An empirical analysis of continuing improvements following the implementation of a performance-based compensation plan

Performance improvements subsequent to the implementation of a pay-for-performance plan can result because more productive employees self-select into the firm (selection effect) and because employees allocate effort to become more effective (effort effect). We analyze individual performance data for 3,776 sales employees of a retail firm to evaluate these alternative sources of continuing performance improvement. The incentive plan helps the firm attract and retain more productive sales employees, and motivates these employees to further improve their productivity. In contrast, the less productive sales employees’ performance declines before they leave the firm.     

A Cross-Cultural Investigation of the Ethical Values of Consumers: The Potential Effect of War and Civil Disruption

Past research has examined the ethical judgments of consumers in the U.S., but few studies have investigated such attitudes in foreign-market settings. The current study compares ethical attitudes of consumers in two countries (Ireland and Lebanon) which share a cultural similarity of ongoing war and terrorism. The findings reveal that both cultures exhibit low sensitivity to ethical issues. Furthermore, the findings show that the Irish consumers are less sensitive to consumer ethical practices, less idealistic, more relativistic, and more Machiavellian than Lebanese consumers. The authors recommend that other researchers need to further investigate this perplexing issue because ethics is a research topic which often discourages survey respondents to be candid.     

Plato and Delphi

Plato had an unparalleled influence on political and utopian thought through his Republic. Recently, Professor Clarke has emphasised the “Primacy of Plato” for the literature of the ideal state.¹ Some qualifications are offered here to Clarke's appraisal of Plato. These qualifications bear upon his characterisation of Plato's “extraordinary social insights and his exceptional power of thought”. They should be of particular interest to the futures researcher, as they are related to Delphi.     

Informational Costs and Institutional Typologies: A Review Article

Books reviewed in this article:
Mark Casson, Information and Organisation. A New Perspective on the Theory of the Firm
Takao Shiba and Masahiro Shimotani (eds), Beyond the Firm. Business Groups in International Historical Perspective     

Monthly Pattern and Portfolio Effect on Higher Moments of Stock Returns: Empirical Evidence from Hong Kong

Using a direct test, this paper studies the month-of-the-year effect on the higher moments of six industrial stock indices of the Hong Kong market. We also examine the portfolio effect on skewness and kurtosis across month of the year to see if such an anomaly exists. The empirical results support a weak month-of-the-year effect in higher moments of stock returns. Using a complete sample of all possible combinations for each portfolio size, we show that portfolio effect varies across month of the year for both skewness and kurtosis. In particular, our results show that diversification does not necessarily provide benefits to rational investors when the stock return distribution is non-normal, even though portfolio formation can reduce standard deviation. In June, August and October, diversification across industrial sectors results in a more negatively skewed and leptokurtic return distribution, which is not preferred by investors with risk-aversion. Two (one) possible explanations for the portfolio effect on skewness (kurtosis) are also provided. Our empirical results add new evidence to the existence of anomalies in the Hong Kong stock market. This revised version was published online in August 2006 with corrections to the Cover Date.     

The organization of applied R & D with particular reference to the customer-contractor situation

This paper reports on certain aspects of the management of R & D in three types of establishment: contract research organizations, research associations and industrial research laboratories. Discussions with the directors of twenty-five establishments revealed that a number of important changes had occurred over a relatively short period of time, particularly with regard to the management of work of a more applied nature. These changes include the introduction of a number of new and separately identifiable roles within the organizational structure, and a movement towards a more market-oriented, profit-centred approach on the part of senior personnel. The study suggests that these changes have in general been accepted and are bringing benefits to all parties.