bluuebunny/crossref_metadata_2025 huggingface dataset:
Did the Tax Cuts Increase Hours of Work? A Statistical Analysis of a Natural Experiment
Authors: Klevmarken N. Anders
Published: November 2003

Effects on hours worked of cuts in the Swedish income taxes are analyzed using longtitudinal data that cover periods before and after a major tax reform in 1991. The results show that working males probably changed their hours very little as a result of reduced marginal tax rates, while women increased their hours in the order of 10 percent. One can thus conclude that the tax reforms increased gender inequality in workhours. Most of this effect comes directly from the tax changes and not through a change in the after tax net wage, a result that is not explained by a conventional myopic labor supply model with a static budget set.
Short‐Term Horizons in Foreign Exchange? Survey Evidence from dealers and Fund Managers
Authors: Menkhoff Lukas
Published: November 2003

The paper examines the extent and determinants of short‐term horizons in taking open positions using a questionnaire mailed to professional foreign exchange market participants in Germany. The findings reveal that the absolute anticipation horizon is short, but not necessarily short‐termist. Another related but empirically different measure is proposed, based on the relative length of different horizons; its use clearly shows widespread restrictions in relation to optimal behavior. No determinants in personal characteristics were established for either empirical measure; rather the instituional environment was found to be an influence. Thus, professionals may adept rationally to their incentive structure, which works towards short‐term horizons in position taking.
The Positive Economics of Labor Market Rigidities and Investor Protection
Authors: Fehn Rainer , Meier Carsten‐Patrick
Published: November 2003

This paper presents a positive model which derives the preferences of entrepreneurs, workers, and investors concerning investor and employment protection. It shows that institutional setups on capital and labor markets might be intertwined by politicoeconomic forces. Multiple politicoeconomic equilibria arise from our model. Some countries especially in continental Europe exhibit a corporatist politicoeconomic equilibrium with a substantial protection of insiders on both, capital and labor markets. The more important money is in political decision‐making, the more divided the workforce is, and the more globalized capital markets are, the more likely is a capitalist politicoeconomic equilibrium with little employment and substantial investor protection. Our prediction of a negative crosscountry relationship between different measures of labor market rigidities and of competition on capital markets receives considerable empirical support, thus being potentially important for the current debate concerning structural reforms of labor markets and of corporate governance systems.

We thank two anonymous referees as well as participants of the Colloquium on Financial Markets at the Kiel Institute of World Economics, of the Workshop of the Arbeitskreis Deutscher Binnenmarkt der List‐Gesellschaft on Capital Markets, of the Economics Workshop at the University of Würzburg, and especially Norbert Berthold, Martin Hellwig, Michael Neumann, Oliver Stettes, and Eric Thode for helpful comments. The usual disclaimer of course applies.
Can Inflation Be Too Low?
Authors: Andersen Torben M.
Published: November 2003

Price stability has become the predominant goal for monetary policy. Should the aim be zero inflation or could inflation be too low making it better to strive for a stable (low) positive rate of inflation? This paper analyses why inflation may interact with downward nominal rigidities so as to imply inefficiencies in resource allocation at low rates of inflation. The higher the rate of inflation, the lower the likelihood that downward nominal rigidities are binding (the Tobin argument) and this may cause a non‐linear Phillips curve. Inflation can be too low in the sense that the employment level is reduced and its volatility increased.
Redistribution as a Local Public Good: An Empirical Test for Flemish Municipalities
Authors: Ashworth John , Heyndels Bruno , Smolders Carine
Published: November 2003

Redistribution is typically viewed as a task of the central government. However, in most federal countries local governments do have some discretion in redistribution policy. The main theoretical argument for this is that redistribution may be a local public good (Pauly 1973). Using data on Flemish municipalities, we present a first empirical test of Pauly’s assumption. We find that the willingness to redistribute is negatively affected by the geographical dimension of the responsible government. We extend the notion of distance, considering also sociological, cultural, income and political distances between donors and recipients. We find that, with the exception of income, these are relevant determinants of welfare policy, though they do not always have the predicted effect.
On the Role of Heroes in Political and Economic Processes
Authors: Kirchgässner Gebhard
Published: November 2003

I gratefully acknowledge helpful comments and suggestions by the participants of this conference, especially Geoffrey Brennan, Christoph Engel and Torsten Persson, as well as by Simon Gaechter.
Tax Evasion and Voting: An Experimental Analysis
Authors: Feld Lars P. , Tyran Jean‐Robert
Published: November 2003

The authors would like to thank Gerald Hosp and Hannelore Weck‐Hannemann for valuable comments and suggestions. The usual disclaimer applies.
Quality Control in Economics
Authors: Laband David N. , Tollison Robert D. , Karahan Gokhan
Published: November 2003

This paper analyzes the editorial screening process in economics, employing data from the American Economic Review, Journal of Political Economy, and Quarterly Journal of Economics. We examine three issues: the decline of critical commentary in economics, the increased referencing behavior of authors, and the decline in the citation of economic research. We find that there is empirical evidence in favor of the idea that these trends are mostly due to more ex ante investment by authors in their papers and less need for ex post quality control.

We appreciate helpful comments received from William Shughart, John Sophocleus, and the editors of Kyklos. The usual caveat applies.
Regional Cluster Policies: Learning by Comparing?
Authors: Hospers Gert–Jan , Beugelsdijk Sjoerd
Published: November 2003

This paper deals with an intriguing paradox that can be observed in today’s regional economic policy making: whereas unique local factors are increasingly seen as the determinants of regional economic success, simultaneously more and more governments try to copy policy experiences that proved to be successful in a particular region. A good example here is the use of ‘best practices’ in the field of regional cluster policy. Cluster programs are becoming like ‘mantras’ for policy makers who want to stimulate regional economic development. Given this paradox, in the present paper we address the question what lessons can be drawn from comparing success stories of regional clustering. To answer this question, we combine insights from regional economics and comparative public policy. To start, we discuss the literature that has led to the popularity of the cluster concept as a learning device among policy makers. After that, we identify the preconditions (‘contingencies’) that affect whether these cluster policy initiatives can be transferred from one place to another. We find that some of the contingent influences, especially those related to the degree of uniqueness of an area’s economic structure and culture, hamper the possibility of ‘learning by comparing’ in regional cluster policy. It may even be argued that exactly those regional specificities explain the success of cluster–based policy efforts. Thus, we have to draw the rather pessimistic conclusion that the possibilities of lesson–drawing in regional cluster policy are limited. In our view, at best ‘best practices’ should be seen as inspiration sources rather than as recipes for successful regional economic development.

A preliminary version of this paper was presented at the CURE 3–Conference on Outstanding Regions in Leeuwarden, The Netherlands, November 22–24, 2000. We would like to thank Arnoud Lagendijk, an anonymous referee and the editors for valuable comments.
Preferences over Prosperity and Pollution: Environmental Valuation based on Happiness Surveys
Authors: Welsch Heinz
Published: November 2003

This paper uses cross–national data from happiness surveys, jointly with data on per capita income and pollution, to examine how self–reported well–being varies with prosperity and environmental conditions. This approach allows us to show that citizens care about prosperity and the environment, and to calculate the trade–off people are willing to make between them. The paper finds that the effect of urban air pollution on subjective well–being shows up as a considerable monetary valuation of improved air quality. For instance, a representative German citizen would need to be given more than 1900 $ per year in order to accept the typical urban air pollution level prevailing in Japan. The subjective marginal valuation of air pollution is compared with marginal abatement costs from the literature.
Public Profit Sharing
Authors: Schöb Ronnie
Published: November 2003

Many countries suffer from persistently high unemployment rates. The scope for labour market reforms is often limited to measures that hurt neither shareholders nor workers. This paper develops a policy proposal, which allows the government to reduce wage costs without changing the income positions as determined in the process of wage negotiations. It is shown that the introduction of public profit sharing, i.e., substituting profit shares for social security contributions, can boost employment both in the short run and the long run. Calibrating the model and comparing the results with recent empirical findings about the impact of labour taxation confirm the theoretical findings.
ICT Innovation and Economic Performance: The Role of Financial Intermediation
Authors: Houben Aerdt , Kakes Jan
Published: November 2003

This article considers the relationship between finance and the contribution of Information and Communication Technologies (ICT) to macroeconomic performance. The general characteristics of ICT firms, especially their often ‘high risk, high return’ nature, suggest equity finance is more appropriate than debt finance. Also, the prevalence of information asymmetries tends to favour internal finance and venture capital with management participation. For a group of countries, we analyse correlations between financial structure and the ICT contribution to economic growth. Our results support the view that a market–oriented financial system and a well–developed venture capital market are key factors stimulating the emergence of the so–called ‘New Economy’. This helps explain the considerable gap in productivity growth between the United States and Europe in the second half of the 1990s.
South Pacific Agendas in the Quest to Protect Natural Areas
Authors: Turnbull Jane
Published: November 2003

In the South Pacific islands, development assistance agencies, financial institutions, and international NGOs approach conservation in ways that provide opportunities for foreigners to advise islanders about appropriate paths to development. They fund the intergovernmental South Pacific Regional Environment Programme (SPREP), which uses its organizational, legal and discursive powers to create opportunities for their work, and so helps validate inequitable political and economic relationships between the islands and developed regions, ensuring that these continue unchallenged by concerns about environmental degradation. But this outsider–insider dichotomy is too simplistic to describe all the endeavours connected with South Pacific protected areas. Amongst indigenous interests in the islands there is more than a single conservation agenda. The variety of agendas connected to efforts to protect natural areas in the South Pacific islands illustrates that conservation is more than a technical endeavour with a single moral goal. Conservationists’ success in preserving biodiversity and natural areas depends, therefore, upon forming explicit and open alliances with other individuals who, although they may have different aspirations and values, are prepared to work openly and effectively with them to achieve some agreed measures.
Limits to Democratic Development in Civil Society and the State: The Case of Santo Domingo
Authors: Choup Anne Marie
Published: November 2003

Some scholars see civil society as key to democratization of the political system. In this view, pressure from civil society forces democratization of the state. However, this disregards the fact that changes in civil society's behaviour require changes in political society — changes are reciprocal. The demand–making strategies of grassroots organizations in the Dominican Republic in 1999 provide a good example of this dynamic: the incomplete nature of the democratic transition (specifically, the persistence of paternalism and clientelism) constrained the democratic strategy choices of the civil society organizations. Just as democratization within political society is inconsistent and incomplete, so will be the demand–making strategies of the grassroots towards the state. The Dominican case is of particular interest as it illustrates the blend of personalized and institutionalized elements characteristic of democratic transition.
Births, Infants and Children: An Econometric Portrait of Women and Children in India
Authors: Borooah Vani K.
Published: November 2003

This article undertakes an econometric analysis of the constellation of factors that serve to determine some outcomes with respect to demography and to schooling in India. These are: the numbers of pregnancies, live births and infant survivals to women, the chances of children being enrolled at school and, if enrolled, of continuing in school. The econometric estimates are based on unit record data from a survey — carried out by the National Council of Applied Economic Research, New Delhi — of 33,000 rural households in sixteen states of India. The study concludes that a broad spectrum of factors affects these outcomes. The literacy of women is important but so is the literacy of men. Infrastructure, in the form of safe drinking water and easy access to medical facilities, is important for infant survivals and, in the shape of easy access to schools, is important for school enrolment. Parental occupation matters for both infant survivals and schooling: children born to women who work as labourers are disadvantaged, relative to other children, in terms of their chances of surviving infancy and, if they do survive, of receiving schooling. The number of siblings that a child has affects his/her schooling outcomes, and gender, religion and region play an important role.
Participation and Power: Poor People's Engagement with India's Employment Assurance Scheme
Authors: Williams Glyn , Véron René , Corbridge Stuart , Srivastava Manoj
Published: November 2003

‘Participation’ has become an essential part of good developmental practice for Southern governments, NGOs and international agencies alike. In this article we reflect critically on this shift by investigating how a ‘participatory’ development programme — India's Employment Assurance Scheme (EAS) — intersects with poor people's existing social networks. By placing the formalized process of participation in the EAS within the context of these varied and uneven village–level relationships, we raise a number of important issues for participatory development practice. We note the importance of local power brokers and the heterogeneity of ‘grassroots’ (dis)empowerment, and question ideas of power reversals used within the participatory development literature.
Including children with special educational needs in the Literacy Hour: a continuing challenge
Authors: Miller Carol , Lacey Penny , Layton Lyn
Published: November 2003

This paper reports on a study to examine whether the framework for teaching the Literacy Hour can provide an inclusive learning environment for pupils with special educational needs. Carol Miller, Penny Lacey and Lyn Layton, all members of the Inclusion, Special Education and Educational Psychology Group in the School of Education at the University of Birmingham, used a survey and case studies to provide examples of organizational strategies and activities in literacy teaching. The authors go on to evaluate the extent to which these approaches promote inclusion in the Literacy Hour. They conclude that, while most children were included, some were engaged in alternative activities which were, in reality, focused on the development of communication skills. The authors close their article with a call for further research.
Drama, narrative and early learning
Authors: Peter Melanie
Published: November 2003

Melanie Peter is a lecturer in early childhood studies and special needs at Suffolk College, Ipswich, and a freelance consultant in arts education and inclusive/special education. Her recent research has focused on the value of pretence, particularly for children with autistic spectrum disorders. In this article, based on a paper given to the conference ‘Innovation, Research and Good Practice in the Education of Pupils with Severe, Profound and Multiple Learning Disabilities’ at the University of London in April 2002, she presents an approach to developing drama with severely socially challenged children, underpinned by a rationale founded in the importance of early experiences of make–believe and narrative. In drama, children at early stages of learning can begin to explore and understand social narratives from the inside – a vital route to developing social competence. Melanie Peter concludes that while play–drama intervention is aimed especially at children with autistic spectrum disorders, it can also benefit a wider range of children with severe and complex learning needs and help them to participate more effectively in a social world.
Bargaining (De)centralization, Macroeconomic Performance and Control over the Employment Relationship
Authors: Traxler Franz
Published: November 2003

Based on data for 20 OECD countries, this paper analyses the effect of bargaining centralization on performance and control over the employment relationship. Rejecting both the corporatist thesis and the hump–shape thesis, the paper finds that performance either increases or decreases with centralization, depending on the ability of the higher level to bind lower levels. There is a clear effect on control in that bargaining coverage significantly declines with decentralization. Employers can therefore expect to extend management prerogatives, rather than improve performance, when enforcing decentralization. Hence the literature on bargaining structures when focusing on performance has lost sight of their contested nature.
Police Pay and Bargaining in the UK, 1978–2000
Authors: Hunter Laurie
Published: November 2003

Police pay and conditions in the UK are governed by a unique mechanism, the Police Negotiating Board. This paper reviews the circumstances in which it was set up and examines the outcomes, relative to other public service workers, over the first twenty years of its operation. Recent developments highlight the role of ministerial intervention and raise questions about the relationship between the PNB negotiating system and working practice at police force level.
Internal Wage Structures and Organizational Performance
Authors: Beaumont P. B. , Harris R. I. D.
Published: November 2003

This paper considers whether a hierarchical or compressed wage structure is positively associated with relatively high levels of organizational performance. To date, there has been little empirical research in this area (especially in the UK). Thus we present an operational measure of a compressed/hierarchical wage structure, using UK manufacturing micro–data in five industrial sectors, and examine its relationship with labour productivity. We find that the wage compression argument holds in one sector but not for the majority of sectors and that taking into account other, intra–industry characteristics, namely size and ownership differences, further weakens the relationship.
The Effects of Working Time, Segmentation and Labour Market Mobility on Wages and Pensions in Ireland
Authors: O'Connell Philip J. , Gash Vanessa
Published: November 2003

Most research on pay and benefit differences between full– and part–time work focuses on characteristics of part–time workers and part–time jobs. However, part–time jobs are more open to labour market ‘outsiders’, and such labour market mobility can influence wages. We analyse the effects of working time, gender, segmentation and mobility on wages and pension benefits in Ireland. Both segmentation and mobility influence wages directly, and controlling for segmentation in a wage model eliminates the negative effect of part–time working. The wage effects of labour market mobility differ by gender and labour market segment. Pension entitlement is strongly influenced by gender, working time, labour market segment and mobility.
What Kind of Voice Do Loyal Employees Use?
Authors: Luchak Andrew A.
Published: November 2003

This study helps clarify mixed support for Hirschman's exit–voice–loyalty framework by arguing that loyalty, or feelings of attachment to the organization, and voice are not one–dimensional constructs. Based on data gathered from a survey of employees working with a large Canadian utility organization, employees feeling attached through an affective, emotional bond are found less likely to use representative voice but more likely to use direct voice, while those attached for rational, calculated reasons are more likely to use representative voice. Employees feeling attached for either reason are found less likely to exit. Implications for theory, research, and policy are discussed.
Studying the Accuracy of Managers' Perceptions: A Research Odyssey
Authors: Mezias John M. , Starbuck William H.
Published: November 2003

Much organizational activity and academic research relies on the accuracy of managers' perceptions. However, few studies have assessed the accuracy of managerial perceptions, and these studies indicate that managers' perceptions are often very inaccurate. This article discusses an odyssey into the study of managerial perceptions spanning two decades and two empirical studies. It depicts the evolution of research questions, samples, study designs, problems with such research and inferences drawn. It also identifies some errors that tend to be especially large and suggests some corrective actions. These corrective actions include using education and training to inform managers about organizational and environmental properties, exploiting improved technology, helping organizations to identify and correct misperceptions and designing robust organizations that can tolerate misperceptions.
Asking a Straightforward Question: Managers' Perceptions and Managers' Emotions
Authors: Daniels Kevin
Published: November 2003

Mezias and Starbuck (2003) raise a number of issues concerning the accuracy of managers' perceptions. In this commentary, I argue that research on managers' perceptions might fruitfully explore further (1) the functional and dysfunctional effects of managers' perceptions and (2) the role of emotion in shaping managers' perceptions and their responses to the environment filtered by these perceptions. Drawing upon research in social and cognitive psychology, I argue that there exist theoretical frameworks from which to frame questions and interpret data in these areas.
Managerial Perceptions and the Essence of the Managerial World: What is an Interloper Business Executive to Make of the Academic‐Researcher Perceptions of Managers?
Authors: Das T. K.
Published: November 2003

I argue that the Mezias and Starbuck (2003) research programme misses being managerially relevant by investigating the extent of perceptual inaccuracies among managers rather than the more valuable question of from where these inaccuracies arise and what their consequences are in practice. As a sometime business executive, it seems to me that the closer one gets to an actual managerial position, the less significant some of the explanations and recommendations in the academic research literature appear as regards managerial concerns. To ensure relevance in the managerial research enterprise, I suggest that academics should make concrete efforts to become reasonably conversant with the managerial world before undertaking any empirical research. I also make the point that the discussion of the Mode 2 approach to knowledge production in the management field needs to move away from the current focus on straightforwardly ‘bridging the relevance gap’ and toward finding ways to improve the competence of Mode 2 researchers by insisting on a minimum understanding of the managerial world before embarking on management research.
The State of the Field in UK Management Research: Reflections of the Research Assessment Exercise (RAE) Panel
Authors: Bessant J. , Birley S. , Cooper C. , Dawson S. , Gennard J. , Gardiner M. , Gray A. , Jones P. , Mayer C. , McGee J. , Pidd M. , Rowley G. , Saunders J. , Stark A.
Published: November 2003

This paper reviews the state of the field of the sub‐disciplines within UK management research, based upon the submissions of 94 UK higher education institutions to the Business and Management Studies Panel in the UK's 2001 Research Assessment Exercise (RAE). It offers observations on the UK model of the assessment of quality in, and funding of, research conducted in publicly funded higher education institutions.
From Blaming the Middle to Harnessing its Potential: Creating Change Intermediaries
Authors: Balogun J
Published: November 2003

Middle managers have been under attack as organizational downsizing and reengineering have reduced their number. They are also frequently portrayed as obstructive and resistant to change. However, recent research suggests that managers at middle levels in organizations may be able to make a strategic contribution. Data from research on how managers in an organization undergoing transformation experience change are used to build on this existing research to demonstrate that middle managers fulfil a complex ‘change intermediary’ position during implementation. The findings reveal that a key aspect of this position is the need for middle managers to engage in a range of activities to aid their interpretation of the change intent. This interpretation activity then informs the personal changes they attempt to undertake, how they help others through change, how they keep the business going during the transition and what changes they implement in their departments. The interpretation aspect of their role is often overlooked, leading to workload issues and role conflict. These findings offer an alternative perspective on perceived middle manager resistance and lead into suggestions for future research and organizational implications.
The Reverse Favourite–longshot Bias and Market Efficiency in Major League Baseball: An Update
Authors: Woodland Linda M. , Woodland Bill M.
Published: November 2003

Racetrack and sports betting markets have been researched extensively with respect to the question of market efficiency. In contrast to the consistently observed favourite–longshot bias found in racetrack betting markets, it has been shown that gamblers in the market for Major League Baseball games reveal the opposite behaviour. This paper updates the previous study with ten years of additional data for the 1990–99 seasons. The strength of the reverse favourite–longshot bias is virtually identical to the original paper. The result suggests that, contrary to most reported inefficiencies in gambling markets, this bias appears to be permanent.
Domestic and Foreign Sales When Prices in Both Markets are Uncertain
Authors: Dalal Ardeshir J. , Raju Sudhakar S.
Published: November 2003

This paper obtains comparative static results for a firm that sells a single output domestically and abroad when prices in both markets are uncertain. Results are obtained for both constant absolute risk aversion and for Ross decreasing absolute risk aversion, using a diagrammatic analysis which exploits the properties of expected marginal utility contours. The results depend crucially on whether foreign and domestic sales are net substitutes or complements. The model is more complex and yields fewer unambiguous results – particularly in the case of substitutes – than when there is price uncertainty in only one market.
Multivariate Markov Switching Common Factor Models for the UK
Authors: Mills Terence C. , Wang Ping
Published: November 2003

We estimate a model that incorporates two key features of business cycles, comovement among economic variables and switching between regimes of boom and slump, to quarterly UK data for the last four decades. A common factor, interpreted as a composite indicator of coincident variables, and estimates of turning points from one regime to the other, are extracted from the data by using the Kalman filter and maximum likelihood estimation. Both comovement and regime switching are found to be important features of the UK business cycle. The composite indicator produces a sensible representation of the cycle and the estimated turning points agree fairly well with independently determined chronologies. These estimates are sharper than those produced by a univariate Markov switching model of GDP alone. A fairly typical stylized fact of business cycles is confirmed by this model – recessions are steeper and shorter than recoveries.
The Game Take–or–Play: A Paradox of Rationality in Simultaneous Move Games
Authors: Colombo Ferdinando
Published: November 2003

We show that paradoxical conclusions similar to those emerging from reasonings of backward induction can arise also in simultaneous move games with incomplete information.

In a static setting, these paradoxes are particularly puzzling, because the usual attempts to avoid the backward induction solution do not work.

In a dynamic setting, there is a way out of the paradoxes, which hinges on a (possibly endogenous) uncertainty over the past behaviour of the players and does not call for a long time–horizon.
On the Uniqueness of the Welfare–maximizing Number of Firms Under Cournot Oligopoly
Authors: Ohkawa Takao , Okamura Makoto
Published: November 2003

Under Cournot oligopoly with a homogeneous product, we present a sufficient condition that guarantees the uniqueness of the welfare–maximizing number of firms to attain the global maximum level of welfare by implementation of a piecemeal policy changing the number of firms gradually. We adopt Selten's (1973) ‘fitting–in function’ method, which relates an individual firm's output to an industry's output. When the number of firms is unique, then introducing a lump–sum profit tax (subsidy) can attain the optimal level of welfare. Indirect entry regulation is superior to direct entry regulation from the standpoint of welfare if each entrant engages in rent–seeking activities.
The case against Microsoft: An ethical perspective
Authors: Spinello Richard A.
Published: November 2003

This paper discusses the complex Microsoft anti‐trust trial and the company 's questionable behavior during the browser wars with Netscape.It reviews the essentials of the legal case against Microsoft along with the company 's efforts to refute the charges against it, including the presumption of monopoly power. After laying the groundwork by providing conceptual background on the notion of fair competition, the paper turns to an ethical analysis of Microsoft 's conduct. We conclude that Microsoft 's behavior was excessively opportunistic during the browser wars.The company did not compete constructively or positively, but instead sought to undermine the competitive process.It also developed biased software code that tilted the playing ?eld in its direction.These actions caused harm to the company 's stakeholders by obstructing consumer choice and impeding innovation.
Ethical judgments and intentions: a multinational study of marketing professionals
Authors: Vitell Scott J. , Bakir Aysen , Paolillo Joseph G.P. , Hidalgo Encarnacion Ramos , Al‐Khatib Jamal , Rawwas Mohammed Y.A.
Published: November 2003

A multinational study of marketing professionals was conducted in the US, England, Spain and Turkey. Respondents from these countries were compared on various ethics‐related constructs such as idealism, relativism, moral intensity and corporate ethical values. Analyses of variance indicated that moral intensity had a signi ?cant impact on both ethical judgments and behavioral intentions. However, corporate ethical values, an idealistic ethical perspective and a relativistic ethical perspective only partially impacted ethical judgments and intentions. Country differences showed that the US was highest in terms of corporate ethical values while being the lowest in terms of relativism and signi?cantly lower than Spain and Turkey in terms of idealism. Turkey was the highest in terms of both idealism and relativism yet lowest in terms of corporate ethical values. Country differences in terms of moral intensity tended to be situation‐speci?c. One managerial implication, for ?rms in all four countries, is that a clear set of corporate policies concerning ethics can positively in?uence the behavioral intentions of employees. It is important that employees do not misinterpret the desires of top management where ethical issues are involved.
Business ethics in the Netherlands: a survey
Authors: Kaptein Muel
Published: November 2003

This article presents the results of a survey into the integrity of Dutch organisations. The Corporate Ethics Qualities Model has been used to develop a questionnaire:the Corporate Integrity Barometer. The endings show a varied picture of different kinds of integrity infringements and the weak and strong aspects of the ethical climate of Dutch organisations. The results provide organisations with tools to manage the integrity of their organisation and to benchmark their own level of integrity. By conducting this kind of research in other countries, we are able to gain a better understanding of the specifc ethical climate and salient issues relating to the integrity of corporations in each country.
Competence and trust guardians as key elements of building trust in east‐west joint ventures in Russia
Authors: Ayios Angela
Published: November 2003

This paper summarises the author 's doctoral research on the development of interpersonal/interorganisational trust in relationships between expatriate and Russian staff working in east‐west enterprises in Russia. There is strong evidence from a variety of researchers to suggest that in order for western businesses investing in Russia to succeed, the dif.cult process of building trust needs to be understood and managed since in the Russian business climate western standards and norms of ethical business have not yet been established. According to research.ndings, western investors doing business in Russia and the long‐term, personal trust that characterises family and friend relationships more congenial and more productive than formal, arm's‐length contacts and contracts. In such a context, it becomes important to identify what creates and destroys trust in the post‐Soviet business environment. This paper describes the causal factors leading to trust or lack of trust in relationships within western‐invested strategic alliances in Russia. The key relationship under consideration is the one between expatriate western staff and managers seconded to the venture on the one hand, and their local Russian staff, counterparts and superiors on the other.
Ethical perceptions of Asian managers: evidence of trends in six divergent national contexts
Authors: Chatterjee Samir R. , Pearson Cecil A.L.
Published: November 2003

Global link building is having a substantial impact in every sphere of Asian managerial activity. The economic upheavals of the Asian ?nancial crisis have cast a long shadow, and ethical clarity has become a social issue. For instance, corporate performance in terms of long‐term survival, growth and global competency is seen to depend to a considerable extent upon the ethical infrastructur of managers and emerging managerial culture in Asia. One ?eld in which Asian managers and their managerial practices are often considered weak is the area of ethical clarity. Corporate managerial leaders in Asia need to develop new responses to the ethical complexities arising out of the increasing global interfaces. In spite of a growing awareness of the importance of ethical centrality in an intensely competitive international business arena, very little empirical work has been conducted to strengthen the relevant management literatures. The purpose of the research reported in this paper was to examine the perceptions of ethical probity among managers in six Asian countries. The results of the study indicate interesting convergences and divergences across countries and organisational demographies. The ?ndings lead to observations of the apparent similarities of ethical conceptualisation in global, societal and often in the organisational arena while revealing noticeable divergences in the domain of individual ethical perceptions.
Board of Director Diversity and Firm Financial Performance
Authors: Erhardt Niclas L. , Werbel James D. , Shrader Charles B.
Published: November 2003

This study examines the relationship between demographic diversity on boards of directors with firm financial performance. This relationship is examined using 1993 and 1998 financial performance data (return on asset and investment) and the percentage of women and minorities on boards of directors for 127 large US companies. Correlation and regression analyses indicate board diversity is positively associated with these financial indicators of firm performance. Implications for both strategic human resource management and future research are discussed.
The Relationship Between Valuation and Ownership of Listed Firms in China
Authors: Hovey Martin , Li Larry , Naughton Tony
Published: November 2003

This paper investigates the relationship between firm performance and corporate governance in China. Firm performance is measured by Tobin's Q, while corporate governance is determined based on ownership structure and concentration. Prior research, in both China and elsewhere, indicates that ownership structure and concentration have a significant impact on firm performance. The paper builds on previous studies by investigating the complex structure of different share classes that are typical of Chinese listed firms.

The paper reports the results of an empirical study of a sample of firms listed on the Shanghai and Shenzhen stock markets over the period 1997–1999. The sample of firms selected represents a cross‐section of industries, share classification, ownership type and ownership concentration. The paper reports a series of regressions that account for different specifications of firm valuation and ownership characteristics. The results indicate that ownership concentration has little explanatory power but ownership structure does matter. Legal person's shareholdings are positively related to firm valuation. The findings of the study are discussed in the context of the current enterprise reform process in China.
Effective Corporate Governance: from the perspective of New Zealand fund managers
Authors: Chiu Peggy , Monin John
Published: November 2003

Institutional investment in New Zealand public companies has important implications for corporate governance of those companies. This study investigates the corporate governance issues that are perceived as important by fund managers, and the extent to which they become involved in the governance aspect of their portfolio companies. 14 NZ fund managers from a total population of 20 were interviewed. The findings reveal that fund managers would like to see more independence in governance processes and structure: for example, the proportion of independent directors, the CEO's role and the selection of new directors. In terms of remuneration for executive directors, fund managers in Australia and New Zealand prefer performance‐based remuneration, but they admit that the formulation of appropriate schemes is complex. Two cases of intervention in the governance affairs of publicly listed companies attest to the active interest of fund managers.
Interlocking Ownership in the Korean Chaebol
Authors: Kim Dong‐Woon
Published: November 2003

This paper analyses how a dominant entrepreneur of the Korean chaebol is able to exercise control, despite having a tiny shareholding, through strategic interlocking ownership. The entrepreneur organises his intimate group, consisting of three clusters of in‐house shareholders, and they together have controlling interests in only a few subsidiaries, mainly public companies. These central subsidiaries, as quasi‐holding companies, control most other member companies. The resultant ownership structure resembles a grid, in which individual subsidiaries’ ownership structures are intermingled.
The myths and realities of structural change in the UK labour market
Authors: Robinson Peter
Published: November 2003

Recent discussion of developments within the UK labour market has highlighted the growth of more ‘flexible’ types of employment: part‐time work, temporary jobs, and self‐employment. The structure of employment has also been shifting – away from manufacturing and manual employment and towards the service sector and non‐manual employment. In this article, Peter Robinson argues that these are not new developments and in some respects the pace of structural change in the labour market has slowed down. Together with evidence that the labour market is now adapting successfully to earlier structural changes, this bodes well for the prospect of further gradual reductions in unemployment.
Price Inflation in the UK: Has Anything Changed?
Authors: Coutts Kenneth , Henry Brian
Published: November 2003

Since leaving the ERM, the UK has had low inflation while unemployment has fallen substantially. This suggests that wage and price behaviour may have changed over the recent past. In this article, Ken Coutts and Brian Henry review the evidence for such change, particularly in pricing behaviour, but find little convincing evidence of a major structural shift. Rather, low inflation can be attributed to the effect of weak demand and low capacity utilisation on prices (and wages) which are larger and longer lasting than is generally believed, together with beneficial effects from low world inflation. On leaving the ERM, the government also instituted a classic combination of expenditure‐switching and expenditure‐reducing policies which played an essential part in promoting recovery without increasing inflation.
Is the European Economy Turning the Corner?
Authors: Greenslade Jenni , Sentance Andrew
Published: November 2003

The European economy looks bleak. Unemployment is hight. Growth over the recovery has been weak. And Germany – the powerhouse – is facing major economic difficulties. However, Jenni Greenslade and Andrew Sentance argue in this article that a turning point is in sight. Some of the depressing influences on recent European economic performance are fading. And there is plenty of capacity for growth without inflationary pressures emerging. It is time to show some cautious optimism about European economic prospects, though the problem of high unemployment is likely to take many years to erode.
Medium Term Prospects for the Japanese Economy
Authors: Barr Alistair
Published: November 2003

The International perception of the Japanese economy has undergone a radical change over the last decade. Received wisdom has transformed Japan from the role model of the 1980s to the sluggard of the 1990s. In this article, Alistair Barr argues that Japan faces formidable challenges over the next twenty‐five years, not least rapid ageing and population decline and the challenge of improving service sector productivity.
Benefit Transfers: A Cost‐effective Route from Welfare to Work
Authors: Snower Dennis , Orszag Michael
Published: November 2003

As part of its “Welfare‐to‐work” programme, the new Labour government has adopted the Benefit Transfer Programme – allowing unemployment benefits to be translated into job subsidies. In this article, Denis Snower and Michael Orszag argue that this offers a cost‐effective approach to tackling unemployment that should pay for itself over the long‐term, and argue for the extension and development of this approach to helping the long–term unemployed.
EMU and Labour: Facing up to the Euro
Authors: Currie David
Published: November 2003

EMU is the historic issue facing the Labour Government. In this article, David Currie considers the prospects for EMU and the challenges that it poses for the Government, particularly in the light of the forthcoming UK Presidency. He also considers the implications and risks of the Chancellor’s recent statement on EMU.
UK Consumer Spending: Prospects for the Late 1990s
Authors: Sentance Andrew , Caporale Guglielmo Maria , Williams Geoffrey
Published: November 2003

Over the last eighteen months, strong growth of personal consumption has fuelled the growth of the UK economy raising fears of a 1980s style consumer boom. The boost to consumption provided by “windfall gains” from building society conversions has added to these fears. In this article, Guglielmo Maria Caporale, Andrew Sentance and Geoffrey Williams discuss the forces behind this recent pick‐up in consumption and assess the prospects for consumer spending in the late 1990s.
Economic Implications of European Demographic Change
Authors: Miles David
Published: November 2003

This article uses a model of the economy where people of different ages interact in financial markets and in the labour market and where governments set taxes to balance receipts against pension spending. The model suggests that demographic changes will have major macroeconomic impacts.
The Gains from International Policy Coordination
Authors: Caporale Guglielmo Maria , Henry Brian
Published: November 2003

In this article Guglielmo Maria Caporale and Brian Henry summarise the results of a recent research project which focussed on the empirical evidence that there may be gains from policy cooperation. Policy interactions were analysed using a new econometric model of the G‐3, and a new methodology which incorporates elements from both optimal control and strategic game theory. They conclude that the gains from policy coordination might be significant.
Sterling’s rise: A case of delayed overshooting?
Authors: Breedon Francis
Published: November 2003

In this article Francis Breedon discusses how sterling’s rise over the last 6 months can be explained in terms of a delayed overshooting reaction to past monetary policy. Although the timing is still hard to judge, it seems that this effect should now begin to wear off, allowing sterling to fall – particularly against the DM. As far as future monetary policy is concerned, this delayed overshoot is another argument for the Treasury and Bank of England undertaking a more activist exchange rate policy, perhaps following the example of another open economy on the fringes of EMU – Switzerland.
Will the strength of Sterling slow growth?
Authors: Robson Paul , Nixon James
Published: November 2003

Sterling has now appreciated by over 25% since the second half of 1996. A key issue affecting the UK economy is the extent to which this will reduce growth this year and in 1999. When can we expect to see the net trade position deteriorate and to what extent? In this article, Paul Robson and James Nixon argue that business survey evidence implies that the current strength of Sterling is likely to lead to falling manufacturing exports over the course of this year. This combined with increased import penetration should be sufficient to cool the economy and remove the need for a further interest rate rise.