Corporate Leniency Programs when Firms have Private Information: The Push of Prosecution and the Pull of Pre‐emption

A corporate leniency program provides relief from government penalties to the first member of a cartel to cooperate with the authorities. This study explores the incentives to apply for leniency when each cartel member has private information as to the likelihood that the competition authority will be able to convict them without a cooperating firm. A firm may apply for leniency because it fears being convicted (‘prosecution effect’) or because it fears another firm will apply (‘pre‐emption effect’). Policies by the competition authority to magnify concerns about pre‐emption—and thereby induce greater use of the leniency program—are also explored.     

Animal spirits: the effect of economic expectations on economic output

The public is characterized as able forecasters of future economic performance. They engage in rational expectations. Empirical evidence exists to bolster the claim. This article considers the possibility that the public does more than predict economic output. They may engage in a self-fulfilling prophecy where belief about the future economy translates into personal financial behaviour (e.g., consumption and investment) that actually drives economic performance. After controlling for rational expectations with elite forecasts, leading indicators and past economic performance, it is shown that between 5% and one-third of the variance in economic output can be explained by prospective economic sentiment. This result has broad implications for electoral behaviour research.     

Competing for scarce talent in a liberalised environment: evidence from the aviation industry in Africa

Although the last few years have witnessed a burgeoning stream of research on interfirm mobility of employees, the extant research has remained relatively silent on both its dynamics and effects on the performance of firms domiciled in emerging economies. Using a qualitative case study approach, this article attempts to illuminate our understanding of both issues. It places particular emphasis on the examination of the dynamics of employees' interfirm mobility in the airline industry in Africa. The findings reveal the diverse ways in which the liberalisation in the industry has created a new competitive landscape with far-reaching consequences for firms. Essentially, firms now have to compete intensely for the scarce human capital. The theoretical and managerial implications of these findings are discussed.     

Back to the futures: An assessment of market performance on the early Winnipeg Grain Exchange

In this paper, I offer a quantitatively rich, historical perspective with which to consider Western Canada's recent return to private grain marketing. I assess how futures markets on the Winnipeg Grain Exchange (WGE) performed before the Canadian Wheat Board, and I consider the extent to which this performance contributed to the Canadian government's decision to create the Board. I conclude, despite significant agrarian dissatisfaction with private grain marketing on the WGE, the Canadian government ultimately proscribed futures trading because it was incompatible with the CWB model, which the Canadian government needed in order to stabilize farm incomes, particularly in the aftermath of the Great Depression.     

The significance of structural transformation to productivity growth

This paper critically discusses the most common methodology for decomposing productivity change into inter- and intra-firm effects. It is argued that the methodology can be improved to explicitly take the role of structural transformation into account, and by so doing, a potential source of bias in the results is corrected. This requires the use of a tool from the field of theoretical evolutionary biology: Price’s equation. A review of a sample of studies that apply decomposition analyses shows that the methodology is best suited for studies of the evolution of labour productivity and the reallocation of labour. Based on Danish data for 1992–2010, it is then demonstrated how the results of decomposition analyses can be considerably improved by the explicit inclusion of levels in the selection process. In the specific analysis conducted by the current paper, economic selection among industries is included. It is found that the structural transformation of the economy has a large impact on the results of decomposition studies, not least on the magnitude of the inter-firm selection effect. Structural transformation from capital-intensive and thus high-labour-productivity manufacturing towards labour-intensive and thus low-labour-productivity services entails that the traditional methodology is biased downwards in its measure of economic selection. Finally, it is demonstrated that the length of the interval studied, while often determined by data limitations, has a significant but predictable effect on the results, and it is tentatively demonstrated that economic selection tends to be stronger in the trough of the business cycle.     

Debt Capacity of Real Estate Collateral

We study whether real estate assets have a greater positive influence on firm leverage than other tangible assets. Using a large sample of COMPUSTAT firms, we find a significant positive relation between tangibility and leverage in general, and the relation is strongest for real estate collateral. Furthermore, we find that the relation holds only for credit‐constrained firms, i.e., those likely to highly value the additional borrowing capacity of real estate. Our results imply that knowing the composition of a firm's tangible assets is important in understanding its leverage. Our findings could help explain why real estate investment trusts are relatively highly leveraged, even though debt offers them no tax benefit.     

First‐Price Sealed‐Bid Tender versus English Open Auction: Evidence from Land Auctions

This article compares whether the first‐price sealed‐bid tender or the ascending English open auction generates higher revenue for the seller. Using a unique set of data for land sales and accounting for the presence of an endogenous discrete mechanism choice variable, our results show that the first‐price sealed‐bid tender generates a lower land price, in the range of 1.2–9.6%, than the English open auction. Our results validate the theoretical prediction that open auctions result in higher prices because bidders can infer other bidders’ information by observing their bids in the common value auction paradigm.     

Organizational communities of practice: Review,analysis, and role of information and communications technologies

Information and communications technologies (ICTs) play a key role in supporting Communities of Practice (CoPs). A review of the extant literature reveals six factors that facilitate or constrain the development, sustenance, and effectiveness of CoPs that, in turn, enable generative and degenerative structures and behaviors that affect epistemic environments within Organizational Communities of Practice (orgCoPs). OrgCoPs are accepted as beneficial organizational learning structures and need to be deliberately designed and cultivated. The materiality of ICTs that is used to support orgCoPs may play a role in supporting or opposing seeding structures. The literature review further reveals five material properties that describe the relationship between the orgCoPs and the technologies used to support it. We argue that these distinct but intersecting properties are germane to understanding the role that ICTs play in supporting orgCoPs and propose that the future work on orgCoPs could be nuanced if examined through the lens of ICTs’ materiality.     

Linking Altruism and Organizational Learning Capability: A Study from Excellent Human Resources Management Organizations in Spain

Corporate reporting on climate change is of increasing academic interest but is often considered solely from the firm perspective. This article extends current knowledge by considering how institutional pressures influence the greenhouse gas (GHG) reporting practices of multinational oil and gas companies. The results show that regulation under the EU emissions trading scheme and reporting according to the global reporting initiative (GRI) guidelines leads to better quality and more extensive reporting. Although generally adopting proactive climate change strategies, European companies do not have superior GHG reporting practices. Corporate media visibility does not impact GHG reporting practices which may be a reflection of the obscure portrayal of climate change in the print media or the fact that coverage is generally positive. This article adds to the current literature on GHG reporting practices demonstrating that institutional theory along with stakeholder theory and legitimacy theory can give further insights into explaining the GHG reporting practices of multinational companies.     

How variation in management perceptions affects organizational performance

This research project uses innovative techniques (multiple respondents and partial relative standard deviations) to examine organizational management ratings of their implementations of market orientation, learning orientation, entrepreneurial management, and organizational flexibility. This study included manufacturers and service businesses, and also not-for-profits in education and healthcare to reflect the 21st century economy. The major finding of this study was larger than the expected response variation within management teams and how this correlated negatively with performance. The results are eye-opening and should be a concern for both management in organizations and the research community.