National Culture and Takeover Contest Outcomes

We examine the effects of cultural differences on the outcome of takeover contests. Our main focus is on individuality, which we posit to have an effect on firm behavior in international takeover contests. In a sample of international acquisitions with bidders from multiple countries, we find that individuality positively relates to the probability of placing the winning bid. We further find that takeover contest winners with high individuality scores experience lower announcement returns. Our results are consistent with the literature that links individuality to overconfidence. Our evidence suggests that firms should control culture‐related behavioral biases in their mergers and acquisitions activity.     

When sunspots don't matter

Summary We show that a finite, competitive economy isimmune to sunspots if (i) preferences are strictly convex, (ii) the set of feasible allocations is convex, and (iii) the contingent-claims market is perfect. The conditions (i)–(ii) cover some, but not all, economies with nonconvex technologies. Based on an indivisible-good example, we show that even economies with strictly convex preferences and full insurance arenot in general immune from sunspots. We also show that (1) the sufficient conditions (i)–(iii) are not necessary for sunspot immunity and (2)ex-ante efficiency is not necessary for immunity from sunspots.This paper is based on an earlier paper, Indivisibilities in Production, and Sunspot Equilibrium, presented at the 1990 S.E.D.C. Meetings, Minneapolis-St. Paul, June 1990. The research support of NSF Grant SES-9012780, the Center for Analytic Economics, and the Thorne Fund is gratefully acknowledged.     

Rural migration and regional development

"Regional disequilibria in the distribution of population lead in many developing countries to migration flows which cannot always be equated with flight from the land or drift to the cities. In diverse countries rural-rural migration is even supported by the state. This rural migration leaves a decisive mark not only on the regional development of the areas from which emigration takes place but also on the absorbing areas. The following article examines the costs and benefits for both [using the example of Indonesia]."     

Business regulation,business ethics and the professional employee

The differences in business reactions to legal regulation, and the nature of business moralities, are examined through the eyes of an expert group — in-house lawyers. The research indicates that lawyers inevitably provide a degree of control through their technical expertise, but that they also identify strongly with their companies and emphasise shared ethics rather than ethical differences between lawyers and their employers. This can partly be explained by their integration with the company but also rests on the problematic nature of law and regulatory controls in relation to organisations within the community. In-house lawyers therefore reject a policing role in favour of a counselling role. Since they perceive themselves as part of a shared culture of ethics, they also avoid a leadership role. However, the article suggests that the nature of legal judgment should assist lawyers towards such a role, while recognising that organisational statesmanship must be constrained by organisational culture and the wider community culture of ethical standards. Dr Karl J. Mackie is Director of the Centre for Legal Studies in the University of Nottingham, where he lectures in employment law and in management skills development. Lawyers in Business: and the Law Business is published by Macmillan (London) 1989. Dr Mackie is a member of the Business Strategy Network and a consultant in business strategy.This paper has been adapted from Mackie, Lawyers in Business: and the Law Business (1989), (London: Macmillan), ch. 10.     

„Controlling hilft,Abweichungen zwischen politischen Vorstellungen und der Realität zu verringern“

Praxis / Artikel

„Controlling hilft, Abweichungen zwischen politischen Vorstellungen und der Realit?t zu verringern“ Interview mit Wolfgang K?hler und Clemens Krechel zu Rechnungswesen und Controlling bei der Stadt Nürnberg     

Status Differentiation and the Protean Self: A Social-Cognitive Model of Unethical Behavior in Organizations

Based on social-cognitive theory, this article proposes a model that seeks to explain why high status organizational members engage in unethical behavior. We argue that status differentiation in organizations creates social isolation which initiates activation of high status group identity and a deactivation of moral identity. We further argue that high status group identity results in insensitivity to the needs of out-group members which, in turn, results in lessened motivation to self-regulate ethical decision making. As a result of this identity activation, we demonstrate how high status individuals will be more vulnerable to engaging in unethical activities. Individual-level moderators of the relationships are also discussed.     

Teams in Australia's automotive industry: Characteristics and future challenges

Australia's automotive industry has throughout the 1990s embarked on a sustained programme to improve product quality, productivity and quality of work life through the development of a more flexible and team-based work-force. This paper examines the results of these efforts through a study of Australia's four car makers and their largest component suppliers. The paper examines the role of union-management cooperation in implementing work teams, identifies the forms of work teams that have been developed as well as evidence for the alignment of organization capabilities to support team-based work. The effects of work teams on organizational performance and quality of work life are also examined. Implications are discussed.