bluuebunny/crossref_metadata_2025_split huggingface dataset:
Handing over the reins: should the CEO’s successor be an insider or an outsider?
Authors: Clutterbuck David 
Published: March 2003

This paper is based on an extract from an extensive study of high performance companies around the world, published in July 1997 under the title The Winning Streak, Mark II. The study focused on 24 companies from nine countries, where interviews were carried out with top management and beyond; and a further seven companies from four countries, where data was collected from extensive literature search and/or more limited interviews. All of the internationally operating companies had a long track record of significantly better financial performance and most had a higher public reputation than competitors in their industries. A control group of less successful companies was used to test the findings of the study, as was an “action case study” of a high performance company losing its way.The overall study identified a number of critical issues that these companies all managed well and concluded that maintaining high performance was due in large part to the organisation’s ability to balance conflicting demands within each of those issues. One of the issues concerned succession at the top: was continued high performance best achieved by an internal appointment that sustained the same values, or by introducing new blood at timely points in the organisation’s evolution? By far the majority of companies preferred to appoint from within, making the succession as seamless as possible by:•building a high degree of strategic consensus among the top team, from whom the new CEO will be chosen•ensuring that potential CEOs brought in from outside spend long enough in the company to understand how it works•using the retiring CEO as a chairman‐mentor
Corporate Governance in Small Companies – the Alternative Investment Market
Authors: Mallin Chris , Ow‐Yong Kean 
Published: March 2003

This paper examines corporate governance in small companies listed on the Alternative Investment Market (AIM) which was established in the UK in 1995. The London Stock Exchange rules stipulate that each company wishing to join AIM must have a nominated advisor and broker. The nominated advisor is seen as playing a key role in AIM companies, enjoying an ongoing advisory relationship as well as playing a monitoring role. The presence of the nominated advisor may, in some ways, mean that less emphasis is placed on formal corporate governance structures, as the nominated advisor does have a close relationship with the company it advises.The formal aspects of corporate governance are analysed in terms of disclosures in the admission document put forward by AIM companies coming to market. Preliminary findings suggest AIM companies brought onto the market by a nominated advisor who also acts as the nominated broker pay more attention to the Cadbury Code on corporate governance. Also, the study suggests AIM companies raising no new capital on admission possess relatively weaker corporate governance structures.The success of AIM, with over 240 companies having joined in the first 18 months of its existence, means that our findings have implications for policy‐makers involved in corporate governance not only in the UK but also for those involved in the establishment of markets for small companies in a global context.
New Corporate Governance Paradigms for Transnational Enterprises – Shell and strategic futures for big oil
Authors: Ledgerwood Grant 
Published: March 2003

This paper comments on and positions within the issues of corporate governance the process by which Shell, one of the world’s largest and most successful corporations, first committed important errors in its environmental, community and communications strategies and then responded. It forecasts some of the cultural and structural issues which need to be investigated in order to offset future likelihood of Shell committing similar errors in future.In exploring recent episodes in corporate governance, Shell’s company culture is seen as one of the ‘7 sisters’ of the world energy oligopoly.1 Alongside OPEC, the Organisation of Petroleum Exporting Countries, the oil giants of America and Europe provide the underpinning for a world system of economic supremacy. In terms of ethics and environmental performance, this hegemony is potentially benign. However, given their dependence on carbon‐based fossil fuels, these giants of the global economy may also tip the biosphere towards deterioration.The commentary is aimed at a strategic evaluation of Shell’s recent problems. Ethical or societal issues on which the critical events reflect requires separate consideration. An attempt to contribute to cultural dimensions of corporate governance theory concludes the paper.
The Priorities and Performance of Boards in UK Public Companies
Authors: Dulewicz Victor , Herbert Peter 
Published: March 2003

This study investigated the tasks and performance of the boards of UK listed companies. Questionnaires were sent to Chairmen of these companies and 134 responses were received from a reasonable cross‐section. First, chairmen were invited to rate the importance of each of sixteen key tasks to their own board, and second, to estimate how much effort their board currently devotes to each. They were then asked to rate their board’s current performance and potential for improvement against the tests of good practice appropriate to each relevant task.The results provide evidence that boards are under pressure to fulfil ever‐rising stakeholder and regulator expectations and to do more to promote the future prosperity of their companies. In addition, the study provides evidence that boards possessing a majority of executive directors consider that there is conspicuously greater potential for improvement in performance than those where non‐executives are in the majority. Finally, the definitions of board responsibilities and tests of good practice used in the study have been shown to provide a comprehensive and robust template with which boards can assess their effectiveness.
Global Adjustment in Korean Textiles
Authors: McNamara Dennis 
Published: March 2003

A combination of chronological compression and coordination of serial production has distinguished global adjustment in Korean textiles. Compression denotes the rapid progression from origins to maturity and then decline in what has become one of the world’s leading textile manufacturing and exporting nations. One consequence of rapid development has been inconsistencies in the formation of independent industry institutions necessary for adjustment, such as industry associations.Coordination denotes matching supply and demand along a long domestic line of production for export. This line stretches from upstream synthetics and spinners, all the way down to fashion and garments. Three distinct patterns of coordination have dominated the Korean production line. 1) Intra‐firm coordination within textile chaebol such as Kabool, Kolon, or Tongkook demand extensive investments upstream and downstream, but permit economies of scale and scope, and facilitate planning and quality control. 2) Inter‐firm coordination by the Korean Federation of Textile Industries [KOFOTI] mobilizes state and industry support for extending and refocusing the production line, but remains hampered by excessive competition within the industry, and by conflicting demands between smaller and larger producers. 3) Industry‐level supervision of the production line through state control of quotas, trade relations, prices, labor, and on raw material imports, as well as through macrolevel state controls in finance and trade.This paper focuses on the role of associations in global adjustment. Three levels of co‐ordination were critical in addressing the market imperfections of a fast‐growing industry, particularly in finance and in balancing production for domestic and foreign markets until recently. I conclude that without a greater role for industry associations in the face of state withdrawal from industry‐level coordination, contention rather than productive competition will hamper adjustment along South Korea’s long production line.
Review article: San Vincenzo al Volturno. History rewritten?
Authors: Balzaretti Ross 
Published: March 2003

Books reviewed in this article:Richard Hodges, Light in the Dark Ages. The Rise and Fall of San Vincenzo al Volturno.Richard Hodges (ed), San Vincenzo al Volturno 2: the 1980–1986 Excavations. Part 2.
The wage effects of ethnicity in Estonia
Authors: Kroncke Charles , Smith Kenneth 
Published: March 2003

Using the retrospective (1989‐94) Estonian Labour Force Survey (ELFS), we attempt to examine potential wage discrimination based on ethnicity (Estonian and Russian). Using standard wage decomposition methodology, we look at male full‐time workers in the years 1989 and 1994. There is no evidence of discrimination against either ethnic group in 1989. However, the available data provide substantial evidence of discrimination against ethnic Russians in 1994. The evidence also suggests that Estonian language ability does not significantly affect wages. Surprisingly, Estonian‐born ethnic Russians appear to fare worse than immigrant ethnic Russians in terms of wages.JEL classification: J71, P23.
The effects of foreign direct investment on domestic firms
Authors: Konings Jozef 
Published: March 2003

This paper uses firm‐level panel data to investigate empirically the effects of foreign direct investment on the productivity performance of domestic firms in three emerging economies of Central and Eastern Europe: Bulgaria, Romania and Poland. To this end, a unique firm‐level panel dataset is used with detailed information on foreign ownership at the firm level. Two main questions are addressed in the present paper: (1) do foreign firms perform better than their domestic counterparts? (2) do foreign firms generate spillovers to domestic firms?The estimation technique in this paper takes potential endogeneity of ownership, spillovers and other factors into account by estimating a fixed effects model using instrumental variables in the general methods of moment technique for panel data.Only in Poland, do foreign firms perform better than firms without foreign participation. Moreover, for all three countries studied here, I find no evidence of positive spillovers to domestic firms, on average. In contrast, on average, there are negative spillovers to domestic firms in Bulgaria and Romania, while there are no spillovers to domestic firms in Poland. This suggests a negative competition effect that dominates a positive technology effect.JEL classification: D24, F14, O52, P31.
Regional patterns of industrial development during China’s economic transition
Authors: Golley Jane 
Published: March 2003

This paper pinpoints ‘circular and cumulative causation’ as the fundamental mechanism driving the observed trend of uneven industrial development in the Chinese economy. A shift–share analysis of manufacturing performance at the provincial level identifies five provinces in South–east China — Guangdong, Fujian, Zhejiang, Jiangsu and Shandong — as the main beneficiaries of this cumulative process during China’s transition period. A descriptive analysis identifies some of the specific transitional factors and policy choices that have compounded the natural tendency towards regional inequality in China’s industrializing economy.JEL classification: R12, O53, P20.
An explanation of the forward premium ‘puzzle’
Authors: Roll Richard , Yan Shu 
Published: March 2003

Existing literature reports a puzzle about the forward rate premium over the spot foreign exchange rate. The premium is often negatively correlated with subsequent changes in the spot rate. This defies economic intuition and possibly violates market efficiency. Rational explanations include non‐stationary risk premia and econometric mis‐specifications, but some embrace the puzzle as a guide to profitable trading.We suggest there is really no puzzle. A simple model fits the data: forward exchange rates are unbiased predictors of subsequent spot rates. The puzzle arises because the forward rate, the spot rate, and the forward premium follow nearly non‐stationary time series processes. We document these properties with an extended sample and show why they give the delusion of a puzzle.
Teaching the Political Context of EC Law
Authors: Harlow Carol 
Published: March 2003

Books reviewed in this article:D. Dinan, Ever Closer Union? An Introduction to the European CommunityJ. Greenwood, Representing Interests in the European UnionF. Hayes‐Renshaw and H. Wallace, The Council of MinistersS. Hix and C. Lord, Political Parties in the European UnionN. Nugent, The Government and Politics of the European UnionR. Dehousse, The European Court of Justice: The Politics of Judicial IntegrationP. Craig and G. de Burca, EC Law, Text, Cases, & MaterialsD. Chalmers and E. Szyszczak, European Union Law. Volume One. Law and EU Government
The Value of Deposit Insurance in the Presence of Interest Rate and Credit Risk
Authors: Anderson Ronald W. , Cakici Nusret 
Published: March 2003

In this paper we employ the theory of the term structure of interest rates and the pricing of interest contingent contracts to determine the fair value of insurance for depository institutions. The balance sheet of a bank is taken to consist of long and short positions in various fixed income securities. Deposit insurance for the bank is a put option on the value of the assets. The value of deposits, assets, the implied exercise price of the put and the value of the put are all determined simultaneously as part of the same valuation solution. The approach is developed initially for a single‐state term structure. It is extended to incorporate credit risk on bank assets.The most important policy implication is that for a bank whose assets are longer term than its liabilities and whose borrowers are not excessively leveraged the properly calculated, risk‐adjusted deposit insurance premia are increasing functions of the level of interest rates. Sensitivity analyses also treat such factors as the bank's deposit to asset ratio, duration gap, interest volatility, the volatility of assets backing the bank loans, and the bank's borrowers’ debt to equity ratio.
The ‘Feminization’ of Management? Issues of ‘Sameness’ and ‘Difference’ in the Roles and Experiences of Female and Male Retail Managers
Authors: Tomlinson Frances , Brockbank Anne , Traves Joanne 
Published: March 2003

Explanations of women’s poor representation in senior management usually emphasize differences between women and men managers’ experiences, circumstances and aspirations, and the gendered character of organizational structures and processes. Whilst these may all disadvantage women, some writers have suggested recently that women managers may differ in style and orientation in ways particularly appropriate for today’s developing organizations. This paper explores issues of ‘sameness’ and ‘difference’ between women and men managers in retailing.Whilst both male and female store managers wanted to downplay gender differences and adopt a ‘gender neutral’ approach, they also associated a number of advantages and disadvantages with being a woman manager in certain contexts. Rapid sectoral change had caused companies to reassess the desired attributes and competences of managers; associated both with an enhanced valuing of ‘feminine’ qualities and with a more ‘objective’ and ‘clinical’ approach to assessment. Despite their equal numbers at entry points women remained poorly represented at senior levels, suggesting that subjective and informal processes were important determinants of women and men’s progress. Given management is inherently a process enacted by individual managers within a social context the extent to which it can be conceived in gender neutral terms is questioned since individuals are inevitably discussed and identified in terms of their gender.
A Theory of Migration as a Response to Relative Deprivation
Authors: Stark Oded , Wang  
Published: March 2003

Abstract
We model migration as a response to relative deprivation. We present a specific configuration of incomes in which the process of migration in response to relative deprivation reaches a steady state. However, for the general configuration of incomes we show that it is impossible to prove the existence of a steady state. We study the social welfare implications of the two cases and show that if individuals are left to pursue their betterment, the resulting state falls short of the best social outcome. We present several implications of the model including federalism and the demand for secession.
Pareto-Improving Redistribution and Pure Public Goods
Authors: Cornes Richard , Sandler Todd 
Published: March 2003

Abstract
In the pure public good model, the Nash equilibrium associated with one initial income distribution may Pareto dominate the equilibrium associated with another distribution of the same aggregate income. We explore this possibility and examine its implications for Pareto-improving policy intervention by undertaking a comparative static analysis of Pareto-improving tax-financed increases in pure public good provision. Under some circumstances, a government can engineer policies that raise public good provision while increasing the well-being of contributors and noncontributors. Crucial factors promoting this outcome involve a large number of noncontributors, a high marginal valuation for the public good by non-contributors and a large aggregate response of contributors to changes in their income.
Union Wage Setting and Capital Income Taxation in Dynamic General Equilibrium
Authors: Aronsson Thomas , Löfgren Karl-Gustaf , Sjögren Tomas 
Published: March 2003

Abstract
This paper concerns the effects of capital income taxation in a dynamic general equilibrium framework with union wage setting, when households face taxes related to both labor and capital. One purpose is to characterize the general equilibrium solution. Another is to study the effects of increased capital income taxation - in terms of the responses in real wages, employment, capital stock, output and consumption - and relate these behavioral responses to the overall tax structure. We also derive a cost-benefit rule for the purpose of analyzing the welfare effects of a small shift from labor income taxation to capital income taxation.
Partially Irreversible Investment Decisions and Taxation under Uncertainty: A Real Option Approach
Authors: Sureth Caren 
Published: March 2003

Abstract
The paper applies contingent claims analysis in a real option investment model in order to investigate taxation's influence on investor's decisions under uncertainty. The results show the distortion from realistic-type tax systems, allow to identify a tax-induced paradox in option valuation for specific settings and acknowledge the property of investment neutrality of well-known `ideal' tax systems in the context of different degrees of irreversibility. Furthermore, it is clarified that the idea of risk-neutral valuation cannot be adopted by the real option approach in general.
The German Business Tax Reform of 2000: A General Equilibrium Analysis
Authors: Sørensen Peter Birch 
Published: March 2003

Abstract
In the year 2000 Germany enacted a major tax reform involving significant cuts in corporate and personal tax rates and a controversial change in the system of dividend taxation. This paper discusses the effects of the business tax reform on the German economy. The analysis is based on a detailed general equilibrium model of the OECD economy which is designed to illustrate the domestic and international effects of national tax policies. The simulations indicate that the German business tax reform will raise domestic economic activity and welfare, although the welfare gain will accrue disproportionately to households with a high ratio of property income to total income.
The Distributional Effects of International Fragmentation
Authors: Kohler Wilhelm 
Published: March 2003

AbstractEconomic globalization causes an increasing international fragmentation (disintegration) of value-added chains, whereby firms outsource components of production to foreign markets. There is a high level of concern about unwelcome distributional effects. This paper provides a theoretical treatment of this issue within a general Heckscher-Ohlin framework, allowing for an arbitrary number of goods, factors, and fragments. It shows how a fragmented production equilibrium is disturbed by lower costs of fragmentation, and it introduces the concept of effective prices of fragments to derive general results that characterize the distributional consequences of an increase in international fragmentation occurring simultaneously in several industries.
Victor Klemperer (1881‐1960): Reflections on his ‘Third Reich’ Diaries
Authors: Reiss Hans 
Published: March 2003

In this article the ‘Third Reich’ diaries of Victor Klemperer, a ‘non‐Aryan’ professor of Romance languages at Dresden, are seen as a major literary achievement. Klemperer’s well‐written and incisive account brings to life the authentic record of the experiences of a victim of Hitler’s tyranny. We learn how the noose is more and more tightened around his throat and that of his ‘Aryan’ wife, whose steadfastness alone enabled him to survive, and how the Klemperers were able to escape the Gestapo only when in February 1945 an Allied air raid destroyed Dresden. The story of their high‐risk flight, too, is described. Klemperer’s attitude to his tribulations, to National Socialism, to Zionism, to the German people and to his fellow‐sufferers, is analysed, as is his academic career and achievement, for which Curriculum Vitae, his autobiography, and other diaries provide the relevant information. Klemperer’s transition from extreme nationalism to cosmopolitanism is examined, as is his firm conviction that Hitler’s racist ideology was absurd and that he was German to the core because of his commitment to German culture. His post‐1945 attempts to eradicate the National Socialist heritage and to resume academic work are depicted.‘Keine Feder und keine Zunge kann das Elend ... beschreiben’
Specialization in a Declining Industrial District
Authors: STABER UDO 
Published: March 2003

ABSTRACTAlthough flexible specialization is regarded as one of the hallmarks of industrial districts, its consequences for firm performance have not attracted much empirical attention. Using event‐history data on a complete population of textile‐clothing firms in Baden‐Württemberg in the Reutlingen (Germany) district from 1946 to 1993, this paper tests the proposition that specialized firms have a survival advantage over more integrated firms. Logistic regression models of failure probabilities show that, contrary to predictions derived from the district model, horizontally and vertically integrated firms have outlived more specialized firms. This study demonstrates the importance of dynamic research designs that incorporate information on strategic differences in a complete population of district firms, observed over an extended time frame.