Investor Protection and Governance in the Valuation of Emerging Markets Investments

The combination of ineffective corporate governance at the company level and an uncertain legal and regulatory environment can significantly reduce the prices investors are willing to pay when investing in companies in emerging markets. The authors report the findings of their recent survey that asks investment professionals to compare the value of a hypothetical Australian company with that of its identical counterparts located in five emerging markets: Malaysia, Mexico, Saudi Arabia, South Africa, and Iran. The responding investors said they would value the emerging markets investments at discounts from the value of the Australian company that ranged from a low of 13.5% for its Malaysian counterpart to 51.2% for the Iranian company. Moreover, they indicated they would require costs of equity for these investments that were consistent with even larger valuation discounts. The investors' responses to the survey also suggest that corporate governance is especially important in countries with weaker investor protection. Well‐governed companies located in these countries enjoy significant value premiums that can partly offset the negative effect of the poor institutional environments, which suggests there may be a significant payoff for investors that succeed in improving the governance of the companies they invest in.     

Financialization,Shareholder Orientation and the Cash Holdings of US Corporations

Growth in the cash holdings of US nonfinancial corporations (NFCs) has received considerable attention in recent years. These cash holdings constitute a primary component of the growth in firm-level financial asset holdings often highlighted in analyses of the ‘financialization’ of NFCs. In this article, I use a panel of US corporations to empirically analyze two links between corporate cash holdings and the literature on financialization. First, I find a small but positive relationship between cash holdings and shareholder value ideology among large corporations. I capture the growing entrenchment of shareholder ideology using average industry-level stock repurchases, to proxy for industry-level norms encouraging managers to target stock price-based indicators of firm performance. Second, I find a positive relationship between a firm's cash holdings and a measure of the differential it earns between interest income and expense. Given that cash is classified with short-term marketable (and, therefore, interest-bearing) securities on firm balance sheets, this result lends empirical support to the hypothesis that traditionally nonfinancial firms are increasingly engaged in borrowing and lending for profit.     

Minimax invariant estimation of a continuous distribution function under entropy loss

For the invariant decision problem of estimating a continuous distribution function F with two entropy loss functions, it is proved that the best invariant estimators d ₀ exist and are the same as the best invariant estimator of a continuous distribution function under the squared error loss function L (F, d)=∫|F (t) −d (t) |² dF (t). They are minimax for any sample size n≥1.     

Social identification: linking high performance work systems,psychological empowerment and patient care

This paper examines the mediating effects of social identification on the relationship between high performance work systems (HPWS) and psychological empowerment and the direct relationship between psychological empowerment and clinician perceptions of quality of patient care. We use structural equation modelling on a sample of 254 health professionals from a large regional hospital in Australia. Results demonstrate, first, a strong effect of HPWS on social identification. Second, social identification mediates the relationship between HPWS and psychological empowerment and, third, psychological empowerment has a strong effect on clinician perceptions of quality of patient care. Implications are drawn for management theory and hospital managers.     

软件巨头的困惑

当SAP AG的首席执行长孔翰宁（Henning Kagermann）最近向投资者和分析师阐述这家德国公司的策略时．他可能将要解释一个令人难以释杯的矛盾问题：在企业软件的需求不断增长之际．但为什么SAP这样的大公司却无法实现其收益目标呢？     

Gender schematicity and preference for gender-typed products

Two experiments demonstrated that subjects preferred products described in terms congruent with their self-perceived schema for masculinity or femininity. In Experiment 1, male subjects were classified as highly masculine or not so masculine on the basis of their self-ratings. Those who were highly masculine preferred a product described in very masculine terms and those who were not so masculine preferred a product described in feminine terms. In Experiment 2, female subjects were classified as highly feminine or not so feminine on the basis of self-ratings. Highly feminine subjects liked a product best when it was described in highly feminine terms, next most when it was described as having both masculine and feminine attributes, and least when it was depicted as totally masculine. Subjects who saw themselves as less feminine showed the opposite pattern of preference. These effects did not appear to be mediated by differential processing of schema-consistent information.     

Trust orientations in the organic food distribution channels: A comparative study of the Canadian and French markets

The objectives of this research are to (i) identify supply side factors that determine trust/mistrust in OF products, and (ii) determine the distribution channel strategies to increase trust in OF products. A total of 80 individual in-depth interviews were conducted in Canada and France with managers from superstores, specialty stores, farmers, markets, producers and certification bodies. Results show a clear distinction between the Canadian and French OF distribution structures in terms of trust. Consequently, distributors have to adapt their strategies and tools in order to enhance trust in OF, in their distribution channel and in the overall food supply chain.     

Sadness bright as glass: the acceptance of emotionally sensitive radical innovation

Abstract

The existing literature acknowledges the importance of emotions in consumer decision-making and the challenges of radical innovation adoption; however, the literature seldom combines these two streams. The purpose of this study was to analyse potential adopters’ considerations concerning an innovation that is targeted at intense negative emotions. Choosing a case-study strategy enabled us to focus on extremely negative emotions (related to death) and the acceptance of a radical innovation (a memorial stone made of glass). In this study, we applied a longitudinal mixed-methods approach. Data were collected via interviews with consumers (357 respondents), the entrepreneur and her employee. Findings show that an emotionally sensitive radical innovation evokes more intense emotions and emotional ambivalence among consumers. Its acceptance also seems to depend on the age and gender of the customers and requires cultural change. A lengthy adoption process seems to be characteristic of emotionally intensive innovation. This study has implications for managers facing the challenge of creating new markets for a radical innovation that involves extreme emotions on the part of consumers. Theoretically, the study contributes to both innovation adoption and consumer decision-making literature.     

Estimating road traffic mortality more accurately: use of the capture-recapture method in the West Azarbaijan province of Iran

The study estimates the rate of fatal road traffic injuries (RTIs) by population and road-users group in one Iranian province. The capture - recapture method was employed, using both the death register and the forensic medicine register over one year. They recorded totals of 669 and 665 RTIs respectively, giving a non-overlapping number of 897 cases. An estimate of 1018 fatalities occurred, at rates of 34 per 100,000 of the population for all road users aggregated, 10 per 100,000 for pedestrians and 25 per 100,000 for other road users. Coverage was somewhat better for victims less than 15 years of age, and also for males. The method showed 121 under-reported cases in both sources; however, it can help Iranian policy-makers to produce a good estimation of fatal RTIs number each year, when following up current RTIs-prevention programmes. Yet, given that each registry operates separately, optimum coverage will only be obtained when both sources are integrated and work together.     

Staff Attitudes to Talking Openly About Ethical Dilemmas: The Role of Business Ethics Conceptions and Trust

To ensure ethical employee behavior, companies often utilize several forms of mostly one-way communication such as codes of conduct. The extent to which these efforts, in addition to informing about the company stance on ethics, are able to positively influence behavior is disputed. In contrast, research on business ethics communication and behavior indicates a relatively clear, positive link between open workplace dialogue about ethical issues and ethical conduct. In this article, I therefore address the question: What influences employee attitudes to talking openly about ethical issues? Answers are proposed on the basis of focus group interviews with staff at the Denmark and Brazil affiliates of the global healthcare company Novo Nordisk. It was found that interest in discussing ethical issues was influenced by two main factors: employee conceptualizations of business ethics and the level of inter-collegial trust, credibility, and confidence. In this article, by examining these phenomena, I aim at providing insight that can both inform scholars in these fields as well as help managers in their attempts to promote open workplace dialogue about ethical issues.