corporate sustainability toward a theoretical integration of catholic social teaching and the natural resource based view of the firm even though management scholars have offered several views on the process of corporate sustainability these efforts have focused mainly on the technical aspects of sustainability while omitting the fundamental role played by individual moral competences therefore previous work offers an incomplete and somewhat reductionist view of corporate sustainability in this article we develop a holistic framework of corporate sustainability in which both the moral and technical aspects of sustainability are considered we do so by integrating the ethical normative perspective of the catholic social teaching cst with the competitive view of the natural resource based view this framework highlights the importance of cst principles and ideas in developing executive moral competences such as moral sensitivity and awareness and moral cognition and motivation moral competences in turn influence the organizational selection of environmental strategies giving leaders the intrinsic motivation to promote both a longer term stance on corporate sustainability efforts and a relentless search for greener business models such strategies move the firm closer towards achieving environmental sustainability hence by bridging the individual normative ethical with the organizational implementational levels of corporate sustainability our framework provides a more realistic coherent and complete perspective on the complex process of achieving corporate sustainability

media exposure and internal migration evidence from indonesia abstract this paper investigates the impact of television on internal migration in indonesia we exploit the differential introduction of private television throughout the country and the variation in signal reception due to topography to estimate the causal effect of media exposure our estimates reveal important long and short run effects an increase of one standard deviation in the number of private tv channels received in the area of residence as an adolescent reduces future inter provincial migration by 1 7 2 7 percentage points and all migration inter and intra provincial by 3 9 6 8 percentage points short run effects are similar in magnitude we also show that respondents less exposed to private television are more likely to consider themselves among the poorest groups in society as we discuss in a stylized model of migration choice under imperfect information these findings are consistent with indonesian citizens over estimating the net gains from internal migration when access to television is limited

north south lending and endogenous domestic capital market inefficiencies abstract we develop an open economy model of intertemporal trade under asymmetric information capital market imperfections are endogenous and depend on a country s stage of economic development relative to the perfect information benchmark north south capital flows are dampened and possibly reversed and world interest rates are lower whereas riskless rates are equalized across borders the domestic loan rate is higher in poorer countries the model can be applied to a number of policy issues including the debt overhang problem the indexation of foreign public debts and the effect of income distribution on growth

from the marketplace to the dinner plate the economy theology and factory farming factory farming is big business since the products of factoryfarming are living breathing sentient creatures particular ethical issues are raised in a market system based on efficiency productivity costs of production and profit this paper focuses on the question of weather food animals in the american market system are subjected to unnecessary pain and suffering before they make it to our dinner plates the single most important consideration then is an exploration of the extent to which economic considerations render factory farming not only lucrative but also necessary under present market conditions the concern for unnecessary suffering moves the paper into an exploration of the extent to which the practices and effects of factory farming raise spiritual concerns which believers ought to address

how effective are capital controls a number of authors have recently argued that in order to avoid financial instability emerging countries should rely on capital controls two type of controls have been considered controls on capital outflows and controls on capital inflows in this paper i review the historical evidence on the effectiveness of these two type of controls i argue that controls on outflows have been ineffective they are circumvented and breed corruption i also analyze chile s recent experience with controls on inflows and i argue that their effectiveness has been exaggerated

income money ethic pay satisfaction commitment and unethical behavior is the love of money the root of evil for hong kong employees this study examines a model involving income the love of money pay satisfaction organizational commitment job changes and unethical behavior among 211 full time employees in hong kong china direct paths suggested that the love of money was related to unethical behavior but income money was not indirect paths showed that income was negatively related to the love of money that in turn was negatively related to pay satisfaction that in turn was negatively associated with unethical behavior pay satisfaction was positively related to organizational commitment thus the love of money is the root of evil but money is not

optimal financial instruments debt and equity are developed as optimal financial instruments in a model where cash flows and control rights are allocated to investors endogenously when investment decisions must be made by a single party the debtholder s cash flows are fixed in order to provide the equityholder with efficient incentives for investment ownership of control may be transferred to the debtholder to attenuate the impact of asymmetric information concerning the investment opportunity on the efficiency of the decision making since the classic article by modigliani and miller 1958 a great deal of attention has been focused on the problem of determining the optimal capital structure of the firm spanning taxes and or transaction cost agency cost and signalling arguments have been offered as explanations for why a firm s cash flows might be split between debt and equity claimants in a particular way here we address the more basic question of the optimal design of the securities that firms issue the majority of the existing literature takes the form of the allowable financial instruments as given in defense of this approach it may be noted that to a first approximation firms have used two standard financial instruments debt and equity we argue here however that the characterization of the standard instruments used in much of the literature has been incomplete and that the incentives of decision makers within the firm cannot be completely understood until the problem is addressed from a more basic level than is typically done by concentrating on the cash flow characteristics of these instruments the equally important issue of the way the standard instruments distribute the control rights of the firm has been ignored as a consequence the objectives in corporate decision making have been assumed rather than developed endogenously we consider the allocation of cash flows and the distribution of control rights to optimal financial instruments in a security design problem by considering the design of securities in this way we are able to consider the

on the effects of barriers to international investment a simple model is presented in which it is costly for domestic investors to hold foreign assets the implications of the model for the composition of optimal portfolios at home and abroad are derived it is shown that all foreign assets with a beta larger than some beta plot on either one of two security market lines some foreign assets with a beta smaller than are not held by domestic investors even if their expected return is increased slightly while it is obviously not true that asset markets are completely segmented between countries there is evidence of barriers to international investment although reality seems to lie in that grey area between complete segmentation and no segmentation at all most international asset pricing models are concerned with the extreme case of no barriers to international investment no effort seems to have been made to study the effect on portfolio choice of such barriers which make it costly to hold foreign securities as opposed to domestic securities but which do not in general render international diversification so onerous that investors avoid foreign securities completely casual empiricism suggests that models without barriers to international investment should be suspect those models cannot explain why it appears that in every country investors on average hold more domestic securities than would be required if they held the world market portfolio 2 this paper constructs a model of international asset pricing in which there is a cost associated with holding either long or short risky foreign securities for the sake of simplicity in most of the paper we assume that while domestic investors face barriers to international investment foreign investors face no such barriers it turns out that nothing significant is lost with such an assumption the main conclusions of this paper for the case in which foreign investors face no barriers to international investment are 1 in the presence of barriers to international investment some risky foreign

compositional effects of capital controls theory and evidence this paper examines the effects of capital controls on the composition of inter national capital flows paying particular attention to debt inflows versus equity inflows a two period small open economy model with stochastic second period output and asymmetric information between domestic agents and international financiers is utilised to generate predictions regarding the effects of capital controls on the relative use of debt versus equity for financing first period investment these capital control implications are then investigated with quarterly frequency panel data for latin america capital controls are found to significantly affect the composition of the capital account

a resource based perspective on corporate environmental performance and profitability drawing on the resource based view of the firm we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship with the returns to environmental performance higher in high growth industries we tested these hypotheses with an analysis of 243 finns over two years using independently developed environmental ratings results indicate that it pays to be green and that this relationship strengthens with industry growth we conclude by highlighting the study s academic and managerial implications making special reference to the social issues in management literature

capital account liberalization what do cross country studies tell us capital account liberalization it is fair to say remains one of the most controversial and least understood policies of our day one reason is that different theoretical perspectives have very different implications for the desirability of liberalizing capital flows another is that empirical analysis has failed to yield conclusive results the answer another influential strand of thought contends is that this efficient markets paradigm is fundamentally misleading when applied to capital flows limits on capital movements are a distortion it is an implication of the theory of the second best that removing one distortion need not be welfare enhancing when other distortions are present

legal vs normative csr differential impact on analyst dispersion stock return volatility cost of capital and firm value this study examines how the sell side analysts interpret firms corporate social responsibility csr activities specifically we examine the differential impact of overall legal and normative csr on the analysts earnings forecast dispersion stock return volatility cost of equity capital and firm value employing a sample of u s public firms during 1993 2009 we find that overall csr intensities reduce analyst dispersion of earnings forecast volatility of stock return and cost of capital coc and increase firm value however its impact is reduced for firms with better accounting and disclosure quality when we disaggregate csr into legal and normative csr we find that legal normative csr decreases increases analysts dispersion stock return volatility and coc while legal normative csr increases decreases firm value the sell side analysts tend to have less greater information asymmetry regarding the net benefits of pursuing csr that is not required by laws we find however that the benefit of having normative csr realized in 1 year lag such that analyst dispersion stock return volatility coc decrease respectively and firm value increases furthermore we find that the benefit of normative csr is offset for firms with higher accounting and disclosure quality

financial crises in asia and latin america then and now in this paper we analyze the extent to which past financial crises share common characteristics in latin america asia europe and the middle east we examine the recent crises in asia and in latin america in particular their severity to assess whether the considerable historical differences that we have documented for the earlier sample have eroded we conclude that in a deregulated world the well behaved asian financia1 crises are a relic of the past

migration and asymmetric information comment a comment on an article by viem kwok and hayne leland concerning the relationship between asymmetric information and the brain drain of skilled labor from developing countries is presented a reply by kwok and leland p 535 is also included annotation

international migration under asymmetric information international migration under asymmetric information usually differs from international migration under symmetric information and often quite dramatically so and in counterintuitive ways since in real life information is indeed asymmetric it is somewhat surprising that hitherto the study of international migration has by and large proceeded without explicit recognition of the effect of informational asymmetry in this paper we show that when at the lowest skill level migration is desirable i e if the discounted wage differential is positive for the lowest skill level the introduction of asymmetric information results in a reduction of the quality and quantity of international migration or has no effect at all when at the lowest skill level migration is not desirable the discounted differential is not positive at the lowest skill level the introduction of asymmetric information may either result in migration by all or none when under asymmetric information workers can at some cost to themselves report to foreign employers their individual skill thus dissociate themselves from the group effect then provided the cost is small either a u pattern of migration with respect to skill level emerges or migration is uniformly pursued by all though some do and some do not invest in signalling when the source consists of more than 1 poor country it is impossible to predict migration under asymmetric information from a given country without explicitly accounting for changes in the parameters of the other for example a favorable change encouraging less migration taking place in 1 country will through a distinct impact on the overall composition of migration reduce migration from the other country finally allowing employers to discover after a while the true productivity of individual migrant workers we obtain the somewhat surprising result that under a reasonable set of assumptions eventual discovery may increase the quantity and quality of migration and also increase the wage enjoyed by the low quality migrants eventual discovery serves to mitigate the impact of group averaging that deters migration by the high skill workers due to migration of some such workers the prediscovery wage of the low skill workers arises in our case sufficiently to outweigh the effect of the future wage decline due to discovery authors

debt taxes and international equilibrium abstract this paper employs an extended miller model to analyze capital structure decisions of individual firms in a two country setting miller equilibria are generally not consistent with an international equilibrium if the tax subsidy of debt differs across countries the most obvious reason for differential tax subsidies is differences between national corporate tax rates we also identify differential tax subsidies of debt if inflation rates differ across countries for both cases we examine the adjustment process from national equilibria to an international equilibrium without and with barriers to international investment we derive the relationship between the equilibrium yields on debt and equity in the two countries and discuss the fisher hypothesis that real returns do not depend upon inflation in a two country miller world

temporary controls on capital inflows abstract during the past decade a number of countries imposed capital controls that had two distinguishing features they were asymmetric in that they were designed principally to discourage capital inflows and they were temporary this paper studies formally the consequences of these policies calibrates their potential effectiveness and assesses their welfare implications in an environment in which the level of capital inflows can be sub optimal in addition motivated by the fact that these types of controls have often been left in place after the dissipation of the shock that lead to the controls being implemented the paper evaluates the welfare cost of procrastination in removing these types of controls

profit and more catholic social teaching and the purpose of the firm the empirical findings in collins and porras study of visionary companies built to last and the normative claims about the purpose of the business firm in centesimus annus are found to be complementary in understanding the purpose of the business firm a summary of the methodology and findings of built to lastand a short overview of catholic social teaching are provided it is shown that centesimus annus claim that the purpose of the firm is broader than just profit is consistent with collins and porras empirical finding that firms which set a broader objective tend to be more successful than those which pursue only the maximization of profits it is noted however that a related finding in collins and porras namely that the content of the firm s objective is not as important as internalizing some objective beyond just profit maximization can lead to ethical myopia two examples are provided of this the walt disney company and philip morris centesimus annus offers a way to expose such myopia by providing guidance as to what the purpose of the firm is and therefore as to what kinds of objectives are appropriate to the firm

an assessment of the association between renewable energy utilization and firm financial performance contemporary research highlights multiple societal and environmental benefits in addition to potential economic advantages associated with renewable energy re utilization as federal and state incentives for investments in re technologies become more prevalent re sources represent increasingly viable alternatives to established fossil fuel energy re utilization is recognized as a key component of green product innovation that helps firms reduce the environmental impact of production processes and diminish their ecological footprints and energy consumption yet despite consistent evidence that corporate sustainability initiatives are favorably associated with firm performance the limited research that examines associations between re initiatives and firm performance yields mixed results and an explicit link has yet to be established drawing on the natural resource based view of the firm we examine the association between re utilization and firm financial performance over time annual roi tobin s q and operating margin for large u s firms identified as exceptional users of re in the epa s fortune 500 top green power partners list are compared with their respective industry medians over a 7 year period 2007 2013 and post hoc bootstrapping and sensitivity analyses are performed to further validate the study findings our research advances current knowledge about the influence of re utilization by demonstrating that top re user firms consistently generated superior financial performance compared to their industry competitors as such the study findings lend credence to the existence of a business case that complements the societal and environmental benefits of re utilization

international migration imperfect information and brain drain we consider a model of international migration where skills of workers are imperfectly observed by firms in the host country and where information asymmetries are more severe for immigrants than f

capital controls re examined the case for smart controls the global financial crisis which began in east asia in 1997 is not over neither is the inquest into its implications for adjustment policy in the wake of this crisis we focus here on the role of capital controls which formed a much publicised part of the crisis coping strategy in one country malaysia and less openly were also deployed by other crisis afflicted countries evaluation so far has examined different target variables with different estimation methods generally concentrating on efficiency and stability indicators and ignoring equity measures it has also typically treated control as a one zero dummy variable ignoring the quality of intervention and in particular the extent to which efficiency gains are obtained in exchange for controls partly because of these limitations the literature has reached no consensus on the impact of controls nor therefore about where they fit within the set of post crisis defence mechanisms we propose an approach in which the government plays off short term political security against long term economic gain the more insecure its political footing the greater the weight it gives to political survival which is likely to increase the probability of controls being imposed the modelling of this approach generates a governmental policy reaction function and an impact function for controls which are estimated by simultaneous panel data methods across a sample of thirty developing and transitional countries between 1980 2003 using for the period since 1996 the new imf dataset which differentiates between controls by type we find that controls appear to cause increases in income equality and are significantly associated with political insecurity and relatively low levels of openness to trade they do not in our analysis materially influence the level of whole economy productivity or gdp across the sample of countries examined although they do influence productivity in particular sectors in particular manufacturing but the dispersion around this central finding is wide the tendency for controls to depress productivity by encouraging rent seeking sometimes is and sometimes is not counteracted by purposive government policy actions to maintain competitiveness whether or not this happens whether as we put it controls are smart and the manner in which they are smartened is vital on both efficiency and equity grounds we devise a formula for and make the case for capital controls which are time limited and contain an inbuilt incentive to increased productivity as a means of improving the sustainability and equity of the adjustment process whilst keeping to a minimum the cost in terms of productive efficiency

collaborative enterprise and sustainability the case of slow food the current and prevailing paradigm of intensive agricultural production is a straightforward example of the mainstream way of doing business mainstream enterprises are based on a negativistic view of human nature that leads to counter productive and unsustainable behaviours producing negative impact for society and the natural environment if we want to change the course then different players are needed which can flourish thanks to their capacity to serve others and creating values for all the participants in the network in which they are embedded in the article through the analysis of the slow food movement and the use of recent theoretical and empirical contributions in behavioural sciences and psychology we support the collaborative enterprise model as an alternative to the still prevailing mainstream business models evidence shows that caring and responsible efforts of economic agents are acknowledged and reciprocated even in highly competitive markets

international labour migration under alternative informational regimes a diagrammatic analysis abstract international migration under asymmetric information usually diners from international migration under symmetric information in this paper we show that when at the lowest skill level migration is desirable the introduction of asymmetric information results in a reduction of the quality and quantity of international migration or has no effect at all when at the lowest skill level migration is not desirable the introduction of asymmetric information may either result in migration by all or by none allowing employers to discover after a while the true productivity of individual migrant workers we obtain the somewhat surprising result that under a reasonable set of assumptions eventual discovery may increase the quantity and quality of migration and also increase the wage enjoyed by the low quality migrants

institutional emergence in an era of globalization the rise of transnational private regulation of labor and environmental conditions1 why have systems of transnational private regulation recently emerged to certify corporate social and environmental performance different conceptions of institutional emergence underlie different answers to this question many scholars argue that firms create certification systems to solve problems in the market a view rooted in a conception of institutions as solutions to collective action problems the author develops a different account by viewing institutions as the outcome of political contestation and by analyzing conflict and institutional entrepreneurship among a wide array of actors using a comparative case study design the analysis shows how these arguments explain the formation of social and environmental certification associations both theoretical approaches are needed but strong versions of the market based approach overlook an important set of dynamics that the author calls the political construction of market institutions the analysis shows how both problem solving in markets and

economy of mutuality merging financial and social sustainability the article posits the concept of economy of mutuality as an intellectual mediation space for shifts in emphasis between market and social structures within economic theory and practice economy of mutuality it is contended provides an alternative frame of reference to the dichotomy of market economy and social economy for inquiry about what business is for and what values it presupposes and creates the article centers around the objective of gaining a broadened understanding of business so as to include not just market economy but social enterprise and social economy in pursuit of this objective a range of various archetypes of business enterprise are considered in light of higher ends of economic life the highest telos of business encompassing all such archetypes it is argued is founded on reciprocity and integral human development the article concludes that compared to market economy per se economy of mutuality provides a better conceptual framework for business in undertaking the challenges of sustainability

beyond does it pay to be green a meta analysis of moderators of the cep cfp relationship review of extant research on the corporate environmental performance cep and corporate financial performance cfp link generally demonstrates a positive relationship however some arguments and empirical results have demonstrated otherwise as a result researchers have called for a contingency approach to this research stream which moves beyond the basic question does it pay to be green and instead asks when does it pay to be green in answering this call we provide a meta analytic review of cep cfp literature in which we identify potential moderators to the cep cfp relationship including environmental performance type e g reactive vs proactive performance firm characteristics e g large vs small firms and methodological issues e g self report measures by analyzing these contingencies this study attempts to provide a basis on which to draw conclusions regarding some inconsistencies and debates in the cep cfp research some of the results of the moderator analysis suggest that small firms benefit from environmental performance as much or more than large firms us firms seem to benefit more than international counterparts and environmental performance seems to have the strongest influence on market measures of financial performance

an economic model of the brain drain asymmetric information in the labor market is discussed as a major cause of the exodus of foreign trained students from developing countries the authors suggest that employers in the country in which the students have been trained have a more accurate judgment of the true productivity of students than have employers in the students native country an illustrative numerical model is developed and its implications are analyzed annotation

controls on capital inflows do they work abstract this paper analyzes the effectiveness of controls on capital inflows in particular we analyze in great detail the chilean experience with the use of the unremunerated reserve requirement we examine the effects of the controls applied in chile in 1991 1998 on interest rates real exchange rate and the volume and composition of capital inflows the effects are elusive and it is difficult to pin down long run effects although after the unremunerated reserve requirement was introduced there was an increase in the interest rate differential the econometric evidence does not show it has a significant long run effect also we detect very small effects on the real exchange rate however the more persistent and significant effect is on the composition of capital inflows tilting composition toward longer maturity

labor mobility under asymmetric information with moving and signalling costs abstract information about the true skill level of individual workers may not flow freely across labor markets or between firms and though available to the workers themselves may not be equally available to some employers consequently the level and composition of labor mobility is affected in this paper we derive some results concerning the impact of moving costs in conjunction with informational asymmetry upon the level of labor mobility the skill level of those who move and the effect upon both these variables of costly signalling