role of country and firm level determinants in environmental social and governance disclosure in recent years companies receive pressure to release environmental social and governance esg disclosure since these are perceived as critical issues by society despite this pressure esg disclosure practices considerably vary by firm prior academic literature investigated country and firm level factors determining such variation alternatively adopting the institutional and legitimacy theory by combining these theories in a unique framework this study investigates the extent to which social structures i e institutional theory and social legitimization i e legitimacy theory influence esg disclosure practices and each pillar results obtained using a cross country sample of 14 174 firm year observations during 2005 2012 provide evidence that country level characteristics such as a political system legal framework and corruption labor system labor protection and unemployment rate and cultural system social cohesion and equal opportunities significantly affect firms esg disclosure practices however their impact is heterogeneous in that they either reduce or enhance disclosure levels and may differ by pillar results for firm level characteristics related to a firm s visibility analysts coverage cross listing leverage and size demonstrate a positive and homogeneous effect on esg disclosure and each pillar these results inform policy makers and regulators aiming to enhance esg disclosure levels of the risk they incur when managing variables related to social structure and the benefits of exposing firms to higher visibility

what drives corporate social performance the role of nation level institutions based on whitley s national business systems nbs institutional framework we theorize about and empirically investigate the impact of nation level institutions on firms corporate social performance csp using a sample of firms from 42 countries spanning seven years we construct an annual composite csp index for each firm based on social and environmental metrics we find that the political system followed by the labor and education system and the cultural system are the most important nbs categories of institutions that impact csp interestingly the financial system appears to have a relatively less significant impact we discuss implications for research practice and policymaking

determination of network rental components in a competitive electricity market the locational marginal pricing lmp based settlement results in a surplus collected by the system operator from the consumers the nonlinear transmission losses and the constrained operation of the power system due to operating limits such as power flow limits on transmission lines cause the accumulation of this surplus this accumulated revenue referred to as the network rental in this paper has two main components loss rental and constraint rental this paper develops a method to calculate these different rental components paid by each consumer by combining the power flow tracing and kkt optimality conditions this yields quantitative determination of how each consumer has overpaid in the form of loss rental and constraint rental which in turn can be used to get a better insight of how the rental is accumulated simple three and four bus systems are used to demonstrate the proposed method

binary choice models with social network under heterogeneous rational expectations abstract this paper extends brock and durlauf s 2001a 2001b binary choice complete network or group interaction model with homogeneous rational expectations to a general network model with heterogeneous rational expectations in our model individuals will form expectations regarding peers behaviors taking into account their characteristics endogenous contextual and correlated effects are all identifiable conditions for unique equilibrium are established for a complete network with heterogeneous rational expectations multiple equilibria can be characterized by an aggregate scalar index the empirical results on adolescents smoking behaviors show significant endogenous and contextual effects even after controlling for school grade random effects and school fixed effects

comparing capitalisms and taking institutional context seriously a major limitation of existing international business ib research remains the rather thin view of institutional context in this retrospective we reflect upon and highlight different strategies for overcoming de contextualized perspectives and developing thicker conceptions of institutions drawing on comparative research institutions shape firm behavior not only through their direct or additive effects but have more complex influences by moderating relationships between firm level variables or having interactive or configurational effects related to wider sets of institutions these views can each be extended by adopting a dynamic perspective examining how multinational enterprise mne agency contributes to processes of institutional change ultimately a large gap remains in taking institutions seriously that ib scholars could fill by developing middle range theories that link and compare how particular kinds of institutions or institutional configurations influence particular kinds of mne activities

marginal loss modeling in lmp calculation this paper discusses the pricing of marginal transmission network losses in the locational marginal pricing approach recently deployed in the iso new england iso ne standard market design smd project implemented by alstom s t d energy automation and information eai business the traditional loss model is studied and a new model is proposed the new model achieves more defendable and predictable market clearing results by introducing loss distribution factors to explicitly balance the consumed losses in the lossless dc power system model the distributed market slack reference is also introduced and discussed the lmp components produced by the two models are studied and compared under changes in slack reference numerical examples are presented to further compare the two models

a generalized class of locational pricing mechanisms for the electricity markets abstract in this paper we consider a new class of mechanisms l p r which serves as a generalization of locational marginal pricing lmp and uniform pricing cp mechanisms we analyze a space of possible mechanisms defined by the l p r class in the context of fairness system balancing cost and market signals we show that lmp is the only mechanism that produces signals of good quality on the other hand the uniform price mechanism enables minimization of system balancing costs and thereby maximization of economic surplus which is allocated under competitive rules lmp generally works better than cp in terms of fairness however we show that there are other possibilities for constructing new and interesting mechanisms in the l p r class we present an exemplary mechanism lp which acts as a trade off between lmp and cp and presents sustainable properties the numerical experiments we provide reveal that lp has interesting features finally we claim that none of the following mechanisms lmp cp and lp is dominated in l p r space in terms of considered quality measures

a multinomial choice model of neighborhood effects this paper provides a model of individual decisionmaking in the presence of neighborhood effects by neighborhood effects we refer to interdependencies between individual decisions and the decisions and characteristics of others within a common neighborhood as such neighborhood effects are forms of social interactions in fact the terms would seem to be interchangeable in many contexts within economics there has developed an increasing recognition that neighborhood effects play a possibly major role in explaining a range of individual behaviors rich empirical and theoretical literatures have developed a failing of much of this work is the absence of strong connections between theory and empirics this paper addresses this limitation by providing a model of multinomial choice with neighborhood effects the model represents a generalization of the binary choice model of william brock and steven durlauf 2001a b the model is econometrically implementable and so has the potential of allowing for structural estimation of neighborhood effects section i outlines a basic choice model with neighborhood effects section ii specializes the structure using a multinomial logit framework section iii considers econometric implementation section iv discusses some limitations of the framework and proposes some research directions proofs of all theorems may be found in brock and durlauf 2001c

marginal loss pricing for hours with transmission congestion nodal electricity prices are designed to send efficient economic signals to market participants for operating and investment decisions the inherent nonlinearity of transmission losses and the use of marginal loss pricing can obscure the intended economic information in the loss component of nodal prices as one step in clarifying the determination of the marginal loss price component this paper discusses the calculation of nodal electricity prices in lossy networks and presents a variety of accepted methods for determining marginal loss this paper then proposes a method for calculating the marginal loss component of nodal prices during hours with congestion that reflects each market participant s contribution to marginal losses more accurately than current implementations the proposed method recognizes that increases in incremental energy flows cannot flow across constrained lines and thus system wide marginal losses should not be attributed to generators or loads in the constrained subregions the objectives of the discussion are to improve the understanding of how marginal losses are determined and also to improve the accuracy of the information conveyed in the marginal loss price component the ultimate goal is to promote more efficient price signals to electricity market participants for both transmission loss and congestion

an iterative lmp calculation method considering loss distributions generally the locational marginal price lmp is obtained by solving a linear programming formulation network losses are considered through the preset loss factors based on historical operation information this usually brings errors in the calculated loss under different new scenarios further the congestion component of an lmp is dependent on the choice of the reference bus in this paper a new iterative lmp calculation method is proposed to overcome the aforementioned two drawbacks associated with the traditional lmp calculations at each iteration a linear programming problem for market clearing is solved first losses on branches are considered as fictitious nodal demands at their terminal buses secondly the ac power flow is calculated according to the dispatch results loss factors and fictitious nodal demands are then updated according to the ac power flow solution thus removing the need and dependence on presetting loss factors another important merit is that lmp and its congestion component obtained from the proposed iterative lmp calculation method are independent of choice of the reference bus the effectiveness of the proposed method is illustrated on two benchmark systems the importance of obtaining accurate losses and lmps is also demonstrated

two stage stochastic programming model for market clearing with contingencies planning for contingencies typically results in the use of more expensive facilities before disruptions it leads to different prices and energy availability at various network locations depending on how the contingency analysis is performed in this paper we present a two stage stochastic programming model for incorporating contingencies the model is computationally demanding and made tractable by using an interior point log barrier method coupled with benders decomposition the second stage optimal recourse function rf defines the most economically efficient actions in the post contingency state for returning the system back to normal operating conditions the approach is illustrated with for two examples small with 8 buses 11 branches and ieee medium scale with 300 buses 411 branches

multinationality and corporate ethics codes of conduct in the sporting goods industry the international operations of firms have substantial impact on the formulation and implementation of business ethical principles such as codes of conduct the international sporting goods industry has been a pioneer in setting up codes and thus provides much relevant experience different sourcing strategies degrees of multinationality and national backgrounds affect the contents of codes moreover international non governmental organizations prove equally effective in triggering sophisticated codes

a comprehensive assessment of the evolution of financial transmission rights financial transmission rights ftrs are complementary to the locational marginal pricing of energy the basic aim of the ftr mechanism is to guard forward contracts from uncertain congestion charges ftrs are also useful to individual generators and loads for selling and buying power respectively at the prices of other locations the concept has evolved encompassing many features such as a simultaneous feasibility test various ways to conduct auctions and allocations and secondary trading ftrs also have a close relation to market power and transmission investment this paper reviews most of the landmark research papers on the evolution of the ftr concept it reports a comprehensive assessment of various facets of ftrs and allied issues financial transmission rights and flowgate rights fgrs are compared the concept of long term ftrs is discussed the paper also touches upon future proposals in this area

shareholder value stakeholder management and social issues what s the bottom line we test the relationship between shareholder value stakeholder management and social issue participation building better relations with primary stakeholders like employees customers suppliers and communities could lead to increased shareholder wealth by helping firms develop intangible valuable assets which can be sources of competitive advantage on the other hand using corporate resources for social issues not related to primary stakeholders may not create value for shareholders we test these propositions with data from s p 500 firms and find evidence that stakeholder management leads to improved shareholder value while social issue participation is negatively associated with shareholder value copyright 2001 john wiley sons ltd

responsibility in paradise the adoption of csr tools by companies domiciled in tax havens in contrast to the recent rise to economic importance of offshore finance centres ofcs the topic of taxation has so far created little interest among scholars of corporate social responsibility csr this paper makes two contributions to addressing this lacuna applying a range of influential normative theories of ethics it first offers an ethical evaluation of tax havens second the paper examines what use large firms that are headquartered in two ofcs bermuda and the cayman islands make of formal csr tools the emerging duplicity in tax haven based companies professing social responsibility highlights once more the political nature of csr where at least some firms and or industries can successfully limit government power to enact regulation as well as shape the discourse around csr the study of csr in ofc based firms thus calls into question the usefulness of the often quoted definition of csr as going beyond the law

do corporate codes of ethics reflect national character evidence from europe and the united states this paper analyses the usage and contents of corporate codes of ethics the results from a sample of 600 large european companies are contrasted with findings reported for similar u s firms the comparison reveals that significantly fewer european than u s firms adopted codes of ethics in europe the large majority of codes have been introduced only very recently and there are indications that codes made their way into europe via subsidiaries of u s firms however there are striking differences in content between u s and european codes of ethics pointing to the existence of a distinctly european approach to codifying ethics

the signaling effect of corporate social responsibility in emerging economies what signals do firms in emerging economies send to stakeholders when they adopt corporate social responsibility csr practices we argue that in emerging economies firms that adopt csr practices positively signal investors that their firms have superior capabilities for filling institutional voids from an institution based view we hypothesize that the institutional environment moderates the signaling effect of csr on a firm s financial performance based on a sample of firms from ten asian emerging economies we find a positive relationship between csr practices and financial performance this positive relationship is stronger in the less developed capital market than in the more developed one the financial benefits of csr practices are also more salient in the low information diffusion market than in the high one we emphasize that signaling theory and the institution based view can jointly contribute to the csr literature

political behavior social responsibility and perceived corruption a structuration perspective this study unites the three lenses political behavior corporate social responsibility and corruption and evaluates the way in which multinational enterprises mnes manage political and social forces in a foreign emerging market using the theory of structuration as the conceptual foundation we propose that an mne s propensity to cooperate with the host government is positively related to its philanthropic contribution and resource accommodation whereas its propensity to be assertive with the host government is positively associated with its emphasis on ethics and organizational credibility we argue that when perceived corruption in the business segment increases an mne s propensity to cooperate and be assertive with the government decreases its focus on ethics heightens and its philanthropic contribution diminishes as to the three way interactions when perceived corruption in the business segment increases mnes that focus more on ethics have a greater propensity to use arm s length bargaining to deal with the government whereas those focusing less on ethics have a greater propensity to use social connections to deal with the government our analysis of sample mnes in china generally supports these propositions

dcopf based marginal loss pricing with enhanced power flow accuracy by using matrix loss distribution on current days many of the power markets are adopting the practice of marginal loss pricing the dc optimal power flow dcopf model is still mostly used for the purpose of market clearing owing to its simplicity robustness and higher speed of convergence within the dcopf framework transmission line losses are represented as additional external loads on the system in the classical dcopf model of marginal loss pricing as implemented in the new england market the aggregated network loss is distributed over the system nodes in a fixed ratio to gain more design flexibility in the distribution of system losses a matrix loss distribution mld framework is developed in this paper maintaining compatibility with financial transmission rights in mld each individual line is considered separately for the purpose of loss distribution the ratio in which the power loss in a certain line is distributed can be different from that in which the power loss in another line is distributed the additional design flexibility thus obtained assists in making a more accurate representation of the power flow the benefit of mld is illustrated through a case study an energy reference independent application of mld is also suggested

market based generation and transmission planning with uncertainties this paper presents a stochastic coordination of generation and transmission expansion planning model in a competitive electricity market the monte carlo simulation method is applied to consider random outages of generating units and transmission lines as well as inaccuracies in the long term load forecasting the scenario reduction technique is introduced for reducing the computational burden of a large number of planning scenarios the proposed model assumes a capacity payment mechanism and a joint energy and transmission market for investors costs recovery the proposed approach simulates the decision making behavior of individual market participants and the iso it is an iterative process for simulating the interactions among gencos transcos and iso the iterative process might be terminated by the iso based on a pre specified stopping criterion the case studies illustrate the applications of proposed stochastic method in a coordinated generation and transmission planning problem when considering uncertainties

continuous locational marginal pricing clmp this paper proposes a solution to eliminate the step change in the curve of location marginal price lmp with respect to load variation the new solution is named continuous locational marginal pricing continuous lmp or clmp because it is a continuous function with respect to load the present lmp methodology leads to a step change when a new constraint either transmission or generation becomes binding as load increases similarly there is also a step change of lmp if an existing constraint is no longer binding when load decreases the proposed clmp methodology smooths the step changes in the price curve and introduces a fourth component future limit risk flr price in addition to the present three lmp components energy price congestion price and loss price also flr is an indication of how close the present system state moves to the next constraint an algorithm is proposed in this paper to give a technically efficient method to calculate clmp and flr price two case studies are presented to demonstrate the proposed clmp methodology

optimal lmp decomposition for the acopf calculation the objective of this work is to design a suitable rule for the energy reference selection in the ac optimal power flow acopf based locational marginal price lmp calculation in the case of the acopf model the congestion component of the lmp vector exhibits strong dependence on the energy reference this in turn makes the hourly values of financial transmission rights ftrs to be reference dependent and thus is a source of dispute in order to resolve this dispute a direct optimization framework is developed in this work exploring the interrelationship between the congestion components of locational marginal prices at individual buses the objective function and the constraints of this optimization model are carefully designed looking at the true motive of the lmp decomposition at the same time necessary attention is paid so as to ensure revenue adequacy in the ftr settlement the optimization problem that is ultimately to be solved is a simple quadratic programming problem with only one variable and two constraints the effectiveness of the proposed methodology is verified through a case study on a modified ieee 30 bus system the framework developed also unveils several interesting features of the lmp components that were under cover until now

ex post pricing in the co optimized energy and reserve market this paper discusses an alternative to the ex post pricing model currently under development within iso new england s iso ne ancillary service market since iso ne s real time ancillary service market co optimizes both energy and reserve products ex post pricing is needed for both energy and reserve a co optimization approach for ex post pricing requires defining complex pricing rules and implementing heuristics to ensure consistent binding constraints with the ex ante dispatch in order to avoid complexity and uncertainty of required heuristics a new ex post pricing schema is proposed to calculate the ex post energy and reserve prices in a decoupled way while recognizing the coupling effect of energy and reserve in the proposed approach ex post energy prices are first computed by incorporating the ex ante marginal opportunity cost of reserve in the energy offer the ex post reserve prices are then calculated by considering the ex post marginal opportunity cost of energy this approach simplifies the implementation of ex post pricing rules in the iso ne market numerical examples are presented to further demonstrate the validity of this approach

a security constrained bid clearing system for the new zealand wholesale electricity market this paper reports upon the mathematical models and implementation of the scheduling pricing and dispatch spd application for the new zealand electricity market nzem spd analyzes bids for energy offers reserve offers and energy demands and recognizes explicitly the effects on bid clearing due to transmission congestion network losses reserve requirements and ramp rate limits advanced lp solution methods are utilized to solve the large scale constrained optimization problem results on a 67 bus test system and the nzem are included

the effect of contingency analysis on the nodal prices in the day ahead market we look at the effect of modeling branch outage contingencies on locational marginal prices to model contingencies in the day ahead auction we formulate a two stage stochastic program rather than follow the current practice of including a list of possible contingencies that must be satisfied we incorporate a larger set of contingencies in the model and allow contingencies to result in load reductions outages at a cost the model can be used and interpreted in two ways one is to look at the tradeoff between reliability and outage costs another is to consider the load losses resulting from a contingency to be consumer offers of load reductions in response to line outages as part of the day ahead auction in analyzing the model structure we find that the prices in the model closer in definition to those currently used in the day ahead auction do not maximize expected surplus because the day ahead auction produces prices that assume shortages will never occur this raises issues with the design of auctions with important stochastic elements in the market we present results for a 68 node grid with 86 branches lines and transformers to illustrate how prices and expected values change as the costs of outages are varied

de globalization theories predictions and opportunities for international business research de globalization now a distinct possibility would induce a significant qualitative shift in strategies structures and behaviors observable in international business ib coming to terms with this qualitative shift would require ib research to develop a much deeper integration of politics the key driver of de globalization to support such integration this paper introduces two relevant theories of de globalization from political science liberalism and realism both predict de globalization under current conditions but lead to different expectations about the future world economy liberalism suggests a patchwork of economic linkages while realism predicts the emergence of economic blocs around major countries this paper discusses the resulting opportunities in three areas of ib research political strategies and roles of multinational enterprises mnes global value chains and the role of the national context for political strategies and roles there is a need to explore how regular business activities and deliberate political agency of mnes affect the political sustainability of globalization for value chains questions include their future reach and specialization changes in organizational forms and the impact of political considerations on location decisions research opportunities on national contexts relate to their ability to sustain globalization and their connection with economic and military power

comparing capitalisms understanding institutional diversity and its implications for international business this paper examines the role of institutional analysis within the field of international business ib studies within ib institutions matter but the view of institutions tends to be thin utilizing summary indicators rather than detailed description and thus approaches institutions as unidimensional variables that impact on particular facets of business activity this paper argues that ib research would be usefully advanced by greater attention to comparing the topography of institutional landscapes and understanding their diversity a number of alternative case based approaches are outlined that draw on a growing comparative capitalisms literature in sociology and political science the paper develops a number of empirical examples to show the utility and limits of these approaches for ib scholars

questioning organizational legitimacy the case of u s expatriates it has been estimated that u s companies with global business operations can reduce their u s tax bill by up to 10 percentage points if they reincorporate in a zero or low tax offshore jurisdiction but this activity at a time of national crisis following the september 11 terrorists attacks and recent spate of corporate scandals has received a less than sympathetic response from the u s media ordinary taxpayers shareholders and politicians as concerns are raised about the reduction of the tax base and the lack of oversight and regulation in offshore centres offshore reincorporation has been condemned as immoral unconscionable dishonest and unpatriotic accusations that cast doubt on the legitimacy of the companies concerned in question is their right to conduct business in the u s and in particular their right to still be viewed as american their legitimacy once bestowed so readily by the company s shareholders is now being questioned not only by shareholders but also the media politicians government regulators pension funds and labour unions expatriate companies have been slow to respond to questions of their legitimacy viewing their offshore move as a financial decision needing only the consent of their shareholders however times have changed and corporate legitimacy is now in the hands of all the company s stakeholders companies will need to explicitly consider the determinants of their legitimacy and the implications of the implied social contract under which they operate to remain relevant in the days ahead

discrete choice with social interactions this paper provides an analysis of aggregate behavioural outcomes when individual utility exhibits social interaction effects we study generalized logistic models of individual choice which incorporate terms reflecting the desire of individuals to conform to the behaviour of others in an environment of noncooperative decisionmaking laws of large numbers are generated in such environments multiplicity of equilibria in these models which are equivalent to the existence of multiple self consistent means for average choice behaviour will exist when the social interactions exceed a particular threshold local stability of these multiple equilibria is also studied the properties of the noncooperative economy are contrasted with the properties of an economy in which a social planner determines the set of individual choices finally a likelihood function based on the theoretical model is given and conditions for the econometric identifiability of the model are established

market based coordination of transmission and generation capacity planning we propose an iso model for coordinating transmission expansion planning with competitive generation capacity planning in electricity markets the purpose of the model is a holistic simulation of generation and transmission capacity expansion in the market environment the solution represents an iterative process for simulating the interactions among gencos transcos and the iso which might be terminated by the iso based on a pre specified stopping criterion the proposed model adopts a joint energy and transmission auction market and a capacity mechanism the joint auction market enables competition to occur among generation and transmission resources the capacity mechanism offers incentives for market participant investments that reflect the locational values of additional capacity transmission capacity expansion decisions are made by merchant transmission lines that recover their capacity investments through transmission marginal pricing and capacity payments transmission network security is reflected in the proposed competitive resource planning model the examples illustrate a coordinated planning of generation and transmission in restructured power systems

risk based locational marginal pricing and congestion management this paper develops a new electricity market clearing mechanism called risk based locational marginal pricing rlmp the rlmp is derived from the risk based security constrained economic dispatch model where risk is modeled to capture the system s overall security level compared to the traditional locational marginal pricing lmp which is composed of three components energy congestion and loss the rlmp consists of an additional risk component the risk component is a price signal to reflect the system s overall security level this paper discusses the features of rlmp and analyzes its benefits over traditional lmps the proposed concept and method are illustrated on a six bus system and the wecc 240 bus system

an energy reference bus independent lmp decomposition algorithm the volatility of the price of electricity in a locational marginal price lmp market makes it necessary to introduce financial price risk hedging instruments the congestion related and marginal loss related revenue surpluses collected by the regional transmission operator rto are proposed to be redistributed to market players it is important to be able to correctly decompose the lmp into its congestion and marginal loss components which are critical for the valuation and settlement of these financial instruments a new energy reference bus independent lmp decomposition model using an ac optimal power flow opf model is presented to overcome the reference bus dependency disadvantage of the conventional approach the marginal effect of the generators output variation with respect to load variation are used as the basis of this decomposition model the theoretical derivation and a proof are given the new model achieves a set of reference bus independent results an example is presented comparing the new model with the conventional model

firm self regulation through international certifiable standards determinants of symbolic versus substantive implementation international certifiable management standards that have been advocated as a governance mechanism for firm self regulation of corporate social responsibility issues are effective only if certified firms comply with the requirements of the standards our empirical analysis shows that iso certified firms in china strategically select their level of compliance depending on customer preferences customer monitoring and expected sanctions by customers our findings have implications for the effectiveness of a global system of self regulation based on certifiable standards research on certifiable standards and for practicing managers who require suppliers to obtain standard certifications

introduction to loss hedging financial transmission rights in order to guard forward contracts from the locational marginal price lmp volatility financial transmission rights ftrs are issued in the centralized power markets however the current ftr system can provide hedge only against the congestion components of lmp differentials consequently the loss components remain unhedged to bridge the gap a framework is developed in this paper to implement an ftr system that will provide hedge against the loss prices the availability of loss hedging ftrs in addition to the congestion hedging ftrs further reduces the exposure of the forward market participants to the lmp volatility the loss hedging framework developed is carefully designed to fit the practical environment all the primary issues for the implementation of loss hedging ftrs such as the revenue adequacy test auction and auction revenue rights are carefully addressed revenue adequacy of loss hedging ftrs can be ensured by means of a test called as the offset capacity test some efficient policies are also designed for the successful functioning of loss hedging ftrs at the end of the paper a case study is carried out to assess the effectiveness of the methodology developed

impact of data quality on real time locational marginal price the problem of characterizing impacts of data quality on real time locational marginal price lmp is considered because the real time lmp is computed from the estimated network topology and system state bad data that cause errors in topology processing and state estimation affect real time lmp it is shown that the power system state space is partitioned into price regions of convex polytopes under different bad data models the worst case impacts of bad data on real time lmp are analyzed numerical simulations are used to illustrate worst case performance for ieee 14 and ieee 118 networks

the regulation of labor author s botero juan djankov simeon la porta rafael lopez de silanes florencio shleifer andrei abstract we investigate the regulation of labor markets through employment collective relations and social security laws in 85 countries we find that the political power of the left is associated with more stringent labor regulations and more generous social security systems and that socialist french and scandinavian legal origin countries have sharply higher levels of labor regulation than do common law countries however the effects of legal origins are larger and explain more of the variation in regulations than those of politics heavier regulation of labor is associated with lower labor force participation and higher unemployment especially of the young these results are most naturally consistent with legal theories according to which countries have pervasive regulaory styles inherited from the transplantation of legal systems

the maturing of socially responsible investment a review of the developing link with corporate social responsibility this paper reviews the development of socially responsible investment sri over recent years and highlights the prospects for an increasingly strong connection with the practice of corporate social responsibility the paper argues that not only has sri grown significantly it has also matured in particular it has become an investment philosophy adopted by a growing proportion of large investment institutions this shift in sri from margin to mainstream and the position in which institutional investors find themselves is leading to a new form of sri shareholder pressure although this bears some resemblance to lobbying campaigns which might take advantage of shareholder rights we seek to distinguish it as an important phenomenon in its own right one to which corporate executives are likely to be paying increasing attention in the years to come we further argue that this approach potentially meets some of the earlier ethical criticisms of certain forms of sri but ironically probably owes its existence to those pioneering approaches we conclude with some suggestions for further research to inform discussion of the issues highlighted in the paper

are firms with foreign ceos better citizens a study of the impact of ceo foreignness on corporate social performance this study examines whether firms corporate social performance csp varies when local firms have foreign ceos building on the social identity perspective we argue that because foreign ceos are perceived as outgroup or nonprototypical leaders by the local firms stakeholders local firms with foreign ceos need to achieve a higher level of csp than do local firms with local ceos to enhance their legitimacy and trustworthiness furthermore we propose that the predicted difference in csp between foreign and local ceo led firms will be larger a for more authentic and thus trust enhancing csr activities and b in those socio economic environments where the salience of ceo foreignness and thus the need to build trustworthiness with locals is more pronounced in a sample of 1001 local firms across 18 developed countries during the period between 2003 and 2015 our empirical results support most of our predictions

implementation of lmp ftr mechanism in an ac dc system this paper analyzes the implementability of locational marginal price lmp and financial transmission right ftr mechanisms in the presence of high voltage dc hvdc lines in the regulated i e under the control of system operator network the established framework of lmp ftr mechanism assumes that the system under regulation is fully ac unregulated or private hvdc lines are taken into account within this framework through proxy transaction bids from the line owners however as the flow over a regulated hvdc line has to be controlled by the system operator himself the existing lmp ftr framework becomes insufficient if the system contains or is expanded with regulated hvdc lines the augmentation that should be made to the existing framework to include regulated hvdc lines is explained in this paper it is shown that the flow over a regulated hvdc line can be modeled as a non chargeable bilateral transaction without causing any threat of negative congestion surplus for this power dispatch model revenue adequacy of ftrs can be still ensured by means of the conventional simultaneous feasibility test sft model by utilizing the capacities of dc lines a more general sft model is further developed the modified auction problem is discussed and tested for the non negativity of net auction collection the process of revenue adequate issuance of auction revenue rights is explained finally the relative merit of a regulated hvdc line over a private hvdc line is discussed through a case study

a general formulation for lmp evaluation the evaluation of locational marginal prices or lmps which constitute the basis of the new generation of market design in the u s is a critical need in the side by side operation of electricity markets and power systems their use in various applications such as congestion management and hedging requires specific lmp components in the computations we provide a general formulation for the evaluation of the lmp components by making explicit use of the important role played by the nodes with generators with free capacity on the other hand the lmps of the nodes without generation or with the generators at their limits are a function of the lmps at the marginal nodes and the impacts of the network constraints including the losses in the network in the formulation we pay special attention to the importance of the assumptions and specifications the so called policy specification in the determination of the components we obtain a very general formulation that brings under a single framework the different decomposition approaches that exist the formulation s comprehensiveness brings numerous insights into the various decompositions provides a platform for their comparative analysis and allows us to understand the direct implications and the role of the policy specified moreover the formulation reveals the limitations of any decomposition into the components due to the underlying structural interdependencies among them which is clearly shown in this paper we provide an example to illustrate the capabilities and the insights obtainable with the use of this formulation

factors influencing voluntary annual report disclosures by u s u k and continental european multinational corporations this study examines factors influencing the voluntary disclosures of three types of information strategic nonfinancial financial contained in the annual reports of mncs from the u s u k and continental europe while company size country region listing status and to a lesser extent industry are the most important factors explaining voluntary disclosures overall the importance of the factors varies by information type

identification of endogenous social effects the reflection problem this paper examines the reflection problem that arises when a researcher observing the distribution of behaviour in a population tries to infer whether the average behaviour in some group influences the behaviour of the individuals that comprise the group it is found that inference is not possible unless the researcher has prior information specifying the compisition of reference groups if this information is available the prospects for inference depend critically on the population relationship between the variables defining reference groups and those directly affecting outcomes inference is difficult to implossible if these variables are functionally dependent or are statistically independent the prospects are better if the variables defining reference groups and those directly affecting outcomes are moderately related in the population

cultural and leadership predictors of corporate social responsibility values of top management a globe study of 15 countries this paper examines cultural and leadership variables associated with corporate social responsibility values that managers apply to their decision making in this longitudinal study we analyze data from 561 firms located in 15 countries on five continents to illustrate how the cultural dimensions of institutional collectivism and power distance predict social responsibility values on the part of top management team members ceo visionary leadership and integrity were also uniquely predictive of such values

an institutional analysis of corporate social responsibility in kenya there is little doubt that corporate social responsibility csr is now a global concept and a prominent feature of international business with its practice localised and differing across countries despite the growing body of research focussing on csr in developing countries there is dearth research on csr institutionalisation in african countries drawing on institutional theory it this article examines the focus and form of csr practice of companies in kenya it is evident from our findings that the nature and orientation of csr differ across companies with operations only in kenya and those headquartered abroad or with international operations significantly firm related drivers such as public relations and performance as well as global institutional pressures explain the focus and form of csr in kenya this article concludes that for the institutionalisation of csr in kenya attention must be paid to conditions that stifle csr uptake such as lack of government regulations and the government s capacity and commitment to enforce regulation the establishment of functional csr institutions and a vibrant civil society that advance civil regulation ought to be encouraged

predicting stakeholder orientation in the multinational enterprise a mid range theory as the reach of corporations increasingly extends across borders a key research question is whether overseas subsidiaries adopt a shareholder centric orientation centered on maximizing shareholder wealth or a stakeholder centric orientation centered on creating value for a broader range of stakeholders existing theories addressing the corporate level of analysis focus on forces exogenous to the firm local resource pressures and institutional norms using a combination of induction and fuzzy set analysis i draw on documentary evidence and 298 interviews with managers and stakeholders to build theory about the conditions that shape subsidiaries stakeholder orientations two major findings emerge first although theory emphasizes external stakeholders control over resources internal control through the corporate parent can crowd out the voices of local stakeholders second although institutional theory proposes isomorphism with local norms and standards some corporations are subject to scrutiny by global stakeholders and their subsidiaries face higher requirements for social engagement than their peers these findings are the foundation of a mid range theory that combines conventional explanations focused on environmental factors and an internal stakeholder perspective based around the roles of the parent corporation as owner and resource provider to predict stakeholder orientation

a social interaction model with ordered choices abstract we introduce a social interaction model with ordered choices we provide a micro foundation for the econometric model based on an incomplete information network game and characterize the sufficient condition for the existence of a unique equilibrium of the game we discuss the identification of the model and propose to estimate the model by the nfxp and npl algorithms we conduct monte carlo simulations to investigate the finite sample performance of these two estimation methods

start up sustainability an insurmountable cost or a life giving investment abstract an outstanding question in the entrepreneurship literature reigns given recent emphases on sustainable business practices and corporate social responsibility if small start ups are generally stretched for time and resources does it enhance their chances for survival and success to be sustainable and socially responsible new firms can aid in rectifying pressing environmental and social issues by being more sustainable while many entrepreneurs like a sustainable business model and or mission investment may not follow so willingly this paper examines a sample of 300 start ups across thirty cities around the world to consider whether sustainability is rewarded by investors investors signal confidence in start ups when they infuse life extending investments into them this analysis also considers whether a more sustainable national context affects investor confidence and whether a sustainable firm within a sustainable national context gains more investor attention and investment results show that investors avoid sustainable firms particularly those that are environmentally sustainable moreover investors enjoy national contexts that are socially responsible but pay no attention to those that are environmentally conscious in addition firms that are sustainable in a sustainable national context are not better off for attracting investment insights for policy are that mainstream investors are attracted by national social policies but these investors are unlikely to be the main force behind sustainable venture growth under today s conditions

the dubious role of institutions in international business a road forward our commentary returns to the conundrum of how institutions matter in international business ib by revisiting the 2018 jibs decade award article by jackson and deeg 2008 on comparing capitalisms we first synthesize their main insights around institutional diversity and track its significant impact within ib and other management fields we then suggest three main takeaways that could move jackson and deeg s agenda further in terms of developing a more nuanced approach to institutions in ib we close with suggestions for future research and urge ib scholars to be more cautious when drawing on different strands of institutions theory

reactive power constrained opf scheduling with 2 d locational marginal pricing the objective of this paper is to suggest a robust optimal power flow opf framework to perform locational marginal pricing under the scarcity of reactive power the classical opf models employed for market clearing either assume infinite reactive power support or make a fully independent representation of the reactive power load in contrast a potentially more accurate power flow model is adopted in this paper recognizing the dependence of the level of reactive power consumption on the level of active power consumption the relationship is primarily modeled by employing the concept of power factor in addition there can be load requests with different power factors from the same location the corresponding locational marginal prices lmps are found to vary not only spatially but also according to power factors thus a two dimensional lmp variation is finally obtained a consistent definition of financial transmission rights is also provided and the associated lmp decomposition scheme is described the model proposed is studied on the ieee 30 bus system and its distinctive features are noted down and discussed

market based price differentials in zonal and lmp market designs the california iso is redesigning procedures for scheduling dispatch and congestion management which are critical to reliable nondiscriminatory transmission service the redesign implements security constrained unit commitment and locational marginal pricing to reflect actual costs of delivering energy using an accurate network model to price both congestion and losses caiso simulations of the market redesign are a unique opportunity to compare a estimated lmps if the redesign were in place during recent historical periods with b actual conditions as logged in operating records the study uses market schedules and bids in an alternating current optimal power flow simulation resulting lmps are similar within current congestion zones but price differences occur during high loads reflecting actual changes in system conditions the frequency and magnitude of lmp differences are consistent with the current market suggesting that the increased market transparency will produce stable predictable prices case studies demonstrate that optimization using scuc and sced coupled with the state estimator allows more appropriate responses to system conditions improved utilization of transmission capacity reduction in congestion costs and enhanced system reliability

corporate social responsibility in europe and the u s insights from businesses self presentations the paper compares the extent and content of businesses communications about corporate social responsibility csr in france the netherlands the u k and the u s in particular the study investigates the nature of csr principles processes and stakeholder issues discussed in web pages the results show that businesses in the four countries do not display the same eagerness to appear as socially responsible and employ diverse means to convey social responsibility images

firm characteristics and analyst following abstract this paper examines the major determinants of the number of analysts following a firm a simple model of analyst following is proposed and several firm characteristics are suggested that are likely to influence the extent of a firm s analyst following by either affecting the aggregate demand for or supply of analyst services or both for the firm almost all of these characteristics are found to be strongly significant in affecting the extent of analyst following of firms and the empirical results generally accord well with economic intuition

why do corporations give to charity this paper explores whether corporate contributions should be tax dedu ctible within the more general context of an examination of the profi t and utility maximization motives driving contributions the theoret ical section develops a formal structural model of the contributions process illustrates comparative statics and derives a set of empiri cally testable hypotheses using a new source of firm data the empir ical results indicate that profit maximization is an important motive driving contributions this finding supports the current tax deducti ble status of contributions up to a seldom encoun tered ceiling and favors a reform that allows firms to treat contributions as ordinary business expenses copyright 1988 by the university of chicago

explaining diversity in the worldwide diffusion of codes of good governance extending earlier literature on diffusion of codes of good governance cggs by integrating the effect of national culture this study offers a novel perspective on cross national diversity in the worldwide diffusion of corporate governance best practices we argue that particular cultural dimensions affect the indicators i e total number of codes per country and identity of issuing organizations of such diffusion for a sample of 67 countries our analysis reveals that individualist cultures have a stronger tendency to develop cggs in cultures with a high receptivity to power differences there is a higher probability that the first issuers are the government directors or professional associations whereas with low receptivity the stock exchange and investors groups of issuers are more likely to initiate the first code the effects of culture remain significant even after accounting for differences in legal systems and economic institutions indicating that national culture may serve as a comprehensive indicator of the regulatory stance with respect to good governance indeed the effect size is large enough to give pause e g to a location choice and possibly has relevance for strategic decision making by international companies

on ex post pricing in the real time electricity market this paper proposes a new framework in calculating the ex post prices for the spot electricity market the proposed method finds a set of prices that are as consistent as possible with the actual outputs of resources correctly following their dispatch instructions two alternative consistency metrics are proposed in the paper one measures the difference between the actual performance of an individual resource and its bid based profit maximizing response to the ex post prices in a perfectly competitive market another measures the difference between the ex post price and the price that supports the actual response of an individual resource compared to the existing approaches adopted in the real time electricity markets in the u s the proposed method solves the ex post energy and ancillary service prices directly and simultaneously it does not require heuristics that are hard to justify and has a much clear definition for the pricing problem than the existing approaches do moreover the proposed approach is flexible in the price control required by the market operators numerical examples are presented to further demonstrate the validity of this approach

the corporate social performance financial performance link strategic managers are consistently faced with the decision of how to allocate scarce corporate resources in an environment that is placing more and more pressures on them recent scholarship in strategic management suggests that many of these pressures come directly from sources associated with social issues in management rather than traditional arenas of strategic management using a greatly improved source of data on corporate social performance this paper reports the results of a rigorous study of the empirical linkages between financial and social performance corporate social performance csp is found to be positively associated with prior financial performance supporting the theory that slack resource availability and csp are positively related csp is also found to be positively associated with future financial performance supporting the theory that good management and csp are positively related 1997 by john wiley sons ltd