How Corporate Parents Add Value to The Stand-Alone Performance of Their Businesses

Corporate parents have the potential to add value to their businesses through their influence on the stand-alone performance of the businesses, but for a variety of reasons, including what we call the 10% versus 100% paradox, they more often destroy value instead. This article examines four companies, Dover, BTR, Emerson and RTZ, which succeed in creating value through stand-alone parenting influence, and draws out the conditions necessary to do so. These are that (1) there should be a genuine parenting opportunity to improve the performance of the business, (2) the parent should have skills, management processes, and other characteristics that are suitable for realising the opportunity, and (3) the parent should have sufficient feel for the critical success factors in the business to avoid inadvertently destroying value through inappropriate influences.     

CEO更替报告

每年,博斯公司都会对世界前2500家上市公司的CEO更替进行持续且透彻的研究。自2000年起,这项研究已持续了11年。每年我们都会在CEO更替研究中提出新的维度。今年的研究方向是CEO的角色以及CEO角色对任期和更替的影响。CEO及其高级管理团队在业务中亲身实践的程度如何？他们如何参与自身领导的业务？我们发现这些因素对任期和更替的影响非常明显。在这些公司中,总部参与运营决策的程度越高,CEO更替的频率可能就越高。     

Golden Parachutes, Board and Committee Composition, and Shareholder Wealth

Takeover defense mechanisms have become common for many modern corporations. In this research, we examine one potential takeover defense mechanism, golden parachutes. In particular, the relationship between the board of directors (and the board committees) and the question of whether the parachutes are aligned with shareholder interests or are a means of entrenching management, is studied. Results show that the composition of the board of directors’ compensation committee influences the market's perceived outcome of golden parachute adoption. When insiders and affiliated outsiders dominate the board's compensation committee, negative returns are more likely to occur than when independent outsiders control the committee.     

THE LOCAL EFFECTS OF LARGE DAM RESERVOIRS: U.S. EXPERIENCE, 1975–1995

Dam construction has been an important component of economic development initiatives in the United States. However, few comprehensive empirical studies examine the effects of such projects on local employment and income. This paper employs quasi-experimental control group methods to examine the effects of large dam reservoirs on county income, earnings, population and employment growth for dams opened in the U.S. during the period 1975–1984. The paper shows that large dam reservoirs have some statistically significant positive effects and tend to stimulate growth. There is considerable variation, however, with dams constructed for flood control purposes and dams further away from markets and large cities having less of an effect.     

增设“诺贝尔管理学奖”的可行性

从最狭隘的意义上来说,答案是肯定的。诺贝尔当初指定了5个奖项物理、化学、生理和医学、文学和和平奖。但在1968年,瑞典央行设立了新的经济学奖,为增设诺贝尔奖开创了先河。而且设立管理学奖也将是对诺贝尔自己在创新、企业家精神和创业方面的才能的一种认可。诺贝尔的遗嘱明确表示,奖项必须“授予那些……对人类做出重大贡献的人”。     

Getting Feedback on Defined Contribution Pension Plans

With the growth of private and public defined contribution (DC) pension plans around the world, market rates of return should increasingly play a large role in the retirement patterns of individuals. The reverse could, however, also be true—i.e., a country's population demographics could influence the financial markets. In this article, we model the potential impact of aggregate retirement patterns on macroeconomic variables with the goal of further understanding the implications of a traditional DC pension becoming the predominant source of retirement income for an entire society. We find that the economic-system feedback dampens fluctuations in the size of the working population.     

THE EMPIRICAL ANALYSIS OF FISCAL ILLUSION

Abstract. This paper examines the empirical analysis of the five main hypotheses subsumed under the generic term fiscal illusion. After placing these hypotheses within a common theoretical framework, the paper attempts to evaluate empirical research into the revenue-complexity hypothesis, the revenue-elasticity hypothesis, the flypaper effect, renter illusion, and debt illusion.     

The Introduction of the Euro and Derivative Use in French Firms

In January 1999 several European countries adopted a common currency, the “euro”. This important economic event provided an opportunity to examine the determinants of risk management in an environment where exposure to foreign exchange (FX) risk was considerably reduced. For a sample of French firms we found the decline in the use of FX derivatives was greater for firms with substantial sales within the euro zone and less for firms in industries that still had significant imports from outside the euro zone. The focus on derivatives adds to existing research, as it is a more explicit indicator of a reduction in the resources devoted to hedging. The reduction in hedging was not in direct proportion to the reduction in FX exposure, implying that euro risk was hedged more intensely than French franc risk in the sample of French firms over the chosen years.