Free Cash Flow, Golden Parachutes, and the Discipline of Takeover Activity

We conjecture that golden parachutes are initiated when the agency cost of free cash flow is most severe. We examine the relation between golden parachutes and investment levels in firms that have been successfully acquired. Our results support these three conclusions. First, target firms overinvest prior to an acquisition when golden parachutes are present. Second, the acquirers of targets with golden parachutes reduce investment subsequent to the takeover. Third, the reversal in capital investment by the combined firm is correlated with the magnitude of the target's pre-acquisition overinvestment. The latter findings indicate the takeover acts as a disciplining mechanism with the acquirer reversing the target overinvestment subsequent to the acquisition     

Interpretation and Sustainable Tourism: The Potential and the Pitfalls

From the outset, proponents of sustainable tourism have, consciously or not, set great store by interpretation, and gradually the linkages between sustainable tourism and interpretation have begun to be developed. This discussion examines the potential benefits of linking interpretation and sustainable tourism and assesses a number of the pitfalls or difficulties which are involved. The potential benefits include improved visitor management, local economic and environmental gains and fuller community involvement. Among the several pitfalls of linking interpretation and sustainable tourism which are considered are the dangers of over-interpretation, intrusion, creating ‘quaint’ tourist landscapes, and those of elitism.     

HIGH AND LOW EARNINGS JOBS: THE FORTUNES OF EMPLOYERS AND WORKERS

The focus of the literature on the effect of job changes has been on the consequences of job destruction on the individual worker. In this paper we analyze the impact on the earnings distribution of both job creation and job destruction. We establish a link between job reallocation and the movement of workers into and out of the tails of the earnings distribution. Both job creating and job destroying employers shed jobs mostly from the middle and lower tails of the earnings distribution, although this is cyclically very sensitive. Labor mobility (triggered by job reallocation) is risky: mobile workers will generally end up in the upper or lower tail of the distribution rather than in the middle. If workers move across industry boundaries, they typically move to the lower tails of the distribution. In sum, the fortunes of workers depend on the fortunes of their employers.     

Labor Flexibility,Ownership and Firm Performance in China

Developed and developing countries alike areprivatizing or corporatizing state owned enterprises(SOEs), often citing the flexibility to hire and shedlabor as an advantage. However, there is littleempirical evidence on the extent to which thisimproves firm performance. This paper investigates thelinkage between labor flexibility, ownership and firmperformance using China as a case study. We find thatSOEs are much less able to adjust quickly to demandshocks than are other ownership forms and that thedegree of worker input into hiring and firingdecisions slows the ability of firms to adapt,negatively affecting firm performance.     

Cryptodemocracy and its institutional possibilities

The Review of Austrian Economics - Democracy is an economic problem of choice constrained by transaction costs and information costs. Society must choose between competing institutional frameworks...     

Implications of student‐generated screencasts on final examination performance

While educational technologies can play a vital role in students’ active participation in introductory accounting subjects, learning outcome implications are less clear. We believe this is the first accounting education study examining the implications of student‐generated screencast assignments. We find benefits in developing the graduate attributes of communication, creativity and multimedia skills, consistent with calls by the profession. Additionally, we find improvement in final examination performance related to the assignment topic, notably in lower performing students. The screencast assignment was optional, and the findings suggest a tailored approach to assignment design related to students’ developmental needs is appropriate.     

Asymmetric Shocks and Monetary Policy in a Currency Union

We analyze the conduct of monetary policy in a currency union in the face of asymmetric shocks. In particular, we compare the stabilization properties of a currency union versus alternative exchange rate arrangements. The relative performance of a currency union is shown to depend on the extent of economic integration in patterns of consumption and production and on the relative weights placed on price stability versus employment stability in the monetary authority's objective function.
JEL classification : F 33; F 40     

Revisiting Gender Role Stereotyping in the Sales Profession

This paper revisits the issue of gender stereotypes in sales professions given new views of what makes for effective sales performance and sales management. Women's continued disadvantaged position in the sales profession is documented, and the role of gender role stereotypes in sustaining this situation in the profession is examined. The paper then turns to the newly emerging, ostensibly "pro-female", view of sales. This emphasises the importance of building and sustaining relationships – qualities that women have traditionally been stereotyped as "good" at. Despite the positive emphasis accorded to women's skills in this new sales landscape, the ethical problems which arise from constructing this debate around the issue of gender are explored. In particular, the extent to which the view of women as "good at relationships" constitutes a stereotype is examined, and the value of this stereotype for redressing women's disadvantaged position from the perspectives of justice and utility is set out. In the final part of the paper we look at potential avenues for future theory and research which may help bring into focus a new view of gender role stereotypes in sales.