Moral hazard and dynamics of insider ownership stakes

In this paper, I analyze the ownership dynamics of N strategic risk-averse corporate insiders facing a moral hazard problem. A solution for the equilibrium share price and the dynamics of the aggregate insider stake is obtained in two cases: when agents can credibly commit to an optimal ownership policy and when they cannot commit (time-consistent case). In the latter case, the aggregate stake gradually adjusts towards the competitive allocation. The speed of adjustment increases with N when outside investors are risk-averse, and does not depend on it when investors are risk-neutral. Predictions of the model are consistent with recent empirical findings.Corporate insiders, moral hazard, ownership dynamics

Employee Stock Ownership and Financial Performance in European Countries: The Moderating Effects of Uncertainty Avoidance and Social Trust

This study investigates how the effect of employee stock ownership on financial performance may hinge on the diverse cultural and societal contexts of European countries. Based on agency and national culture theories, we hypothesize that the positive relationship between employee stock ownership and return on assets (ROA) is stronger in those nations with lower uncertainty avoidance and higher social trust. Using a multisource, time‐lagged, large‐scale dataset of 1,741 firms from 21 countries in Europe, our multilevel, random coefficient modeling analysis found evidence for these hypotheses, suggesting that uncertainty avoidance and social trust serve as important contextual cues in predicting the linkage between employee stock ownership and financial performance. Our supplemental analysis with distinction between the managerial and nonmanagerial employee stock ownership further indicates managerial employee stock ownership has a direct positive effect on ROA. Although nonmanagerial employee stock ownership had a nonsignificant association with ROA, the relationship was positive and significant when uncertainty avoidance was low and social trust was high. This research contributes to the existing literature by illuminating some of the contextual influences altering the effectiveness of employee stock ownership. Our findings also offer practical suggestions for effectively using employee stock ownership

Shifting Spatialities of Power: The Case of Australasian Aviation

This paper explores how different modalities, spatialities and scales of power operate in a geopolitical context. By tracing the dynamic and shifting economic geographies of state and firm power in the events leading up to the collapse of a major Australian firm, Ansett Airlines, it reveals the difference that place and position make to the creation and use of power. The paper stresses agents’ relational positioning, their ‘places’ in multiple networks of association and the ways in which their past actions and visions of the future condition their strategic options. The paper contextualises the workings of power and explores how power relationships are re-configured in specific contested events. It concludes that power cannot be separated from the spatial and temporal dimensions of actual contexts, from actor’s positions in contexts, or from their strategic objective

Product Service Systems Users and Harley Davidson Riders: the importance of consumer identity in the diffusion of sustainable consumption solutions

This paper sets out an approach to researching socio-cultural aspects of Product Service Systems (PSS) consumption in consumer markets. PSS are relevant to Industrial Ecology as they may form part of the mix of innovations that move society toward more sustainable material and energy flows. The paper uses two contrasting case studies drawing on ethnographic analysis, Harley Davidson motorcycles and Zip Car Car Club, one a case of consumption involving ownership, the other without. The analysis draws on Consumer Culture Theory to explicate the socio-cultural, experiential, symbolic and ideological aspects of these case studies, focusing on product ownership. The paper shows that ownership of Harley Davidson motorcycles enables riders to identify with a brand community and to define themselves. Owners appropriate their motorcycles through customization. In contrast, Zip Car users resist the company’s attempts to involve them in a brand community, see use of car sharing as a temporary fix and even fear contamination from shared use of cars. We conclude that iconic products such as Harley Davidson motorcycles create emotional attachment and can challenge PSS propositions. But we also suggest that somewhat standardized products may present similar difficulties. Knowing more about socio-cultural aspects of PSS may help designers overcome these difficulties

PSS Users and Harley Davidson Riders: : The importance of consumer identity in the diffusion of sustainable consumption solutions

This is the peer-reviewed version of the following article: Catulli, M., Cook, M. and Potter, S. (2016), ‘Product Service Systems Users and Harley Davidson Riders: The Importance of Consumer Identity in the Diffusion of Sustainable Consumption Solutions’, Journal of Industrial Ecology, which has been published in final form at 10.1111/jiec.12518. Under embargo. Embargo end date: 2 December 2018. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. © 2016 by Yale UniversityThis paper sets out an approach to researching socio-cultural aspects of Product Service Systems (PSS) consumption in consumer markets. PSS are relevant to Industrial Ecology as they may form part of the mix of innovations that move society toward more sustainable material and energy flows. The paper uses two contrasting case studies drawing on ethnographic analysis, Harley Davidson motorcycles and Zip Car Car Club. The analysis draws on Consumer Culture Theory to explicate the socio-cultural, experiential, symbolic and ideological aspects of these case studies, focusing on product ownership. The paper shows that ownership of Harley Davidson motorcycles enables riders to identify with a brand community and to define themselves. Owners appropriate their motorcycles through customization. In contrast, Zip Car users resist the company’s attempts to involve them in a brand community, see use of car sharing as a temporary fix and even fear contamination from shared use of cars. We conclude that iconic products such as Harley Davidson motorcycles create emotional attachment and can challenge PSS propositions. But we also suggest that somewhat standardized products may present similar difficulties. Knowing more about socio-cultural aspects of PSS may help designers overcome these difficulties.Peer reviewedFinal Accepted Versio

Social Equity Impacts of Congestion Management Strategies

This white paper examines the social equity impacts of various congestion management strategies. The paper includes a comprehensive list of 30 congestion management strategies and a discussion of equity implications related to each strategy. The authors analyze existing literature and incorporate findings from 12 expert interviews from academic, non-governmental organization (NGO), public, and private sector respondents to strengthen results and fill gaps in understanding. The literature review applies the Spatial – Temporal – Economic – Physiological – Social (STEPS) Equity Framework (Shaheen et al., 2017) to identify impacts and classify whether social equity barriers are reduced, exacerbated, or both by a particular congestion mitigation measure. The congestion management strategies discussed are grouped into six main categories, including: 1) pricing, 2) parking and curb policies, 3) operational strategies, 4) infrastructure changes, 5) transportation services and strategies, and 6) conventional taxation. The findings show that the social equity impacts of certain congestion management strategies are not well understood, at present, and further empirical research is needed. Congestion mitigation measures have the potential to affect travel costs, commute times, housing, and accessibility in ways that are distinctly positive or negative for different populations. For these reasons, social equity implications of congestion management strategies should be understood and mitigated for in planning and implementation of these strategies

The impacts of tourism on two communities adjacent to the Kruger National Park, South Africa

This paper explores the socioeconomic impacts of tourism associated with the Kruger National Park, South Africa's flagship national park, on the neighbouring villages of Cork and Belfast. Case study research, where the study area was characterised as a social-ecological system, was used to investigate the impacts of Park tourism on these communities. The findings offer a micro-scale, local community perspective of these impacts and indicate that the enclave nature of Park tourism keeps local communities separate from the Park and makes it hard for them to benefit from it. The paper concludes with reflections on this perceived separation, and suggests the need to make the Park boundaries more 'permeable' so as to improve relationships with adjacent communities, while also pragmatically managing community expectation

Property Beyond Exclusion

Property rights have long been associated with a simple and distinctive technology: exclusion. But technologies can become outdated as conditions change, and exclusion is no exception. Recent decades have featured profound changes that have made exclusion a less useful, less necessary, and more expensive way of regulating access to resources. This Article surveys the prospects for a post-exclusion understanding of real and personal property. It proceeds from the premise that property is built upon complementarities, the nature and scale of which have undergone seismic shifts. Physical boundaries and lengthy claims on resources are designed to group complementary elements together in time and space in order to generate value. But many of the most important complementarities are now found not within a given owner’s holdings but among the holdings of different owners. Moreover, as slices of on-demand access increasingly replace lumpy long-term possessory interests, the presumed strong complementarity associated with temporal continuity and spatial contiguity begins to break down. This Article shows how these trends have made property lines an increasingly poor mechanism for grouping together complements. It then considers how property rights might move beyond exclusion, and addresses some implications and objections

Contemporary theatre and the experiential

In the context of the blurring of boundaries between club and theatre, game and theatre, and party and theatre, experiential spectatorship is spilling into the mainstream. This article starts from the recognition of the rapid rise of the experience economy as a turning point in consumer culture towards a specific appeal to the sensory body. The definition of experience in this analysis is key and a distinction is made between experience as it passes moment by moment, erlebnis, and experience as something that is cumulatively built up over time, erfahrung. This paper asks, in a society defined by the crisis of experience, does this rise of the experiential in theatre simply reflect the reduction of experience to a series of consumable sensory moments or is there a mode of experience modelled through performance interaction which moves both beyond this established mode of experience and also beyond the notion of experience as cumulatively formed wisdom (erfahrung)? Drawing a parallel between established popular cultural practices of the body and those of the spectator in spectacular promenade performance, Fuerzabruta is used as an illustrative example of popular experiential performance and Hwang’s The Road as an example of experiential performance in which a transformative aesthetic is made possible