Affirmative Action Policy and Changing Views

Critiquing any practice, theory, or law, requires understanding the characteristics of the environment which created a need for this law. There are hundreds of different cultures in the world, and each one has its own set of norms, characteristics, and values. What in one country is perceived normal, ethical or unethical, right or wrong, may not be the same somewhere else in the world. The first civilizations begun in Africa and Europe many thousands of years ago when people were hunters and nomads, it is not unreasonable to suspect that many of those traits and characteristics have been socially transferred and/or inherited by future generations. Anthony F. Libertella is the Dean of the School of Business, Adelphi University, Garden City, NY. Sebastian A. Sora is an Associate Professor of Management, Adelphi University, Garden City, NY. Samuel M. Natale is a Professor of Management, Adelphi University, Garden City, NY and, concurrently, Senior Research Associate, Department of Educational Studies, University of Oxford, England.     

The role of female directors in promoting CSR practices: An international comparison between family and non‐family businesses

This article analyzes a panel of 550 international firms, for the period 2004 to 2010, to compare the role of female directors in family and non‐family firms in promoting responsible practices. Many studies have associated the presence of women on the board with a higher degree of socially responsible commitment. However, we found that this is much less so in family firms than in non‐family firms. In family firms, corporate social responsibility (CSR) commitment does not vary significantly with the presence of female directors, as the latter tend to behave in accordance with the family orientation toward CSR. This orientation depends on the stakeholders being addressed, with greater social responsibility shown toward external stakeholders than internal ones.     

A Comparative Study on Global Brands’ Micro Blogs between China and USA: Focusing on Communication Styles and Branding Strategies

This quantitative content analysis compares global brands’ use of communication styles and brand anthropomorphism between two leading culturally different micro blogging sites, Twitter in the United States and Sina Weibo in China. Results show that, despite some differences, communication styles on both sites are more task-oriented than socioemotional-oriented. However, global brands adopt more “give suggestions” style (task-oriented) on Twitter but apply more “tension reduction” communication style (socioemotional-oriented) on Weibo. As for brand anthropomorphism strategies, global brands use more “first and second personal pronouns” on Twitter but more “nonverbal cues and consumer nicknames” on Weibo. By applying Interaction Process Analysis (i.e., task- and socioemotional-oriented communication styles) and brand anthropomorphism frameworks to culturally different social media settings, this study extends our current understandings of how global brands use social media to communicate with their publics.     

Does technology make a difference? Evidence from Spanish hotels

Information and communication technologies (ICTs) have positively contributed to the hospitality industry. In Spain, the third tourism destination in the world, hotels have widely adopted computers and the Internet for the internal processes as well as in their relationships with their providers and customers. While some ICT solutions are common in hotels regardless of their category, others may allow to differentiate across upscale hotels and those of inferior level. This study identifies the most discriminating ICT solutions across 3-, 4-, and 5-star hotels, and discusses their potential for improving efficiency and service quality. In particular, digital technology, loyalty programs, and ambient intelligence are some of the most differentiating technologies, which may be implemented by 3- and 4-star hotels to improve the perceived quality of their processes and services.     

Information Consequences of Accounting Conservatism

Abstract

We study the information consequences of conservatism in accounting. Prior research shows that information asymmetries in capital markets lead to firm-level increases in conservatism. In this paper, we further argue that increases in conservatism improve the firm information environment and lead to subsequent decreases in information asymmetries between firm insiders and outsiders. We predict and test if this decrease in information asymmetries manifests itself through: (a) a decrease in the bid–ask spread and in stock-returns volatility, and (b) an improved information environment for financial analysts, leading to more precise and less dispersed forecasts, and to more analysts following the firm. Using a large US sample for the period 1977–2007 and several proxies for conservatism we find robust evidence consistent with our expectations. Our results are in line with conservatism being useful not only for debt-holders, but also for equity-holders.     

Market power and reputational concerns in the ratings industry

This paper studies the incentives of rating agencies to reveal the information that they obtain about their client firms. In the model, rating agencies seek to maximize their reputation and protect their market power. They observe public information and obtain either precise or noisy private information about a firm. Reputational concerns dictate that a rating reflects private information when it is precise. However, when private information is noisy, two situations arise. In a monopoly, the rating agency may ignore private information and issue a rating that conforms to public information. Under some conditions, it may even become cautious and issue bad ratings ignoring both types of information. With competition, however, it has incentives to contradict public information as a way to pretend that it holds precise private information. Moreover, it may become more likely to issue good ratings in an attempt to protect market power.     

Customer interaction in environmental innovation: the case of cloth diaper laundering

The aim of this paper is to illustrate the capability of a customer of a service business to act as a co-manufacturer. Thus, the customer becomes a key element in simultaneously improving environmental performance and competitiveness, in both the environmental dimension as well as in other dimensions. To this end, we have analyzed the case of the Dydee Company. In order to address the root of the environmental issues, certain procedures were used to change the customers’ habits. This option turned out to be much more efficient and less risky than its alternatives. The challenge laid in getting the customers, once informed, to be willing to modify such a personal and delicate task. The exchange rate at the time of writing this case analysis (9 September 1999) was 166 pesetas to the dollar, that is, approximately the current value of 1 euro.     

Forecasting volatility in GARCH models with additive outliers

We model the volatility of a single risky asset using a multifactor (matrix) Wishart affine process, recently introduced in finance by Gourieroux and Sufana. As in standard Duffie and Kan affine models the pricing problem can be solved through the Fast Fourier Transform of Carr and Madan. A numerical illustration shows that this specification provides a separate fit of the long-term and short-term implied volatility surface and, differently from previous diffusive stochastic volatility models, it is possible to identify a specific factor accounting for the stochastic leverage effect, a well-known stylized fact of the FX option markets analysed by Carr and Wu.     

Performance of interest rate rules under credit market imperfections

The stabilization effects of Taylor rules are analyzed in a limited participation framework with and without credit market imperfections in capital goods production. Financial frictions substantially amplify the impact of shocks, and also reinforce the stabilizing or destabilizing effects of interest rate rules on output. However, these effects are reversed relative to new Keynesian models: under limited participation, interest rate rules are stabilizing for productivity shocks, but imply an output-inflation tradeoff for demand shocks. Moreover, because financial frictions imply excessive fluctuation, stabilization via an interest rate rule can be a welfare-improving response to productivity shocks.     

Cultural policy and urban regeneration in Western European cities: lessons from experience, prospects for the future

This paper reviews the uses of cultural policy and planning as tools of urban regeneration in western European cities. Following a brief assessment of the evolution of European cultural policy in recent decades, the paper studies the origins and development of the European City/Capital of Culture programme and explores the experience of cities considered to have succeeded in re-imaging and regenerating themselves through cultural activity and special events. The paper ends with a reflection on the notion of cultural planning and its potential as an integrated alternative to urban cultural policy, and offers recommendations for further development within the UK context.