THE GROWTH OPTIMAL CAPITAL STRUCTURE: MANAGER VERSUS SHAREHOLDER OBJECTIVES

Utilizing a geometric mean wealth maximization approach, this paper shows potential differences between the capital structure preferred by stockholders and the one preferred by managers. In general, managers may prefer more conservative, equity-oriented financing, while stockholders desire greater financial leverage. The problem arises because of differences in the degree of portfolio diversification achieved by managers and stockholders. Stockholders tend to have reasonably well-diversified portfolios, causing them to be concerned with systematic risk. Managers' portfolios are apt to be more concentrated and directly tied to the financial success of an employer, causing managers to be concerned with total risk. Thus, for a given capital structure, each party views the firm as having a different level of risk. Several executive compensation plans are considered that might more closely align the interests of managers and stockholders.     

US oil consumption,oil prices,and the macroeconomy

Since the oil price shock of 1973–74, researchers have waged an intense debate regarding the connection between the U.S. energy sector and national income. Studies examining the relationship between oil prices, oil consumption, and real output have produced remarkably mixed results. In particular, the two most widely cited investigations by Darby and Hamilton come to dramatically different conclusions concerning the effect of oil shocks on economic activity. To date, however, studies of this issue have been either correlation based and thus void of causality inferences, have used overly restrictive bivariate causality techniques, or covered periods that exclude major oil price disruptions. This paper analyzes a quarterly multivariate VAR model to investigate the existence and direction of causality between oil prices, oil consumption, real output, and several other key macroeconomic policy variables. Among the key findings is that oil price shocks are not a major cause of U.S. business cycles. Moreover, our findings also suggest that both oil prices and real output cause significant changes in oil consumption without feedback. These results support the contention that a systematic U.S. conservation policy would not significantly impair real economic activity.     

法律与秩序不能忽视的知识产权五大问题

从历史上看,有关知识产权的法律演变非常之缓慢.但自从有了互联网之后,一切都变了--根据摩尔定律,事物正以加速度方式快速发展.     

Interpreting and responding to strategic issues: The impact of national culture

Perceptions of environmental uncertainty and organizational control influence strategic behavior. As national culture influences these perceptions we expect to find cultural differences in interpretation and response to strategic issues. Given a case describing an issue concerning deregulation of the U.S. banking industry, managers completed questionnaires rating interpretations and responses to that issue. National culture was found to influence interpretation and responses. In particular, Latin European managers when compared with other managers were more likely to interpret the issue as a crisis and as a threat. Latin Europeans were also more likely to recommend proactive behavior. This study indicates that different cultures are likely to interpret and respond to the same strategic issue in different ways. These differences may help to explain and predict different responses of European countries to ‘1992’.     

The contribution of manufacturing to shortening design cycle times

Shortening design cycle times, without increasing design costs or sacrificing quality has become an important management goal. In this paper, we will provide a short overview of the literature on shortening design cycle times. Building on this, we want to establish how manufacturing and the manufacturing/R&D interface can contribute to shorter development cycle times. The European Manufacturing Futures database will be used to test some of the literature findings on a sample of large European Manufacturers.     

What's in it for the customers? Successfully marketing green clothes

Most green marketing literature is strongly based on the assumption that a consumer's environmental awareness is a pre‐condition for green purchasing. While following such a ‘behaviouristic’ green marketing both scholars and companies seem to have neglected that green products are bought only if customers perceive the products as superior to competitors’ offerings. This paper argues that economic theory can give additional valuable input to green marketing. A first important step for marketing according to the economic approach is to identify how consumers perceive the products' cost and benefits. In this paper, cost and benefits are differentiated into different categories, which may help companies in finding their products' value added. In a second phase, companies can focus on stressing product advantages rather than on overcoming barriers. Using the example of green clothes this contribution shows what such a marketing strategy can look like. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment