Consumer Affairs in Rural New Zealand

Recent changes in many areas of Government policy as well as changes in the private sector have had major impacts on the provision of services in rural areas of New Zealand. This report describes the results of a New Zealand survey of 795 rural consumers. The results emphasise how the problems perceived as most important to people in rural areas are essentially linked to fundamental services such as housing, water, communications, and transport. Though this element of basic needs is covered in the consumer policy literature it is not a feature that tends to be emphasised. The survey also gauges some aspects of rural consumers' knowledge of their entitlements under New Zealand consumer law and their familiarity with, and use of, consumer advisory and support services.     

Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?

Collective action through farmer groups can be an important strategy for smallholders to remain competitive in rapidly changing markets. Previous research has analysed determinants of farmer participation in groups, equating participation with group membership. However, within groups the commitment of members can vary, as marginal benefits and costs are not the same for all individuals, and opportunities to free‐ride exist. Low participation in collective activities may reduce the ability of groups to provide useful services to its members. This article investigates determinants of member participation intensity, using the example of farmer groups in Kenya. The role of individual and group characteristics is analysed with survey data and regression models. Previous benefits that members received through the group positively influence their intensity of participation in group meetings and collective marketing, suggesting that reciprocity motives play a role. Low participation can mostly be attributed to structural and institutional conditions, such as group size and the timing of payments for collective product sales. More diversified farmers are less likely to sell collectively when group marketing activities only concentrate on one particular commodity. Since smallholders are often highly diversified, the focus of farmer groups should also be broadened. Further policy implications are discussed.     

Upper echelons and portfolio strategies of venture capital firms

In this study we analyze how the composition of the top management team (TMT) influences the portfolio strategy choice in venture capital (VC) organizations. We develop a model of risk perception to investigate how education and experience of TMT members impact whether VC organizations invest with a focus on early stage ventures or not, specialize or diversify across industries, and invest with a broad or narrow geographic scope.Evaluation of data on TMTs and portfolio strategies of 136 European VC firms revealed that VC firms with higher proportions of TMT members with science/engineering education and entrepreneurial experience more likely invest with an early stage focus. Furthermore, TMTs with more management education diversify their portfolios more across industries. Finally, the more international experience TMT members of VC organizations have, the broader the geographic scope of investees. We discuss the implications of our findings for the VC literature.     

Internationalisation of technology-oriented firms in Germany and the UK

Based on longitudinal data, this article examines empirically the long-term export behaviour of German and British technology-oriented firms founded between 1987 and 1996. Applying logit models, the results show that firms can overcome high entry costs by acquiring firm-specific assets. Similarly, firm-specific resources prevent high-tech companies from exiting the international market. The strategic role of investment in R&D is stressed in particular by the data.

Schulleistungsunterschiede zwischen den deutschen Ländern

Since 2006 school achievement of German students has been measured on a regular basis within the so-called national educational monitoring. The most recent results show considerable differences between the states. At first glance, students in the eastern and southern states perform well while students in the city-states show poor results. This paper argues that these differences cannot be attributed to state-specific school policies. Rather, a large portion of the variance between the states can be explained by social and ethnical differences. As a consequence, not only educational policy but also social and integration policies have to be reviewed in order to get a better understanding of the differences in school achievement among the German states.     

NO‐ARBITRAGE PRICING UNDER SYSTEMIC RISK: ACCOUNTING FOR CROSS‐OWNERSHIP

We generalize Merton’s asset valuation approach to systems of multiple financial firms where cross‐ownership of equities and liabilities is present. The liabilities, which may include debts and derivatives, can be of differing seniority. We derive equations for the prices of equities and recovery claims under no‐arbitrage. An existence result and a uniqueness result are proven. Examples and an algorithm for the simultaneous calculation of all no‐arbitrage prices are provided. A result on capital structure irrelevance for groups of firms regarding externally held claims is discussed, as well as financial leverage and systemic risk caused by cross‐ownership.     

Markorientierte Kernkompetenzen — Integrativer Ansatz nicht empfehlenswert

In der Wirtschaftsrise suchen Unternehme nach neuen strategischen Marketingns?tzen. So macht der Begriff der sogenannten „Marktorientierten Kernkompetenzen“ die Runde, ein Konzept, das die klassische marktbasierte Sicht und die ressourcenbasierte Sicht des Strategischen Managements integrieren will. Dieser Beitrag zeigt, warum ein solche Ansatz für die Wirtschaft wenig zielührend ist.     

Professor Dietrich Oppenberg verstorben

Ohne Zusammenfassung     

Managing Employee Compensation Risk

Review of Accounting Studies - We analyze a principal-agent model in which the principal (e.g., shareholders) and the agent (e.g., an employee) can personally trade securities tied to the outcome...