Properties of emerging organizations: empirical evidence from Norway

The process of new venture creation is of central importance to entrepreneurship. The effects of initial organizing have a direct effect on survival, yet empirical examination of the dimensions of emerging organizations is limited. Using longitudinal data on 203 nascent entrepreneurs from Norway over the course of four years (1996?C1999), this paper empirically tests four properties of emerging organizations??intentionality, resources, boundary, and exchange??and their effect on the likelihood of continuing the organizing effort (Katz and Gartner, Acad Manage Rev 13(3):429?C441, 1988). Consistent with previous research, our results suggest that organizations which engage in a greater number of organizing activities are more likely to continue the organizing effort. In addition, intentionality, boundary, and exchange are positively associated with organizational emergence, whereas resources are a necessary, but not sufficient, condition for organizations to continue organizing. The concentration of organizing activities is also positively associated with the likelihood of continuing the organizing effort.     

SOME WELFARE IMPLICATIONS OF OPTIMAL STABILISATION POLICY IN AN ECONOMY WITH CAPITAL AND STICKY PRICES

In this paper we review and extend some of the key lessons that seem to be emerging from the Ramsey‐inspired theory of dynamic optimal monetary and fiscal policies. We construct measures of the key distortions in our economy; we label these ‘dynamic wedges’. Inflation, actual or anticipated, distorts these wedges in the present period, shrinks the tax base and increases the deadweight loss. We show that, if possible, labour as well as capital ought to be subsidised in steady state. We point to a number of extensions to the Ramsey literature that may help in the formulation of actual policy.     

Raleigh building products: A teaching case that highlights the differences between IFRS and US GAAP

Within 5 years, the United States will join the rest of the world’s industrialized countries and many emerging economies in adopting International Financial Reporting Standards (IFRS). However, many educational programs have not yet developed full curricula or integrated case studies in existing programs to compare and contrast how US GAAP and IFRS would record and present major accounting transactions.Based on events that reflect real world scenarios, this study presents a series of three Raleigh Building Products cases as an instrument to fill the current IFRS education void. The first case in the series discusses US GAAP acquisition and consolidation activities, the second case examines asset and intangible impairment under US GAAP and IFRS, and the last case adds components that differ significantly between US GAAP and IFRS. The series of cases can be used stand alone or build upon each other throughout the semester. The combined cases focus on the following key concepts: (1) calculating acquisition price; (2) preparing combination financial statements including deleting LIFO reserves; (3) measuring goodwill and other intangibles; (4) determining the impairment of goodwill due to economic declines; and (5) comparing fundamental differences between US GAAP to IFRS. The attached teaching notes detail these matters and discuss the statements of cash flows under US GAAP and IFRS.Results from classroom use indicate that this case will benefit accounting students and practitioners as IFRSs become effective in the US.     

Understanding tourists’ leisure expenditure at the destination: a social network analysis

ABSTRACT

The aim of this study is to identify spending patterns of tourists in relation to the leisure activities performed throughout their day-by-day stay at the destination. Using the methodology of social network analysis (SNA), a tourists–activities bipartite network was identified following a pattern known as core–periphery. The effect of this structure (including typology, number, and timing of performing the activities) on tourism expenditure is analysed using a multiple regression model, to which were added different sociodemographic variables and other variables related to travel. In order to better understand the portfolio of activities, four examples of networks are studied and visually represented. This study reveals that through SNA between tourists and activities, we can study the behaviour of tourists in a novel way.     

Risk Judgments in Climbers: The Role of Difficulty,Meteorological Conditions,Confidence and Appropriate Tools

Risk perception among climbers is a factor that can contribute to injury prevention. The purpose of this study was to analyze how expert climbers make judgments about potential risks to their safety. Specifically, we studied how climbers combine the available information on environmental conditions and personal resources in order to arrive at risk judgments. Sixteen distinct scenarios were presented to 134 climbers, and their risk perception related to each situation was recorded. Findings revealed that all variables were highly relevant for determining risk perception. When all variables were present at the same time, confidence was found to minimize the perception of risks caused by environmental conditions, such as difficult climbing. We conclude that an understanding of how expert climbers combine relevant information in order to judge risk can offer ways for them to take more effective preventive measures against injuries, specifically to identify hazards and their combined effects.     

As Different as Chalk and Cheese? The Relationship Between Entrepreneurial Orientation and SMEs’ Growth: Evidence from Russia and Finland

The purpose of this study is to investigate the relationship between entrepreneurial orientation (EO) and firm growth and the moderating role of business environment for Russian and Finnish small- and medium-sized enterprises (SMEs). For hypothesis testing, structural equation modeling is applied to the data set of 104 Russian and 117 Finnish privately owned SMEs. Results show that while in the Finnish market context EO dimensions are directly associated with firm growth, in the emerging Russian market the relationship is moderated by the dynamic and hostile environment. The results also provide evidence of the nature of EO for SMEs operating in Russia.     

The anatomy of returns from moving average trading rules in the Russian stock market

This paper examines the profitability of index trading strategies that are based on dual moving average crossover (DMAC) rules in the Russian stock market over the 2003–2012 period. It contributes to the existing technical analysis (TA) literature by comparing for the first time in emerging markets the relative performance of individual stocks’ trading portfolios with that of trading strategies for the index that consists of the same stocks (i.e., the most liquid stocks of the Moscow Exchange). The results show that the best trading strategies of the in-sample period can outperform buy-and-hold strategy during the subsequent out-of-sample period, although with low statistical significance. In addition, we document the benefits of using DMAC combinations that are much longer than those employed in previous TA literature. Moreover, the decomposition of the full-sample-period performance into separate bull- and bear-period performances shows that the outperformance of the best past index trading strategies over is mostly attributable to the fact that they managed to stay mostly out of the stock market during a dramatic crash caused by the global financial crisis.     

The moderating effect of bilateral investment treaty stringency on the relationship between political instability and subsidiary ownership choice

We investigate whether the degree to which a bilateral investment treaty (BIT) protects against expropriation (i.e., its “stringency”) influences the international strategy of multinational enterprises (MNEs) as they invest in countries with varying levels of political instability. We draw on institutional logic and insights from political economics to hypothesize that BIT stringency will moderate the established positive relationship between host country political instability and minority ownership. Analysis of a sample of 289 foreign investments made by AEX-listed Dutch MNEs in 34 countries between 2004 and 2013 provides support: a more stringent BIT will encourage the MNE to choose a majority stake as political instability rises. Robustness tests provide further support for our argument. The results have both managerial and policy implications relating to the role that BIT stringency plays in determining MNE strategy.     

Accountants’ Relief Foundation (ARF): A not-for-profit case examining contribution receipts and distributions

The Accountants’ Relief Foundation case study exposes students to not-for-profit (NFP) transactions and performance evaluation. Your task is to: (1) explain the advantages and restrictions associated with NFPs, (2) describe and calculate customary NFP performance metrics and assess risks, (3) determine the existence of liabilities and expenses, (4) discuss contract-timing issues, (5) evaluate differences between discretionary and non-discretionary power, (6) evaluate contribution alternatives, and (7) use primary and secondary accounting literature to solve the case.