Managerial Tenure and Recovery Following M-Form Reorganization in Diversified Firms

We identify two factors that affect how quickly highly interdependent diversified firms recover from the performance disruptions that typically accompany M-form reorganizations: (1) organizational tenure and (2) the tenure of top management teams. We find that top management teams with a rare combination of long organizational tenure and relatively short team tenure are associated with faster performance recovery in diversified firms with extensive business unit interdependencies. The effects of managerial tenure on recovery time were found to be inconsequential in unrelated diversified firms where the reorganization task is less complex.     

Technology transfer to the U.S.S.R and the shape of the production function

Summary In this paper we argue that previous studies of the impact of imports of Western capital to the Soviet Union have erred by emphasizing the direct contribution of such capital to output. To our view, a more important consequence of such imports is a catalytic effect on the productivity of indigenous capital and labor cooperating with Western machinery. Estimates of production functions for Soviet industry and several subsectors indicate that Western capital imports do improve the productivity of indigenous inputs and make the production process more capital intensive.     

Greenhouse Gas and Energy Audits under the Newly Legislated Australian Audit Determination: Perceptions of Initial Impact

This exploratory qualitative study, using interview data, provides perceptions of the preliminary impact of greenhouse gas and energy (GGE) audits in Australia within the context of the legislated Audit Determination, operational for the first time in the financial year ending 30 June 2010. Overall, the results suggest that the Australian Government's argued cost reductions are currently not being realised, and provide evidence of the accounting profession's perceived influence on the views and methodologies adopted in the Audit Determination. The results also indicate that accounting firms are perceived to be gaining an increasing share of the evolving GGE and broader sustainability assurance markets in Australia.     

The evolution of socio-economic modeling in Canada

For the past 15 years the authors have been associated with a research program concerned with the development of structural economic models that had their origins in the input-output models of Leontief. This program has produced a set of conceptual tools embracing a new approach to socio-economic modeling which we term the “design approach.” This approach draws on general systems theory and control theory in application to large social systems. Also emerging from this program as its test prototype is a particular set of models designed for society wide resource analysis and a set of software tools within which design approach models can be designed, implemented, and operated. The design approach provides a new method of assessing technologies in regard to their overall socio-economic resource impact. The objective of this paper is to describe the unique institutional setting and the particular issues which provided the setting and the motivation for embarking on a large scale modeling program. The paper is organized chronologically, describing first of all the evolution of the program approach, the software tools, the Socio-Economic Resource Framework (SERF), which is the prototype set of models that have been implemented, and some results obtained from it.     

Women and Work: A Survey of Textbooks

The third Marshall–Hicks–Allen rule of elasticity of derived demand purports to show that labor demand is less elastic when labor is a smaller share of total costs. As Hicks, Allen, and then Bronfenbrenner showed, this rule is not quite correct, and actually is complicated by an unexpected negative relationship involving labor's share of total costs and the elasticity of substitution. The standard intuitive explanation for the exception to the rule presented by Stigler and referenced in many textbooks describes a situation rather different than the one described in the rule. The author presents an example that illustrates the peculiar negative impact of labor's share operating via the elasticity of substitution and then explains why the unexpected relationship between labor's share of total cost, the elasticity of substitution, and the elasticity of labor demand holds.     

Preferences, Property Rights, and Anonymity in Bargaining Games

Research on ultimatum and dictator games has found that because of "fairness" first movers in such games offer more than noncooperative game theory predicts. We find that if the right to be the first mover is "earned" by scoring high on a general knowledge quiz, then first movers behave in a more self-regarding manner. We also conducted dictator double blind experiments, in which the experimenter could not identify the decision maker. The results yielded by far our largest observed incidence of self-regarding offers, suggesting that offers are due to strategic and expectation considerations. Journal of Economic Literature Classification Numbers: C78, C91.     

The importance of fit between individual values and organisational culture in the greening of industry

Individual and societal values with respect to environmental protection have been shown to have grown significantly in the past decade and can be expected to continue to grow. As a result, companies that do not materially adopt environmental values into their corporate value systems will find their culture to be incongruent with the personal values of their employees. Under such circumstances, these employees will face the choice of three sub-optimal options: (1) dissatisfied compliance with the corporate values; (2) resolution to change the corporate values; or (3) resignation from the organization. Those companies that are able to achieve a congruent fit between individual and organizational values will benefit from higher worker satisfaction, longer tenure and greater loyalty.     

MANAGERIAL REMUNERATION AND ACCOUNTING FOR RECURRING EXTRAORDINARY ITEMS

The Australian standard on income statements (AAS 1) was recently amended to require that extraordinary items be non-recurring. Although the amendment applies from 1990, the Corporations Law requires that comparative financial statements for 1989, complying with the new rule, be included with the 1990 financial statements. Comparison of these with actual financial statements for 1989 indicates how the statements would have differed in 1989 if the standard had then required extraordinary items to be non-recurring. The differences are investigated to partially explain cross sectional differences in firms' classification criteria. Results imply that managers who are remunerated highly (relative to the magnitude of the earnings of the firm) prefer to classify gains as operating and losses as extraordinary.     

Rational expectations and monetary models of exchange rate determination: An empirical examination

One asset model of exchange rate determination that has received substantial attention in the literature is the monetary model. As with other asset models, expectations of future exchange rates play a key role. Usually these expectations are assumed to be formed rationally. However, to date there has been no attempt to empirically estimate a complete monetary model with rational expectations. In this paper, such a model is estimated and the restrictions implicity imposed by the rational expectation hypothesis tested. The results suggest that both the parameter constraints associated with the monetary model and those implied by the REH are consistent with recent exchange rate behavior.