When does Ethical Code Enforcement Matter in the Inter-Organizational Context? The Moderating Role of Switching Costs

Drawing on signaling theory, we suggest that a supplier’s enforcement of ethical codes sends signals about the supplier that affect a buyer’s decision to continue their commitment to the supplier. We then draw on side-bet theory to hypothesize how switching costs influence the importance of a supplier’s enforcement of ethical codes in predicting a buyer’s continuance commitment to a supplier. We empirically test our model with data from 158 purchasing managers across three manufacturing industries. Results confirm the connection between ethical code enforcement and continuance commitment, but suggest that a supplier’s enforcement of ethical codes matter less when switching suppliers is perceived as too costly.     

Are candlestick technical trading strategies profitable in the Japanese equity market?

We show that candlestick charting, the oldest known form of technical analysis, is not profitable in the Japanese equity market over the 1975–2004 period. Candlestick technical analysis, which was developed in Japan in the 1600s, is deeply intertwined with Japanese culture and is very popular in Japan. However, there is no evidence candlestick technical trading strategies add value in either the entire 30 year period, in three 10 year sub-periods or in bull or bear markets.

Goal congruence: fitting international assignment into employee careers

This research investigates how the quality of the relationship between sending supervisors and expatriates is related to turnover and performance. Utilizing goal congruence and leader–member exchange (LMX) theories, it is hypothesized that the quality of the relationship between sending supervisors and expatriates mediates goal congruence and the two outcome variables: performance and turnover intentions. The goal examined is the degree to which the expatriation fits into expatriates' career paths at the firm. Regression analysis is used to test the hypotheses with a sample of 44 matched sending supervisor–expatriate dyads. Findings indicate that LMX mediates the relationship between goal congruence and performance. Furthermore, goal congruence has a direct negative relationship with turnover intentions. These results suggest that sending supervisors significantly influence the success of expatriate assignments.     

Using climate models to improve Indonesian food security

El Niño Southern Oscillation (ENSO) events exert significant influence on Southeast Asian rice output and markets. This paper measures ENSO effects on Indonesia's national and regional rice production and on world rice prices, using the August Niño 3.4 sea surface temperature anomaly (SSTA) to gauge climate variability. It shows that each degree Celsius change in the August SSTA produces a 1,318,000 metric ton effect on output and a $21/metric ton change in the world price for lower quality rice. Of the inter-annual production changes due to SSTA variation, 90% occur within 12 provinces, notably Java and South Sulawesi. New data and models offer opportunities to understand the agricultural effects of ENSO events, to reach early consensus on coming ENSO effects, and to use forecasting to improve agencies' and individuals' capacity to mitigate climate effects on food security. We propose that Indonesia hold an ‘ENSO summit’ each September to analyse the food-security implications of upcoming climate events.     

Abstracts

The Review of Black Political Economy -     

Employee Reactions to Internet Monitoring: The Moderating Role of Ethical Orientation

Research has demonstrated that employee reactions to monitoring systems depend on both the characteristics of the monitoring system and how it is implemented. However, little is known about the role individual differences may play in this process. This study proposes that individuals have generalized attitudes toward organizational control and monitoring activities. We examined this argument by assessing the relationship between employees’ baseline attitudes toward a set of monitoring and control techniques that span the employment relationship. We further explore the effects of employees’ generalized attitudes toward monitoring and their individual ethical orientations on their attitudinal reactions to an Internet monitoring system implemented in their workplace. Results of a longitudinal study indicate that as expected, prior beliefs and ethical orientation interact to affect employees’ reactions to monitoring systems. Implications for research and practice are discussed.     

Exchange rate exposure, foreign currency derivatives and the introduction of the euro: French evidence

We investigate the impact of the introduction of the Euro on exchange rate exposures for French corporations and examine the corporate use of foreign currency derivatives to hedge exchange rate exposure post-Euro. Our findings indicate that the introduction of the Euro is associated with both a reduction in the number of firms that have significant exchange rate exposure and the absolute size of exposure. Consistent with these reduced exposures, French firms use foreign currency derivatives less intensively. Furthermore, the use of foreign currency derivatives is found to be associated with lower exchange rate exposure but there is insufficient evidence that these instruments are more effective in the post-Euro environment.