Diversity and the starting salaries of undergraduate business school students

The authors treat racial diversity of the student body at both the college of business and the institutional level as an input into the undergraduate business school productive process, and find that diversity is positively related to improved student starting salary outcomes. The effects are meaningful—a 1-SD in increase in student racial diversity implies a six- to seven-place increase in salary rank among the 90 schools for which the authors have data.     

The Asian flu and Russian virus: the international transmission of crises in firm-level data

This paper examines how the Asian and Russian crises affected different types of firms around the world. It constructs a new data set of financial statistics, industry information, geographic data, and stock returns for over 10?000 companies in 46 countries. Results show that firms competing with exports from the crisis countries, or with direct sales exposure to the crisis countries, had significantly lower abnormal stock returns. Firms with higher debt ratios, however, did not experience lower abnormal returns. Country-specific effects, although important determinants of company stock returns, are generally less important than firm-specific characteristics. These results suggest that trade channels are important factors determining how crises are transmitted internationally.     

Social business collaboration at the bottom of the pyramid: The case of orchestration

Social business orchestrators (SBOs) help social businesses of various sizes to tackle major societal issues by filling gaps in knowledge and resources. However, research has overlooked these types of collaboration. Situated within a bottom of the pyramid context in Bangladesh, the current study sheds light on the process of value creation for SBO–social businesses partnerships by comparing different collaboration partners. Multiple case study research through the lens of the relational view were used to ask how SBOs facilitate value creation in social businesses by flexibly adapting resource inputs and governance mechanisms to the specific endowment and size of partners; this approach was informed by interviews and field note analyses. The combined deductive–inductive analysis enhances knowledge of idiosyncrasies of SBO–social business collaborations. Our study draws attention to the role of large orchestrators, whose model could be scaled and transferred to other world regions, including industrialised countries.     

Multinational Enterprise Subsidiaries and their CSR: A Conceptual Framework of the Management of CSR in Smaller Emerging Economies

There is a lack of theoretical consensus on how multinational enterprises (MNEs) should implement corporate social responsibility (CSR) to build legitimacy, particularly those operating in the smaller Asian emerging market context, where current growth in the global economy is being felt more acutely than elsewhere. This paper argues for theoretical integration of business ethics (BE) and international business (IB) research to address this concern. Hence, we explore the management of CSR strategies by MNE subsidiaries with specific interest on their proactive adoption of strategic CSR to obtain legitimacy in a foreign host country. Drawing on the recent CSR literature and related theories, including stakeholder theory and institutional theory, propositions and a conceptual framework are developed and presented. The framework integrates BE and IB concepts on the different dimensions of CSR and provides a theoretical derived explanation of the process for strategic adoption of global through to more local CSR strategies by MNE subsidiaries to build legitimacy in an emerging market context. In addition, the framework provides valuable insights into the adoption of different ethical approaches or CSR strategies based on the level of ethical pressure in a host country and the degree of CSR ingrainedness in the parent company.     

Benefits and costs to China of three different climate treaties

There are currently several ideas on the table for a climate treaty post-Kyoto. We consider the impact on China of three ideas: a cap on the CO₂ intensity, a cap on the CO₂ level, and a cap on the CO₂ intensity in key sectors. We find that a cap on the CO₂ intensity gives large environmental co-benefits to China on aggregate, but there are significant negative effects for rural households. Assuming these are addressed the country could reduce its CO₂ intensity by a third before costs outweigh environmental co-benefits. By contrast a cap confined to the manufacturing and power sector does not bring substantial co-benefits to China.     

The use of term structure information in the hedging of mortgage‐backed securities

This article examines the importance of term structure variables in the hedging of mortgage‐backed securities (MBS) with Treasury futures. Koutmos, G., Kroner, K., and Pericli, A. (1998) find that the optimal hedge ratio is time varying; we determine the effect of yield levels and slopes on this variation. As these variables are closely tied with mortgage refinancing, intuition suggests them to be relevant determinants of the hedge ratio. It was found that a properly specified model of the time varying hedge ratio that excludes the level and slope of the yield curve from the information set would provide similar out‐of‐sample hedging results to a model in which term structure information is included. Thus, both the level of interest rates and the slope of the yield curve are unimportant variables in determining the empirically optimal hedge ratio between MBS and Treasury futures contracts. © 2005 Wiley Periodicals, Inc. Jrl Fut Mark 25:661–678, 2005