Business ethics,company value and ownership structure

This paper examines the effect of ethical performance on the value of a company and the attractiveness of its stocks for major owners; institutional investors and insiders. Using the Ethisphere^® Institute Ethics Quotient to distinguish between ethical and unethical companies, results show that good ethical performance enhanced company value for a sample of 240 large US companies. Furthermore, strong evidence is found that institutional investors are attracted to ethical companies, but that insiders do not show any investment preferences based on the ethical performance of a company.

     

Is There a Motherhood Wage Penalty in the Finnish Private Sector?

This paper investigates the effects of children on women's wages in the Finnish private sector. The paper finds evidence of the motherhood wage penalty, the penalty varying with the length of the child‐related career break. Mothers staying at home no longer than for 2 years face considerably smaller penalties than mothers spending longer periods at home. The negative wage effects of children decrease, however, quickly with time. For example, mothers who experience a career break of 2 years or less do not lag behind non‐mothers in terms of wages after the second year from the return to employment. There is also variation in the motherhood wage penalty across the wage distribution. The penalty is higher at the top of the distribution than in the middle of it, especially in the cases of prolonged child‐related career breaks.     

Ethnic conflict and job separations

We study the effect of the second Intifada—a violent conflict between Israel and its Palestinian neighbors which erupted in September 2000—and the ensuing demonstrations of Arab citizens of Israel on labor market outcomes of Arabs relative to those of Jewish Israelis. The analysis relies on a large matched employer–employee dataset, focusing on firms that in the pre-Intifada period hired both Arabs and Jews. We find that until September 2000 Arab workers had a lower rate of job separation than their Jewish peers and that this differential was significantly reduced after the outbreak of the Intifada.     

Intangibles and the Gender Wage Gap: An Analysis of Gender Wage Gaps Across Occupations in the Finnish Private Sector

The paper compares the gender wage differentials of two occupation groups—innovation and non-innovation workers—separately for manufacturing and services using Finnish private-sector data. We apply a decomposition method based on unconditional quantile regression techniques to identify key factors underlying the gender wage gaps observed along the whole wage distribution, as well as changes in these wage gaps between 2002 and 2009. This more nuanced approach provides important new insights. We find conspicuous differences in average gender wage gaps, in gender wage-gap profiles across the wage distribution and also in the evolution of gender wage differentials over time between sectors and occupation groups. Our results imply that sector-specific factors are a more important driving force behind these differences in patterns and trends of gender wage gaps, although occupation-specific factors cannot be totally dismissed. Hence, comparisons of gender wage gaps, including their underlying sources, of innovation and non-innovation workers for too broadly defined segments of the labour market may result in misleading conclusions concerning the factual role of intangible capital.     

A possibilistic aggregate production planning model for brass casting industry

This article discusses a possibilistic aggregate production planning (APP) model for blending problem in a brass factory; the problem computing optimal amounts of raw materials for the total production of several types of brass in a planning period. The model basically has a multi-blend model formulation in which demand quantities, percentages of the ingredient in some raw materials, cost coefficients, minimum and maximum procurement amounts are all imprecise and have triangular possibility distributions. A mathematical model and a solution algorithm are proposed for solving this model. In the proposed model, the Lai and Hwang's fuzzy ranking concept is relaxed by using ‘Either-or’ constraints. An application of the brass casting APP model to a brass factory demonstrates that the proposed model successfully solves the multi-blend problem for brass casting and determines the optimal raw material purchasing policies.     

Rural Telephone Company Adoption of Service Innovations: A Community Field Theory Approach*

Abstract Recent telecommunications innovations have the potential to improve the economic vitality of rural communities, but many rural telephone companies have not adopted them to provide needed advanced services. To explain the differences in adoption by rural telephone companies we distinguish between service innovations, adopted primarily to improve direct services to clients, and operations innovations, adopted primarily to improve the operation of the business. Using community interaction field theory we develop and test a conceptual framework for the adoption of innovative service telecommunications technologies by Iowa rural telephone companies. As field theory predicts, involvement in local economic development activities has a strong, direct effect on innovativeness. Results suggest that the service and operations innovations distinction has theoretical utility in explaining organizational innovativeness.     

Combining registration-system and survey data to estimate birth probabilities

With the widespread availability of event-history data, demographers have increasingly eschewed registration-system data in favor of survey data. We propose instead using survey and registration-system data in combination, via a constrained maximum-likelihood framework for demographic hazard modeling. As an application, we combine panel survey data and birth registration data to estimate annual birth probabilities by parity. The general fertility rate obtained from registration-system data constrains the weighted sum of parity-specific birth probabilities. The variances about the parity-specific birth probabilities are halved when registration-system data are used to constrain the estimates. Other demographic applications are discussed.     

The management of international manufacturing networks: a missing link towards total management of global networks

Abstract

The purposes of this article are to provide a brief overview of the research on international manufacturing networks (IMNs), identify corresponding gaps and provide background for the papers published in this special issue. First, this article shows the importance of addressing the management of IMNs, especially in times of global turbulence as a result of new economic, political and technological trends. Second, it highlights research into the management of IMNs as a missing link in the Operations Management (OM) discipline, as most of the current OM research neglects the fact that the internal structures and relationships of multi-plant organizations inside firms play a critical role in how a supply chain/network operates and relies mostly on scholars in other fields for insights into high-level and strategic issues in the management of global operations. Finally, this article argues there is still a lot to do in order to develop new theories towards the total management of global networks that can holistically analyze different global (intra- and inter-firm multi-functional) networks and address the complex interdependencies between them.     

Decomposition of the Shrinking Middle-class and Directional Mobility in Finland 1995–2012

This paper investigates the middle-class decline in Finland from 1995 to 2012. The purpose is to examine how changes in the probabilities of belonging to the middle class in different socioeconomic groups have contributed to the middle-class decline while taking into account changes in the relative sizes of the groups. A decomposition analysis indicates that most of the decline has been due to the probability effect, especially among the least-educated population. Changes in age demographics and educational structure have contributed to the decline. The results of the decomposition are supported by mobility results, which indicate that individuals with a tertiary (no secondary) degree have been subject to upward (downward) mobility over the observed time period. In conclusion, the middle-class decline and polarization in Finland are asymmetrically reflected in different education groups. The highly educated have climbed up the income distribution, while the least educated have fallen.