Information reduction via level crossings in a credit risk model

This paper provides an alternative credit risk model based on information reduction where the market only observes the firm’s asset value when it crosses certain levels, interpreted as changes significant enough for the firm’s management to make a public announcement. For a class of diffusion processes we are able to provide explicit expressions for the firm’s default intensity process and its zero-coupon bond prices.      

Performance evaluation of reverse logistics in food supply chains in a circular economy using system dynamics

Supply chains are composed of multiple stakeholders who have complex interrelationships. In addition, the forward and reverse flow of materials, information, human resources, and finance occurs among different stakeholders in closing the loop of supply chains. Reverse logistics (RL) activities are gaining importance in terms of size and quantity due to both economic and environmental concerns. These flows in RL in supply chains are both dynamic and complex in nature. Further, the environmental impact of RL activities has barely been considered in holistic way in available literature. In this study, a system dynamics model has been developed to analyze and comprehend the green performance of RL activities by predicting the environmental impact of RL activities. The proposed model has been validated by a case study in the context of a food supply chain. In the company where the case study is carried out, the environmental effects of RL activities have been analyzed. These activities in a food supply chain in terms of CO₂ (carbon dioxide), NO_x (nitrogen oxide), SO₂ (sulfur dioxide), and PM (particulate matter) emissions have been predicted through a system dynamics model for the years 2020 to 2024. The proposed methodology is applied in a food supply context, a major player in retail business, especially in emerging economies. According to our findings, the RL activities in a food supply chain can significantly contribute to green performance management by minimizing food waste and loss; hence, the environmental impacts of such activities should be closely examined from a managerial perspective.     

The Role of Managerial Stock Option Programs in Governance: Evidence from REIT Stock Repurchases

This article examines the role of stock option programs and executive holdings of stock options in real estate investment trust (REIT) governance. We study the issue by analyzing how the market reaction to a stock repurchase announcement varies as a function of the individual REIT's governance structure. In particular, we examine how executive and employee stock option holdings influence the market reaction to a firm's announcement of a stock repurchase. Using a sample of REIT repurchase announcements, we find that the market reacts more favorably to announcements by firms where executives have larger option holdings and the chief executive officer is not entrenched. Our results with respect to the roles of stock option holdings of executives and nonexecutives differ from those reported for a cross-section of non-REIT firms. While we find evidence supporting the importance of executive stock options in aligning the incentives of management and reinforcing the positive signaling associated with a repurchase announcement, we find little evidence that the market views REIT repurchases as being used primarily to fund option exercise. We attribute these findings to greater dependence by REIT investors on internal governance mechanisms (such as stock option programs) as a result of regulatory restrictions that limit external monitoring such as hostile takeovers.     

Employers' organisations as social movements: Political power and identity work

The literature on employers' and business organisations (EOs) has failed to analyse them as contentious organisations that apply identity work as a power resource to mobilise resources and members. This article is based on a qualitative case study of Islamic EOs in Turkey. Developing a social movement model of EOs, I analyse the mechanisms through which identity work with local religious collaborators facilitated collective action and political power. I find that the role of identity work was threefold: providing internal solidarity, securing external legitimacy, and supporting contentious institutional change by developing new policy ideas. This model can be applied more widely as EOs have increasingly shifted from traditional roles to take on social movement characteristics.     

A time preference measure of the social discount rate for the UK

In this study the social discount rate for the UK is estimated, the result compared with the Treasury approved rate and the main associated policy implications considered. A case is argued for reducing the official discount rate in appraisals involving all long-term social projects. The estimate of the elasticity of the marginal utility of consumption, an important component of the discount rate, is supported by plausible and statistically valid regression results. The need for further work relating to other major european countries is identified so that discount rate comparisons can be made on a consistent basis.     

Coordination versus organization: Diverging logics of firm cooperation in Denmark and Sweden

Employers and their business associations have become increasingly important actors promoting market competition – even in once highly coordinated and regulated European economies. Based on a comparison of the Danish and Swedish telecommunications industries, we ask how differences in business association structures relate to the ways firms cooperate in competitive markets. In Denmark, fragmented, competing business associations encouraged a more unstable logic of coordination, with firms predominately focussed on pursuing particularistic interests in public policy lobbying and exit-oriented strategies in employment relations. In contrast, the unified business association in Sweden encouraged a logic of organization, with firms predominately seeking collective good provision in public policy lobbying and engaging in mutual gains bargaining. Findings contribute to debates on the role of business associations in fostering firm cooperation and collective regulation.     

The interaction between paternalistic leadership style,organizational justice and organizational citizenship behavior： A study from Turkey

The aim of this study is to investigate the impact of paternalistic leadership style on justice perceptions of the employees. Even though the impact of organizational justice＇s affect on employee attitudes and behaviors is a huge area of interest, the antecedents of organizational justice perceptions is a topic that needs to be further developed and leadership is one of them. In the previous studies, the impact of transformational and transactional leadership on justice was searched, but the impact of a culturally specific model namely paternalistic leadership hasn＇t been clearly investigated. This study was conducted in Turkey which respects paternalistic culture with 329 employees working in various sectors in Istanbul. The regression analyses proved that paternalistic leadership has an impact on organizational justice perceptions and organizational citizenship behaviors of the employees. And the mediating affect of organizational justice between paternalistic leadership styles and OCB was also questioned. Research models for the next studies and managerial implications were suggested.     

Financial Leverage,CEO Compensation,and Corporate Hedging: Evidence from Real Estate Investment Trusts

This paper studies the determinants of corporate hedging practices in the REIT industry between 1999 and 2001. We find a positive significant relation between hedging and financial leverage, indicating the financial distress costs motive for using derivatives in the REIT industry. Using estimates of the Black–Scholes sensitivity of CEO’s stock option portfolios to stock return volatility and the sensitivity of CEO’s stock and stock option portfolios to stock price, we find evidence to support managerial risk aversion motive for corporate hedging in the REIT industry. Our results indicate that CEO’s cash compensation and the CEO’s wealth sensitivity to stock return volatility are significant determinants of derivative use in REITs. We also document a significant positive relation between institutional ownership and hedging activity. Further, we find that probability of hedging is related to economies of scale in hedging costs.