Technological diversity,related diversification,and firm performance

Previous findings that related diversification creates value have been called into question over concerns about methodology and measures. Reviewing existing theory to consider how a firm's knowledge base interacts with its product market activity, I address several of these concerns by creating a measure of technological diversity based on citation‐weighted patents. The measure indicates a firm's opportunity for corporate diversification based on economies of scope in valuable knowledge assets, is defined for both single‐ and multibusiness firms, and is not correlated with more fundamental aspects of diversification, such as the number of businesses in the corporate portfolio. Evidence from a large sample of firms shows the positive relationship between diversification based on technological diversity and market‐based measures of performance, controlling for R&D intensity and capital intensity as further indicators of the type of assets underlying diversification. Results hold when controlling for the endogeneity of diversification and performance in a cross‐sectional sample or when controlling for unobserved factors using panel data. Copyright © 2006 John Wiley & Sons, Ltd.     

Employee Stock Options, Corporate Taxes, and Debt Policy

We find that employee stock option deductions lead to large aggregate tax savings for Nasdaq 100 and S&P 100 firms and also affect corporate marginal tax rates. For Nasdaq firms, including the effect of options reduces the estimated median marginal tax rate from 31% to 5%. For S&P firms, in contrast, option deductions do not affect marginal tax rates to a large degree. Our evidence suggests that option deductions are important nondebt tax shields and that option deductions substitute for interest deductions in corporate capital structure decisions, explaining in part why some firms use so little debt.     

Managers’ psychological diversity climate and fairness: The utility and importance of diversity management in the hospitality industry

ABSTRACT

Despite corporate investments in diversity management programs, there is a dearth in the literature that examines managers' attitudes toward diversity management practices. This is a glaring gap in the literature because the success of diversity management programs is highly depend on managers. A survey was distributed to hotel managers from properties in the southern United States. The results showed that psychological diversity climate predicted the perceived utility and importance of diversity management, and these relationships were mediated by the fairness of diversity management. These results suggest that psychological diversity climate has an impact on attitudes toward diversity management practices.     

The impact of population growth and climate change on food security in Africa: looking ahead to 2050

Providing nutritious and environmentally sustainable food to all people at all times is one of the greatest challenges currently facing society. This problem is particularly acute in Africa where an estimated one in four people still lack adequate food to sustain an active and healthy life. In this study, we consider the potential impact of future population growth and climate change on food security in Africa, looking ahead to 2050. A modelling framework termed FEEDME (Food Estimation and Export for Diet and Malnutrition Evaluation) was used which was characterized to model the impacts of future climate changes (utilizing the Intergovernmental Panel on Climate Change Special Report on Emissions Scenarios projections) and projected population growth on food availability and subsequent undernourishment prevalence in 44 African countries. Our results indicate that projected rapid population growth will be the leading cause of food insecurity and widespread undernourishment across Africa. Very little to no difference in undernourishment projections were found when we examined future scenarios with and without the effects of climate change, suggesting population growth is the dominant driver of change. Various adaptation options are discussed, such as closing the yield gap via sustainable intensification and increasing imports through trade and aid agreements. These strategies are likely to be critical in preventing catastrophic future food insecurity.     

Simultaneous Estimation of Legal and Illegal Supply and Demand: The Case of Motion Pictures

Prior research into illegal goods has typically looked at one-way effects, such as illegal demand on legal demand. This research investigates a previously unexamined component of the market, illegal supply. The authors examine the supply and demand of legal goods and their illegal counterparts as a market system of four interdependent components. This research makes theoretical and empirical contributions by evaluating illegal supply in this system. Simultaneous equations estimate each market component on the others using data from the motion picture industry. The results find illegal supply has no effect on legal supply (movie screens), positive effects on illegal demand (piracy downloads), and some effect on legal demand (box office revenues). Timing effects highlight this: illegal supply has a positive effect on legal demand during a film’s opening week, but no effect post-launch. The other market components have positive effects on illegal supply (except legal supply, which is negative in the opening week). Additionally, illegal demand has a negative effect on legal demand during the opening week of release, but not in the subsequent weeks. This finding alleviates prior research tension as to whether piracy helps or hurts legal sales, as omitting illegal supply could result in biased estimates.     

Pinning and Promotion: How Local Television Stations Are Using Pinterest for Branding and Audience Connectivity

Over the past decade, social media have become an increasingly important component in the ways broadcasters communicate with their audiences. A relative newcomer to that mix is the social network Pinterest, which enables followers to post photos and other types of visuals based on topics of interest. A content analysis examined how 85 local television stations are using that social network for promotion and branding. Results showed that, rather than promotion, use of Pinterest primarily revolves around lifestyle content, including postings by stations and interactivity by followers.     

Natura naturans,natura naturata

In this paper, which is concerned with philosophical methodology as it might affect social science and ethics, the endeavor is to explore the depth and implications of Buchanan’s interest in Spinoza. After establishing their connection, the paper explores the parallels between Spinoza’s “dualism” and Buchanan’s own dualism and how that can shed light on Buchanan’s distinction between constitutional and operational modalities. Given their analogous perspectives, the paper then considers the possibility of dimensional shifts in the dualism, such that what was once a constitutional perspective becomes operational and how that ability to shift might affect various research agendas in the social sciences and ethics. Finally, we raise the question of how separate are the two levels and can they be brought together. In a Spinozistic framework, they ultimately would collapse into a monism, but the conclusion here is that for Buchanan there must always be a gap between them. As a result, the effort to resolve the tension between the dimensions may signal future research agendas in ethics and political economy.     

The sociology of innovation and new biotechnologies

Understanding the social processes that support innovations in new biotechnologies presents an interesting challenge. Evidence from the Australian bioindustry reveals how the development and integration of new biotechnologies is a dynamic social process. Our findings highlight how new technology acceptance and integration rested on the micro‐politics of sense‐making and relational networking.     

The Ethics of Meaningful Work: Types and Magnitude of Job-Related Harm and the Ethical Decision-Making Process

This research on the ethics of meaningful work examined how types of job-related harm (physical, economic, emotional, and cognitive) and their magnitude of consequences (MOC, low, high) influenced components of ethical decision-making (moral recognition, moral evaluations, and moral intentions). The research also investigated the moderating effects of individual differences (experience with carpal tunnel syndrome, experience with layoffs, ability to read others’ emotions, and intrinsic motivation orientation [IMO]) on the relation between the MOC and the ethical decision-making elements for each type of harm. Using a sample of 185 Chinese professionals, a between-subjects, fully crossed experimental scenario design revealed that physical and economic job-related harm were recognized as moral issues to a greater extent than cognitive or emotional harm. Second, physical job-related harm stimulated a higher level of moral evaluations than economic and cognitive harm. Third, individuals intended to act ethically when MOC was high versus low. Finally, experience with layoffs and IMO helped explain the relations between MOC and moral evaluations for economic and cognitive job-related harm, respectively. Implications for research and management are discussed.