Sources and management of tension in co-opetition case evidence from telecommunications satellites manufacturing in Europe

Co-opetition is filled with tension due to inherent contradictory and opposing forces. In this research, we develop a multi-level conceptual framework that helps to understand key drivers of tension in co-opetition and key approaches to managing the tension. We combine literature-based conceptual arguments and insights from in-depth study of one exemplar case of co-opetition between Astrium (EADS group) and Thales Alenia Space (Thales group) within the sector of telecommunications satellites manufacturing in Europe. Our findings highlight multiple sources of co-opetitive tension at different levels. Further, our research shows that a mixed organization based on both separation and integration of competition and cooperation is helpful to understand and effectively manage tension in co-opetition. This paper offers case-based rich insights on the sources and management of tension and has important implications for the design and conduct of future empirical research.     

Draining the judiciary bottleneck: A quasi-experiment in improving a government service

This study describes judicial reform as a quasi-experiment. The reform is the deployment and implementation of the GICA-Justicia (Gestión Integral de Calidad y Acreditación: Quality and Accreditation Integral Management) Quality-Management Standard (QMS) within the Second Court of Appeal of Costa Rica's Supreme Court; the reform includes process improvements following the implementation. The study of impact includes a direct comparison to its homologous in Panama's Justice System. The GICA-Justicia emerges in the QMS environment as a process-performance tracking and improvement tool for accreditation of district courts and courts of appeal. This study offers “sui generis state of the art” empirical know-how via the use of an interrupted time series quasi-experiment. This study contributes to literature by unveiling a successful new judicial service improvement design in a Latin-American context.     

Method of moments estimation of GO-GARCH models

We propose a new estimation method for the factor loading matrix in generalized orthogonal GARCH (GO-GARCH) models. The method is based on eigenvectors of suitably defined sample autocorrelation matrices of squares and cross-products of returns. The method is numerically more attractive than likelihood-based estimation. Furthermore, the new method does not require strict assumptions on the volatility models of the factors, and therefore is less sensitive to model misspecification. We provide conditions for consistency of the estimator, and study its efficiency relative to maximum likelihood estimation using Monte Carlo simulations. The method is applied to European sector returns.     

The optimal bid/ask spread in a Specialist System

In this work we propose a simple market model where some features of the Specialist System are analyzed. In particular, the specialist's obligation to display bid/ask quotes on the book within the bounds imposed by the Exchange is considered. The proposed model allows to analyze the effects of the specialist's interventions on the short term dynamics of bid/ask prices and address a relevant market design issue, that is determination and analysis of the optimal endogenous upper bound that - according to economic conditions - should be imposed by Stock Exchange on the quoted bid/ask spread. The institutional details are summarized in a few structural parameters and the focus is on the aggregate effects of excess demand/supply.     

Union Representatives in Labour–Management Partnerships: Roles and Identities in Flux

This study examines the challenges met by union representatives (URs) who have to reconstruct their traditional role in the context of labour–management partnerships. They are innovators involved in the transition to renewed labour relations. Identity issues and role conflicts are examined through an in‐depth analysis of the process involved in assimilating this new role in unionized organizations. The results suggest that URs subordinate the partner role to the interest representation role. Interviews suggest that this enhanced union legitimacy. Some blurring of traditional social categories such as those of employee or employer is possible to the extent that the relations between the actors are founded on interpersonal relations.     

Price determinants of Aboriginal art, and its role as an alternative asset class

This paper analyzes auction results for over 4000 paintings by Australian Aboriginal artists to investigate determinants of prices in the Aboriginal art market. This is the first financial study of an indigenous art market, and hedonic, repeat sales and hybrid regression analyses find it shares price determinants with traditional art markets (with price premia attached to artist name, death, painting size, leading auction house, and winter sale). However, Aboriginal art’s unique features significantly affect prices, particularly works that use traditional Aboriginal media and those with reputation-affirming traits. An Aboriginal Art Index provides 6.6% annual return (standard deviation 17.9%), which is comparable to traditional asset classes and superior on a risk-adjusted basis. Returns to Aboriginal art are negatively correlated with returns from other assets, and so it adds value to a diversified investment portfolio.     

Earnings fraud: board control vs CEO control and corporate performance – 1992–2004

The turn of the millennium is associated with increased corporate fraud, largely attributed to the failure of corporate governance. The compensation committee is expected to minimize fraud by rewarding only appropriate CEO behavior. A causal modeling approach, the Directed Acyclic Graph, was used to estimate the structure of corporate fraud. Corporate fraud was measured as illegal earnings statement(s), not all restatements but only those found illegal. A major finding is that the CEO's stock‐option compensation motivates the CEO to commit corporate earnings fraud, while cash salaries and bonuses are only indirectly related to earnings fraud through those stock options. Copyright © 2010 John Wiley & Sons, Ltd.     

Corporate Power and the Development of New Competition Policies in Canada

The aim of this paper is to associate elements of Aristotle's view of a "good society" with the development ethics standpoint of a "good society." For Aristotle, the vehicle to "eudaimonia" and to a "good society" is "politics." We argue that development ethics provides an ethical response to the question "what is good society" based on Aristotle's key concept of "eudaimonia." The Aristotelian vision for a "good life" can be perceived as a precursor and a contributor to development ethics perspective for a "good society."     

Involuntary corporate finance: the dominance of history in decisions

Lagged values of corporate finance decisions are known to be economically important, but most analyses ignore them. This article examines the influence on five key financial decisions of previous decisions using a data set that includes industry census data. It finds that lagged values explain between 25% and 36% of decisions on leverage, payout and investment, which gives them strong predictive ability. In regression of these decisions on firm and industry traits, omission of lagged values leads to a change of around one-third in parameter estimates, and so significantly overstates their impact. The influence of lagged values persists, and for most decisions is significant for several years. Given the stickiness in financial decisions, there are potentially significant analytical problems from ignoring their lagged values.