On Welfare Criteria and Optimality in an Endogenous Growth Model

In this paper, we explore the consequences for optimality of a social planner adopting two different welfare criteria. The framework of analysis is an overlapping generations model with physical and human capital. We first show that, when the social welfare function is a discounted sum of individual utilities defined over consumption per unit of natural labor, the precise cardinalization of the individual utility function becomes crucial for both the characterization of the social optimum and the policies that support it. Also, decentralizing the social optimum requires an education subsidy that is definitely positive, but its size depends in a determinant way on the aforementioned cardinalization. In contrast, when the social welfare function is a discounted sum of individual utilities defined over consumption per unit of efficient labor, the precise cardinalization of preferences becomes irrelevant. More strikingly, along the optimal growth path, the education subsidy is negative, i.e., the planner should tax rather than subsidize investments in human capital.     

Capital Market Development,Competition, Property Rights,and the Value of Insurer Product‐Line Diversification: A Cross‐Country Analysis

In this article, we show that the effect of product diversification on performance is not homogeneous across countries. Diversified insurance companies perform significantly worse than their focused competitors in countries with well‐developed capital markets, high levels of property rights protection, and high levels of competition. In addition, we find that the diversification–performance relationship for insurance companies depends on company size. For large insurers operating in countries with less developed capital markets, diversification significantly increases performance. Our results suggest that the optimal organizational structure may be different for insurers operating in emerging economies than for insurers operating in developed countries.     

Why some firms adopt telecommuting while others do not: A contingency perspective

Using a contingency perspective and data from 122 CEOs of Spanish firms, this paper examines what makes a firm likely to adopt telecommuting. We hypothesized that employer adoption of telecommuting would depend on organizational constraints (age and size of the firm), the international composition of the workforce, and the top executives' leadership style. In turn, we argue that firms adopting telecommuting would emphasize outcome‐based control systems. Our empirical evidence showed that telecommuting correlated with small organizational size, a high proportion of international employees, and variable compensation. A contingent reward leadership style at the top moderated the effects of firm age and internationalization on the adoption of telecommuting. © 2009 Wiley Periodicals, Inc.     

Selecting people based on person‐organisation fit: Implications for intrateam trust and team performance

Teamwork is widely adopted in organisations. Although much evidence indicates that using person‐organisation (P‐O) fit as a selection criterion benefits individual employees, little is known about how this practice influences team functioning. Drawing on the input‐mediator‐outcome model and the research on value congruence, this study built and tested a model that links P‐O fit in recruitment to work teams' performance. Based on data collected from team members, team leaders, human resources managers, and chief executive officers in 96 firms, we found that P‐O fit in recruitment had a positive relationship with team performance and that intrateam trust mediated the relationship between P‐O fit in recruitment and team performance. Further, this mediated relationship existed only when the organisation had a weak, rather than strong, respect‐for‐people culture. This study contributes to the P‐O fit and team literature and has practical implications for human resources practices and team management.     

Fundamentals and Oil Price Behaviour: New Evidence from Co‐integration Tests with Structural Breaks and Granger Causality Tests

As the world economy has undergone various changes and shocks, the oil market went through significant fluctuations during the period 1994–2015. This study focuses on discussing the possible factors that determine crude oil prices, which include world economic growth, market power of Organization of the Petroleum Exporting Countries (OPEC), non‐OPEC supply and the value of dollar, taking into account the structural changes that influence the study period, which is quarterly data for the period of 1994.Q1–2015.Q3. For time series stationarity tests, Zivot and Andrews (1992) and Perron (1997) unit root test with structural break is used. To test the existence of a long relationship in the presence of structural changes, the Gregory and Hansen (1996a, 1996b) method of co‐integration is used. For long‐run coefficient, we proceed to estimate fully modified least squares. The result shows a significant influence of non‐OPEC supply, the dollar appreciation and world gross domestic product growth, but OPEC did not have a significant effect on the price of oil, which is indicated by the structural break for OPEC capacity utilisation at 2002.Q1, that indicates the starting point of the loss of OPEC power. Establishing the presence of co‐integration, we apply the evaluation of Granger causality for co‐integrated data, using vector error‐correction model.     

Has the CSR engagement of electrical companies had an effect on their performance? A closer look at the environment

Even though electrical companies attain a top ranking in the publication of CSR reports, they are often accused of 'green‐washing' due to their bad environmental reputation. The current economic crisis is testing their real CSR commitment more than ever, especially when this goes beyond its economic consequences. Based on a worldwide sample of electrical companies, we are going to study why companies are being socially responsible. We wish to know if it is due to the impact on the firms' performance or whether there are other motives (legitimation, improving their reputation) that lead companies to carry out these practices. We will also consider if it changes across the kind of CSR action considered. The results show that there is an economic justification beyond the socially responsible behaviour of the electrical companies. Additionally, most kinds of CSR action (community, diversity, corporate governance, product responsibility) are also carried out looking for economic rewards. However, the CSR actions oriented to the environment are mainly motivated by their need to improve their image and reverse their negative impact. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

The FRC AND Accounting Standard‐Setting: Should I Still Call Australia Home?

This paper analyses the decision of the Financial Reporting Council (FRC) to replace Australian accounting standards with international accounting standards on 1 January, 2005. Two main topics are considered: the appropriateness of the FRC's directive, and the case against the proposed adoption date. We argue that the FRC has not conducted sufficient consultation with affected parties and that the hasty implementation will impose costs that could have been avoided with the exercise of more caution.     

Regional variations in entrepreneurial cognitions: Start-up intentions of university students in Spain

Empirical research has recently paid considerable attention to the role of environmental factors in explaining regional variations in entrepreneurial activity. However, cognitive models have not usually included these factors in their analyses. Therefore, the main objective of this study is to identify some of the environmental cognitive elements that may explain regional differences in start-up intentions. Thus, an entrepreneurial intention model is developed, theoretically based on the planned behaviour approach, institutional economic theory and social capital theory. The empirical analysis is carried out using structural equation techniques over a sample of 549 final year university students from two Spanish regions (Catalonia and Andalusia). Results confirm that valuation of entrepreneurship in each region helps explain regional differences in entrepreneurial intentions. As expected, social valuation of the entrepreneur was higher in the more developed region (Catalonia), positively affecting perceived subjective norms and behavioural control. In Andalusia, the influence of perceived valuation of the entrepreneur in the closer environment was more important, affecting attitude towards the behaviour and subjective norms. These results explain some of the differences in the pool of potential entrepreneurs in each region. They also justify the need by public-policy decision-makers to promote more positive entrepreneurial values in relatively backward regions.     

NPO branding: preliminary lessons from major players

• Are nonprofits (NPOs) exhibiting the brand orientation believed to be critical to successful outcomes? To answer this question, we investigate the brand orientation and brand management of the Young Men's Christian Association (YMCA), American Red Cross (ARC), and The Salvation Army to assess the implementation of brand concepts in two different locations within the USA compared to each agency's central body. Despite the support of some propositions, there exists inconsistent evidence of strong brand management in the organizations studied. The variation of brand visuals, missions, and taglines indicates that good structure, policy, and guidelines are not enough. There must be true brand orientation, which includes oversight of consistent application of all brand constructs to achieve organizational goals. This study provides a framework upon which future in‐depth empirical research may be based. The authors outline these next steps as a foundation for enhancing the study and practice of brand management in NPOs.

Copyright © 2009 John Wiley & Sons, Ltd.     

Antecedents and Consequences of User Coproduction in Information System Development Projects

Based on a coproduction concept highlighted by service‐dominant logic, this study attempts to understand the antecedents and consequences of user coproduction in information system development projects. As a key contribution, we posit that user coproduction is influenced by social capital between users and developers; we then postulate that user coproduction determines the project outcomes. Paired data collected from both user representatives and developers by using a survey approach was used to test proposed hypotheses. The results showed that user coproduction has a positively significant influence on project outcomes, and social capital between user representatives and developers is also associated with user coproduction.