Decision-making in international business

This paper distinguishes three domains of international business theory: the boundaries of the multinational enterprise, the external environment of the enterprise and its internal structure. The central concern of internalisation theory is the boundaries of the firm. Any general theory of international business must analyse the external environment and internal structure as well. Competition dominates the external environment whilst co-operation dominates internal structure. Different models of decision-making are required for each. Different theories of decision-making must therefore be integrated in order to transform internalisation theory into a general theory of international business. This paper examines how this can be done

Kin Selection and the Evolution of Social Information Use in Animal Conflict

Animals often use social information about conspecifics in making decisions about cooperation and conflict. While the importance of kin selection in the evolution of intraspecific cooperation and conflict is widely acknowledged, few studies have examined how relatedness influences the evolution of social information use. Here we specifically examine how relatedness affects the evolution of a stylised form of social information use known as eavesdropping. Eavesdropping involves individuals escalating conflicts with rivals observed to have lost their last encounter and avoiding fights with those seen to have won. We use a game theoretical model to examine how relatedness affects the evolution of eavesdropping, both when strategies are discrete and when they are continuous or mixed. We show that relatedness influences the evolution of eavesdropping, such that information use peaks at intermediate relatedness. Our study highlights the importance of considering kin selection when exploring the evolution of complex forms of information use

Motives for corporate cash holdings:the CEO optimism effect

We examine the chief executive officer (CEO) optimism effect on managerial motives for cash holdings and find that optimistic and non-optimistic managers have significantly dissimilar purposes for holding more cash. This is consistent with both theory and evidence that optimistic managers are reluctant to use external funds. Optimistic managers hoard cash for growth opportunities, use relatively more cash for capital expenditure and acquisitions, and save more cash in adverse conditions. By contrast, they hold fewer inventories and receivables and their precautionary demand for cash holdings is less than that of non-optimistic managers. In addition, we consider debt conservatism in our model and find no evidence that optimistic managers’ cash hoarding is related to their preference to use debt conservatively. We also document that optimistic managers hold more cash in bad times than non-optimistic managers do. Our work highlights the crucial role that CEO characteristics play in shaping corporate cash holding policy

Effect of resource spatial correlation and Hunter-Fisher-Gatherer mobility on social cooperation in Tierra del Fuego

This article presents an agent-based model designed to explore the development of cooperation in hunter-fisher-gatherer societies that face a dilemma of sharing an unpredictable resource that is randomly distributed in space. The model is a stylised abstraction of the Yamana society, which inhabited the channels and islands of the southernmost part of Tierra del Fuego (Argentina-Chile). According to ethnographic sources, the Yamana developed cooperative behaviour supported by an indirect reciprocity mechanism: whenever someone found an extraordinary confluence of resources, such as a beached whale, they would use smoke signals to announce their find, bringing people together to share food and exchange different types of social capital. The model provides insight on how the spatial concentration of beachings and agents’ movements in the space can influence cooperation. We conclude that the emergence of informal and dynamic communities that operate as a vigilance network preserves cooperation and makes defection very costly.MICINN http://www.idi.mineco.gob.es/ CSD2010-00034 (SimulPast CONSOLIDER-INGENIO 2010) and HAR2009-06996; the government of Castilla y Leónhttp://www.jcyl.es/ GREX251-2009; the Argentine CONICET http://www.conicet.gov.ar/PIP-0706; and the Wenner-Gren Foundation for Anthropological Researchhttp://www.wennergren.org/ "Social Aggregation: A Yamana Society's Short Term Episode to Analyse Social Interaction, Tierra del Fuego, Argentina". The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscrip

CEO Profile and Earnings Quality

This paper introduces the PSCORE, which aggregates nine personal characteristics of chief executive officers (CEOs), to signal the quality of earnings. The PSCORE is a composite score based on publicly available data on CEOs. The study reports strong positive relationships between the PSCORE and two different proxies for earnings quality, (i) discretionary accruals and (ii) financial statement errors, measured by deviations of the first digits of figures reported in financial statements from those expected by Benford’s Law. Further analyses indicate that the relationships between the PSCORE and the proxies for earnings quality become more pronounced when CEOs have high equity-based compensation incentives. The findings have some implications for practitioners

The Liability of Foreignness in International Equity Investments: Evidence from the U.S. Stock Market

Bok Baik, Jun-Koo Kang, Jin-Mo Kim, and Joonho Lee

The Shifting Structure of Agricultural R&D : Worldwide Investment Patterns and Payoffs

The future path and pace of agricultural productivity growth areinextricably intertwined with investments in food and agricultural research and development (R&D). Looking back over half a century of evidence, we find that the lay of the global food and agricultural R&D land is changing, with indications that we are in the midst of an historic transition. The more notable trends are as follows: (1) for the first time in modern history (in purchasing power parity, PPP, terms), the middle-income countries now outspend the rich countries in terms of public-sector investments in food and agricultural R&D; (2) the shifting public shares reflect a continuing decline in the rate of growth of food and agricultural R&D spending by the rich countries, along with a generally sustained and substantial growth in spending by the middle-income countries (especially China, India, and Brazil); (3) in PPP terms, China now spends more than the United States on both public- and private-sector food and agricultural R&D; (4) the global share of food and agricultural R&D being conducted by the private sector has increased, especially in the high- and rapidly growing middle-income countries; and (5) the low-income countries are losing ground and account for an exceptionally small share of global spending. The mean and median values of the reported rates of return to food and agricultural R&D based on the IRR are high and remain so, with no signs of a diminution in the payoffs to more recent (compared with earlier) investments in R&D. But the available evidence on the returns to food and agricultural R&D is not fully representative of the institutional (i.e., public versus private), locational, or commodity orientation of the research and the agricultural sector itself. The Shifting Structure of Agricultural R&D: Worldwide.... Available from: https://www.researchgate.net/publication/321253196_The_Shifting_Structure_of_Agricultural_RD_Worldwide_Investment_Patterns_and_Payoffs [accessed May 15 2018]