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The purpose of this paper is to examine the risk‐incentive effect of CEO stock options in the banking industry.

For a sample of industrial mergers, Williams and Rao find that the risk‐incentive effect of CEO stock options is associated with higher post‐merger risk. This result indicates that stock options may be effective in mitigating the agency problem of Jensen and Meckling wherein managers take too little risk on behalf of shareholders. The authors extend the method of Williams and Rao to the banking industry. In particular, they are interested in determining whether the same relationship holds for these highly regulated and leveraged firms.

Using a sample of 131 bank mergers that took place between 1993 and 2002, the authors determine that the risk‐incentive effect of CEO stock options is positively related to the post‐merger level of equity risk. The results of this study also show that the interaction of size and the risk‐incentive effect is negatively related to volatility following the merger, which agrees with the original study.

This paper extends the literature by examining an industry that is largely ignored because of its highly regulated nature.

The purpose of this paper is to review and summarize research into managerial incentives, merger activity, performance, and the use and structure of compensation to mitigate agency problems in the firm.

The authors discuss studies of size elasticity and compensation, pay for performance, changes in managerial compensation due to merger activities, incentives and risk taking, and the relationship between managerial risk aversion and acquisitions.

The paper identifies several prominent themes in the literature. First, size and performance both appear to be positively related to managerial compensation. There appears to be a strong relation between pay and performance, but results depend upon whether the pay measure includes all forms of compensation. With mergers, any merger gains seem to accrue to the acquired firm. It appears that acquiring managers can increase their pay by merging with other firms, and this is likely to happen in cases where shareholder returns are negative. Regarding managerial risk taking and compensation, it is likely that the sensitivity of a manager's equity‐based compensation (options, in particular) to changes in the total risk of the firm is an indicator of how willing managers will be to seek out more risk on behalf of shareholders.

This paper synthesizes a large body of research into an organized discussion of the issues relating to merger activity, managerial incentives, compensation, and pay for performance issues.

The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.

This research provides accounting-ethics authors and administrators with a benchmark for accounting-ethics research. While Bernardi and Bean (2010) considered publications in business-ethics and accounting’s top-40 journals this study considers research in eight accounting-ethics and public-interest journals, as well as, 34 business-ethics journals. We analyzed the contents of our 42 journals for the 25-year period between 1991 through 2015. This research documents the continued growth (Bernardi & Bean, 2007) of accounting-ethics research in both accounting-ethics and business-ethics journals. We provide data on the top-10 ethics authors in each doctoral year group, the top-50 ethics authors over the most recent 10, 20, and 25 years, and a distribution among ethics scholars for these periods. For the 25-year timeframe, our data indicate that only 665 (274) of the 5,125 accounting PhDs/DBAs (13.0% and 5.4% respectively) in Canada and the United States had authored or co-authored one (more than one) ethics article.

Sexual sadism is a well-known risk factor for severe forms of sexual violence including sexual homicide and serial sexual homicide. The research is decidedly mixed about the association between sexual sadism and other, nonsexual forms of criminal conduct. The paper aims to discuss these issues.

Drawing on data from a census of 225 federal sex offenders from a jurisdiction in the Midwestern USA, the current study examined whether sexual sadism had a spillover effect into nonsexual crimes using correlation, ANOVA, and negative binomial regression models.

Sexual sadism was strongly associated with diverse forms of nonsexual criminal behavior, and sexual sadists had more extensive and versatile criminal careers than sex offenders without a formal diagnosis.

Practitioners should be aware of sexual sadism as a criminogenic risk factor. Sexual sadism is associated with sexual deviance and sexual violence. Sexual sadism also has spillover effects where it is associated with nonsexual offending.

Sexual sadism can be a useful risk factor for other forms of crime and recidivism and has broad application in applied correctional and research settings.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

This is the first volume of Advances in International Management under the new editorial team of Timothy Devinney, Torben Pedersen and Laszlo Tihanyi. We hope to continue the tradition established by our predecessors, Joseph Cheng and Michael Hitt, and also will work to bring a new perspective to the series. It is our intention to use the series less as a journal or book series and more as a forum for ideas and discussion – a view that builds on the tradition of the series but also aims to put it in juxtaposition to traditional publication outlets.

As organizations have expanded globally, control mechanisms utilized in the past may need to be supplemented with a new type of personnel, that of the inpatriate. Expatriates were the most widely used staffing for corporate control, but due to various issues, a complementary set of employees to facilitate corporate goals could be utilized. Inpatriation, as a practical and conceptual means to augment expatriation, is discussed, compared with, and contrasted to, expatriation. This research explores the use of inpatriates in facilitating global control.

The purpose of this paper is to provide an understanding on the impact of quality management (QM) tools and techniques in water supply infrastructure maintenance and the generation of non-revenue water (NRW) by Namibian Municipal Water Distributors.

In-depth interviews were selected as the primary data collection method, while secondary data were collected using document review and observations. In-depth interviews as primary method provided rich data and details on the subject matter from the respondents. Document review and observations provided a holistic perspective and understanding of the context within which the maintenance projects are handled by municipal water distributors.

The study found that as the number of QM tools employed to analyze maintenance data increases, the generation of NRW by the municipality decreases. However, for the tools to be effective, they should cover applications such as problem identification, data analysis, process analysis, decision making, planning, quality control and statistical process control, this helped Namibian municipalities to produce low volumes of NRW. In contrast, municipalities using QM tools arbitrarily lead to high quantities of NRW generation.

The World Bank recommends that NRW should be less than 25 percent of the total water produced, while in many countries NRW is up to 60 percent. Developed economies have made efforts to reduce NRW but efforts are still at nascent stage in emerging economies. This is the first study providing evidences of QM tools application in maintenance process and effect on NRW.