Do weak supervisory systems encourage bank risk-taking?

Weak bank supervision could give banks the ability to shift risk from themselves to supervisors. We use cross-border bank mergers as a natural experiment to test changes in risk and the impact of supervision. We examine cross-border bank mergers and find that the supervisory structures of the partners’ countries influence changes in post-merger total risk. An acquirer from a country with strong supervision lowers total risk after a cross-border merger. However, total risk increases when the target bank is located in a country with relatively strong supervision. This result is consistent with strong host regulators limiting the risky activities of their local banks. Foreign-owned competitors could then engage in the risky projects, especially if the foreign banks’ supervisors are not strong. An acquirer entering a country with strong supervision appears to shift risk back to its home country. The results suggest that bank supervisors can reduce total banking risk in their countries by being strong.     

The Continued Dumping and Subsidy Offset Act: An Economic Analysis

Under the Continued Dumping and Subsidy Offset Act (CDSOA) of 2000, the U.S. government distributes the revenue from anti-dumping and countervailing duties to domestic firms alleging harm. In this article, we develop a simple model to examine the economic effect of the CDSOA. For the case in which the “offset payments” to domestic firms are linked to the volume of foreign imports, the CDSOA may increase foreign imports when the domestic market is more competitive than in the Cournot equilibrium. This finding runs contrary to what the E.U. and some exporting countries have claimed. But if the market is less competitive than in Cournot, the CDSOA becomes an instrument of trade protectionism.     

Relationship between Machiavellianism and Type A personality and ethical-orientation

Results of a study investigating the relation between personality traits and ethical-orientation indicate sex is not an good predictor for differences in Machiavellian-, Type A personality- or ethical-orientation. Intelligence is found to be positively associated with Machiavellian- and Type A personality-orientation but negatively associated with ethical-orientation. Machiavellians tend to have Type A personalities, but tend to be less ethically-oriented than Nonmachiavellians. Type A personalities are more ethically-orientated than Type B personalities. John Michael Rayburn is Professor of Marketing, The University of Tennessee at Martin. He earned his DBA and has extensive experience in the health care industry as administrator of a 1,000 bed hospital; a 174 bed state psychiatric hospital; and President and CEO of a 200 bed hospital system. He has numerous articles and presentations and is a member of several professional organizations. He has recently received two outstanding teaching awards [student and faculty vote], the outstanding service award [faculty vote], and excellence in research awards [outside peer review]. He has recently implemented a business ethics course in the school of business administration. Letricia Gayle Rayburn, is Professor of Accountancy, Southeast Missouri State University College of Business Administration. She is also a Certified Cost Estimator/Analyst. She earned a Ph.D. in Accountancy and has had both public and industrial accounting experience. She is the author of over 120 published professional articles. Her book Cost Accounting: Cost Management Concepts, is published by Richard D. Irwin. She is also the author of another book entitled Financial Tools for Effective Marketing and co-author of a book entitled Financial Accounting. She is currently past president of the Management Accounting Section, American Accounting Association. She has served a three-year term as a member of the Board of Regents of the Institute of Certified Management Accountants of IMA, as a member of the Committee on Research of IMA and on various other AAA Management Accounting Sections, IMA, and AICPA Committees. Dr. Rayburn is a member of AICPA, Institute of Management Accountants, American Accounting Association, Beta Alpha Psi, and Beta Gamma Sigma.     

Contingent contingency: Knowledge heterogeneity and new product development performance revisited

This paper re-conceptualizes the meaning of knowledge heterogeneity—an important but under-developed collective-level concept that influences innovation. The new conceptualization extends the construct of knowledge heterogeneity beyond the traditional assessments of variability in professional background. This research further explores the quadratic relationship between knowledge heterogeneity and new product development performance. Drawing on and synthesizing knowledge clarity and uncertainty avoidance literature to consider work context, the possibility of a positive quadratic, rather than a linear or a negative quadratic, relationship between knowledge heterogeneity and innovation is suggested. This relationship is explored using data collected from 128 new product development teams from companies in knowledge-intensive and innovation-oriented industries located in Taiwan. Results are discussed in terms of the hypothesized positive quadratic relationship. The outcome of the study is discussed in terms of the influence of the knowledge structure and cultural factors, which suggest potential contingent contingencies across different contexts.     

Cooling off and backing out: Understanding consumer decisions to rescind a product purchase

Consumers sometimes have the right to exit a sales contract during what is known as a cooling-off period. Sales process research generally does not address cases when consumers withdraw from sales contracts during this period. Since securing product sales involves substantial marketing and sales costs, a need exists to better understand not only consumer rescission decisions and their legal context but also the managerial implications of the cooling-off period. This exploratory qualitative study examines purchase rescinding and develops a conceptual model using timeshare as the context. Results suggest that rescission relates to a mismatch between product features and personal circumstances, post-purchase concerns about product value, reassessment of financial capability, reflections on sales presentations, and cautionary influences of reference groups.     

III. Weltwirtschaft und Wirtschaft einzlner Länder und Gebiete

Ohne Zusammenfassung     

Discussion of the new economic world order

It is difficult to know what to make of the present discussion about a New International Economic Order although it is certainly lively enough. Few observers can be able to point out the various levels at which arguments are bandied. Hardly anybody can distinguish a clear pattern in the variety and diversity of assertion and counter-assertion, of proposal and counter-proposal. It is often not even known how comprehensive and far-reaching the demands for a New Order are in reality. It would therefore seem to be a sensible undertaking to try to trace the structure of the discussion and make it hereby more intelligible.