CAPM option pricing

This paper extends the option pricing equations of [Black and Scholes, 1973] , [Jarrow and Madan, 1997] and [Husmann and Stephan, 2007] . In particular, we show that the length of the individual planning horizon is a determinant of an option’s value. The derived pricing equations can be presented in terms of the Black and Scholes [1973. Journal of Political Economy 81, 637–654] option values which ensures an easy application in practice.     

Marketing goes Wall Street

Literaturhinweise

Marketing goes Wall Street     

Managing External Information in Manufacturing Firms: The Impact on Innovation Performance*

Drawing upon a sample of 206 medium‐sized manufacturing firms, this article investigates the extent to which management of external information is associated with innovation performance. The overall purpose of the article is to examine whether or not those organizations that are better at managing external information are also those that are the better innovators. The research strategy used was a survey, and data were collected by means of mail questionnaires (with a 62.4% response rate). A multiple regression analysis was used for hypothesis testing. The results show that scanning the technological sector of the environment was positively associated with innovation performance, while scanning customers, suppliers, and competitors proved to be negatively correlated with innovation performance. Cross‐functional integration in the form of collaboration also proved significantly correlated with innovation performance, while interaction showed no such relationship. Further, decision‐making based on information from the industry environment correlated significantly with innovation performance. Research and managerial implications of these findings are presented and are discussed.     

Nuclear future - A case of method bias?

This study points out major errors in an article published in this journal by Nitta and Yoda [1] titled, “Challenging the Human Crisis: ‘The Trilemma.’” Nitta and Yoda forecast a nuclear future based on assumptions of a high energy demand, scarce oil reserves, and a low potential of renewable energy sources. The validity of these assumptions is analyzed, and they are found inaccurate. Nitta and Yoda also use different forecasting techniques for different technologies that encourage the prospects of nuclear power and discourage the future of solar energy. No arguments are provided for the different choices of forecasting methods. When discussing future alternatives, the approach taken is of vital importance, because the method itself often affects the result.     

Decentralization and Reliance on the Controllability Principle in the Public Sector

Despite the growing devolution of budgetary responsibility in public sector organizations, little attention has been paid to the key notion of the controllability principle in this context. Drawing on neo-institutional sociology, this paper explores the relationship between decentralization of decision-making authority and reliance on the controllability principle (RCP) in the devolution of budgetary responsibility to the middle management level of a large Norwegian hospital. The results of a questionnaire survey only reveal a weak positive relationship between decentralization and RCP. Qualitative data are then used to probe further into the institutional factors impinging on this relationship, which have not been widely discussed in previous research. Our findings suggest that the possibilities of decentralization and thus enhancing managers' control of major cost items, such as labour-related expenses, are constrained by the actions of external as well as internal constituencies. RCP is also influenced by institutionally induced allocation practices, traditionally contributing to subjective, ex-post adjustments of budgetary results but more recently manifested by the adoption of more objective allocations to demonstrate compliance with the cost containment ethos.     

Institutional and negotiated order perspectives on cost allocations: The case of the Swedish university sector

Abstract

A growing number of studies of the issue of cost allocations based on different institutional theories have recently emerged in the management accounting literature. These provide an alternative to efficiency-centred explanations of the evolution of cost allocation practices and have increasingly drawn attention to the roles of competing interests, power, agency and politics in the more or less continuous (re-)construction of cost allocation rules. This paper extends this literature by combining an institutional perspective with insights gleaned from the negotiated order (NO) literature, using recent developments in the Swedish university sector as an empirical illustration. This draws attention to the role of negotiations in the political regulation of costing in a highly institutionalised environment. Adopting a comparative, embedded case study design we contrast three recent attempts to re-negotiate cost allocation rules with varying outcomes. It is concluded that the role of institutional factors as well as socio-political negotiations in framing the ambiguity associated with cost allocations is important in explaining why and how change in cost allocation rules is mobilised or diverted. Especially, the NO perspective enriches institutional explanations of the stabilising role of power in this respect by drawing attention to how power relationships and coalitions of interests are formed around the specific issues at stake. This leads to a more dynamic and less atomistic conceptualisation of power and agency than in much prior research on the institutionalisation of accounting.     

The societal relevance of management accounting: An introduction to the special issue

This essay introduces the special issue of Accounting and Business Research exploring the societal relevance of management accounting and locates the individual contributions within this research agenda. In contrast to prevailing, managerialist conceptions of relevance, the discussion is guided by an over-riding ambition to turn management accounting research “inside out” to examine the effects of management accounting practices on a broader range of constituencies and interests in society and the formation of such practices beyond individual organisations. I start by charting the development of extant and emerging debates on the relevance of management accounting research and practice and then outline some pertinent research themes worthy of further exploration. In doing so, I pay particular attention to emerging research illustrating how management accounting becomes implicated in the external regulation and governance of organisations, the shaping of markets and the wider, societal consequences of such processes. I also discuss some theoretical and methodological implications of exploring such topics.     

Antecedents and characteristics of informal relation-based networks in Korea: Yongo,Yonjul and Inmaek

Although there has been a large amount written about Chinese Guanxi networks, a detailed debate concerning Korean informal relation-based networks is by comparison under-represented in the international business literature. This paper introduces and distinguishes between three forms of informal relation-based networks in Korea: (1) Yongo, (2) Yonjul and (3) Inmaek. Inmaek describes a social network in general, while Yongo networks draw primarily on existing kinship-, university/school- and regional origin-based ties. Contrary to Yongo ties, Yonjul ties exist for a purpose, often to secure personal gains and benefits. In all three forms, kinship-, university/school- and regional origin-based ties play primary, but not exclusive, roles. A better understanding of Korean informal relation-based networks helps contribute to the advancement of knowledge about the anatomy of informal institution, as well as to the growing field of indigenous management research, by identifying and analysing an influential contextual factor in Korea. In addition, it underlines important implications for management practices in Korea.