Writing effective managerial contracts is far from easy. Compensation committees must allocate incentives where they are most needed, while simultaneously being careful not to induce behaviours that would be detrimental to shareholders or imposing an inordinate amount of risk on managers. In a recent paper, I specifically focus on this second problem, that of reducing the risk borne by […]
People may associate political correctness with conformity but our research finds it also correlates with creativity in work settings. Imposing a PC norm into a work environment — a norm that sets clear expectations of how women and men should interact with each other — unexpectedly encourages creativity among mixed-sex work groups by reducing uncertainty in relationships.
The study highlights […]
Economic literature suggests that non-profit organisations have an economic advantage over for-profits because they are able to use volunteers for parts of their activities more easily. In fact, for some non-profit organisations volunteer work can be regarded as a major labour source. The Institute for Volunteering Research estimates that 27 percent of the population 16+ in the UK volunteers […]
The Future of the Professions: How Technology Will Transform the Work of Human Experts – Book Review
The Future of the Professions: How Technology Will Transform the Work of Human Experts. Richard Susskind and Daniel Susskind. Oxford University Press. 2015.
We’ve grown accustomed to the decaying hulls of factories and abandoned shopping centres. We’ve begun to see the hollowing out of suburban office parks and we can even envision being transported by fleets of robot taxis. Yet […]
The field of international business has long adopted the view that multinational enterprises (MNEs) may be represented as networks of activities connected via knowledge and product flows. The major determinants of efficient location choices are considered to be proximity to markets, resources and suppliers.
There are two standard approaches to modelling MNEs’ location choices. The first attempts to minimize total […]
Demonstrating performance and productivity gains to organisations from investments in information technology (IT) continues to be challenging. The notions of the productivity paradox (the main idea in Erik Brynjolfsson ‘s famous 1993 CACM Magazine article discussing the paradox between technological advances and the relatively slow growth of productivity) and IT Doesn’t Matter (Nicholas Carr’s widely-discussed Harvard Business Review article […]
The ultimate rationale of banking union
Banking union was conceived as a reply to one of the root causes of the European debt crisis: the sovereign-bank loop. To break the loop, euro-area leaders decided to move responsibility for banking supervision and resolution to the European level.
Banking union consists of the SSM (Single Supervisory Mechanism) and the SRM (Single Resolution Mechanism). […]
Choosing which markets to compete in is one of the most critical decisions business leaders make. Several studies have demonstrated that more than half of a company’s long-term growth and value creation depend on being in the right markets. It is also a difficult decision and hence could well be a source of strategic advantage.
Committing to one market and […]
The sub-Saharan Africa region is facing severe shocks associated with the steep decline in commodity prices and tightening global financial conditions. Against this background, it’s a good time to look back at the region’s recent growth experience and examine the relationship between growth rates and competitiveness. The extent to which sub-Saharan African companies are able to compete against their […]
Technology is widely considered the main source of economic progress, but it has generated cultural anxiety throughout history. In a recent paper, we place today’s angst about technological change in a historical context. In particular, we study three prominent concerns: (1) Will technological progress cause a substitution of machines for labour and lead to widespread unemployment; (2) Will technology […]
Better Bankers, Better Banks: Promoting Good Business through Contractual Commitment. Claire A. Hill and Richard W. Painter. University of Chicago Press. 2015.
History is marked by many turning points which we may call critical junctures. The global financial crisis has been one example. The crisis underscored various deficiencies in the financial and banking sectors as well as with the regulatory […]
When we read about youth, titles like Generation X, Generation Me and Arrested Adulthood tend to paint an alarming picture of the younger generation in their 20s as directionless, floundering, and less likely than previous generations to become mature and productive citizens. In contrast, books like The Boomerang Age and Emerging Adulthood argue that more recent socio-demographic trends indicative […]
Debt maturity represents an important dimension of corporate financing policies. Inferior debt maturity structure can lead to suboptimal liquidation of the firm. The impact of firm characteristics on the choice of debt maturity structure is well understood. More recently, studies have turned to examine how the personal characteristics of corporate executives affect debt maturity decisions. This makes intuitive sense […]