Curtis Clements, John D. Neill and Paul Wertheim
The purpose of this paper is to investigate the relationship between the industry relatedness of directors’ multiple directorships and corporate governance effectiveness. The…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between the industry relatedness of directors’ multiple directorships and corporate governance effectiveness. The authors posit that a director gains “beneficial experience” by serving on outside boards of companies in related industries, with a resulting increase in governance effectiveness. Conversely, they predict a decrease in governance effectiveness when directors serve on outside boards of companies in unrelated industries.
Design/methodology/approach
Using publicly available data, a Tobit regression model is used to examine the effect of the industry relatedness of board members’ multiple directorships on corporate governance effectiveness.
Findings
The results demonstrate a significant positive correlation between the industry relatedness of directors’ multiple directorships and corporate governance effectiveness. It was found that this industry relatedness effect is stronger for directors of small companies than large company directors. The paper also documents a significant negative effect on governance effectiveness for small firms whose directors increase their board service on non-industry-related boards.
Originality/value
Prior research has examined the “Busyness Hypothesis” and the “Experience Hypothesis” as mutually exclusive hypotheses. This paper extends prior research by examining the possibility that the two hypotheses are not competing, but rather that both an experience effect and a busyness effect may be present for directors serving on multiple boards, and that one of the effects will dominate the other, based on certain company-specific characteristics.
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Nowadays it is — to a certain extent — popular to criticize international tourism to third world countries. These criticisms may base on widely divergent aspects of the…
Abstract
Nowadays it is — to a certain extent — popular to criticize international tourism to third world countries. These criticisms may base on widely divergent aspects of the phenomenon, ranging from for instance the economic impact to the environmental impact or the psychological impact. Without implicitly suggesting that the non‐economic effects of international tourism in developing countries are unimportant we will concentrate in the following on the economic impact. The reason for this is twofold:
Binod Guragai, Paul D. Hutchison and M. Theodore Farris
The purpose of this research study is to use a large sample of the US companies and investigate the impact of cash-to-cash cycle’s (C2C) length on company profitability and…
Abstract
The purpose of this research study is to use a large sample of the US companies and investigate the impact of cash-to-cash cycle’s (C2C) length on company profitability and liquidity in present and future periods and also examine whether such impact is dependent upon firm size or industry type. The authors investigate the association between C2C length and return on equity (ROE), as well as liquidity ratios for current and future years using linear regression models. The authors further examine such association for separate industries and explore the effect of size on the primary associations investigated. Consistent with prior literature, this study documents that C2C length is negatively (positively) associated with current profitability (liquidity). The authors also find that there is a significant negative association between C2C length and future profitability extending up to three years, but only for firms in the manufacturing industry. This research study shows that C2C length affects a firm’s current financial performance and managers should view C2C management as an important strategic tool. However, the authors caution that C2C management is not a “one size fits all” strategy and managers in smaller firms should pay close attention to their C2C cycle. The authors also show that firms in manufacturing industry will specifically benefit financially over long-term from C2C management. This article complements existing literature that examines the impact of working capital management on a firm’s financial performance and extends the literature by examining such relationship for different industries and firm sizes. Although the authors include various factors (e.g., firm size, leverage, growth, industry, year, and past performance) in regressions to control for observable differences among firms, there might be other unobservable differences that may have an effect on the results documented.
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The goal of this chapter is to reexamine the nature and structure of the military–industrial complex (MIC) through the works of John Kenneth Galbraith. MIC, or military power as…
Abstract
The goal of this chapter is to reexamine the nature and structure of the military–industrial complex (MIC) through the works of John Kenneth Galbraith. MIC, or military power as he prefers, is a coalition of vested interests within the state and industry that promoted the military power in the name of “national security” for their interests. Galbraith’s theory of giant corporations helps us understand the role of military corporations in the MIC. Moreover, he is a critical scholar in examining this topic because he was a political insider in the Roosevelt, Kennedy, and Johnson administrations and a prominent public intellectual against the Vietnam War. Against this background, this chapter has three parts. After explaining the development of military Keynesianism with respect to the main economic thoughts, it examines the history of the MIC and its impact on economic priorities during and after the Cold War through Galbraith’s works. Finally, this chapter discusses MIC’s relevancy today and evaluates Galbraith’s prophecies.
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Corey R. Payne and Beverly J. Silver
Many analyses point to Trump's behavior on the world stage – bullying and racketeering more reminiscent of a mafioso than a statesman – as a personal character flaw. We argue…
Abstract
Many analyses point to Trump's behavior on the world stage – bullying and racketeering more reminiscent of a mafioso than a statesman – as a personal character flaw. We argue that, while this behavior was shocking in how unvarnished it was, Trump marks the culmination of a decades-long trend that shifted US foreign policy from a regime of “legitimate protection” in the mid-twentieth century to a “protection racket” by the turn of the twenty-first. While the temperaments of successive presidents have mattered, the problems facing the United States and its role in the world are not attributable to personalities but are fundamentally structural, in large part stemming from the contradictions of US attempts to cling to preeminence in the face of a changing global distribution of power. The inability of successive US administrations – Trump and Biden included – to break out of the mindset of US primacy has resulted in a situation of “domination without hegemony” in which the United States plays an increasingly dysfunctional role in the world. This dynamic has plunged the world into a period of systemic chaos analogous to the first half of the twentieth century.
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Tânia Marques, Isabel Suárez‐González, Pedro Pinheiro da Cruz and Manuel Portugal Ferreira
The extant scholarly research has been delving into several effects of downsizing, such as job insecurity, organizational commitment and innovative behavior. The purpose of this…
Abstract
Purpose
The extant scholarly research has been delving into several effects of downsizing, such as job insecurity, organizational commitment and innovative behavior. The purpose of this paper is to develop a model proposing organizational commitment as a mediator between job insecurity and innovative behavior. Downsizing survivors – or the individuals who remain when others exit a firm – may have higher job insecurity and lower organizational commitment post‐downsizing, thus lowering their innovative efforts.
Design/methodology/approach
The authors collected 224 questionnaires from Portuguese employees and analyzed simultaneous relations with a structural equation modeling.
Findings
The analysis of mediating effects suggests that the lack of commitment is not a mediating construct between job insecurity and innovative behavior. However, downsizing directly affects both organizational commitment and innovative behavior.
Practical implications
The innovative behavior seems to be directly affected by job insecurity, raising implications regarding the use of downsizing as a short‐term practice, without acknowledging the long‐term impact on organizational innovative capabilities.
Originality/value
The paper contributes by testing the moderating role of organizational commitment in the relationship between job insecurity and innovative behaviors.
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This paper aims to provide a case study of complex conflict management within the arms race on the Korean Peninsula. Exploring the complex nexus of nuclear weapons, asymmetry and…
Abstract
Purpose
This paper aims to provide a case study of complex conflict management within the arms race on the Korean Peninsula. Exploring the complex nexus of nuclear weapons, asymmetry and a qualitative arms race, the study explains how the arms race between Seoul and Pyongyang has promoted stability on the Korean Peninsula.
Design/methodology/approach
Presenting the limits of arguments that the US security guarantee is the factor that saved the two Koreas from going to war again, this paper explores the utility of the inter-Korean arms race as a stabilizer that promotes indirect negotiations. While presenting Korean anomalies, this paper analyzes the three stages of the inter-Korean arms race – especially its nuclear weapons, its asymmetry and the nature of arms races – and provides extant explanations on the causes and consequences of the qualitative arms race. These key elements drive the states’ strategic motives.
Findings
Using the case of the inter-Korean qualitative arms race and US extended nuclear deterrence on the Korean Peninsula, the study shows the complexities of conflict management today. This paper identifies three contributing factors – US nuclear weapons, asymmetry and the qualitative characteristic of the arms race – to explain the enduring stability on the peninsula despite the arms race’s intensification. The paper finds that although US nuclear-extended deterrence plays a critical role, it does not capture the full context of the ongoing, dynamic inter-Korean arms race; a prolonged arms race between the two Koreas has become a new regularity; the qualitative characteristic of the inter-Korean arms race, which is driven by technological advancement, contributes to stability in the arms race; and as the constant mismatch in priority technologies becomes more severe, the changes to the existing asymmetry could increase instability.
Originality/value
This paper offers a diverse perspective to the literature on conflict management and captures the complexities of 21st-century conflict management. Through a thorough examination of the inter-Korean arms race, it brings readers’ attention to the nested dynamics within the arms race and shows how an intensifying arms race can promote stability. Furthermore, the paper explains the implications for potential instability – fueled by the comprehensive mix of a dynamic qualitative arms race and the US extended nuclear deterrence – in the Indo-Pacific region.