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Full-Text Articles in Business Administration, Management, and Operations

Not All Risk Is Born Equal: The Behavioral Agency Model & Firm Efficacy, Geoffrey P. Martin Dr, Nathan T. Washburn Dr, Marianna Makri Dr Dec 2013

Not All Risk Is Born Equal: The Behavioral Agency Model & Firm Efficacy, Geoffrey P. Martin Dr, Nathan T. Washburn Dr, Marianna Makri Dr

Geoffrey P Martin

We examine the relationship between agent (CEO) risk bearing and the quality of executive risk taking outcomes, by examining the contingency effect of CEO perceived firm efficacy. In doing so, we extend the behavioral agency model (BAM) beyond predictions of risk magnitude to examining how CEO risk taking outcomes differ qualitatively in response to risk bearing. We argue that CEO risk bearing (due to stock options or cash compensation) will positively influence performance outcomes in the presence of higher perceived firm efficacy. However, this positive influence reverses when efficacy is lower. We demonstrate the utility of firm efficacy in exploring …


Innovation, Proximity, And Knowledge Gatekeepers –Is Proximity A Necessity For Learning And Innovation?, Deogratias Harorimana Dr Jun 2013

Innovation, Proximity, And Knowledge Gatekeepers –Is Proximity A Necessity For Learning And Innovation?, Deogratias Harorimana Dr

Dr Deogratias Harorimana

Organisational desire for innovation and growth can be best achieved when they are in proximity. Geographical or technological proximity represent network structure in which a focal organisation is embedded, which has structural, cognitive and relational dimensions. Proximity influences innovation indirectly by its influence on agents’ ability to exchange and combine knowledge in four related ways: by giving access to exchange partners that provide opportunities for learning, increasing the anticipation of value, increasing the motivation to exchange, and by giving access to resources necessary for committing exchanges.


The Chicken Or The Egg? The Trade-Off Between Bank Fee Income And Net Interest Margins, Barry Williams, Gulasekaran Rajaguru Jun 2013

The Chicken Or The Egg? The Trade-Off Between Bank Fee Income And Net Interest Margins, Barry Williams, Gulasekaran Rajaguru

Gulasekaran Rajaguru

This study considers the time series relationship between bank fee income and bank net interest margins in Australia, applying panel vector autoregressions to a unique, hand-collected dataset. Increases in bank fee income are being used to supplement decreases in net interest margins. The increase in magnitude of fee income associated with reductions in margin income is smaller than the decrease in net interest margins, resulting in a net wealth transfer favouring users of bank services; although not all users of bank services gained and/or gained equally. The overall increase in fee income is marginally greater that the reduction in margin …


The Chicken Or The Egg? The Trade-Off Between Bank Fee Income And Net Interest Margins, Barry Williams, Gulasekaran Rajaguru Jun 2013

The Chicken Or The Egg? The Trade-Off Between Bank Fee Income And Net Interest Margins, Barry Williams, Gulasekaran Rajaguru

Barry Williams

This study considers the time series relationship between bank fee income and bank net interest margins in Australia, applying panel vector autoregressions to a unique, hand-collected dataset. Increases in bank fee income are being used to supplement decreases in net interest margins. The increase in magnitude of fee income associated with reductions in margin income is smaller than the decrease in net interest margins, resulting in a net wealth transfer favouring users of bank services; although not all users of bank services gained and/or gained equally. The overall increase in fee income is marginally greater that the reduction in margin …


The Impact Of Non Interest Income On Bank Risk In Australia, Barry Williams Jun 2013

The Impact Of Non Interest Income On Bank Risk In Australia, Barry Williams

Barry Williams

This paper considers the relationship between bank revenue composition and bank risk in Australia, using data drawn from Australian bank confidential regulatory returns. It is found that those banks with lower levels of non interest income and higher revenue concentration are less risky, contrary to mean-variance portfolio theory but consistent with previous international evidence. Decreasing returns to scale in bank risk is found, with results suggesting that the major Australian banks have reached the scale point where size is risk increasing. Non interest income is found to be risk increasing, but some evidence is found that trading and investment income …


Facilitating Successful Failures, Michelle M. Harner, Jamie Marincic Griffin Mar 2013

Facilitating Successful Failures, Michelle M. Harner, Jamie Marincic Griffin

Michelle M. Harner

Approximately 80,000 businesses fail each year in the United States. This article presents an original empirical study of over 400 business restructuring professionals focused on a critical, arguably contributing factor to these failures—the conduct of boards of directors and management. Anecdotal evidence suggests that management of distressed companies often bury their heads in the sand until it is too late to remedy the companies’ problems, a phenomenon commonly called “ostrich syndrome.” The data confirm this behavior, show a prevalent use of loss framing, and suggest trends consistent with prospect theory. The article draws on these data and behavioral economics to …