Gender and corporate finance: Are male executives overconfident relative to female executives?

We examine corporate financial and investment decisions made by female executives compared with male executives. Male executives undertake more acquisitions and issue debt more often than female executives. Further, acquisitions made by firms with male executives have announcement returns approximately 2% lower than those made by female executive firms, and debt issues also have lower announcement returns for firms with male executives. Female executives place wider bounds on earnings estimates and are more likely to exercise stock options early. This evidence suggests men exhibit relative overconfidence in significant corporate decision making compared with women.     

Beyond Normal Failures: Dynamic Management of Software Projects

The skillset focusing on the life cycle of projects is critical to both understanding and practising sound management. In practice, attention is often paid to the actions and procedures required to build the system to the detriment of the tasks that are essential in managing the project. Discrete attempts to create such systems often lead to a mismatch between system, expectation and a changing reality. This paper looks beyond discrete processes as part of an effort to generate a dynamic model. The rationale for a Dynamic Feedback Model stems from the need to focus on a continuous and long-term perspective of development and growth in change-intensive environments. The paper makes the case for a learning and knowledge-driven view of software development and presents such a model in a way that accounts for the long-term survival, growth and evolution of software-intensive systems-- crucial areas in terms of the success of systems. While the emphasis is on the development of software, which is pervasive in most systems, the key issues appear to pertain to most technical development projects and environments.     

Consistency of risk premium measures

This research uses the results of a series of within‐sample experiments to elicit risk premium measures from agricultural producers. Results show that there is little consistency between measures in different contexts and using different elicitation methods, suggesting that underlying risk preferences are not consistent. These results highlight some of the difficulty with expected utility theory and risk measurement.     

Does it cost to be sustainable?

We investigate whether firms’ corporate social performance (CSP) ratings impact their performance (cost of capital) and risk. Using a proprietary CSP ratings database, we find no difference in the risk-adjusted performance of UK firms with high and low CSP ratings. Additionally, the firms do not differ in their amount of idiosyncratic risk. We find some evidence of high-ranked firms being larger. The empirical evidence therefore indicates that investors and managers are able to implement a CSP investment or business strategy without incurring any significant financial cost (or benefit) in terms of risk or return.     

Clarity in Defining Product Design: Inspiring Research Opportunities for the Design Process*

The author argues that given the holistic, cross‐functional, and unique nature of the process of product design, more research is needed to understand product design teams. Specifically, future research should address internal processes cultivated within the product design team, macro influences in the product design environment, and the definition of product design team membership.     

The Business Ethics of Short Selling and Naked Short Selling

The controversy over short selling has continued unabated from the introduction of modern equity trading in Amsterdam in 1610 to the present day. Nevertheless, the business ethics literature has not really addressed short selling. Short sellers not only profit from the misery of others, they also create it through their selling activities. However, they also provide a socially useful service by making prices better reflect true values, protecting other investors from purchasing overpriced securities. Short sellers can also help to provide liquidity in the markets. Recently, there has been a hue and cry against so called “naked” short selling, which involves not delivering the shares that have been sold. This gives manipulators a tool for depressing stock prices and deprives purchasers of voting rights and potential stock lending revenue. Naked short selling creates ethical issues for short sellers, buyers, brokers, market makers, and regulators. Is it ethical to exploit a legal loophole that permits sellers to sell stock and delay delivering shares indefinitely?     

Governing through Teamwork: Reconstituting Subjectivity in a Call Centre*

ABSTRACT This article focuses on teamworking as a form of governmentality whereby management seeks to govern by distance. This involves mobilizing the support and commitment of employees to teamworking and organizational goals by appealing to their autonomy, unity, sociability and desire for a more enriched work experience. It is the struggle over subjectivity that is of concern here, for teamworking can be seen as a technology that aims to transform individuals into subjects that secure their sense of meaning and significance through working as a team. We will explore through a case study of a call centre in a large building society how a discourse of teamworking has begun to impinge upon individuals so as to shape not only how they behave but also how they think, derive meaning and understand the world. In turn, we consider some of the tensions and inconsistencies of teamworking in relation to the secrecy of pay differentials, and the return to productivity pressures after a period of relaxation and trust. Ultimately the article examines how individuals respond to, agonize over, resist and baulk against the imposition of ‘team lives’ when this rubs up against what they understand to be their ‘private lives’. This will involve considering gender tensions that have so far been largely neglected in relation to call centres and teamworking. Teamworking, we will argue, reflects a will to govern rather than a mechanism of government.