International diversification and industry-related labor income risk

Do equity markets help diversifying away industry-related labor income risk? This paper reconsiders the hedging role of stock markets by focusing on international equity diversification, rather than domestic asset allocation, and on industry wage, rather than individual labor income. We compare industry-based portfolio holdings to the one that is optimal for an investor endowed with the average home-country labor income. Our results resurrect the role of equities in hedging wage risk by uncovering remarkable heterogeneity across industries within each investing country. Our analysis also delivers insights concerning the role of occupational pension funds in designing optimal portfolios for their members.     

The Impact of Risk Management Standards on Patient Safety: The Determinants of MRSA Infections in Acute NHS Hospitals, 2001–08*

We study a key part of National Health Service (NHS) policy to ensure high‐quality health care: failure to supply such care cost the NHS £787m in clinical negligence payouts during 2009–10. The NHS uses risk management standards to incentivize care, and we examine their effects on methicillin resistant Staphylococcus aureus (MRSA) infections. Using a specially assembled data set, our GMM results suggest that improvements in the risk management standards attained by some hospitals are correlated with reductions in their MRSA infection rates. Moreover, the exogeneity of this relationship cannot be rejected for higher risk management levels, suggesting attainment of higher standards was instrumental in reducing infection rates.     

The Relationship Between Acculturation,Individualism/Collectivism,and Job Attribute Preferences for Hispanic MBAs*

ABSTRACT This research studied the influence of acculturation on the values of Hispanic MBAs in the USA and the effect these values have on job attribute preferences. As predicted, the less acculturated Hispanic MBAs had significantly higher collectivist values than either highly acculturated Hispanic or Anglo‐American MBAs. Surprisingly, acculturation was not related to individualism. As theorized, collectivistic, and not individualistic, values were significantly related to a preference for contextual job attributes. In contrast, individualistic, and not collectivistic, values were related to a preference for task‐related job attributes. The findings point to the importance of understanding an individual's level of acculturation and his/her specific values, rather than assuming differences based on ethnicity. In addition, the findings indicate that managers dealing with diversity within the USA or globally must understand their employees’ individualistic/collectivistic values before implementing any job design initiatives.     

Cross-Validation Study with Confirmatory Factorial Analysis of the Revised Legal Attitudes Questionnaire Scores

The present article establishes the factorial structure of the Legal AttitudesQuestionnaire, one of the most frequently used measurements for the studyof legal authoritarianism, in several Spanish samples consisting of a communitypopulation (N1 = 618 and N2 = 533). In study 1, confirmatory factorial analysesare carried out by LISREL for different models, based on theory and on previousexploratory analyses. In study 2, based on the models selected in study 1, across-validation study is carried out by multigroup analysis. The structure thatappears to be most adequate is the one based on two trait factors (authoritarianismand anti-authoritarianism) and one of method, in which the tendencies of the participants' answers are included     

Effects of Geographical Stratification in a Farm Accountancy Data Network on the Accuracy of the Estimates

This study analyses the effects on the accuracy of the estimates produced by an additional stratification of a sample, in this case the sample of the Farm Accountancy Data Network (FADN) of Navarra. This is carried out by studying the accuracy of the total standard gross margin estimator. For the analysis, the variances of the estimator were compared for two samples: one stratified according to type of farming and economic size, and the other with the addition of a geographical stratification. The conclusion of the analysis is that for samples whose size is similar to that of the FADN of Navarra (400 farms), accuracy is not improved by a geographical stratification. This result, a particular case in which stratification does not improve the accuracy of the estimates, may be clarified by the theoretical considerations expounded in this paper.     

Neutral carbon tax and environmental targets in Brazil

We evaluate the effects of a carbon tax in the Brazilian economy using an input–output framework. First, we consider the impacts of a carbon tax of US$ 10 and US$ 50/metric ton of CO₂ equivalent. As usual, the adoption of the carbon tax generates adverse effects on GDP, wages and jobs in the short term, but reduces emissions and generates new government revenues, especially in the case of the greater tax. Second, we consider a broader tax system reform. In this reform, we replace distortionary taxes by a tax on value added. To compensate for the loss of government revenue, we assume a carbon tax with equivalent revenue. We find that the net effect is a GDP increase of 0.47%, the creation of 533 thousand jobs and reduction of 1.6 million tons of CO₂ emissions. Both scenarios exempt exports and levy imports to correct adverse effects on the country’s competitiveness.     

The relative weight of manufacturing and services in Europe: An innovation perspective

This paper uses an innovation-based taxonomy of both manufacturing and service industries to assess the role of the process of structural change of the last 25 years on the rate of productivity growth in Europe, US and Japan. The empirical analysis exploits the shift-share methodology for a decomposition of aggregate labor productivity growth. A modified version is applied, that allows to interpret whether employment has shifted to higher or lower productivity sectors. The results are discussed in light of the role that the different industries play according to the innovation-based taxonomy.     

How Perceived Corporate Social Responsibility Affects Employee Cynicism: The Mediating Role of Organizational Trust

This study examines to what extent perceived corporate social responsibility (CSR) reduces employee cynicism, and whether trust plays a mediating role in the relationship between CSR and employee cynicism. Three distinct contributions beyond the existing literature are offered. First, the relationship between perceived CSR and employee cynicism is explored in greater detail than has previously been the case. Second, trust in the company leaders is positioned as a mediator of the relationship between CSR and employee cynicism. Third, we disaggregate the measure of CSR and explore the links between this and with employee cynicism. Our findings illustrate that the four distinct dimensions of CSR of Carroll (economic, legal, ethical, and discretionary) are indirectly linked to employee cynicism via organizational trust. In general terms, our findings will help company leaders to understand employees’ counterproductive reactions to an organization, the importance of CSR for internal stakeholders, and the need to engage in trust recovery.     

Fragmented networks and transnational entrepreneurship: Building strategies to prosper in challenging surroundings

Transnational entrepreneurship studies highlight the importance of personal profiles, institutions, and networks in creating and succeeding in this type of entrepreneurship. Even so, less is known about migrants whose networks are fragmented and closed, facing challenging environments at home and abroad. This paper aims to study the attributes of transnational entrepreneurs with small and fragmented networks, from post-conflict environments, who can perform an important role in the socioeconomic development and internationalization level of their countries of origin due to the cross border mobilization of resources they encourage. For that reason, the specific case of Colombian transnational entrepreneurs who have been able to overcome those obstacles with their transnational business is analyzed with the intention of understanding how they manage those shortcomings when engaging in transnational entrepreneurship. In aiming to obtain a deeper understanding of their characteristics, similitudes, differences, and motivations, the research uses multiple case studies. The main findings suggest that transnational entrepreneurs form purposeful–strategic networks to compensate their lack of amalgamated social systems, and that they have special qualities that distinguish them from other Colombian migrants and transnational entrepreneurs. Moreover, Colombian transnational entrepreneurs focus their business in the international market, using strategically their knowledge of both the local and foreign environment, while their main interest to do so is not altruistic but business oriented. Governments from post-conflict countries should promote transnational entrepreneurship while facilitating network formation and institutional trust through diverse strategies. Finally, implications for further research are drawn.     

A Value-based Framework for Understanding Managerial Tolerance of Bribery in Latin America

The cross-cultural literature is reviewed and integrated together with attitude theories, thereby outlining a model through which certain values influence the intervening variables that ultimately lead managers to tolerate employee bribery. The case of Latin America is employed to illustrate how regionally dominant cultural values may shape managers’ attitudes, subjective norms, and perceived behavioral control, which in turn affect tolerance of employee bribery. A series of research propositions and practical recommendations are derived from the model.