The Role of Pension Business Benefits in Institutional Block Ownership and Corporate Governance*

We investigate whether potential pension contracting benefits lead institutions that provide pension services to acquire ownership blocks in firms and the implications of such blockholdings on the firms' corporate governance. We use the 2006 Pension Protection Act, which expanded pension participation in certain states, as a quasi-exogenous shock and find an increase in block ownership by pension-providing institutions in firms with substantial operations in affected states. Further, we find that the acquisition of a large block increases the likelihood that the institution will provide future pension services to the firm. With regard to corporate governance, we find that the acquisition of large pension blockholdings is associated with higher CEO pay and lower CEO turnover following poor financial performance. However, contrary to the prediction of the private benefits hypothesis, we do not find consistent evidence that large pension blockholdings are associated with declining firm profitability, suggesting that pension institutions are incentivized to exert monitoring to preserve the investment value of their blockholdings. Overall, our evidence is consistent with pension service institutions acquiring ownership blocks to obtain pension contracts, but our evidence does not support the prediction that they use their influence to compromise shareholder value.     

The role of technical expertise in firm governance structure: evidence from chief financial officer contractual incentives

We provide evidence that the presence of technical expertise in firm governance structure reduces reliance on contractual incentives to control the potential agency problem for executives whose responsibilities require specialized knowledge. Specifically, we find that firms with financial expertise in the form of a board finance committee, or a chief executive officer with a financial background, tend to use lower levels of incentive‐based compensation for their chief financial officers. Our findings suggest financial experts provide stronger oversight and/or direction with regard to firm financial policies and strategies, thereby allowing firms to reduce reliance on incentive compensation. Our study provides insight into the role of technical expertise and board committees in firm governance, and into the benefits of common functional expertise within top management teams. Copyright © 2010 John Wiley & Sons, Ltd.     

Firm Efficiency in Cambodia's Garment Industry on the Eve of the Multi‐Fiber Arrangement Termination

Applying a frontier analysis to 2004 firm‐level data, the present paper investigates firm efficiency and its determinants for Cambodia's garment industry. The study finds that firm experience and remuneration are crucial for improving scale efficiency and overall technical efficiency, while effective use of capital and adequate labor‐skill development are important for enhancing a firm's technical capabilities. Foreign‐owned enterprises with a relatively larger share of foreign labor outperform local firms. However, the present study does not reveal evidence of any advantages of a cluster‐type concentration in Phnom Penh and export markets, nor of any positive impacts of product specialization. The findings imply a need to support skill development for workers and local managers at the middle management level, and to streamline foreign direct investment measures to attract greater numbers of efficient foreign enterprises, so as to promote the development of the garment industry as a whole.     

Is the Government Failure Theory Still Relevant? A panel analysis using US state level data

Abstract The purpose of this paper is to empirically examine the robustness of the government failure theory. A core feature of the government failure theory is demand heterogeneity. Previous studies have brought into question the robustness of the government failure theory, due to inconsistent results concerning the explanatory power of demand heterogeneity. Therefore, in this paper we revisit this important research agenda using US state level panel data. We find the two‐way fixed effects model a suitable model for testing the government failure theory's robustness and present findings which indicate that observable demand heterogeneity has a positive effect on the size of the nonprofit sector. This paper also empirically examines the relevance of the complementary financing hypothesis in terms of the cooperative nature of the governmental and nonprofit sector relationship; that is where governments delegate the production of quasi‐public goods to the nonprofit sector.     

Development and Validation of an Employee Voice Strategy Scale through Four Studies in Japan

Employee voice is an important organizational behavior that affects work group performance, and many studies have explored its mechanism; nonetheless, the existing literature narrowly defines the construct and overlooks a variety of strategic approaches employees take as they engage in voice. Based on this problematization, the current research has developed and validated a scale of employee voice strategy through four studies in Japan (total N = 1,156). Employee voice strategy is defined as a set of direct and indirect communicative approaches that organizational members utilize to share ideas with intentions to exert constructive influence to their work group. Studies 1 and 2 analyzed interview narratives to develop an initial typology, which was refined in Study 3 into a six‐factor scale. Study 4 replicated it through confirmatory factor analyses. Construct validity of the scale was also examined by testing the strategy factors’ nomological network—as expected, proactive personality was positively associated with assertive strategies, while relationship maintenance goal orientation was linked to conciliatory, nonconfrontational strategies; negative emotion display showed negative associations with voice strategy use in general. These findings were discussed vis‐à‐vis culturally inclusive human resource management practices, as well as theoretical exploration of the employee voice phenomena from process‐centered perspectives. © 2014 Wiley Periodicals, Inc.     

现在阅读竹内好的意义

本文的主要论述关切在如下三个问题:一、在日本发动“大东亚战争”的思想根源中,存在着一个对现代这一体系进行批判的侧面。竹内好正是从这个侧面来看战争的。二、通过与难以得到现代化恩惠的社会底层的感情的结合,对现代这一体系的批判被吸收到日本民族主义中去了。三、在八十年代以后,这一民族主义构造正在发生着变化。而要认清日本的民族主义构造和演变,思考日本民族主义的改造,以上三个相互关联的观察视点是不可或缺的。     

A GUIDE TO VALUING EMPLOYEE STOCK OPTIONS WITH A RELOAD FEATURE

At first glance, executive stock options with reload provisions appear to be more complicated than conventional options, and thus the valuation of such options would appear to be more difficult. But, as the authors demonstrate in this article, such reload options provide the employee with a dominant exercise strategy—namely, to exercise the option whenever it is "in-the-money." And the fact that reload options will always be exercised simplifies their valuation by eliminating a major problem—that associated with employee's risk references and uncertain early exercise—in valuing conventional options.