Offsetting the implicit incentives: Benefits of benchmarking in money management

Money managers are rewarded for increasing the value of assets under management. This gives a manager an implicit incentive to exploit the well-documented positive fund-flows to relative-performance relationship by manipulating her risk exposure. The misaligned incentives create potentially significant deviations of the manager’s policy from that desired by fund investors. In the context of a familiar continuous-time portfolio choice model, we demonstrate how a simple risk management practice that accounts for benchmarking can ameliorate the adverse effects of managerial incentives. Our results contrast with the conventional view that benchmarking a fund manager is not in the best interest of investors.     

Specialization and Success: Evidence from Venture Capital

This paper examines how organizational structure affects behavior and outcomes, studying the performance of different types of venture capital organizations. We find a strong positive relationship between the degree of specialization by individual venture capitalists at a firm and its success. When the individual investment professionals are highly specialized themselves, the marginal effect of increasing overall firm specialization is much weaker. The poorer performance by generalists appears to be due to both an inefficient allocation of funding across industries and poor selection of investments within industries. Venture capital organizations with more experience tend to outperform those with less experience.     

Employer branding: Attracting and retaining talent in financial services

This study develops and investigates a framework for better understanding employer branding. More specifically, the overall purpose is to provide a deeper understanding on how employer branding is used to attract and retain talent. An extensive literature review leads to a proposed conceptual framework focusing on two key research questions: How can the relationship between corporate branding, internal branding and employer branding in service industries be described? And, How can the role of corporate values in delivering the brand promise be described? A qualitative, case study approach is used to collect data from a financial services company in Sweden. The data collected and analyzed reveals that the areas of employer, internal and corporate branding are not mutually exclusive, but instead an intertwined collection of branding issues that together form the corporation’s core values. All of this together is what allows the corporation to in turn deliver its brand(s) promise to several stakeholder groups.     

Tourism in the Great Limpopo Transfrontier Park

The Great Limpopo Transfrontier Park (GLTP) is a transboundary protected area that straddles the borders of Mozambique, South Africa and Zimbabwe. The park's development was partly motivated by the ecological objective of re-establishing traditional migratory wildlife routes once fences between the three countries are dismantled. Besides biodiversity conservation benefits, the park may also provide a basis to generate revenue for conservation and local economic development through tourism. This paper describes current state and private sector tourism within the GLTP and planning initiatives that may promote responsible tourism, and describes the achievements by community-based tourism enterprises and public–private partnerships in generating economic, social and environmental benefits. The livelihoods of people living in the park are outlined in relation to government policies on land redistribution, resettlement and options for the future, and progress in biodiversity conservation and responsible nature-based tourism development within the GLTP over the past five years is evaluated.     

Notes and Communications

Summary The relationship between home ownership of Dutch elderly households and age is strongly negative. Other studies suggest that this age gradient should be attributed to a cohort effect. In this paper, we investigate where those cohort effects come from. We also observe that mortgage ownership among elderly home owners increased considerably during the nineties. Using panel data, we estimate models explaining home and mortgage ownership by age, cohort, and time effects, as well as other factors. Cohort and time effects are modelled explicitly using macro economic and housing market related variables. We find that the level of GDP per capita when the household head was young is the main factor explaining generation effects in home ownership among the elderly. After accounting for cohort effects it also appears that home ownership decreases slightly with age. Mortgage ownership among elderly home owners rose considerably during the nineties due to house price increases and due to financial innovation in the mortgage market. Cohort effects are also important. A supplementary analysis suggests that those cohort effects are due to the fact that the accidental bequest motive is becoming less important. We thank Maarten van Rooij, Konstantinos Tatsiramos, Casper van Ewijk, Wouter Vermeulen, Frederic Vermeulen, Frank de Jong and Marcel Lever for their useful comments     

Did primary healthcare user fee abolition matter? Reconsidering South Africa's experience

South Africa waived user fees for primary healthcare in 1994 and, again, in 1996. The first waiver focused on young children, elderly adults, pregnant women and nursing mothers, while the 1996 reform waived fees for the remainder of the population, subject to means tests. We take advantage of household survey information to examine the impact of the policy on a subset of the reform-eligible population. Although it was expected that public healthcare facility usage would have increased post reform, no statistically significant evidence supported such a claim. Therefore, our results are consistent with some very recent research examining the 1994 reform, but are generally at odds with the general impression in the literature that user fee abolition matters when it comes to alleviating inequities in access to healthcare.     

Sources of competitive advantage in high performing exporting companies

The requirements for success in export market ventures are likely to differ not merely from the critical success factors in the domestic market, but also from the policies effective in the fully internationalized or global enterprise. Exporting activities are a vitally important area of international business, where the foundations for superior performance are not well understood. A recent study of export market ventures in the U.K. links superior exporting performance to the establishment of key competitive advantages, which may be traced to foundations in specific competencies (competitive skills in exporting) and capabilities (competitive resources in exporting). This simple model of the sources of superior export performance and this study's findings provide important insights for executives.     

The impact of culture on consumers’ perceptions of service recovery efforts

The increasing globalization of business provides a compelling reason for understanding the cultural context of consumer behavior. The research reported here examines the impact of culture on consumers’ perceptions of service recovery efforts. In particular, we studied in an experimental setting, across East-West cultures, the combined effects of explanation and compensation in shaping customers’ attributions and post-recovery perceptions in a medium contact service—a restaurant setting. Our findings show that the differential sensitivity of East Asian and American consumers to situational constraints influence their attributions for service failures, and thus moderate their satisfaction with service recovery process. More specifically, the results suggest that a causal explanation for service failure decreases the likelihood of US consumers falling prey to the fundamental attribution error. Conversely, among East Asians, an explanation had minimal influence in attributional processes. Finally, our results indicate that attributional processes influence customer perceptions of employee effort, which in turn is linked to post-recovery satisfaction.     

海水产品地理标志保护的制度模式与对策思考

农产品地理标志保护是我国加入WTO以后在知识产权领域的重大制度变革。文章认为,海水产品作为农产品的一种类型也理应得到同样保护。目前,由于海水产品的特殊性质以及我国地理标志法律制度的缺陷,海水产品地理标志保护存在一定难度,需要从制度和实践层面加以完善。