Bimodal System Dynamic A Technology Assessment and Forecasting Approach

Technology assessment and science forecasting are based on the long-term forecasting of important processes within complex systems. The Bimodal System Model was developed for their modeling. The system dynamics and the system itself are based on the combined action of two forces: the evolutive intrinsic dynamics and the decisionistic formation. Evolutively intrinsic dynamic forces emerge from two basic principles: assimilation and comprehension (the basis of any individual endeavor) and exchange and interchange (the heart of any communication and interaction between individual people, groups, associations). These forces are solely induced by individual optimization of benefits related to material goods and ideas. From the point of view of their emergence they are heterogeneous and chaotic and are neither globally nor centrally planned. Their effect in a system occurs a million-fold, however uncoordinated. Intrinsic forces are insensitive to other effects (e.g., decisionistic or formative) due to their million-fold, heterogenous origin. Decisionistic formative forces deploy their effect in a system when a community is conscious of being a subject and as such is capable of expressing and translating its coordinated will (decision). The decisionistically formative forces can produce a consistent effect when they are aligned to the evolutive intrinsic forces and utilize their dynamics in a required manner. Therefore, process-oriented priorities must be construed in the course of consensus formation, determination of aims and headroom evaluation, which would allow a concerted and sustained application of the available forces.     

The effect of corporate social responsibility on stock performance: new evidence for the USA and Europe

This paper provides new empirical evidence for the effect of corporate social responsibility on corporate financial performance. In contrast to former studies, we examine two different regions, namely the USA and Europe, and disentangle firm and sector specific impacts. Our econometric analysis shows that environmental and social activities of a firm compared with other firms within the industry are valued by financial markets in both regions. However, the respective positive effects on average monthly stock returns between 2003 and 2006 are more robust in the USA and, in addition, non-linear. Our analysis furthermore points to biased parameter estimates if incorrectly specified econometric models are applied: the seemingly significantly negative effect of environmental and social performance of the industry to which a firm belongs strongly declines and mostly becomes insignificant if the explanation of stock performance is based on the Fama–French three-factor or the Carhart four-factor models instead of the simple Capital Asset Pricing Model.     

Shareholder Value: Principles, Declarations, and Actions

This paper is about shareholder value. We examine whether welfare considerations justify that target and whether competitive markets force firms to pursue it. We also argue that shareholder value is strictly an ill-defined goal. We report evidence from a large sample of listed firms across the world that many managers do not even mention shareholders in their mission statements. However, firms that do disclose a commitment to shareholders seem to perform better in terms of stock price and operating performance.