Derivative Ruination in the 1990s: Les Apparences sont Trompeuses

A spectacular financial revolution spanning 20 years created new securities deriving from other securities, which trade in volumes of trillions of dollars in markets, now thought to be the largest and more important in the world. Known as swaps, swaptions, index futures, puttable bonds, collateralized mortgage obligations, stripped bonds, options, and futures, among other exotic names, these financial contracts were designed as a means of laying off risk involving conventional business transactions. This article details massive abuses in the proper use of these insurance products, which resulted in billions of dollars of speculation losses suffered by Procter & Gamble, Gibson Greeting Cards, Orange County California, Metallgesellschaft AG, various‐public employees' retirement funds—and which brought down one of Europe's oldest merchant banks, Barings PLC. © 2001 John Wiley & Sons, Inc.     

Employee perceptions of management relations as influences on job satisfaction and quit intentions

In this paper we use a relational approach to investigate how employee perceptions of their relationships with three types of managers—senior, line, and human resource managers—are related to employees’ job satisfaction and intention to quit. Based on an employee survey (n = 1,533), and manager network data (n = 140) in ten organizations operating in Australia, we found that the extent of agreement between employees’ perceptions of their relations with senior and line management was positively related to these outcome variables. In addition, we found these relationships were strengthened in organizations where HR and line managers reported high-frequency communication between the two groups. Implications of our findings are briefly canvassed.     

Regional information and market efficiency: the case of spread betting in United States college football

Using game results over a seven year span (1999–2006), we find that United States college football teams in arid regions “win” against the spread in 56.64% of games in which they host a team from a humid region. This result provides statistically significant evidence for both weak and strong form inefficiency in the spread betting markets of such games. By examining other cases of intraregional and interregional competition within the sport, we conclude that this inefficiency does not arise from the effects of travel or home field advantage. Rather, the result indicates that climate aridity is an observed characteristic for which college football betting markets do not accurately control. It is quite rare to find strong form market inefficiency arise from a single variable rather than from an elaborate, multivariable betting strategy. Therefore, the effect of climate aridity upon college football spread betting market efficiency can be characterized as dramatic. It is conjectured that remote market participants may need to “experience” certain types of relevant regional information, such as climate, to act in a market efficient manner.     

IT APPLICATIONS IN SUPPLY CHAIN ORGANIZATIONS: A LINK BETWEEN COMPETITIVE PRIORITIES AND ORGANIZATIONAL BENEFITS

Information technology (IT) is the backbone of supply chain management (SCM). However, selection of specific IT applications must be made in alignment with the organizations' competitive priorities. This article profiles differences between firms based on their level of IT usage focusing on organizational competitive priorities, choice of specific IT applications, and performance measures achieved.     

Sorting things out: valuation of new firms in uncertain markets

New business models combined with a lack of objective operating data result in significant information asymmetry and uncertainty in the valuation of new firms in emerging markets. Information asymmetry increases the risks of both adverse selection and moral hazard. When traditional differentiators of firm quality are lacking, such as in emerging economic sectors, markets may turn to secondary information sources to filter and sort firms. We investigate the roles played by observable corporate governance characteristics as indirect indicators of new firms' potential qualitative differences. Markets may sort firms based on such characteristics because they are perceived to be correlated with desired but unobservable characteristics and actions and they lower the risks of both adverse selection and moral hazard. Our study of publicly traded U.S. Internet firms found that firm market valuation was strongly associated with corporate governance characteristics (e.g., executive and director stock‐based incentives, institutional and blockholder stock ownership, board structure, and venture capital participation). In addition, firm age moderated how markets used some quality proxies to determine firm valuation during the post‐IPO period. Copyright © 2003 John Wiley & Sons, Ltd.     

An Exploratory Study to Develop a Geotourism Typology Model

This paper offers a starting point to the development of a future geotourism typology model through the adaptation of McKercher's (2002) cultural tourism typology model. This approach is tested by surveying visitors from Crystal Cave in Yanchep National Park, Western Australia. The results indicate a need to include some new elements and adapt some of the existing cultural tourism typologies to fit the geotourism context. Copyright © 2013 John Wiley & Sons, Ltd.     

National Emissions Standards,Pollution Havens,and Global Greenhouse Gas Emissions

The present study shows that the availability of “pollution havens” can negate the effect of national legislation that tightens industrial greenhouse gas emission standards. In the perverse case, a unilateral tightening of said standards in Country A (a country with relatively stringent industrial emission standards) causes a representative multinational firm to emit more units of greenhouse gas in its global production. The article highlights the potential perils of unilateral action on environmental issues that are global in nature.     

On Privatisation and Property Rights: Should China Go Down the Road of Outright Privatisation?

Fierce debate is ongoing in China concerning the appropriate role for the private sector in the current stage of reform and enterprise restructuring. There are many economists, both within China and without, who argue that China should now increase both the scale and pace of privatisation and reduce the barriers to private sector involvement in the remaining large-sized State-Owned Enterprises as a matter of urgency. This paper argues, however, that on both theoretical and empirical grounds, wholesale privatisation in China should not be adopted, that ‘fuzzy’ property rights have served China well in the last twenty years of reform and that the appropriate boundary between the public and private sectors should be drawn pragmatically and on a case-by-case basis.