Long-Term Attachments and Long-Run Firm Rates of Return

Long-term attachments between workers and firms are common. Numerous studies have examined worker returns to tenure, but little is known of firm returns to firm-worker matches. Yet these attachments represent a human capital asset quasi-held by the firm, which is not captured by traditional accounting measures of firm assets. Firms with large quasi-holdings of human capital will have higher measured return on assets, other things equal. Analysis of data on 250 large manufacturing firms supports the view that firms profit from long-term attachments with their workers. Consequently, unmeasured human capital assets contribute to the explanation of persistence in measured long-run excess profits across firms.     

Demystifying the Management Structure Puzzle: an Empirical Investigation into the Drivers of REIT Internalization

Real estate investment trusts (REITs) have grown to become an important financial product in Asia, which today stands as the second largest REIT market in the world. Although existing literature has shown that externally managed REITs have underperformed their internally managed counterparts, the Asian REITs market has a strong preference for the external management model. This paper investigates the factors that drive REITs to internalize or deter them from internalizing their manager by studying the characteristics of 26 internalization subjects in Australia at their point of internalization. We compare their financial, corporate governance and portfolio characteristics to a control group. We find the MBR, the parent of the REIT manager, the asset size, and the geographic diversity of assets to be significant determinants of the probability of these REITs internalizing their manager. The low growth prospect faced by large Australian REITs that had a domestic investment focus motivates them to internalize their manager.     

Managers,values, and executive decisions: An exploration of the role of gender,career stage,organizational level,function, and the importance of ethics,relationships and results in managerial decision-making

A study of 513 executives researched decisions involving ethics, relationships and results. Analyzing personal values, organization role and level, career stage, gender and sex role with decisions in ten scenarios produced conclusions about both the role of gender, subjective values, and the other study variables and about situational relativity, gender stereotypes, career stages, and future research opportunities. John H. Barnett is Associate Professor at the University of New Hampshire, has an extensive background in international business and management consulting, and is co-founder of the Circle for Executive Experential Development. His publications include: A Business Model of Enlightenment, (1985) JBE, Personal Values and Business Decisions, (1987); Strategic Management Concepts and Cases 1988; Strategic Management Text and Concepts, 1989 and Cases in Strategic Management, 1989.Marvin J. Karson is Professor of Business Statistics and James R. Carter Professor of Management at the University of New Hampshire. He was formerly Professor of Statistics at the University of Alabama. His work has been published in a number of professional journals.     

Corporate social responsibility and provision of trade credit

In this article, we identify and examine three different views of corporate social responsibility (CSR) and the relationship between CSR and firms’ provision of trade credit. The trust view of CSR argues that CSR and trade credit provision are related positively, because CSR, as a trust-enhancing device, complements the incomplete contract nature of trade credit. The CSR literature shows that CSR firms tend to have higher cash holdings. With this in mind, the precautionary motive view of CSR suggests that cash holdings serve as a hedge against trade credit risk, while, on the other hand, the substitution view of CSR predicts that cash hoarding discourages the provision of trade credit. Using a dataset of 20,591 firm-year observations from 1991 to 2015, we find strong evidence that supports both the trust and substitution views of CSR but not the precautionary view of CSR.     

Temporal and Regional Differences In Image of a Tourist Destination: Implications for Promoters of Tourism

Based on a survey of 218 respondents from four different regional groupings, the study focuses on examining the temporal and spatial differences of the image tourists had of a place of visit. The results show that there are significant differences among some items of the image scale both in the temporal and spatial aspects. The implications and relevance of such Q study

are also discussed.     

Maximizing Behavior: Reconciling Neoclassical and X-Efficiency Approaches

International capital flows are constrained by a lack of complementary human capital, information asymmetries and transaction costs for small loan sizes. Extant research has provided a myriad of economic and cultural explanations of how microcredit has overcome these. Based on these, the paper develops a simple economic framework that accounts for these behavioral and institutional factors: a discontinuous marginal revenue curve and a U-shaped supply curve of capital for the microcredit environment. It then uses these analytical tools to explain capital flows and interest rates charged by traditional moneylenders. Finally, it uses these tools to present the growth of microcredit and the increase in financial flows and to explain why microcredit interest rates are lower than those of moneylenders, but higher than those of commercial banks to wealthier borrowers.     

Industry learning environments and the heterogeneity of firm performance

This paper characterizes interindustry heterogeneity in rates of learning‐by‐doing, and examines how industry learning rates are connected with firm performance. Using plant‐level data from the U.S. manufacturing sector, we measure the industry learning rate as the coefficient on cumulative output in a production function. We find that learning rates vary considerably among industries and are higher in industries with greater R&D, advertising, and capital intensity. More importantly, we find that higher rates of learning are associated with wider dispersion of Tobin's q and profitability among firms in the industry. These findings suggest that learning intensity represents an important characteristic of the industry environment that affects the range of firm performance. Copyright © 2009 John Wiley & Sons, Ltd.     

Evaluating Adaptive Policymaking using expert opinions

Adaptive Policymaking (APM) is a policymaking approach for dealing involving policy problems with deep uncertainty. Two barriers to getting APM used are that (1) there are few actual examples of adaptive policies developed by policymakers or domain experts, and (2) APM has rarely been used in a real-world policy setting. More specifically, there are questions that remain about the costs and benefits of APM, and the efficacy and performance of adaptive policies compared to traditional static policies. This paper addresses these questions and barriers by reporting on a workshop with experts that was aimed at developing an adaptive policy for the implementation of ISA in the Netherlands. We report on their evaluation of both the process of developing the policy and their assessment of the efficacy of the developed policy compared to that of the current policy under consideration by the Dutch national government. The experts indicated that APM increases the chances of reaching policy goals and makes better use of decision support information that is gathered during the policy analysis process. However, they also indicated that, despite these potential benefits of APM, it may be hard to implement adaptive policies due to institutional issues.