The effect of financial constraints,investment policy,product market competition and corporate governance on the value of cash holdings

This study empirically investigates the value shareholders place on excess cash holdings and how shareholders’ valuation of cash holdings is associated with financial constraints, firm growth, cash‐flow uncertainty and product market competition for Australian firms from 1990 to 2007. Our results indicate that the marginal value of cash holdings to shareholders declines with larger cash holdings and higher leverage. However, firms that are more financially constrained, that have higher growth rates and that face greater uncertainty exhibit a higher marginal value of cash holdings. These findings are consistent with the explanation that excess cash holdings are not necessarily detrimental to firm value. Firms with costly external financing and that also save more cash for current operating and future investing needs find that the market values these cash hoarding policies favourably. Finally, there is limited evidence of an association between various corporate governance measures and the value of cash holdings for a shorter sample period.     

"The Biggest Small-Town Store in America": Independent Retailers and the Rise of Consumer Culture

The case study of Bresee's Department Store in Oneonta, NewYork, suggests that small-town department stores were not necessarilyfully "modern" by the early twentieth century. This articledemonstrates how modern, big-store, business methods came laterand documents how earlier modes of trade, such as credit andbartering, persisted into the early twentieth century, evenin non-rural, northern contexts. Preliminary findings suggestthat eliminating the urban bias in much historiography by includingsmall-town retailing practices may lead to a later periodizationof American consumer society.     

Diffusion of an Accounting Innovation: Fixed Asset Accounting in the NHS in Wales

As part of ‘New Public Management’ in the UK, changes have been made to the accounting regime. These changes typically involve the adoption of private sector accounting and budgeting approaches using accruals accounting. The process by which new ideas are spread is known as diffusion; this paper deals with the aspect of diffusion relating to the imposition of a new idea, accruals accounting, and how it is absorbed by the organisation, in this case the NHS in Wales. In particular, the paper questions whether the lack of secondary diffusion is limiting the influence of the new accounting approach. To analyse the level of diffusion we have focused on one aspect, namely, information on capital assets. The paper uses a mixture of qualitative and quantitative research methods including in-depth interviews with senior managers at two NHS Trusts and a questionnaire survey with responses from senior finance staff in all NHS Trusts in Wales. We conclude that the diffusion of accruals accounting for fixed assets has been restricted to the primary level at the top layer of management and has not penetrated below that level. There is evidence of continuing managerial indifference to the accruals accounting consequences of owning fixed assets.     

Vested interests: how American and Chinese venture capitalists view essential management skills

This paper used semi-structured interviews with 11 highly successful venture capitalists from both the United States and China to examine perceptions of the essential nature of management skills for successful technology-based small-to-medium sized venture exits. Findings suggest American VCs appear to maintain a more global management perspective, whereas Chinese VCs appear to maintain a perspective that is more China-centric, or market specific, in nature. This divergence in perceptions of essential managerial skills offers an opportunity for the convergence of understanding of universal best practices. Implications for theory and research are discussed. Such an understanding may provide critical implications for successful exits from cross border ventures.     

An Exploratory Study of the Propensity for South Koreans to take Cruises: Investigating Koreans' Perceptions of Cruise Ship Travel

The purpose of the present study was to examine Koreans' perceptions of cruise ship travel to ascertain the potential for future development of that tourism segment. An understanding of Koreans' perceptions is essential for determining the potential of the Korean cruise market. Using survey data, the study investigated Koreans' knowledge level, willingness and desired travel patterns regarding cruise ship travel. Findings from the study can assist practitioners to enhance their comprehension of Koreans' perceptions and behaviors concerning cruise ship travel. Copyright © 2011 John Wiley & Sons, Ltd.     

Experience-based learning in innovation and production

How can we model and document the impact of experience in product innovation? We use data on the innovation and production histories of 294 product platforms to explore experience‐based learning. We extend learning curve concepts from their traditional domain – the production process – into the product innovation process to build and test a richer, quantitative model of learning. The results suggest that learning occurs differently in the innovation process than in production. They also suggest that how and where a firm learns depend in part on the complexity of product components and sub‐systems. Finally, we discuss the competitive implications for product innovation.     

Advances in Drama Theory for Managing Global Hazards and Disasters. Part II: Coping with Global Climate Change and Environmental Catastrophe

We explore issues of group decision making for reducing global environmental risk, with particular reference to the political dynamics surrounding international agreements on tackling climate change. Continuing political delays in deciding to reduce greenhouse gas emissions may make it necessary to resort to high risk and controversial geo-engineering solutions, such as injecting large amounts of sulfur dioxide into the stratosphere, despite the unforeseen, potentially catastrophic consequences that these entail. Advances in drama theory (dt.2) are used to analyze the prospects for agreement on reducing or stabilizing greenhouse gas emissions, following the Bali agreement of December 2007. It is concluded that Western nations and emerging economies are behaving like players in a game of “chicken”, each expecting the other to take on the main burden of emissions reduction. We judge it unlikely that either will play a full part until it is too late for emissions reduction alone to avert environmental catastrophe. At that point, parties will resort to geo-engineering “fixes”, despite the risks. However, all such forecasts are conditional on decisions made and attitudes taken by political leaders and the public. Our analysis serves to pinpoint the relevant decisions and attitudes.