Capital Structure Theory and the Fisher Effect

This paper incorporates capital structure theory to model the response of nominal interest rates to expected inflation in a world with taxes. Within an otherwise common framework, the model includes Modigliani-Miller (MM) and Miller capital structure theory, as well as a variation of the Miller model with bankruptcy costs, developed by DeAngelo and Masulis. Within this framework, we derive an equation to predict the response of nominal interest rates under each capital structure hypothesis. With MM theory, our model predicts di_D/d_π value consistent with empirically observed ranges. With Miller theory, the predictions are inaccurate. With DeAngelo-Masulis, the predictions vary widely; the midpoint of the predicted range is less accurate than with Miller theory.     

Self-appraisal,life goals,and national culture: An asian-western comparison

Positive leniency in self-appraisal was studied for its cross-cultural properties in three Asian and three Western countries. Nine hundred and eighty-three mid-level bank managers were surveyed by indigenous field workers to measure self-appraisal, life goals, and other demographic variables. Positive leniency was found in the three Western countries but not in the three Asian countries while controlling for size and type of organisation, managerial level and several demographics including sex, age, education and religious preference. Our measure of self-appraisal also served as a measure of organisational success. The relationship between success and work motivation was then examined for its cross-cultural properties. Organisational success and work motivation correlated across the six countries although the intensity of work motivation varied. The importance of work and of family were highly valued in all six countries as well.     

Commentary on “an empirical study of moral reasoning among managers”

Managerial reasoning is characteristic of a care-relationship ethics:

1. If a corporation provides certain community values to corporate members not reducible to their self-interested economic or professional objectives;
2. If such values are generated by a division of labor based on interdependence, reciprocity and concern for another's self-realization;
3. If it's based on promoting an ethical corporate self independent of its economic value.

Such an ethic is appropriate, given employees' tremendous personal contributions, the unique position of private industry to provide distinctive resources without committing extensive social resources, and due to its potential for reducing managerial moral fragmentation and hypocrisy.     

Losses due to manipulation of social choice rules

In a companion paper, “Gains from Manipulating Social Choice Rules,” we analyzed the incentive to manipulate by considering the maximum number of ranks someone can gain in their preference ordering by manipulation. This paper treats the number of ranks someone else can lose due to manipulation. We find large classes of rules where that loss is very large, a few rules where the loss can be significantly smaller, and even some rules where no one ever loses—even though manipulation will take place.     

The symbolic interaction metaphor and leisure: critical challenges

In 1983, Leisure Identities and Interactions was published in an attempt to provide an alternative to structure-functional sociological premises, theory, and research methods. This symbolic-interaction project focused on situated meanings of behavior, proposed identity as a link between the personal and the social, defined leisure as a constructed process, and gave attention to actual social contexts including role sets and face-to-face interaction. In the decade since, at least three major developments in the study of leisure have challenged the LII project: attention to gender issues, British cultural studies, and social construction approaches. Implications of these challenges are examined and revisions of the project suggested.     

Extremely thin models in print ads: The dark sides

To appeal to consumers as social beings, advertisers include social settings and human images in commercial messages. Extant empirical research shows that thin models are perceived as more attractive and that the use of attractive models results in higher ad effectiveness. However, this study offers empirical evidence of ‘dark sides’ of extremely thin models, such that they harm advertising performance. The negative effects of extremely thin models stem from their influence on consumers' psychological well-being, as well as their ethical judgements of the advertisement. Respondents in this study also regard an extremely thin model as less attractive than a more average model. These results suggest that organizations should reconsider the portrayal of extremely thin models in their promotional messages and, more generally, consider consumer ethics when developing marketing communication messages.     

Classroom Games: The Allocation of Renewable Resources Under Different Property Rights and Regulation Schemes

The authors describe a renewable resource allocation game designed to stimulate students' interest in and understanding of market failure associated with open-access types of resource use. They also use the game to discuss the advantages and disadvantages of various property rights and regulation schemes. Because this exercise demonstrates the power of unregulated and regulated economic incentives, many types of students may benefit from this game, including undergraduates enrolled in the standard introductory and in more advanced microeconomics classes, as well as courses in environmental economics and natural resource economics. This game was specifically designed so that noneconomics majors in natural resource management and environmental courses could also benefit.     

Accommodating Religious Expression in the Workplace

Religious expression in the workplace has been gaining more prominence and attention with the increasing diversity of the population. Employers are legally required to reasonably accommodate the religious practices and beliefs of their employees. This article will examine the most common types of religious expression in the workplace and will discuss the extent of the legal obligation of an employer to accommodate those expressions.