Political Economy Influences Within the Life‐Cycle of IMF Programmes

Increasing attention is being paid to political economy dimensions of the IMF's operations. However, up until now, the literature has lacked a systematic overview of how politics and economics interact in this context. This paper sets out to fill the gap. Its conceptual basis is that of the ‘life cycle’ of an IMF programme. What determines the decision to turn to the Fund for financial assistance, what determines the outcome of negotiations, what determines whether a country will come back to the Fund? Answers to these questions cannot be satisfactorily given by examining economics alone. The paper draws on existing evidence to provide an empirically based discussion of the issues involved. It also points the direction in which future research needs to go. Some of the policy implications of the analysis are also examined.     

Intercommunity relationships and community growth in China's high technology industries 1988–2000

In this study, we examine how intercommunity relationships affect the growth of organizational communities. Using a unique panel dataset on 53 technology development communities in China spanning 1988–2000, we found that regional community density, a community's geographic proximity to the nearest community and its domain overlap with the nearest community have an inverted U‐shaped relationship with the community's growth. These non‐monotonic results suggest that adjacent communities have both mutualistic and competitive effects on each other. Theoretical and managerial implications are discussed. Copyright © 2008 John Wiley & Sons, Ltd.     

When the Former CEO Stays on Board: The Role of the Predecessor’s Board Retention for Product Innovation in Family Firms

Understanding product innovation in family firms is an important research endeavor given the economic predominance of those firms, their idiosyncrasies, and the importance of constant renewal for those firms to achieve transgenerational survival. Recently, family firm research has highlighted the role of next-generation chief executive officers (CEOs; i.e., successors) who are often seen as drivers for innovating a family firm’s products. However, prior research has typically neglected that predecessors, who are often portrayed as less willing to introduce product innovation, frequently remain involved postsuccession through occupying board positions and thus still substantially influence the decision-making processes and outcomes of family firms, such as product innovation. As a result, our understanding of the role of predecessors and their postsuccession involvement in family firms’ product innovation remains unclear. Building on stakeholder salience theory and on insights from the literature on innovation and succession in family firms, we develop hypotheses about how and under which conditions the predecessor’s board retention affects product innovation in family firms after succession. Building on more than 200 family firm CEO succession cases in small- and medium-sized, privately owned family firms, our results reveal that the predecessor’s board retention negatively affects product innovation. This negative effect is strengthened with increasing involvement of the predecessor in the successor selection process, and it is offset in the case of family succession. Our findings contribute to the emerging stream of research on family firm succession and product innovation and provide important implications for practice.     

The impact on the pricing process of costly active management and performance chasing clients

One of the necessary features of markets to produce efficient pricing is competition between information-based investors who quickly impound new information into price. However, a significant proportion of funds invested in today’s equity markets are in the hands of managers who pursue a style that utilises little or none of the available information. We simulate such a market where the funds are being managed using the following three investment styles: fundamental, momentum and index. We confirm that the major pricing anomalies that have been highlighted previously in the literature are a natural consequence of competition between managers utilising these three investment styles. More importantly, we show that this situation is unlikely to change as long as markets continue to be dominated by costly active managers with clients who pursue outperformance.     

Importers' benevolence toward their foreign export suppliers

In this article, the authors report the development and testing of a model of importers' benevolence toward their foreign export suppliers. The model posits that an importer's satisfaction with and commitment to its relationship with a foreign export supplier will have a positive impact on the importer's benevolence toward that supplier, that an importer's benevolence positively influences relationship performance, and that the benevolence-performance link is moderated by relationship duration. The authors tested the model with a sample of U.S. importers who buy from foreign exporters. The results indicate that the importers' commitment to the relationship significantly influenced its benevolence; however, importers' satisfaction with the relationship did not significantly affect their benevolence. Importers' altruistic benevolence had a positive impact on performance in mature relationships but not in new relationships. Importers' mutualistic benevolence had a significant influence on performance regardless of relationship duration. Dong-Jin Lee (djlee@base.yonsei.ac.kr) (Ph.D, Virginia Tech) is an associate professor of marketing at Yonsei University in Seoul, Korea. His research has been published in theJournal of Marketing, theInternational Journal of Marketing Research, and theJournal of Advertising, among others. His research interests include relationship marketing and quality-of-life studies. M. Joseph (Joe) Sirgy (sirgy@vt.edu) (Ph.D., University of Massachusetts) is a consumer psychologist, professor of marketing, and Virginia Real Estate Research Fellow at Virginia Polytechnic Institute and State University. He has published extensively in the area of consumer behavior and quality-of-life research. He is the author/editor of several consumer behavior and quality-of-life research books. He presently serves as an editor of the Quality-of-Life/Marketing section of theJournal of Macromarketing. He founded the International Society for Quality-of-Life Studies in 1995 and is currently serving as its executive director. He coorganized at least seven conferences related to quality of life. He has served the Academy of Marketing Science (AMS) in many positions dating back to the early 1980s (e.g., board of governors, VP-programs, president-elect, cochair of several AMS conferences, conference track chairs). James R. Brown (jamesb@vt.edu) (D.B.A., Indiana University) is a professor of marketing in the Pamplin College of Business at Virginia Polytechnic Institute and State University. His research has been published in theJournal of Marketing, theJournal of Marketing Research, theJournal of the Academy of Marketing Science, and theJournal of Retailing, among others. He serves on the editorial review boards of several leading academic journals in marketing. His research interests focus on the structure, behavior, and performance of marketing channels and channel institutions. Monroe Murphy Bird (mobird@vt.edu) (Ph.D., University of Arkansas) is a professor of marketing and the National Association of Purchasing Managers (NAPM) Carolinas-Virginia Professor of Purchasing in the Pamplin College of Business at Virginia Polytechnic Institute and State University. His research has been published in theJournal of Marketing, theJournal of the Academy of Marketing Science, theJournal of Retailing, Industrial Marketing Management, and theAcademy of Management Journal, among others. He has served on the editorial boards of several of the business-to-business marketing journals for many years. His major research interests have been in profit and productivity advances within the business-to-business area, with a special emphasis in the industrial sector of that field. As of late, he has turned his interests to ethical issues in business-to-business buying and selling.     

THE IMF: A BIRD'S EYE VIEW OF ITS ROLE AND OPERATIONS

Abstract The International Monetary Fund (IMF) is the world's premier international financial institution with 184 member countries and active programmes in a significant number of them at any one time. The Fund attracts a great deal of attention, much of it critical. But the discussion is often polemic in style. Strongly held, but frequently opposing, views are expressed. This survey attempts to examine, in an objective way, the theory and evidence relating to the Fund's operations. Many aspects of the empirical research are relatively recent and a universal consensus is yet to emerge; as a consequence there is scope for disagreement to persist. However, the research is also gradually clarifying many important issues. The format for the survey is to examine the life cycle of IMF arrangements. What makes a country turn to the Fund for assistance? Should the IMF be lending? What influences the outcome of negotiations and the design of programmes? Are IMF programmes effective? And why do some countries make prolonged use of IMF resources? For completeness there is also some discussion of the history of the IMF, the extent to which Fund policies have been influenced by advances in economic theory and the Fund's systemic role. Important organisational and governance issues are also covered briefly. Although primarily adopting an economist's perspective, the survey reflects the growing recognition that in order to understand the IMF's operations, economics has to be combined with politics. Examining the IMF is an exercise in applied political economy.     

What Corporate Social Responsibility Activities are Valued by the Market?

Corporate management is torn between either focusing solely on the interests of stockholders (the neo-classical view) or taking into account the interests of a wide spectrum of stakeholders (the stakeholder theory view). Of course, there need be no conflict where taking the wider view is also consistent with maximising stockholder wealth. In this paper, we examine the extent to which a conflict actually exists by examining the relationship between a company’s positive (strengths) and negative (concerns) corporate social responsibility (CSR) activities and equity performance. In general, we find little evidence to suggest that managers taking a wider stakeholder perspective will jeopardise the interest of its stockholders. However, our findings do suggest that the market is not only influenced by the independent CSR activities, but also the totality of these activities and that the facets that they value do vary over time. It seems that␣most recently, the market has valued most firms that satisfied minimum requirements in the areas of diversity and environmental protection but were most proactive in the area of employee-relations. Ron Bird is an Emeritus Professor in the School of Finance and Economics at the University of Technology, Sydney. His research interests focus on market implications of corporate social responsibility and also dysfunctionality within capital markets. He received his Master's degree in economics at Monash University in 1971. Anthony D. Hall is currently the Head of the School of Finance and Economics and Director of the Quantitative FinanceResearch Centre at the University of Technology, Sydney. His research interests cover all aspects of financial econometrics. He was awarded a PhD in econometrics from the London School of Economics in `976.Francesco Momente is Professor of Corporate Finance at the Bocconi University, Milan (Italy). His research intersts focus on the market valuation of corporate social responsibility and the value relevance of accounting information.He received his PhD in General Management at Ca' Foscari University, Venice (Italy) in 1998. Francesco Reggiani is Professor of Corporate Finance at the Bocconi University, Milan (Italy). His research interests focuson the market valuation of corporate social responsibility and corporate governance. He received his PhD in GeneralManagement at Bocconi University in 2001.