Designing structural heterogeneity: fit, robustness and equifinality

Author(s):

Santi Furnari

 et al.

The most important organisation design models explain the variety of effective forms in terms of internal fit among organisational traits and of external fit between those traits and external conditions.

This paper offers a typology of sources of structural heterogeneity, a set of propositions on their relation with different types of performance, and an exploratory empirical test on a multi-industry sample of large firms.

Updated: 12/07/2014
Comments: 2
Views: 3,319

Are democratic governments more efficient?

Author(s):

Manthos Delis

 et al.
Topic:
Finance
Industry:
Public Policy

This paper explores the relationship between public sector efficiency (PSE) and the level of democracy, both theoretically and empirically. Specifically, it is assumed that elected officials in democracies are 'more' accountable to voters than the respective ones in autocracies.

Do you agree that democratic governments may be seen as more economically efficient?

Updated: 06/02/2013
Comments:
Views: 4,005

Re-thinking configurational fit

Author(s):

Santi Furnari

 et al.
Topic:
Strategy
Industry:
Any Industry

Few ideas have been more persistently central in both strategy and organisation research than the concept of fit.

In this paper, theory-based counterfactual analysis is used to tackle the lack of predictive power often characterising current approaches to configurational fit. Secondly, the researchers rely on recent applications of set-theoretic and relational, network-based, methods to enrich the empirical assessment of configurational fit.

Updated: 14/01/2013
Comments:
Views: 3,222

Risk management issues in European equity funds

Author(s):

Natasa Todorovic

 et al.
Topic:
Finance

The 2008 financial crisis highlighted the lack of effective risk management in the asset management industry. There was a lack of transparency and feasibility in the quantitative tools used to compute the value and risk management for the exotic credit derivatives products. Clearly, risk management was not well understood or used properly by financial companies that operated in this turbulent environment.

This paper provides a comprehensive analysis of current risk management practices of active European equity long-only funds and hedge funds.

Updated: 14/01/2013
Comments:
Views: 4,623

Beware fund managers bearing gifts: developments in human capital and investment

Author(s):

Chris Rowley

 et al.


After the post-2008 global financial crisis, people are much more interested in knowing more about human capital as a key indicator of future value in firms. Investors increasingly need to see early warning signs of failure or growth prospects in their investments. For bankers, lending proposals are either accepted or rejected on the basis of set financial ratios, such as debt to equity and loan to valuation.

Do these ratios tell the real story of the value which is being created, or destroyed, within a company? Is it dangerous for investors to rely on quantitative measures alone?

Updated: 14/01/2013
Comments: 1
Views: 4,082

Why managers with low forecast precision select high disclosure intensity

Author(s):

Miles Gietzmann

 et al.
Topic:
Finance
Industry:
Any Industry

Shin (2006) has argued that in order to understand the equilibrium patterns of corporate disclosure, it is necessary for researchers to work within an asset pricing framework in which corporate disclosures are endogenously determined.

The purpose of this paper is to introduce a general equilibrium model following the Black-Scholes paradigm with endogeneous disclosure in which firms select uniquely determined optimal probabilities of early equity-value discovery in a noisy environment.

Updated: 14/01/2013
Comments:
Views: 3,786

Structuring frames for change: A comparative case study of IT-enabled organisational change



Over the last few decades, businesses worldwide have embraced information technologies as a source of increased efficiency and productivity. Yet, the literature on IT adoption is full of stories of unfulfilled potential. This is often the case when managers explicitly plan to change a firm's organisational structure and processes via the introduction of information technologies, what is often called "IT-enabled organisational change".

This paper examines how two organisations used information technologies to introduce the same type of IT-enabled organisational change with radically different outcomes.

Updated: 14/01/2013
Comments:
Views: 4,178

Learning from prices, liquidity spillovers, and market segmentation

Author(s):

Giovanni Cespa

 et al.
Topic:
Finance
Industry:
Banking

Dealers use prices of other securities as a source of information. As prices of less liquid securities convey less precise information, a drop in liquidity for one security raises the uncertainty for dealers in other securities, thereby affecting their liquidity.

This working paper looks at causes for the occurrence of liquidity (or illiquidity) spillovers across markets and proposes a novel theoretical explanation that provides interesting insights into recent events, for example the 'Flash Crash' of May 2010.

Updated: 14/01/2013
Comments:
Views: 3,906

Credit rating migration risk and business cycles

Author(s):

Elena Kalotychou

 et al.
Topic:
Finance
Industry:
Banking

The recent global financial crisis has served as a stark reminder of the crucial role of systematic stress testing of financial institutions' portfolios, particularly, their lending books. In response to the regulatory deficiencies thus revealed, Basel III is seeking to achieve the broader macroprudential goal of protecting the banking sector from periods of excess credit growth by requesting longer horizon default probabilities, downturn loss-given-default measures and improved calibration of risk models.

A Mixture of Markov Chains (MMC) approach is proposed to estimate credit rating migration risk that controls for the business-cycle evolution during the relevant time horizon in order to ensure adequate capital buffers both in good and bad times.

Updated: 14/01/2013
Comments:
Views: 9,951