Keynes,Trouton and the Hector Whaling Company. A personal and professional relationship

John Maynard Keynes’ activities in the stock market are well known. One company in which he bought shares was the Hector Whaling Company Ltd, London, founded in 1928. The director of this company was Rupert Trouton. He had worked with Keynes for the government during the First World War, was his student at Cambridge, and became a close partner in the City from the 1920s and onwards. This article outlines the foundation and development of Hector Whaling, and analyses the relationship between Trouton and Keynes. The focus is on their co-operation relating to Hector Whaling. But their relationship regarding various other businesses, as well as on the personal level, is also analysed.     

Between trust and control: company‐level bargaining on flexible working hours in the Danish and German metal industries

Denmark is often highlighted as a good example of organised decentralisation in which employee bargaining power remains comparatively strong. However, comparative analysis of the Danish case rarely reflects how the social contracts between management and workers' representatives contribute to the bargaining outcome at company level. Drawing on 10 case studies in the German and Danish metal industries carried out in 2005, this article argues that the social contracts at the Danish case companies allow a more efficient use of company‐level agreements on flexible working hours than the social contracts at the German case companies.     

Testing the central market hypothesis: a multivariate analysis of Tanzanian sorghum markets

The central market hypothesis is important in the analysis of market integration because it implies a specific market structure while avoiding a simultaneity problem. However, despite its importance, the central market hypothesis is difficult to test and is therefore often assumed. This article shows that the hypothesis can be tested in a Johansen cointegration test provided that prices are nonstationary. This approach is applied to reveal the existence of central markets for sorghum in Tanzania. The results indicate that the Tanzanian sorghum market can be grouped into two market regions, with prices being determined in a central market in each region.     

Mean Reversion in Profitability for Non‐listed Firms

The presence of mean reversion in profitability at the firm level is important for valuation and prediction of growth and earnings. We investigate the mean reversion in accounting profitability for Norwegian non‐listed firms for the period 1988–2006. We find a mean reversion rate of about 0.44 per year. This is higher than found in other studies. We also find that small firms have a higher mean reversion rate than large firms. Our results should have important practical implications for the difficult task of valuing non‐listed firms. Previously, price‐to‐book ratios have been used to investigate changes in profitability over time for listed firms. We examine bankruptcy risk as an alternative variable for unlisted firms. We find that bankruptcy risk may help explain changes in profitability, but the results are not as strong as found in previous work.     

Measuring prior sensitivity and prior informativeness in large Bayesian models

In large Bayesian models, such as modern DSGE models, it is difficult to assess how much the prior affects the results. This paper derives measures of prior sensitivity and prior informativeness that account for the high dimensional interaction between prior and likelihood information. The basis for both measures is the derivative matrix of the posterior mean with respect to the prior mean, which is easily obtained from Markov Chain Monte Carlo output. We illustrate the approach by examining posterior results in the small model of Lubik and Schorfheide (2004) and the large model of Smets and Wouters (2007).     

Caught in a communicative catch-22? Translating the notion of CSR as shared value creation in a Danish CSR frontrunner

There is a growing interest in how the notion of corporate social responsibility (CSR) as shared value creation is translated in Scandinavia. However, current research seems to disregard that the specific institutional context is ambiguous, enabling the organization, and its internal stakeholders to translate the institutional logics into contradictory meanings of CSR as shared value creation. Building on the institutional logics perspective and the metaphor of translation, and framed within a case study of a Danish CSR frontrunner, this paper explores how the notion of CSR as shared value creation is translated at both the organizational and individual level through discourse. The study shows that the organization and its internal stakeholders employ different strategies to reconcile the institutional logics of ethics and economy, suggesting that the translation processes are a complex communicative matter of continuously balancing the contradictory institutional logics to maintain legitimacy in the eyes of external stakeholders.