A theory of exploitative child labor

We develop a model in which some child labor is exploitative.Since exploited child laborers are paid less than the valueof the marginal product of labor, there is scope for policyintervention to be Pareto improving. We illustrate this by showingthat a system of inspection and fines targeted on exploitativechild labor increases the aggregate output produced by children.We also establish that such intervention secures the releaseof children from exploitative working conditions, to their benefit.The distributional implications of the intervention among employersand among children who had not been exploited depends on whethercapital is mobile internationally, and can depend on whetherthe elimination of exploitative child labor is partial or complete.     

Networks,Firm Size and Innovation

Using survey data on Australian firms this paper investigates the determinants of innovation. Various possible determinants are investigated, including market structure, export status, the use of networks, and training. Regression analysis is conducted separately for manufacturing and non-manufacturing firms and, within each sector, by firm size categories. The results include evidence of persistence in innovative activities and that the use of networks is associated with innovation in some sector-firm size categories. Specifically, small manufacturing firms exhibit a positive association between networking and innovation. In contrast, for non-manufacturing firms this association is present for medium and large sized firms.     

Beyond Agency and Structure: Triple-Loop Learning

With the demise of Andersen, LLP and new legislation that puts an end to self-governance in public accounting, the effectiveness of current models of accounting ethics have been seriously called into question. We argue that the profession suffers from fundamental limitations in its ethical framework that makes it impossible to effectively address ongoing ethical problems. The dominant representation of professional behavior is an agency model of ethics, in which the ultimate responsibility for identifying and dealing with ethical dilemmas resides with the individual. We argue that structural forces such as control over resources, meaning systems, and community norms and values also have a strong influence on the actions of accountants and that these must also be considered. The recent legitimation crisis has forced the accounting profession and its constituencies to begin to recognize and address the structural aspects of ethics as they enable and constrain action. We propose a framework based on structuration theory and learning theory that allows for systematic, multi-level investigation of the structural forces that cause ethical dilemmas to arise and to be recognized and that influence the manner in which they are analyzed and resolved. This framework should be capable of continual critique and reconfiguration as environmental conditions change.     

Antecedents of Entrepreneurial Intention among Laid‐Off Individuals: A Cognitive Appraisal Approach

This study contributes to our understanding of why laid‐off individuals might explore entrepreneurial careers. Findings among 838 laid‐off individuals suggest that financial strain is associated with negative appraisal of the layoff, and openness to change and perceived organizational support are associated with positive appraisal of the layoff. We demonstrate that the indirect effect of financial impact and openness to change via negative and positive appraisals are stronger than the direct effects. Our results are significant because they highlight the mediating role of cognitive factors on entrepreneurial intentions among laid off individuals during periods of high unemployment.     

Why Can't I Trade? Exchange Discretion in Calling Halts*,†

Stock exchanges are important intermediaries in how firm information enters price. Trading halts are a key tool, often exercised at the exchanges' discretion, to prevent extraordinary price volatility when new information arrives. We investigate how exchanges use discretion and whether the discretion alters the effectiveness of the halts. We provide evidence consistent with halts reflecting the preferences of listed firms rather than the stated exchange objectives (i.e., minimizing excess volatility and off-equilibrium trades). Furthermore, when exchanges exercise more discretion (unexplained by firm and information characteristics), the halts are less effective. Specifically, halts with more discretion are less likely to resume trading with efficient prices and are more likely to have been called unnecessarily (i.e., little to no price movement during the halt). These findings are consistent with exchanges using halts to cater to listed firms rather than to meet exchange objectives such as minimizing excess volatility or avoiding trades at off-equilibrium prices.