Outsider Board Activity,Ownership Structure and Firm Value: Evidence from Korea

Using a sample of publicly listed firm in Korea from 2002 to 2006, this article examines the impact of board monitoring on firm value and productivity. We use outsider's attendance of board meetings as a proxy for board monitoring. Consistent with the commitment hypothesis, we find that outsider's attendance rate increases firm value, suggesting that attending board meeting itself is a strong signal that reflects outsider's intention to monitor insiders. While ownership of controlling shareholders negatively affects firm value, this relationship is not moderated by increased monitoring by outsiders. Our findings provide further evidence that the outside director system is less effective in chaebol‐affiliated firms. Results also indicate that the effect of outsider's board monitoring activity on investor's valuation of the firm is greater than on productivity improvement of the firm. Our conclusions are robust for possible endogeneity in the relationship between firm value and board attendance by outside directors.     

Did the goodwill accounting standard impose material economic consequences on Australian acquirers?

This research explores the empirical association between takeover bid premium and acquired (purchased) goodwill, and tests whether the strength of the association changes after the passage of approved accounting standard AASB 1013 in Australia in 1988. AASB 1013 mandated capitalization and amortization of acquired goodwill to the income statement over a maximum period of 20 years. We use regressions to assess how the association between bid premium and acquired goodwill varies in the pre‐AASB and post‐AASB 1013 periods after controlling for confounding factors. Our results show that reducing the variety of accounting policy options available to bidder management after an acquisition results in a systematic reduction in the strength of the association between premium and goodwill.     

Challenging Small‐Scale Farming: A Non‐Parametric Analysis of the (Inverse) Relationship Between Farm Productivity and Farm Size in Burundi

We use a non‐parametric approach to investigate the (inverse) relationship between farm productivity and farm size. A kernel regression is used on data of mixed cropping systems to study the determinants of production including different factors that have been identified in literature as missing variables in the testing of the inverse relationship such as soil quality, location and household heterogeneity. Household data on farm activities and crop production were gathered from 640 households in 2007 in two Northern provinces of Burundi. Our results do not reject the findings of an inverse relationship between farm size and productivity. However, we find that size returns vary substantially with farm size, that is, between 0.2 for the smallest farms and 0.8 for the largest farms. Other factors that significantly affect production include soil quality. Finally, we find a significant positive association between food security and farm size.     

The element of surprise: the diverse impact of slightly alternative specifications of context on opinion formation in multi-level modeling

The rise of multi-level modeling in social sciences brings new challenges. Multi-level modeling, although used in a great variety of ways, aims at simultaneously assessing the impact of individual-level and context-level characteristics on a dependent variable that is measured at the individual level. However, comprehending how public opinion is affected by context and how people experience contextual changes is a challenge. Little scholarly attention has been paid to the way context is incorporated in these models. The current study compares the use of the same independent variable (GNI) measured in three different ways to predict attitudes regarding EU enlargement, trust in the EU, and European Unification in 25 EU countries, using data from the European Social Survey. We introduce an alternative way to measure change, taking a larger time span into consideration, and find that this is a good way to measure contextual surprise. Our findings show that the way a variable is measured greatly influences the size and even direction of the effect. Hence, it is crucial to assess both conceptually and methodologically the best way to measure context before one simply implements a variable and interprets empty results.     

The influence of extrinsic product attributes on consumers’ food decisions: review and network analysis of the marketing literature

ABSTRACT

The paper synthesises the existing research on the influence of key product characteristics on the consumers’ food decision-making. By applying network analysis on a sample of 233 empirical studies from the last three decades, the paper demonstrates how marketing-specific variables are embedded in a network of other predictors. The paper also analyses network structure and density using well established measures. The results show that there is still a lack of research concerning the interplay between marketing-relevant extrinsic product attributes (e.g. price, brand, labelling, country of origin) and intrinsic food attributes, policy-related factors, as well as aspects of the proximal and distal environment. The paper identifies gaps in the marketing literature and derives research propositions. Additionally, implications for marketing practice are developed.     

Network brokers or hit makers? Analyzing the influence of incubation on start-up investments

Incubators are a prominent way to support technology based start-ups. Yet, it remains unclear to what extent these incubators enhance start-up performance, nor is it known through which mechanisms this would occur. In this paper we test two mechanisms to explain the relationship between incubation and the amount of investments raised by early stage start-ups as performance measure. The ‘hit maker’ mechanism refers to beneficial effects of the direct transfer of resources and organizational or business knowledge from the incubator to the start-up. The ‘network broker’ mechanism refers to the benefits that start-ups enjoy from being connected to external funding sources through the incubator’s networks. We test which of these mechanisms contribute to the performance of early stage start-ups. Our data comes from a unique survey from 935 entrepreneurs with early-stage technology based start-ups in Western Europe and North America. We find that incubators have a positive effect on (1) the amount of funding that start-ups attract and (2) the ability of start-ups to attract funding from formal investors and banks. Moreover, our results provide evidence for the network broker mechanism, but not for the hit maker mechanism.     

Perverse Effects of Other-Referenced Performance Goals in an Information Exchange Context

We argue and demonstrate that an emphasis on outperforming others may lead to perverse effects. Four studies show that assigning other-referenced performance goals, relative to self-referenced mastery goals, may lead to more interpersonally harmful behavior in an information exchange context. Results of Study 1 indicate that assigned performance goals lead to stronger thwarting behavior and less accurate information giving to an exchange partner than assigned mastery goals. Similarly, in Study 2 performance goal individuals more subtly deceived highly competent opponents relative to lowly competent opponents, who received more blatant treatment. Finally, Studies 3 and 4 show in methodologically complementary ways that tactical deception considerations may account for the interpersonally harmful behavior of performance goal individuals.     

School Staff Autonomy and Educational Performance: Within‐School‐Type Evidence

In this paper, we show the effect of school staff autonomy on educational performance. The value‐added compared to the existing body of literature is that we employ variation in autonomy within the same country and within the same school type in order to reduce the omitted variable problem. To fully capture the informational advantage of local actors, we define autonomy as the operational empowerment of the school's direction and teachers. The Flemish secondary school system in Belgium is analysed because it displays unique within‐school‐type variation in school staff autonomy. This variation originates from autonomously operating school governing bodies that can group multiple schools and are free to delegate responsibilities to the school staff. This variation is likely exogenous because it is mainly driven by approximately random variation in characteristics and composition of the school boards. Combining detailed school‐level and pupil‐level data from the Programme for International Student Assessment (PISA) 2006 study with a semi‐parametric hierarchical model, we find a strong positive effect of school staff autonomy on educational performance. The result is shown to be robust to problems of reverse causality and simultaneity.     

Self-censorship on Internal Social Media: A Case Study of Coworker Communication Behavior in a Danish Bank

Internal social media (ISM) or social intranets provide organizations with a communication arena in which coworkers can actively contribute to organizational communication. Coworkers are, however, far from impulsive and spontaneous when they communicate on ISM. A case study in a Danish bank found that coworkers considered carefully the consequences of their posts or comments before publishing them. These coworkers perceived four different risks associated with ISM communication, and they used seven self-censorship strategies to ensure that both the content and the formulation of their communication were relevant and appropriate. Coworkers not only censor themselves by withdrawing, as previous studies have suggested, but they also postpone publishing content, phrase or frame content differently, imagine responses from organizational members, ask others for a second opinion, choose another channel, or write only positive comments. Through these seven self-censorship strategies, coworkers retain the quality of communication on ISM and prevent conflict or relational damage. Future research should explore the self-regulation strategies underlying self-censorship in order to improve understanding of the circumstances that increase the likelihood of responsible use of ISM. The potential dark side of self-censorship also requires exploration: when can self-censorship threaten coworkers’ freedom of expression, and develop into organizational silence?