Why Do Firms Raise Foreign Currency Denominated Debt? Evidence from Finland

This study examines the determinants of the decision to raise currency debt. The results suggest that hedging figures importantly in the currency–of–denomination decision: firms in which exports constitute a significant fraction of net sales are more likely to raise currency debt. However, firms also tend to borrow in periods when the nominal interest rate for the loan currency, relative to other currencies, is lower than usual. This is consistent with the currency debt issue decision being affected by speculative motives. Large firms, with a wider access to the international capital markets, are more likely to borrow in foreign currencies than small firms.     

To whom are IAS earnings informative? Domestic versus foreign shareholders' perspectives

Using a sample from the Helsinki Stock Exchange, this paper analyses the information content of dual disclosures of IAS (International Accounting Standards) and LAS (Local Accounting Standards) earnings. Their information content to foreign and domestic shareholders can be distinguished from each other as the unrestricted shares (available to foreign and domestic investors) and the restricted shares (available to domestic investors only) of the same set of companies were listed separately during 198492. The information content is tested with regressions using market-adjusted stock returns measured from the fifty-week period ending in the week of financial statements release. The overall findings suggest that restating local GAAP earnings according to the IAS helps to meet foreign investors' information needs, but is of limited use to domestic investors.     

The determinants of cash holdings in private family firms

We present empirical evidence on traditional and family firm–specific determinants of cash holdings in the under‐researched context of private family firms. We examine, from an agency theoretic perspective, how and to what extent the relation between family firm management and cash holdings is moderated by the ownership structure. Results reveal that descendant CEOs appear to maintain higher cash holdings than founder CEOs. This effect seems to be stronger if there is a low ownership dispersion. Moreover, outside CEOs maintain higher cash holdings than family CEOs if the family firm is owned by a single owner.     

On the Constitution of a Compound Republic

A compound republic presents the unique opportunity for each level of government to check abuses of the constitution by the other level. This article summarizes why judicial review has not proved to be sufficient to maintain a constitution and the necessary changes to the U.S. Constitution to make the structure of this compound republic more effective.     

Commitment problems justify subsidies for medical insurance

Consumers who believe that government will provide them with some public medical care, even if they did not purchase medical insurance, may choose to purchase no such insurance. The amount of medical care consumed will then be less than the first-best optimum. Under specified conditions government can then increase the welfare of consumers by subsidizing insurance, or by providing public health care at a more generous level than the minimum it would otherwise give.     

An introduction to the clinton health plan

This plan summarizes the Clinton health plan as an introduction to the subsequent panel discussion by Mark Pauly and George Fisher. The Clinton plan is described in terms of five characteristics: universal, standardized, community-rated, managed, and expensive. The plan would also have some complex effects on the labor market. Vice President of the Atlantic Economic Society 1992–93.     

Patterns of psychological contract and their relationships to employee well-being and in-role performance at work: longitudinal evidence from university employees

Abstract

This study identified patterns of psychological contract (PC) and examined how these patterns were related to employee well-being and in-role performance over time (T1–T3). PC was measured at T1 based on cross-sectional data and well-being and performance longitudinally in two consecutive years (T1?T3) among university employees. Latent profile analysis revealed six different patterns of PC at T1. These were labelled (1) strong and balanced (n = 131), (2) average and balanced (n = 382), (3) employer-focused (n = 79), (4) employee-focused (n = 59), (5) balanced transactional (n = 224) and (6) employee-focused relational (n = 322). The longitudinal findings showed that the employees in PC patterns 1 and 2 experienced more vigour at T1–T3 than those in pattern 5, while the employees in pattern 2 reported higher proficiency at work at T1–T2 than those in pattern 6. Employee job satisfaction did not vary between patterns. Altogether, the PC pattern that included many different obligations on the part of both employee and employer seemed to result in better employee well-being and in-role performance.     

Moderating effects of transformational leadership between external team learning and research team performance outcomes

A growing body of empirical research examines the effects of external team learning on team performance. While previous studies suggest that external learning activities enhance team performance, the contingencies of such activities have received less research attention. This study examines the moderating effects of transformational team leadership between external team learning and two team performance outcomes: (1) accepted and published articles in peer‐reviewed scientific journals, and (2) project occupancy rate. The study was conducted with 124 research teams. Supporting the hypotheses, the findings show that transformational leadership has a positive moderating effect between external team learning and both team performance outcomes.