Life satisfaction and self-employment in different types of occupations

In this research, we investigate whether a positive relationship between life satisfaction and self-employment (versus paid employment) exists while simultaneously considering two occupational dimensions: white-collar versus blue-collar work and high-skilled versus low-skilled work. Using Eurobarometer data for a large number of European countries (2008–2012), our findings confirm that self-employed workers are more satisfied with their lives than paid employees are. A life satisfaction premium is also found when the self-employed and paid employees are compared within similar occupations in terms of collar type and skill level. Finally, self-employment can help to overcome low life satisfaction scores associated with blue-collar and low-skilled work.     

Understanding hinterland service integration by shipping lines and terminal operators: a theoretical and empirical analysis

In the present competitive environment of ports, the key determinant in port competition is the ability of a port to be integrated into the local maritime and hinterland transportation chain. Creating effective integrated hinterland chains requires the coordination of several actors both in port and the hinterland. By making use of insights from Transaction Cost Economics and Resource-based View, the paper helps to understand why and how shipping lines and terminal operating companies enlarge their scope in intermodal transport and in inland terminals. The paper discusses a number of cases from the Hamburg–Le Havre range, where shipping lines and terminal operating companies have changed their scope of activities in ports and hinterland networks. After the theoretical and empirical analysis the papers draws conclusions on the explanatory power of the theories in understanding hinterland service integration by shipping lines and terminal operators.     

Columbia Law School Roundtable on A Governance Research Agenda for the Academy

Since Jensen and Meckling's formulation of the theory of “agency costs” in 1976, corporate finance and governance scholars have produced a large body of research that attempts to identify the most important features and practices of effective corporate governance systems. But for all the research that has been done in the past 40 years, many practitioners continue to see a disconnect between theory and practice, between the questions researched and the questions that need to be answered. In this roundtable, Martijn Cremers begins by challenging the conventional view that limiting “agency costs” is the main challenge confronted by boards of directors in representing shareholder interests and, hence, the proper focus of most governance scholarship. Especially in today's economy, with the high values assigned to growth companies, the most important function of corporate governance may instead be to overcome the problem of American “short termism” that he attributes to “inadequate shareholder commitment to long‐term cooperation.” And he buttresses his argument with the findings of his own recent research suggesting that obstacles to the workings of the corporate control market like staggered boards and supermajority voting requirements may actually improve long‐run corporate performance by lengthening the decision‐making horizon of boards and the managements they supervise. Vik Khanna discusses Indian Corporate Social Responsibility (CSR) spending and its effects in light of a recent law requiring Indian companies of a certain size to devote at least 2% of their after‐tax profit to CSR initiatives. One unintended effect of this mandate, which took effect in 2010, was that all Indian companies that were spending more than the prescribed 2% of profits cut their expenditure back to that minimum, suggesting that CSR and advertising are substitutes to some extent, and that such legal mandates can discourage CSR spending by early adapters or “leaders.” Nevertheless, Khanna also found evidence of social norms developing in support of CSR, including a spreading perception that such spending can help some companies achieve strategic goals. Jeff Gordon closes by arguing that, to the extent investors are short‐sighted, their short‐sightedness is likely to be justified by their recognition that public company directors have neither the information nor the incentives to do an effective job of monitoring corporate managements. The best solution to the problems with U.S. corporate governance is to replace today's “thinly informed” directors with “activist” directors who more closely resemble the directors of private‐equity owned firms. Such directors would spend far more time with, and be much more knowledgeable about, corporate management and operations—and they would have much more of their personal wealth at stake in the form of company stock.     

Stakeholders’ Information Needs,Cost System Design,and Cost System Effectiveness in Dutch Local Government

This study examines the relationships between stakeholders’ information needs, cost system design, and cost system effectiveness in local government, using a dataset of survey responses from 71 Dutch municipalities. Three cost system design characteristics are examined: (a) the complexity and (b) the inclusiveness of cost systems, and (c) their understandability for non‐financial internal users. These characteristics are shown to be only partly related to each other, and to differ in the extent to which they are related to the information needs of internal and external stakeholders, as well as to three cost system effectiveness characteristics.     

The relationship between product diversity, usage of advanced manufacturing technologies and activity-based costing adoption

This paper examines the associations between product diversity, usage of advanced manufacturing technologies (AMT) and activity-based costing (ABC) adoption. Theory strongly suggests that product diversity is a major determinant of the demand for ABC systems. To date, the results of empirical research on the relationship between product diversity and ABC adoption have generally been inconclusive, however, suggesting that there either may be no strong relationship, or that methodological issues may have prevented researchers from consistently finding it. Using a dataset of survey responses from 191 Dutch, medium-sized manufacturing firms, this paper re-examines the relationship between product diversity and ABC adoption. Improving upon the measurement of product diversity and distinguishing between ABC adoption and use, it examines whether the relationship is curvilinear (inverted U-shaped) and/or moderated by usage of AMT. The paper contributes to the literature by showing that, consistent with the underlying theory, product diversity, on average, is positively related to both ABC adoption and ABC use, but also that these relationships are indeed inverted U-shaped and that the relationship with ABC use is negatively moderated by usage of AMT.     

New development: Breaking out or hanging on? Internal audit in government

Public audit is in transition. On the one hand, professional organizations claim it is time ‘to break out’ and develop new roles for auditors that ‘add more value’. On the other hand, critics are concerned about public sector accountability deficits necessitating more control and urging auditors to hold on to their traditional role. This article discusses tensions and relevance between these positions and their implications for auditing in government. The article will help policy-makers in their strategic decision-making on the role and focus of internal audit in government.     

The Governance of Corporate Sustainability: Empirical Insights into the Development,Leadership and Implementation of Responsible Business Strategy

This article explores how corporate governance processes and structures are being used in large Australian companies to develop, lead and implement corporate responsibility strategies. It presents an empirical analysis of the governance of sustainability in fifty large listed companies based on each company’s disclosures in annual and sustainability reports. We find that significant progress is being made by large listed Australian companies towards integrating sustainability into core business operations. There is evidence of leadership structures being put in place to ensure that board and senior management are involved in sustainability strategy development and are then incentivised to monitor and ensure implementation of that strategy through financial rewards. There is evidence of a willingness to engage and communicate clearly the results of these strategies to interested stakeholders. Overall, there appears to be a developing acceptance amongst large corporations that efforts towards improved corporate sustainability are not only expected but are of value to the business. We suggest that this is evidence of a managerial shift away from an orthodox shareholder primacy understanding of the corporation towards a more enlightened shareholder value approach, often encompassing a stakeholder-orientated view of business strategy. However, strong underlying tensions remain due to the insistent market emphasis on shareholder value.     

Private transaction costs of participation in water quality improvement programs for Australia's Great Barrier Reef: Extent,causes and policy implications

The direct private cost to landholders of participating in programs that result in improved farming activities (IFAs) is generally well understood. However, the private indirect or transaction costs, such as the cost of a landholder's time and the expense to learn about IFAs and apply for assistance to implement these changes on‐farm, are not so well understood. Where these have been studied, they have been shown to be extensive. We assess the extent and causes of private transaction costs incurred by sugarcane growers participating in the Australian Government's Reef Rescue scheme which pays farmers to adopt environmentally beneficial farm management practices. Utilising a mail‐out‐mail‐back survey of 110 growers, we found that the average total transaction cost per farm of participating in the program was AU$8389. The average total transaction costs per farm as a percentage of the average funding provided was 38 per cent. We also assessed which type of improved farming activity (soil, nutrient, pest or water management) generated the greatest transaction costs and how landholder characteristics such as bounded rationality, opportunism and social connection impacted on the extent of transaction costs.     

Modeling CLV: A test of competing models in the insurance industry

Customer Lifetime Value (CLV) is one of the key metrics in marketing and is considered an important segmentation base. This paper studies the capabilities of a range of models to predict CLV in the insurance industry. The simplest models can be constructed at the customer relationship level, i.e. aggregated across all services. The more complex models focus on the individual services, paying explicit attention to cross buying, but also retention. The models build on a plethora of approaches used in the existing literature and include a status quo model, a Tobit II model, univariate and multivariate choice models, and duration models. For all models, CLV for each customer is computed for a four-year time horizon. We find that the simple models perform well. The more complex models are expected to better capture the richness of relationship development. Surprisingly, this does not lead to substantially better CLV predictions.