Gearing up,crashing loud. Should we punish high-flyers for insolvency?

In the mid-1990s the recession is turning to a recovery. Around the world corporate bodies which fell victim to structural changes and high interest rates finally get buried. However, many feel that corporate funerals are not enough to clear away the litter of the past, crucifying people is required too.In the common law countries, where the treatment of bankrupts is tougher than in the U.S., and in continental Europe, where discharge of debts has been virtually unheard of until recently, the failed entrepreneurs' heads are wanted on the platter. A high level of debt and an extravagant lifestyle combine to provoke most demands for reprisals.This paper argues that these hallmarks of highflying provide neither retributive nor utilitarian grounds for punishing business bankrupts by limiting their access to discharge. Furthermore, it is argued that, from the point of view of distributive justice, wealth appropriated through leverage is ethically no worse than prosperity gained by hard work and parsimony — not even if the gearing eventually leads to insolvency.Jukka Kilpi is an Affiliate Member of The Securities Institute of Australia and pursues doctoral studies in business ethics. He has extensive experience in public administration and as an equities broker of a major bank.     

Integrating qualitative and quantitative methods in research on international entrepreneurship

Using mixed methods is an often proposed but rarely used research design. In this paper, I describe a mixed method approach to research on international entrepreneurship. Using a mixed methods design with a case study and a mail survey, I show how the two methods make it possible to reach a better understanding of the antecedents of organizational memory and how organizational memory affects perceived costs of further international expansion of Swedish small and medium-sized enterprises (SMEs). I also propose research designs for studying both novel phenomena and for developing established theory through a combination of case studies and structural equation modeling.     

Allhoff on Business Bluffing

The moral status of business bluffing is a controversial issue. On the one hand, bluffing would seem to be relevantly similar to lying and deception. Because of this, business bluffing can be taken to be an activity that is at least prima facie morally condemnable. On the other hand, it has often been claimed that in business bluffing is part of the game and that therefore there is nothing morally questionable in business bluffing. In a recent issue of this journal, Fritz Allhoff puts forward a novel defence of business bluffing. In this article, I will examine Allhoff’s arguments for the moral acceptability of business bluffing and argue that they are implausible. Dr. Jukka Varelius is a Visiting Fellow in the Centre for Professional Ethics at the University of Central Lancashire, UK. His research concentrates on questions of biomedical ethics, psychiatric ethics, and business ethics. His publications include ‘Voluntary euthanasia, physician-assisted suicide and the goals of medicine’ Journal of Medicine and Philosophy 2006, 31 (2): 1--18, ‘Execution by lethal injection, euthanasia, organ-donation and the proper goals of medicine’ Bioethics, forthcoming, and ‘Autonomy, well-being and the case of the refusing patient’ Medicine, Health Care and Philosophy, forthcoming.     

Varying biases in matching estimates: Evidence from two randomised job search training experiments

We compare various matching estimators with the results from two randomised field experiments that evaluate the employment effects of job search training programmes. We find that commonly used non-experimental matching estimators tend to overestimate the programme effects, especially in the first experiment in which participation in the programme is voluntary. In the second experiment, where caseworkers assign unemployed persons to the training programme, the matching methods produce estimates that are close to the experimental results.     

Enabling relationship structures and relationship performance improvement: The moderating role of relational capital

Based on data from 248 asymmetric subcontractor–customer relationships in Finland, this study analyzes the direct impact of relationship structures, relational capital, and the subcontractor's relationship-specific investments on the improvement of operational relationship performance. In addition, the study investigates the moderating role of relational capital on the links between relationship structures, relationship-specific investments, and relationship performance improvement. We found that both relational capital and relationship-specific investments directly affect the relationship performance improvement, while relationship structures do not. However, relational capital positively moderates the link between relationship structures and relationship performance improvement by creating enabling structures. Thus, our findings contribute to the existing literature and discussion on enabling organizational and relationship structures by demonstrating how relational capital changes the role and impact of relationship structures.