Presidential Address: Liquidity and Price Discovery

This paper examines the implications of market microstructure for asset pricing. I argue that asset pricing ignores the central fact that asset prices evolve in markets. Markets provide liquidity and price discovery, and I argue that asset pricing models need to be recast in broader terms to incorporate the transactions costs of liquidity and the risks of price discovery. I argue that symmetric information‐based asset pricing models do not work because they assume that the underlying problems of liquidity and price discovery have been solved. I develop an asymmetric information asset pricing model that incorporates these effects.     

A simultaneous probit model of crime and employment for black and white teenage males

This study examines the relationships between the employability and criminality of white and black male teenagers. A disequilibrium model of employment and crime is formulated and estimated as a simultaneous probit equation system. Our results show that black teenagers who are employed engage in fewer criminal activities. Thus, it appears that blacks view employment and crime as alternative income-generating activities. On the other hand, the criminal behavior of white male teenagers is unaffected by their employment status. The evidence that we provide indicates that whites tend to use employment as a cover for crime or to moonlight in crime. The differences in the behaviors of whites and blacks can be explained, in part, by different legitimate opportunity structures for whites and blacks. One of the more important policy implications is that job opportunities targeted to high risk, black teenage populations will have the additional beneficial effect of reducing crime rates.     

Rational expectations for large CGE models: A practical algorithm and a policy application

We describe a simple iterative method for solving large dynamic CGE models under rational expectations. Details are given for Australia's MONASH model but the approach applies to a wide range of CGE models. The method is automated in the RunMONASH Windows software, putting CGE modelling under rational expectations within the reach of non-specialist modellers. We provide an illustrative application in which MONASH results under rational expectations are compared with results under static expectations. The application and supporting software can be downloaded. Results from the application are interpreted in terms of elementary economic mechanisms.     

Conceptualising the dynamics of employee information and consultation: evidence from the Republic of Ireland

The debate concerning the emerging regulatory environment for employee voice continues apace, in particular the requirements to inform and consult employees as a result of the European Employee Information and Consultation Directive. This article examines the processes used to inform and consult employees across 15 case studies in the Republic of Ireland. It evaluates different voice arrangements using a conceptual framework that seeks to capture the dynamics of different employee voice schemes across union and non‐union companies. The findings suggest that participation is more robust when the channels for information and consultation accommodate both conflictual and cooperative processes. It is shown that robust forms of participation are more likely through processes that facilitate independent representation. The evidence also shows that some employers may devise their own counterbalancing forms of (pseudo) consultation, in an attempt to minimise the impact of regulatory rights for employee voice.     

Dynamic capabilities,social capital,and rent appropriation: ties that split pies

Who reaps the fruits of a dynamic capability? We argue that while social capital is essential for the acquisition, integration, and release of resources at the core of a dynamic capability, actors can also use social capital for personal gain. Thus, social capital may be a key to understanding both rent generation and rent appropriation. Even when causal ambiguity obscures individual contributions, they may use their social capital to establish credible claims on the rent. Specifically, employees who occupy structural holes, span organizational boundaries, or who are highly central may be most able to appropriate rent because their social capital grants credibility to their claims. Rent that is appropriated in this way may be unobservable in performance measures that fail to distinguish normal compensation from rent. We contribute by identifying the specific role of social capital in a dynamic capability and linking social capital to rent appropriation patterns. Copyright © 2003 John Wiley & Sons, Ltd.     

ON MANAGING HYBRIDS: SOME DILEMMAS IN HIGHER EDUCATION MANAGEMENT

This is an exploratory and conceptual paper. It argues that the concept of a hybrid organisation offers a useful way of conceptualising some dilemmas of current higher education management. The process of hybridisation captures some of the internal stresses and management problems facing higher education institutions caught between quasi-market and commercial market pressures. The increasingly widespread contractual management style may offer an inappropriate coping structure for some of these dilemmas. An open, negotiating management style, making explicit the problems of accountability and legitimacy generated by hybridisation, may be the only way to maintain staff commitment, but is very hard to achieve in the current context.     

Asymmetric Perceptions of Ethical Frameworks of Men and Women in Business and Nonbusiness Settings

This paper examines the relationship between individuals' gender and their ethical decision models. The study seeks to identify asymmetries in men's and women's approaches to ethical decision making and differences in their perceptions of how same-sex and other-sex managers would likely act in business and nonbusiness situations that present an ethical dilemma. Results indicate that the models employed by men and women differ in both business and nonbusiness settings, that both sexes report changing models when leaving business settings, and that women were better predictors of both sex's likely ethical models.     

Equalising Share-Ownership

More effective marketing of shares in denationalised assets might increase their holdings by older and younger age-groups and women. But Dr Maureen Guirdham and Siew Choo Tan, of the City University Business School, argue that other forms of financial provision may be better suited than investment in shares fo people with lower incomes.     

Unleashing the Power of Networks: Shareholder Activism,Sustainable Development and Corporate Environmental Policy

In recent years, a new trend has emerged in which shareholder activists have formed networks to empower shareholders and magnify shareholder voices. This study explores the structural patterns and effectiveness of shareholder activism networks and shows how those networks affect corporate sustainability policies. We draw upon stakeholder influence theory, stakeholder network management theory and recent studies on activism networks to examine a shareholder activism network formed around environmental issues. The study found that (1) the structure of shareholder activist networks is largely driven by organizational attributes such as organization type, organizations’ human resources, media visibility and history; and (2) activist organizations with high centralities and eigenvector centralities enjoy more efficient results. This study contributes to our understanding of the business responses to shareholder demands on improving environmental performance and paves the way for future research on sustainable development through partnerships with shareholder networks. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment