Distinguishing supplier reputation from trust in buyer-supplier relationships

We argue that a firm's reputation (i.e., central, enduring, and distinctive corporate associations held by individuals outside of an organization), although under-researched relative to trust, is more important than trust in impacting buyer-supplier relationships. Our conceptualization draws on theories and extant research related to transaction cost economics, information economics, and interfirm trust. The constructs of trust and reputation are distinguished and their relative impacts on relationship commitment and willingness to invest in the future of the relationship are examined. Suggestive empirical evidence is provided from a survey of industrial buyers, and implications and specific directions for future research are discussed.     

Building An Intelligent Business Process Reengineering System: A Case-Based Approach

The Intelligent Business Process Reengineering System (IBPRS) is an interactive expert system. This paper presents a framework for IBPRS which utilizes case-based planning and problem-solving techniques in identifying requirements and problems and in searching for alternative opportunities from previous experiences (cases). IBPRS comprises two major components: Planner and Constructor. The IBPRS Planner's problem solving consists of four stages: problem formulation, case retrieval, case refinement, and evaluation. In generating business process reengineering (BPR) alternatives, IBPRS identifies appropriate case(s) among previous BPR cases that are represented in the form of process model(s) using search algorithms and other rules stored in the Planner's knowledge base. In evaluating the generated BPR alternatives, various simulation models and economic analyses are used. The best BPR alternative is then selected through a multi-attribute criteria decision analysis. In the refinement stage, IBPRS employs case-based substitution method for case adaptation and refinement. The Planner Knowledge Base and the Case Repository are updated as new knowledge develops and new cases are built and entered into the system. The main benefits of IBPRS is to facilitate BPR efforts by identifying problems, evaluating alternatives, and choosing the most appropriate BPR alternative.     

Ubiquitous computing and its effects on small businesses

Much of the previous literature on ubiquitous computing (UbiComp) has been limited to case studies, reporting innovative practices of specific technologies (e.g., RFID) and social issues. There is a general paucity of research on strategic application of UbiComp, especially to small businesses. To address this issue, this study provides a broad overview of the current practices of UbiComp in leading countries and presents possible future directions. Then, the effects of UbiComp on small businesses are discussed. Through a cross-national comparative analysis, we present four strategies to provide some guidance to the countries that are currently considering entering into the UbiComp race.     

The effects of disclosure type and audit committee expertise on Chief Audit Executives’ tolerance for financial misstatements

This study involves an experiment where 73 Chief Audit Executives and deputy Chief Audit Executives determine the amount of adjustment required to correct a misstatement. We manipulate the financial reporting location of the misstatement (recognized vs. disclosed) and the level of audit committee expertise (high vs. low). The results indicate that financial reporting location has significant effects on internal auditors’ decisions to correct misstatements. Specifically, internal auditors are more willing to waive disclosed misstatements relative to recognized misstatements. Contrary to expectations, the results do not indicate that increased audit committee expertise and associated increases in audit committee members’ perceived powers cause internal auditors to be less willing to waive misstatements.     

An institutional and policy framework to foster integrated rice–duck farming in Asian developing countries

Asia has accounted for the vast majority of the world's rice and meat-duck production. In the integrated rice–duck farming (IRDF) system, ducklings are released into rice paddies in order to maximize the use of renewable resources in a closed-cycle flow of nutrients during rice vegetation periods. Rice–duck farming used to be widely adopted in tropical and subtropical eastern Asian countries, but has remained unpopular in the wake of prevailing agricultural productivism characterized by specialization, intensification, mechanization and excessive dependence on agrochemicals. This paper sets out institutional pathways that can redevelop IRDF in Asia. These include organic food certification systems, organic farmers' cooperatives, community-wide organic farming, localized technical extension and educational services, and between-farm rice–duck integration. A comprehensive package of these institutional tools would further expedite the expansion of IRDF particularly in low-income Southeast Asia where the rice or duck farming landscape is overwhelmingly dominated by smallholders.     

Decompositions of corn price effects: implications for feed grain demand and livestock supply

This article examines how corn prices affect the demand for feed grains and the supply of livestock outputs. The differential approach to the theory of the multiproduct firm is employed to examine ex ante decisions about feed grain demand and livestock supply. The estimation results suggest that livestock producers have little flexibility in adjusting the demand for corn in response to an increase in corn prices. The substitutable relationship between corn and distillers’ grains contributes to alleviating pressures on feed costs in response to high corn prices. In addition, the estimation results highlight that the composition of livestock supply can be altered by changes in livestock prices. On the basis of the estimated elasticities, the decompositions of profit‐maximizing input demand are conducted to examine the effects of changes in corn prices on feed grain demand and livestock supply. The decomposition results reveal that an increase in corn prices reduces corn demand but raises the demand for distillers’ grains mainly due to the substitution effects of corn price changes. The decomposition results also show that an increase in the price of corn reduces cattle supply but raises the supply of chicken and pork due to the output relationships in supply.     

The effect of financial reporting quality on CEO compensation structure: Evidence from accounting comparability

This study examines the effect of accounting comparability on the design of CEO compensation structure. After controlling for firm-specific attributes, we find that accounting comparability is positively associated with CEO equity-based compensation intensity and pay-performance sensitivity. This suggests that the improved comparability increases the usefulness of equity-based compensation and a firm is willing to offer more equity-based compensation contracts to CEOs and increase their pay-performance sensitivity. Further, we find that the impact of comparability on the CEO’s compensation contract increases with information asymmetry, which is consistent with the notion that accounting comparability is a quality of financial reporting that facilitates the use of equity-based compensation in a poor information environment. Our analysis also reveals that the effect of accounting comparability on CEO compensation structure is greater when a firm’s corporate governance is strong, consistent with the complementary relation between comparability and the exiting corporate governance in determining CEO compensation schemes. Overall, our evidence suggests that firms utilize more equity-based compensation as a proportion of total compensation under greater accounting comparability and enhance the alignment between equity-based compensation and firm performance.     

A test of risk arbitrage profitability

We explore the performance of risk arbitrage involving three types of merger offers: cash tender, stock swap, and collar offers for the period between 1990 and 2000. Our result reveals that risk arbitrage for a successful stock offer generates higher returns than a successful cash offer. This finding implies that the profitability of risk arbitrage depends on the level of asymmetric information associated with the payment method. We also find that the beta of typical risk arbitrage positions/portfolios is heavily influenced by the payment method and market conditions.     

A Preconceived Formula for Sovietization: The Communist Takeover of North Korea

Abstract

This article examines an endogeneity issue within the Optimum Currency Area (OCA) theory. According to the cost-benefit analysis, we found that there are the upper and the lower bounds in the degree of monetary integration for a monetary union to be created. We also found that a country may secede from the monetary union, depending on its degree of integration. A country may also secede when production specialization is facilitated with monetary integration within a framework of the “OCA line”. We also consider the endogeneity of the “OCA Index”, and applied our analysis to the optimum number of world currencies.