Mises’ democracy–dictatorship equivalence theorem: A critique

Ludwig von Mises argues that public opinion, not the form of government, is the ultimate determinant of policy. The implication is that, holding public opinion constant, democracies and dictatorships will have the same policies—a result I call Mises’ Democracy–Dictatorship Equivalence Theorem. According to Mises, dictators have to comply with public opinion or else they will be overthrown. I argue that he seriously overestimates the power of revolution to discipline dictators. Mises was perceptive to note that, in practice, “dictatorially imposed” policies are often democratically sustainable, but he neglected several mechanisms—all more plausible than the threat of revolution—capable of explaining this fact.

Prudential Application of IFRS 9: (Un)Fair Reporting in COVID‐19 Crisis for Banks Worldwide?!

IFRS 9 and ASC 326 were developed after the 2008–2009 financial crisis, and both accounting standards include an expected loss model as a means of providing for credit losses. As a result of the COVID‐19 worldwide pandemic, however, banks face considerable uncertainty about the potential scale of the bad debts for which they will need to provide. Banks need to reassess their loan assets, by updating their risk models with expectations about potential default rates and future macro‐economic and financial developments. However, we see several interventions worldwide. The European Securities and Markets Authority addresses a position paper on the prudential application of IFRS 9. The Coronavirus Aid, Relief, and Economic Security Act in the US has given banks an optional deferral of implementation of the CECL model until 31 December 2020. This paper addresses the challenges banks face when applying the expected losses model during the current crisis. More importantly, it discusses the impact of supervisor and regulators’ intervention on future financial reporting comparability, transparency and whether there is a level playing field.     

Pattern of information technology use and relationship learning in international customer-supplier relationships

While information technology (IT) has been widely applied in global supply chain relationships, academic research in this area is still limited. Drawing on resource-based view (RBV) and interpartner learning theory, we investigate how different pattern of IT use (IT exploitation and IT exploration) influences relationship learning and performance in international customer-supplier relationships. Further, we look into two contingent conditions including technological uncertainty and cultural distance in the proposed model. Based on 240 Taiwanese-based electronics suppliers, this empirical study reveals that only exploration side of IT use was significant on relationship learning and finds significant positive relationship between relationship learning and relationship performance. Moreover, the effect of IT exploration on relationship learning was positively moderated by technological uncertainty but negatively moderated by cultural distance. However, the effect of IT exploitation on relationship learning was negatively moderated by technological uncertainty but positively moderated by cultural distance.     

Organizing for new product development speed and the implications for organizational stress

This study examines the effects of bureaucratic structure and organizational control on new product development (NPD) speed. It also examines the effects of NPD speed on organizational stress. The empirical findings from 130 US manufacturing companies can be summarized as follows. Formalized structures and centralized structures have a negative impact on invention speed. Formal controls have a positive impact on innovation speed. Informal controls have a positive impact on both invention speed and innovation speed. Invention speed has a positive impact on organizational stress and innovation speed has a negative impact on organizational stress.     

Risk Management,Real Options,Corporate Social Responsibility

The relationship of corporate social responsibility to risk management has been treated sporadically in the business society literature. Using real options theory, I develop the notion of corporate social responsibility as a real option its implications for risk management. Real options theory allows for a strategic view of corporate social responsibility. Specifically, real options theory suggests that corporate social responsibility should be negatively related to the firm’s ex ante downside business risk.     

THE TREATMENT OF INTEREST AND FINANCIAL INTERMEDIARIES IN THE NATIONAL ACCOUNTS OF AUSTRALIA

This paper is divided into two main sections. The first part summarises briefly the main points which have arisen in the lengthy debate over the treatment of banking intermediaries in the national accounts. The discussion emphasises the method adopted in the early Australian accounts when banks were treated in the same way as the general government. It is argued that this method is simpler and provides a more realistic account of the functions of banks than the current SNA proposal.
The second part of the paper examines the functions of banks in Australia. It uses data of interest and administration cost for separate banking institutions to examine the incidence of bank costs. It is concluded that the costs do not fall on borrowers or lenders but are a charge in providing a communal service in the establishment and maintenance of the financial system.     

The effect of auditors’ internal control opinions on loan decisions

We examine the effect of internal control reports on lending officers’ assessments of a company’s creditworthiness. We suggest that an adverse internal control opinion can undermine the assurance provided by an unqualified opinion on financial statements taken as a whole and have a negative affect on lenders’ assessments. In addition, we investigate whether auditor size plays a role in determining the effect on lenders’ judgments.     

北卡罗来纳大学商学院 企业家的社会资本战略导向和组织绩效

许多研究表明一个企业的管理业绩和这个公司的高管与其他公司高管之间的交流的密切程度有正相关关系，但是社会资本是如何形成一个企业的核心竞争优势的呢？