Endogeneity and the relationship between board structure and firm performance: a simultaneous equation analysis for the Athens Stock Exchange

The main goal of this paper is to examine the relationship between the three most important characteristics of the board of directors with firm performance. More specifically, we investigate whether the independence of the board, the leadership structure and the board size, are exogenous determinants to the firm's performance, using a simultaneous equations framework. Our database is composed of firms quoted in the ASE, starting from 146 observations in 2000 and ending with 232 firms in 2006. The findings suggest that the board independence and the leadership structure do not affect the firm performance. On the other hand, an inverse relationship between board size and firm performance is observed. Copyright © 2010 John Wiley & Sons, Ltd.     

Supply management in American public administration: Towards an academic discipline?

This article examines the development of supply management in the U.S. to assess its progress towards academic disciplinary status. A comparison of the fields of business administration and public administration indicates that supply management is more developed in the former than in the latter, which inhibits its disciplinary status. Various reasons for this uneven development in the two fields are explored. The paper argues that a paradigm shift must occur for public supply management, which will re-orient it around the concept of the public interest. This will require public supply professionals to participate strategically in public policy-making in order to ascertain and promote the public interest. A policy framework is used to illustrate this re-orientation and to suggest directions for further research.     

Undesirable competition

We show that the entry of private profit-maximising firms makes the consumers worse off compared to having a nationalised monopoly. Such entry increases the nationalised firm’s profit, industry profit, and social welfare, at the expense of the consumers. Our result is important for competition policy.     

DO PARENTAL INVOLVEMENT LAWS REDUCE ADOLESCENT ABORTION RATES?

This study assesses the impact of parental involvement laws on adolescent abortion rates and pregnancy rates. The analysis estimates abortion rate and pregnancy rate models using state-level data pooled over time for adolescents aged 15–17 compared to older teens aged 18–19 and adults aged 20–44. The results indicate that parental involvement laws reduce adolescent abortion rates and may, to a lessor degree, reduce adolescent pregnancy rates. Thus, the findings imply that enforcement of parental involvement laws will increase adolescent fertility rates.     

A new method for measuring congestion in data envelopment analysis

In data envelopment analysis (DEA), there are two principal methods for identifying and measuring congestion: Those of Färe et al. [Färe R, Grosskopf S. When can slacks be used to identify congestion. An answer to W. W. Cooper, L. Seiford, J. Zhu. Socio-Economic Planning Sciences 2001;35:1–10] and Cooper et al. [Cooper WW, Deng H, Huang ZM, Li SX. A one-model approach to congestion in data envelopment analysis. Socio-Economic Planning Sciences 2002;36:231–8]. In the present paper, we focus on the latter work in proposing a new method that requires considerably less computation. Then, by proving a selected theorem, we show that our proposed methodology is indeed equivalent to that of Cooper et al.     

Motivation in the teaching of Physical Education according to the Achievement Goal Theory: methodological considerations

The present study shows how the evaluation of sport motivation according to Achievement Goal Theory is different if the criteria used are predominant goal orientation or motivational profile combination, as well as presenting its relationship with other variables such as the amount of sport practise or the level of competition and success achieved. Seventy two men and women participated, all students of Physical Educational and Sport Science, completing the Questionnaire on Motivational Orientation in Sport ((Guivernau and Duda, Revista de Psicología del Deporte, 5, 1994) a Spanish adaptation of the Task and Ego Orientation in Sport Questionnaire, TEOSQ, (Duda, J Sport Exerc Psychol, 11, 1989)). The results showed the existence of different motivational relationships with variables of the practise of sport, depending on the type of profile used. Finally, the practical implications of these findings are discussed with respect to the motivational climate generated in the teaching of Physical Education.     

Compatibility and unlearning in knowledge transfer in mergers and acquisitions

Despite wide recognition of the central role of knowledge and its transfer, extant research has focused much on some important aspects of knowledge transfer and paid little attention to others. We focus on two underexplored issues in the knowledge transfer literature, namely: (a) compatibility of new knowledge with recipients’ needs, interpretations of its past experiences and its existing norms, and (b) organizational unlearning, which moderates the relationship between compatibility and extent of successful knowledge transfer. We examine different types and dimensions of knowledge compatibility and organizational unlearning within our proposed knowledge transfer process framework. We situate our discussion primarily within knowledge transfer in cross-border mergers and acquisitions. Based on the proposed model, we also offer propositions future research can test.     

CEO compensation and the seasoned equity offering decision

Empirical research on seasoned equity offerings indicates that the decision to make an SEO typically engenders a decline in firm value, as investors interpret this decision as a signal of poor financial health or that the stock is overpriced. Here, we add to the literature by analyzing the short‐term market reaction to SEO announcements and the chief executive officer's link to firm performance (i.e. the proportion of CEO equity‐based compensation). Results support the hypothesis that investors are more likely to view the announcement of an SEO as a last resort source of capital when the proportion of CEO equity‐based compensation is high. In such cases of high equity‐based compensation, our findings indicate that the SEO announcement provides an incremental signal of financial distress above that provided by financial statements. We also find this relationship (last resort signal) to be stronger when large information asymmetries exist between management and investors. Thus, managers should consider the ramifications of executive compensation structure when considering whether to make an SEO. Copyright © 2006 John Wiley & Sons, Ltd.     

Social Capital and Social Influence on the Board of Directors

It is often assumed that directors with human capital such as prior management experience or independence from the company are the most influential board members. By contrast, in a survey of all the board members in 14 companies we found that ties to others in a network of strong ties among those who meet outside of board meetings were more important predictors of social influence than human capital or ties across boards. These ties within the board represent the social capital of members in the form of prior relationships with other directors, ties to others on the board, and membership in cliques within the board's network of ties. These results support a social capital perspective on influence that emphasizes relationships with others on the board as important factors in the social dynamics of board decision-making.