Do Corporate Governance Motives Drive Hedge Fund and Private Equity Fund Activities?

We document empirical evidence that both hedge fund (HF) and private equity fund (PE) investments are driven by corporate governance improvements, but address different types of agency conflicts. Whereas HFs focus on firms without a controlling shareholder, in particular family shareholders, PEs invest in firms with low managerial ownership. Both appear to address free cash flow problems differently. Aiming at increasing dividends, HFs tend to use commitment devices that can be implemented over a short horizon. PEs are inclined to longer‐term strategies: they target firms that are particularly well suited for leverage increases because of low expected financial distress costs.     

Explicit relative performance evaluation in performance-vested equity grants

Using data from FTSE 350 firms, we examine factors influencing explicit relative performance evaluation (RPE) conditions in performance-vested equity grants. We provide exploratory evidence on whether the use or characteristics of RPE are associated with efforts to improve incentives by removing common risk, other economic factors discussed in the RPE literature, or external pressure to implement RPE. We find that many of these economic factors, including common risk reduction, are more closely related to specific relative performance conditions than to the firm-level decision to use RPE in some or all of their equity grants. We also find that greater external monitoring by institutional investors or others is associated with plans with tougher overall RPE conditions. The relative performance conditions are binding in most RPE plans, with nearly two-thirds of the grants vesting only partially or not vesting at all. Further, we find evidence that vesting percentages vary in RPE and non-RPE plans.     

Using involvement to enhance employee engagement in IT firms: examining leadership initiatives in a key developing national context

Many organisational leaders increasingly use employee involvement to serve their interests, spurred by the unitarist rationale of leader‐member exchange (LMX). Existing research into employee involvement and participation (EIP) management has mainly focused on manufacturing firms in advanced economies and has not kept pace with developments in settings where practice is primarily governed by organisational leaders plus greater use is made of informal and technologically assisted EIP. Consequently, this paper investigates the management of EIP in IT firms at the forefront of these developments in India. The findings reveal how an array of informal initiatives, including social media, are being used to permeate traditional LMX and EIP boundaries to reinforce unitarist leadership goals. Limitations to some of these initiatives are elucidated, as they are unevenly used and contested by employees. Thus, the paper contributes to critiques of LMX as an ancillary framework for EIP.     

Electronic monitoring in public organizations: evidence from US local governments

Technology use in the workplace expands the ability to monitor employees through activities such as website tracking, email scanning, and social media monitoring. Monitoring is a fundamental aspect of the relationship between organizations, employees, and stakeholders and can affect perceptions of privacy, autonomy, and trust in the workplace. However, electronic monitoring is little investigated in public management research and we have minimal knowledge about the factors that prompt public managers to adopt electronic monitoring. Focusing on small- and medium-sized US municipalities, we investigate types of electronic monitoring and how organizational, sociopolitical, and technological factors shape electronic monitoring intensity. We test our hypotheses with data from a 2014 national survey of 2,500 local managers, website coding data, and US Census data. We find that electronic monitoring, especially monitoring online activities, is a response to organizational centralization, participation of internal stakeholders, social media use, and technology concerns.     

International business careers in the United States: salaries,advancement and male—female differences

This paper uses a survey of 514 professional employees to analyse salaries and careers in international business in the United States. Internationally oriented skills are inconsistently rewarded, and persons in internationally focused occupations are compensated at about the same level as their domestically oriented counterparts. Women receive smaller pay-offs than men for qualifications, including international ones. Thus, the human resource management practices of many American firms may not be consistent with these firms' strategies for competing in global markets.     

Accounting enlightenment in the age of reason

We scrutinize the role financial reporting for fair values, asset securitizations, derivatives and loan loss provisioning played in the Financial Crisis. Because banks were at the center of the Financial Crisis, we focus our discussion and analysis on the effects of financial reporting by banks. We conclude fair value accounting played little or no role in the Financial Crisis. However, transparency of information associated with asset securitizations and derivatives likely was insufficient for investors to assess properly the values and riskiness of bank assets and liabilities. Although the FASB and IASB have taken laudable steps to improve disclosures relating to asset securitizations, in our view, the approach for accounting for securitizations in the IASB's Exposure Draft that would require banks to recognize whatever assets and liabilities they have after the securitization is executed better reflects the underlying economics of the securitization transaction. Regarding derivatives, we recommend disclosure of more disaggregated information, disclosure of the sensitivity of derivatives' fair values to changes in market risk variables, and implementing a risk-equivalence approach to enable investors to understand better the leverage inherent in derivatives. We also conclude that because the objectives of bank regulation and financial reporting differ, changes in financial reporting needed to improve transparency of information provided to the capital markets likely will not be identical to changes in bank regulations needed to strengthen the stability of the banking sector. We discuss how loan loss provisioning may have contributed to the Financial Crisis through its effects on procyclicality and on the effectiveness of market discipline. Accounting standard setters and bank regulators should find some common ground. However, it is the responsibility of bank regulators, not accounting standard setters, to ensure the stability of the financial system.     

COACHING COSTS AS TULLOCK COSTS: A MODEL OF RISING COACHING SALARIES

Escalating sports coaching costs have strained budgets at many universities. This paper analyses these expenditures as a form of Tullock Costs ( Tullock, 1967 ). In this framework the money the universities receive is spent on recruiting top talent, so the schools receive little, or no, monetary gain under current scholarship rules.     

The complexity of managing human resources in Peru

This article describes how the politics of human resources have changed in Peru, and how this change played an important role in the reforms that occurred throughout the 1990s. Throughout the article, we examine how the size and the type of organization influence the generation of human resource management. For example, some medium-sized businesses have successfully integrated their human resource management with its central competencies, experiencing positive economic and financial business results. Other companies chose to circumvent human resource management issues by outsourcing or using contract workers, relegating the role of human resources to a peripheral role. Transnational organizations bring many methods and selection processes, promotions, evaluations, training and salary determination. The article ends with a comparative analysis between the formal and informal sector of the national economy with respect to human resources practices.     

Learning to stay ahead in an uncertain environment

As the work environment changes and careers become increasingly fragmented in contemporary society, workers need to ensure that they remain attractive hires to current and future employers. The advent of boundaryless careers, for example, in this era of turbulence has shifted the responsibility for career management and development from the organization to the employees. This research explores the careers of a cross-section of the Hong Kong (China) labour force and their attitudes and behaviours towards life-long learning, which is proposed here to be central to individuals maintaining their marketability and employability. The qualitative data collected in this study depicts these Chinese workers as being strongly self-motivated and possessing very positive attitudes towards learning. However, while most seemed to have a genuine commitment to enhancing themselves, stimulated by a consciousness of the growing and changing demands placed on them by employers in a dynamic knowledge-based society, the findings indicate that many interviewees were driven more by a fear of the consequences of not engaging in continuous learning, than by an intrinsic desire to learn.