ANALYST BEHAVIOR SURROUNDING TENDER OFFER ANNOUNCEMENTS

We examine the usefulness and credibility of analyst recommendations by focusing on their behavior surrounding tender offer announcements. For our 1998–2001 sample, we find analysts did not identify takeover targets through their recommendations nor did they distinguish between wealth‐increasing and wealth‐decreasing tender offers. We find some evidence of conflicts of interest in analyst recommendations, but it is confined to the 1999–2000 dot‐com period. However, the long‐run performance following recommendations suggests that these conflicts have little ultimate cost to investors.     

Market Orientation,Generative Learning,Innovation Strategy and Business Performance Inter‐Relationships in Bioscience Firms

We propose conceptual arguments to establish relationships between market orientation and generative learning and their respective impact on exploitative innovation strategy and explorative innovation strategy. We then consider the ambidextrous association between both forms of innovation strategy and business performance. This model is subject to an empirical test using data generated from 160 bioscience firms. Using structural equation modelling, two mutually exclusive paths are specified where market orientation leads to exploitative innovation strategy, while generative learning leads to explorative innovation strategy. We then find that the ambidexterity exhibited by firms in the form of exploitative innovation strategy and explorative innovation strategy significantly explains improvements in firms’ business performance. Discussion is given to these findings and managerial implications are presented along with avenues for further research.     

Mutual funds as monitors: Evidence from mutual fund voting

We address how mutual funds vote on shareholder proposals and identify factors that help determine support of wealth-increasing shareholder proposals. We examine 213,579 voting decisions made by 1799 mutual funds from 94 fund families for 1047 shareholder proposals voted on between July 2003 and June 2005. In an analysis of voting across funds within the same fund family, we find significant divergence in voting within families, emphasizing the importance of focusing on voting by individual funds. We also find that, in general, mutual funds vote more affirmatively for potentially wealth-increasing proposals and funds' voting approval rates for these beneficial resolutions are significantly higher than those of other investors. Our results suggest that funds tend to support proposals targeting firms with weaker governance. We also find that funds with lower turnover ratios and social funds are more likely to support shareholder proposals. Finally, fund voting approval rates significantly impact whether a proposal passes and whether one is implemented.     

Alignment,integration, and consistency in HRM across multi‐employer networks

Most studies of human resource management (HRM) have been conducted within the context of the single employing organization, which is strange given the recent growth in multi‐employer networks. In this study, the authors examine whether alignment, integration, and consistency—concepts central to or implicit in most analyses of HRM—has meaning and relevance in the multi‐employer context. They focus specifically on networks in which collaboration is intended to deliver high levels of product quality or customer service, precisely where one might expect employers would be attracted to “strong” HRM systems. Data was collected via interviews and document analysis in four networks, spanning both the public and private sectors in the United Kingdom. Despite a set of potentially favorable conditions within these networks to promote alignment, integration, and consistency, implementation was impeded by other equally powerful forces, including differences in employer goals within networks, especially between public and private sector organizations; intraorganizational tensions within internal labor markets for organizations involved in networks; using divergent HR policies between organizations within multi‐employer networks; and contradictions between the pursuit of “among employee” or “temporal” consistency for workers. Rather than prescribing a one‐size‐fits‐all solution for these problems, it is argued that detailed analysis of each network is necessary. ©2011 Wiley Periodicals, Inc.     

How to close the gender pay gap in Europe: towards the gender mainstreaming of pay policy

The European Employment Strategy includes a new commitment to a substantial reduction in the gender pay gap in European Union (EU) member states, but progress requires a radical shift away from the traditional policy emphasis on the supply‐side deficiencies of women compared with men. Mainstream theory argues that gender inequality is reduced once the pay gap is ‘adjusted’ for differences in individual characteristics (education, experience, etc.). But new empirical studies in many EU member states demonstrate that the work environment—the general wage structure, job and workplace characteristics—shapes gender pay inequality. Given the negative gender impact of trend declines in minimum wages, moves towards more decentralisation of wage‐setting and public sector restructuring, the article argues for a holistic, gender mainstreaming approach to pay policy.     

WHAT CAN CHANGES IN STRUCTURAL FACTORS TELL US ABOUT UNEMPLOYMENT IN EUROPE?

This paper examines the impact of temporal variation in labour market institutions and other structural factors on unemployment in Europe. A system comprising a labour demand and a wage equation is estimated on pooled time‐series data for the six largest EU countries for the 1980s and 1990s. The results suggest that changes in regional mismatch, trade union density and the ratio between consumer and producer prices are positively associated with structural unemployment. This result is robust to a wide variety of different specifications. No consistent role is found for other institutional factors (such as social security benefits, employment security and minimum wage).     

Right-to-Work Laws and Geographic Differences in Living Costs: Comment

A bstract . M. Reynolds and M. Edwards , commenting on R. J. Cebula's study of geographic differences in living costs in states with Right-to-Work Laws , seek to extend his results and explore the relevance of alternative variables. Cebula, in reply, addresses the comment and re-estimates the living cost impact of such laws, taking into account additional factors. Even after allowing for additional South/non-South differences , Cebula reports, the original basic model is resilient.