From Value Protection to Value Creation: Rethinking Corporate Governance Standards for Firm Innovation

A company’s pro-innovation needs are often met by the exploitation of its resources, widely defined. The resource-based theory of the firm provides immense empirical insights into how a firm’s corporate governance factors can contribute to promoting innovation. However, these implications may conflict with the prevailing standards of corporate governance imposed on many securities markets for listed companies, which have developed based on theoretical models supporting a shareholder-centered and agency-based theory of the firm. Although prevailing corporate governance standards can to an extent support firm innovation, tensions are created in some circumstances where companies pit their corporate governance compliance against resource-based needs that promote innovation. In the present context of steady internationalization and convergence in corporate governance standards in global securities markets towards a shareholder-centered agency-based model, we argue that there is a need to provide some room for accommodating the resource-based needs for companies in relation to promoting innovation. We explore a number of options and suggest that the most practicable option would be the development of recognized exceptions that deviate from prevailing corporate governance standards. We further suggest as to how an exceptions-based regime can be implemented in the U.K. and U.S., comparing the rules-based regime in the U.S. with the principles-based regime in the U.K

The aurora as a source of planetary-scale waves in the middle atmosphere

Photographs of global-scale auroral forms taken by scanning radiometers onboard U.S. Air Force weather satellites in 1972 show that auroral bands exhibit well-organized wave motion with typical zonal wave number of 5 or so. The scale size of these waves is in agreement with that of well-organized neutral wind fields measured by the 1967-50B satellite in the 150- to 220-km region during the geomagnetic storm of May 27, 1967. The horizontal scale size revealed by these observations is in agreement with that of high-altitude traveling ionospheric disturbances. It is conjectured that the geomagnetic storm is a source of planetary and synoptic scale neutral atmospheric waves in the middle atmosphere. The possible existence of a source of waves of the proper scale size to trigger instabilities in middle atmospheric circulation systems may be significant in the study of lower atmospheric response to geomagnetic activity

Effects of turbulence on a kinetic auroral arc model

A plasma kinetic model of an inverted-V auroral arc structure which includes the effects of electrostatic turbulence is proposed. In the absence of turbulence, a parallel potential drop is supported by magnetic mirror forces and charge quasi neutrality, with energetic auroral ions penetrating to low altitudes; relative to the electrons, the ions' pitch angle distribution is skewed toward smaller pitch angles. The electrons energized by the potential drop form a current which excites electrostatic turbulence. In equilibrium the plasma is marginally stable. The conventional anomalous resistivity contribution to the potential drop is very small. Anomalous resistivity processes are far too dissipative to be powered by auroral particles. It is concluded that under certain circumstances equilibrium may be impossible and relaxation oscillations set in

Auroral magnetosphere-ionosphere coupling: A brief topical review

Auroral arcs result from the acceleration and precipitation of magnetospheric plasma in narrow regions characterized by strong electric fields both perpendicular and parallel to the earth's magnetic field. The various mechanisms that were proposed for the origin of such strong electric fields are often complementary Such mechanisms include: (1) electrostatic double layers; (2) double reverse shock; (3) anomalous resistivity; (4) magnetic mirroring of hot plasma; and (5) mapping of the magnetospheric-convection electric field through an auroral discontinuity

Statistical Modelling of Information Sharing: Community, Membership and Content

File-sharing systems, like many online and traditional information sharing communities (e.g. newsgroups, BBS, forums, interest clubs), are dynamical systems in nature. As peers get in and out of the system, the information content made available by the prevailing membership varies continually in amount as well as composition, which in turn affects all peers' join/leave decisions. As a result, the dynamics of membership and information content are strongly coupled, suggesting interesting issues about growth, sustenance and stability. In this paper, we propose to study such communities with a simple statistical model of an information sharing club. Carrying their private payloads of information goods as potential supply to the club, peers join or leave on the basis of whether the information they demand is currently available. Information goods are chunked and typed, as in a file sharing system where peers contribute different files, or a forum where messages are grouped by topics or threads. Peers' demand and supply are then characterized by statistical distributions over the type domain. This model reveals interesting critical behaviour with multiple equilibria. A sharp growth threshold is derived: the club may grow towards a sustainable equilibrium only if the value of an order parameter is above the threshold, or shrink to emptiness otherwise. The order parameter is composite and comprises the peer population size, the level of their contributed supply, the club's efficiency in information search, the spread of supply and demand over the type domain, as well as the goodness of match between them.Comment: accepted in International Symposium on Computer Performance, Modeling, Measurements and Evaluation, Juan-les-Pins, France, October-200