Vacation travel planning segments: Self-planning vs. users of motor club and travel agents

The characteristics and travel behavior of 2,436 respondents are analyzed with respect to their use of planning assistance for vacation travel. Differences were detected between the three planning segments: self-planners, motor club users and travel agent users, e.g., travel agent users traveled more often by air and for multiple purposes. Substantial similarities were found between self-planners and motor club users. In general, the use of professional planning assistance increased as the distance to be traveled increased. The findings support the development of specific marketing programs developed for the motor clubs and travel agent users by destination managers.     

The Effect of International Work Experience on the Career Success of Expatriates: A Comparison of Assigned and Self‐Initiated Expatriates

This article is one of the first to examine the long‐term effect of expatriation on careers, comparing the impact of international work experience on the career success of assigned and self‐initiated expatriates. Our sample consists of employees who were working abroad in 2004, and we examine their subjective and objective career success eight years later. Despite the “dark side of international careers” arguments associated with the repatriation literature, we find that the long‐term impacts of international work experience on career success are generally positive and mainly unrelated to whether the work experience was acquired as an assigned or self‐initiated expatriate. Companies recruit employees with international experience externally but are much more likely to offer further internal jobs to assigned expatriates. This reinforces the need for further research and for companies to see all those with international experience as important elements of the workforce. © 2017 Wiley Periodicals, Inc.     

The Foreign Exchange Exposure Management Practices of Finnish Industrial Firms

This study employs questionnaire survey and financial accounting data to extend earlier empirical work on the foreign exchange (FX) exposure management practices of Finnish industrial firms. The paper concentrates on: (i) the form that FX corporate hedging policy takes; (ii) the control of FX procedures and trading; and, (iii) our respondents' perceptions about their ability to predict FX rate changes for hedging decisions. Our results indicate that the extent to which firms hedge FX exposure depends on the type of exposure and the form that FX hedging policy takes. Also, a significant number of the firms pursue FX hedging strategies on the expectation of attaining trading profits and this strategy appears to be accommodated within their FX policies. This feature is not explicitly demonstrated in previous studies. Finnish firms hedge a much higher proportion of both transaction and translation exposures compared to economic exposure. We partly attribute this emphasis to the requirements of the Finnish Accounting Act, which came into effect in 1993. The organisational, historical and financial settings of the firms also have significant impacts on exposure management practices. The overall implication of those results is that firms respond to changes in the financial, economic and regulatory environments in which they operate.     

The optimal portfolio of start-up firms in venture capital finance

Venture capitalists (VCs) not only finance but also add value to start-up companies. Advising firms is time consuming and creates a trade-off between intensity of advice and portfolio size. We jointly determine the optimal number of portfolio companies and the intensity of managerial advice. Diminishing returns to advice per firm call for a larger portfolio. With progressively increasing managerial effort cost, however, a larger number crowds out advice to each individual firm. As they receive less support, entrepreneurs request a larger profit share, making further portfolio expansion eventually unprofitable. Comparative static analysis shows how optimal portfolio size responds to venture returns and other parameters.     

The redistribution of wealth in inflation

The paper presents formulation of the debtor-creditor hypothesis of redistribution of wealth in inflation. A portfolio model is used to derive an expression for the change in real rate of return measuring inflation gain or loss. The situation is relevant when the market rates of return fail fully to respond to expectations or when the inflation rate is not fully predictable. Of the wealth transfers from the private sector to the government in inflation, the model only covers the case of inflation tax. The model is employed to consider the controversial issue of inventory gains in inflation. The conclusion is that neither LIFO or FIFO can be regarded as having general validity as inventory accounting method in inflation.     

UNANTICIPATED INFLATION, TAXATION, AND COMMON STOCKS

This paper focuses on the effects of unanticipated inflation on the market value of equity in a system with corporation tax and historic cost depreciation. It is shown that there exists a unique combination of debt and equity under which inflation neutrality is obtained, Whether or not unanticipated inflation hurts or benefits the stockholders in a particular firm depends upon a number of conditions. These include the depreciation rate of its assets relative to the amortization rate of its debt. Finally, the present tax system is contrasted with a fully indexed system involving replacement cost depreciation and indexation