Stock option compensation: impact of expense recognition on performance indicators of non-domestic companies listed in the U.S.

The IFRS 2, Share-based Payment, requires that companies recognize the fair value of employee stock options as an expense. To ascertain the impact recognition will have on companies domiciled in countries subject to accounting standards issued by the IASB’s liaison standard setting partners, this research examines the pro forma stock option disclosures provided in Form 20-F by Australian, British, Canadian, French, German, Japanese, and Irish companies.The findings indicate the average impact of expense recognition on diluted EPS will be approximately 40% and will be material at a 5% level for the majority of the companies. The impact varies significantly by country. On average the annual expense recognized will be approximately 15% of beginning stockholders equity. For the majority of the companies, the charge will represent less than 1% of beginning equity. Again the impact varies significantly by country.The findings indicate that absent requirements that stock compensation expense be recognized, a material upward bias will be reflected in performance indicators of many non-U.S. companies and cross-border comparability will be impaired. Since our analysis is based solely on data for the year 2000 for companies domiciled in seven countries, future research will be needed to ascertain the impact of expense recognition on a broader range of companies reporting under IFRS 2.     

Classification in automobile insurance using a DEA and discriminant analysis hybrid

In this article, we adopt an efficiency approach to the two-group linear programming method of discriminant analysis (DA), using principles taken from data envelopment analysis (DEA), to predict group membership in an insurance underwriting scheme. Using an empirical insurance data base we illustrate the effectiveness of our model as a decision-making tool to distinguish among automobile insurance applicants by contrasting our hybrid model with both statistical and LP methods of discriminant analysis. We find for this insurance application that our hybrid model significantly outperforms the more traditional methods in separation and misclassification outcomes.     

Adaptation and Organizational Connectedness in Corporate Radical Innovation Programs*

This research examines how established companies organize programs for fostering technology‐based radical innovation. It addresses conflicts revealed in the innovation literature concerning the appropriate design of the strategic, structural, and process components of these programs. In developing innovation strategies, managers must balance the desire for strategic clarity with the need to allow for creativity and exploration. They must structure programs that ensure innovations benefit from the organization's resources while minimizing the numerous constraints that can impede these unconventional activities. Additionally, though they may favor management processes that provide accountability and effective resource allocation, managers must also ensure these do not restrict the flexibility required for successful innovation. The study is a longitudinal, comparative case analysis of interviews with managers involved in innovation programs in 12 industry‐leading multinational corporations. Site visits at each company were followed by biannual interviews with key managers in each company. A total of 81 follow‐up interviews were conducted over a three‐year period. These interviews were aimed at identifying the changes and progress in the programs over time and internal and external impacts on the organization's innovation activity. The analysis reveals (1) distinct but evolving objectives that maintain a logical strategic connection, (2) adaptive structures that shift and transform but preserve relationships with the broader organization, and (3) flexible processes that are understandable beyond the innovation program and are modifiable, both for the context and in response to learning over time. This suggests that programs introducing high uncertainty and risk into mature corporate environments are highly flexible systems that maintain organizational connectedness as they evolve. For academics, this implies a need to understand the evolution of innovation programs as an adaptive learning process that, regardless of form and purpose, preserves its connection to the traditional organization. For practitioners, it highlights the importance of considering the process, strategic, and structural connections to the broader organization when designing innovation programs and suggests the need for feedback mechanisms to help adapt these elements over time.     

Competitiveness in information technology service exports

The US service export base is expanding rapidly as firms seek to penetrate international markets in search of growth opportunities. This article explores mechanisms that a sample of 67 US-based information technology (IT) firms use to export their services to one selected market, Mexico. A correlation analysis revealed that most firms adapt and extend existing IT services for the Mexican market, and consider cultural understanding imperative to successful operations in Mexico. The results also found that firms use a variety of business arrangements (joint ventures, licensing) and a wide array of contract vehicles (time and materials, firm fixed price). © 1995 John Wiley & Sons, Inc.     

人力资本管理“分析论”的力量

将来，人力资源部将像财务部、市场部和营运部那样捅有强有力的数据、框架和分析方法。     

Assessing skills and autonomy: the job holder versus the line manager

Managers and their employees may have different perceptions of the skills used in jobs. We carried out a survey aimed at explaining such differences, in respect of verbal, physical, problem‐solving and planning skills, the qualifications required to get the job and indicators of workplace autonomy. First, for most skills there is a reasonably good match between the perceptions of the line manager and those of the employee. But in the case of the contested skills associated with autonomy there is little agreement. Secondly, for most skills there is a small ‘perceptions bias’, in the sense that employees rate required skills at a higher level than their line managers. Thirdly, consistent with the hypothesis that skills are socially constructed, when the manager is male and the worker female there is a tendency for the boss to underestimate and/or the worker to overestimate their skill level by comparison with other gender combinations.     

Conservation capital and sustainable economic growth

An endogenous growth model, which links pollution to ineffectiveinput-use, is developed to examine the potential for achievingbalanced growth while preserving the environment through investmentin conservation capital. We derive conditions under which individualpreferences for environmental quality and private incentivesfor investment in conservation capital can lead to non-decreasingenvironmental quality with balanced growth even in the absenceof environmental regulations. Additionally, conditions underwhich investment in conservation capital can enable an environmentallyregulated economy to achieve a higher rate of sustainable balancedgrowth than otherwise are analysed.     

Nurturing nursing's future through nurse executive partnerships

At a time when nurses are becoming an endangered species, nurse executives have a unique opportunity to respond by forging new and responsive relationships with graduate students who express interest in nursing administration and leadership as a preferred career choice. In this article, a case example demonstrates how a senior faculty member and a graduate student formed a partnership, conducted research, and nurtured an appreciation of the nurse educator role. Using this experience, senior nurse executives can too form partnerships with graduate students as a way to recruit into nursing leadership roles.     

Building dynamic capabilities for innovation: an exploratory study of key management practices

While both the innovation literature and the dynamic capabilities perspective identify loose processes as most appropriate for high uncertainty domains, this produces little reassurance to organizations seeking to improve their ability to commercialize innovations. This paper takes the position that practices for managing innovation project leaders are a key component of an organization's dynamic capabilities for innovation. Our comparative case analysis of divisions of two established Korean organizations suggests that managerial practices include the deployment of entrepreneurial resources having particular skills, characteristics, and motivation. In addition, we identify the relational and decision support roles of managers.     

The role of productive failure in 3D printing in a middle school setting

International Journal of Technology and Design Education - In this research we explore the pedagogical affordances associated with the use of a 3D printer in a middle school classroom...