Corporate Insurance and Debt: The Case of China*

Finance theorists have long argued that corporate purchases of property insurance can reduce the probability and hence the expected costs of financial distress. And by so doing, the corporate use of insurance can reduce borrowing costs and/ or increase debt capacity, reduce the overall cost of capital, and increase firm value. This article attempts to apply this argument to the case of publicly traded companies in China, which provides a particularly interesting environment given the significant presence of both foreign direct investment and state shareholdings in its corporate sector. From their study of several hundred Chinese companies during the period 1997‐2003, the authors report the following conclusions: Companies with higher borrower costs tend to purchase more property insurance, which in turn has the effect of increasing their debt capacity. Smaller companies are more likely than larger firms both to insure their assets and to purchase more property insurance (as a percentage of assets), reflecting their greater vulnerability to financial shocks and larger potential benefit from insurers' real advisory services (such as loss prevention advice). Companies with more and larger growth opportunities are more likely to purchase insurance, reflecting their higher expected costs of financial distress (from possible underinvestment) than firms with limited growth opportunities. Companies with higher levels of state ownership tend to insure their assets to a greater extent, suggesting that the managers of such companies insure to protect their job security, particularly as the availability of state subsidies to the Chinese corporate sector has declined since market reforms were initiated in 1978.     

Motivation in project management: The project manager's perspective

Project motivation is a key aspect to a successful project, yet few studies exist that shed light on this important subject. This article reviews the current literature and theoretical aspects of motivation and provides an analysis of the data. A survey was conducted by soliciting project managers to tell how they perceive their ability to influence motivation. In total, 115 certified project managers responded to the survey. A discussion and suggestions for future research follow the data.     

Impacts of WTO restrictions on subsidized EU sugar exports

The study evaluates the impact of World Trade Organization (WTO) restrictions on the European Union (EU) sugar sector and the world sugar market. A small reduction in production quotas would be sufficient to satisfy the export subsidy limitations of the Uruguay Round agreement. Complete elimination of export subsidies by 2005 would require either a 10% reduction in production quotas or the combination of an 8% reduction in quotas and an 11% reduction in intervention prices. Higher world prices resulting from reduced EU exports would result in increased production of unsubsidized C‐sugar, with different impacts across EU member countries explained by differences in institutional pricing arrangements and marginal production costs.     

Postschool education and training: Accessible to all?

This article examines knowledge and skill development during early adulthood when the individual has severed ties with formal education and entered the world of work. Focusing on a cohort of young men from the National Longitudinal Surveys, the paper examines the economic and social forces influencing participation in various forms of postschool education and training. A recursive model is used to explore skill development patterns over the lifecycle. Attention is focused on the role of early human capital development and its influence on the cost and incentives for subsequent skill development in the adult working years. The findings point to the cumulative nature of skill development over the lifecycle with some important implications for efforts to reduce economic and social inequalities for blacks and whites.     

Reframing gender and feminist knowledge construction in marketing and consumer research: missing feminisms and the case of men and masculinities

Abstract

Gender has been theorised and studied in many ways and across different disciplines. Although a number of these theorisations have been recognised and adopted in marketing and consumer research, the significance of feminism in knowledge construction has largely remained what we would call ‘unfinished’. Based on a critical reframing of gender research in marketing and consumer research, in dialogue with feminist theory, this article offers theoretical and practical suggestions for how to reinvigorate these research efforts. The analysis highlights dominant theorisations of gender, relating to gender as variable, difference and role; as fundamental difference and structuring; and as cultural and identity constructions. This reframing emphasises various neglected or ‘missing feminisms’, including queer theory; critical race, intersectional and transnational feminisms; material-discursive feminism; and critical studies on men and masculinities. A more detailed discussion of the latter, as a relatively new, growing and politically contentious area, is further developed to highlight more specifically which feminist and gender theories are mainly in use in marketing and consumer research and which are little or not used. In the light of this, it is argued that marketing and related disciplines have thus far largely neglected several key contemporary gender and feminist theorisations, particularly those that centre on gender power relations. The potential impact of these theoretical frames on transdisciplinary studies in marketing and consumer research and research agenda(s) is discussed.     

The power of business models

Over the past few years, “business models” have surged into the management vocabulary. But, while it has become quite fashionable to discuss business models, there is still much confusion about what business models are and how they can be used. In fact, business models can serve a positive and powerful role in corporate management. While other authors have recently offered definitions of “business model,” none appear to be generally accepted. This lack of consensus may in part be attributed to interest in the concept from a wide range of disciplines, all of which have found a connection to the term. To help managers better understand business models, this paper reviews the extant literature and identifies and classifies the components of business models cited therein. Components were classified into four primary categories: strategic choices, the value network, creating value, and capturing value. To address the absence of a generally accepted definition of a business model, a new definition that integrates and synthesizes the earlier work is offered. Based on the proposed definition, business models are then contrasted with strategy. Four problems associated with business models are also discussed.