of context on opinion formation in multi-level modeling

The rise of multi-level modeling in social sciences brings new challenges. Multi-level modeling, although used in a great variety of ways, aims at simultaneously assessing the impact of individual-level and context-level characteristics on a dependent variable that is measured at the individual level. However, comprehending how public opinion is affected by context and how people experience contextual changes is a challenge. Little scholarly attention has been paid to the way context is incorporated in these models. The current study compares the use of the same independent variable (GNI) measured in three different ways to predict attitudes regarding EU enlargement, trust in the EU, and European Unification in 25 EU countries, using data from the European Social Survey. We introduce an alternative way to measure change, taking a larger time span into consideration, and find that this is a good way to measure contextual surprise. Our findings show that the way a variable is measured greatly influences the size and even direction of the effect. Hence, it is crucial to assess both conceptually and methodologically the best way to measure context before one simply implements a variable and interprets empty results.