Shareholder Primacy and Deontology

This article argues that shareholder primacy cannot be defended on the grounds that there is something special about the position of shareholders that grounds a right to preferential treatment on part of management. The notions of property and contract, traditionally thought to ground such a right, are now widely recognized as incapable of playing that role. This leaves shareholder theorists with two options. They can either abandon the project of arguing for their view on broadly deontological grounds and try to advance consequentialist arguments instead or they can search for other morally relevant properties that could ground shareholder rights. The most sustained argument in the latter vein is Marcoux's attempt to show that the vulnerability of shareholders mandates that managers are their fiduciaries. I show that this argument leads to the unacceptable conclusion that it would be unethical for corporations to make incomplete contracts with nonshareholding stakeholders.     

Hidden Agendas in Beratungs-und Veränderungsprozessen

Consulting and organization development claim to boost the client organization’s efficiency — this official goal is frequently foiled by hidden agendas which are not officially communicated. Hidden functions of consulting are to prove to the management’s legitimacy, to explain the failure of change processes, to strengthen the initator’s position in internal power struggles or to relieve the system from conflict. On the consultants’ side there is a tension between professionalism on one side and the necessity to secure follow-up projects and to sell standard products on the other side. The authors present possible interpretations for such hidden agendas and illustrate them with case studies from their practical experience as consultants.     

Does shareholder protection affect the performance of analysts as a gatekeeper?

This paper investigates the effect of shareholder protection on analysts’ performance. The important corporate governance role analysts can play by monitoring management has largely been ignored in the literature. Using a newly constructed index, we are for the first time able to analyse how changes in shareholder protection over time affect analysts’ performance as a gatekeeper. We find that strengthened shareholder protection improves analysts’ performance as a gatekeeper, i.e. analysts’ ability to reduce information asymmetry improves with strengthened shareholder protection. However, we also find a substitution effect: Strengthened shareholder protection makes analysts’ services less valuable to investors, thereby leading to a reduction in the number of analysts following firms.     

Mental health in women experiencing intimate partner violence as the efficiency goal of social welfare functions

In this article, we propose that psychological goal functions, such as mental health, as well as income are important elements of social welfare. We examine the relationship between income, depression, social welfare (food stamps and Medicaid) and intimate partner violence, using a person-orientation in a sample from the United States. Data from four time points of a longitudinal study of intimate partner violence are analysed. Clusters of women are derived based on whether or not they received or did not receive food stamps and Medicaid at each of the four time periods. These clusters differ on income and intimate partner violence as well as the trajectory of depression. However, a series of linear models suggests that only intimate partner violence (not income and social welfare variables) predict the development and level of depression over time. The effects of the social welfare variables we examined seem to be domain specific and do not influence the mental health of women receiving these services.     

For the Love of Art? Episodic Volunteering at Cultural Events

VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations - Although episodic volunteering is a popular form of volunteering and has received increasing attention from researchers,...     

Managing “forced” technology transfer in emerging markets: The case of China

This paper explores how foreign multinational corporations (MNCs) manage risks associated with “forced” technology transfer (“FTT”) policies in emerging markets. Although MNCs are increasingly exposed to appropriability risks from these policies, how they respond is relatively understudied in international business (IB) research. We explore this topic based upon a survey and interviews with Western MNCs doing business in China, as well as a discussion about the recent US-China trade war. We find that, as traditional IB theory would predict, internally-oriented strategies (e.g., internalization, maintenance of informal intellectual property (IP), and control of technological centrality and sophistication) are often used to respond to FTT policies; however, the risks from such policies can sometimes be more efficiently managed by externally-oriented strategies (e.g., non-market activities and reliance on formal IP). We discuss how the co-evolution of MNCs' risk management strategies alongside changing value chains, IP institutions, and conditions determining the leverage of FTT policies appear to contribute to this phenomenon. We argue that IB research should more prominently recognize the role of externally-oriented strategies, not only internally-oriented ones, in managing the complex IP-related institutional challenges present in emerging markets today.     

Is peer regulation perceived as an effective mediator to strengthen the mission orientation of INGO leaders?

International non-governmental organizations (INGOs) operate in competitive funding markets and face political pressures, which can incentivize their leaders to compromise their mission-oriented strategy for more resource security. This article empirically investigates whether INGO leaders perceive peer regulation as an effective governance mechanism that allows them to strengthen their mission-oriented strategy to withstand these economic and political constraints. In particular, we assess whether peer regulation is perceived to promote organizational learning processes. We test a partial least squares structural equation model (PLS-SEM) based on a unique data set from an international survey among 201 INGO leaders from 21 countries. Our findings suggest that INGO leaders indeed perceive that peer regulation strengthens their mission orientation, despite the economic competition and political opportunity constraints their organization faces. This effect is partially mediated by organizational learning processes. Our findings are based on a constructivist perspective that emphasizes the learneffect of peer regulation on INGOs' strategic orientation, and allows the derivation of several managerial recommendations to foster INGOs' strategic autonomy.