Law and industrial buyer-seller relationships: The privatization of a Mexican State-Owned steel company

This article examines the impact of privatization on the purchasing practice of a state-owned steel company in Mexico. It looks first at the changes in the law which affect the relationships of state-owned enterprises with their suppliers. It then presents possible implications of these legal changes for buyer-seller relationships drawn from transaction-cost and institutional theory. Finally, it compares the predicted and actual impact of privatization and draws some preliminary conclusions. © 1993 John Wiley & Sons, Inc.     

The impact of firmspecific capabilities on the amount of capital raised in an initial public offering: Evidence from the biotechnology industry

Going “public” has a magical sound to most entrepreneurial managers. By going public the firm increases its legitimacy in the business community, improves access to debt financing, and creates a means of exit for major shareholders. However, by far the most important reason for going public is to infuse a significant amount of investment capital into the firm. It is well documented that small businesses frequently fail because of insufficient funding and heavy debt loads. Issuing an initial public offering (IPO) allows entrepreneurial firms to overcome these pitfalls. Clearly, if access to capital is the major goal of going public, then the success of an offering is measured by the amount of capital raised by the firm. This study presents a model of the total amount of capital raised by a firm through an IPO. The explanatory variables include several indicators of the scientific capabilities of the firm including the location of the firm, the quality of the research staff, the number of products under development, the number of patents held by the firm, and the firm's prior spending on research and development (R&D). The model is empirically tested on a sample of 92 biotechnology IPOs. The results provide strong support for the hypothesized positive relationship between the total amount of capital raised by a firm's IPO and the scientific capabilities of the firm.Our results have important implications for entrepreneurs. First, an entrepreneur needs to develop and send credible signals indicating the value of the firm's intangible assets to the market. Second, the market values as deep a product pipeline as possible given a firm's resource constraints. Third, choice of location is a key strategic decision that should not be overlooked. Fourth, the market values firm-specific capabilities and will increase the capital it is willing to invest in a firm accordingly. Finally, the amount of capital a firm raises in its IPO can be influenced by entrepreneurial managers' strategic decisions.     

The public bond offering of Petróleos de Venezuela S.A.

In April 2007, Petróleos de Venezuela S.A. (PDVSA) issued debt for USD 7.5 billion, the largest debt offering to date by a Latin American company. The conditions surrounding this issue, which was denominated and tradable in dollars, but payable in bolivars, were quite special, particularly when considering the strict foreign exchange control system put into place by the Venezuelan government in 2003. The fact that the bond issue attempted to fulfill the dual purpose of offering dollars to local companies and investors in the midst of prevailing exchange rate controls, while helping to finance PDVSA as a company, creates a unique dilemma that is ideal for class discussion. This teaching case provides the information necessary for estimating and proposing a price for PDVSA's bond offer.     

Attitudes to privatization of UK public utilities: Anticipating industrial practice and environmental effects

Attitudes toward the impending privatization of the UK electricity supply and water industries were assessed by means of a questionnaire distributed to 225 visitors to holiday beaches in SW England as part of a broader survey of perceptions of coastal pollution. The water industry was evaluated more negatively than the electricity industry in terms of both its present performance and the changes in its practice anticipated after privatization. The levels of pollutants in the immediate environment were expected to increase, with those individuals most opposed to privatization being especially pessimistic. The results suggest that respondents did not consider privatization to be a corrective for poor previous industrial practice, but rather that it would lead to improvement where an industry was seen as performing well, and deterioration where it was seen as performing badly. At worst, this was seen as likely to involve the privatized industries putting their own financial interests ahead of those of the public and the environment. It is argued that individuals based their attitudes on previous experience and on assumptions about the effects of market forces on behaviour that differed from those implicit in the policy of privatization.

---

Einstellungen gegenüber der Privatisierung von öffentlichen Strom- und Wasserlieferanten: erwartetes unternehmerisches Verhalten und erwartete Umweltwirkungen

Zusammenfassung Als in Grossbritannien die Privatisierung der öffentlichen Strom- und Wasserversorger bevorstand, wurde die Einstellung zu diesem Vorgang im Rahmen einer umfassenderen Umfrage zur Wahrnehmung der Küstenverschmutzung anhand eines Fragebogens erhoben, der an 225 Gästen an südenglischen Ferienstränden ausgegeben wurde.Bei einem Vergleich wurden die Wasserversorger weniger gut als die Stromversorger bewertet, und zwar sowohl hinsichtlich ihres gegenwärtigen Leistungsniveaus als auch hinsichtlich der Veränderungen, die als Folge der Privatisierung vermutet wurden. Es wurde erwartet, dass die Schadstoffemission in der unmittelbaren Umbebung zunehmen würde, wobei die Befragten mit der stärksten Vorbehalte gegen die Privatisierung in dieser Hinsicht besonders pessimistischen waren.Nach den Befunden betrachten die Befragten die Privatisierung weniger als Korrektiv bisherigen mangelhaften unternehmerischen Verhaltens als vielmehr als Anlass für eine scherenförmige Entwicklung, nach der bislang schon gut bewertete Anbieter noch besser werden, wogegen bislang schlecht bewertete noch schlechter werden. Schlimmstenfalls wurde angenommen, dass die privatisierten Unternehmen ihre eigenen finanziellen Interessen über allgemeine und Umweltinteressen stellen würden. Dere Beitrag folgert, dass die Befragten ihre Einstellungen auf bisherige Erfahrungen gründeten und auf Annahmen über die Verhaltenswirkungen der Marktkräfte, die von den entsprechenden Annahmen der Privatisierungspolitik abweichen.

---

---

J. Richard Eiser is Professor of Psychology, Steven D. Reicher is Senior Lecturer in Psychology and Tessa J. Podpadec is Research Fellow in the Department of Psychology, University of Exeter, Exeter EX4 4QG, UK.This research was supported by a grant from the Economic and Social Research Council, UK, Ref. no. WL104251006.     

国外公用企业民营化进程中治理结构变革及经验借鉴

公用企业效率低下的问题,是一个世界范围内普遍存在的问题对我国公用企业治理结构的考察表明,尽管相当多的公用企业从形式上已经建立起了现代企业制度,但其各个职能机构却并没有发挥出应有的职能.本文以欧洲的 OECD 国家电信企业为主要研究对象,分析西方发达国家公用企业在民营化进程中治理结构方面所做出的变革措施,以期对完善我国公用企业的治理结构提供经验借鉴.     

The privatization of telecommunications services: The case of Argentina

The Argentine telecommunications system is characterized by its poor quality of service. A deep national economic crisis and a huge fiscal deficit, combined with worldwide changes in the telecommunications sector, lead the Argentine government to the privatization of ENTel beginning in 1989. Herrera provides a detailed account of the economics surrounding the decision to privatize and the privatization program itself.     

The manager seeking virtue: Lessons from literature

The authors argue that studying classic literature (fiction) is useful in strengthening the manager's ability to resolve specific ethical dilemmas.The authors summarize stories, plays and novels that explicitly address a series of ethical trials common to many managers (e.g., whistleblowing, discrimination and greed). Recognizing the multicultural nature of contemporary business practice, the authors draw upon literature from Europe and Asia to illustrate their thesis. Studying literature offers a challenging and personally compelling method for managers (and management students) to improve their moral sensitivity and strengthen the decision making skills used in addressing the ethical ambiguities of business practice.The article concludes with a supplemental reading list that summarizes additional pieces of international literature with strong business ethics themes.Tony McAdams is Professor of business law in the Management Department at the University of Northern Iowa. Professor McAdams has been published in theHarvard Business Review andThe Academy of Management Review, among other journals, and he is the principal author of the text,Law, Business, and Society. He received the 1978 Distinguished Teaching Award from the student government at the University of Kentucky.Roswitha Koppensteiner received an MBA degree from the University of Northern Iowa in 1990.     

The role of government in Poland's economic transition: Ideas and experience from the recent past

Privatization is undoubtedly the sine qua non longrun mechanism for revitalization and modernization of the Polish economy. Weak governance and institutional weaknesses inherent with the political and economic transition have manifested in poor performance of the privatization program. Krawczyk and Lopez-Lopez summarize personal experience with the Polish restructuring and privatization programs and provide insightful comment for policy makers and program designers modelling the Polish experience.     

浅议针对上市公司会计信息造假现象的对策

当今社会是信息化社会,人们的工作、生活离不开各种信息,上市公司披露的会计信息无疑是其中重要的一种.我国近些年来,上市公司信息披露造假案件层出不穷,屡禁不止.如何有效的防范会计信息造假是当前国家有关管理部门考虑的一个棘手问题.针对上市公司造假现象笔者提出了几点应对措施.     

上市公司会计信息披露问题及对策

上市公司也存在着:通过关联交易,人为调整利润;大量资金被企业股东侵占;企业风险没有得到有效揭示等等情况.本文拟通过对会计信息披露现状入手继而提出应对策略.     

The liberalisation of air transport: Lessons from the USA

The planned liberalisation of European air transport has run up against the problem that there is little scope for further expansion of airport infrastructure. If liberalisation is to be a success, the available infrastructure will have to be used more intensively. This means introducing efficient procedures for awarding take-off and landing slots in Europe. The policy pursued hitherto in Germany and the EC and lessons from the USA do not nurture hopes that the liberalisation of European air transport will be a huge success.     

Designing,developing, and deploying artificial intelligence systems: Lessons from and for the public sector

Artificial intelligence applications in cognitive computing systems can be found in organizations across every market, including chatbots that help customers navigate websites, predictive analytics systems used for fraud detection, and augmented decision-support systems for knowledge workers. In this article, we share reflections and insights from our experience with AI projects in the public sector that can add value to any organization. We organized our findings into four thematic domains—(1) data, (2) technology, (3) organizational, and (4) environmental—and examine them relative to the phases of AI. We conclude with best practices for capturing value with cognitive computing systems.     

Time-restricted sales appeals: The importance of offering real value

Time limitations on special-purchase offers may spur consumers to take action, but using time restrictions does not always mean that consumers will buy more of an item. A study of buyers' responses to a supposed time-restricted offer at a quick-service restaurant found that the desirability of the offer helped determine whether imposing some kind of time restriction boosted sales. Purchases increased substantially when customers were presented with both a strong argument for purchase and a time restriction. However, when the argument for purchase was a weak one, the time restriction had no effect on purchases. The authors theorize that a time restriction causes would-be buyers to give focused, careful consideration to the offer. If the product is desirable, that additional consideration can spur more purchases—but the reverse is also true, and thus a weak purchase argument can actually dampen sales.     

Serving those going private: The role of accountancy in privatization

Privatization, as a term and as an art, has been growing steadily in importance since the 1980s. But what is it, and how is it actually accomplished? Mastrangelo and McPhail set forth a primer explaining the basic concepts of privatization, and the roles taken on by the “Big Six” accounting firms and, to a lesser extent, consultancies and investment banks.     

The making of an African success story: The privatization of Kenya Airways

This article explores the transformation of Kenya Airways from a loss‐making stateowned enterprise (SOE) to a very successful, profitable African airline and its relationship with KLM‐Royal Dutch Airlines. First, it analyzes the circumstances leading to the creation of Kenya Airways and then discusses the managerial and financial problems it encountered from the period it was set up until it was privatized. It also attempts to explain why and how Kenya Airways has been able to use privatization to avert liquidation. In this regard, it explores the benefits of privatization for the airline and the country as a whole and highlights lessons learned from this experience for the privatization process and strategies in Africa. © 2005 Wiley Periodicals, Inc.     

Religion and Business Ethics: The Lessons from Political Morality

The issue of whether religious belief should be an appropriate grounding for business ethics raises issues very similar to those raised in asking whether religious belief should be an appropriate grounding for political morality. In light of that fact that writings in political morality have been a common resource for contemporary business ethics, this paper presents contemporary arguments about the role of religion in political morality while noting the relevance of these debates for business ethics.The paper takes the position that rather than excluding religion from public morality, political morality (and business ethics) ought to take an inclusive, ecumenical approach. To argue this position and to present fully a range of literature normally not studied in business ethics circles, the paper presents and critiques the major contemporary authors in the field of political morality and contrasts them with the inclusionists who seek to keep public grounds open for all moral perspectives.     

A Board's Journey into Complexity Science: Lessons from (and for) Staff and Board Members

Complexity science has been used as a lens to interpret organizations (Goldstein 1994; Morgan 1993, 1997; Stacey 1992, 1996a; Wheatley 1992; Wheatley and Kellner-Rogers 1996; Zimmerman 1993a, 1993b). These interpretations have shone a light on aspects of organizations that were idiosyncratic or at least difficult to reconcile with dominant organizational theories. In this paper, we go beyond interpreting results through a complexity lens to demonstrating how board members and staff of an organization deliberately applied insights from complexity science to improve their work. Using an action learning approach, we worked with the board and staff for a year. One of the lessons from this journey was the need to differentiate between "fake" complexity and real complexity. Using "fake" complexity, simple issues were complexified and complex issues were avoided. Another key lesson was the role of relationships for complex issues. This paper presents a "STAR" relationship model to help organizations discern the generative potential of current and future relationships. Each point, or letter, of the STAR represents one dimension of a potentially generative relationship. Through the action research process, both the researchers and the members of the organization extended our understanding of how complexity science can enhance the capacity to evolve in a rapidly changing environment.     

The State as Economic Engine: Lessons from the Japanese Experience

This article reconsiders the problem of over-expansion of which many business groups in South Korea and other Asian countries have constantly been accused and concludes that their over-expansion had no direct bearing on the recent crisis. If these business groups have problems, they are, for example, poor management, weak governance and deficient accountability rather than over-expansion. In this regard the reformminded government is justified in taking restrictive measures against the big groups to deal with such problems. Nonetheless, it is suggested that the government would be ill-advised to seek the ultimate dissolution of such groups.     

Beware of Financial Repression: Lessons from History

Intereconomics - As austerity policies are unpopular with voters and high debt levels are a drag on growth, several economists, most famously Carmen Reinhart and Kenneth Rogoff, have suggested that...