Variations in ownership behavior and propensity to diversify: a study of the Indian corporate context

The relationship between ownership and diversification has been the focus of renewed debate between financial economists and strategic management scholars. While financial economists hold that manager‐controlled firms tend to reflect higher levels of diversification, strategy researchers argue that ownership and diversification are not systematically related. In throwing light on this debate, this study uses a fine‐grained definition of ownership groups to explore how the different objectives and monitoring predispositions of distinct ownership groups might influence diversification strategy. The empirical examination is set in India to offer a striking contrast from the predominantly U.S.‐based studies that have shaped the ongoing debate. Findings show that diverse ownership groups adopt different postures in monitoring and/or influencing organizational diversification. While some ownership groups are closely associated with focused strategies, and some encourage diversification, others are quite indifferent. These results suggest that the context‐specific variation among ownership groups is germane to our understanding of diversification strategy. Copyright © 2002 John Wiley & Sons, Ltd.     

The celler kefauver act and the deterrent effect

The purpose of this paper is to identify the major determinants of innovation and to examine whether they affect small firms differently than large firms. Using a cross-section of 247 four-digit SIC industries, we present an econometric analysis testing the hypothesis that innovation rates in 1982 were significantly influenced by market structure, and that these influences had disperate effects among large and small firms. We find that, while market structure does explain the variation in innovation rates across industries, the relationships are not always consistent with certain previously maintained hypotheses. Similarly, we find that innovation activity for large firms responds to a different market activity than does innovation for small firms.     

The three faces of corporate renewal: Institution,revolution, and evolution

We examine corporate renewal by taking a structural approach and focusing on the routines and rules that are part of large, established, bureaucratic organizations. We characterize approaches to the management of innovation in terms of three different themes–institutional, revolutional, and evolutional strategies. The first two approaches involve intentional efforts to encourage innovation, either within the current organizational paradigm (institutionalizing innovation) or moving away from it (revolutionary innovation), while the evolutional approach involves less conscious efforts to manage what is viewed as a random, probabilistic process. This paper uses simulation methodology to explore the effectiveness of these strategies on organizational innovation, performance, and resources. The behavior of the simulated organizational units is guided by assumptions of a learning model. Results indicate that innovation strategies sometimes have unintended effects that are both positive and negative in nature. Several lessons on managing innovation are offered.     

The Cash Recovery Method of Calculating Profitability: An Application to Pharmaceutical Firms

The problems with commonly used accounting profit rates are well documented. In this paper an alternative to accounting profit rates, the cash recovery method is investigated and improved. This improved method is used as a means to estimate profitability in the pharmaceutical industry on a firm level. The profitability estimates give a similar rank order to the accounting profitability rates, but have different magnitudes.     

Profitability,concentration and trade flows: Issues of non-linearity and exogeneity

This paper deals with the econometric estimation of a traditional profitability model employing cross-section data for 110 4-digit Canadian manufacturing industries for the period 1972–1976. A series of estimations and statistical tests suggest that the relationship between industry price—cost margins and the Herfindahl index of concentration is non-linear, non-monotonic but exhibits an everal upward trend across concentration classes. Empirical evidence regarding the disciplinary effect of imports does not support the import competition hypothesis.     

The price of corporate professionalisation: analysing the corporate capture of professions in the UK

Recent debates on the organisation of expert labour focus upon either the growing dominance of managerialism over traditional professions or the unwillingness/inability of new expert occupations to professionalise. Such arguments frequently disregard expert occupations that continue to deliberately pursue professionalisation to improve their status and influence in organisations and wider society, and therefore overlook the consequences of contemporary professionalisation for expert labour. Here we critically examine one ‘corporate profession’, project management in the UK, which has pursued ‘corporate professionalisation’ by renegotiating relationships with the state, individual members and private corporations, with some degree of success. Combining documentary analysis and interviews with professional association officials and practising project managers, this article analyses the pressures behind the corporate professionalisation strategies of this expert occupation, assessing the impact of moves towards a new model of corporate professionalism that marginalises the interests of professionals while embracing employer agendas.     

Sales force reactions to corporate social responsibility: Attributions, outcomes, and the mediating role of organizational trust

Corporate social responsibility (CSR) is gaining momentum among researchers and practitioners. In spite of this extensive interest, systematic research regarding the effects of CSR on other stakeholder groups, besides consumers, remains sparse. Based on a field study in a global Fortune 500 consumer packaged goods company, we examine sales force attitudinal and behavioral outcomes of company's partnership with a United Nations (UN) philanthropic organization. Specifically, we seek to examine whether sales force perceptions of CSR motives influence their evaluation of CSR actions. Findings indicate that egoistic-driven motives negatively influence salesperson trust in the company, whereas stakeholder- and values-driven motives positively influence salesperson trust; however, strategic-driven attributions do not have an influence on salesperson trust. The results further reveal the mediating role of trust in the relationship between sales force attributions and outcomes including loyalty intentions and positive word-of-mouth.     

Strategy and the environment: A study of corporate responses to crises

This paper describes an empirical study that examines the relationship between the type of external environment in which a firm operates and the repertoire of strategic responses the firm develops to cope with crises. The findings suggest that an executive's propensity to adopt a particular strategic posture depends on his perceptions of how well his firm can control its environment and on the costs of introducing change into the organization.     

Profitability and market share: A reflection on the functional relationship

The paper analyzes the functional relationship between profitability and market share for type of businesses in the PIMS data base. Although a linear relationship has been imposed in other studies, our result shows that empirically it seems a poor representation of the data. In addition, three observations seem to be most evident. First, small-share businesses were not per se less successful than larger business units. In the service market and the market for raw or semi-finished materials small-share businesses were just as profitable or even more profitable than larger business units. Second, some businesses were ‘stuck in the middle’, which was most evident in the service market but also in the retail and wholesale markets. Third, very large-share businesses were often less profitable. A critical market share was identified as between 65 and 70 percent. Beyond that level the ROI decreased.     

Privatization,corporate control and regulatory reform: the case of Telefonica

This study analyzes the interaction of agency problems in public policy and of agency problems inside the firm: it investigates the case of a large privatized firm subject to many policy constraints. The last steps of Telefonica's privatization were designed to promote a dispersed ownership and give managers a high level of discretion in running the company. This effectively created an agency problem inside the firm. There were no powerful shareholders to constrain the managers, and the threat of a takeover was not a credible one, since the government kept a golden share. There is no overall evidence of capture of politicians and regulators by managers in the interest of shareholders, although evidence suggests the existence of collusion between politicians and managers. The authors interpret the political interference with the firm's control (a well-documented phenomenon both in this study and in the cross-country literature on privatization; e.g. political ends in privatization, influence in appointments, golden shares) as the most visible part of such collusion. Liberalization and multi-level regulation will likely make any type of collusion or capture more difficult in the future.     

行业的进入壁垒和盈利水平分析——以互联网银行业为例

伴随着互联网技术的快速发展,互联网金融应运而生,随之兴起的还有互联网银行业。因此,本文以互联网银行业为例并对其行业进入壁垒和盈利水平进行分析,一方面,选题具有新颖性;另一方面,分析内容对目前较为稀缺的互联网银行业的研究和探索也有一定的补充意义。     

Failed takeover attempts,corporate governance and refocusing

Hostile takeover attempts oftentimes signal that a target firm has an over‐diversified and ineffective corporate strategy. What does this signal mean when takeover attempts fail? Drawing from agency theory, we argue that target firms managed by independent directory boards are likely to ignore the takeover attempt and not refocus their firms' strategy. Conversely, target firms managed by nonindependent boards are more likely to view the failed takeover attempt as a ‘wake‐up call’ and will refocus their firms' strategy so as to preserve the firm's survival. These arguments are tested using a sample of 76 firms that were targets of failed hostile takeover attempts. Logistic regression analyses confirm the predictions. This study suggests that in the aftermath of a failed takeover attempt board of director characteristics can help predict changes in corporate strategies. Copyright © 2002 John Wiley & Sons, Ltd.     

欧盟玩具安全指令:指画颜料的要求和测试方法

为符合新玩具安全指令2009/48/EC,欧盟2012年10月30日公布了EN71-7:2012草案标准。英国标准协会收集意见的截止日期是2013年2月11日。该标准中要求是为了在儿童正常和可预知的合理情况下使用指画颜料,以减少对其儿童的风险。主要变化:苯胺被添加入禁用初级芳香胺列表中。     

Management of development projects: how to meet corporate business goals?

Two contradictory elements affect development projects in the modern era. New advanced development projects require huge resources and long schedules. On the other hand, the resources available for development projects are decreasing, and intensive competition between companies results in increased required performance and new products which must be developed with short schedules. Development projects have a significant effect on a company's business goals, and therefore attract the attention of corporate managers. A significant part of managers' time is devoted to the control of development projects. Support tools are therefore developed and used to assist managers in controlling their projects. This paper describes a control tool to help managers make decisions on development projects. The tool described is based on Microsoft's 'Project' software package, and was developed in-house. The package performs real-time calculations and simultaneously presents several control parameters. These parameters provide a comprehensive picture of project status. The major benefits of the control tools described are: (1) The 'Project' package provides the ability to work with small and combined work packages. It allows attention to be focused on small programs as well as on entire programs. (2) It complies fully with modern decentralised computer systems consisting of a central computer, local computerised networks, parallel PCs and work stations. It provides an interactive quick response ability to follow changes in project status, which result from design changes or progress updates. The control system was implemented by RAFAEL's Missiles Division two years ago, and impressive results in terms of project efficiency were achieved. These achievements play a major role in meeting the Division's business goals. The control tools described are general and can fit a large variety of projects and companies.     

The relative power of ceos and boards of directors: Associations with corporate performance

A typology of the relative powers of the chief executive officer and the board of directors was derived based on the literature, highlighting four situations: Caretaker, Statutory, Proactive and Participative boards. Data collected from Fortune 500 Industrial and Fortune 500 Service corporations supported the typology. The results showed significant differences among the four board types in their characteristics, internal process, decision-making styles, board effectiveness, and contribution to company performance. Powerful boards were associated with superior corporate financial performance.     

External control,corporate strategy,and firm performance in research-intensive industries

This paper explores the proposition that the divergence of interest between managers and stockholders has implications for corporate strategy and firm profitability. Stockholders prefer strategies which maximize their wealth. Managers prefer strategies which maximize their utility. It is theorized that in research-intensive industries, when stockholders dominate, innovation strategies are favored. When managers dominate, diversification strategies are favored. In addition, innovation is argued to be associated with greater firm profitability than diversification. This theory is tested on 94 Fortune 500 firms drawn from research-intensive industries. The results largely confirm theoretical expectations.     

政府管制、公司治理与电力改革

尽管电力改革取得了阶段性成果,但电力产业许多深层次的问题还没有解决。笔者认为:各种问题的解决有赖于制度创新,放松管制与公司治理需要同步推进,公司治理是政府管制的第一步。期望本文能为中国电力改革提供一个有益的视角。     

Executive perks: Compensation and corporate performance in China

Many studies have examined CEO compensation in developed countries, where a long tradition of disclosure renders data readily available. In emerging economies, particularly in China, where market-based compensation is a relatively new phenomenon, there are few studies of CEO compensation. In addition, information on the use of non-cash compensation is almost absent. Building on the general literature on CEO compensation, and Chinese economic and management studies, this article singularly contributes to the extant literature by (1) examining the motivational determinants of CEO perk compensation, on the one hand, and (2) exploring the relative contribution of perks to performance. We anticipate that perks can serve two roles in China: (1) to provide incentives to deter managerial shirking, and (2) to facilitate work and improve production. We find that perks are positively associated with current and future returns on assets, supporting the view that some types of perks may improve firm profitability and/or that perks are paid as a bonus to reward performance. Our findings from stratified samples suggest that perks may incentivize managers, even after controlling for firm fundamentals, such as firm size, growth opportunity, and leverage.