Union suppression and union substitution strategies of multinational enterprises in Ghana

This article complements the literature by furthering the understanding of an ‘African dimension’ of multinational enterprise (MNE) union avoidance. The evidence suggests that MNEs engaged in both union suppression and union substitution strategies by (i) exploiting young employees' apathy to promote opposition and indifference for union organisation (evil stuff), (ii) implementing union member‐centred employee retrenchment (fear stuff), (iii) using enterprise‐level collective bargaining arrangement to suppress union bargaining power (fear and fatal stuff), (iv) exploiting the fragmented labour union environment to suppress union organisation (fatal and evil stuff) and (v) promoting individual employee voice and involvement mechanisms (sweet stuff). Although MNEs in Ghana engaged in both union suppression and union substitution strategies, they appear to particularly favour the adoption of ‘union suppression’ strategies and what might be termed as ‘corridor tactics’. Our article highlights four transitional issues underpinning the emerging success of ‘corridor tactics’ in union suppression in a less developed host country.     

Evaluating the impact of TRIZ creativity training: an organizational field study

Creativity training is used by many organizations in an attempt to improve the innovativeness of their employees, yet there has been relatively little systematic evaluation carried out of the impact of such training. This study reports on the evaluation of the effectiveness of a theory of inventive problem solving (TRIZ)‐based creativity training program in a major international engineering firm. Cross‐sectional, longitudinal and multisource evaluation strategies were used to assess the impact of the training on a sample of design engineers (n = 123) and to make comparisons with nontrainees (n = 96). Results indicate that participation in TRIZ training led to short‐term improvements in both the creative problem‐solving skills and motivation to innovate of engineers, and these were associated with longer term improvements in their idea suggestion in the workplace. There was variable support for the translation of these ideas into new innovations and improved performance at work as a result of the training. Theoretical and practical implications for enhancing the effectiveness of creativity training interventions are discussed.     

Contractual governance and illiberal contracts: some problems of contractualism as an instrument of behaviour management by agencies of government

This paper considers the significance, as a matter both of politicaland of legal analysis, of the considerable and growing use inthe UK of ostensibly contractual or contract-like arrangementsbetween public authorities and members of society whose behaviourit is judged necessary to manage and control. We argue thatthese new arrangements often amount to instruments of illiberalpolicy, both in procedure and implementation. Drawing on a modelof contractual relations found in social work policy, we assessthe manifestation of contract-like features in recent governmentpolicy toward young offenders and workfare participants. Wethen provide a detailed application of the illiberal argumentin respect of the contractual arrangement promoted in the UKGovernment's New Deal programme and Jobseekers' Allowance. Weconclude that illiberal tendencies in these workfare schemesmay have unintended but nonetheless significant brutalisingeffects upon both participants and administrators.     

On the neutrality of fiscal policy

The paper explores the relationships between fiscal policy and real economic activity and prices for the six largest industrialized economies. Fiscal policy variables are shown to be consistent and rational functions of the behaviour of the economy. It is also confirmed that fiscal policy seems to have a consistent impact on subsequent real economic activity and prices. When multivariate time series analysis is used to breakdown overall fiscal policy into anticipated and unanticipated components, the anticipated components are shown generally to have just as much forecasting ability for subsequently realized economic variables as the unanticipated components. This does not appear to be consistent with the implications of pure rational expectations models.     

Value relevance of disclosed related party transactions

Several recent North American corporate scandals have brought attention to the potential for accounting manipulations associated with related party transactions (RPTs), which have lead to a decline in perceived earnings quality. We examine the value relevance of disclosed RPTs in Chinese corporations. We focus on two types of RPTs: sales of goods and sales of assets. From 1997 to 2000, we find that the reported earnings of firms selling goods or assets to related parties exhibit a lower valuation coefficient than those of firms in China without such transactions. This result is not observed during 2001-2003 after a new fair value measurement rule for RPTs came into effect. Our evidence suggests that the new RPT regulation in China is perceived to be effective at reducing the potential misuse of RPTs for earnings management purposes. Since RPTs have been the subject of numerous scandals in North America, our evidence from the Chinese stock markets suggests that new RPT accounting standards could prove an efficient solution to this issue.     

A social accounting matrix for Egypt, 1976

A 1976 Social Accounting Matrix for Egypt is presented and the methods of estimation used are described briefly. Some of the implications of the accounting are discussed. The information on the distribution of taxes and subsidies indicates that the latter are the major source of progressiveness in the fiscal system. In relation to their incomes, rural households are also shown to pay less in taxes and receive less in subsidies than urban households.     

Rural Anti-Poverty Policy For The Future*

After noting the holistic nature of the concept of poverty, four types of people illustrate some dimensions important for policy-making and planning. Ten elements in a more effective rural anti-poverty policy for Canada are outlined with an underlying focus on a systems approach which fosters the involvement of all potential contributing factors and several channels for rapid and self-correcting feedback so that policies and programs may be modified to meet functional needs. An appendix lists the 160 policy suggestions obtained at the CAES annual meeting. PROGRAMME D'ANTI-PAUVRETÉ RURAL POUR L'AVENIR: Après avoir constater failure sacrée dans le concept de la pauvreté, quatre types de gens illustrent quelques suggestions importantes pour une planification et une meilleure politique. Dix éléments sont soulignés pour une politique d'anti-pauvreté rurale plus efficace, avec une concentration de base sur une méthode d'approche, lequelle alimentera l'enroulement de tous les éléments participants et les divers votes à suivre pour une régéneration plus rapide afin que les programmes soient modifiés à faire face aux besoins fonctionnels. Un appendice énumère les cent-soixante propositions obtenues des participants à l'assemblée annuelle de la Société Canadienne d'Économie Rurale.     

Food consumption,income distribution and quality effects

Food consumption patterns in Pakistan are analysed for different income classes. Some empirical results confirm the well-known relationship between income and food expenditure. Examination of food expenditure indicates that as income rises, people spend a portion of the increase on larger quantities, but much of the increase goes on higher priced varieties. This has implications for future income generation and redistribution of income.     

Potential Welfare Losses Due to Tied Food Aid

Potential welfare losses for aid recipients due to conditions which have accompanied or have been proposed to accompany food aid are examined, and optimal (second-best) policy responses are found. Food aid is tied to importation of specific commodities, often at concessional terms rather than as an outright grant. Further conditions are imposed by donors to direct the use of the aid to achieve donor objectives. Constraints on consumption, production and importation of the aid good are considered here using a standard two-good trade theoretic model. Potential welfare losses due to income redistributional effects are also considered when factors are immobile between sectors. The primary gain from food aid equals the foreign exchange saved due to the concessional terms offered. The recipient then incurs a cost to meet donor conditions which can exceed that primary benefit. The extent to which consumption, production or importation is driven from optimality, the magnitude of the grant component of the food aid. and the extent of distribution of food aid to food producers relative to their loss in marketed surplus determine the likelihood that welfare losses can occur. An active tax and subsidy policy directly altering consumption. production, importation or income distribution is necessary to meet donor conditions and maximize social welfare. Les bénéficiaires de I'aide son! Exposés à une diminution possible du Pouvoir d'Achat, diminution provoquée par les mesures qui ont accompagné ou qui sont suceptibles d'accompagner la politique des subventions alimentaires. Ces mesures sont tout d'abord examinees, pour être, ensuite, optimalisées par le choix d'une juste politique. L'aide alimentaire est le plus souvent liée à Importation de denrees spécifiques distribuées avec des concessions partielles de prix plulôl qu'en lermes de subvention complete. De plus, certaines conditions sont imposees par les donneurs réglemenlant l'emploi de la subvention dans le but d'atteindre les objeclifs que ces derniers se sont fixes. On considerera les contraintes posées sur la consommation, la production el 1'importation des biens, comme faisanl partie d'un modele théorique normalise ou se négocient deux biens. On lient également compte des diminutions possibles du Pouvoir d'Achatprovoqueespar les effects de redistribution du revenu, dans le cas ou les agents économiques sont immobile! enlre les differents secteurs. Le premier bénéfice de I'aide alimentaire égale en fail les économies réalisees sur le change extérieur, ainsi done apporte par les differentes concessions. Le bénéficiaire supporte ensuite desfrais, ceux-ci pouvant dépasser le bénéfice initial, dans le but de rèpondre aux conditions du donneur. La maniére dont on atleint 1'optimalite dans le cas de la consommation, de la production ou de 1'importation d'eterminera la probability avec laquelle des diminutions du Pouvoir d'Achat peuvent seproduire. II en sera de méme lors du choix de I'importance de la subvention alimentaire nette et de l'étendue de la distribution de cette derniére aux producteurs, leurs produils etant confrontés à un surplus de l'offre sur le marché. Une laxe directe combinée d'une politique de subsides modifianl directemenl la consommation. la production 1'importation ou la distribution des revenus, est done nécessaire pour répondre aux conditions des donneurs et maximiser le bien-être social.     

Go before the whistle blows: an empirical analysis of director turnover and financial fraud

This study investigates whether outside directors are aware of financial fraud. Our analysis focuses on the abnormal turnover of these directors during the fraud committing period, before fraud is discovered and before lawsuits are filed. Our empirical analysis shows that, during the fraud committing period, outside directors in fraud firms exhibit an abnormal level of turnover. Examining the characteristics of outside directors and boards at these fraud firms, we find strong evidence that female directors, directors who have greater stock ownership in the firm, and directors with multiple directorships at other firms are more likely to depart fraud firms. We also find some evidence that board size, number of meetings, and fraction of financial experts are related to abnormal turnover in fraud firms during the fraud committing period. We show that abnormal director turnover is significantly higher for fraud that is considered more egregious (i.e., involving fictitious transactions and disclosure problems). Lastly, directors are more likely to depart fraud firms with more serious fraud, as proxied by higher ex-post settlement amounts and longer fraud duration.