Can structural change explain the Meese-Rogoff puzzle?

This paper provides empirical evidence suggesting that fundamentals matter for stock price fluctuations once temporal instability underpinning stock price-relations is accounted for. Specifically, this study extends the out-of sample forecasting methodology of Meese and Rogoff (J Int Econ 14:3–24 (1983)) to the stock market after explicitly testing for parameter nonconstancy using recursive techniques. The predictive ability of a present value model based on Imperfect Knowledge Economics (IKE) is found to match that of the pure random walk benchmark at short forecasting horizons and to perform significantly better at medium to longer-run horizons based on conventional measures of predictability and direction of change statistics. In addition, the presence of a cointegrating relation is found only within regimes of statistical parameter constancy. Augmenting the MR methodology in a piecewise linear fashion yields empirical results in favor of a fundamentals-based account of stock price behavior overturning the recent results of Flood and Rose (2010).     

Does aging influence structural change? Evidence from panel data

Our study represents a first attempt to single out the effects of aging on the entire structure of the economy that is approximated by employment shares in different sectors. We find that even after controlling for the effects of other relevant factors - e.g., income per capita, share of trade in GDP, government consumption share in GDP, population size - aging does have a statistically significant differentiated impact on the employment shares. In particular, we find that an increase in aging exerts a statistically significant adverse effect on the employment shares in agriculture, manufacturing, construction, and mining and quarrying industries. At the same time, an increasing share of the elderly (decreasing share of the youth) in society positively affects employment shares in community, social, and personal services as well as in the financial sector.     

Implementing sustainable sourcing—Does purchasing need to change?

The implementation of corporate sustainability relies strongly on the purchasing function implementing sustainable sourcing. To advance understanding of this implementation, this paper offers a threefold contribution. First, it operationalises sustainable sourcing and addresses different possibilities of ways it can be implemented according to the company-specific emphasis on each of the three sustainability dimensions; i.e., economic, environmental, and social aspects. Second, this paper identifies, based upon stakeholder theory, internal and external stakeholders and their specific salience to drive the implementation of sustainable sourcing. Furthermore, the content of those salient stakeholders' claims is analysed concerning its impact on individual, company-specific sustainable sourcing profiles. Third, this paper explores how the purchasing function may need to change its internal and external relationships due to and in the course of implementing sustainable sourcing. Covering these three aspects, this conceptual paper concludes with a framework of testable propositions and offers several avenues for further research.     

Organizational response to environmental regulation: punctuated change or autogenesis?

Theory predicts that when faced with threatening new conditions, managers often attempt to preserve the status quo by creating a buffer between the organization and the outside world. This paper presents evidence that in response to new water pollution regulation, managers indeed created buffers of technology and personnel, but in some organizations this very equipment and personnel initiated a process of incremental change that led to better environmental protection, more efficient production, and in a few cases, entirely new product and production strategies. For public policy, this research suggests that environmental regulators should allow companies time and flexibility to learn and experiment. For organizational theory, this research suggests a link between punctuated‐equilibrium models of organizational dynamics ( Tushman and Romanelli, 1985 ) and theories of self‐organizing systems ( Drazin and Sandelands, 1992 ). That is, management may respond to external changes by attempting to preserve the status quo, but in so doing influence internal deep structures that then cause organizations to gradually evolve to different behaviours and shapes. Copyright © 2000 John Wiley & Sons, Ltd. and ERP Environment     

Sensemaking in organisations — towards a conceptual framework for understanding strategic change

When an organisation is facing dramatic change, shared and individual meanings are challenged and exposed to reconstruction. Thus, if we are to understand organisational change it is necessary to understand the meanings that prevail among the organisational members, as well as the processes whereby these meanings change and coincide. This paper develops a sensemaking perspective in order to generate a conceptual framework for increasing our understanding of strategic change in organisations. Four ideal types of meaning constitute the core of this framework. With the help of these ideal types, various meaning statuses that may be present within an organisation are described. In order to grasp the transformations from one ideal type of meaning to another, four processes of transformation are identified. A strategic change process in a university hospital is analysed. In this change process different ideal types of meaning are identified. A process of a transformation from one ideal type to another, driven by strong and powerful symbolic processes, is also identified.     

The ‘third hand’: Private sector consultants in public sector accounting change

Abstract

This paper explores the role of large private sector consulting firms in the promotion and implementation of public sector accrual accounting. By focusing on an early adopter of accrual accounting for its entire public sector, this research presents an analysis of the activities of large consulting firms in the process of a significant public sector accounting change. The role of consultants in the change is presented by analysing primary data extracted from archival sources and oral histories provided by a number of prominent actors classified as users of information (politicians), producers of information (bureaucrats) or accounting consultants. The role and impact of the consulting firms' actions can be better understood by applying concepts of non-coercive isomorphism and the interplay between self-interest and perceived public interest. The consulting firms are shown to have used phantom images to promote the case for accounting change. This was done with a zealous belief that bringing public sector accounting into line with private sector accounting was an inherently righteous objective.     

Do auditors perform governance functions？ A research on the change of performance notice

Whether auditors provide high-quality audit services has been a concern of academics for a long time, but it has not clear answer. In this paper the author studies this problem from the real basis of audit activities, in view of an endless stream of the performance of listed companies notice ＂change＂ phenomenon. The author finds that auditing is the important reasons of listed companies notice ＂change＂, auditor can improve disclosure quality, is the gatekeeper to accounting information. The author also finds that there may be exist collusion of listed company with auditor, SEC should enhance inspection of the implementation of listed companies notice of earnings.     

Climate control? The relationship between leadership,climate for change,and work outcomes

Transformational leadership is seen as one of the most effective leadership styles from which the dynamic context of temporary work agencies may benefit. The current paper presents a theoretical framework that introduces participative leadership as an additional appropriate leadership style. The prediction is that transformational leadership and participative leadership both impact work outcomes via a climate for change. Data from 258 employees working for a large Dutch employment agency support these hypotheses. Results show that transformational leadership and participative leadership are both independently related to work outcomes. Moreover, results support an indirect process from participative leadership to work outcomes, via a climate for change.     

Estimation of technical change and price elasticities: a categorical time–varying coefficient approach

We propose a categorical time-varying coefficient translog cost function, where each coefficient is expressed as a nonparametric function of a categorical time variable, thereby allowing each time period to have its own set of coefficients. Our application to U.S. electricity firms reveals that this model offers two major advantages over the traditional time trend representation of technical change: (1) it is capable of producing estimates of productivity growth that closely track those obtained using the Törnqvist approximation to the Divisia index; and (2) it can solve a well-known problem commonly referred to as “the problem of trending elasticities”.     

Use of typologies for ‘measuring’ self-identity change: methodological issues in longitudinal qualitative research

A microsociological research which traced the experience of 120 women (during five years of psychotherapy they undertook to resolve existential problems) used different typologies in the organisation of qualitative data. The major typology, of psychosocial identity was of importance not only in data-ordering, but also in appreciating the changes occurring to individuals during the psychotherapeutic process. The other two typologies were essentially of sensitising concepts but also represented structural social elements and broadened the microfocus to include features of four different therapies and therapeutic communities. This article discusses the methodological implications of this technical approach to ordering qualitative data, the actual research procedure used in the creation of the typologies and, in brief outline, their content.     

Institutional change in the Schumpeterian–Baumolian construct: power,contestability and evolving entrepreneurial interests

Baumol's hypothesis, i.e. that the allocation of entrepreneurial talent in productive, unproductive and destructive activities is determined by the rules of the game, is supported by a growing body of empirical research and underpins new avenues of research in entrepreneurial studies. However, Baumol's paper offers precious few insights, beyond policy action, regarding how change to the rules of the game can be effected, because it views institutions as endogenous. This paper sets out to address this gap through an extension of Schumpeterian–Baumolian construct. The paper argues that changing institutions is a contestable process: its outcome determined by the complex nexus of interests and power endowments of actors. Changing the outcome of this contestation is dependent on the emergence of new entrepreneurial groupings and/or the evolution of the power endowments or interests of existing ones. Two historical illustrations are used to support the hypothesis and of this study.     

TFP change and its components for Swedish manufacturing firms during the 2008–2009 financial crisis

Journal of Productivity Analysis - A driving force of economic development is growth in total factor productivity (TFP). Manufactured goods are, to a large extent, exports, and represent an...     

OCB and external–internal social networks: effects on individual performance and adaptation to change

In this study, we develop and test a model that links one's internal and external social network structures to his or her willingness and ability to adapt in a changing work context. Using a survey data from 371 employees working in 133 different branches of a large financial firm, we find that individual behaviors that explain task performance and individual adaptation to change are affected by a number of supportive social ties (size of the support network) with which one receives support inside and, mostly, outside the workplace. The results also show that individual performance and adaptation to change are affected by the level of workers' organizational citizenship behavior. We also identify a mediating effect exerted by the informational network structure (mostly an internal network) on the relationship between the support network (mostly an external network) and individual task performance.     

Productivity,efficiency and technical change: measuring the performance of China’s transforming agriculture

As China enters the twenty-first century the health of the agricultural economy will increasingly rely, not on the growth of inputs, but on the growth of total factor productivity (TFP). However, the tremendous changes in the sector—sometimes back and sometimes forwards—as well as evolving institutions make it difficult to gauge from casual observation if the sector is healthy or not. Research spending has waxed and waned. Policies to encourage the import of foreign technologies have been applied unevenly. Structural adjustment policies also triggered wrenching changes in the sector. Horticulture and livestock production has boomed; while the output of other crops, such as rice, wheat and soybeans, has stagnated or fallen. At a time when China’s millions of producers are faced with complex decisions, the extension system is crumbling and farmer professional associations remain in their infancy. In short, there are just as many reasons to be optimistic about the productivity trends in agriculture as to be pessimistic. In this paper, we pursue one overall goal: to better understand the productivity trends in China’s agricultural sector during the reform era—with an emphasis on the 1990–2004 period. To do so, we pursue three specific objectives. First, relying on the National Cost of Production Data Set—China’s most complete set of farm input and output data—we chart the input and output trends for 23 of China’s main farm commodities. Second, using a stochastic production frontier function approach we estimate the rate of change in TFP for each commodity. Finally, we decompose the changes in TFP into two components: changes in efficiency and changes in technical change. Our findings—especially after the early 1990s are remarkably consistent. China’s agricultural TFP has grown at a healthy rate for all 23 commodities. TFP growth for the staple commodities generally rose around 2% annually; TFP growth for most horticulture and livestock commodities was even higher (between 3 and 5%). Equally consistent, we find that most of the change is accounted for by technical change. The analysis is consistent with the conclusion that new technologies have pushed out the production functions, since technical change accounts for most of the rise in TFP. In the case of many of the commodities, however, the efficiency of producers—that is, the average distance of producers from the production frontier—has fallen. In other words, China’s TFP growth would have been even higher had the efficiency of production not eroded the gains of technical change. Although we do not pinpoint the source of rising inefficiency, the results are consistent with a story that there is considerable disequilibrium in the farm economy during this period of rapid structural change and farmers are getting little help in making these adjustments from the extension system.     

Whatever happened to the pub crawl? — a change in attitude to charitable fundraising

This paper argues that there needs to he greater clarity in the role of today's charities and calls for structured research and evaluation of modern fundraising techniques and strategies, particularly to help smaller charities. It also blames the many councils of voluntary organisations and umbrella associations supporting the smaller charities for failing to provide adequate information and training in fundraising.     

Joining UNISON: does the reform of a union organising strategy change how members perceive their recruitment?

Drawing on survey evidence collected between 2001 and 2012, this article examines whether changes in the organising approach of UNISON were reflected in changes in the routes of entry of new members into the union. The article shows that shifts in UNISON policy were marginal to the pattern of entry into the union. The implications of these findings for the concept and implementation of organising are subsequently reviewed.     

Stock returns and real activity in the G-7 countries: did the relationship change during the 1980s?

Several empirical studies show that a substantial fraction of the changes in growth rates of real activity can be explained by lagged aggregate stock return variations in the U.S. as well as in other G-7 countries from the 1950s to the 1990s. However, the results presented in Binswanger.[International Review of Economics and Finance 9 (2000) 387] indicate that this traditionally strong relation has disappeared in the U.S. in the early 1980s. This paper shows that a similar breakdown occurred in Canada, Japan and in an aggregate economy consisting of the four European G-7 countries. The results provide evidence in favor of the hypothesis that speculative bubbles during the 1980s and 1990s were an international phenomenon.     

Can usefulness of performance appraisal interviews change organizational justice perceptions? A 4-year longitudinal study among public sector employees

This large-scale longitudinal study examined the hypothesis that the experienced usefulness of performance appraisal interviews affects justice perceptions and that changes in work life contribute to this effect. Our findings from 6592 employees who were nested in 1291 work groups over a 4-year period and who at baseline had not applied for a performance appraisal interview support this prediction. Specifically, the results of multilevel regression analyses showed that interviews that were experienced as useful improved justice perceptions significantly. In contrast, when the interviews were experienced as unhelpful, the impact on justice perceptions was negative. Furthermore, during negative changes in work life, useful interviews were especially important in helping prevent the deterioration of justice perceptions. The implications for organizational justice and the usefulness of the performance appraisal are discussed.     

What’s in it for others? The relationship between prosocial motivation and commitment to change among youth care professionals

This study assesses the relationship between prosocial motivation and commitment to change among youth care professionals. We draw on person–environment fit theory to propose that this relationship is conditional on employees’ perceived meaningfulness of the change for society and clients. Our results confirm the expected positive relationship between prosocial motivation and commitment to change. Our analysis suggests that the moderating relationship between prosocial motivation, client meaningfulness and commitment to change should be understood as a substitutive relationship: both prosocial motivation and client meaningfulness are sufficient conditions, but the presence of both is not a necessary condition for commitment to change.     

The consensus between Italian HR and sustainability managers on HR management for sustainability-driven change – towards a ‘strong' HR management system

By sustainability-driven change, we mean the transformation of a company into an active agent of broad sustainable development. This paper focuses on two key features of this transformation: (i) the key role played by the company's human resource (HR) management system within that process; and (ii) the fact that the transformation involves a variety of agents and that, among others, HR and sustainability managers are pivotal to the success of the process. Gaining consensus between them on those aspects of the HR system that support sustainability-driven change is a key success factor, as it results in a ‘strong' HR management system that sends coherent messages to the organization. In addition, consensus between the two managers can be critical in preparing a compelling business case for sustainability for the senior management of the organization. This paper explores the level of consensus between the HR and sustainability managers using a survey of 89 managers in Italian companies committed to sustainability. The results of our research indicate which elements of an HR management system are seen as important for sustainability-driven change by both the HR and the sustainability managers and what differences in perception exist between them. Based upon our findings, implications for HR practice and research are then advanced and discussed.