The HRM–capital market link: Effects of securities analysts on strategic human capital

This article develops theory about an agency problem affecting the strategic human capital (SHC) of the firm. It proposes three categories of SHC‐related choices managers must make that imply a trade‐off between near‐ and long‐term performance. Dispersed shareholding, firm coverage by securities analysts, and their practice of publishing quarterly earnings forecasts are argued to entail a bias in management incentives, shifting the balance in this trade‐off toward near‐term performance. To restore the balance, securities analysts would need to distinguish transitory from recurring effects of SHC‐related choices in their valuation models (e.g., treating certain labor cost savings during cyclical downturns as transitory). Restoring the balance would also require them to anticipate long‐term effects in their long‐term earnings forecasts (e.g., long‐term positive effects of retaining employees with valuable skills during cyclical downturns). The article discusses specific transitory cost effects and long‐term effects they could potentially take into account. The skills and incentives needed by analysts to account for such effects are argued to vary across firm segments.     

Nach der Wahl: Was sind die wichtigsten wirtschaftspolitischen Herausforderungen?

Even though Germany’s economy is currently going strong, the country still faces enormous challenges if it wants to maintain and increase this prosperity. The new government should take this opportunity to set the course for the future by encouraging the digitalisation of the economy and the society as well as by ensuring that the ongoing energy transition is sustainable and efficient. Other challenges include the adverse effects of globalisation on parts of society and the uneven distribution of income and wealth. But the actual magnitude of the government’s room to manoeuver is up for debate. The new government’s fiscal space might be more limited than it seems, since an automatic adjustment of the income tax to inflation and growth is required to end the bracket creep. Given that transfer programmes are being phased out, the federal income tax surcharge to finance German unification also needs to be abolished. Further budget pressure stems from the pension system and from demands by state and local as well as European governments. The new German government should use the next governing period to initiate fundamental reforms of economic and fiscal policy that will provide adequate answers to long-run challenges.     

Wettbewerbsregeln für das digitale Zeitalter

A key aim of the ninth revision of the German Act against Restraints of Competition (GWB), intended to come into effect at the end of 2016, has been to address the current economic development induced by digitisation. Digitisation has the potential to become one of the most challenging developments for both competition policy and economic policy. This article evaluates the adequacy of the revision based on an economic analysis of the evolving market structures. These include two-sided markets and network effects, which require revision of the criteria for the evaluation of competition in markets. In addition, this article discusses the effects of the sharing economy on existing market structures, and the necessity to establish an appropriate regulatory framework and to eliminate possible market failures.     

Long-term reactions to large stock price declines and increases in the European stock market: a note on market efficiency

This study tests for underreaction and overreaction in European large cap markets by examining the abnormal returns of those stocks in the EuroStoxx 50 Index following large price increases and decreases. We find that large price increases and declines tend to be followed by average market returns. Thus, our results support the efficient market theory, rather than any of the behaviour finance hypotheses. This insight is contrary to price patterns found in various national markets.     

Retail banking and behavioral financial engineering: The case of structured products

We apply cumulative prospect theory and hedonic framing to evaluate discount reverse convertibles (DRCs) and reverse convertible bonds (RCBs) as important examples of structured products from a boundedly rational investor’s point of view. While common expected utility theory would also conclude that DRCs and RCBs are of interest to investors with moderate return expectations and underestimated stock return volatility, that theory would overestimate the market success of DRCs and underestimate that of RCBs in comparison to a situation with bounded rationality. Hedonic framing and relatively low subjectively felt competence levels of investors are decisive for the demand for RCBs.     

Corporate TV — Excellence in Emotion

Zusammenfassungen  Der Medien-Mix wird immer vielf?ltiger, die Ansprüche an ein effizientes Kommunikations- und Medienmanagement immer h?her. Insbesondere vor dem Hintergrund der Entwicklung des Web 2.0 erf?hrt das Kommunikationsinstrument Corporate TV einen enormen Bedeutungszuwachs. Wie sich die Fernsehlandschaft in den n?chsten Jahren ?ndern wird und welche Konsequenzen daraus entstehen, lesen Sie in diesem praxisnahen Expertenbeitrag.

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Dipl.-Betriebswirt (FH) Achim Bei?wenger Leiter Marketing und Vertrieb, Bavaria Film Interactive, München und Gründungsmitglied der Corporate TV Association (CTVA) sowie Doktorand an der TU Chemnitz

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Prof. Dr. Gernold P. Frank Professor für Betriebswirtschaftslehre, insbesondere Personal und Organisation am Fachbereich Wirtschaftswissenschaften der FH für Technik und Wirtschaft (FHTW), Berlin     

Globalisation, internal labour markets and the migration of the highly skilled

Over the last decade highly skilled migration has been gaining relative importance in European migration flows. Following the goods and factor markets the market for highly skilled labour has thus also started to globalise. How are the globalisation processes of the world-wide goods, capital and labour markets interlinked? What role do international enterprises and their internal labour markets play in increasing highly skilled migration? What trends can be expected for the future?     

A Time to Scatter Stones,and a Time to Gather Them: The Annual Cycle in Hedge Fund Risk Taking

Analyzing a sample of hedge fund daily returns from Bloomberg, we find a seasonal pattern in their risk taking. During earlier months of a year, poorly performing funds reduce risk. The reduction is stronger for funds with higher management fees, shorter redemption periods, and recently deteriorating performance, consistent with a managerial aversion to early fund liquidation. Toward the end of a year, poorly performing funds gamble for resurrection by increasing risk. It is largely achieved by increasing exposure to market factors, and can be linked to stronger indirect managerial incentives during the second half of a year.