The Role of Ethics and Social Responsibility in Organizational Success: A Spanish Perspective

Ethics has assumed a dominant position in the current economic debate, and this study focuses on ethics as a legitimate underpinning to good business decision making. Using a self-response survey of marketing managers in Spain, the current theory on ethical decision making is extended. Results support the mediating influence of the PRESOR construct (an individual’s perception of the importance of ethics and social responsibility for the effectiveness of the organization) on relativistic and idealistic moral thinking when one is considering the moral intensity of a situation. In addition, the study found support for the relationship between relativism (negative), idealism (positive), corporate ethical values, and job satisfaction, thereby providing additional support for the prior theory. Finally, a thorough review of the extant literature and suggestions for future ethics research in the marketing field are included.     

Habit persistence in assets demand

Habit persistence is examined for six asset demand categories using U.S. data and a dynamic forward-looking model. We find habit persistence is greater for more liquid assets compared to riskier assets and may in part explain low holdings of riskier assets. Cash assets are found to be substitutes with other liquid assets under habit formation. Consistent with portfolio analysis, the riskier asset categories of money market mutual funds and bonds are found to be complements in use. The three more risky asset categories have budget elasticities greater than unity indicating that in the long run consumers are more likely to turn to these assets as their wealth increases.     

Stock exchange competition in a simple model of capital market equilibrium

This paper uses a simple model of mean-variance capital markets equilibrium with proportional transactions costs to analyze the competition of stock markets for investors. We assume that equity trading is costly and endogenize transactions costs as variables strategically influenced by stock exchanges. Among other things, the model predicts that increasing financial market correlation leads to a decrease of transaction costs, an increase in cross-border trading activity, and to a decrease in the home bias of international equity flows. These predictions are consistent with the recent evolution of international stock markets.     

Contracts for dummies? The performance of investors in contracts for difference

Investors widely use contracts for difference (CFDs) to leverage and short sell underlying financial assets. We investigate the after cost performance of investors in Australian Securities Exchange listed share CFDs, and find that market order CFD trades earn small positive returns at the daily horizon, with negative returns reported for one month to one year horizons due to financing costs. Market orders also net sell positions, which suggests that investors use CFDs for shorting opportunities. Overall, we find that liquidity demanders in CFDs obtain favourable execution, which is inconsistent with the view that CFDs are used by naive individuals.     

Financial globalization, financial crises and contagion

Two observations suggest that financial globalization played an important role in the recent financial crisis. First, more than half of the rise in net borrowing of the U.S. non-financial sectors since the mid-1980s has been financed by foreign lending. Second, the collapse of the U.S. housing and mortgage-backed-securities markets had worldwide effects on financial institutions and asset markets. Using an open-economy model where financial intermediaries play a central role, we show that financial integration leads to a sharp rise in net credit in the most financially developed country and to large asset price spillovers of country-specific shocks to bank capital. The impacts of these shocks on asset prices are amplified by bank capital requirements based on mark-to-market.     

Facilitating multimodal logistics and enabling information systems connectivity through wireless vehicular networks

The adoption of information and communication technology (ICT) has made it possible to experience high levels of visibility, control and connectivity across the entire supply chain. However, in road transport logistics, wireless ICT applications like cellular networks, Wi-Fi, UMTS, 4G and WiMax have not entirely solved reliability and connectivity problems due to difficulties associated with limited range, scalability and security. This paper examines the feasibility of using a vehicular network technology, dedicated short range communication (DSRC), in a multimodal logistics environment as means of providing enhanced visibility and connectivity using a secure access architecture. The secure access architecture is necessary to provide a high degree of security to the detailed visibility involving road haulage feeding port operations using a centralised port service.     

Data-mining,GIS and multicriteria analysis in a comprehensive method for bicycle network planning and design

In many Brazilian cities, the most common procedure for planning cycling networks is using aggregated population data in census tracts, which may not take into account the true origin and destination of trips. It may also not identify potential users of a particular mode of transport. This is particularly important considering that implementing cycling infrastructures should be based on the assumption that they are able to meet the users' needs. Therefore, the aim of this study is to develop and adopt an objective method to design and compare cycling networks based on data-mining of disaggregated origin-destination data, GIS resources, and multicriteria analysis techniques. The method follows three steps: 1) identifying potential users based on real user profiles, 2) designing proposed cycling networks and 3) a comparison between the networks proposed in this study and those developed by the municipality selected as a case study, considering real and potential users, as well as cost and benefit criteria. As a positive outcome, using disaggregated data allows for a reasonable estimate of the number of people served by the networks, a detailed analysis of their proximity to the infrastructure, as well as identifying potential users. Comparing cycling networks considering cost and benefit criteria shows that the chosen criteria were effective. It was also determined that the cycling network of the studied city poorly serves bicycle transport users, if compared to the proposed networks. These findings indicate that appropriate methods for planning cycling networks are still needed.     

An integrative model of the role of knowledge in the internationalization process

Knowledge is considered an essential resource in a company’s internationalization process, both from the sequential point of view and from the perspective of International Entrepreneurship. This paper proposes a model to integrate the influence of knowledge on international behavior based on proposals taken from the literature on organizational learning in multinational companies. The model comprises several phases: prior knowledge; acquisition of new knowledge; integration of both sets of knowledge; action and feedback. Using the proposed model, different courses of action are identified for further research into the process of company internationalization.     

UK Assessment: Can Recession be Avoided?

There is a growing danger that the UK will suffer a serious recession in 1999. In this article, Adrian Cooper assesses the risks to the OEF/LBS forecast and considers what steps policy-makers might take to support demand and activity. With the weakness of consumer and business confidence currently posing the biggest threat, they must be seen to be decisive, with further substantial interest rate cuts essential.