Bilateral Tax Treaties and GDP Comovement

Using a 30‐year panel of quarterly gross domestic product (GDP) fluctuations from of a broad set of countries, we demonstrate that the signing of a bilateral tax treaty increases the comovement of treaty partners' business cycles by half a standard deviation. This effect of fiscal policy is as large as the effect of trade linkages on comovement and stronger than the effects of several other common financial and investment linkages. We also show that bilateral tax treaties increase comovement in shocks to nations' GDP trends, demonstrating the permanent effects of coordination on fiscal policy rules. We estimate trend and business cycle components of nations' output series using an unobserved‐components model in order to measure comovement between countries and then estimate the impact of tax treaties using generalized estimating equations.     

Organic certification,export market access and the impacts of policy: Bayesian estimation of avocado smallholder “times‐to‐organic certification” in Michoacán Mexico

This study analyzes organic adoption decisions using a rich set of time‐to‐organic durations collected from avocado small‐holders in Michoacán Mexico. We derive robust, intrasample predictions about the profiles of entry and exit within the conventional‐versus‐organic complex and we explore the sensitivity of these predictions to choice of functional form. The dynamic nature of the sample allows us to make retrospective predictions and we establish, precisely, the profile of organic entry had the respondents been availed optimal amounts of adoption‐restraining resources. A fundamental problem in the dynamic adoption literature, hitherto unrecognized, is discussed and consequent extensions are suggested.     

Cultural change that sticks

When a major change initiative runs aground, leaders often blame their company's culture for pushing it off course. They try to forge ahead by overhauling the culture--a tactic that tends to fizzle, fail, or backfire. Most cultures are too well entrenched to be jettisoned. The secret is to stop fighting your culture--and to work with and within it, until it evolves in the right direction. Today's best-performing companies, such as Southwest Airlines, Apple, and the Four Seasons, understand this, say the authors, three consultants from Booz & Company. These organizations follow five principles for making the most of their cultures: 1. Match strategy to culture. Culture trumps strategy every time, no matter how brilliant the plan, so the two need to be in alignment. 2. Focus on a few critical shifts in behavior. Wholesale change is hard; choose your battles wisely. 3. Honor the strengths of the existing culture. Every culture is the product of good intentions and has strengths; put them to use. 4. Integrate formal and informal interventions. Don't just implement new rules and processes; identify "influencers" who can bring other employees along. 5. Measure and monitor cultural evolution. Otherwise you can't identify backsliding or correct course. When the leaders of Aetna applied these rules while implementing a new strategy in the early 2000s, they reinvigorated the company's ailing culture and restored employee pride. That shift was reflected in the business results, as Aetna went from a $300 million loss to a $1.7 billion gain.     

The Politics of Resistance: Informal banks in the Caribbean

Informal banks are as relevant as they were in slave times because they are creating financial alternatives for marginalized people. I explore this issue with an empirical study of 398 business people in the slums of Jamaica and Guyana. I use intersectionality theorizing to explain that poor women organize local banks as a form of contestation against the threat of violence, partisan and informal politics. Women from poor communities mobilize economic resources through mutual aid to resist dependence on corrupt political systems and exclusionary financial institutions. I argue that the banker ladies reorganize money markets for themselves and others. By organizing inclusive financial programs the banker ladies also build social capital through managing locally-based economic resources.     

The effects of firm size and firm performance on CEO pay in Canada: A Re-Examination and Extension

Using insights from academic and practitioners' perspectives and recent data, this paper extends the literature by using pay variables that are typically used by practitioners, including those not studied in previous academic research. Consistent with previous findings, firm size, measured by three-year average revenues, has strong effects on CEO pay. However, the relationship is not the same for firms of different sizes. Revenue elasticity is strong among small companies and disappears for medium and large companies. Firm performance, measured by accounting-based measures (return on assets and return on equity), and market-based measures (total shareholder return and shareholder value), have little effects on CEO cash compensation, but strong positive effects on equity compensation. Implications for research and practice are discussed.     

Work,travel and home: a study of remembrance activity

A quantitative study conducted in the Australian regional city of Ballarat resulted in a sample which had a high proportion of people with a personal connection to war and remembrance through family. This connection was reflected in higher levels of visitation to local, state and overseas war memorials. A factor analysis suggested that some kinds of remembrance could be grouped into a three part structure based upon creative activities of Work such as writing history, volunteer and paid military work and collecting, Travel to overseas and domestic memorials and informal appreciation of artefacts at Home. The Home group represents the most frequent form of remembrance, practiced at a social scale and which results from the creative activity of individuals. The study therefore supports the notion that individual and social remembrance and memory are closely linked and can be identified with patterns of travel. A potentially large group of people who appeared to have little interest in war remembrance was also identified.     

The first steps towards harmonizing public sector accounting for European Union member states: strategies and perspectives

This paper analyses the process that led the European Commission to the decision to develop European Public Sector Accounting Standards (EPSAS) for harmonizing public sector accounting practices within the European Union. The paper finds that there was limited scope in terms of stakeholder participation in the public consultation that served as a basis for the decision. In addition, the decision to adopt EPSAS for EU member states raises questions on the relationship between regional and global governance in the area of public sector accounting.