Competitive and Information Effects of Cross-Border Stock Listings

We examine the effect of 269 cross‐border listings on rivals in the listing and domestic markets and find that U.S. rivals experience significant gains whereas domestic rivals do not. Both competitive and information effects are important in explaining the reaction of U.S. rivals. Regarding the competitive effects, the reaction of rivals is less favorable when listings originate in developed countries and more favorable when listing firms do not have prior operating presence in the United States. Regarding the information effects, the reaction is less favorable when listings are combined with equity offerings and more favorable when the listing is the first to occur within an industry.     

Sources of Bank Interest Rate Risk

We investigate bank stocks'sensitivity to changes in interest rates and the factors affecting this sensitivity. We focus on whether the exposure of commercial banks to interest rate risk is conditioned on certain balance sheet and income statement ratios. We find a significantly negative relation between bank stock returns and changes in interest rates over the period 1991–1996. We also find that bank characteristics measured from basic financial statement information explain bank stocks'sensitivity to interest rate changes. These results suggest that bank managers, analysts, and regulators can use this information to assess the relative risk exposure of banks.     

The Coevolution of the Real and Financial Sectors in the Growth Process

The role of debt and equity changes over time and with the levelof development. What are these changes, and why should theysystematically occur across different countries and time periods?This article characterizes financial innovation as a dynamicprocess that both influences and is influenced by the developmentof the real sector. It focuses on the emergence and developmentof equity markets, using a model that allows for growth andfor capital accumulation that is financed externally througha combination of debt and equity. As an economy develops, theaggregate ratio of debt to equity will generally fall; yet,debt and equity remain complementary sources for the financingof capital investments. The results suggest how various governmentpolicy actions might affect capital accumulation and equitymarket activity.     

Accidents will happen: safety-critical knowledge and automated control systems

This article presents findings from a study of control operators that raise concerns about safety-critical knowledge, culture and training. It is argued that the adoption of automated control systems can hinder the transfer of knowledge amongst operators, and this becomes an increasingly serious hazard as tacit knowledge is lost because of employee turnover.     

The aggregated excess demand function and other aggregation procedures

Summary Two theorems are given; the first extends the Sonnenschein-Mantel-Debreu theorem characterizing aggregate demand functions from the set ofn2 commodities to all of the 2 ⁿ –(n+1) subsets of two or more commodities. The second theorem concerns spatial voting models for k2 candidates over a space of n2 issues. The theorem characterizes the sincere elecion rankings of thek candidates over all of the 2 ⁿ –1 subsets of one or more issues. Both theorems have the same kind of conclusion; anything can happen. By demonstrating the mathematical reasons for these conclusions and by recalling related, recent results from statistics, voting, and economics, it is argued that this anything can happen conclusion is the type one must anticipate for aggregation procedures; particularly for the processes commonly used in economic models where the procedure is responsive to changes in agents' preferences, changes in data, etc.I am pleased to acknowledge conversations with L. Hurwicz, A. Mas-Colell and C. Simon about this material. In particular, I want to thank J. Jordan for his several helpful suggestions. Also, I benefited from comments made at meetings and seminars where these results were presented; this includes a June, 1990, conference in Stockholm, Sweden. Some stylistic suggestions were made by Arvid and Padon Kalinen. This research was supported, in part, by NSF Grant IRI-8803505.     

Managers’ Corporate Entrepreneurial Actions and Job Satisfaction

Through the development and extension of theories and scholars’ subsequent empirical analyses of significant, theoretically grounded research questions, the knowledge about corporate entrepreneurship (CE) and its successful use continues to advance. Moreover, the literature suggests important relationships between the corporate environment, managers’ entrepreneurial behavior and successful implementation of corporate entrepreneurship actions. In an attempt to test some of those relationships, we describe an empirical study of 523 managers that examines the relationships among the antecedents to managers’ entrepreneurial behavior, a decision to implement entrepreneurial actions, and resulting job satisfaction and reinforcement practices.     

The relevance of democracy to organizational management

The relationship between democratic ideals and organizational structuring and functioning receives attention in this article. After a brief historical consideration of liberal democracy in the United States, we analyze social, managerial, ethical, and economic issues defining the relevance of democracy to organizational management. These issues lead to a presentation of specific purposes that particular mechanisms of organizational democracy can serve. Because of other scholarly attention to participative management and employee ownership, hierarchical constraints receive emphasis here.     

A Property Rights Paradox: George and Rothbard on the Conservation of Environmental Resources

A bstract . Murray N. Rothbard is recognized as one of the most articulate modern critics of Henry George's land value tax. A leading libertarian thinker, Rothbard condemns George's recommendation that government act to affect private transactions in land, arguing that such interventions infringe on previously defined private property rights. However, Rothbard's social system has no explicit mechanism for accommodating the emergence of tradeable property rights to newly recognized environmental resources. In effect, Rothbard calls for controls on such resources—no trading. Henry George, on the other hand, provides for the evolution of new property rights and their emergence into private markets. The paradox here is that George's solution to the property rights question might accommodate the social yearnings of one of his most severe critics, Murray N. Rothbard.     

The Impact of Transaction Costs and the Expected Length of Stay on Homeownership

Economic theory suggests that an increase in the expected length of stay in a dwelling increases the probability of a household choosing to own a house rather than rent. This hypothesis is derived from recognition that there are substantial transaction costs associated with homeownership and increased expected time in the home reduces the annualized transaction cost. Using a military data set, we confirm that expected length of stay in a dwelling and the transaction costs of selling are very important to the ownership decision. Our best estimate of the transaction costs of selling a home are the sum of 3% of house value and 4% of household earnings.