Law and Executive Compensation: A Cross‐Country Study

Companies outside the U.S. use substantially less equity in their compensation mix than U.S. firms. But despite this consistent “cross‐sectional” difference, the pattern of changes in equity‐based pay of non‐U.S. companies over time appears to mirror changes in the pay of U.S. companies. The authors provide persuasive evidence that features of a nation's legal environment help explain major differences in compensation structure across countries. As a general rule, companies in countries that provide greater protection of shareholder rights use larger amounts of equity‐based compensation. And the equity mix also tends to be higher when a country's legal system ensures strict enforcement of the laws that are on the books. At the same time, since the equity mix varies considerably over time within the same legal environment, it is clear that factors other than the legal environment affect compensation structure. The authors report that, after controlling for legal factors, company‐specific variables that proxy for “agency” conflicts—not only between managers and shareholders, but between controlling and minority shareholders as well—also affect the compensation mix in fairly predictable ways. The bottom line of this study is that, although we may have a global market for talent, compensation structures across countries are not likely to converge unless and until the underlying legal protections afforded shareholders converge. At the same time, the effect of agency costs in compensation design for non‐U.S. firms appears to be partly conditioned by the nation's legal system and the entire set of regulatory and other institutions that are affected by it.     

关于投资美国不良贷款市场途径的分析

金融危机爆发以来,欧美市场（特别是房地产市场）资产泡沫破灭,资产价格大幅下跌。对银行业而言,不良贷款（NPL）规模快速膨胀。这极大地影响了银行的资产质量,     

The effects of social- and self-motives on the intentions to share positive and negative word of mouth

We examine social- and self-motives as drivers of Word of Mouth (WOM). The main proposition is that the transmitter expects to gain personal and social benefits from sharing his opinion about a brand. The gains are in the form of expected satisfaction of self- and social-needs. In the research model, self-needs (i.e., self-enhancement and self-affirmation) are considered the initial driver of WOM. The desire for their satisfaction through WOM results in an intended social interaction, which in turn triggers social-motives: social-needs (i.e., social comparison and social bonding) and social-intentions (i.e., helping others and providing social information). WOM is the outcome of the intention to engage in a social interaction that is initiated by the intention to satisfy self-needs. Through an empirical analysis, we examine how the underlying mechanism varies for positive and negative WOM. Positive WOM is motivated primarily by the need for self-enhancement, and negative WOM is motivated by the need for self-affirmation. The need for social comparison affects both valences of WOM, the need for social bonding affects only positive WOM, and intention to help others and share social information affect only negative WOM. The findings suggest that discussing brands can be a mechanism for acquiring personal and social benefits, and consequently, promotional campaigns should highlight the gains customers accrue through WOM.     

For Those to Come: An Introduction to Why Posthumanism Matters

Abstract

As the introduction to the special issue of Leisure Sciences dedicated to interdisciplinary theorizations and practices productively informed by our posthuman predicament and currents within posthumanist thought, this article sets the stage, tone, and itinerary for a series of articles examining the various potentials posthumanism affords. As such, we attempt to connect multiple ways posthumanism may be taken up with key concepts, linguistic identifiers, and onto-epistemological shifts that may open upon important differences in how we live, think, and relate with human and nonhuman entities. Resisting melancholic laments at the failures of humanism, we urge for an affirmative, upbeat, and visionary approach to set a different trajectory for our future. This article is intended to serve as a point of departure for scholars desiring to experiment with what posthumanism can do to generate changes and accelerations for a more humane, if not less human-centric, future.     

The Effects of Supplier Involvement and Knowledge Protection on Product Innovation in Customer–Supplier Relationships: A Study of Global Automotive Suppliers in China

Globalization drives firms to develop product innovation through their global supply chains. While innovations generated by supply channel members, as opposed to individual partners, are playing an increasingly important role in the success of all supply chain partners, there has been limited research on how supply chain relationships cultivate the process of such innovation generation, particularly in emerging markets. Correspondingly, this study explores how multinational suppliers can develop adaptive product innovation to create competitive advantage in emerging markets. Drawing on the knowledge‐based view and transaction cost economics, this study investigates the influence of supplier involvement and other factors on supplier innovation and performance. The results of a survey of 170 multinational automobile suppliers in China provide support for most of the hypotheses. Specifically, supplier involvement in codesign has an inverted U‐shaped relationship with product innovation. Furthermore, knowledge protection, trust, and technological uncertainty are all found to drive greater product innovation. In addition, the institutional environment moderates the effect of product innovation on performance. Overall, this study enhances our understanding of how MNEs can acquire local knowledge and develop adaptive products in emerging markets.     

Using private management standard certification to reduce information asymmetries in corrupt environments

This paper investigates how corruption in the institutional environment influences firms' decisions to obtain third‐party certification to private management standards as signals of desirable conduct. We argue that policy‐specific corruption erodes trust in government efforts to regulate firms' conduct, thus increasing the signaling value of private certifications and the likelihood of certification. However, widespread corruption in the general environment can extend distrust to private certification systems, which reduces the credibility and signaling value of private certifications, thus decreasing the likelihood that firms obtain certification. Our empirical results based on ISO 14001 environmental management system certification among 433 automotive plants in Mexico confirm these relationships. We discuss the implications of our findings for transaction cost economics, institutional theory, research, and practice. Copyright © 2012 John Wiley & Sons, Ltd.     

International Harmonisation: He Who Pays the Piper Calls the Tune

This article reviews the historical background to the call for Australian accounting standards (AASBs) to be harmonised with international accounting standards (LASs) and analyses the major arguments for and against it. The companion article by Tarca reviews research on the extent of harmony between national standards (including AASBs) and LASs and the third article in the series, by Brown and Clinch, reports the available capital-market evidence on the debate.