Last dance or second chance? Firm performance,CEO career horizon,and the separation of board leadership roles

In recent years, many firms have chosen to separate their CEO and board chair positions. Prior research has demonstrated that there are three forms that a CEO–board chair separation can take: apprentice, departure, and demotion. In this paper, we examine the antecedents of these three types. Our results show that the three types of separation each have different profiles in terms of the prior performance of the firm, the independence of the board, and the career horizon of the incumbent CEO. The findings in this paper provide unique insights into the factors that drive boards' structural choices. As questions about board leadership structure become more nuanced and more relevant in both scholarship and practice, a full understanding of these factors will only become more important. Copyright © 2013 John Wiley & Sons, Ltd.     

The Role of Nonattenuated Rights in Positive Economics: A Critical Appraisal

This article assesses the institutionalist elements of Friedrich Hayek's neoliberal political economy by presenting his views on the entangled relations between the state and markets in capitalism. Through the analysis of Hayek's work, the article contributes to further consolidating the view that neoliberalism is an ideological project of institutional transformation which, despite some enduring myths, has an irreplaceable role for a state with many important functions in a more limited democracy. Markets, for their part, are politically contested social constructions that depend on previous non-market institutions for their existence and legitimation. This paper argues that Hayek's work corroborates this institutionalist claim.     

A Framework for Reconsidering the Lake Wobegon Effect

The Lake Wobegon Effect (LWE) describes the potential measurement-error bias introduced into survey-based analyses of education issues. Although this effect potentially applies to any student-report variable, the systematic overreporting of academic achievements such as grade point average is often of preeminent concern. This concern can be easily circumvented if official records data are available; however, many researchers can only access student-reported data. In this article, the authors examine whether using student-survey data in place of official records data meaningfully biases regression estimates. They motivate their contribution by noting a useful statistical feature of overreporting on bounded variables such as grade point average. Specifically, the misreports will be negatively correlated with the true grade point average, yielding a form of nonclassical measurement error that actually counteracts the bias. The authors connect this observation to reliability ratios used in labor economics, which are simple ways to adjust for attenuation bias, when needed. In two applications, we find that it is unnecessary to correct for the LWE bias because it is so small.     

What Influences Trader Choice of Electronic versus Intermediated Execution?

We examine the determinants of US equity trader choice of electronic versus intermediated execution. While traders exhibit a strong overall preference for automation, when the market is less liquid at order submission time, traders seek market maker automated and human order‐matching services more often. Traders' overall tendency to choose intermediaries is highly correlated with their demand for liquidity. Market maker participation rates are higher for more active and larger size traders. Traders who choose intermediaries more often trade more stocks, execute orders quicker, price orders more aggressively, and disperse their trading over longer periods of time. Although US stock intermediaries continue to lose market share, our results highlight the important role these firms can play in an increasingly automated, electronically driven marketplace.     

The Taiwanese love motel - An escape from leisure constraints?

The paper reports research derived from over 800 respondents who self-completed questionnaires while patronising love motels in the Taipei greater metropolitan region, Taiwan. The paper provides a brief history of Taiwanese love motels and distinguishes them from western massage parlours. Five clusters are found that are based on two primary canonical discriminate functions that explain 83 percent of the variance - the dimensions being sexual conventionality-adventurousness and comfort seeking. These dimensions are wholly consistent with the basic premise of the love motels, although additionally privacy for intimate relationships is also important. The survey questionnaire was based on a concept of physical and relationship constraints on leisure, and generally it was found that the ‘push’ factors based on a need to escape these constraints was weaker than the ‘pull’ factors of comfort and privacy.     

Saltwater Crocodiles as Tourist Attractions

These study reports the results derived from a pilot research study based on a phenomenographic research approach with 50 respondents in the Northern Territory of Australia. The data permitted a perceptual map to be drawn which identifies tourist fascination with crocodiles as being based on attributes of potential threat, danger, power, links with the prehistoric, and survivorship. However the study also found that when asked to describe the Northern Territory, crocodiles did not immediately come to mind, even though, arguably, the reptile is etched upon the ethos of the 'Top End'. However prompted responses quickly elicited mention of crocodiles. There was also a preference to see crocodiles within their natural terrain. Some evidence of a minority of tourists being prepared to mitigate their behaviours was also found, and hence this study may have wider implications.     

A hard sell? The prospects for apprenticeship in British retailing

We consider the prospects for apprenticeship in British retailing in terms of the contribution of apprenticeship to intermediate skills and the contribution of large employers to the Advanced Apprenticeship (AA) programme. Evidence is taken from interviews with training and HR managers from 17 large employers. We find that AA is for the most part unpopular with large retailers, who prefer to acquire intermediate skills through the upgrade training of existing employees through bespoke, in‐house training programmes and, to a lesser degree, via the recruitment of skilled workers. The one exception to this rule is to be found in the convenience stores sub‐sector of retailing, where the breadth of skills supplied by AA fits in well with employers' requirements. Even here, however, the scale of Apprenticeship is limited both in terms of the numbers of Apprentices being trained and also in terms of employers' own investment in the training of their Apprentices.     

Work-Family Conflict: A Virtue Ethics Analysis

Work-family conflict has been examined quite often in human resources management and industrial/organizational psychology literature. Numerous statistics show that the magnitude of this employment issue will continue to grow. As employees attempt to balance work demands and family responsibilities, organizations will have to decide to what extent they will go to minimize this conflict. Research has identified numerous negative consequences of work-family stressors for organizations, for employees and for employees' families. There are however many options to reduce this strain, each with advantages and disadvantages. An ethical analysis, from a virtue ethics perspective, is applied to this timely issue to present an alternative view in addressing this critical business decision. In addition, a strong connection between the virtue ethics analysis and a well-known management theory is given to provide a foundation for managerial implications for resolving work-family conflict.     

“Following” or “attracting” the customer? Japanese Banking FDI in Europe

Using firm-level Japanese FDI data on investment into 18 European countries between 1970–2000 in all industries (banking, manufacturing, wholesale/retail distribution, and business services), this study examines if the “follow the customer” (FTC) hypothesis holds for firm-level data. The results suggest that banks do follow their customers into a foreign market, as part of a larger strategy that goes beyond the FTC theory. The firm level data show that the majority of FDI into a host country occurs after the foreign bank has established operations. Policy implications of this finding include the suggestion that host economies liberalize their financial sector early in an effort to attract banking FDI which then will attract non-banking FDI rather than the reverse.