Revolving doors: entrepreneurial survival and exit

The high turbulence of new entrepreneurial ventures that are rapidly selected out at the fringe of the firm population has been emphasized using the ??revolving doors?? metaphor. However, well-planned exit strategies can be the root of entrepreneurial success and a mechanism to transfer novelty to established firms. The aim of this Special Issue is to highlight the multiple aspects of exit as part of the entrepreneurial process.     

Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer-employee data

Using Danish linked employer-employee data, we find that: (i) exposing the worker to physical hazards leads to a 3 percentage point increase in the probability of voluntary turnover from the average rate of 18%; (ii) working in night shift results in an 11-percentage point hike; and (iii) having an unsupportive boss leads to a 6-percentage point jump. High involvement work practices are found to play a significant role in mitigating the adverse effects of workplace hazards. Finally, the worker under adverse workplace conditions is found to improve the 5-year odds of rectifying such workplace adversities by quitting the firm.     

Return on Marketing–Eine Bestandsaufnahme empirischer Befunde

Difficult economic situations and the corresponding share price drops have increased the pressure on all functions within an organization to provide evidence how effectively they are contributing to a company’s financial performance in the sense of the shareholder value concept. Especially the marketing department quite frequently is on the watch due to its rarely manifest direct impact on firm success. Hence, for several years the topic ‘Return on Marketing’ has been ranging on top of the research priority lists of the leading scientific marketing organizations. Consequently, a variety of scholarly publications has analyzed the impact of marketing by means of capital market based approaches. Recently, finance methods seem to become a gold-standard in marketing research. In the present paper current empirical studies are systematically identified and analyzed in order to provide a detailed overview of this research topic. Furthermore a discussion and reflection of the findings with regard to communalities, divergences and applied research methodologies used is provided. The paper concludes by revealing (methodological) limitations and provides directions for further research.     

Inefficiency of equilibria in digital mechanisms with continuous valuations

A digital mechanism is defined as an iterative procedure in which bidders select an action, from a finite set, in each iteration. When bidders have continuous valuations and make strategic reports, we show that any ex post implementation of the Vickrey choice rule via such a mechanism needs infinitely many iterations for almost all realizations of the bidders’ valuations. Thus, when valuations are drawn from a continuous probability distribution, the Vickrey choice rule can only be used at the expense of a running time that is infinite with probability one. This infeasibility result even holds in the case of two bidders and the Vickrey choice rule only being required to be established with probability one. Establishing the efficient allocation when the $n$ bidders’ report truthfully contrasts starkly to the previous setting: a bisection procedure has a finite running time almost always, and an expected number of reports are equal to $2n$. Using a Groves payment scheme rather than Vickrey’s second price payment scheme somewhat mitigates the problem. We provide an example mechanism with a Groves payment scheme, in which the running time of the mechanism in equilibrium is finite with probability $\frac{1}{2}$.     

The role of securitization in bank liquidity and funding management

This paper studies the role of securitization in bank management. I propose a new index of “bank loan portfolio liquidity” which can be thought of as a weighted average of the potential to securitize loans of a given type, where the weights reflect the composition of a bank loan portfolio. I use this new index to show that by allowing banks to convert illiquid loans into liquid funds, securitization reduces banks' holdings of liquid securities and increases their lending ability. Furthermore, securitization provides banks with an additional source of funding and makes bank lending less sensitive to cost of funds shocks. By extension, the securitization weakens the ability of the monetary authority to affect banks' lending activity but makes banks more susceptible to liquidity and funding crisis when the securitization market is shut down.     

A Propaedeutic for a Framework: Fostering Ethical Awareness in Undergraduate Business Students

Using the field of accounting as a locus forinquiry within undergraduate businesseducation, this paper proposes that studentsbeing trained in fields of business wouldbenefit from sustained formal exposure to theepistemological and anthropologicalperspectives of ethical systems. Without suchexposure, the ethics case studies presented inbusiness textbooks will not be as effective inachieving their goal of training undergraduatestudents to be ethical professionals. Studentsneed a substantive introduction to ethicalreasoning before they can fully appreciate theethical ramifications in a case study. Students have to be able to articulate thecriteria by which they will approach thequestions of applied ethics posed by the ethicsexercises appearing as the conclusion tochapters teaching not ethics but technicalinformation.This paper explores the ethical frameworkprovided by an intermediate accountingtextbook. It then analyzes theepistemologically and anthropologicallyinformed ethics of Bernard Lonergan and EdwardSchillebeeckx as examples of the introductoryethical reasoning needed to support textbookframeworks. A two-fold thesis guides thepaper: students equipped with a broader ethicalvision can learn more effectively from theethics cases presented in the textbooks, thusenhancing the value of those cases;consequently, students need more exposure toethics in an undergraduate business course ofstudy.     

Contents of Volume 23

Volume Contents

Contents of Volume 23