social influence and mne strategic response to political risk a global network approach abstract according to the conventional view of mne host country relations mnes faced with political risk condition their strategic responses on each party s relative power positions or bargaining influence drawing insight from network theory institutional theory and international relations research i argue that firm sensitivity to political risk is contingent upon a complementary concept social influence social influence arises through the mutual embeddedness of mne and host government in a complex global network of nations to test my hypotheses i construct a global network of trade relations that i combine with a unique transaction level dataset from the global petroleum industry my results demonstrate that social influence as modeled by home host structural equivalence moderates the effects of political risk further my findings provide support for a conceptual and empirical distinction between social influence and the traditional bargaining influence examined in the literature

foreign direct investment mode choice entry and establishment modes in transition economies in this study we bridge two streams of foreign direct investment literature specifically studies on establishment mode choice i e the choice between an acquisition and a greenfield establishment and studies on entry mode choice i e the choice between a wholly owned outlet and a subsidiary with shared ownership we arrive at a conceptual synthesis for an examination of the effects of the same predictors on the dual entry establishment mode choice made in the context of a single foreign investment we demonstrate that a parent firm s technological intensity international strategy and experience determine both establishment and entry mode choices moreover we apply williamson s new institutional economics to investigate the influence of institution building on multinational enterprises dual investment choice in the context of transition economies we test empirically the possible moderating effect of a host country s institutional environment we conclude that the degree of the host country s institutional advancement moderates the effect of both technological intensity and international strategy on the establishment and entry mode choice

balancing exploration and exploitation in alliance formation do firms balance exploration and exploitation in their alliance formation decisions and if so why and how we argue that absorptive capacity and organizational inertia impose conflicting pressure

eco thermodynamics economics and the second law the laws of physics especially the first and second laws of thermodynamics have significant implications for economic theory the major implications of the first law conservation of mass energy are straightforward and have been discussed at length elsewhere in brief raw material inputs to economic processes are not consumed having been extracted from the environment in the first place they eventually return to the environment as wastes the economic implications of the second law entropy law are far more subtle there is considerable literature initiated by the work of georgescu roegen on the supposed constraints on economic growth imposed by the fact that economic processes utilize low entropy raw materials fossil fuels and high grade metal ores and discard high entropy wastes however as a practical matter the flux of available low entropy energy exergy from the sun is extremely large and certainly adequate to sustain economic activity in the solar system indefinitely even though fossil fuel and metal ore stocks may eventually be exhausted it is argued in this paper that the real economic significance of the second law lies in the fact that exergy is i not conserved and ii is a useful common measure of resource quality as well as quantity applicable to both materials and energy thus exergy can be used to measure and compare resource inputs and outputs including wastes and losses this is potentially important in itself moreover since exergy is not conserved it is truly consumed i e used up in economic processes hence exergy is no less a factor of production than labor or capital this fact has strong implications for economic growth theory especially with regard to assessing the role of technical progress

burr under the saddle how media coverage influences strategic change in this paper we introduce a new antecedent to the strategic change literature by examining the effect of media coverage on the extent of strategic change specifically we examine how negative media coverage may prompt firms to make changes to their resource allocations and then explore how the makeup of the board and firm performance can moderate this relationship we develop a theoretical framework to explain why media coverage may affect strategic change and then test our theory with a longitudinal analysis of 250 firms over a four year period the empirical results lend support to our theory of media influence on strategic change and suggest that the evaluations of firms by outside constituents may influence the decision making of executives

a managerial decision model of international cooperative venture formation this paper develops a model of international cooperative venture formation that is centered on the decisionmaking process of mne executives central issues for managerial decisions are developed from the organizational studies literature a framework delineating the sequence and criteria used in the decision to form international cooperative ventures is developed from these defined issues and from existing models propositions pertaining to the venture formation decision process are outlined

empirical evidence on the relation between stock option compensation and risk taking abstract we examine whether executive stock options esos provide managers with incentives to invest in risky projects for a sample of oil and gas producers we examine whether the coefficient of variation of future cash flows from exploration activity our proxy for exploration risk increases with the sensitivity of the value of the ceo s options to stock return volatility eso risk incentives both eso risk incentives and exploration risk are treated as endogenous variables by adopting a simultaneous equations approach we find evidence that eso risk incentives has a positive relation with future exploration risk taking additional tests indicate that eso risk incentives exhibits a negative relation with oil price hedging in a system of equations where eso risk incentives and hedging are allowed to be endogenously determined overall our results are consistent with esos providing managers with incentives to mitigate risk related incentive problems

are green hopes too rosy employment and welfare impacts of renewable energy promotion in view of pressing unemployment problems policy makers across all parties jump on the prospects of renewable energy promotion as a job creation engine which can boost economic well being our analytical model shows that initial labor market rigidities in theory provide some scope for such a double dividend however the practical outcome of renewable energy promotion might be sobering our computable general equilibrium analysis of subsidized electricity production from renewable energy sources res e in germany suggests that the prospects for employment and welfare gains are quite limited and hinge crucially on the level of the subsidy rate and the financing mechanism if res e subsidies are financed by labor taxes welfare and employment effects are strictly negative for a broad range of subsidy rates the use of an electricity tax to fund res e subsidies generates minor benefits for small subsidy rates but these benefits quickly turn into significant losses as the subsidy rate exceeds some threshold value

useful exergy is key in obtaining plausible aggregate production functions and recognizing the role of energy in economic growth portugal 1960 2009 abstract the role of energy in economic growth is controversial models based on aggregate production functions apf range from the neoclassical which downplay energy due to a cost share theorem but typically rely on exogenous total factor productivity tfp to the ecological economic which acknowledge energy s importance the validity of the apf concept itself is questioned here we apply cointegration analysis to identify apfs between output capital labor and possibly energy measured as primary energy or useful exergy we test for tfp growth by including a time trend we require that plausible apfs verify cointegration non negative output elasticities and granger causality linking inputs to output our method recognizes cases where a plausible apfs do not exist thereby addressing the apf critique b energy impacts growth directly c energy impacts growth indirectly through capital and labor we apply the method to portugal 1960 2009 considering standard and quality adjusted capital labor measures with a time trend or disregarding energy plausible apfs are never found without a trend plausible apfs are found only when considering capital energy labor combinations within these with quality adjusted capital and labor and useful exergy results are consistent with the cost share theorem but energy plays a central role through a constraint on all factors of production

risks of corporate entrepreneurship autonomy and agency issues although research on corporate entrepreneurship ce has attracted increasing attention risks of ce are not well examined in this paper we examine direct and indirect agency risks associated with providing middle and operational managers with autonomy in the hopes of encouraging ce the key ideas behind our discussion involve two dilemmas of ce 1 to solve the risk averseness problem of middle and operational managers and unleash their entrepreneurial ideas top management needs to encourage autonomous behaviors which can also exacerbate a different type of agency problem opportunistic behaviors 2 although the generation of new ideas to explore new strategic directions and or opportunities is important the very newness of the ideas make them difficult to evaluate and thus the selection process may be perceived as unfair by some managers we propose that a stock options b passive monitoring and c perceived procedural justice would attenuate the negative side effects associated with ce such as opportunistic behaviors and perceived unfairness although research in ce often stresses autonomy of middle and operational managers for new idea generation as important examining the whole process in terms of idea generation selection and implementation with respect to potential risks will extend the ce literature

evaluating relative benefits of different types of r d for clean energy technologies clean energy technologies that cost more than fossil fuel technologies require support through research and development r d learning by doing relates historical cost decreases to accumulation of experience a learning investment is the amount of subsidy that is required to reach cost parity between a new technology and a conventional technology we use learning investments to compare the relative impacts of two stylized types of r d we define curve following r d to be r d that lowers costs by producing knowledge that would have otherwise been gained through learning by doing we define curve shifting r d to be r d that lowers costs by producing innovations that would not have occurred through learning by doing we show that if an equal investment in curve following or curve shifting r d would produce the same reduction in cost the curve shifting r d would be more effective at reducing the learning investment needed to make the technology competitive the relative benefit of curve shifting over curve following r d is greater with a high starting cost and low learning rate our analysis suggests that other things equal investments in curve shifting r d have large benefits relative to curve following r d in setting research policy governments should consider the greater benefits of cost reductions brought about by transformational rather than incremental change

useful work and information as drivers of economic growth abstract a semi empirical endogenous growth theory was proposed by the authors in 2005 it is based on a model of the economy as a two stage materials energy processing system growth is simulated by a two parameter production function with two traditional factors labor and capital and a non traditional factor namely useful work the non traditional factor is calculated from primary energy inputs multiplied by an empirically estimated average energy conversion efficiency which is a function of changing technology over time this model explains past us growth from 1900 through 1973 74 with satisfactory accuracy but it slightly underestimates subsequent growth i e it leaves a small unexplained but increasing residual for the period after 1975 however by subdividing capital stock into traditional and ict components we are able to extend the theory to explain us economic growth accurately in this paper we also extend the results to japan the revised production function has only three independent parameters the new model also has implications for future economic growth energy and environmental policy that differ significantly from the traditional growth theory these implications are discussed briefly

does corporate r d investment affect firm environmental performance evidence from g 6 countries the rate of climate change due to global warming has become a substantial concern and appeared as a real world phenomenon in the recent years however it is imperative to know how business enterprises alter such concern recent studies involve a variety of firm level factors to create a robust link between business enterprises environmental and financial performance however little is known regarding the role of research and development r d investment on firms environmental performance using a firm level data for the period 2004 2016 from g 6 countries this study empirically investigates how r d investment affects the firm environmental performance measured by energy and carbon emissions intensities we find that r d investment improves the firm s environmental performance consistent with the theoretical argument of natural resource based view nrbv our findings are robust to alternative econometric specifications alternative variable specifications and sub samples our findings offer novel insights to the policymakers business managers and regulators

the hazards of expert control chief risk officers and risky derivatives at the turn of the century regulators introduced policies to control bank risk taking many banks appointed chief risk officers cros yet bank holdings of new complex and untested financial derivatives subsequently soared why did banks expand use of new derivatives we suggest that cros encouraged the rise of new derivatives in two ways first we build on institutional arguments about the expert construction of compliance suggesting that risk experts arrived with an agenda of maximizing risk adjusted returns which led them to favor the derivatives second we build on moral licensing arguments to suggest that bank appointment of cros induced organizational licensing leading trading desk managers to reduce policing of their own risky behavior we further argue that ceos and fund managers bolstered or restrained derivatives use depending on their financial interests we predict that ceos favored new derivatives when their compensation rewarded risk taking but that both ceos and fund managers op

the effects of endowment and loss aversion in managerial stock option valuation assuming a positive influence of stock price volatility on stock option value incentive alignment proponents argue that stock option compensation encourages managerial risk seeking and thus aligns managers and shareholders risk preferences our findings show that stock option holders overvalue unexercisable options relative to options being offered and to normative e g black scholes valuations further the influence of stock price volatility on holders subjective valuations depends on stock price trend in sum results suggest that during stock option valuation managers draw on heuristics that financial options theory and models fail to capture we discuss implications for compensation design and research

a quantitative analysis of chinese industrial structure and technological change production functions for aggregate industry sectoral industries and small scale industry in this study we estimate the chinese aggregate sectoral and small scale industrial production functions based of three models the ces 1 ces 2 and cobb douglas production functions testing the estimated results we find that the cobb douglas production function is the appropriate functional form for underlying chinese industrial struture the study indicates some serious structural and technological problems such as decreasing returns to scale unitary substitution between labour and capital slow technical progress and low economic efficienty the findings suggest that an intensive industrial development policy should be pursued in china

collaboration in the boardroom behavioral and performance consequences of ceo board social ties empirical research has typically rested on the assumption that board independence from management enhances board effectiveness in administering firms the present study shows how and when a lack of social independence can increase board involvement and firm performance by raising the frequency of advice and counsel interactions between ceos and outside directors hypotheses were tested with original survey data from 243 ceos and 564 outside directors on behavioral processes and dynamics in management board relationships

government policies market imperfections and foreign direct investment the internalization eclectic theory of foreign direct investment includes the important insight that government policies create market imperfections which make foreign direct investment an economically rational strategic alternative for firms this paper reexamines the effects of government policies on market imperfections and foreign direct investment fdi it broadens and refines the analysis of the impact of government policies by developing the following arguments 1 there is a wide range of government policies that affect firms fdi decisions via their effects on market imperfections 2 there are numerous dimensions of variability in government policies that need to be identified in order to understand fully the effects of government policies on market imperfections and hence fdi flows 3 some of the effects of government policies on market imperfections and fdi are the opposite of those previously noted in the fdi literature 4 the effects of government policies vary across the several individual components of fdi flows the paper thus examines the following variables and relationships more extensively and precisely than has the previous literature government policy variables as causal factors affecting fdi market imperfection variables as intervening factors in the causal connections between government policies and fdi and the multiple indicators of the various dimensions of fdi as dependent variables

a novel approach for analyzing the effectiveness of the r d capital for resource conservation comparative study on germany and uk electricity sectors abstract limited access to energy resources and increasing demand for mitigation of the environmental impacts have necessitated higher production efficiencies therefore the promotion of r d activities has been one of the main parts of national energy policies in this research work two methods are used for assessing the effectiveness of the r d capital on resource conservation first by developing the resource included knowledge production function of the energy sector and second through direct assessment of the functionality of resource productivity from r d capital based on official data provided by national statistical centers a comparative analysis has been conducted to examine the effectiveness of r d in the electricity generation sectors in the united kingdom and germany in these analyses non renewable exergy cost is used as an index of resource depletion and environmental burden it is shown that due to non economic energy transition policies the inclusion of the r d investment does not result in statistically meaningful elasticity of production for the r d capital however according to the second method it is shown that the r d investment in the united kingdom has been more effective in resource conservation than in germany possible reasons for such differences are discussed and recommendations for further investigations are presented

partner selection and venturing success the case of joint ventures with firms in the people s republic of china it has been hypothesized in the international joint venture ijv literature that partner selection affects interpartner fit which in turn influences a synergistic effect on ijv performance this study investigates the relationship between ijv success and the strategic and organizational traits of local partners we address this issue in the context of an emerging economy p r china newly emerging economies have in recent years become major hosts of direct investment by multinational corporations mncs because these rapidly expanding economies characterized by an exploding demand previously stifled by ideologically based government intervention provide tremendous opportunities which mncs can preempt mncs in such economies however face the challenges of structural reform weak market structure poorly specified property rights and institutional uncertainty right local partners can help mncs boost market expansion obtain insightful information mitigate operational risks and provide country specific knowledge the analysis of the data obtained from china suggests that both strategic and organizational traits of local partners are significantly associated with some individual dimensions of ijv performance among strategic traits absorptive capacity product relatedness and market power are favorable to ijvs market and financial outcomes market power and experience significantly reduce ijvs operational uncertainties of organizational traits international experience and organizational collaboration are important for ijvs not only profitability and stability but also local market expansion and export growth organizational form and size influence ijvs local market performance the findings provided by this study can help mncs determine what criteria they should use in opting for local partners and what criteria are vital to their goal accomplishment those investors seeking local market expansion should select those local partners that have rich market experience superior market position high absorptive capacity and related product diversification with the ijvs those seeking profitability and stability should select local firms that have superior international experience longer organizational collaboration and greater market power while mncs should use appropriate strategic and organizational criteria to select local partners the host government or local firms can try to make these traits available to attract more stable and profitable foreign direct investment

domestic alliance network to attract foreign partners evidence from international joint ventures in china partner selection is a critical issue in building international joint ventures ijvs we argue that foreign firms are more likely to select local firms with unique network structural advantages within a local alliance network we frame structural advantages as two network position traits centrality and brokerage specifically network centrality acts as a stronger network trait than brokerage in attracting foreign ijv partners however such a relationship may be moderated by foreign firms local experience and perceived capabilities we contend that when foreign firms have a high level of local market experience and perceived capabilities they may prefer a local broker over a centrally located local firm data on the domestic alliance network in china s electronics and information technology it industries largely support our hypotheses we conclude that as foreign investors become strategic insiders they may not only seek a local partner s capability attributes but also more critically pay attention to a local partner s domestic network

agency models in different stages of ceo tenure the effects of stock options and board independence on r d investment this study examines how r d investment is shaped by governance devices combining the two agency models of limited competence and managerial opportunism it suggests that governance devices exert differing effects in early vs later stages of ceo tenure early in ceo tenure r d investment is reduced by stock options and board independence whereas in later stages these effects reverse r d investment is enhanced by stock options and board independence an empirical test on a sample of u s companies provides support for the hypothesized effects for policy makers this study implies that r d investment can be enhanced by setting rules and standards of good governance that take into account ceo time in office and firm context

strategic determinants of partner selection criteria in international joint ventures prior studies are vague regarding determinants of criteria for selecting complementary partners for international joint ventures ijvs this paper first distinguishes task and partner related dimensions of selection criteria the paper then argues that relative importance of task related selection criteria is determined by the strategic context of the proposed ijv and the parent firm specifically the critical success factors of the venture s competitive environment and the parent s static and dynamic position vis a vis these factors

informal institutions and absorptive capacity a cross country meta analytic study the informal institutions construct has not been well understood in prior research we contribute to the informal institutions literature by developing a generalized two by two conceptualization of institutions that juxtapose the dimension of behavioral uncertainty versus environmental uncertainty and the dimension of informal institutions versus formal institutions in particular we theorize informal institutions based on the extent to which they reduce behavioral uncertainty or environmental uncertainty as well as their alignment with the formal institutional environment with respect to the two types of uncertainty leveraging this fourfold typology we shed new light on the importance of informal institutional conditions in theories of firms absorptive capacity and performance using a cross country meta analytical approach we find that a firm s absorptive capacity is more positively related to performance outcomes in countries with informal institutions that reduce behavioral uncertainty and environmental uncertainty furthermore the misalignment between informal and formal institutions with respect to behavioral uncertainty and environmental uncertainty weakens the relationship between absorptive capacity and performance outcomes overall by re emphasizing the fundamental role of informal institutions in reducing behavioral and environmental uncertainties our typology offers a fine grained perspective to conceptualize informal institutions and constitutes an opportunity to advance theory in informal institutions and international business

host country policies and mne management control in ijvs evidence from china in international joint ventures ijvs partner firms exert three types of management control output process and social since management control critically influences ijv success it is essential to understand what factors drive the development of the control system prior studies have focused mainly on ijvs internal conditions and have largely neglected external institutional influences on ijv control in this study we explore how host country policies affect mne partners control over their ijvs using a sample of ijvs in china we find that mne partners tend to exercise less output and process control when minority equity restriction is present greater process control when they receive government incentives and less social control when they are required to partner with state owned enterprises in contrast the results of a post hoc analysis show that local partners control activities are not significantly influenced by these policies our findings provide new insights into ijv management by demonstrating the impacts of regulatory institutions on partners control activities

performance and survival of joint ventures with non conventional ownership structures the international joint venture jv literature has focused on two parent jvs formed between one foreign and one local firm yet other types of jvs exist this paper identifies four distinct forms of jvs based on the jv partners nationality and equity affiliation these are i jvs that are formed between affiliated home country based firms ii jvs that are formed between unaffiliated home country based firmsl iii jvs that are formed between home country based and local firms and iv jvs that are formed between home country and third country based firms our analysis of 737 japanese jvs in asia demonstrates that the conventionally assumed form of jv represented only 30 percent of the total further each of the four jv forms significantly differed in terms of incidence performance and survival likelihood

learning to compete in a transition economy experience environment and performance does organizational learning as measured by experience in a host country affect international expansion performance if so does such a relationship between experience and performance hold over time how do the environmental forces in the host country affect such a relationship focusing on organizational learning by multinational enterprises mnes operating in a transition economy this study answers these three critical questions by exploring the relationships among experience environment and performance at the subsidiary level based on a recent survey of 108 mne subunits operating in china we find that the intensity and diversity of host country experience is an important predictor of subunit performance while the positive effect of the intensity of experience on performance diminishes over time the impact of the diversity of experience on performance remains unchanged moreover for mnes experiencing greater environmental dynamism complexity and hostility there is a stronger positive relationship between experience and performance

elasticity of substitution technical progress and returns to scale in branches of soviet industry a new ces production function approach this study introduces and tests a new ces production function approach using data from five major branches of the soviet industrial sector the estimated equations obtained suggest that the cobb douglas production function is the appropriate production function for all branches under consideration except food processing

economic effects of renewable energy expansion a model based analysis for germany abstract the increasing utilization of renewable energy sources res is a major energy policy strategy in many countries worldwide germany is a forerunner in the deployment of res and has ambitious goals for the future the support and use of renewables affects the economy it creates business opportunities in sectors producing renewable energy facilities but comes with costs related to supporting its deployment this paper analyses and quantifies the net balance of economic effects associated with renewable energy deployment in germany until 2030 to this end we use a novel model the sectoral energy economic econometric model this is an econometric multi country model which for germany contains a detailed representation of industries including 14 renewable energy technology sectors our results show that renewable energy expansion can be achieved without compromising growth or employment the analysis reveals a positive net effect on economic growth in germany net employment effects are small but also positive their size depends strongly on labour market conditions and policies results at the industry level indicate the size and direction of the need for restructuring across the sectors of the germany economy

the economic growth enigma capital labour and useful energy abstract we show that the application of flexible semi parametric statistical techniques enables significant improvements in model fitting of macroeconomic models as applied to the explanation of the past economic growth since 1900 in us uk and japan the new results demonstrate quite conclusively the non linear relationships between capital labour and useful energy with economic growth they also indicate that output elasticities of capital labour and useful energy are extremely variable over time we suggest that these results confirm the economic intuition that growth since the industrial revolution has been driven largely by declining energy costs due to the discovery and exploitation of relatively inexpensive fossil fuel resources implications for the 21st century which are also discussed briefly by exploring the implications of an aceges based scenario of oil production are as follows a the provision of adequate and affordable quantities of useful energy as a pre condition for economic growth and b the design of energy systems as technology incubators for a prosperous 21st century

executive stock options as mixed gambles revisiting the behavioral agency model conceiving of stock options as providing ceos with cues for the possibility of both greater prospective wealth and losses to current wealth we revisit predictions of the behavioral effects of equity based pay using the behavioral agency model bam we refine the bam s original formulation and provide an explanation for previous conflicting empirical results by theorizing that the anticipation of prospective wealth attenuates the negative effect of accumulated current equity wealth upon ceo strategic risk taking in doing so we offer an advancement of the dialectic between 1 classical agency scholars arguing that equity based pay leads to more risk taking and 2 behavioral scholars arguing that equity wealth creates risk bearing leading to less risk taking we also suggest that the influences of prospective wealth and current wealth on strategic risk taking depend on the extent to which agents can manage the risk inherent in their compensation package and agent vulnerability to losses formal hypotheses to test these expectations are made by focusing on equity based compensation our findings offer strong support for these theoretical expectations

growth efficiency and convergence in china s state and collective industry in china as in the soviet union and eastern europe economic reform initiatives seek to increase productivity by introducing elements of market oriented policies and institutions into an economy formerly dominated by state planning efforts to evaluate the impact of reform of chinese industry have focused on the measurement of productivity change in state enterprises this study expands the prior framework of analysis in several directions our investigation of productivity trends is not limited to state enterprises but includes quantitative comparisons with china s fast growing collective industries which contributed 36 of overall industrial output in 1988 1 unlike previous studies our analysis works with gross rather than net output this permits us to investigate changes in the productivity of intermediate inputs which occupy a large portion of total costs in chinese industry as well as labor and capital to do this we develop a quasi frontier estimation procedure which seems appropriate for comparisons of total factor productivity based on chinese industrial data finally we offer a quantitative perspective on the extent to which reform efforts have moved industrial resource allocation toward patterns expected of a market system the analysis confirms our previous finding based on a restricted framework employing only labor fixed capital and net output that multifactor productivity in state industry has risen substantially during

timing of investment and international expansion performance in china this study examines the multivariate and univariate performance effects of timing of fdi in an emerging economy at the business unit level a longitudinal analysis of industry wide firm specific data on fdi timing and foreign venture performance in china reveals that timing has a significant influence on overall as well as on individual aspects of venture performance it is observed that early entrants outperform late movers in terms of local market expansion and asset turnover whereas late movers are superior to early entrants with regard to risk reduction and accounting return during the initial period of international expansion factor analysis confirms that the importance of timing in affecting fdi decisions is as significant as that of internalization ownership or location factors

employment trends in the u s electricity sector 2008 2012 abstract between 2008 2012 electricity generated gwh from coal the longtime dominant fuel for electric power in the us declined 24 while electricity generated from natural gas wind and solar grew by 39 154 and 400 respectively these shifts had major effects on domestic employment in those sectors of the coal natural gas wind and solar industries involved in operations and maintenance o m activities for electricity generation using an economic input output model we estimate that the coal industry lost more than 49 000 jobs 12 nationally over the five year period while in the natural gas solar and wind industries employment increased by nearly 175 000 jobs 21 we also combine published ratios for jobs per unit of fuel production and per megawatt of power plant capacity with site specific data on fuel production and power plant retirements additions and capacity changes to estimate and map direct job changes at the county level the maps show that job increases in the natural gas solar and wind industries generally did not occur where there were significant job losses in the coal industry particularly in west virginia and kentucky

interfirm diversity organizational learning and longevity in global strategic alliances organizational theorists have correctly argued that the emergence and maintenance of robust cooperation between global strategic alliance partners is related to the diversity in the partners characteristics yet previous research has failed to systematically delineate the important dimensions of interfirm diversity and integrate the dimensions into a unified framework of analysis this paper develops a multilevel typology of interfirm diversity and focuses on organizational learning and adaptation as critical processes that dynamically moderate diversity s impact on alliance longevity and effectiveness

on the future of international joint venture research international joint ventures ijvs are an important type of international strategic alliance isa and have been studied by scholars for decades resulting in a plethora of empirical studies publications and reviews yet an inadequate accumulation of knowledge exists as a closer look reveals much more than providing a summary and critical assessment of past contributions this paper develops an expansive research agenda based upon a deep understanding of past research and comprehensive frameworks that distill this research we identify a number of research opportunities that would not only advance ijv research but also closely related literatures and disciplines such as isas theories of the multinational firm international business research and strategic management

equity joint ventures and theory of the multinational enterprise this paper extends the internalization approach to the theory of the multinational enterprise mne to include an expanded role for equity joint ventures using the transaction cost paradigm of williamson this paper explains why joint ventures may sometimes be preferred over wholly owned subsidiaries also presented is empirical work on joint venture performance in developing countries which demonstrates that under certain conditions joint ventures can be the optimal mode of foreign direct investment 1987 jibs journal of international business studies 1987 18 1 16

paying the price the impact of controversial governance practices on managerial reputation this study directly examines the reputational penalties that managers pay when they engage in controversial governance practices that raise questions about managerial self interest these penalties

short and long run effects of a tax cut in an open economy with a sticky real wage the effects of a tax cut in an open economy with a sticky real wage are studied in the short run the lower the tax rate the lower the real wage the long run movement of this wage rate depends on the level of output in the short run a tax cut will increase output but the effects on the trade balance price level and total tax revenue are ambiguous a reduced relative price between domestic and imported goods is a necessary condition for an improved trade balance which in turn is a necessary condition for an increase in tax revenue in the long run the tax cut will have no output effect while the real wage and the relative price between domestic and imported goods will rise and the trade balance will deteriorate the price level will increase if the exchange rate is fixed but is unaffected if the exchange rate is flexible

diversification and the risk return trade off the article presents information on a study which investigated the risk return trade off at the level of individual firms with both accounting and market based measures of risk the author describe

multiparty cooperation and performance in international equity joint ventures previous studies have examined the relationship between cooperation and performance in international equity joint ventures ejvs mostly at the partner level this study revisits the issue at multiple levels and considers vertical and horizontal cooperation among the foreign partners the local partner and the venture management team the study also examines how goal incongruence between partners and market uncertainty affect the tripartite relationships between cooperation and performance the test results show a strong positive impact of cooperation between partners on performance as perceived both by the partners and by the venture management team one partner s cooperation with the venture management team is perceived favorably by that party but not necessarily by the other party unless both partners share the same goal market uncertainty requires stronger cooperation at all levels to improve performance in ejvs

competitive behavior and nonfinancial objectives entry exit and pricing decisions in closely held firms because of the predominance of the assumption of profit maximization as the goal of the firm and its decision makers especially in the competitive strategy literature research has yet to investigate how differences in objectives might influence competitive actions such as entry exit and pricing decisions this represents an important gap in the literature given the fundamental role of objectives in decision making and widespread evidence that many firms especially those that are closely held are motivated by nonfinancial objectives in addition to an interest in financial returns to further our understanding of firms competitive strategy decisions we discuss how the presence of nonfinancial objectives in closely held firms leads to a weakening of the relationship between economic indications of profitability and competitive behaviors using a unique data set of nearly 4 000 closely held and non closely held establishments engaged in local competition in the texas hotel industry we find that the e

performance feedback and firm risk taking the moderating effects of ceo and outside director stock options we contribute to the behavioral theory of the firm and the behavioral agency model by developing a theoretical framework that predicts the differential interaction effects of performance feedback and values of stock option grants of multiple agents on firm risk taking we explain how chief executive officers ceos versus outside directors awarded with stock option grants perceive negative or positive deviations from prior performance we argue that in a negative attainment discrepancy context high values of option grants will increase the risk aversion of ceos who already bear excessive employment and compensation risks resulting in less risk taking however it will enhance the risk taking propensity of influential outside directors who increase monitoring and support for risky projects because their risk preferences are better aligned with those of shareholders in a positive attainment discrepancy context high values of option grants will amplify risk aversion in both ceos and outside directors who

moving closer to the action examining compensation design effects on firm risk we examine the influence of ceo equity based compensation on strategic risk taking by the firm building off the behavioral agency model agency theory and prospect theory we develop arguments about when equity based compensation elements will increase or decrease executive risk propensity and in turn strategic risk taking incorporating a behavioral perspective into our models of incentive alignment provides us with new and potentially more accurate predictions about how individual elements of ceo pay will influence risk selection as well as how equity compensation interacts with cash compensation and with other factors to influence risk preferences in general this study provides evidence that ceo equity based compensation significantly influences strategic risk but that this influence is more nuanced and complex than conventional treatments of executive compensation assume in particular we find that different forms of equity based pay exhibit dissimilar influences on strategic risk and that their influence changes as their value and vesting status change second we find that cash based forms of pay moderate the incentive properties of equity based pay indicating that cash based pay may affect how executives perceive risks associated with equity pay finally we find that stock price volatility and board actions each also moderate the incentive effects of equity based pay in sum our results argue for increased recognition of a behavioral perspective on executive compensation and greater precision in how we measure and model the incentive alignment properties of ceo compensation

soviet postwar industrial growth and capital labour substitution an empirical note abstract this note tests an aggregate transcendental production function for soviet industry the estimated equation shows the elasticity of substitution in aggregate soviet industry in less than unity and it is decreasing quite rapidly

green jobs economic impacts of renewable energy in germany abstract the labor market implications of large investment into renewable energy re are analyzed in this text although a growing re industry can be observed in germany the overall effect of large increases of re based electricity and heat generating technologies on the german economy require a careful model based analysis the applied model panta rhei has been used among others to evaluate the german energy concept in 2010 it takes positive and negative impacts of re into account the paper shows the overall effects under different assumptions for fossil fuel prices domestic installations and international trade the results are sensitive to assumptions on the development of re world markets and german exports to these markets almost all of these scenarios exhibit positive net employment effects under medium assumptions net employment of re expansion will reach around 150 thousand in 2030 only with assumptions for german re exports below today s level net impacts are slightly negative gross employment will increase from 340 thousand in 2009 to between 500 and 600 thousand in 2030

can tax cuts beat the phillips curve abstract an economy with a non vertical long run phillips curve defined for employment and the growth rate of real disposable wage is assumed steady state effects of long run gradual changes in the tax rate and public expenditure are analyzed the slower the tax rate increases or the faster it is reduced the higher the steady state employment level the higher the inflation rate and the larger the trade deficit an increase in the growth rate of public expenditure has the same effects a combined reduction in tax increases and public expenditure may increase steady state employment reduce inflation and improve the trade balance

chinese industrial reform accomplishments prospects and implications why has china grown so fast when conditions thought to be necessary for growth were absent nowhere is this dissonance greater than in china s industrial sector which has recorded big gains in output employment and exports in the absence of privatization effective bankruptcy legislation and other policy innovations widely seen as prerequisites for successful reform this essay reviews the accomplishments of chinese industry since the start of reform in 1978 focusing on the internal dynamics of the development process considers the future of partial reform and discusses the implications of china s industrial reform experience

equity joint ventures and the theory of the multinational enterprise this paper extends the internalization approach to the theory of the multinational enterprise mne to include an expanded role for equity joint ventures using the transaction cost paradigm of williamson this paper explains why joint ventures may sometimes be preferred over wholly owned subsidiaries also presented is empirical work on joint venture performance in developing countries which demonstrates that under certain conditions joint ventures can be the optimal mode of foreign direct investment

are ceos really paid like bureaucrats a common view is that there is little correlation between firm performance and ceo pay using a new fifteen year panel data set of ceos in the largest publicly traded u s companies we document a strong relationship between firm performance and ceo compensation this relationship is generated almost entirely by changes in the value of ceo holdings of stock and stock options in addition we show that both the level of ceo compensation and the sensitivity of compensation to firm performance have risen dramatically since 1980 largely because of increases in stock option grants

r d and ceo departure date do financial incentives make ceos more opportunistic the purpose of this article is to examine whether research and development r d expenditure is biased downward because of self serving behavior of highly incentivized managers this offers an insight into the general relationship between incentives and opportunism using instrumental variables and panel data methods for a sample of high r d spenders in the uk we examine whether r d is reduced in cases of imminent departure of the ceo results show evidence for this but only for the sample above the median in intensity of stock and options in the compensation package this suggests that opportunism is enhanced by inappropriately strong incentives the main results are robust to the inclusion of a number of corporate governance variables jel classification g30 o30

functional form and new production functions some comments and a new ves function this paper discusses new production function forms which are devised to generalise two restrictive features of the maintained hypotheses concerning homogeneity and the substitution effect of the original acms function

swinging for the fences the effects of ceo stock options on company risk taking and performance we unpack the concept of managerial risk taking distinguishing among three of its major elements the size of an outlay the variance of potential outcomes and the likelihood of extreme loss we

social ties and partner identification in sino hong kong international joint ventures partner identification is an important and under studied precursor to selection and eventual performance of international joint ventures ijvs the mechanics of the identification process were investigated in depth across a sample of eighteen sino hong kong ijvs using the case study research method the cross case findings of this exploratory investigation support the idea that social networks provide a valuable resource for reducing ijv partner search costs specifically the findings reveal that while weakly linked bridge ties are valuable in identifying potential partners searches based on strong ties tend to be shorter and provide a more robust basis for inter partner cooperation

managerial incentives and investment in r d in large multiproduct firms incentives for division managers in large firms affect their risk orientation and thus their decisions to invest in r d this paper reviews theory and hypothesizes that division managers incentive compensation that is based on financial performance is negatively related to risk taking as measured by r d intensity results of a study of 184 major u s firms suggest that incentives based on short term annual division financial performance are negatively related to total firm r d intensity after controlling for industry r d intensity firm diversification size and group structure furthermore the results suggest that an emphasis on long term financial incentives may mitigate the negative relationship between these incentives and r d intensity but does not promote risk taking the results suggest the importance of emphasizing strategic controls evaluating division managers based on operational understanding of strategies proposed strategic criteria as opposed to the use of financial controls evalua

resolving the agency problems of external capital through options this paper investigates the role of stock options in resolving the agency problems of external capital as originally identified by jensen and meckling 1976 these problems are precipitated by managerial incentives a to consume excessive non pecuniary benefits or perquisites beyond the optimal level for sole ownership and b to engage in risk shifting in productive decisions so as to transfer wealth from external capital contributors these incentive problems can be resolved through a strategy that judiciously combines call and put options retained by the owner manager and external financiers respectively the resolution of the agency problems through this mechanism provides an economic rationale for the existence of managerial stock options and convertible debt the work by jensen and meckling 7 has brought more realism to the theory of the firm in their paper jm address agency problems in the context of a firm which is viewed as a nexus of contracts among various factors of production the contractual relationships involve incentive conflicts arising from the pursuit of self interest by limiting themselves to an entrepreneur or owner manager who retains complete control of the firm jm have demonstrated that financing through the issuance of common stock or debt to outsiders engenders costs these costs are precipitated in part by the manager s propensity to consume nonpecuniary benefits or perquisites perks by employing certain resources in excess of their optimal usage 1 and by his propensity to engage in high risk investment projects so as to transfer wealth from bondholders to stockholders 2

the duality of collaboration inducements and opportunities in the formation of interfirm linkages i argue that the linkage formation propensity of firms is explained by simultaneously examining both inducement and opportunity factors drawing upon resource based and social network theory literatures i identify three forms of accumulated capital technical commercial and social that can affect a firm s inducements and opportunities to form linkages firms possessing these capital stocks enjoy advantages in linkages formation however firms lacking these accumulated resources can still form linkages if they generate a radical technological breakthrough thus i identify paths to linkage formation for leading as well as peripheral firms i test these arguments with longitudinal data on technical collaborative linkages in the global chemicals industry copyright 2000 john wiley sons ltd

developed country mnes investing in developing economies progress and prospect this study reviews research from 1970 through 2016 on developed country multinational enterprises dmnes entering and competing in developing economies to identify the current state of knowledge of this research and push it further we review the literature using bibliometric and qualitative content analyses covering leading journals and books we articulate frontier issues that are understudied yet critical to both theorization and practice of dmnes in developing economies we discuss the findings and conclusions from prior research along five key areas 1 entering developing economies 2 organizing local activities 3 managing alliances and joint ventures 4 competing in dynamic environments and 5 dealing with institutions governments and society we offer prospective insights into future agenda that have important implications for mne strategies and decisions and propose frontier directions that encompass strategic localization reverse transfer and adaptation co evolution with local business ecosystems reorganizing and restructuring and strategic responses to institutional and market complexity

environmental risks and joint venture sharing arrangements multinational enterprises mnes have responded to the open door policies of socialist countries in recent years by investing in their economies through joint ventures mnes must formulate their investment strategies to control and manage the environmental risks peculiar to a traditional centrally planned economy cpe in which contextual and transactional environments are blurred joint venture sharing arrangements may be structured to control exposures to uncertainties and to align the interests of transactional parties mostly state owned enterprises to those of the venture this study tests the hypothesis that a foreign investor s share in a joint venture in a cpe is inversely correlated with 1 the amount of uncertainties and risks and 2 the external dependency of the venture on the contextual and transactional relationships of the host country the hypothesis is supported by empirical evidence from data on american joint ventures in china

estimating elasticities of substitution by the cde production function an application to japanese manufacturing industries using time series data from japanese manufacturing industries the capital skill complementarity hypothesis is tested by estimating eslasticities from a cde production function the first component

incidence and consequences of risk taking behavior in tournaments evidence from the nba we empirically explore the relevance and efficiency of risk taking behavior in tournaments we use data from the national basketball association nba and measure risk taking by the fraction of three point shots in basketball games we examine how point differences between teams during games affect their subsequent risk taking behavior it is found that teams that are trailing are more likely to increase their use of three point shots we additionally analyze the consequences of this change in behavior enhanced risk taking is inefficient in the vast majority of cases and is only beneficial if a team is trailing by a rather large margin we discuss possible explanations for these decision errors jel m5 d81 j30

ceo hubris and firm risk taking in china the moderating role of managerial discretion this study linked ceo hubris to firm risk taking and examined the moderating role of managerial discretion in this relationship drawing on upper echelons theory and behavioral decision theory we

human capital in multinational enterprises does strategic alignment matter this research proposes a strategic human capital alignment framework to examine whether the alignment between subsidiary strategy i e export oriented vs local market oriented strategy and human capital i e parent firm vs local specific human capital is positively related to subsidiary performance in multinational enterprises mnes we further explore two important exogenous i e foreign exchange rate change and endogenous i e mne international experience boundary conditions since they may adjust the positive effect of strategic human capital alignment on performance the analysis based on 5604 subsidiary observations of 423 mnes from 1990 to 2012 confirms the positive synergic effect of aligning subsidiary strategy and human capital and shows the moderating effects of foreign exchange rate change and mne international experience by presenting the importance of subsidiary strategy global staffing alignment and the roles of external economic environments and internal organizational capabilities as boundary conditions the strategic human capital alignment framework suggests that what makes human capital valuable for the firm is its alignment with strategic orientation thus managers should carefully deploy the appropriate type of human capital to fulfill the requisite organizational strategy and take into account changing external and internal contextual conditions in applying the framework

through the contested terrain implementation of downsizing announcements by large u s firms 1984 to 2005 since the 1980s leading u s firms have announced massive downsizing plans in the name of maximizing shareholder value but some observers are skeptical about how serious firms are in implementing

the role of power and politics in the repricing of executive options we explore how ceo power affects the repricing of executive options the spread between an option s exercise or strike price and the market value of a stock impacts the likelihood of repricing

short seller influence on firm growth a threat rigidity perspective whereas most investors seek to maximize their investment there are some who profit from downward stock price movement engaging in such behavior is called short selling and it has increased con

completing china s move to the market beginning in late 1978 by luck as much as design china arrived at a strategy for market oriented economic reform that combined substantial reform with rapid growth in gdp and exports the sequencing of reform began with the easy to reform sectors agriculture and foreign trade and then took up the more difficult task of reforming the large state owned enterprises with respect to agriculture small scale industry and foreign investment china found ways of introducing meaningful property rights into the increasingly marketized system a partially unreformed financial system and inadequate autonomy of large state enterprises accounts however for the current stop go nature of chinese development

executive compensation and the cost of debt this study examines how different components of executive compensation affect the cost of debt we find that debt like and equity like pay components have differing effects an increase in defined benefit pensions is associated with lower bond yield spread while higher share holdings lead to higher spreads in addition we find that stock options have a mixed impact on the cost of debt whereas cash bonus has no significant impact overall our results indicate that corporate bondholders are fully aware of both risk taking and risk avoiding incentives created by various executive pay components

on the choice of production functions the case of us manufacturing industries a new ces bairam 1989 1991 production function that has the cobb douglas and leontief functions as special cases is considered and estimated for the nondurable goods and durable goods sectors in us manufacturing the translog and ces functions cannot be estimated properly due to multicollinearity whereas the cobb douglas and new ces functions yield coefficients that have the correct sign and are significant at the 1 or 5 level both sectors exhibited increasing returns to scale though the nondurable goods sector is more efficient than the other sector although the cobb douglas function cannot be rejected the new ces functions has the maximized value of the log likelihood function and the advantage that the variable output elasticity with respect to inputs can be tested

linking pay to performance compensation proposals in the s p 500 we study the proposal of manager sponsored compensation plans linking pay to performance by sp g34 j33

a behavioral understanding of investment horizon and firm performance observers have argued that firms overly emphasize short term results at the expense of long run value using a behavioral perspective we analyze three hypotheses related to this general argument first we examine the association of investment time horizons with firm performance contributing new theory that argues for a quadratic rather than linear association second because the tendency toward immediate results could reflect stock market pressures we consider how the interaction of investor patience and firm horizon relates to firm performance third we examine the argument s implication that most firms have investment horizons at a level where marginal increases in horizon associate positively with firm performance measuring horizon as the expected useful lives of capital expenditures we find empirical support for the hypothesized quadratic relation in a large scale multiyear sample of u s publicly held manufacturing firms and confirm that a majority of firms have horizons in the region where our models predict increases in horizon positively influence performance we also find that the most positive returns occur when long horizon investments are aligned with investor patience