Existing literature claims that performance fees induce excessive risk-taking behavior from hedge fund managers because higher risk increases the value of the performance fee option. In this paper it is argued that the relationship between investors and hedge fund managers is similar to the relationship between shareholders and corporate managers. Principal-agent theory is applied to this issue which shows that the performance of hedge funds and the payoff of the performance fee contract are endogenously...

This study examines the relationship between acquiring firms’ managerial ability and their decisions on mergers and acquisitions (M&As). Using M&A data for a sample of US firms from 2000 to 2012, the authors hypothesize and find that when the acquiring firm’s managerial ability is greater, the probability of engaging in M&As and the likelihood of committing serial M&As are both higher. The authors also find that firms with high managerial ability are more likely to enter into...

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Over the past few years, retailers and manufacturers alike are increasing the attention and resources allocated to the practice of shopper marketing with the aim of influencing consumers “in shopping mode”, when they are prepared to make a choice, along and beyond the entire path-topurchase. Environmental changes, specifically the economic crisis and the growing penetration of digital technologies, have produced significant changes in shopping habits designed to gradually reduce the effectiveness...

This paper analyzes the relationship between the financial performance of multinational enterprises and the international transfer of environmental management practices. The data used are obtained from two sources: Nihon Keizai Shimbun’s NEEDS for financial data and transfer data from a questionnaire survey conducted in Vietnam. The ordinary least square method is used for analysis. We examine the hypothesis that higher performance of a firm is positively related to higher transfer of...

Despite the growth and importance of NPOs as international business actors, internationalization of the nonprofit sector has been rarely studied, and the concept remains relatively absent from the mainstream management literature. The study examined the impact of target country risk and institutional structure using over six thousand decision alternatives faced by 32 non-profit organizations in their international market selection efforts. The subsequent logistic regression analysis revealed that...

Few studies explore the relations between early stage project-management performance and the cost performance of capital projects at completion. This longitudinal study of 102 capital projects reveals that the relations between early project-management performance and project-cost performance are indeed significant. Our research findings suggest that when Communication, Team, Scope, and Innovation variables perform well in the initiation and planning phases of a project, the project is more likely...

The impact of export commodity prices, which are essentially exogenous, on the AUD/USD exchange rate is investigated. We use a Markov Regime Switching model to identify significant structural breaks endogenously. In this framework, the effect of four commodity sub-indices as generally favoured by the Reserve Bank of Australia is explored. These are Rural, Non-Rural, Base Metal and Bulk Commodities. The aim is to find, if any, state contingent explanatory power of these sub-indices on the changes...

In an effort to gain access to United States capital markets, a “reverse merger” (RM) allows a private company to assume the exchange listing of a public company, without the additional time, risk, expense or SEC scrutiny associated with a traditional IPO. RMs initiated by Chinese firms represent the vast majority of foreign RM transactions. This paper studies these Chinese firms’ characteristics and relative operating performance prior to coming to the U.S. and after being listed on...

Political scientists recognize that different types of democracies produce different policy outcomes. Relative to majoritarian polities, proportional systems provide more support for programs with broad-based benefits. We examine whether this holds true for critical goods. We provide a model showing why market forces may not ensure access to critical goods. Individuals “under-consume” when times are good. Their myopia leads to a shortage of the critical good when times are bad. Thus,...