Governance,ownership structure,and performance of IPO firms: the impact of different types of private equity investors and institutional environments

This paper examines performance effects of ownership concentration and two types of private equity investors (venture capitalists and business angels) in firms that have recently undergone an initial public offering (IPO) in the United Kingdom and France. We expand and contextualize nascent understanding of multiple agency theory by examining heterogeneity of private equity investors and by suggesting that multiple agency relationships are affected by different institutional contexts. We employ a unique, hand‐collected dataset of 224 matched IPOs (112 in each country). Controlling for the endogeneity of private equity investors' retained share ownership, we find support for the agency theory argument that concentrated ownership improves IPOs' performance. The research also shows that the two types of private equity investors have a differential impact on performance, and the legal institutions in a given country moderate this impact. Copyright © 2009 John Wiley & Sons, Ltd.     

The non-monotonicity of the bias and mean squared error of the two stage least squares estimators of exogenous variable coefficients

Owen (1976) [Owen, A.D., 1976. A proof that both the bias and mean squared error of the two stage least squares estimator are monotonically non-increasing functions of sample size. Econometrica 44, 409–411.] has shown that in a two equation static simultaneous equation model both the bias and mean squared error of the two stage least squares estimator of the endogenous variable coefficient are monotonically non-increasing functions of the sample size. This paper shows that neither property carries over to the exogenous variable coefficient estimator.     

A Multinational Comparison of Key Ethical Issues, Helps and Challenges in the Purchasing and Supply Management Profession: The Key Implciations for Business and the Professions

This paper presents the findings of a study of purchasing and supply management professionals in India conducted to identify the key ethical issues they face in carrying out their work related responsibilities as well as to determine the extent to which various factors appear to be helpful or to present challenges to their efforts to act ethically in the course of their work. The Indian findings are then compared to those for studies conducted among purchasing and supply management professionals in the United States, United Kingdom and Canada. Key findings for the four studies are summarized and implications for business and the professions are presented.     

It's 2020: What is Accounting Today?

Based on the acceptance of the importance of clear definitions and concepts, we explore conventional definitions of accounting and chart their change and development. While accounting's definitions have evolved, they do not, in our view, adequately reflect accounting as social and moral practice but rather continue to position accounting as a technical practice, despite the valuable work of key accounting scholars particularly over the last four decades. We highlight the social and moral aspects of accounting and propose a new definition of accounting for the 2020s to stimulate discussion, debate and improvement. In our opinion, accounting has a way to go to reach its true potential.     

An emerging Korean youth culture,Rail-ro: the application of cultural consensus analysis to domestic rail travel experiences

This study deals with an emerging domestic rail travel phenomenon among Korean youth, known as Rail-ro (Railo), which has influenced aspects of youth culture and domestic tourism in Korea since 2007. The purpose of this study is to determine whether Railo experiences exist as a coherent culture among Railers based on cultural consensus analysis. The result indicates Railers’ strong agreement about Railo experiences, which reinforces the view that a particular rail pass could be instrumental in forming a distinct youth travel subculture. This study demonstrates how travel culture driven by the seasonal rail pass supports domestic tourism and inbound tourism.     

Corporate governance,external market discipline and firm productivity

Using a sample of Australian companies over the 2000–2005 period, we examine the impact of internal corporate governance on firm's total factor productivity, taking into account the interaction between internal governance and external market discipline. Our empirical findings point to a substitution effect between product market competitiveness and firm-level corporate governance. Overall, internal corporate governance mechanisms – more efficient boards and greater CEO stock-based compensation – are effective instruments for improving firm productivity. However, internal governance is less effective when a firm faces a highly competitive product market. We find only weak empirical support for an association between firm's ownership structure and productivity, and no support for an association between industry takeover intensity and firm productivity.     

Why do firms hold so much cash? A tax-based explanation

US corporations hold significant amounts of cash on their balance sheets. This paper develops and tests the hypothesis that the magnitude of US multinational cash holdings are, in part, a consequence of the tax costs associated with repatriating foreign income. Consistent with this hypothesis, firms facing higher repatriation taxes hold higher levels of cash, hold this cash abroad, and hold this cash in affiliates that trigger high tax costs when repatriating earnings. In addition, less financially constrained firms and those that are more technology intensive exhibit a higher sensitivity of affiliate cash holdings to repatriation tax burdens.     

Local Responses to Long-term Unemployment: Delivering Access to Employment in Edinburgh

This paper examines locally developed policy responses to long-term unemployment in the city of Edinburgh: a labour market characterised by relatively low-unemployment and generally high levels of demand. Drawing upon in-depth interviews with 115 long-term unemployed people residing in the city, the paper first analyses the complex combination of barriers to work faced by members of this client group. Two recent labour market initiatives, developed by the local authority in partnership with other public and third sector agencies and (in one case) major employers, are then discussed. It is suggested that this locally focused, partnership-based approach may provide a useful model for local policy responses to long-term unemployment, particularly in buoyant labour markets.