The effects of leveraged buyouts on corporate growth and diversification in large firms

This study investigates the effects of LBOs on corporate growth and diversification in large U.S. firms which underwent leveraged buyouts during the 1980s. Based on the analysis, this study found that revenue and employee growth are significantly lower in LBO firms than in control firms that remained public. Strategically, we find that LBO firms decreased the size of both their periphery and core businesses more than public control firms and that LBO firms divested a significantly higher volume of periphery and core businesses than control firms. These postbuyout differences between LBO and public firms are consistent with the argument that LBO firms provide managers with incentives to downsize and prune lines of business, resulting in reduction in overall firm size and diversifcation.     

Toward a theory of high performance

What does it mean to be a high-performance company? The process of measuring relative performance across industries and eras, declaring top performers, and finding the common drivers of their success is such a difficult one that it might seem a fool's errand to attempt. In fact, no one did for the first thousand or so years of business history. The question didn't even occur to many scholars until Tom Peters and Bob Waterman released In Search of Excellence in 1982. Twenty-three years later, we've witnessed several more attempts--and, just maybe, we're getting closer to answers. In this reported piece, HBR senior editor Julia Kirby explores why it's so difficult to study high performance and how various research efforts--including those from John Kotter and Jim Heskett; Jim Collins and Jerry Porras; Bill Joyce, Nitin Nohria, and Bruce Roberson; and several others outlined in a summary chart-have attacked the problem. The challenge starts with deciding which companies to study closely. Are the stars the ones with the highest market caps, the ones with the greatest sales growth, or simply the ones that remain standing at the end of the game? (And when's the end of the game?) Each major study differs in how it defines success, which companies it therefore declares to be worthy of emulation, and the patterns of activity and attitude it finds in common among them. Yet, Kirby concludes, as each study's method incrementally solves problems others have faced, we are progressing toward a consensus theory of high performance.     

Research Misconduct in Accounting Literature: A Survey of the Most Prolific Researchers' Actions and Beliefs

Incidents of research misconduct, especially falsification, in the hard sciences and medicine have been widely reported. Motives for misconduct include professional advancement and personal recognition. Accounting academics are under the same tenure, promotion and recognition pressures as other academics; and, without the life-and-death issues of medical research, rationalizing misconduct in accounting research seems much easier. It is reasonable to assume that dishonesty has occurred, even if little evidence exists about its prevalence. Further, accounting research can influence tax policy and market conditions, affecting people's lives. This study is, to our knowledge, the first attempt to survey accounting researchers directly as to their ethical practices; it uses the randomized response technique of addressing sensitive questions. To maximize its relevance to the most respected accounting research, this questionnaire was sent only to the most prolific researchers at U.S. colleges and universities—those who have published in the 'top thirty' accounting journals. The results indicate that serious misconduct has occurred among these established accounting researchers. The estimated percentage of seriously tainted articles in the top thirty accounting journals, based on self-reporting, is about 4 per cent, while the respondents on average believe that about 21 per cent of the literature is tainted. Faculty who were tenured more recently provide higher estimates of the falsification rate, and attribute more of the cause to external factors like tenure pressure. The article concludes by discussing implications and offering policy recommendations.     

Farm tourism in England—Planning,funding, promotion and some lessons from Europe

Unlike Europe, England has come to farm tourism quite late. However it is growing in popularity with the tourist public on the search for new holidays and with the farming community in search for new ways to supplement their agricultural income. This article describes the first major research to be undertaken on farm tourism in England. The attitudes of farmers, government policy and promotion are all discussed. A brief survey of the continental European experience indicates the road that English farm tourism could do well to follow in the future.     

Tourism as connectedness

Late modernity in developed nations is characterized by changing social and psychological conditions, including individualization, processes of competition and loneliness. Remaining socially connected is becoming increasingly important. In this situation, travel provides meaning through physical encounters, inclusion in traveller Gemeinschaft based on shared norms, beliefs and interests, and social status in societies increasingly defined by mobilities. As relationships are forged and found in mobility, travel is no longer an option, rather a necessity for sociality, identity construction, affirmation or alteration. Social contexts and the underlying motivations for tourism have changed fundamentally in late modernity: non-tourism has become a threat to self-conceptions. By integrating social and psychological perspectives, this paper expands and deepens existing travel and mobilities discussions to advance the understanding of tourism as a mechanism of social connectedness, and points to implications for future tourism research.     

ICT investment and internationalization of the Russian economy

In this paper the influence of ICT investments on the international activities of Russia is analyzed. Firstly, ICT investments are considered as a factor of the international competitiveness of the Russian economy (in comparison with some other countries). Dynamics of both export volumes and openness of national economies are used as the main criteria for comparison. Then, the role of ICT in the development of international activities on the regional level is analysed. Cluster analysis is performed for the set of data on the Russian regions. Finally, the accession of Russia to the WTO is considered in the context of the development of the ICT sector and the international activities of the Russian economy.     

Conservation agriculture practices adopted in southern Brazil

The adoption of conservation agriculture (CA) practices are essential for soil and water conservation. In CA, farmers must adopt no-tillage (NT) with crop rotation to maintain a permanent soil cover. In Brazil, mainly in the South region, for CA to be more efficient, practices such as contour farming and agricultural terraces should also be adopted. Thus, the objective of this study is to determine the extent to which NT has been adopted with crop rotation and others soil and water conservation practices. Data from the Agricultural Census in Paraná State, southern Brazil, were used. For the data analysis, the relationship between the level of adoption of NT and the use of crop rotation, contour farming and agricultural terraces was analyzed. A factor and cluster analysis were performed to distinguish regions in terms of soil and water conservation practices. The results show good overall soil and water conservation practices, although heterogeneity has been observed in the adoption practices between regions. Adoption of NT is high in almost all the studied regions. The conservation practice most widely used with NT is contour farming, whereas the least used is agricultural terraces. Conservation practices for runoff control are being neglected by farmers.     

On the Effectiveness of Social Marketing—What Do We Really Know?

Social marketing continues to play an important role, as societies are facing diverse social problems. Therefore, scientific findings on the effectiveness of social marketing are particularly interesting. A rigorously elaborated, structured, state of the art covering two aspects—not only the currently observed restricted focus on health campaigns, but also the whole spectrum of topics and the diversity of applied methodologies—is needed. Accordingly, this article aims to identify and categorize relevant findings on the effectiveness of social marketing in a tentative holistic model, with a main focus on framing determinants. A research agenda, which includes research propositions on framing determinants in social marketing effectiveness, to enhance scientific progress in the field, is deduced from this state of the art.     

Economics training and hyperbolic discounting: training versus selection effects

This paper contributes to the literature on the effects of economics training on behavior by examining the link between hyperbolic discounting and the number of economics classes taken by a sample of 1310 college graduates at Ohio University. A strong negative correlation is found between economics training and hyperbolic discounting behavior. Regression analysis shows that dynamic consistency is a determinant of taking economics classes. Once the endogeneity of these variables is accounted for, economics training is no longer a statistically significant determinant of hyperbolic discounting. Thus, the selection effect of studying economics outweighs the training effect. Behavioral variables are found to be more important in explaining hyperbolic discounting than demographic variables. The study suggests the importance of controlling for both the selection effect and the training effect for all studies that examine the role of economic training on behavior.     

Just a Question of Selection? The Causal Effect of Profit Sharing on a Firm's Performance

Using German firm panel data, we analyze the productivity effects of profit sharing. Because selectivity should pose a severe problem in this context, we combine matching with a difference‐in‐differences approach. This method enables us to rule out potential bias. Our results suggest that selectivity does indeed matter. Firms with very special characteristics apply profit sharing. We find that these establishments are already more productive before they decide to implement profit sharing. Nevertheless, after accounting for selection, our results show that the introduction of profit sharing leads to a significantly higher productivity in these firms.