Capitalisation of R&D and the informativeness of stock prices: Pre- and post-IFRS evidence

We examine whether requiring (IFRS) versus allowing (UK GAAP) conditional capitalisation of development expenditure affects the extent to which capitalisation conveys more information about future earnings, relative to expensing. We show that capitalisation results in current returns incorporating more future earnings information than expensing under UK GAAP but not under IFRS. i.e., the amount of information incorporated into market prices of capitalisers is the same as that from firms expensing R&D under IFRS. This result holds irrespective of a firm’s earnings management incentives or strength of corporate governance for the period under IFRS. We argue that this is because investors experience greater uncertainty regarding the realisation of future economic benefits associated with the development costs capitalised in the post-IFRS period. Consistent with this, we do find a positive association between capitalised R&D and future earnings variability in the post-IFRS period only, as well as short-term positive abnormal returns for capitalisers relative to expensers in the pre-IFRS period only. Overall, these findings suggest that when moving away from a standard that offers an overt option to capitalise or expense, capitalisation comes with greater uncertainty, which is resolved only in the long term.     

Understanding the effect of market orientation on circular economy practices: The mediating role of closed-loop orientation in German SMEs

The implementation of circular economy (CE) practices is considered a key driver towards sustainable development of firms. Earlier studies point to the general strategic approach of market orientation as an antecedent to CE practice implementation. Still, insights are limited as the mechanisms underlying this relationship remain unclear. Based on a sample of 121 German small and medium-sized enterprises (SME), we empirically examine how the strategic approach of closed-loop orientation mediates the relationship between market orientation and the implementation of three types of CE practices. Using structural equation modelling, we find that while market orientation is positively related to all three types of CE practices, closed-loop orientation mediates these relationships for only two. Our study extends CE literature by suggesting that market orientation is translated into closed-loop orientation to spur CE practice implementation. We also offer a differentiated understanding of CE practice implementation in the context of German SMEs.     

Digitalisierungsschub in Firmen während der Corona-Pandemie

Wirtschaftsdienst - Durch die Corona-Pandemie haben digitale Technologien in Unternehmen an Bedeutung gewonnen. Auf Basis einer Betriebsbefragung des Instituts für Arbeitsmarkt- und...     

Training for business start-up in Scotland — the gender dimension

This paper looks at two examples of business start-up training in Scotland which have specifically targeted women, both younger women entering the labour market for the first time and older women who are either unemployed or returning to the labour market after raising a family. We argue that women face a double disadvantage in trying to start up and run their own business. Traditionally women have not been seen as business owners and are under represented in the small business sector. Secondly women perform a dual role in that they are almost always responsible for domestic and family concerns, whether they are economically active or not. We recognise that “gender constraints” exist and discuss the training programmes we have developed which in their style, content and timing set out to meet the special needs of women contemplating self employment.     

谁是北岩银行的“救命稻草”

北岩银行年初还因金融创新受到英国金融当局的褒奖，谁成想，仅仅9个月过后北岩银行的高管就沦落到人人指责的境地。     

Risk Premia in Foreign Currency Futures

This paper tests the uncorrelatedness of increments of daily foreign currency futures prices and derives implications for risk premia based on a heteroscedasticity-robust variance ratio test. There is evidence suggesting the existence of a time-varying risk premia. Moreover, the results suggest that currency futures price is not an unbiased predictor of currency spot price on corresponding maturity date of currency futures contract. The paper also applies a heteroscedasticity-adjusted Box-Pierce Q test to the same data set for comparison.     

Family meals and disparities in global ecosystem dependency. Three examples: Ghana,Russia and Sweden

This article highlights globalization in terms of dependency on local and global ecosystems when it comes to family diets. In an exploratory case study, one typical meal in three household settings in different parts of the world: Ghana, Russia and Sweden, is examined. Food paths are traced to compare the scale of ecosystem dependency. The result shows that ecosystem dependency varies greatly with implications for environmental impact. The Swedish household, as opposed to the Ghanaian and the Russian, is not dependent on local ecosystems for food provision, but increasingly on global systems. Opportunities and constraints for lowering environmental impacts related to diets in different economies are discussed. It is concluded that it is of great importance to create awareness in high‐income countries of the dependency on the global ecosystem and the resulting environmental impacts. It is in these countries that opportunities are available for change towards more sustainable diets. It is suggested that further research need to explore in greater depth how ecosystem dependency differs and how that translates into broad spectra of environmental impacts, considering other dimensions of sustainable development as well.     

Organizational change cynicism: The role of employee involvement

Organizational change efforts can bring about a range of outcomes: some intended, such as organizational survival and profitability, and some unintended, such as heightened levels of organizational change cynicism (OCC) among employees. This article focuses on processes for managing OCC: we examine the role of information sharing and involvement in decision making as ways to lessen employee reports of OCC. While both of these strategies have the potential to be effective, they rest on a significant assumption—namely, that employees will enthusiastically embrace any opportunities to become involved. In this research, we investigate this assumption through an analysis of the relationship between an employee's willingness to become involved (”active orientation”) on employee reports of their OCC. We find, using data from 1,214 public‐sector employees, that an active orientation toward involvement plays a significant role as a moderator in reducing employee reports of OCC. The findings suggest that HR practitioners concerned about OCC should encourage their line managers to adopt a participatory style of management (information sharing, involvement in decision making), especially in those workplaces where employees are more likely to embrace the opportunities for involvement. © 2008 Wiley Periodicals, Inc.