UNIVERSITY OF GEORGIA ROUNDTABLE ON: Enterprise‐Wide Risk Management

For many years, MBA students were taught that there was no good reason for companies that hedge large currency or commodity price exposures to have lower costs of capital, or trade at higher P/E multiples, than comparable companies that choose not to hedge such financial price risks. Corporate stockholders, just by holding well‐diversified portfolios, were said to neutralize any effects of currency and commodity price risks on corporate values. And corporate efforts to manage such risks were accordingly viewed as redundant, a waste of corporate resources on a function already performed by investors at far lower cost. But as this discussion makes clear, both the theory and the corporate practice of risk management have moved well beyond this perfect markets framework. The academics and practitioners in this roundtable begin by suggesting that the most important reason to hedge financial risks—and risk management's largest potential contribution to firm value—is to ensure a company's ability to carry out its strategic plan and investment policy. As one widely cited example, Merck's use of FX options to hedge the currency risk associated with its overseas revenues is viewed as limiting management's temptation to cut R&D in response to large currency‐related shortfalls in reported earnings. Nevertheless, one of the clear messages of the roundtable is that effective risk management has little to do with earnings management per se, and that companies that view risk management as primarily a tool for smoothing reported earnings have lost sight of its real economic function: maintaining access to low‐cost capital to fund long‐run investment. And a number of the panelists pointed out that a well‐executed risk management policy can be used to increase corporate debt capacity and, in so doing, reduce the cost of capital. Moreover, in making decisions whether to retain or transfer risks, companies should generally be guided by the principle of comparative advantage. If an outside firm or investor is willing to bear a particular risk at a lower price than the cost to the firm of managing that risk internally, then it makes sense to lay off that risk. Along with the greater efficiency and return on capital promised by such an approach, several panelists also pointed to one less tangible benefit of an enterprise‐wide risk management program—a significant improvement in the internal corporate dialogue, leading to a better understanding of all the company's risks and how they are affected by the interactions among its business units.     

The Economics Student Reexamined: Male-Female Differences in Comprehension

This paper adds to the growing literature investigating the relative performance in economics courses between female and male students. The authors review the results of a large-scale study of essay and objective test results, learning rates, and the influence of precollege courses.     

Tipping participation and expenditures in beauty salons

Research on tipping has been limited to restaurants, tourism and taxis. This study investigates the economic and demographic factors that influence whether a person tips and the amount tipped for a haircut in a beauty salon. Using a two-step model, it is found that both economic and demographic factors influence tipping behaviour. A person is more likely to tip if he/she has long hair, attends to grooming on a frequent basis, has a lower income, and is male. Price, gender, age, and the use of appointments are factors that influence the amount that one tips.     

Leadership,task and relationship: Orpheus,Prometheus and Janus

The idea that the major division in leadership or management styles is a preference for either task or relationship orientation has long prevailed in the literature. This article proposes an alternative orientation for leaders; that, while in pursuit of achieving the task, the leader is focused either on the needs of superordinates or subordinates, or both. A large‐scale evaluation of leadership in the Royal Air Force from the perspective of followers suggests that although there is some surface support for the task/relationship dichotomy, the more important division is threefold: between people who only look upwards to satisfy the demands of their superordinates (Orpheans), those that tend to focus downwards at the demands of their subordinates (Prometheans) and those that try to look both ways (Janusians). The latter appear to have the greatest chance of sustained success at the more senior levels of the organisation.     

Antecedents to the Justification of Norm Violating Behavior Among Business Practitioners

This study investigates the role that moral identity, religiosity, and the institutionalization of ethics play in determining the extent of justification of norm violating behavior among business practitioners. Moral justification is where a person, rather than assuming responsibility for an outcome, attempts to legitimize ethically questionable behavior. Results of the study indicate that both the internalization and symbolization dimensions of moral identity as well as intrinsic religiosity and the explicit institutionalization of ethics within the organization are significant determinants of the moral justification of unethical behaviors.     

能源规划 安全第一

奥巴马呼吁美国加大清洁能源使用，以增强能源独立性，并将其作为“国家使命”。对此，中国官员一定深表赞同，他们已经花了相当长的时间起草中国能源法规，目的与美国相同。     

Crisis in the meat industry: a values-based approach to communications strategy

Meat consumption in the UK has been falling for almost 20 years and the long-standing link between affluence and meat eating has been broken. In 10 years the proportion of the population claiming to be vegan or vegetarian doubled, while those identified as meat avoiders almost quadrupled with a further 40% now being classified as 'meat reducers' by Gallup. Means-End analysis was used for studying the underlying motivations of three groups: meat eaters, meat reducers and vegetarians. Health was found to be the central issue in food choice, but each group sought different terminal values. The view that meat reducers (and possibly even meat avoiders) are demi-vegetarians is challenged by the finding that their underlying motivations are similar to meat consumers and quite unlike those of vegetarians. Persuading meat reducers to adopt a vegetarian diet would require the difficult task of changing the enduring terminal values that they seek to attain through food choice behaviour. In contrast, persuading them to eat more meat would 'only' be a question of changing their beliefs about the healthiness of meat consumption. This paper reports on a study conducted in the UK and considers the implications of the findings for communications strategy.     

Consumer Choice: A Study of Insurance Buying Intention,Attitudes and Beliefs

This article continues the theme, introduced in a previous article, of testing the validity and relevance of Fishbein's Theory of Reasoned Action to the purchase of life assurance. In this, the second stage, empirical analysis of the data is conducted and its meaning and relevance considered. Conclusions are then drawn as to the dimensions which seem to be important to the purchasing of life assurance.