Do Chinese corporations take their governance practices abroad? Evidence from Chinese mining subsidiaries in Australia

Directors of firms are theorized to fulfil control, service and resource dependence roles. However, the ways in which directors’ of Chinese MNCs govern their foreign subsidiaries, and perform these roles remains unclear. Building on the institutional logics perspective, this study explores the roles enacted by the boards of directors eight Chinese‐controlled companies in Australia to gain an appreciation of their governance practices. In depth semi‐structured interviews with insider and independent directors, consultants and market analysts were undertaken. A content analysis of company annual reports and web sites complimented primary sources of data on board functions. Findings reveal that control is the most dominant role played by these boards, rather than service or resource dependence. It also appears that the dominant logics of Chinese institutions influence the corporate governance of Chinese MNCs as they internationalize. These findings extend our understanding of corporate governance practices in China and abroad.     

Company Legitimacy in the New Millennium

The relationship between business and society changes over time, and periodically there is a ‘legitimization crisis’. The paper will briefly explore some important questions about company legitimacy: why is company legitimacy important; why do legitimacy crises occur; and finally, are we in a crisis at the moment, and if so how can it be solved? The legal institutionalization of business firms prescribes narrow accountabilities and limited responsibilities: the challenge for business in the new millennium is to open these up and to broaden our understanding of the social significance of business activity without destroying its wealth creating processes. This will require a rethinking of the relationship to the shareholder and a new definition of the relationship with stakeholders.     

Professional HRM Practices in Family Owned‐Managed Enterprises*

This study examines determinants of professional human resource management (HRM) practices within a sample of approximately 700 small to medium‐sized firms. Predictions from the agency theory and the resource‐based view of organizations lead to alternate hypotheses regarding the direct and indirect negative effects of family ownership and management on the usage of professional HRM practices. Results support predictions for both direct and indirect effects. These indirect effects occur through intermediary variables that reflect organizational complexity, such as firm size, (the presence of a) formal business plan, and HRM specialization. The findings lend partial support to both theories.     

Constructivist Negotiation Ethics

The success of Discourse Ethics is premised on the discovery and use of shared values. If this is true what type of negotiation style, especially when used in an intercultural setting, is best suited to make use of shared values. Research focusing on moral arguments between Germans and Americans uncovered an array of shared values. But the existence of shared values, by itself, was not an adequate predictor of a negotiation's success. What did prove to be a predictor of success was the use of a Constructivist style of negotiation by both parties.     

Dr. Martin Bronfenbrenner (1914-1997): Scholar, Critic, Cynic, and Comrade-in-Arms

ABSTRACT Professor Martin Bronfenbrenner's mark on the economics profession was significant and worth remembering. He touched the lives of many as a father, cousin, teacher, scholar, expert referee, colleague, and judge of important contemporary debates. Of special interest is his unique personality. He was a specialist in self-effacement, peppered with liberal shakes of cynicism and sarcasm. Despite all this, he managed to win the respect and hearts of individuals on several continents and across several generations. This essay brings a small but diverse part of the story together in one place.     

Behavioral biases of mutual fund investors

We examine the effect of behavioral biases on the mutual fund choices of a large sample of US discount brokerage investors using new measures of attention to news, tax awareness, and fund-level familiarity bias, in addition to behavioral and demographic characteristics of earlier studies. Behaviorally biased investors typically make poor decisions about fund style and expenses, trading frequency, and timing, resulting in poor performance. Furthermore, trend chasing appears related to behavioral biases, rather than to rationally inferring managerial skill from past performance. Factor analysis suggests that biased investors often conform to stereotypes that can be characterized as Gambler, Smart, Overconfident, Narrow Framer, and Mature.     

Regulation Fair Disclosure and Earnings Information: Market, Analyst, and Corporate Responses

With the adoption of Regulation Fair Disclosure (Reg FD), market behavior around earnings releases displays no significant change in return volatility (after controlling for decimalization of stock trading) but significant increases in trading volume due to difference in opinion. Analyst forecast dispersion increases, and increases in other measures of disagreement and difference of opinion suggest greater difficulty in forming forecasts beyond the current quarter. Corporations increase the quantity of voluntary disclosures, but only for current quarter earnings. Thus, Reg FD seems to increase the quantity of information available to the public while imposing greater demands on investment professionals.     

AN EXAMINATION OF THE UNDERLYING DYNAMICS OF STRATEGIC DECISIONS SUBJECT TO UPWARD INFLUENCE ACTIVITY

This study examines the underlying dynamics of strategic decisions that are subject to upward influence activity. The results suggest that the strategymaking process deviates considerably from typical rational comprehensive approaches in that strategies are affected by: initial sense-making activity, perceptions of risk and return, and power and negotiation skills. Differences due to functional area of the manager involved in the influence activity are discussed.