This paper examines the relationship between board independence degree and managerial short-term incentives in investment decisions using a game-theoretical framework which is based on the model of Narayanan (1985). Because the model here connects corporate governance by a board and investment decisions by a manager, we can see clearly how the board affects the manager's investment decisions using its wage policy for the manager. According to the results here, although corporate governance by the board can alleviate managerial short-term incentives in investment decisions, it can not solve these kinds of biases completely. Therefore, to accomplish our final target of eliminating managerial short-term incentives in investment decisions, the only way we can do is to make the information b...
This paper aims to introduce the meaning, components, dimensions and types of enterprise core competence. In addition, the framework of human resource strategy for managing enterprise core competence is also proposed. To identify enterprise core competence, and discuss the relationship between core competence and human resource strategy, methods of case study and documents analysis are also adopted.
Research on the effects of e-service quality dimensions on customer satisfaction and behavioural intentions has used cross-sectional data from customer surveys. To draw managerial implications, such research assumes that model parameters estimated across service provider customers apply also to the service providers. The current study collects e-service data that fully cross respondents with retailer websites. These crossed data are then used to compare the modelled effects of quality dimensions estimated on the confounded data with those estimated across customers and those estimated across websites. The results provide evidence of considerable inconsistency, suggesting that managers should not rely on conclusions drawn from an analysis of variation across customers.
This paper documents the performance differences between Wholly-Owned Subsidiaries (WOS) and Joint Ventures (JV) in electrical and electronics industry in Thailand for the period of 2000 to 2004. Unlike other studies, we analyse the performance differences using DuPont analysis. The impact of capital structure on the profitability of WOS and JV is further studied in this paper. We find that WOS have significantly higher sales growth, have more efficient asset management and carry higher debt ratios. On the other hand, JV are more efficient in cost control and thus have better performance in term of ROS. Consistent with managerial overinvestment agency theory, debt ratio is positive and highly significantly related to ROE. In addition, better asset management and higher leverage of WOS l...
The effectiveness of the capital maintenance concept that become enshrined in British companies legislation during the 19th century was almost immediately undermined when companies were permitted to pay dividends from circulating capital surpluses, even though overall there were losses of total invested capital. It is generally accepted that the British courts were conscious not to limit management's capacity to innovate and operate their businesses in good faith, and to maximize the capacity of their entities to distribute dividends to shareholders now and in the future. Nevertheless, it is unclear why at the time some accounting methods were accepted as being satisfactory in certain situations but not in others. It is argued that the British judges adhered to a number of complementary...
In recognition of the growing importance of small business ownership by women to the economic well-being of national economies, considerable academic attention has been given to identifying the reasons why women enter self-employment. However, little is known about the motivations for women to become franchisors. This represents an important gap in the literature. While the absence of research may be due to early beliefs that women are risk averse individuals that tend to limit the growth of their enterprises, more recent studies conclude that women perceive small business ownership as a vehicle for rapid growth and wealth creation. On this basis, franchising should represent an appealing business expansion strategy as it minimizes capital, labor, and managerial limitations on firm grow...
China has become the driving engine for the world economy and presents many opportunities for foreign firms. Although much research effort has been devoted to studying strategic management in Chinese organisations, China is still one of the least studied countries. This paper takes a new approach - complexity view - to examining the strategic management in Chinese organisations. It aims to explain why Chinese managers behave differently to their Western counterparts. To do so, literature on the complexity studies is firstly reviewed and synthesised. This paper then examines how institutional and cultural settings and Chinese history influence the strategic management in Chinese organisations. Finally, several managerial implications based on the results of this paper are suggested.
Adherence to proper code of ethics is the key to a company's success. Management can help ensure ethical behaviour by educating employees with company values and by acting in accordance with those values. Top level management should serve as an example for their employees. In fact, adherence to a code of ethics hinges on managerial commitment to those ethics.
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