Strategy and the environment: A study of corporate responses to crises

This paper describes an empirical study that examines the relationship between the type of external environment in which a firm operates and the repertoire of strategic responses the firm develops to cope with crises. The findings suggest that an executive's propensity to adopt a particular strategic posture depends on his perceptions of how well his firm can control its environment and on the costs of introducing change into the organization.     

The future of religions

The global future of religions is considered in the context of ‘worldviews’ which, unlike traditional Western beliefs, combine religious and secular belief systems into a dynamic functioning whole. Seven world blocs relating to seven worldviews are identified: the ‘democratic West’ (with a largely Christian background); the Euro—Asian Marxist bloc; the Islamic crescent from Indonesia to North Africa; the non-Marxist, non-Islamic cultures of old Asia; Latin America; Black Africa south of the Sahara; and the smaller countries of the Pacific. The dual forces of individualism and nationalism will have the largest impact on the future development and interactions of religions. The most powerful changes politically will be the convergence of the interests of Christianity and Western humanism on the one hand, and Buddhism and other religions on the other. The ecumenical North—South character emerging in Christianity will make the churches more critical of the present economic system, ‘privatized’ religion will appear in the Marxist countries, hardline Judaism will intensify in the USA (despite developments in Israel) and the friction between radical Hindu and Islamic values will increase (especially in India) and could be a major factor in warfare over the next 30 years.     

Open Science and Open Innovation in a socio‐political context: knowledge production for societal impact in an age of post‐truth populism

This conceptual paper traces the origins and progress of Open Science and proposes its generative coupling to Open Innovation in the contemporary socio‐political context; where universities are re‐imaging their civic missions in the face of anti‐establishment populist politics. This setting is one of changing knowledge production regimes and institutional pressures that create contradictions identifiable through the prism of the series of scientific norms conceptualised by Robert K. Merton. This paper privileges a sociological perspective to proffer scientific knowledge production as a societally embedded process, which is well illustrated by scholarship in the Science and Technology Studies (STS) and Science in Society fields. In doing so, it identifies the co‐evolution, co‐existence and co‐production of Open Science with Open Innovation; and notes how it shares the attributes of other recent diagnoses of changing knowledge production regimes; in particular Mode 2, post‐normal science and the Quadruple Helix. It also argues that Open Science can be coupled with Open Innovation to catalyse positive societal change, but that the rise of a populist post‐truth era opposed to objectivity, expertise and technocratic political solutions gives the demand for openness and participation a different complexion. Merton's norms provide a useful lens to observe recent shifts in the delivery of science, knowledge and innovation in society towards more inclusive, ethical and sustainable outcomes; and expose the limited reflection on how the appropriation and exploitation of open scientific knowledge encounters industrial R&D and Open Innovation.     

Stock Price Effects of Mandatory Exchangeable Debt

We study mandatory exchangeable debt offerings. A firm that issues mandatory exchangeable debt requires bondholders to exchange their bonds for shares of the underlying firm in which the issuing firm has a stake. We find significant announcement (−3.3%) and long-run (−13%) abnormal price declines for underlying companies. The evidence is consistent with the hypothesis that mandatory exchangeable debt issuers exploit private information that they possess to issue mandatory exchangeable debt when the underlying stock is overvalued.     

Acquisition Activity and IPO Underpricing

We propose an “M&A activity” hypothesis as a partial explanation for initial public offering (IPO) underpricing. When going public during active corporate control markets, managers may take actions to safeguard their control. In support of this conjecture, we find that pre-IPO M&A activity directly explains IPO underpricing. We also find that underpricing and ownership dispersion are positively correlated, as are ownership dispersion and the probability of remaining independent. Considering the possibility that some managers take their firms public to be acquired, we find that the positive link between M&A activity and underpricing is not robust for firms that are viewed as likely targets.