Regional headquarters in China: Role in MNE knowledge transfer

To improve control and coordination with operations in distant locations, multinational enterprises (MNEs) establish regional headquarters (RHQs). The number of RHQs in Shanghai registered with the Shanghai Municipal Commission of Commerce has increased from 154 in 2006 to more than 400 in 2012. Managing knowledge constitutes one of the major strategic advantages of an MNE, but little is known about RHQs and their role in MNE knowledge flows. Based on interviews with regional, subsidiary, and global managers, we explore knowledge flows involving the RHQ. Our data suggest that RHQs can have a role in inflows and outflows of knowledge, and that this involvement is influenced by RHQ management, structure, and position within the subsidiary network.     

Consumer perceptions of risks of chemical and microbiological contaminants associated with food chains: a cross-national study

The development and implementation of effective systems to identify vulnerabilities in food chains to chemical and microbiological contaminants must take account of consumer priorities and preferences. The present investigation attempted to understand consumer perceptions associated with chemical and microbiological contaminants in four specific food chains (drinking water, farmed salmon, chicken and milk powder). To this end, ten focus group discussions were held in five different countries (Poland, Ireland, the Netherlands, France and Brazil). Consumers expressed higher concerns about chemical, as compared with microbial, contaminants. Chemical contaminants were more strongly associated with the potential for severe consequences, long-term effects and lack of personal control. Traceability was considered by consumers as a useful tool that offers the potential to improve consumer confidence in food safety.     

The Information Contained in Reconciliations to Earnings Based on US Accounting Principles By Non-US Companies

To improve comparability of financial statements across countries, the US Securities and Exchange Commission (SEC) requires non-US registrants to either issue financial statements based on US Generally Accepted Accounting Principles (GAAP) or provide in their footnotes a reconciliation of their foreign accounts to their US GAAP counterparts. The New York Stock Exchange has requested the elimination of this requirement on the basis that it serves as a barrier to non-US companies that desire to enter the US market. The SEC maintains that the reconciliations provide important information to investors when assessing the value of a company's stock. This study investigates the information content claim made by the SEC. An event study methodology is utilised that measures the stock price reaction within a short window surrounding the SEC filing date of the firm's 20-F (analogous to the 10-K for US firms). A significantly positive correlation is documented between the stock price reaction and the change in the aggregate reconciliation. This result implies that US GAAP disclosures provide information to the market when the 20-F arrives at the SEC.     

Office Romances: The New Battleground Over Employees' Rights to Privacy and the Employers' Right to Intervene

Office romances have increased dramatically as more men and women work together for prolonged periods. The article reviews reasons why office romances are flourishing, examines the corporate response to office romances, discusses the rights and responsibilities of employees, co-workers, and employers, and recommends courses of action for each.     

Scarcity effects on value: A quantitative review of the commodity theory literature

Commodity theory (Brock, 1968) deals with the psychological effects of scarcity. According to the theory, scarcity enhances the value (or desirability) of anything that can be possessed, is useful to its possessor, and is transferable from one person to another. This article introduces commodity theory to the marketing literature, reports a meta-analysis of studies designed to test the theory, and discusses the marketing implications of the theory along with suggestions for future marketing research.     

The Effect of Information Systems on Honesty in Managerial Reporting: A Behavioral Perspective*

This study examines the behavioral impact of an information system, and how that impact varies with the information system's precision, in an internal reporting environment. We propose that a manager's reporting decisions are affected by his or her trade‐off of the benefits of appearing honest against the benefits of misrepresentation. The information system affects the manager's trade‐off by improving the owner's ability to make an inference regarding the manager's level of honesty. Thus, to the extent that the manager perceives benefits to appearing honest, the presence of an information system can increase managerial honesty. As the information system becomes more precise, however, the manager must forgo greater benefits of misrepresentation in order to achieve the same appearance of honesty. For managers under a precise system, this will shift the trade‐off decision toward the benefits of misrepresentation and away from the benefits of appearing honest. Notably, in our experiment, the only benefit of appearing honest is an intrinsically motivated desire for social approval. We find that, although the existence of an information system increases managerial honesty, honesty is lower under a precise than under a coarse information system. We also compare profit earned by the owners in our experiment, which relies on a behavioral role of an information system, with the maximum profit theoretically possible given a contractual use of the information system. This comparison suggests that, unless the available information system is sufficiently precise, the owner will obtain greater profits by not contracting on its output, even if that output is fully contractible.