Correlates of organizational effectiveness: A multilevel analysis of a multidimensional outcome

This paper explores the relationship between environmental scarcity, organization size, and board composition with measures of financial and social performance. All three correlates were found to be related to both measures of performance and the hypotheses were largely supported. Anomalous relationships, however, were found between organizational size and social performance as well as outsider representation and financial performance. This study demonstrates that normative explorations focusing only on financial performance can lead to misleading conclusions about organizational effectiveness.William Q. Judge is currently an assistant professor of strategic management at the University of Tennessee at Knoxville. He is continuing his research in the areas of organizational effectiveness, stakeholder management, and corporate governance.     

R&D–Marketing Integration Mechanisms, Communication Flows, and Innovation Success

Rudy Moenaert, William Souder, Arnoud De Meyer, and Dirk Deschoolmeester report the results of their study of forty technologically innovative Belgian companies to examine the interaction between marketing and R&D. They studied one commercially successful and one commercially unsuccessful technological product innovation project in each participating company and collected data from one marketing and one R&D respondent per project. Communication flows between marketing and R&D are increased under conditions involving formalization of projects, decentralization, positive interfunctional climate, and role flexibility.     

Global Integration in Primary Equity Markets: The Role of U.S. Banks and U.S. Investors

We examine the costs and benefits of the global integrationof initial public offering (IPO) markets associated with thediffusion of U.S. underwriting methods in the 1990s. Bookbuildingis becoming increasingly popular outside the United States andtypically costs twice as much as a fixed-price offer. However,on its own, bookbuilding only leads to lower underpricing whenconducted by U.S. banks and/or targeted at U.S. investors. Formost issuers, the gains associated with lower underpricing outweighedthe additional costs associated with hiring U.S. banks or marketingin the United States. This suggests a quality/price trade-offcontrasting with the findings of Chen and Ritter, particularlysince non-U.S. issuers raising US$20 million–US$80 millionalso typically pay a 7% spread when U.S. banks and investorsare involved.     

Auctioning the Airwaves: The Contest for Broadband pcs Spectrum

The House and Senate of the United States Congress recently passed legislation that directs the FCC to establish a system for using auctions to allocate the use of radio spectrum for personal communications services. There is a unique and unprecedented set of issues that arise in this context, which are of interest to economists, industry analysts, regulators, and policymakers. We discuss these issues and evaluate their likely impact on the outcome of the spectrum auctions. In addition, we argue that there may be pitfalls in the auction procedure adopted by the FCC, and we discuss possible alternative procedures.     

UNIT MANAGEMENT BUYOUTS, STOCKHOLDER WEALTH, AND SELLING FIRMS' CHARACTERISTICS

Previous research on unit management buyouts, UMBs, has shown that selling firms benefit from the selloff transaction. The current research demonstrates that when the selling firm has either poor liquidity or poor earnings, selling firm shareholders do not benefit as much. We hypothesize that the unit managers have knowledge about the selling firm's difficulties so they do not pay as large a premium for the assets. Since the unit managers technically are employed by the selling firm shareholders, their bargaining to achieve a better price is an agency cost. Finally, selloff frequency does not affect seller abnormal returns.     

Common Stock Returns in Corporate Takeover Bids: The Case of Brokerage House Acquisitions

This paper examines the common stock returns of three groups of bidders that purchased brokerage houses. Only in the cases of horizontal mergers, one brokerage house purchasing another, are there abnormal returns associated with the purchase. Neither bank holding company bidders nor non-financial bidders gain significantly when purchasing a brokerage house. Bank holding company bidders face considerable regulatory delays, and these economic disturbances may eliminate their gains. Bank holding company expansion into these non-bank activities does not appear, at the time of announcement, to either hurt or benefit them; hence, this expansion does not appear to further the loss exposure of the Federal Deposit Insurance Corporation.     

Explaining Differences in Economic Performance Among Racial and Ethnic Groups in the USA

A bstract . By utilizing self-reported race and ancestry in the 1980 and 1990 USA censuses and the Blinder-Oaxaca decomposition technique, the extent of wage discrimination experienced by women and by men is examined across 50 ethnic/racial groups. Systematic evidence of negative discrimination is revealed in both census years for Asian, Indian, black (African-American), Vietnamese, Cuban, Mexican, Puerto Rican , and Native American males. To assess the charge that the Blinder-Oaxaca decomposition indicates cultural rather than discriminatory differentials, two additional data experiments are performed—one that controls for color and varies culture, and one that controls for culture and varies color. Race appears to matter.     

The in-depth testing of survey questions: A critical appraisal of methods

It has become increasingly apparent that the conventional piloting, or pre-testing, of survey questions does not ensure that questions are understood by respondents as researchers intend them to be understood. This has led survey methodologists to advocate the use of indepth testing procedures. While some of the procedures used to identify comprehension problems appear to be reasonably effective, almost all of the procedures used to identify other kinds of problems have not proved to be very useful. Two reasons stand out as explanations for this general lack of success. First, the probes used are themselves not likely to be interpreted in the same way by different respondents. Second, the cognitive psychological assumptions that have suggested many of the procedures may not adequately reflect the processes that underlie the way questions are answered. A number of suggestions are made with the view to making the in-depth testing of survey questions a more profitable exercise.