Does insider shareholding matter to corporate payout reactions to tax reforms?

Theory indicates that since Germany’s 2001 Tax Reform Act non-qualified shareholders have strongly preferred share repurchases over dividends, even though qualified or corporate shareholders are typically expected to be indifferent between the two. By contrast, prior to the reform most shareholders preferred dividends. As payout policies may be driven by taxes but also by factors arising from asymmetric information of agents and principals, this raises the question whether payout decisions are driven by ownership structure, i.e., members of the management board or other influential shareholders such as blockholders. Kaserer et al. (Z Betriebswirtschaft 82, 2012) investigate the impact of insider shareholding on payout policy. Their study sheds light on the mechanisms behind corporate payout policies and provides important new insights into the influence that insiders’ actions have on payout policies. The authors leave issues like the impact of voting power and of dominant shareholder groups more or less untreated, hence preparing the floor for a whole series of interesting future empirical studies.     

Are you ready for virtual organizations?

Success, and maybe even survival, in the future will go to those health care organizations that can respond to constant and rapid change in a timely fashion. And timely doesn't mean what it once did. Years and months may no longer be a satisfactory response time. Even weeks may not always do. Opportunities will have to be seized quickly, or they will disappear forever. One possible answer to the leaden nature of most bureaucratic, hierarchical organizations may be a new kid on the block--the virtual organization. Formed solely to work on a single opportunity, these organizations can be used to position the parent organizations for almost any conceivable change.     

Are you ready for generation X?

Generational analysis considers the differences in world view and attitude between various generations of Americans and uses this information to develop insight and business strategies. The much discussed generation gap between the Baby Boomers and their elders during the 1960s and 1970s is equaled or exceeded by the differences between Generations X and Y and the Boomers. Generation X physicians will be coming into practice over the next two decades. Successful medical leaders must understand Gen-Xers to create clinical environments that meet their unique needs and concerns. This article describes some of the philosophical and attitudinal differences between the generations and what these differences may mean to the future of medicine and health care organizations.     

When to Carry Eccentric Products? Optimal Retail Assortment under Consumer Returns

To understand whether retailers should consider consumer returns when merchandising, we study how the optimal assortment of a retailer is influenced by its return policy. The retailer selects its assortment from an exogenous set of horizontally differentiated products. Consumers make purchase and keep/return decisions in nested multinomial logit fashion. Our main finding is that the optimal assortment has a distinct structure for relatively strict return policies: it is optimal to offer a mix of the most popular and most eccentric products when the refund amount is sufficiently low, which can be viewed as a form of risk sharing between the retailer and consumers. In contrast, if the refund is sufficiently high or when returns are disallowed, the optimal assortment is composed of only the most popular products (a common finding in the literature). We provide preliminary empirical evidence for one of the key drivers of our results: more eccentric products have higher probability of return—conditional on purchase. In light of our analytical findings and managerial insights, we conclude that retailers should take returns into account when merchandising.     

Are We Adapting to Floods? Evidence from Global Flooding Fatalities

There has been a growing interest in understanding whether and how people adapt to extreme weather events in a changing climate. This article presents one of the first empirical analyses of adaptation to flooding on a global scale. Using a sample of 97 countries between 1985 and 2010, we investigate the extent and pattern of flood adaptation by estimating the effects of a country's climatological risk, recent flood experiences, and socioeconomic characteristics on its flood‐related fatalities. Our results provide mixed evidence on adaptation: countries facing greater long‐term climatological flooding risks do not necessarily adapt better and suffer fewer fatalities; however, after controlling for the cross‐country heterogeneity, we find that more recent flooding shocks have a significant and negative effect on fatalities from subsequent floods. These findings may suggest the short‐term learning dynamics of adaptation and potential inefficacy of earlier flood control measures, particularly those that promote increased exposure in floodplains. Our findings provide important implications for climate adaptation policy making and climate modeling.     

Are Individual Differences Germane to the Acceptance of New Information Technologies?

Persuading users to adopt new information technologies persists as an important problem confronting those responsible for implementing new information systems. In order to better understand and manage the process of new technology adoption, several theoretical models have been proposed, of which the technology acceptance model (TAM) has gained considerable support. Beliefs and attitudes represent significant constructs in TAM. A parallel research stream suggests that individual difference factors are important in information technology acceptance but does not explicate the process by which acceptance is influenced. The objective of this paper is to clarify this process by proposing a theoretical model wherein the relationship between individual differences and IT acceptance is hypothesized to be mediated by the constructs of the technology acceptance model. In essence then, these factors are viewed as influencing an individual's beliefs about an information technology innovation; this relationship is further supported by drawing upon extensive research in learning. The theoretical model was tested in an empirical study of 230 users of an information technology innovation. Results confirm the basic structure of the model, including the mediating role of beliefs. Results also identify several individual difference variables that have significant effects on TAM's beliefs. Theoretical contributions and practical implications that follow are discussed.     

Are Boards Designed to Fail? The Implausibility of Effective Board Monitoring

In this review, we challenge the idea that directors are well positioned to be effective monitors of management. Moving beyond the logic of incentives and ability, we conceptualize a model based on the premise of boards as groups of individuals obtaining, processing and sharing information and explain how variation in information-processing demands at the director, board and firm level may challenge effective monitoring. We draw on multiple theoretical perspectives to identify these barriers to effective board monitoring. Our goal in reviewing these barriers is to help us take stock of existing research in corporate governance and to better explain board behavior beyond traditional agency and resource dependency accounts. We also aim to uncover gaps in the conceptual and empirical research and suggest areas of fruitful future research.     

Are Nuclear-Weapon States not Parties to the Non-proliferation Treaty Ready to Renounce to the Possession of Nuclear Weapons?

The situation of nuclear-weapon states not parties to the NPT is different from the situation of the nuclear-weapon states parties to that treaty. This last group of countries has signed and ratified a treaty that encourage them to begin negotiations in good faith for the discussion of concrete measures that lead them to nuclear disarmament, while the first group of states have made no commitment to do that. In other words, nuclear-weapon states not parties to the NPT have made no commitment to nuclear disarmament and are not obliged to report anything related to the possession of nuclear weapons to the any specific body or organ or to the international community. Taking into account the position of nuclear-weapon states parties to the NPT regarding the possession of nuclear weapons, there is no possibility to convince nuclear-weapon states not parties to this treaty to renounce to the possession of this type of weapons under the present circumstances.     

International coopetition for innovation: Are the benefits worth the challenges?

International coopetition has rarely been studied in relation to innovation. Further exploration of effects of international coopetition, i.e. the pursuit of simultaneous cooperation and competition, on a firm’s innovation performance is especially important as such a relationship is challenging with a high propensity to fail. This observation formed the point of departure for this study, which aims to increase the understanding of the effects of international coopetition on firm innovativeness and how these effects are conditioned on the magnitude of the organizational adjustments a firm introduces. We use an unbalanced panel of 9839 firms that participated in four waves of the Swedish Community Innovation Survey between 2008 and 2014 as our empirical base. We illustrate that firms that cooperate with competitors internationally are more likely to exhibit higher propensity to introduce radical innovations, yet this effect is conditioned upon the magnitude of organizational adjustments. Overall, our study contributes to the understanding of the implications of international coopetition and what a firm needs to benefit from it.     

Getting better or getting worse? Consumer responses to decreasing, constant, and ascending multi-dimensional price profiles

This research investigates consumer preferences for different multi-dimensional price profiles. Drawing on research on price affect, we investigate whether consumers prefer descending monthly installments (e.g., 40, 30, 20, 10) over constant (e.g., 25, 25, 25, 25), or ascending ones (e.g., 10, 20, 30, 40). Results of a field experiment with a sample of 1,628 German car buyers corroborate the hypothesized profile effect. In the experiment, participants were asked to evaluate different finance offers for a new car that all had the same present value but differed in terms of how the installments unfolded over time. Consistent with the hypotheses, decreasing monthly installments are evaluated more favorably than constant installments, which, in turn are evaluated more favorably than ascending installments. Furthermore, the results provide evidence for the underlying process by showing that the impact of different MDP profiles is mediated by positive affect. Finally, it was hypothesized that consumers’ individual differences (i.e., debt aversion, financial expectations, and product category knowledge) would exert a moderating influence on evaluations of different price profiles; these hypotheses, however, were only partially confirmed. Theoretical and managerial implications are discussed.     

Are Patients Patient? The Role of Time to Appointment in Patient Flow

The current state of outpatient healthcare delivery is characterized by capacity shortages and long waits for appointments, yet a substantial fraction of valuable doctors’ capacity is wasted due to no‐shows. In this study, we examine the effect of wait to appointment on patient flow, specifically on a patient's decision to schedule an appointment and to subsequently arrive to it. These two decisions may be dependent, as appointments are more likely to be scheduled by patients who are more patient and are thereby more likely to show up. To estimate the effect of wait on these two decisions, we introduce the willingness to wait (WTW), an unobservable variable that affects both bookings and arrivals for appointments. Using data from a large healthcare system, we estimate WTW with a state‐of‐the‐art non‐parametric method. The WTW, in turn, allows us to estimate the effect of wait on no‐shows. We observe that the effect of increased wait on the likelihood of no‐shows is disproportionately greater among patients with low WTW. Thus, although reducing the wait to an appointment will enable a provider to capture more patient bookings, the effects of wait time on capacity utilization can be non‐monotone. Our counterfactual analysis suggests that increasing wait times can sometimes be beneficial for reducing no‐shows.     

Norovirus Dose–Response: Are Currently Available Data Informative Enough to Determine How Susceptible Humans Are to Infection from a Single Virus?

Two forms of single‐hit infection dose‐response models have previously been developed to assess available data from human feeding trials and estimate the norovirus dose‐response relationship. The mechanistic interpretations of these models include strong assumptions that warrant reconsideration: the first study includes an implicit assumption that there is no immunity to Norwalk virus among the specific study population, while the recent second study includes assumptions that such immunity could exist and that the nonimmune have no defensive barriers to prevent infection from exposure to just one virus. Both models addressed unmeasured virus aggregation in administered doses. In this work, the available data are reanalyzed using a generalization of the first model to explore these previous assumptions. It was hypothesized that concurrent estimation of an unmeasured degree of virus aggregation and important dose‐response parameters could lead to structural nonidentifiability of the model (i.e., that a diverse range of alternative mechanistic interpretations yield the same optimal fit), and this is demonstrated using the profile likelihood approach and by algebraic proof. It is also demonstrated that omission of an immunity parameter can artificially inflate the estimated degree of aggregation and falsely suggest high susceptibility among the nonimmune. The currently available data support the assumption of immunity within the specific study population, but provide only weak information about the degree of aggregation and susceptibility among the nonimmune. The probability of infection at low and moderate doses may be much lower than previously asserted, but more data from strategically designed dose‐response experiments are needed to provide adequate information.     

Are Married Women in Turkey More Likely to Become Added or Discouraged Workers?

Abstract. The purpose of this study is to examine the labour market outcomes of married couples to find out which of the added and discouraged worker effects is dominant in urban Turkish families. Using household labour force survey and province‐level data from 1988 and 1994, we look for evidence regarding the dependency of the labour force participation decisions of wives and the employment status of their husbands. On yearly and pooled samples of married couples in their prime ages, bivariate probit estimates indicate that the two decisions are negatively correlated. However, the correlation is found to be statistically significant only in the economic crisis year of 1994. We interpret this finding to mean that the added worker effect dominates the discouraged worker effect.     

Sad to say: is it time for Sorrow Management Theory?

Terror Management Theory (TMT) research often asks respondents to describe their personal death. This exposure enables the testing of hypotheses regarding defenses ("buffers") against the anxious awareness of death. Curiously, though, the respondents' narratives are not analyzed or reported. The present study offers a qualitative analysis of 209 college student narrative responses provided for this purpose by TMT researchers Jeff Greenberg and Nathan Heflick. The narratives are reviewed with attention to affect (adjectives), semantic structure, and theme. Many responses are marked by anxiety, but sorrow is also pervasive. Individual differences in response substance and structure invite further exploration. It is suggested that our understanding of the response to personal death threat could be enhanced by encompassing sorrow as well as anxiety within the same conceptual framework. Several specific hypotheses and suggestions are offered.     

Perceptions of and reactions to leader toxicity: Do leader–follower relationships and identification with victim matter?

This experimental study examined the influence of leader–follower relationships (i.e., LMX) and target salience on perceptions of leader toxicity and intentions to challenge the leader. There are no studies that evaluate the effect of leader–follower relationships on these two variables. Participants (n = 298) with work experience viewed a video of a leader acting in a destructive manner toward a target. As predicted, LMX out-group participants perceived the leader to be toxic to a greater extent than participants with favored status, and indicated greater intent to challenge the leader. With regard to target salience, the results also showed that observers perceived the leader to be toxic to a greater extent when the leader was targeting someone in their LMX grouping, but there were no significant differences in challenging intentions based on the target's LMX status. Implications for leaders, followers, and organizations are discussed.     

Are People Willing to Buy Natural Disaster Insurance in China? Risk Awareness,Insurance Acceptance,and Willingness to Pay

After the Wenchuan earthquake (magnitude 7.9, May 12, 2008), intensive debates on how China should establish a natural disaster insurance system were initiated among researchers, policymakers, and insurance professionals. Our focus was the social aspects of disaster insurance, explored in China through a nationwide survey. Our questionnaires investigated people's risk awareness, insurance acceptance, their opinions on governmental measures for disaster management, and their willingness to pay for disaster house insurance. We analyzed the results at both regional and individual scales. We found that the integrated hazard index and respondents’ experience of insurance (considered objective factors), and their opinions on the importance of insurance and government responsibility (considered subjective factors) showed strong correlation with the regional overall acceptance of disaster insurance. An individual's decision to participate highly depended on his/her experience of both insurance and disaster and his/her opinion on the importance of insurance as a coping mechanism. Respondents from poverty‐stricken or less‐developed counties were not necessarily more reluctant to accept natural disaster insurance, though they exhibited relatively lower ability to afford insurance. In general, respondents had correct perceptions of natural disasters in their areas; however, people from regions with a greater multihazard threat showed less willingness to accept disaster insurance because they tended to expect the government to undertake to cover losses and considered insurance to be less important. People's willingness to pay for an assumed disaster house insurance was also investigated and analyzed. We consequently discuss the policy implications for developing a disaster insurance system in China.