Ex Post Settling Up in Cash Compensation: New Evidence

This paper provides new evidence on whether and how boards solve costly ex post settling up to recover CEO cash compensation for unrealized gains that fail to materialize. Our analyses are motivated by the likely expanding role for ex post settling up as the risk of compensating executives for unrealized gains that may never materialize increases in a more intangibles‐based economy, as well as by the conflicting evidence of prior research. We provide evidence consistent with ex post settling up by (i) using alternative truncation methods to derive observations most likely to fall within the theoretically motivated incentive zone; (ii) replicating and reconciling the conflicting results of prior research that supports (Leone et al. 2006) and fails to support (Shaw and Zhang 2010) ex post settling up; (iii) using Incentive Lab data with contract‐specific information, allowing strong identification of observations in the incentive zone; and (iv) documenting predictable cross‐sectional variation, with ex post settling up being more pronounced for firms with stronger corporate governance, less conservative accounting earnings, and a larger proportion of total pay in the form of cash compensation. Overall, we conclude that evidence is strong in support of the ex post settling up hypothesis.     

The role of tacit knowledge in connecting knowledge exchange and combination with innovation

Using the Resource-Based View, this paper aims to provide a better understanding of the effect of knowledge on innovation. With this general aim in mind, we relate knowledge’s nature (tacit vs. explicit) and process (e.g. knowledge exchange and combination) to innovation. Using a sample of 105 innovative firms, we find a positive linear effect of tacit knowledge on innovation and a curvilinear relationship between knowledge exchange and combination and innovation. We also find a moderating effect of tacit knowledge on the curvilinear relationship between knowledge exchange and combination and innovation. We speculate on our findings and connect them to previous theory.     

Multicriteria framework for selecting a process modelling language

The choice of process modelling language can affect business process management (BPM) since each modelling language shows different features of a given process and may limit the ways in which a process can be described and analysed. However, choosing the appropriate modelling language for process modelling has become a difficult task because of the availability of a large number modelling languages and also due to the lack of guidelines on evaluating, and comparing languages so as to assist in selecting the most appropriate one. This paper proposes a framework for selecting a modelling language in accordance with the purposes of modelling. This framework is based on the semiotic quality framework (SEQUAL) for evaluating process modelling languages and a multicriteria decision aid (MCDA) approach in order to select the most appropriate language for BPM. This study does not attempt to set out new forms of assessment and evaluation criteria, but does attempt to demonstrate how two existing approaches can be combined so as to solve the problem of selection of modelling language. The framework is described in this paper and then demonstrated by means of an example. Finally, the advantages and disadvantages of using SEQUAL and MCDA in an integrated manner are discussed.     

The Dark Side of Team Social Cohesion in NPD Team Boundary Spanning

Although team boundary spanning is conducive to achieving new product (NP) competitive advantage, these actions may not always deliver the expected performance. The current study makes an initial attempt to examine factors that undermine team boundary spanning positive effects on NP competitive advantage by proposing and testing a negative moderating effect of team social cohesion on the relationship between team boundary spanning and NP competitive advantage. Furthermore, the current study expects team social cohesion to have a stronger negative moderating effect on the relationship between team boundary spanning and NP competitive advantage when external task interdependence and project newness are high than when they are low. Data for this study come from 140 NPD projects developed and commercialized by Spanish manufacturing firms in high‐ and medium‐high‐technology sectors. The study’s results reveal a positive effect of team boundary spanning on NP competitive advantage. Furthermore, high levels of team social cohesion are shown to reduce the positive effect of team boundary spanning on NP competitive advantage. Finally, we found that project newness and external task interdependence accentuate the negative moderating effect of team social cohesion on the relationship between team boundary spanning and NP competitive advantage. The current study makes several contributions to the literature. First, findings from this study give us new insights into the significance of team boundary spanning to the success of NPs by revealing that boundary‐spanning activities are beneficial to achieving NP competitive advantage. Second, the study departs from existing research in that it exposes a dark side of team social cohesion for NPD teams engaged in boundary spanning activities. Last, the study expands extant research by proposing and demonstrating that project newness and external task interdependence bring about situations in which external groups present a threat to the collective identity of socially cohesive groups.     

环京津贫困带生态—贫困耦合关系困境的博弈分析

自2005年环京津贫困带概念被提出到现在,环京津贫困带与周边地区收入差距没有缩小,反而呈现不断拉大的趋势,已陷入了缪尔达尔所述的"贫困导致贫困"的恶性循环;环京津贫困带生态—贫困耦合关系目前呈现逆EKC曲线倒退式特殊发展模式特征,通过进化博弈分析,得出:环京津贫困带生态性贫困的现实特征是由于京津冀地方政府间政治地位的不平等、外部(中央)政策性施压造成的被动性短期进化稳定均衡,要实现生态环境与减贫良性互动发展,需要京津冀大区域政策的顶层设计和协同发展;因此,提出了解决环京津贫困带生态—贫困困境关系的对策。     

Forecasting crude oil price volatility

We use high-frequency intra-day realized volatility data to evaluate the relative forecasting performances of various models that are used commonly for forecasting the volatility of crude oil daily spot returns at multiple horizons. These models include the RiskMetrics, GARCH, asymmetric GARCH, fractional integrated GARCH and Markov switching GARCH models. We begin by implementing Carrasco, Hu, and Ploberger’s (2014) test for regime switching in the mean and variance of the GARCH(1, 1), and find overwhelming support for regime switching. We then perform a comprehensive out-of-sample forecasting performance evaluation using a battery of tests. We find that, under the MSE and QLIKE loss functions: (i) models with a Student’s t innovation are favored over those with a normal innovation; (ii) RiskMetrics and GARCH(1, 1) have good predictive accuracies at short forecast horizons, whereas EGARCH(1, 1) yields the most accurate forecasts at medium horizons; and (iii) the Markov switching GARCH shows a superior predictive accuracy at long horizons. These results are established by computing the equal predictive ability test of Diebold and Mariano (1995) and West (1996) and the model confidence set of Hansen, Lunde, and Nason (2011) over the entire evaluation sample. In addition, a comparison of the MSPE ratios computed using a rolling window suggests that the Markov switching GARCH model is better at predicting the volatility during periods of turmoil.     

Corporate Entrepreneurship and Codification of the Knowledge Acquired from Strategic Partners in SMEs

This work proposes that the level of codification of acquired knowledge positively influences the corporate entrepreneurship activities of SMEs and argues that this relationship is enhanced by the relational diversity of the partner that provides the knowledge and the strength of the relationship with this partner. The results obtained in a sample of 181 Spanish SMEs in the ITC sector confirm the hypotheses proposed. This research contributes to the corporate entrepreneurship literature by showing which types of knowledge (codified), sources of knowledge (the most important strategic partner), and relational conditions (tie strength and partner's relational diversity) can enhance corporate entrepreneurship.     

The ecological conscious consumer behaviour: are the activists different?

In recent decades, concern about the environment has been increasing. Many individuals are now more worried about their purchasing behaviour and the consequences their actions could have for the environment. Managers are becoming more committed to responding to individual needs and desires in a responsible way, taking into account possible environmental damage. Previous studies concentrated more on explaining this phenomenon through demographic variables, but the trend now is towards explaining this through psychographic and environmental variables, which have already been shown to be the most significant in this context. This study sought to establish the relationship between activists and ecologically conscious consumer behaviour (ECCB) by analyzing the profile of green consumers (i.e. demographic and psychographic variables). To reach this objective, an online survey was conducted. The results of data analyses support the conclusion that activism is the strongest predictor of ECCB.     

Reproducing vulnerabilities in agri‐food systems: Tracing the links between governance,financialization, and vulnerability in Europe post 2007–2008

Interconnected sets of vulnerabilities have emerged in the European food system since 2007–2008, raising concerns about food security in a region with arguably some of the most advanced and prosperous economies and environmental governance frameworks. Historically, this is suggesting the current “double jeopardy” problem in food system vulnerability—with systemic declines both in sustainability (the ability of the food system to ecologically renew itself) and food security (the ability of a population to access sufficient nutritional foods and feed itself). By focusing on both drivers and impacts of food system vulnerabilities in the European Union and United Kingdom, this paper explores a grounded and relational approach to financialization—recognized as a key expression of recent growing vulnerabilities. Through the prism of the current socio‐economic pressures facing food producers, and the emergence of potentially “stranded assets” in the agri‐food system more generally, the analysis seeks to show how the combined relationships between neo‐liberalized governance and the market volatilities encouraged by new rounds of financialization are creating “nested” vulnerabilities. As we conclude, a critical, grounded, and systemic understanding of food system vulnerabilities thus becomes a key feature and precursor for potentially developing more resilient agri‐food systems—both regionally and globally.     

Mandatory Adoption of IASB Standards: Value Relevance and Country-Specific Factors

The objective of this study is to investigate if the value relevance of European-listed companies increased after the mandatory application of International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) and how the value relevance of accounting information prepared under IAS/IFRS is shaped by the specific factors of the country in which companies are domiciled. Results show that the value relevance of financial information during the period companies applied mandatory IAS/IFRS is higher than for the period during which they applied local accounting standards. We also found that countries where accounting and tax are clearly separated show more relevant accounting information. Finally, we found that companies from countries with more legal and public enforcement mechanisms disclose less relevant accounting information under IAS/IFRS.