Working Papers 2011
11/7 SME's environmental CSR investment: evaluation, decision and implication.
Farrah Merlinda Muharam, Maria Antonia Tarrazon
11/6 Determinants of acquisition completion: A relational perspective.
Ruth V. Aguilera, John C. Dencker
Abstract: The strategic literature on relatedness in the context of mergers and acquisitions (M&As) is extensive, yet we know little about whether or how relatedness has an influence on the announcement to completion stage of the M&A process. Drawing on research on intra-industry competition and relational capabilities, we seek to shed light on the relatedness debate by examining the strategic forces that affect the completion of an announced related M&A, accounting for financial and organizational factors. We also explore additional strategic forces that might amplify or attenuate the negative effect of relatedness on deal completion. We test and find support for our hypotheses using longitudinal data from a sample of the largest M&A announcements in the world from 1991 to 2001.
11/5 Social capital and the equilibrium number of entrepreneurs.
Vicente Salas-Fumás, J. Javier Sánchez-Asin
Abstract: Social capital is viewed either as a proprietary asset that serves private interests, including those of entrepreneurs, or as a collective asset that supports trust-based transactions saving on transaction costs both in markets and within the boundaries of firms, and benefiting society as a whole. This paper explains the relative specialization between entrepreneurs and market-governed exchanges as a result of the interaction between social capital that lowers transaction costs, and the scale economies of ability in managerial jobs (Lucas 1978). The main hypothesis formulated in the paper is that higher social capital will benefit the hierarchy relatively more than the market as a governance mechanism, and therefore in economies with higher social capital, the equilibrium number of entrepreneurs will be lower and their average span of control larger than in economies with lower social capital. The empirical evidence, with data from the Spanish Autonomous Communities, is consistent with this prediction.
Keywords: Social capital; entrepreneurship; entrepreneurial skills; occupational choice; self-employment; organization of firms.
11/4 Can organizational commitment be experienced by indivuals
pursuing contemporary career paths?
Mihaela Enache, José M. Sallan, Pep Simo, Vicenc Fernández
Abstract: In a context in which organizations can no longer promise life-time employment and individuals increasingly experience inter-organizational mobility, this study tackles the question of whether organizational commitment is no longer related to new career orientations. To this end, it analyzes the relation between the underlying dimensions of protean (self direction and values driven) and boundaryless (boundaryless mindset and organizational mobility preference) career attitudes (Briscoe et al., 2006) and organizational commitment, within today's unstable and uncertain business scenario. Research results suggest that protean career attitudes contribute significantly to individuals emotional attachment to their employing organization. Furthermore, organizational mobility preference was found to be significant in predicting both affective and continuance commitment. Finally, future research suggestions and practical implications associated with the current study are provided.
Keywords: organizational commitment; boundaryless career; protean career.
11/3 Portafolio selection with skewness: A comparison of methods and a generalized two fund separation result.
Walter Briec, Kristiaan Kerstens, Ignace Van de Woestyne
Abstract: This contribution compares existing and newly developed techniques for geometrically representing mean-variance-skewness portfolio frontiers based on the rather widely adapted methodology of polynomial goal programming (PGP) on the one hand and the more recent approach based on the shortage function on the other hand. Moreover, we explain the working of these different methodologies in detail and provide graphical illustrations. Inspired by these illustrations, we prove a generalization of the well-known two fund separation theorem from traditional mean-variance portfolio theory.
Keywords: shortage function, PGP, efficient frontier, mean-variance, mean-varianceskewness
11/2 Place Marketing Performance: Benchmarking European Cities as Business Destinations.
Albena Pergelova, Luis Fernando Angulo Ruiz
Abstract: The aim of this study is to develop a model measuring the performance of cities' marketing efforts. The model and the benchmarking methodology presented can be used by local authorities to position their marketing efforts and achievements against other (competing) cities and to identify best practices that can assist place marketers in learning how to be more efficient obtaining desired place marketing results, e.g., improved city brand image, with the available resources/budgets. The major implication for practitioners is that place marketing should be managed as a process, taking into account both the resource flows and the outputs, as well as the efficiency of this process.
Keywords: City brands, Performance of Place Marketing, Benchmarking, European Cities, Efficiency.
11/1 Behavioral aspects of investment fund?s markets: Are good
managers lucky or skilled?
Sílvia Bou, Magda Cayón
Abstract: It is generally accepted that financial markets are efficient in the long run although there may be some deviations in the short run. It is also accepted that a good portfolio manager is the one who beats the market persistently along time, this type of manager could not exist if markets were perfectly efficient.
According to this in a pure efficient market we should find that managers know that they cannot beat the market so they would undertake only pure passive management strategies. Assuming a certain degree of inefficiency in the short run, a market may show some managers who try to beat the market by undertaking active strategies. From Fama's efficient markets theory we can state that these active managers may beat the market occasionally although they will not be able to enhance significantly their performance in the long run. On the other hand, in an inefficient market it would be expected to find a higher level of activity related with the higher probability of beating the market.
In this paper we follow two objectives: first, we set a basis to analyse the level of efficiency in an asset investment funds market by measuring performance, strategies activity and it's persistence for a certain group of funds during the period of study. Second, we analyse individual performance persistence in order to determine the existence of skilled managers.
The CAPM model is taken as theoretical background and the use of the Sharpe's ratio as a suitable performance measure in a limited information environment leads to a group performance measurement proposal. The empirical study takes quarterly data from 1999-2007 period, for the whole population of the Spanish asset investment funds market, provided by the CNMV (Comisión Nacional del Mercado de Valores). This period of study has been chosen to ensure a wide enough range of efficient market observation so it would allow us to set a proper basis to compare with the following period.
As a result we develop a model that allows us to measure efficiency in a given asset mutual funds market, based on the level of strategy's activity undertaken by managers.
We also observe persistence in individual performance for a certain group of funds.
Keywords: Investment Funds, Managerial behaviour, Market efficiency, Luck versus Skill.