Does Payment For Order Flow To Your Broker Help Or Hurt You?

The presumption is that a broker executing a stock trade for a retail investor will get the investor the best possible price execution for the transaction. In fact, the broker often sells the retail investor’s trade to an intermediary for cash payment. The broker’s motivation to generate dealer profits seems to overcome the broker’s fiduciary responsibility to obtain the best execution price for the customer, raising ethical questions. Purchasers and internalizers of order flow in the market may cause prices quoted on the NYSE to deteriorate, making all investors worse off. University of Notre Dame Finance Professor Robert Battalio received a Bachelor of Science from Texas A&M University and a Ph.D. from the Indiana University. University of Notre Dame Finance Professor Tim Loughran received a Bachelor of Arts and a Bachelor of Science from the University of Illinois (Urbana), an MBA from Indiana University, and a Ph.D. from the University of Illinois (Urbana).     

青云创投:利成于益

"Doing Well By Doing Good"——做好事才能做好生意,越来越多的企业开始引用和信奉这句话。我们在此次的企业公民案例中报道的社会责任投资公司——青云创投按照中国人的语言习惯,将其翻译为"利成于益",并作为自己的企业理念。跟一般的慈善行为不同,企业公民行为追求社会利益与企业自身利益的和谐,社会、环境和企业的三重盈余。而越来越多的企业也开始运用自己做好生意的能力来做好事,比如在此次我们报道的其他企业公民案例中,合众人寿利用自己庞大的业务员队伍来实现对真正需要财务资助学生的"人肉搜索",惠氏利用专业组织来提升公益活动的效率和独立性,百事公司利用自己擅长的水处理能力帮助水资源匮乏的西北地区,这些企业在为社会、为环境创造价值的同时,自身也在实践着一种超越支票本式慈善的履责主义。     

Conceptualization and Measurement of Virtuous Leadership: Doing Well by Doing Good

Despite a long history in eastern and western culture of defining leadership in terms of virtues and character, their significance for guiding leader behavior has largely been confined to the ethics literature. As such, agreement concerning the defining elements of virtuous leadership and their measurement is lacking. Drawing on both Confucian and Aristotelian concepts, we define virtuous leadership and distinguish it conceptually from several related perspectives, including virtues-based leadership in the Positive organizational behavior literature, and from ethical and value-laden (spiritual, servant, charismatic, transformational, and authentic) leadership. Then, two empirical studies are presented that develop and validate the Virtuous Leadership Questionnaire (VLQ), an 18-item behaviorally based assessment of the construct. Among other findings, we show that the VLQ accounts for variance in several outcome variables, even after self-assessed leader virtue and subordinate-rated social and personalized leader charisma are controlled.     

多业并举求发展

新接订单持续低迷，船东延期、改单、撤单现象日益严重。船厂需要付出比以往更多的努力，绞尽脑汁，想方设法与船东沟通，才能保住手中的订单，同时还要着手拓展新的业务，为未来的发展奠定基础。生存是发展的前提，在当前金融危机蔓延的形势下，多元化发展应对金融危机已成为目前许多船厂的共识。     

Strategic Implications of Learning by Doing

This paper examines firm strategy when competitors are at different points along the learning curve. It shows that firms high on the learning curve will have strong incentives to exclude new competitors, while firms that are learning more slowly will have weaker incentives to hinder new competitors and may even wish to encourage entry. The same strategies are shown to apply when firm reputation is acquired through participation in an industry. Several examples of strategic behaviour that take advantage of differential learning speeds or heterogeneous reputations are suggested and a variety of applications of the principle involved are explored.     

Doing by learning: Embedded application systems

We argue that the computerized information system should not look like a system on its own. Rather, it should be conceived as an inherent part of the work of its users. We therefore introduce the concept of an embedded system, which describes work tasks and organization. Computer‐supported information tasks are embedded in this environment: They are not parts of a system separated from other activities. This concept is based on the experiences gained during the development of a user‐interface prototype, derived from a theoretical frame of reference, called act orientation, to information systems, in which all computerized tasks are interpreted as acts performed by the actual user. Our suggestion continues the tradition of on‐line help and support, reaching radically deeper than usual in related approaches. We expect that our suggestion will, when applied, improve the control, productivity, quality of the outcome of work, and quality of working life, assessed from the user's point of view.     

Interorganizational Favour Exchange and the Relationship Between Doing Well and Doing Good

This article examines whether ethical business practice enhances financial performance with respect to interorganizational favour exchange. We argue that the link between the ethicality and economic utility of interorganizational favour exchange is governed by: (1) organizational–individual interest alignment/conflict and (2) the fairness or justifiability of favour exchanges from the perspective of third parties. We classify interorganizational (IO) favour exchange into four types (Business–Personal, Personal–Business, Personal–Personal and Business–Business favour exchange). Our analysis shows that the first three types of favour exchange are unethical as they involve conflicts between organizational and individual interests in one or both participating organizations that negatively affect organizational value creation. The last type of favour exchange involves organizational–individual interest alignment in both participating organizations and positively affects the capacity of those involved in the exchange to create value. Favour exchanges of this fourth variety are ethically justifiable unless they unfairly damage the legitimate interests of third parties. In the latter case, these favour exchanges create the risk of negative third party reactions, which in turn affect the sustainability of the benefits of the favour exchanges to the focal group (the dyad). Our research results advance understanding of the ethical and economic implications of IO favour exchange, counter the prejudice against this behaviour in organizations, provide ethical guidance for management and business practice, and have implications for the relationship between doing well and doing good.     

The “Invisible Hands” in Research: The Critical Roles of Reviewers and Associate Editors

In this Editorial, we underscore the critical roles fulfilled by reviewers and associate editors (AEs) in the provision of the journal's review process. The so‐called “invisible hands” of reviewers and AEs not only influence the editorial outcomes of individual works, but, more substantially, the author experience with and research impact of the journal. To that end, we offer observations and guidelines for reviewers and AEs, reinforcing the expectations we maintain for those helping to shape the work that ultimately appears in the journal.     

Distribution and Market Share

This paper presents findings from a census of more than 79,000 stock-keeping units (SKUs) in 37 consumer packaged goods categories totaling $55 billion in annual revenue. It shows that, in 86 percent of product categories, the relationship between market share and retail distribution is increasing and convex at the SKU level. The degree of convexity is greater in categories with higher revenues and more concentration in market shares. The relationship is also typically convex within leading brands’ SKU portfolios, showing that the “double jeopardy” phenomenon of low share and distribution not only affects small brands competing against market leaders, it also affects low-share SKUs within a category leader's product line. Holdout evidence shows that the distribution/share relationship within a brand's portfolio of existing SKUs usually holds for new SKUs as well. We explain how knowledge of the distribution/share relationship can help to improve a brand's go-to-market decisions for new SKUs.     

Doing Good by Doing Bad: How Tone at the Top and Tone at the Bottom Impact Performance-Improving Noncompliant Behavior

Journal of Business Ethics - This study investigates how tone at the top, implemented by top management, and tone at the bottom, in an employee’s immediate work environment, determine...     

Corporate social responsibility: Doing well by doing good

Saving the rain forest from yet another palm oil plantation would certainly garner a company favorable attention from environmentalists, but how would its shareholders react? In this article, we show that by strategically practicing corporate social responsibility (CSR), a company can ‘do well by doing good’; in other words, it can make a profit and make the world a better place at the same time. CSR is regarded as voluntary corporate commitment to exceed the explicit and implicit obligations imposed on a company by society's expectations of conventional corporate behavior. Hence, CSR is a way of promoting social trends in order to enhance society's basic order, which we define as consisting of obligations that cover both the legal framework and social conventions. Due to globalization, companies are now less constrained by society's basic order than they have been in the past. Because different countries have different laws and standards, there are more ways to get away with less than ideal behavior in the quest for greater and greater profits. Nearly everyone agrees that this is not a good thing, but what can be done? Via this article, we offer an understanding of CSR that could be the answer. Herein, we contend that practicing CSR is not altruistic do-gooding, but rather a way for both companies and society to prosper. This is especially true when CSR is conceived of as a long-range plan of action.