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  • 1
    Electronic Resource
    Electronic Resource
    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Annals of public and cooperative economics 75 (2004), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract Compared to other industrialized economies Ireland has been slow to privatize state-owed enterprises. The first divestitures in 1991 failed to trigger a systematic programme of sell-offs due to fears of job losses in an economy characterized by low rates of growth and high levels of unemployment. Where subsequent sales occurred they took place on a pragmatic and case-by-case basis with the reasons for privatization varying across companies. Some of the earlier sales took place because the enterprises were financially unviable whereas more recent sales can be attributed to the influence of EU policy on competition and restrictions on state aids. Since the privatization of the state telecommunications company in 1999 there has been a significant increase in privatization activity and most of the remaining public enterprises are candidates for divestiture. By 2001 total revenues amounted to €8.1 bn (9 per cent of GNP for 2001). A consistent justification for privatization has been that a change in ownership will lead to improved performance. The analysis in this paper fails to support this argument. At this early stage of the programe the experience has been for cost-cutting measures to lead to improved performance prior to privatization with little evidence of continued improvements after divestiture.
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  • 2
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    Electronic Resource
    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Annals of public and cooperative economics 75 (2004), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract/〉:  A key aspect of the 1990 reforms to the British electricity supply industry was the introduction of a formal system of regulation by an autonomous regulatory body. It was expected that replacement of monopolies in some areas by markets and price-setting in monopoly areas using a simple incentive formula would mean that regulation of the industry would be ‘light’. This article examines how regulation has turned out in practice. It concludes that the promise of ‘light’ regulation has not been fulfilled. Regulation of competitive markets is a major regulatory activity, incentive regulation has evolved into a complex and intrusive form of rate-of-return, while regulation of industry structure has allowed the industry to descend into a concentrated, vertically integrated structure, at odds with the aims of the reforms.
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  • 3
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    Electronic Resource
    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Annals of public and cooperative economics 75 (2004), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract/〉:  In this paper, we focus on the role of interpersonal contact and the possibility of a relational motive to explain participation and volunteering in associations. Drawing on the relational goods theory, we show that associational activities are favorable to production and consumption of such goods. So, associational participants are expected to have more personal interactions. This theoretical hypothesis is tested using a cross-sectional data set conducted in France in 1999. Our econometric analysis, which controls for endogeneity of associational participation using a simultaneous equations model, emphasizes a significantly positive relationship between this participation and preferences for relational goods.
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  • 4
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    Electronic Resource
    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Annals of public and cooperative economics 75 (2004), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract/〉:  The purposes of the paper are to determine whether governments underprice shares in fixed-price share-issue privatizations (SIPs) and, if so, what their motivations are for doing so. This paper develops three models of SIP underpricing: one based on revenue goals, one based on political goals and an inclusive model which supposes that the level of underpricing depends on both government revenue goals and political goals. These models are estimated using an international sample of 104 SIPs from 25 countries. We find that, on average, SIPs are underpriced by approximately the same amount as private sector initial public offerings (IPOs). This is not consistent with the sole goal of revenue maximization because SIPs should not require the same degree of underpricing as IPOs. The inclusive regression fits the data well and indicates that both revenue and political goals affect the level of SIP underpricing.
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  • 5
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    Oxford, UK; Malden, USA : Blackwell Science Ltd/Inc.
    Annals of public and cooperative economics 75 (2004), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract Restructuring of the Russian railways system is well under way. Among the policies just now coming into practice are two that are standard in railways restructuring in other countries: the provision of access to the infrastructure by independent train operating companies, and assurances of non-discriminatory access terms for such companies. However, ‘discrimination’– in the traditional economic sense – is a standard and often welfare-enhancing pricing strategy for the recovery of fixed costs in a sector, like railways, with declining average costs. If competition regulators are unable to distinguish between discrimination that harms competition and discrimination designed only to recover fixed costs, policy makers in Russia and elsewhere will face a choice between large government subsidies and large welfare losses. In these circumstances, other restructuring models should be considered.
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  • 6
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Annals of public and cooperative economics 75 (2004), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract The traditional business focus of credit co-operatives is locally oriented and business success is explained by the efficient way to induce monitoring of borrowers. Church-based credit co-operatives in Germany are not that locally oriented but were extraordinary successful over the last decades. First, this analysis describes the special characteristics of church-based institutions compared to other credit co-operatives. This part is based on a historical backward glance, an analysis of annual reports and a survey on their business policy. Second, we discuss the special characteristics of church-based credit co-operatives to explain the business success in a broader context and to understand the perspectives of credit co-operative banking beyond the local orientation.
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  • 7
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
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  • 8
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
    Notes: This paper is an attempt to identify what constitutes a good board of directors, and this is based on a comparison between academic literature, corporate governance rating systems and our field research into board practices. We observed that “traditional” academic research focused on a limited number of quantifiable board characteristics, while practitioners attach greater importance to “soft” elements, which are nearly absent in the literature and in the governance ratings. These findings highlight the need for a better understanding of all elements that determine board effectiveness. Furthermore, our results identify three areas of improvement for boards of directors.
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  • 9
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
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  • 10
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
    Notes: Books reviewed:Don Young and Pat Scott, HAVING THEIR CAKE . . . How the City and Big Bosses are Consuming UK Business, London: Kogan Page, 2004, ISBN 0-7494-3861-4Luis Corriea Da Silva, Marc Goergen and Luc Renneboog, Dividend Policy and Corporate Governance, Oxford: Oxford University Press, 2004, ISBN 0-19-925930-5Colin Coulson-Thomas, The Knowledge Entrepreneur, London: Kogan Page, 2003, ISBN 0-7494-3946-7Surendra Munshi and Biju Paul Abraham, eds, Good Governance, Democratic Societies and Globalisation, New Delhi: Sage Publications, 2004, ISBN 0-7619-9848-9
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  • 11
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
    Notes: This study suggests that firms in highly competitive industries should have fewer outside board members, whereas companies operating in less competitive industries should have more outside directors. Specifically, we argue that board independence is less relevant or even redundant in highly competitive industries, where the firm is already “monitored” by a competitive product market. Using publicly traded Swedish firms for empirical testing, this study finds that board independence reduces firm performance in industries with highly competitive product markets. On the other hand, board independence enhances firm performance among companies facing less competitive product markets.
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  • 12
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
    Notes: Developing an effective corporate governance system is key to Russia's future. Russia is now at a crossroads as it decides to either continue pursuing the Anglo-American form of governance with its emphasis on external market controls, or turn to a more Western European model with its emphasis on internal controls, or some combination of the two. To make these challenges more tangible and bring them into sharper focus, we discuss some of the governance challenges facing four bellwether Russian firms – Gazprom, Sberbank, Wimm-Bill-Dann and Mobile TeleSystems. We conclude with a discussion of the key institutional forces that will heavily influence the path taken by Russia in the future, along with predictions for the future.
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  • 13
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
    Notes: Books reviewed:Paul W. MacAvoy and Ira M. Millstein, The Recurrent Crisis in Corporate Governance, Basingstoke and New York: Palgrave 2003 Macmillan, ISBN 1-4039-1666-7Christine A. Mallin, Corporate Governance, Oxford: Oxford University Press, 2004, ISBN 0-19-926131-8Ian Fraser and William Henry, The Future of Corporate Governance: insights from the UK, Institute of Chartered Accountants of Scotland, 2003
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  • 14
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
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  • 15
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
    Notes: This paper analyses the market reaction to announcements made by Spanish firms of compliance with the code of best practice. It also attempts to determine how the characteristics of different firms may account for the excess returns observed. The results suggest that the market reacts positively to announcements of compliance with the code of best practice that imply a major restructuring of the board of directors, whereas no wealth effects are observed for announcements that relate to isolated recommendations in the code. These wealth effects are greater for lower levered firms, and also greater the higher the percentage of executive directors.
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  • 16
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
    Notes: This paper examines the development of the regulation of corporate governance in the UK. It seeks to identify why the boundaries of law and self-regulation exist and whether the regulation of corporate governance should now be viewed as a process of collibration rather than a “homeostatic” process of setting unattainable standards. This paper suggests that regulatory developments in the area of corporate governance have taken a substantial new direction; that the boundaries of regulation are no longer determined by the choice between market-based or state-based regulation, but determined by a process of collibration.
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  • 17
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
    Notes: This paper explores current debates and trends in regulation and examines their relevance to the evolution of UK corporate governance codes of practice. In particular, the paper explores frameworks drawn from the regulation of financial services, accounting and audit, and discusses whether there are lessons to be learnt from them for the regulation of UK corporate governance. Because of trends in regulation, and in the light of empirical evidence and recent events, especially post-Enron, an appropriate structure for the regulation of UK corporate governance might be based on that of financial services.
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  • 18
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
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  • 19
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    Oxford, UK : Blackwell Publishing Ltd.
    Corporate governance 12 (2004), S. 0 
    ISSN: 1467-8683
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Political Science , Economics
    Notes: Corporate governance crisis and reform is essentially cyclical. Waves of corporate governance reform and increased regulation occur during periods of recession, corporate collapse and re-examination of the viability of regulatory systems. During long periods of expansion, active interest in the conformance aspects of governance diminishes, as companies and shareholders become again more concerned with the generation of wealth, rather than in ensuring governance mechanisms are working appropriately for the retention of wealth, and its use for agreed purposes. This cyclical historical saga revolves around the enduring agency and stewardship dilemmas of governance. Complacency concerning corporate governance during confident times compounds ensuing crises. Such dilemmas are universal in market systems, though internationally with different systems of corporate governance the unwinding of this saga has occurred at different times, for different reasons, and with different consequences. Corporate governance is about wealth generation and risk management, and these duties require continuous and simultaneous performance. Avoiding mandatory restrictive over-regulation requires active market regulation, particularly at times of expansion. The drive to make corporate governance both improve corporate performance and enhance corporate accountability will continue.
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  • 20
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    Oxford, UK : Blackwell Publishing Ltd.
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper seeks to promote further integration of empirical and theoretical discussions of trade and worker adjustment. From the author's recent studies of the costs of job loss, she develops a set of stylized facts of trade-related job loss, with a focus on worker characteristics and labor market consequences. These stylized facts are relevant to any (credible) model of trade liberalization and adjustment costs. The author discusses the basic ideas of wage insurance and summarizes the few data known about how a program might work if implemented in the United States. A final section provides a list of issues for a model of trade that will be consistent with the empirical stylized facts, and sets out questions for future research.
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  • 21
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper uses a specific-factors framework to address efficiency and distributional implications of international fragmentation which is driven by a low foreign wage rate. Focusing on the cost-savings linkage between fragmentation and labor demand in the remaining domestic activities, the author establishes a fragmentation surplus. If capital is an indivisible asset specific to the fragment produced abroad, then fragmentation may cause a domestic welfare loss, because outsourcing takes place in discrete steps where it affords firms “quasi-market-power” on the domestic labor market. The regime shift from domestic production to fragmentation is modeled as a two-stage game. In stage one, firms locate indivisible assets at home or abroad; in stage two they choose optimal employment. The share of fragmented firms is endogenously determined. The paper explores conditions under which outsourcing is beneficial for the domestic economy.
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  • 22
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    Oxford, UK : Blackwell Publishing Ltd.
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper proposes a distinction between the two dimensions of convergence—within and between countries—when analyzing the impact of cross-border outsourcing on real wage rates in the EU-15 and the CEEC. In the CEEC, international outsourcing has not affected the adjustment of average real wage rates at the manufacturing industry level, but it has led to a closure of the gap within a typical EU economy. Between-country convergence is likewise fostered by cross-border outsourcing, supporting the hypothesis that outsourcing facilitates international factor price equalization.
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  • 23
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper uses the framework of Obstfeld and Rogoff's Redux model to study the impact of monetary shocks on exchange rate, terms of trade, and welfare in the context of a North–South trade. The authors show that a relative Northern monetary expansion can depreciate or appreciate its currency depending on whether the consumption elasticity of money demand and the degree of monopolistic distortion are low or high enough. This shock has asymmetric effects on welfare in such a way that “beggar-thyself” or “beggar-thy-neighbor” effects always occur.
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  • 24
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    Oxford, UK : Blackwell Publishing Ltd.
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper examines how a movement from segmented markets to integrated markets affects the volume of trade, consumer prices, profits and welfare in a monopoly model. The monopolist can initially discriminate consumer prices among markets with trade costs but has to take arbitrage into account as economic integration proceeds. The analysis provides interesting insights into economic integration and antidumping law. It is shown that the extent of arbitrage and the shape of the marginal cost curve play crucial roles. Surprisingly, it is possible that neither consumers nor the monopolist gains from economic integration, and that antidumping legislation benefits consumers at the expense of producers.
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  • 25
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    Oxford, UK and Malden, USA : Blackwell Publishing Ltd
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper investigates the consequences of code-sharing agreements among airline firms competing on international routes, where some passengers interconnect to flights originating or terminating at cities not served by foreign airlines. The authors calculate the precise market share captured by flights operated under code sharing. They compare airfares, market shares, profits, and passengers’ welfare before and after the implementation of a code-sharing agreement and demonstrate that code sharing is Pareto-improving.
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  • 26
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    Oxford, UK and Malden, USA : Blackwell Publishing Ltd
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper examines the impact of regionalism on the process of multilateral trade liberalization when countries are asymmetric. The author uses a three-country, three-good, competing exporters model, with countries being symmetric in everything but their discount factors. The equilibrium regional agreement is found to be a customs union between a patient and an impatient country and that the impact of regionalism depends on the discount factors. The impact of regionalism on multilateral trade liberalization depends critically on which countries engage in regionalism.
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  • 27
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper analyzes parallel imports, or goods traded without the authorization of a trademark owner. Parallel imports have multiple causes, including vertical price control, which the authors model. A manufacturer selling its product through an independent agent sets the wholesale price sufficiently low to induce a desired retail price abroad. This permits the agent to sell the product profitably in the originating market. Combined social surplus decreases and then increases in the cost of parallel trade. Restricting parallel imports benefits the manufacturer, but could raise or reduce global surplus. The econometric analysis indicates that the vertical-control explanation of parallel imports is important.
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  • 28
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The primary purpose of the paper is to provide characterizations of the conditions for welfare improvements in several situations that have received very little attention in the existing literature. The first aim is to exhibit the gains that can accrue to a country from the elimination of excess supplies as a result of a policy move from autarky to free trade. The second aim is to characterize the conditions under which the introduction of new goods into the economy will generate welfare gains. The third main area discussed is the extension of the authors’ methodology to a large open economy that can influence its terms of trade. The techniques used to illustrate the gains from eliminating excess supplies and from the introduction of new goods have a much wider applicability; they may be used to obtain and synthesize several welfare results from the literature.
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  • 29
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper asks whether exports are affected by importers’ patent rights regimes using a gravity trade equation. US export data to 71 countries from 1970 to 1992 are used. A two-way random-effects panel indicates that patent rights regimes per se do not matter; they matter with importing countries’ imitative abilities. For a country with an “average” imitative ability, US R&D-intensive exports increase by 4–9% for a unit increase in the patent rights index; a unit increase in the patent rights index leads to a drop in US non-R&D-intensive exports by about 8–11%.
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper presents an overlapping-generations model where agents vote on whether to open or close the economy to international capital flows. Political decisions are shaped by the risk over capital and labor returns. In an open economy, the capitalists (old) completely hedge their savings income. In contrast, in a closed economy, the workers (young) partially insulate wages from the productivity shocks. There are three possible equilibrium outcomes: economies that eventually remain open; those that eventually remain closed; and those that cycle between open and closed. In line with the stylized facts, cycles are more common in economies with intermediate development levels.
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: In a homogeneous-good duopoly game with a home and a foreign firm, which compete on prices, it has been shown that the optimal way to assist the domestic industry is by a production subsidy. The argument here is that the subsidy is used to keep potential competitive pressure on the foreign firm. This paper analyzes under which conditions this threat of entry of a subsidized home firm is credible. It is shown that in markets where the firms move before the government, a subsidy is not credible and dominated by a tariff in terms of welfare.
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The authors incorporate equilibrium unemployment due to imperfect matching into a model of trade in intermediate inputs. Firms are assumed to be price-takers and their size is given by technology. Firms enter the market as long as expected profits cover the search cost they incur initially; jobs are endogenously destroyed by random shocks that affect firms’ price–cost margins. Trade increases productivity in the final good and then demand for each intermediate input. Steady-state unemployment is reduced after trade integration because the rate of job destruction is reduced, which in turn induces an indirect positive effect on job creation. A more volatile environment faced by firms does not necessarily increase unemployment. However, the rate of job destruction unambiguously rises, and rises more under free trade.
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    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper develops a simple political-economy model of unemployment benefit determination in a small open economy characterized by bargaining between firms and unions. The authors derive a number of comparative static results and present empirical results for a panel of OECD countries that are broadly consistent with the theory.
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: US exports grew at 10.3% per year from 1987 to 1992, far faster than the economy as a whole. This paper examines sources of the manufacturing export boom, including entry, firm expansion, and export intensity. Most of the increase in exports came from increasing export intensity at existing exporters rather than from new entry into exporting. The small role of entry relative to export intensity offers support for the importance of sunk costs in the export market. Changes in exchange rates and rises in foreign income drove most of the export increase, while plant productivity increases played a smaller role.
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    Topics: Economics
    Notes: The paper investigates the possibility of convergence in the European Union (EU) in terms of the patterns of corporate financing by banks, bond markets, and stock markets; and in the context of whether the economies are converging towards an Anglo-Saxon (capital-market-oriented) or a continental (bank-oriented) financial system. GMM estimation of a dynamic fixed-effects model is implemented to test for conditional and unconditional convergence using a panel of flow of funds data for the period 1972–1996 for seven EU member countries. It is found that the pattern of corporate financing is consistent with the pecking order theory of financing choices. Overall, the evidence suggests convergence of the EU financial systems on a variant of the Anglo-Saxon model, depicting heavy reliance on internal financing as well as direct financing via equity and bond markets, while bank debt is becoming relatively less important.
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
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    Topics: Economics
    Notes: The paper explores the efficiency consequences of using temporary protection to ease adjustment following an unexpected, permanent improvement in a country's terms of trade. In the model, workers trade off the potentially higher wage that the export sector has to offer with a lower job acquisition rate. An unexpected improvement in the terms of trade surprises old workers who cannot undo the decisions they made while young. Some old workers who had not planned to search for work in the export sector end up changing their plans, adding to the pool of searchers, creating congestion. Temporary protection can reduce congestion and make the transition to the new steady state smoother. Moreover, there are conditions under which the congestion externalities lead to multiple steady-state equilibria that can be Pareto-ranked. Temporary protection may lead to a permanent change in the allocation of resources, and this permanent change may be welfare-enhancing.
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
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    Topics: Economics
    Notes: Exporting involves sunk costs, so some firms export whilst others do not. This proposition derives from a number of models of firm behavior and has been exposed to microeconometric analysis. Evidence from the latter suggests that exporting firms are generally more productive than nonexporters. They self-select, in that they are more productive before they enter export markets, but the evidence suggests that entry does not make them any more productive. This paper investigates exporting and firm performance for a large panel of UK manufacturing firms, applying matching techniques. The authors find that exporters are more productive and they do self-select. In contrast to other evidence, however, exporting further increases firm productivity.
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    Metroeconomica 55 (2004), S. 0 
    ISSN: 1467-999X
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    Topics: Economics
    Notes: Shafer's evidence theory is a branch of the mathematics of uncertain reasoning that allows for novel possibilities to be conceived by a decision-maker. Many of its findings exhibit striking similarities with an alternative decision theory put forward by Shackle in the 1950s, before expected utility maximization monopolized the scene. Evidence theory does not attempt to formalize the emergence of novelties, but it is a suitable framework for reconstructing the formation of beliefs when novelties appear. An application to decision-making in the biotech and pharmaceutical industries illustrates the potentialities of evidence theory, as well as its shortcomings.
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    Topics: Economics
    Notes: Beyond a widespread agreement on the idea that ‘loans create deposits’ and ‘deposits make reserves’, there is much controversy in the endogenous money literature over the workings of the reserve market, the credit market and the financial markets. In this paper a constructive interpretation of the debate between horizontalists and structuralists is suggested and their arguments are taken forward by showing that these controversial issues can be explained rigorously once a single-period–continuation framework is adopted.
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    Metroeconomica 55 (2004), S. 0 
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    Topics: Economics
    Notes: This paper develops a post-Keynesian dynamic model of accumulation, growth and distribution in which endogenous technological innovation plays a significant role. Firms’ rate of labour-saving technological innovation is made to depend non-linearly on the distributive (wage and profit) shares, with the latter determining both the incentives to innovate and the availability of funding to carry it out. As it turns out, the direction and the intensity of the effect of a change in distribution on the rates of accumulation and growth depend on the prevailing distribution, with a similar dependence applying—alongside the relative bargaining power of capitalists and workers—to the dynamic stability properties of the system. Hence, the model does not rely on full capacity utilization being reached for a change in the accumulation and growth regime to take place.
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    Metroeconomica 55 (2004), S. 0 
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    Topics: Economics
    Notes: The consequences of an increase in the minimum wage for foreign workers in the construction sector, implied by the EU Posted Workers Directive, are analyzed. Due to the rising price of construction services, the factor demand for both construction services and capital in the tradeable good sector falls, and the wage rate in this sector declines. While the share of domestic workers increases with respect to both foreign workers and capital in the construction sector, this need not suffice to reduce unemployment. A possible higher level of employment of natives is not sufficient to raise natives’ welfare.
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    Metroeconomica 55 (2004), S. 0 
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    Topics: Economics
    Notes: The long-run relationship between real wages and labor productivity is investigated using cointegration and Granger non-causality tests for the US economy over the period 1869–1999. The series are cointegrated, indicating that there is a link between real wages and labor productivity in the long run. Granger non-causality tests support unidirectional causation from real wages to labor productivity. This outcome corroborates the conception that increases in real wages drive profit-seeking capitalists to raise labor productivity as their main weapon in defending their profitability. This result is consistent with a long tradition among economists that perceives technical change as being biased toward labor-saving.
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    Topics: Economics
    Notes: The nature and determinants of the supply of labour are re-examined. Standard theories of labour supply, it is argued, have neglected to consider the affects of the quality of work activities on the motivation and welfare of workers. Work has tended to be seen as a means to an end rather than an end in itself and most attention has been given to the manipulation of wage incentives in affecting labour supply, to the neglect of changes in the work environment. The original contributions of W. Stanley Jevons and Alfred Marshall, in contrast, are shown to offer a fuller account of the work decision.
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    Topics: Economics
    Notes: An overview of the varieties of mathematics that underpin the functioning of a computer is attempted in this paper. Against the backdrop of such an overview, the question is posed whether, and to what extent, the economist has respected these varieties of mathematics in posing economic questions and seeking answers via it, i.e. the computer. The answers are not particularly edifying for the economist.
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    Notes: In this paper, transmissibility and replicability of blueprints confine production functions to computable processes. The immediate consequence is that research and development and the emergence of technological innovations are naturally embedded in computable production functions. There is no need to introduce ad hoc probability distributions to model the arrival of innovations as the uncertain result of research and development activity. Rather, in this approach, well-known results like the halting problem or Rice theorem harness production theory so as to encompass product and process innovation.
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    Topics: Economics
    Notes: A standard approach in economic theory is to use a formal language to prove results about an economy or a game. In this paper, model theory is used to examine interpretations of such results. The particular focus is on constructive theorems, since results established by constructive methods are valid for many different interpretations, whereas classical theorems are valid more narrowly. I discuss why non-classical models may be of interest and also describe applications of model theory to economics in classical contexts, e.g. non-standard analysis. The paper advocates a viewpoint suggesting that constructive models are tools for studying worlds in which agents’ knowledge of the world is incomplete.
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    Notes: In addition to the common analysis of the Kauffman NK model where the value of K and the structure of interaction are given, the aim of this paper is to study what the values of these two parameters would be if they were endogenized. Thus, a model is proposed where firms and business schools coordinate to search for high peaks in their respective landscapes using evolutionary algorithms. The main result coming from the analysis of the model is that agents, using evolutionary algorithms, attempt to simplify the problems of coordination and this, over time, produces the existence in the economy of agents using many different strategies.
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    Mathematical finance 14 (2004), S. 0 
    ISSN: 1467-9965
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    Topics: Mathematics , Economics
    Notes: We consider the stochastic process of the liquid assets of an insurance company assuming that the management can control this process in two ways: first, the risk exposure can be reduced by affecting reinsurance, but this decreases the premium income; and second, a dividend has to be paid out to the shareholders. The aim is to maximize the expected discounted dividend payout until the time of bankruptcy. The classical approach is to model the liquid assets or risk reserve process of the company as a piecewise deterministic Markov process. However, within this setting the control problem is very hard. Recently several papers have modeled this problem as a controlled diffusion, presuming that the policy obtained is in some sense good for the piecewise deterministic problem as well. We will clarify this statement in our paper. More precisely, we will first show that the value function of the controlled diffusion provides an asymptotic upper bound for the value functions of the piecewise deterministic problems under diffusion scaling. Finally it will be shown that the upper bound is achieved in the limit under the optimal feedback control of the diffusion problem. This property is called asymptotic optimality.
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    Corporate governance 12 (2004), S. 0 
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    Topics: Political Science , Economics
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    Corporate governance 12 (2004), S. 0 
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    Topics: Political Science , Economics
    Notes: Using evidence from a survey of women directors in FTSE 100 companies, this paper considers possible explanations for the persistent homogeneity of top UK boards. Only 61 per cent of the top 100 companies had female directors in 2002, down from 64 per cent in 1999. Women held only 3 per cent of executive (= US inside) directorships, and there were only 15 women executive directors in total. Explanations usually include women's lack of ambition, lack of experience and lack of commitment. These have been disproved by research, but underlying theories of social exclusion may provide insight into this persistent phenomenon.
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    Corporate governance 12 (2004), S. 0 
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    Notes: The role of the board of directors in firm strategy has long been the subject of debate. However, research efforts have suffered from several deficiencies: the lack of an overarching theoretical perspective, reliance on proxies for the strategy role rather than a direct measure of it and the lack of quantitative data linking this role to firm financial performance. We propose a new theoretical perspective to explain the board's role in strategy, integrating organisational control and agency theories. We categorise a board's approach to strategy according to two constructs: strategic control and financial control. The extent to which either construct is favoured depends on contextual factors such as board power, environmental uncertainty and information asymmetry.
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    Topics: Political Science , Economics
    Notes: This paper sets out the results of interview-based research to determine why companies use performance-related pay. The findings indicate that many companies adopt this structure despite a belief that the money does not motivate executives. Reasons related in part to best practice in human resource management: pay structures were designed to attract and retain executives with the potential of large earnings; to focus their efforts in the direction agreed by the board; and to demonstrate fairness. Importantly, the variable pay was seen as a symbol of the director's success, both internally and to his or her peers in other companies. Finally, and significantly, an institutional theory explanation was given: companies used performance-related pay because their peers did, and because that legitimised them in the eyes of the establishment.
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    Corporate governance 12 (2004), S. 0 
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    Topics: Political Science , Economics
    Notes: The current debate and theorising on corporate governance has been polarised between a shareholder perspective and a stakeholder perspective. While advocates and supporters of each camp attempt to justify the superiority, rationality and universality of each model in theory, they rarely pay attention to the age-old conceptions, assumptions and presuppositions underpinning their perspectives which are less credible and valid in matching the continually changing practice of corporate governance. This paper serves as a survey and critical review of major current theories on corporate governance. In so doing, it reveals the inadequacy of conventional approaches employed in corporate governance theorising. It calls for a new mode of thinking in analysing corporate governance and concludes by outlining a new direction of research in this field.
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    Topics: Political Science , Economics
    Notes: The paper adds to our knowledge of what non-executive directors do, knowledge which is still in its infancy. More specifically, it reports the findings of a survey among more than 250 Dutch non-executive directors regarding their roles and limitations. Although the majority agreed that monitoring is their main duty, they also expressed doubts whether they are really able to carry out this “watchdog role” effectively. The primary limitation is sought in the asymmetry of information which gives rise to the so-called “independence paradox”: in obtaining adequate information non-executives are dependent on the executives they are expected to supervise and to be independent from.
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    Notes: This paper examines the issue of independence of boards of directors and non-executive directors of companies listed on the Irish Stock Exchange. Based on information published in annual reports, the study found that most Irish listed companies were complying with the Combined Code's recommendations for a balanced board structure, albeit with only 60 per cent having majority-independent boards. The study found a lack of consistency in interpreting the definition of “independence”, a lack of disclosure of information and, by applying criteria generally regarded as prerequisite to independence of non-executive directors, certain situations which imposed upon their independence.
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    Corporate governance 12 (2004), S. 0 
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    Notes: Books reviewed in this article:Andrew Chambers, Tolley's Corporate Governance Handbook, 2nd editionJohn Kidd and Frank-Jurgen Richter (eds.), Trust and Antitrust in Asian Business AlliancesRobert A. G. Monks and Nell Minow, Corporate Governance, 3rd editionJohn Smithson, The Role of the Non-Executive Director in the Small to Medium-Sized Business
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    Notes: This paper argues that the Enron affair has been misunderstood as a failure of monitoring, with adverse consequences for the drafting of the Sarbanes-Oxley Act and the Higgs report. Where Enron's board failed was in misunderstanding the risks which were inherent in the company's business plan and failing to implement an effective system of internal control. Enron demonstrates the limits of the monitoring board and points the way to a stewardship model in which the board takes responsibility for ensuring the sustainability of the company's assets over time.
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    Notes: This paper reflects on the duties of the board of directors, in the light of transatlantic differences in practice, the instructive case history of Marconi, the interventions of Sarbanes-Oxley, and the proposals of the Higgs Review of non-executive directors. It is argued that ensuring a balance between good corporate governance and effective strategy is essential for sustained business results.
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    Notes: Emerging markets present strong corporate governance challenges for the branded multinational which, in view of the greater public trust and scrutiny it receives, has a responsibility to provide its international managers with the necessary tools to maintain its governance standards, even in regions where such standards might be lacking.
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    Notes: We discuss the nature and role of (corporate) governance and (shareholder) value and their implications for (sustainable) economic performance. We critique and build on extant theory to develop a model of the determinants of value-wealth creation at the firm, national and global levels and explore current economic debates on governance and sustainable economic performance in its context. We conclude that (the need for) stakeholder value is derivative from (not opposed to) the concept of sustainable value, that national governance and the nationwide “governance-mix” impact on corporate governance and that national and global economic governance are essential for sustainable global value-wealth creation, and economic performance.
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    Notes: The paper presents an attempt to quantify the compliance of Greek companies with international best practices. Based on 37 indicators (composed out of 54 questions) it was found that Greek companies demonstrate a fairly satisfactory degree of compliance with OECD guidelines. Their weak points lie in: the role of stakeholders and corporate social responsibility; the organisation of CG; the effective role of the independent members of the board (which may be attributed to the small size of the pool of potential independent board members); disclosure of remuneration; and risk management. Methodologically, the merit of the exercise lies in its approach towards the creation of “collectively subjective” weightings, an effort to discuss the benefits of separating the rating of the market from the rating of companies and the discussion on typologies of work that can be effectively performed through rating exercises.
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    Notes: This empirical paper investigates the relationship between the corporate governance structure of the firm and the probability of voluntary accounting changes in the Netherlands during the period 1990–1998. The paper reports the results of a sample of 194 voluntary accounting changes. The empirical results show that the presence of large outside shareholders significantly decreases the probability of voluntary accounting changes that have a positive effect on reported net income. This result supports the monitoring hypothesis, which indicates that large outside shareholders will monitor voluntary accounting changes more effectively than small shareholders, and will restrict the opportunistic behaviour of managers bent on increasing reported net income. We find that management shareholdings decrease the probability of voluntary accounting changes. These findings are consistent with the alignment hypothesis, which suggests that managers who hold a stake in the firm will be more aligned with outside shareholders. Agency problems may be reduced through management shareholdings. We find no support for the monitoring role of outside members of the supervisory board. Finally, our results show that firm size affects the probability of negative accounting changes, which may support the political cost hypothesis.
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    Creativity and innovation management 13 (2004), S. 0 
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    Topics: Economics
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    Notes: This paper points out the differences between incremental and paradigm shift approaches to creativity in management that exists between Japanese and Western schools of thought. A number of examples are used to illustrate how a systematic incremental process that places emphasis on continuous improvement is key to Japanese creativity in management. A framework that captures the cornerstones of Japanese creativity is outlined. The paper concludes by discussing the contribution of this research and outlines a plan for further work.
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    Topics: Economics
    Notes: When employees believe that they, and not their employers, have legal ownership of ideas, they may choose to keep their ideas from employers, thereby hindering their employers’ ability to produce new products and services. This research used a combination of quantitative and qualitative research methods in order to investigate what factors influence employees’ beliefs about who legally owns ideas. The major findings were as follows. Employees’ beliefs about who owns ideas are influenced directly by employees’ beliefs about the strength of their own legal claim to ideas and the strength of the competing legal claim of their employers. Those two variables are in turn influenced by factors that are specific to each idea, including the degree of employer involvement in the origins of ideas and the nature of the ideas; and by general factors including employees’ beliefs about their job responsibilities and their familiarity with pertinent organizational procedures. Employers should try to strengthen their legal claims to ideas by ensuring they are involved when ideas are originally generated, by socializing employees to believe that their job responsibilities include assigning ownership of ideas to employers, and by ensuring that employees are familiar with relevant organizational procedures.
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    Notes: This paper explores how entrepreneurs from different national cultures deal with cultural diversity of their entrepreneurial teams. The explorative research looks at six case studies in different stages of the venture process. The paper delivers insights from early to later phases of start-ups. From the case-study research and theoretic considerations the paper develops different propositions. Core findings are: first, in cross-cultural teams monochronic/low-context/high-space entrepreneurs strongly structure tasks. Second, polychronic/high-context/low-space founders tend to supply external contacts to the diverse team. Third, polychronic/high-context/low-space founders have a propensity to stimulate communication procedures. Fourth, enhanced communication in cross-cultural teams seems to be related to creativity. At last, monochronic/low-context/high-space founders tend to deny positive effects from cultural diversity.
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    Topics: Economics
    Notes: The Theory of Inventive Problem Solving (Russian acronym: TRIZ) provides several new ways for finding creative problem solutions. In addition to TRIZ as it is used for generating inventions, some of its instruments can be applied for strategic management support. In combination with patent databases, TRIZ can be used for profiling technological competencies of inventors and companies to support strategic decisions. This article demonstrates profiling of technological competencies, using a complex case study of a leading German company. In this case study a five-step process, developed by the main author, has been applied. After having analysed patents and patent applications of three major companies in the field of floor-cleaning aids, three characteristic profiles have been identified. This led to important activities in the area of R&D of the company doing the analysis, as well as to decisions of strategic relevance.
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    Topics: Economics
    Notes: Most creative acts occur in a collaborative context. Recent research contributions see the relevance of collaborative creativity but they lack a theoretical basis. What exactly is understood by collaborative creativity and above all, how it is examined, appears not to be the focus of well-founded analyses. The key objective of this paper is to present a new model characterizing collaborative product creation. This model describes theoretical essence needed for any creative collaboration. As a result, the phenomenon of communication is crystallized as the driving force for collaborative creativity. The article is divided into three sections. First, the paper focuses on creative collaboration in previous creativity research. It is shown that a different understanding of collaborative creativity exists. Second, four dimensions of the new model are presented: type of communication, course of performance, working style and the relation between the nature of problems and the implication of solutions. Lastly, the relevance of the observations for future research and creativity management is discussed briefly.
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    Topics: Economics
    Notes: This paper describes part of the results of a research project that focuses on the interface between new product development (NPD) and production. The following question is addressed: ‘What is the influence of the inherent differences in learning styles within NPD and within Production on the interactions between the respective participants?’ The dominant learning style in NPD-processes is conceptual. Within production processes an operational learning style is dominant. Clashes occur when the learning style in-use is opposite to the learning style required. For efficient interactions participants must be able to switch from one style to another depending on the issue at hand. Making the different learning styles explicit and learn people to change form one style to another might help. However, interactions between NPD and production frequently have the character of an intervention from one process to another. For interventions to be successful, the interventionist needs to have enough empathic insight in the character of the other process and in the learning behaviour of its participants. Providing internships on both sides together with adequate in-house training programmes might support the development of empathic abilities like mutual understanding and respect.
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    Topics: Economics
    Notes: Books reviewed: Nancy J. Adler (2002), International Dimensions Of Organizational Behavior, 4th edn. South Western, Thompson Learning, Cincinnati, Ohio. ISBN 0 324 05786 5, 391 pp, General index. Michael J. Kirton (2003), Adaption-Innovation in the Context of Diversity and Change. Routledge, Hove, Sussex. ISBN 0 415 29850 4 (hb), 0 415 29851 2 (pb), 391 pp.
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    Topics: Economics
    Notes: This article pinpoints requirements for organizing the fuzzy front end of the innovation process. The author derived the conditions for computer-aided idea management from benchmarking the fuzzy front ends of several German and European companies and proposes differentiating between general and company-specific requirements for organizing the fuzzy front end. It is suggested that structuring the fuzzy front end involves low financial investment but highly sensitive and transparent leadership. Using specific properties of ideas in the workplace as springboards, considerations on further new requirements for successful idea management are developed. Placing a particular emphasis on the interface between the idea owner and the idea-adoption system, an ‘idea types’ model is developed, which defines four different extreme types of employees and their inclinations to solve problems. An extended set of requirements for managing ideas in the workplace as a useful instrument in creation and implementation of idea-pipelines in companies and in checking software programmes for idea management or the early stages of new product development programmes is presented.
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    Topics: Economics
    Notes: It is argued that Kirton's theory of styles of creativity is conceptually and methodologically unsound. A solution to the conceptual and methodological dilemmas is offered by way of making a clear-cut distinction between novelty on the stimulus and novelty on the response side. This distinction is used as a platform for the development of a new taxonomy of different kinds of creativity and intelligent behaviour. A major feature of this new model is the distinction made between proactive and reactive creativity. The implications of this distinction for opening new avenues for a more differentiated assessment of creativity, as well as for the development of a conceptually firmer and more differentiated platform for developing new practical training programmes in creativity are suggested.
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    Topics: Economics
    Notes: Flexibility is the capacity to change and to adapt to a challenging environment. It can be either adaptive – when challenges are present in the environment – or spontaneous – a preference for change without any external pressure. Change and adaptation are also key elements of innovation. In this article, we examine how different types of flexibility can play a major part in the innovation process. First, we discuss how flexible cognition and a flexible personality can facilitate the generation of innovations. Second, we discuss how flexibility can be beneficial to the audience for innovations. Lastly, we use the previous discussion of the benefits of flexibility for innovation to illuminate and present some approaches to the improvement of flexibility – both of employees and of the audience – for innovation. These approaches come both from other researchers’ work and from our own original research on the best practices of innovation management in Europe.
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    Topics: Economics
    Notes: Design activity occurs in many professions, ranging from technical to more artistic domains. Whatever the domain, it is a constant challenge for designers to introduce creativity in each design project they work on and minimize the tendency to repeat familiar design features. The goal of this paper is to present a cognitive approach to design problem solving as well as an experimental study. This study aims at determining whether creative ideas can be enhanced by the presentation of external sources of inspiration. In particular, we analyse the effect of the presentation of different kinds of sources (intra- versus interdomain sources, which are presented as graphical representations or as verbal labels) according to the designers’ level of expertise (lay-designers versus professionals). Results show that it is possible to enhance evocation processes in design, but that it is dependent on both the nature of sources of inspiration and the designers’ level of expertise. Based on these results, we suggest ways for enhancing creative ideas in design tasks.
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    Topics: Economics
    Notes: This paper reports a study conducted to examine differences between employees in managerial and non-managerial positions, as well as between men and women, in their perception of climate for creativity in the workplace. It was hypothesized that, in general, managers would perceive the climate as more favourable than non-managers, and this discrepancy should be modulated by gender. The questionnaire used in the study, conceptually grounded in Amabile's empirical and theoretical work on creativity and innovation, was administered to 388 respondents: 229 female and 159 male participants drawn from a wide range of Polish work organizations. The results show that managers perceive the climate as significantly more conducive to creativity than non-managers do. Female employees perceive the climate less favourably than male employees, although these differences appeared smaller and less frequent as compared to the managers/non-managers comparisons. Moreover, higher positions of female participants in the organization do not improve their perception of the climate to the same extent as it does in the case of male participants. Implications and areas for future research are explored.
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    Topics: Economics
    Notes: Henry Chesbrough (2003), Open Innovation – The New Imperative for Creating and Profiting from Technology. HBS Press, Boston. ISBN 1-57851-837-7, 227 pp, US$35-00
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    Topics: Economics
    Notes: Trust among entrepreneurs, their co-workers and between the entrepreneurs and their business partners plays a key role in the early stages of formation of a new company. In this piece of research, trust is defined as a belief consisting of eight trusting beliefs, emphasising the rational consideration between these beliefs and other situational factors. The concept of trust is developed through objects, mechanisms and antecedents. The present paper is an empirical exploration of these phenomena in the context of innovativeness in a high-tech company. The goal is to describe the role, content and impact of trust at the different stages of a business evolution process.
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    Topics: Economics
    Notes: Creative processes are complex and consist of sub-processes, e.g. value creation, scaffolding, imagination and materialization. Creativity takes place in a physical context, i.e. in a confined space. Such space restricts and enables the free flow of sensory experiences and proximity of other people. The confinements may make certain sensory experiences available, e.g. vision of source material, sight and sound (including noise). This framing allows certain cognitive processes and restricts others. This may induce emotions that, in turn, facilitate or reduce the enhancement of creativity. Physical space affects the well-being of people, the channels of information, the availability of knowledge tools and sets the stage for coherence and continuity, which may contribute to competitive advantages.
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    Topics: Economics
    Notes: Sif – a Swedish national trade union for white-collar workers in Industry – has recognized the importance of enhancing its service innovation processes through careful listening to its members. This article will discuss the Design Dialogue Group (DDG) methodology that has been developed through collaborative research between Sif and the Fenix Research Program, in order to enhance group creativity and organizational learning. The emphasis of this paper is restricted to the issue of enhancing group creativity, and literature and empirical data will be used in order to discuss the factors enabling and restraining creativity. The major assumption behind this study is that many factors behind group creativity can be controlled. Thus, a careful design of the group creativity process would increase the likelihood for success since measures to enhance creative behaviours and to avoid pitfalls can be planned and/or taken by a group moderator. In short, the aims of this study are twofold: (1) to relate prior research contributions to DDG experiences in order to augment our understanding concerning factors enhancing and threatening creativity in DDG settings and (2) to systematize these findings into a set of proposed design principles related to domain-relevant skills, creativity-related processes, and task motivation. These propositions concern the recruitment of participants, group characteristics, and group processes.
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    Topics: Economics
    Notes: It is generally acknowledged that innovation is one of the most important predictors of firm success or failure. Successful innovation processes require creating new organizational capabilities to handle the external pressure for new products and processes (fast, good and at low costs), and the internal pressure for increased efficiency and effectiveness. Under these circumstances ‘learning’ is an important issue and the increased interest for topics such as knowledge management, organizational learning and continuous improvement illustrates its relevance. Within the CIMA (Continuous Improvement in Global Product Innovation Management) research project (CIMA-ESPRIT 26056) a methodology has been developed to help companies to stimulate learning behaviour of individuals and teams in product innovation processes. By studying learning behaviour in 140 product innovation projects in 70 companies in six countries, a seemingly valid and reliable scale for measuring learning behaviour has been developed. In addition, managerial activities and decisions that are predictive for improving learning behaviour have been identified.
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    Topics: Economics
    Notes: Larisa V. Shavinina (2003) The International Handbook on Innovation. Pergamon, Amsterdam. Hback, 1208 pp, ISBN 008044198X
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    Notes: The aim of this paper is to explore the transition from traditional measures to creativity and innovation measures within a number of small to medium-sized enterprises (SMEs) case studies. The need for increased competitiveness has created an impetus for increased creativity and innovation in SMEs. However, the measures associated with the process of creativity and innovation in organisations sometimes do not follow cause-and-effect rationale, reflecting non-linear behaviour. A multiple SME-based case research methodology is used to explore the transitioning effects from traditional to more creativity and innovation based measures. The cases were part of a longitudinal creativity and innovation intervention programme, which combined taught modules and Critical Action Learning networks over a two-year period. These networks involved sub-groups applying critical theory-based study to the learning they had received in the modules. The findings reveal that the transition dynamics include a complex mix of cause and effect rationale, phenomenology, incremental change, radical change, quantitative, qualitative and linear and complex contrasts and comparisons. Thus, managers must facilitate an eclectic approach to creativity and innovation measures.
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    Topics: Economics
    Notes: Technological listening posts as a means of technological knowledge sourcing were observed to be a widespread empirical phenomenon in centres of technological excellence and innovation clusters. Our research is based on 55 semi-structured interviews with 12 technology-intensive companies and 6 benchmarking-workshops on external knowledge sourcing with 11 companies. We reveal three archetypes of listening posts: trend scout, technology outpost and matchmaker. We describe their respective mission, organizational structure and critical success factors. Each type is illustrated with case studies.
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    Topics: Economics
    Notes: The concept of innovation is valued in most organizations to create and sustain competitive advantage. Firms need to innovate in order to stay ahead in the market. Businesses are experiencing the internationalization of technology-driven competition, globalization of manufacturing, shorter product life-cycles, increasingly sophisticated customers needs and a greater integration of technologies (Shepherd & Ahmed, 2000). These challenges have compelled organizations to develop innovative strategies, products and processes. One area that is increasingly seeking ways of adding value through innovation is the logistics function. This paper examines and compares factors that are driving innovation in Australia and Singapore in distribution centres part of the logistics function that has been slow in the past to innovate.
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    Notes: A new impetus for greater knowledge-sharing among team members needs to be emphasized due to the emergence of a significant new form of working known as ‘global virtual teams’. As information and communication technologies permeate every aspect of organizational life and impact the way teams communicate, work and structure relationships, global virtual teams require innovative communication and learning capabilities for different team members to effectively work together across cultural, organizational and geographical boundaries. Whereas information technology-facilitated communication processes rely on technologically advanced systems to succeed, the ability to create a knowledge-sharing culture within a global virtual team rests on the existence (and maintenance) of intra-team respect, mutual trust, reciprocity and positive individual and group relationships. Thus, some of the inherent questions we address in our paper are: (1) what are the cross-cultural challenges faced by global virtual teams?; (2) how do organizations develop a knowledge sharing culture to promote effective organizational learning among culturally-diverse team members? and; (3) what are some of the practices that can help maximize the performance of global virtual teams? We conclude by examining ways that global virtual teams can be more effectively managed in order to reach their potential in this new interconnected world and put forward suggestions for further research.
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    Notes: Conflict and conflict management are critical research issues in client-supplier collaborative new product development (NPD). A recent study found that conflict intensity and conflict-handling styles affect collaborative NPD performance. In this paper, we explore the relationships of four NPD project factors, namely product technical complexity, product certainty, task interdependence and the relative power of supplier, to conflict intensity and suppliers’ adoption of integrating and dominating conflict-handling styles. Research findings based on survey data collected from 193 suppliers provide a clear insight into the conflict intensity and suppliers’ adoption of conflict-handling styles for NPD projects of various characteristics, which enables better planning for conflict management and helps improve NPD performance.
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    Notes: Project organizations operate in environments where innovation depends significantly on the ability to integrate different but interrelated knowledge bases. These knowledge bases include individuals who are located outside organizational boundaries and have no formal relationship with the organization, but are connected socially to project workers. Organizational researchers have generally recognized the importance of external social relations for knowledge search. However there is some debate on the question of whether social networks are more useful for innovation if they provide social cohesion through close interaction or access to diverse and novel sources of knowledge through more distant relationships. This study explores the configuration of project workers’ external social networks and their effects on innovative behaviour, using data on the network ties of workers in 17 project organizations in the new-media industry. The findings are more consistent with the social embeddedness view of close social relations providing an important source of continuity in markets where intermittent projects are common. Project workers embedded in cohesive work-related social structures outside the organization tend to be more innovative in their project work than workers lacking such networks.
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    Notes: Creativity is essential to successful new product development efforts. Teams constitute the organizing principle in most modern innovation activities. Although creativity research has revealed many factors influencing individual creativity, little is known about how team-level creativity is determined. Since the creative innovation task requires teams to combine and integrate input from multiple team members, the team's communication pattern is an important determinant of team creativity. Based on a sample of 44 NPD teams in eleven companies, this study examines the effects of team-member communication on team creativity. It is found that both interaction frequency and subgroup-formation of communication have a negative relationship to team creativity. Theoretical and practical implications are discussed, and further research is indicated.
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    Corporate governance 12 (2004), S. 0 
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    Topics: Political Science , Economics
    Notes: Corporate governance as a coherent notion and independent topic of academic and practitioner interest has developed rapidly in the last ten years. In particular, most countries have seen the publication of vast numbers of regulatory reports outlining best practice in handling the issues that arise from the increased prominence of the governance concept. Although a vast literature exists on the implications of an Initial Public Offering (IPO) for financial performance and ownership structure, few investigations have communicated directly with issuing firms and analysed the practical difficulties encountered on a day-to-day basis when a company decides to float. In particular, very few studies have sought to examine what corporate governance changes, if any, are made in the process. This note reports the findings of a questionnaire survey and a series of interviews with practitioners about the changes that are made before and after a sample of IPOs in the UK.
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    Topics: Political Science , Economics
    Notes: This paper discusses the corporate governance of banking institutions in developing economies. This is an important issue given the essential role that banks play in the financial systems of developing economies and the widespread banking reforms that these economies have implemented. Based on a theoretical discussion of the corporate governance of banks, we suggest that banking reforms can only be fully implemented once a prudential regulatory system is in place. An integral part of banking reforms in developing economies is the privatisation of banks. We suggest that corporate governance reforms may be a prerequisite for the successful divestiture of government ownership. Furthermore, we also suggest that the increased competition resulting from the entrance of foreign banks may improve the corporate governance of developing-economy banks.
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