Women and Employee-Elected Board Members,and Their Contributions to Board Control Tasks

We present results from a study about women and employee-elected board members, and fill some of the gaps in the literature about their contribution to board effectiveness. The empirical data are from a unique data set of Norwegian firms. Board effectiveness is evaluated in relation to board control tasks, including board corporate social responsibility (CSR) involvement. We found that the contributions of women and employee-elected board members varied depending on the board tasks studied. In the article we also explored the effects of the esteem of the women and employee-elected board members, and we used creative discussions in the boardroom as a mediating variable. Previous board research, including research about women and employee-elected directors, questions if the board members contribute to board effectiveness. The main message from this study is that it may be more important to ask how, rather than if, women and employee-elected board members contribute, and we need to open the black box of actual board behavior to explore how they may contribute.     

Private contracting and corporate governance: Evidence from the provision of tag-along rights in Brazil

We identify two opposing effects of issuing equity with tag-along rights that secure an equal price in the event of a takeover. First, the anti-self dealing effect commits controlling owners to sell only to new owners that increase shareholder value. Second, the rent transfer effect shifts rents to existing unprotected minority owners. The institutional setting in Brazil's stock market allows us to test this trade-off. We find that announcements of tag-along rights are associated with an average cumulative abnormal return of around 5%, and that the probability of issuing shares with tag-along rights increases with the cost of self-dealing and decreases in the share of existing unprotected minority investors. Overall, our analysis confirms that private contracting can mitigate the economic costs associated with the inadequate legal protection of investors in emerging markets.     

Company taxation and tax spillovers: Separate accounting versus formula apportionment

It is observed in the real world that taxes matter for location decisions and that multinationals shift profits by transfer pricing. The US and Canada use so-called formula apportionment (FA) to tax corporate income, and the EU is debating a switch from separate accounting (SA) to FA. This paper develops a theoretical model that compares basic properties of FA to SA. The focal point of the analysis is how changes in tax rates affect capital formation, input choice, and transfer pricing, as well as on spillovers on tax revenue in other countries. The analysis shows that a move from SA to FA will not eliminate such spillovers and will, in cases identified in the paper, actually aggravate them.     

Whistle-Blowing Methods for Navigating Within and Helping Reform Regulatory Institutions

There are at least four important, institutional obstacles to whistle-blowing to regulatory institutions. First, regulatory institutions are often systematically understaffed and do not have the resources needed to adequately process whistle-blowing cases. Second, regulators who process whistle-blowing cases are often systematically inexperienced and do not understand the strategic importance of whistle-blowing cases. Third, regulators are often under systemic pressure from the politicians who appoint them to ignore whistle-blowing cases relevant to their sources of financial and/or ideological political support. Fourth, there are high systemic risks to whistle-blowers who blow the whistle to regulatory institutions. Nonetheless, understanding how the institutions and obstacles operate can help us understand what types of whistle-blowing methods can be used to navigate around the obstacles and within the regulatory institutions. In addition, sometimes whistle-blowing methods can help reform regulatory institutions.     

Exploration and exploitation fit and performance in international strategic alliances

Exploration and exploitation constitute two separate, potentially conflicting strategic choices for firms engaged in international strategic alliances. Our empirical study challenges the ambidexterity argument and demonstrates that exploration and exploitation are separate (though not necessarily antithetical) strategies with different antecedents and performance consequences.Our results show that while competency similarity is conducive to upstream innovative performance, prior experience with the partner is potentially damaging for this type of performance and trust and cultural distance do not play significant roles. When the motive is efficiency and downstream market performance, prior experience with the partner instead is beneficial, as are high levels of trust and low levels of cultural distance. These findings have key implications for literature on strategic fit and alliance performance.     

Market Integration,Choice of Technology,and Welfare

This paper develops an international trade model where firms in a duopoly may diversify their technologies for strategic reasons. The firms face the same set of technologies given by a tradeoff between marginal costs and fixed costs, but depending on trade costs firms may choose different technologies. Market integration may induce a technological restructuring where firms either diversify their technologies or switch to a homogeneous technology. In general, market integration improves welfare. However, a small decrease of trade costs which induces a switch from heterogeneous technologies to a homogeneous technology may locally reduce global welfare. The model also shows that productivity differences lead to intra‐industry firm heterogeneity in size and exports similar to the “new–new” trade models with monopolistic competition.     

CNC technology, job design and training: the scope for personnel strategies

Drawing on empirical material from a research project on new technology and skills, the author discusses the scope for personnel strategies within a context of varying social constraints. He concludes that within a given production and at a given level of technology, a variation of strategies for staff training and development may emerge. It is argued that the style of management plays a considerable role in determining job design and skill development.     

Negotiating as an ethics action (praxis) strategy

Ethical reasoning as an action (praxis) as opposed to a knowing (epistemology) strategy is not always effective in guilding ethical, stopping or turning around unethical organizational behavior. In contrast, nonviolent forcing strategies can be very effective, but also destructive. If reasoning is an idealistic thesis and forcing is its pragmatic, material antithesis, then do we need a synthesis action (praxis) strategy such as problem solving negotiating? There are also limitations with negotiating.