Trigger happy or gun shy? Dissolving common‐value partnerships with Texas shootouts

The operating agreements of many business ventures include clauses to facilitate the exit of joint owners. In so‐called Texas Shootouts, one owner names a single buy‐sell price and the other owner is compelled to either buy or sell shares at that named price. Despite their prevalence in real‐world contracts, Texas Shootouts are rarely triggered. In our theoretical framework, sole ownership is more efficient than joint ownership. Negotiations are frustrated, however, by the presence of asymmetric information. In equilibrium, owners eschew buy‐sell offers in favor of simple offers to buy or to sell shares and bargaining failures arise. Experimental data support these findings.     

A generalization of Panjer’s recursion and numerically stable risk aggregation

Portfolio credit risk models as well as models for operational risk can often be treated analogously to the collective risk model coming from insurance. Applying the classical Panjer recursion in the collective risk model can lead to numerical instabilities, for instance if the claim number distribution is extended negative binomial or extended logarithmic. We present a generalization of Panjer’s recursion that leads to numerically stable algorithms. The algorithm can be applied to the collective risk model, where the claim number follows, for example, a Poisson distribution mixed over a generalized tempered stable distribution with exponent in (0,1). De Pril’s recursion can be generalized in the same vein. We also present an analogue of our method for the collective model with a severity distribution having mixed support.     

Discussion of: “Flattening the organization: the effect of organizational reporting structure on budgeting effectiveness”

This paper is a discussion of Hannan et al. (Rev Account Stud, 2010), wherein subordinate-participants are endowed with private information, and superior-participants can potentially affect budget requests through their ability to reject them. Their findings are of interest to research on both the design of budgeting systems and span of control. I discuss the relevance of HRT to these literatures and comment on their implementation and experimental design. Also, I offer suggestions for future research, one of which is to explicitly introduce monitoring into experiments on span of control.     

Value creation through stakeholder synergy

Our “stakeholder synergy” perspective identifies new value creation opportunities that are especially effective strategically because a single strategic action (1) increases different types of value for two or more essential stakeholder groups simultaneously, and (2) does not reduce the value already received by any other essential stakeholder group. This result is obtainable because multiple potential sources of value creation exist for each essential stakeholder group. Actions that meet these criteria increase the size of the value “pie” available for essential stakeholder groups, and thereby serve to attract exceptional stakeholders and obtain their increasing effort and commitment. The stakeholder synergy perspective extends stakeholder theory further into the strategy realm, and offers insights for realizing broader value creation that is more likely to produce sustainable competitive advantage. Copyright © 2014 John Wiley & Sons, Ltd.     

Efficiency in the National Basketball Association: a stochastic frontier approach with panel data

We investigate how closely NBA teams play up to their potential. We find that shooting, rebounding, stealing the ball and blocking shots raise the number of potential wins while turnovers lower it. We also learn that better coaching and defensive prowess raise a team's win efficiency. Copyright © 2006 John Wiley & Sons, Ltd.     

Reconciling Gray and Hotelling

A bstract .   Early exhaustible resource economics provides an important foundation for recent suggestions that firm-level economic modeling plays a larger role in the analysis of resource scarcity. The lack of empirical support for Hotelling's r -percent rule, introduced in 1931, and recent suggestions that industry behavior may not be reducible to firm behaviors are the primary motivating factors for examining the relative value of Gray's contribution to the field of exhaustible resource economics relative to Hotelling's contribution. Specifically, Gray's papers that appeared in the 1910s provide insight into the heterogeneity of deposits and their spatial dimensions, and offer the possibility that firms will be subject to fixed costs carried over between periods. In this paper, the arguments presented by Gray are formalized in a dynamic model, which allows the differences between Gray's and Hotelling's assumptions to be more fully explored. The results of the paper illustrate that by considering spatially identifiable heterogeneous deposits, fixed costs, and entry costs, in general Hotelling's r -percent rule is not a sufficient condition for firm-level decision making and that firms' extraction behavior cannot be linearly aggregated to describe industry behavior.     

The antecedents of direct management communication to employees in Mauritius

We measure whether, in a developing country, existence of a ‘hard’ strategic human resource management (SHRM) strategy developed at high organizational levels or one designed to enhance employee knowledge inputs and thereby promote employer–employee interdependence (EEIN) is a stronger antecedent of direct communication to employees. We use data from a comprehensive survey of HR practices in Mauritius, one of Africa's most open and successful economies. We find that both SHRM and EEIN are antecedents, but that the latter is stronger in public organizations and in smaller and older companies. We conclude that EEIN is a significant analytic category for explaining management practices especially in a historic sense in this and possibly other developing country contexts.     

Innovation and HRM: Absences and politics

This article analyses the role of HRM practices in the implementation of an innovative cross-functional approach to new product development (concurrent engineering, CE) in Eurotech Industries. Contrary to CE methodology stipulations, and despite supportive conditions, HRM received scant attention in the implementation process. Organizational power and politics were clearly involved in this situation, and this article explores how their play created such HRM ‘absences’. The article builds on a four-dimensional view of power in order to provide a deeper understanding of the embedded, interdependent and political nature of HRM practice and innovation.     

Experiential cultural intelligence development: context and individual attributes

Cultural intelligence (CQ) represents advancement in the area of international human resources management and cross-cultural training. An experiential approach to CQ training is developed and analyzed. A diverse, multicultural group of over 370 participated. General self-efficacy and contextual aspects related to Contact Theory were found to be significant to training outcomes in CQ development. In crafting the most effective CQ training and education, organizations and international human resources staff can benefit from understanding individual and contextual influences. Our experiential approach to CQ education appears to hold promise and adds to the literature by producing a specific approach.     

The relationship between attitudes toward diversity management in the Southwest USA and the GLOBE study cultural preferences

This study investigates the importance of diversity management as it relates to the GLOBE study cultural preferences. A survey of 225 students in undergraduate and graduate programs at a private Texas University concluded that collectivism was a strong predictor of how positively participants rated their organizations support for diversity, diversity recruitment efforts, diversity training for mentors, and employees with disabilities. The participants were nontraditional students who were also employed in a wide array of organizations. Collectivism and assertiveness were both strong predictors with regard to participant's ratings of chief executive officer (CEO) support of diversity and the organization's overall diversity training. With regard to leadership dimensions, humane-oriented leadership was a positive predictor of preference for a collective culture, which predicts diversity management ratings. Team-oriented leadership also predicted ratings of diversity management. The results of the study indicate that promoting a more collectivist rather than individualistic culture is associated with the increased rating of organizational diversity practices. Furthermore, it strengthens the argument that with the increase in globalization, organizations must be prepared to re-evaluate their policies and know when to adapt to changes in organizational culture.