The impact of diversity and equality management on firm performance: Beyond high performance work systems

This article demonstrates that a diversity and equality management system (DEMS) contributes to firm performance beyond the effects of a traditional high‐performance work system (HPWS), which consists of bundles of work practices and policies used extensively in high‐performing firms. A DEMS typically includes diversity training and monitoring recruitment, pay, and promotion across minority or other disadvantaged groups. Our analysis of quantitative data from service and manufacturing organizations in Ireland confirms that HPWS practices are associated with positive business performance and finds specifically that DEMS practices are positively associated with higher labor productivity and workforce innovation and lower voluntary employee turnover. © 2010 Wiley Periodicals, Inc.     

Assertiveness Bias in Gender Ethics Research: Why Women Deserve the Benefit of the Doubt

Gender is one of the most researched and contentious topics in consumer ethics research. It is common for researchers of gender studies to presume that women are more ethical than men because of their reputation for having a selfless, sensitive nature. Nevertheless, we found evidence that women behaved less ethically than men in two field experiments testing a passive form of unethical behavior. Women benefited to a larger extent from a cashier miscalculating the bill in their favor than men. However, in three follow-up studies, we found that women did not necessarily intend to benefit at the expense of someone else. Women are less prone to speak up to a cashier than men are, even when the mistake is made in their disfavor. These results reveal that gender differences in assertiveness affect differences in unethical behavior.     

Individual versus Village Lending: Evidence from Montenegro

This paper analyzes differences in loan performance across two Montenegrin microfinance institutions with different lending techniques using a sample of individuals borrowing from both institutions. We make use of administrative data from both institutions over the period 2004–2013. While one institution relies on village associations for screening and monitoring of borrowers, the other institution uses the individual liability approach. We find that the likelihood to go into arrears is higher for the institution with a strictly individual lending technique, while the likelihood of going into arrears over 30 days is higher for the institution working with village associations. These results are robust to a variety of additional tests, including different definitions of arrears and subsamples. Our findings suggest that the institution using an individual lending technique provides certain flexibility to its clients, while the village‐based microfinance institution might face more strategic default behavior. We provide evidence that once a borrower is in arrears, (s)he is more likely to stay in arrears for more than 30 days in branches with a higher share of borrowers in arrears and in the village‐based lender. Our findings provide evidence that a village‐ or group‐based lending technique is not necessarily superior to the individual lending technique in terms of loan performance.     

Financial development,institutional quality and maximizing-growth trade-off in government finance

This paper studies monetary and fiscal policies in an endogenous growth model with transaction costs. We show that the relation between long-run economic growth and both monetary and fiscal policies is subject to threshold effects, a result that gives account of a number of recent empirical findings. Furthermore, the model shows that, to finance public expenditures, growth-maximizing governments must choose relatively high seigniorage (respectively income taxation), if “institutional quality” and “financial development” indicators are low (respectively high). Thus, our model may explain why some governments resort to seigniorage and inflationary finance, and others rather resort to high tax rates, as a result of growth-maximizing strategies in different structural environments (notably concerning institutional and financial development contexts). In addition, the model allows examining how the optimal mix of government finance changes in response to different public debt contexts. A short empirical section confirms our theoretical results.     

Die Implementierung von Prüfungsausschüssen/ Audit Committees des Aufsichtsrats/Board of Directors mit unabhängigen und finanzkompetenten Mitgliedern

The agency- and stewardship theory attach great importance to the implementation of audit committees in the one tier- and two tier system. The mentioned theories can explain the corporate governance function of audit committees. In order to strengthen corporate governance, the job specification emphasises the independence and financial expertise of the committee’s members. The present article provides an overview of the historical development of audit committees and their normative affiliation in the German stock corporation law (two tier system). Moreover, their role as representatives of the one tier system in the US American capital market is being addressed. The results suggest more restrictive standards regarding the implementation and job specification of the audit committee at the US stock exchange (Sarbanes Oxley Act; New York Stock Exchange [NYSE], National Association of Securities Dealers Automated Quotations [NASDAQ]) than in the German stock corporation law (including the German corporate governance code). In addition to the normative analysis, the present paper provides a summary of results of existing, primarily US American empirical research with regard to the influence of audit committees on selected corporate governance indicators. The results show that the vast majority of the respective studies prove a significant correlation between audit committees and the restriction of earnings management, the identification and prevention of management failures and fraud with regard to the balance sheet, the external management reporting as well as the quality of the external audit. As a consequence of differing corporate governance systems, the results of the US American corporate governance studies can be applied only to a limited extend to the German two tier system. Monitoring by the capital market is even lower in Germany. In support of the respective empirical results and in order to strengthen corporate governance in the one tier system, future research is needed regarding the implementation of audit committees in the German two tier system.     

Sovereign Geopolitics? – Uncovering the “Sovereignty Paradox”

This paper reconsiders the importance of the sovereign state in contemporary geopolitics. The role of the state in an era of globalisation and devolution is a concern that has gained considerable attention in recent geographical scholarship. What has received less attention is how the state has historically functioned as a device that conflated the linked concerns of sovereignty and territoriality. The authors argue that there exist a number of “sovereignty paradoxes” that inhibit the interdisciplinary analysis of the interrelations between sovereignty, territoriality, and state power. Thus, reconsidering sovereignty and territoriality informs both how the state emerged as an important unit of geographical analysis historically, and why the state has become such a problematic concept in contemporary geopolitics. This work has implications for understanding popular struggles over civil liberties, foreign policy, and justice for indigenous peoples.     

Resident perceptions of social–ecological resilience and the sustainability of community-based tourism development in the Commonwealth of Dominica

Despite major investments in community-based tourism to diversify economies, reduce poverty and improve life quality in the Caribbean, little is known about what conditions lead to resilience and sustainability. Sustainability from a resilience theory perspective is the likelihood an existing system of resource use will persist indefinitely without a decline in social and natural resource bases. Undertaking activities to enhance resilience and sustainability improves a system's ability to persevere, adapt and learn to meet challenges from unanticipated economic, political or natural events. This study investigated six communities in the Commonwealth of Dominica, all part of a seven-year community tourism program, and examined residents' perceptions of the social, institutional, economic and ecological resilience of their community, and therefore the resilience and sustainability of community tourism development. It used a new scale using eight steps suggested by Devellis' scale development methodology. Data indicated moderate to low resilience in all four domains across the communities. This suggests that communities should invest in strengthening social bonds, developing capacity in local institutions, in diversifying the tourism product and controlling infrastructure development. Indicators measuring trust, networks, local control, flexible governance, leakage prevention and controlled infrastructure development emerged as important in assessing social–ecological resilience and sustainability.     

Enhancing the Accessibility of Accounting and Business Archives: The Role of Technology in Informing Research in Accounting and Business

The application of advanced digitization technologies to accounting and business archives has created new opportunities for accounting and business historians. The joint American Accounting Association and European Accounting Association Task Force (2006–2010) that examined digitization confirmed this. This paper explores these opportunities, along with some attendant challenges and cautions, with reference to the digitization of two significant archives located in Australia. The first is the archive of CPA Australia, a professional accounting association that has its beginnings in 1886 and which today has over 132,000 members. The second is the archive accumulated by the pre‐eminent accounting scholar Raymond Chambers during his long and extraordinarily productive tenure at the University of Sydney. Studies of surviving business records, biography and institutional history provide examples of scholarship that is enabled by digitization technology and which has the capacity to inform contemporary issues and debates.     

Regional welfare loss meaures of the 1973 oil embargo: a numerical methods approach

A simple exercise of time-series analysis shows that the presence of the phonomenon of temporal aggregation in quarterly consumption data can substantially alter the empirical inference about Hall' mocel of consumption behaviour. This fact has received almost no attention in the econometric research in this field.