Ownership structure,investors’ protection and corporate valuation: the effect of judicial system efficiency in family and non-family firms

Research on the effect of ownership structure on firm performance shows no convergent evidence concerning the sign and form of the above-mentioned relationship. Similarly, there is no homogeneous evidence documenting family ownership concentration is always positively or negatively correlated with firm value, or irrelevant. This paper analyses whether and how the de facto investor protection provided by the judicial system affects the relationship between corporate performance and ownership structure in 1314 firms operating in four European countries (Germany, France, Italy, and Spain) over a five-year period, 2010–2014. Moreover, we analyse whether judicial system efficiency influences if and how family firms in the controlling coalition collude for expropriating minority shareholders. Our findings show that the level of shareholder protection, derived from judicial efficiency, is relevant to the relationship between ownership structure and firm performance, thus corroborating literature in that institutional contexts matter in explaining such relations. The results suggest the need for more efficient external mechanisms of corporate governance to facilitate investment in equity capital, thus decreasing the country risk perceived by investors.     

On the relationship between compliance with recommendations on the audit committee of codes of good practices and financial reporting quality

Codes of good practices provide a soft alternative to the hard legislation approach to corporate governance. These codes include a set of recommendations that companies are expected to follow in order to enhance governance structures and practices. Some of these recommendations specifically aim to improve the effectiveness of the audit committee. We investigate the relationship between the level of compliance with recommendations on the audit committee of the Spanish Unified Code and financial reporting quality, as measured by discretionary accruals and by the opinion of the audit report. We use a sample of companies listed in the Spanish stock market for the years between 2007 and 2013. Results show a strong and positive relationship between the level of compliance with recommendations and the quality of financial reporting. We also report significant results for some specific recommendations. These results are robust to various checks. Therefore, the level of compliance with recommendations on the audit committee might provide a feasible and reliable indicator of the quality of financial reports released by the company.     

Control or Autonomy? A Case Study of two Organizational Forms in the Zhangjiakou Internal Migrant Organization

Control often weakens autonomy in organizational theories. While many scholars focus on the paradox of control and autonomy, few pay attention to how an organization obtains both control and autonomy. By exploring Zhangjiakou Internal Immigrant Organization, this study finds two mechanisms can contribute to the balanced combination of control and autonomy. First, managers play ambidextrous official-merchant roles, which means superiors take both bureaucratic and autonomous management styles. Second, members have dual organizational goals for both political status and network support. In conclusion, the successful combination is shaped by the subjective interaction between the government, superior managers and subordinate members.     

Looking for Public Administration Theories?

Since the sixties, a number of Western countries have conducted a lot of NPM type reforms in order to improve their public administration (PA). However, more than forty years of NPM type reforms raise questions about whether these reforms consist in an improvement of PA or if alternative theories could find their place in the field of PA reforms. In order to answer these questions, the five main public administration theories (New Public Administration, New Public Management, Public Value Management, New Public Service and New Public Governance) have been selected, and based on an original analysis of their incipits, some guidelines are proposed for practitioners and students in PA.     

The neglected mediating role of self-efficacy in the goal setting process in local public administrations

To analyse the role of self-efficacy in goal setting in public administrations, this study combines goal-setting theory, public service motivation literature and cognitive theory. Using partial least squares structural equation modelling (PLS-SEM), survey data from 105 German civil servants are analysed. The results underline the role of goal setting (represented by goal difficulty and specificity) in determining the self-efficacy of public servants. Public service motivation and goal specificity both increase public servants’ work performance; however, the effects of goal difficulty are negatively mediated by the employee’s self-efficacy. That finding reflects the central role of self-efficacy, which should not be ignored in the goal-setting processes of public administrations.     

Can formula apportionment really prevent multinational enterprises from profit shifting? The role of asset valuation,intragroup debt,and leases

The European Commission has been supporting a transition from a system of separate accounting to formula apportionment. After its 2011 draft directive was rejected by the Council, the Commission presented two new draft directives in October 2016, one stipulating rules for a common tax base and another the terms for consolidation and apportionment. The aspired system of unitary taxation is considered more resistant to profit shifting and assumed to reduce compliance costs. However, there are also doubts about the extent, to which such a system will eradicate tax-planning activities of MNEs. Other concerns have arisen about the practical issue of enforcing uniform rules for asset valuation throughout the member states. We use a dynamic model of tax accounting based on neoclassical investment theory and effective tax rates to determine to what extent formula apportionment mitigates the efficiency of typical profit-shifting strategies. We focus on the roles of transfer pricing and intragroup debt financing (through loans and leases) under both separate accounting and formula apportionment. We also take into account a possible leeway for inconsistent valuation. Our results show that instead of eliminating tax planning strategies, the proposed system might simply induce a shift from manipulating reported profits to influencing the apportionment key. Inside the European Union, the CCCTB may be able to render thin capitalisation rules and transfer pricing documentation redundant. However, formula apportionment invites for new forms of tax planning. It is therefore essential to give credit to these new kinds of tax incentives when implementing a system of unitary taxation.     

CCR or BCC: what if we are in the wrong model?

The CCR model by Charnes et al. (Eur J Oper Res 2:429–444, 1978) together with the BCC model by Banker et al. (Manag Sci 30:1078–1091, 1984) are the most popular approaches of measuring efficiency among a group of decision making units, DMUs, in data envelopment analysis, DEA. The right choice of a DEA model—CCR or BCC—often, if not always, is a difficult decision. To evaluate a DMU’s efficiency for both models might be helpful, but it does not always capture the essential issues at stake. In this paper we propose a comparative analysis of both concepts: How does activity scaling under constant BCC-efficiency influence CCR-efficiency. And inversely, how does BCC-efficiency behave when activity scaling under constant CCR-efficiency is applied. Such findings of mutual effects improve a DMU’s ability to reassess upsizing and downsizing of activities. Moreover, it allows for exact calculations of the resulting economic effects, and these effects give new insights beyond classical DEA. Finally, scale efficiency turns out to be the ideal concept to control these activity changes, rather than just CCR- or BCC-efficiency. We use a little numerical example to emphasize advantages of the new concept and sketch the new findings for a theater scenery.     

Was ist interkulturelles Coaching? 20 Jahre und (k)ein bisschen Klarheit

Looking at the articles and books published in German and English it becomes obvious that intercultural coaching has become a field of expertise just as leadership or conflict coaching. However, the developments in the scholarly debate about intercultural and cross-cultural communication have not expanded into coaching. To avoid constrictions coaching needs to be combined systematically with a dynamic and cohesive notion of culture. Inspired by the theories of transformative learning and the sociology of knowledge three methodological meta-perspectives are introduced to reflect and use cultures in coaching. A practical coaching example illustrates how these culture reflexive perspectives can be handled. Lastly, coaching itself needs to be considered as a culture bound format.     

Coaching für japanische Migranten in Deutschland

Compared to other minority groups, Japanese migrants in Germany are regarded as privileged and homogeneous. The author argues against the stereotype of homogeneity and closely analyses this particular migrant group and its situational, heterogeneous necessities and objectives which motivate the use of diverse coaching methods. In addition, the author discusses traditional hierarchical values in the home culture which tends to project a role model in a coach. The mixture of Japanese migrants’ heterogeneous needs in coaching and their hierarchically homogeneous values cannot be adequately addressed by the application of conventional coaching methods in Germany.     

Unterstützung dualer Karrieren im Spitzensport

The longstanding focus of elite athletes on top sports entails disadvantages hampering their later entry to the world of work. In order to successfully contribute their outstanding personality traits to a later job, athletes are thus particularly required to care for their employability. Contributing to this, the author carried out a competency balancing with top athletes. This coaching method significantly decreased the athletes’ need for self-information. Evaluation further showed indications of increased clarity and certainty of occupational goals as well as work satisfaction.