Corporate hedging and input price risk

Input price variability is an important source of risk for corporations that process raw commodities. Models of optimal input hedging are developed in this paper based on the maximization of managerial expected utility. The relationship between hedging strategies and output decisions is examined to assess the impact of the ability to set output prices on futures market participation. As a firm's ability to set output prices diminishes in the short run, input futures positions increase although the optimal hedge ratio may either increase or decrease. For a perfectly competitive firm, however, shifts in output price caused by input price changes provide a natural cash market hedge of input price risk and reduce the firm's optimal input futures position.     

From schoolyard to workplace: The impact of bullying on sales and business employees' machiavellianism,job satisfaction,and perceived importance of an ethical issue

Bullying can precipitate many negative outcomes at work, but previous research does not adequately address how such misbehavior affects employee dispositions and attitudes; how these characteristics impact ethical decision making is also underexplored. Given these research gaps, the purpose of this study is to assess (1) the impact of bullying on Machiavellianism and job satisfaction, and (2) the influences of Machiavellianism and job satisfaction on perceived ethical issue importance, a measure of ethical decision making. Three hundred eighty‐four sales and business employees working for different firms operating in the United States answered a self‐report questionnaire. The findings showed that, after accounting for social desirability bias, workplace bullying was positively associated with Machiavellianism and negatively associated with job satisfaction. Machiavellianism was negatively related to the perceived importance of an ethical issue embedded in a vignette highlighting Machiavellianism and latent bullying behaviors. In addition, job satisfaction was positively related to ethical issue importance. Finally, both Machiavellianism and job satisfaction mediated the relationship between bullying experiences and importance of an ethical issue, as evidenced by their significant indirect effects. HR professionals should minimize bullying and Machiavellianism to reduce the corrosive effect on the ethical environment and enhance work attitudes and ethical decisions.     

The Benefit Function Approach to Modeling Price-Dependent Demand Systems: An Application of Duality Theory

In this article, we advocate more extensive use of the benefit function in specifying price-dependent or inverse demand models. We demonstrate how duality theory may be used to establish the interrelationships between the Marshallian (or Hicksian) inverse demands and Luenberger's adjusted price functions, allowing estimable inverse demands to be derived directly from a benefit function. We estimate two systems of inverse demands for Japanese quarterly fish consumption. Results indicate that the procedures and methods employed here appear promising, and may prove beneficial for quantity and welfare analysis when modeling systems of inverse demand functions.     

The tragedy of the commons: property rights and markets as solutions to resource and environmental problems

In one way or another, all environmental and natural resource problems associated with overexploitation or under provision of public goods, arise from incompletely defined and enforced property rights. As a result private decision makers do not consider or internalize social benefits and costs in their production or investment actions. The gap between private and social net returns results in externalities – harmful effects on third parties: overfishing, excessive air pollution, unwarranted extraction or diversion of ground or surface water, extreme depletion of oil and gas reservoirs. These situations are all examples of the 'The Tragedy of the Commons'. In this paper, I consider options for mitigating the losses of open access: common or group property regimes, government tax and regulation policy, more formal private property rights. I briefly summarize the problems and advantages of each option and describe why there has been move toward rights-based instruments in recent years: ITQ (individual transferable quotas), tradable emission permits, and private water rights. Introductions to the papers in the special issue follow.     

Marketing Organic Pasta from Big Sandy to Rome: It's a Long Kamut ®

Bob Quinn spent 20 years propagating an ancient Egyptian wheat variety that is generally known as Khorasan wheat. Bob trademarked his wheat variety using the brand name "Kamut^®." Kamut^® brand wheat contains some nutritional, health, and taste advantages over modern wheat varieties, but lacks some of modern wheat's agronomic advantages. Kamut^® brand wheat is organically produced, and is used to make cereals, breads, cookies, snacks, pancakes, bread mixes, bulgur, pasta, and baked goods. Whole wheat products produced from Kamut^® brand wheat are less bitter than those produced from modern wheat varieties. Europe represents approximately two-thirds of the market for this product.     

Town centre management in the UK: A review,synthesis and research agenda

Despite rapid growth in the number of town centre management schemes in the UK there have been few attempts to consider this topic from an academic perspective. This article develops a typology of town centre management schemes, based upon a comprehensive review of existing literature. The criteria of organizational structure and resource origin are identified as primary influences in the initiation and development of such schemes. The article concludes by outlining a research agenda which considers both local governance and spatial and temporal themes in the initiation and development of town centre management. The analysis of such factors is vital to a fuller understanding of this area.     

Measuring the information age business

There are seven important characteristics of information age businesses which differ in a major way from traditional industrial age businesses. We should expect that managing this new type

of business will require different management information, knowledge and skills. But what metrics precisely should an information age business manager watch and how should they be used? Two such

metrics, structural effectiveness and knowledge productivity are proposed and discussed. In the information age business, effectiveness, a balance between doing things right (effciency) and doing the right things, is

needed, The structural effectiveness metrirs called .complexity dynamicism and intergration reduce to quanitifiable terns the degree to which the structure of the business's work processes encourage or inhibit effective business operations. Knowleage must be treated as an independent driver of the information age business, in addition to the labor, capital and raw materials which drove industrial age businesses. Managers (and owners) must have a way of measuring how well the knowladge assets of a business are being utilized. The knowledge productivity metric measure this utilization in a way analogous to how managements nurturing of capital assets is measured (i.e. return on capital).     

Auditing Human Resource Management in the Global Environment

The globalization of business is making it increasingly important to understand how multinational enterprises (MNEs) can operate more effectively. Human resource management can be a critical determinant of corporate effectiveness, particularly as it plays out in the global arena. This article discusses how MNEs enhance their ability to utilize human resources and internal labour markets for competitive advantage through audits of the international human resource management (IHRM) function. A multidimensional auditing framework is developed and applied to the strategic aspects of IHRM in MNEs and international joint ventures.     

The Impact of Program Environment on Recall of Humorous Television Commercials

This study investigated the possible effect of television program types on the recall performance of humorous television commercials. An experimental design was developed to test the relative performance of the same humorous and non-humorous ads in three different contextual environments—situation comedy, action/adventure, and documentary. The findings indicate that the recall performance of commercials and of the product or service promoted are both affected by the program environment within which the ads appear.     

Effectiveness and Efficiency in Privatization Advertising

The privatization of a number of British nationalized industries during the 1980s involved the use of substantial marketing and, in particular, advertising expenditure. When the same or similar activities are repeated, some experience or learning curve effect can be expected, such that the relative efficiency of performing that activity rises. From an examination of the objectives for and the process of privatization, a learning curve effect might be expected that would result in a progressive lowering of privatization marketing and advertising costs.

The data on privatization from 1981 to 1989 shows the expected learning curve effect for total marketing cost, the total cost reducing over subsequent privatizations. However, the relative cost of advertising first rose and then failed to fall, even when the objectives for privatization changed from widening share ownership to deepening it. The expected learning curve is not then observable, leading to the conclusion that inefficiency existed in the advertising of privatizations, particularly in the late 1980s, and that considerable sums could have been saved if a different strategy had been followed.