Innovating for Good in Opportunistic Contexts: The Case for Firms’ Environmental Divergence

Journal of Business Ethics - Opportunistic behaviors are considered ethically and strategically troublesome since they disrupt otherwise mutually beneficial relationships. Previous literature has...     

The Macroeconomic Imbalance Procedure at the Heart of EU Economic Governance Reform

While the euro officially came into being in 1999, it was the introduction of euro notes and coins 20 years ago in January 2002 that made the common currency a tangible reality for European citizens. The circle of member states has since grown from 11 to 19, and a growing section of the population no longer has any personal experience with a “national” currency, yet the debate on the legal and institutional framework underpinning the common currency has never gone away.

     

Corporate Finance and Sustainability: the Case of the Electric Utility Industry

The electric utility industry is in transition but needs to move even faster if the country is to meet its emissions goals. The industry has historically moved cautiously, but policies and regulatory approaches must avoid unintentionally reinforcing the status quo. Incentive‐oriented policies and redesigned regulations must balance environmental sustainability with economic sustainability. The authors draw on well‐established corporate finance principles to guide more effective policies. Shareholder‐focused utility executives must make investments conditioned by three elements: (1) the return on equity the utility can expect to make on each project; (2) the investors' required return on equity capital for each project; and (3) the size of the investment. The well‐established economic value added (EVA) model can assist policy analysis: V=(r‐k)I; where V is the shareholder value created, r is the return on equity, k is the return investors require if they are to invest in the stock, and I is the scale of the project. Any new incremental V translates into higher stock prices. All three elements of their model (i.e., risk, return, and scale) require attention by regulators and policymakers to create value for shareholders. The authors show how the right state policies could create powerful incentives for shareholder focused utility executives to support such transitions.     

Shakeout in the early commercial airframe industry

The commercial airframe industry in the US experienced a shakeout from the early 1930s into the post‐Second World War period. Unlike shakeouts in automobiles, tyres, or televisions, the commercial airframe industry's early life cycle was affected by external factors, particularly government demand. Using newly digitized data on all planes introduced in the commercial market between 1926 and 1965, we find that commercial airframe manufacturers with bomber contracts during the Second World War were more likely to have postwar market share than firms without such contracts, controlling for plane characteristics and other forms of government contracting. We attribute the effect of bomber contracts to advantages in R&D learning capacity acquired by firms with military airframe contracts. Despite low (or zero) initial presence in the commercial market, these learning capacity advantages allowed such firms to survive the early period of the shakeout, and later to thrive.     

Three Triggers? Negative Equity,Income Shocks and Institutions as Determinants of Mortgage Default

The Journal of Real Estate Finance and Economics - In understanding the determinants of mortgage default, the consensus has moved from an ‘option theory’ model to the ‘double...     

Minorías étnicas foráneas y determinación salarial en China

Si bien algunos estudios observan que las minorías étnicas urbanas en China perciben salarios más bajos que la mayoría han, otros no constatan la existencia de esa brecha. Para resolver esta contradicción, los autores proponen desglosar las experiencias laborales por grupo étnico minoritario. El análisis de las minorías étnicas sobre un amplio conjunto de datos indica que las «minorías foráneas», como los tibetanos y los grupos túrquicos, sufren una penalización salarial significativa cuando se controlan las covariables, pero no ocurre lo mismo con la totalidad de las minorías. Estas conclusiones son robustas en varias especificaciones y tienen importantes implicaciones teóricas y en materia de políticas.     

Analysts’ annual earnings forecasts and changes to the I/B/E/S database

Review of Accounting Studies - I/B/E/S is a common source of analyst earnings forecast data, and the reliability of these data is important for practice and academic research. Examining a common...     

The role of relationship quality in raising organizational change acceptance: The case of the Greek hotel industry

This study examines whether the quality of an employee's relationships, within the context of the hotel industry, has an influence on their behavioral intention towards organizational change. The researchers suggest that the quality of relationships is an important element of an individual's social capital and can be evaluated using five key dimensions: the extent to which relationships are tangible, responsive and reliable, as well as the extent to which they offer empathy and assurance. Furthermore, this research examines whether organizational commitment and job satisfaction have an effect on the association between relationship quality and an individual's behavioral intention towards organizational change. The data collected from a sample of 100 hotel employees in Thessaloniki, Greece, show that relationship quality has a positive association with an individual's behavioral intention towards change. Additional results highlight the roles of job satisfaction and organizational commitment as mediating variables. Managerial implications relevant to the findings and pathways for further research are also discussed.