Failures to Deliver,Short Sale Constraints,and Stock Overvaluation

Studying a large sample of publicly available data on failures to deliver, we find that stocks reaching threshold levels of failures become significantly overvalued. Where short sale constraints are especially binding, we report extreme overpricing and subsequent reversals. These findings support the overvaluation hypothesis, although the mispricing is likely to be difficult to arbitrage because of extreme shorting costs. In addition, threshold stocks with low short interest become more overvalued than threshold stocks with high short interest. This suggests that the level of short interest reflects supply‐side effects when the examination conditions on the difficulty of borrowing shares.     

Masculinising domesticity: an investigation of men’s domestic foodwork

Abstract

This study examines how men configure their gendered identity in relation to a traditionally feminised domain. Hegemonic masculinity is said to structure men’s dominance over women. We use the lens of hegemonic masculinity along with social fields of cultural production to understand new allocations of status capital in relation to gendered identity work. Sweden, a country permeated by an ideology of egalitarianism and having a history of high economic and symbolic incentives for the domestic field, has seemingly legitimised the domestic consumption field in the search for higher status. By exploring the transforming meanings of masculinity when men enter a traditionally feminine consumption domain in this particular cultural context, we identify how feminised masculinities are shaped into hegemonic masculinity. This in turn suggests that the currently most honoured way of being a man includes forms of masculinities that incorporate egalitarian relationships between men and women.     

A Cross-Cultural Examination of the Endorsement of Ethical Leadership

The western-based leadership and ethics literatures were reviewed to identify the key characteristics that conceptually define what it means to be an ethical leader. Data from the Global Leadership and Organizational Effectiveness (GLOBE) project were then used to analyze the degree to which four aspects of ethical leadership – Character/Integrity, Altruism, Collective Motivation, and Encouragement – were endorsed as important for effective leadership across cultures. First, using multi-group confirmatory factor analyses measurement equivalence of the ethical leadership scales was found, which provides indication that the four dimensions have similar meaning across cultures. Then, using analysis of variance (ANOVA) tests each of the four dimensions were found to be universally endorsed as important for effective leadership. However, cultures also varied significantly in the degree of endorsement for each dimension. In the increasingly global business environment, these findings have implications for organizations implementing ethics programs across cultures and preparing leaders for expatriate assignments. Christian J. Resick is Assistant Professor of Industrial and Organizational Psychology at Florida International University. His research is aimed at understanding how people interact with and influence various aspects of their work environments, including cultures, climates, leaders, and teammates along with the implications for various aspects of organizational behavior. A particular focus of Christian’s work examines ethical leadership and the critical linkages between leadership and organizational ethics. He received his Ph.D. from Wayne State University. Paul J. Hanges is a professor in the Department of Psychology at the University of Maryland and the head of the Industrial/Organizational Psychology program in the department. He is an affiliate of the Cognitive Psychology program and the R. H. Smith School of Business. Paul’s research focuses on three topics (a) social cognition, leadership, and cross-cultural issues; (b) personnel selection, test fairness, and racial/gender discrimination; and (c) research methodology. He is on the editorial board of the Journal of Applied Psychology and The Leadership Quarterly and is a fellow of the Society of Industrial and Organizational Psychology and the American Psychological Association. Marcus W. Dickson is Associate Professor of I/O Psychology at Wayne State University in Detroit. His research generally focuses on issues of leadership and culture (both organizational and societal), and the interaction of those constructs. He is a former Co-Principal Investigator of the GLOBE Project, and his work has appeared in Journal of Applied Psychology, Applied Psychology: An International Review, and The Leadership Quarterly, among others. Jacqueline K. Mitchelson is a doctoral candidate in Industrial and Organizational Psychology at Wayne State University. Her current research areas are leadership, organizational culture, individual differences and work-family conflict.     

Leaders,Values, and Organizational Climate: Examining Leadership Strategies for Establishing an Organizational Climate Regarding Ethics

This paper examines the critical role that organizational leaders play in establishing a values based climate. We discuss seven mechanisms by which leaders convey the importance of ethical values to members, and establish the expectations regarding ethical conduct that become engrained in the organizations climate. We also suggest that leaders at different organizational levels rely on different mechanisms to transmit values and expectations. These mechanisms then influence members practices and expectations, further increase the salience of ethical values and result in the shared perceptions that form the organizations climate. The paper is organized in three parts. Part onebegins with a brief discussion of climates regarding ethics and the critical role of values. Part two provides discussion on the mechanisms by which leaders and members transmit values and create climates related to ethics. Part three provides a discussion of these concepts with implications for theory, research, and practice.     

Corporate sustainability in asset pricing models and mutual funds performance measurement

This study explores whether corporate sustainability is a relevant factor in multifactor asset pricing models. It contributes to the literature on asset pricing, as well as to the literature that examines how sustainability impacts capital markets, by constructing a new factor that captures differences in the returns of sustainable and non-sustainable firms. Specifically, it examines whether an additional sustainability factor has explanatory power in asset pricing models that include size, book-to-market equity, and momentum factors. This research has practical implications for the performance measurement of portfolios and mutual funds that are managed in accordance with sustainability criteria in that it disentangles general stock-picking skills from the differences in returns between sustainable and non-sustainable stocks.     

Changes in european defence procurement and industrial capabilities

The impact of defence procurement on a country's industrial and technological base can be considerable—among NATO countries, the USA, Britain and France stand out in this regard. Equally, concern is also often expressed about how to safeguard the civil technology base as a necessary foundation for security, broadly conceived. This article examines the changes taking place in the UK, and more broadly in Europe, regarding defence procurement: first, by examining arguments and events regarding defence R&D; and second, through analysing procurement issues relating especially to industrial structures and strategies. Much strategic repositioning by firms is currently taking place, often encouraged by governments, who seem to lack adequate means of regulating the restructuring, thereby creating unintended problems.     

Australia's ASRB. A Case Study of Political Activity and Regulatory ‘Capture’

The establishment of an Accounting Standards Review Board (ASRB) in Australia followed proposals for greater government and community involvement in the development of accounting rules, and concern about the low level of compliance with the accountancy profession's standards. The profession had opposed proposals for a review board. The Ministerial Council for Companies and Securities overrode these objections, yet avoided giving any formal authority to the ASRB. In this environment the way was left open for renewed opposition to arrangements which had reduced the profession's capacity to control the standard-setting process. The newly-formed ASRB was vulnerable if it was unproductive—and it encountered delays and difficulties in receiving and processing submissions from the profession. The Board lacked the authority (and the will) to enforce its priorities. After two years the Board abandoned earlier efforts to secure wider community participation in its activities, and announced ‘fast track’ procedures which were to be applied only to those standards which the profession chose to submit for review.

This history suggests that the ASRB had been ‘captured’ by interest groups that it had been established to regulate. The history also casts doubts on claims that the political processes adopted in Australia for the development of accounting rules are consistent with notions of ‘pluralism’; rather, those arrangements seem closer to the form of interest-group politics labelled ‘neo-corporatism’.     

Provision versus Appropriation in Symmetric and Asymmetric Social Dilemmas

Social dilemmas characterize decision environments in which individuals' exclusive pursuit of their own material self‐interest can produce inefficient allocations. Social dilemmas are most commonly studied in provision games, such as public goods games and trust games, in which the social dilemma can be manifested in foregone opportunities to create surplus. Appropriation games are sometimes used to study social dilemmas that can be manifested in destruction of surplus, as is typical in common‐pool resource extraction games. A central question is whether social dilemmas are more serious for inhibiting creation of surplus or in promoting its destruction. This question is addressed in this study with an experiment involving three pairs of payoff‐equivalent provision and appropriation games. Some game pairs are symmetric, whereas others involve asymmetric power relationships. We find that play of symmetric provision and appropriation games produces comparable efficiency. In contrast, power asymmetry leads to significantly lower efficiency in an appropriation game than in a payoff‐equivalent provision game. This outcome can be rationalized by reciprocal preference theory but not by models of unconditional social preferences.