Affirmative Action: The Facts, the Myths, and the Future

This article focuses on recent federal court rulings affecting preferential treatment programs mandated by affirmative action policies and programs. The article addresses the greater burden that these decisions now place on organizations to justifying race-based remedial actions, and the standards by which these actions are judged. However, the programs affected by these rulings are only those imposed by federal, state or local governments. This article also discusses the narrow scope of these decisions—what programs they have not changed. As will be demonstrated, a broad range of voluntary private sector programs remain unaffected.     

Make your company a talent factory

Despite the great sums of money companies dedicate to talent management systems, many still struggle to fill key positions - limiting their potential for growth in the process. Virtually all the human resource executives in the authors' 2005 survey of 40 companies around the world said that their pipeline of high-potential employees was insufficient to fill strategic management roles. The survey revealed two primary reasons for this. First, the formal procedures for identifying and developing next-generation leaders have fallen out of sync with what companies need to grow or expand into new markets. To save money, for example, some firms have eliminated positions that would expose high-potential employees to a broad range of problems, thus sacrificing future development opportunities that would far outweigh any initial savings from the job cuts. Second, HR executives often have trouble keeping top leaders' attention on talent issues, despite those leaders' vigorous assertions that obtaining and keeping the best people is a major priority. If passion for that objective doesn't start at the top and infuse the culture, say the authors, talent management can easily deteriorate into the management of bureaucratic routines. Yet there are companies that can face the future with confidence. These firms don't just manage talent, they build talent factories. The authors describe the experiences of two such corporations - consumer products icon Procter & Gamble and financial services giant HSBC Group -that figured out how to develop and retain key employees and fill positions quickly to meet evolving business needs. Though each company approached talent management from a different direction, they both maintained a twin focus on functionality (rigorous talent processes that support strategic and cultural objectives) and vitality (management's emotional commitment, which is reflected in daily actions).     

What do dividends tell us about earnings quality?

Over the past 30 years, there have been significant changes in the distribution of earnings—cross-sectional variation has increased, with increasing left skewness—as well as in corporate payout policy, with many fewer firms paying dividends and the emergence of stock repurchases. We investigate whether the informativeness of payout policy with respect to earnings quality changes over this period. We find that the reported earnings of dividend-paying firms are more persistent than those of other firms and that this relation is remarkably stable over time. We also find that dividend payers are less likely to report losses and those losses that they do report tend to be transitory losses driven by special items. These results do not hold as strongly for stock repurchases, consistent with them representing less of a commitment than dividends.     

When caring stops, staffing doesn't matter: part II

Response to a column on caring and staffing struck a cord with Nursing Economic$ readers worldwide. Measuring caring is complicated and a healthy debate exists over how exactly to do it. The extraordinary work of Dr. Jean Watson is an excellent resource for understanding how to measure and monitor caring. Beneath the instruments for measuring caring sits foundational work that can help us clarify and understand the topic of caring and just where it sits in our philosophies, intentions, patient care models, and care delivery systems.     

Shadow pricing diversity in U. S. national forests

Tobit estimation of the market value of timber sales in national forests of North Carolina demonstrates the important effect of stand diversity on the formulation of bid prices for mixed-species timber tracts. The hedonic model generates a shadow price for diversity according to changes in bid prices, an effective shift in the demand curve for auctioned tracts due to stand diversity attributes. This approach contrasts with traditional shadow price analyses that focus on the supply effects of environmental constraints. Results are corrected for the effects of bidder participation, market conditions, production costs, and other stand attributes. Econometric results demonstrate that stand heterogeneity is a highly significant factor influencing the market value of timber sales from national forests of the Appalachian region. Greater heterogeneity results in lower bid prices for timber sales, indicating a positive shadow price for maintenance of stand diversity.     

<Emphasis Type="Bold">The Nature of the Farm: Contracts,Risk, and Organization in Agriculture</Emphasis>

Book Review

The Nature of the Farm: Contracts, Risk, and Organization in Agriculture     

Does the External Monitoring Effect of Financial Analysts Deter Corporate Fraud in China?

We examine whether analyst coverage influences corporate fraud in China. The fraud triangle specifies three main factors, i.e. opportunity, incentive, and rationalization. On the one hand, analysts may reduce the fraud opportunity factor through external monitoring aimed at discouraging managerial misconduct, which can moderate agency problems. On the other hand, analysts may increase the fraud incentive factor by pressurizing managers to achieve short-term performance targets, which can exacerbate agency problem. In either case, the potential influence of analysts on the fraud rationalization factor may be more pronounced among firms that are more dependent on the capital market for corporate finance. Using a sample of Chinese listed firms, we show a negative association between corporate fraud propensity and analyst coverage, and that this effect is more pronounced among non-state-owned enterprises, which are more reliant on the stock market for external funding. These findings suggest that analyst coverage contributes to corporate fraud deterrence in emerging economies characterized by weak investor protection. The main policy implication is that further development of the analyst profession in emerging economies may benefit investors and strengthen business ethics.     

Whiskey: marketplace icon

Brands are potent and efficient vehicles to diffuse and reproduce ideologies. This article revisits over a decade of research on Jack Daniel’s as an iconic brand, and provides a behind the scenes look at the process of researching cultural brands. It describes whiskey as a marketplace icon that reflects particular cultural ideologies, and updates the Jack Daniel’s story in the context of the craft liquor movement. Iconic brands, cultural icons, and marketplace icons are discussed. Further distinctions between iconicity at the category, segment and brand level are made. The article is transcribed and edited from an interview with Consumption Markets & Culture editor Jonathan Schroeder in June 2015.     

Individual,Organizational, and Institutional Determinants of Formal and Informal Inter‐Firm Cooperation in SMEs

Inter‐firm cooperation has been considered an important strategy for SMEs to overcome competitive difficulties. Despite the relevance of this strategy there are no studies that jointly consider how entrepreneurs' characteristics, organizational factors, and institutional features influence SMEs to establish cooperative agreements. In order to bridge this gap, we analyze what factors at these three levels explain inter‐firm cooperation and whether formal and informal inter‐firm agreements are explained by different factors. Our research is based on a survey of 1,587 Spanish SMEs and the results show that individual, organizational, and institutional factors contribute to jointly shape the decisions concerning inter‐firm cooperation.     

Facing up to Trump administration mercantilism: The 2018 WTO trade policy review of the United States

As one of the largest trading economies in the WTO system, US trade policy is reviewed regularly by WTO members, informed by a Trade Policy Review (TPR) report. This paper discusses the 2018 TPR of the United States, the 14th such review undertaken since the entry into force of the WTO in 1995. It is the first review of trade policy under the Trump administration. While the TPR documents the significant changes in US trade policy, it does not engage with the mercantilist vision that motivates trade policy under President Trump or the apparent desire to engage in trade wars with its major trading partners. The lack of discussion of the existential threat to the liberal trading system implied by the drastic changes to US trade policy reduces the salience of the TPR and makes it unclear exactly what purpose it serves.