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Research Collection Lee Kong Chian School Of Business

2008

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Articles 31 - 60 of 89

Full-Text Articles in Business

Search For Optimal Ceo Compensation: Theory And Empirical Evidence, Melanie Cao, Rong Wang Jul 2008

Search For Optimal Ceo Compensation: Theory And Empirical Evidence, Melanie Cao, Rong Wang

Research Collection Lee Kong Chian School Of Business

We integrate an agency model with dynamic search equilibrium to study three important issues concerning executive compensation. We show that 1) the equilibrium pay-to-performance sensitivity depends positively on a firm’s specific risk, and negatively on its systematic risk, which offers a plausible explanation for the inconclusive empirical relationship between the pay-to-performance sensitivity and a firm’s total risk; 2) a growing economy simultaneously induces the growth in executive compensation and firm size; 3) the faster growth of executive compensation relative to the growth of firm size in the past decade is mostly due to the increase in firms’ specific risks.


Earnings Asymmetric Timeliness And Shareholder Distributions, Richard M. Frankel, Yan Sun, Rong Wang Jul 2008

Earnings Asymmetric Timeliness And Shareholder Distributions, Richard M. Frankel, Yan Sun, Rong Wang

Research Collection Lee Kong Chian School Of Business

We study whether more asymmetrically timely earnings constrain payouts to shareholders in the presence of bad news. Our goal is to provide evidence on the ex post contracting benefits of accounting conservatism. We distinguish between cash flow asymmetric timeliness and accrual asymmetric timeliness to examine how each relates to asymmetric sensitivity of shareholder payouts. We find that only the asymmetric timeliness of cash flows is significantly related to the asymmetric sensitivity of shareholder payouts. Other measures of conservatism (earnings skewness and accumulated nonoperating accruals) are also not significantly related to the sensitivity of shareholder payouts given bad news. These results …


Strategic Orientation Of High-Technology Firms In A Transitional Economy, Chung-Ming Lau, Daphne W. Yiu, Ping-Kwong Yeung, Yuan Lu Jul 2008

Strategic Orientation Of High-Technology Firms In A Transitional Economy, Chung-Ming Lau, Daphne W. Yiu, Ping-Kwong Yeung, Yuan Lu

Research Collection Lee Kong Chian School Of Business

Strategic orientation is a critical factor for a firm's competitiveness in a transitional economy context but it is understudied in the current literature. This article examines the antecedents of strategic orientation from both the socio-cognitive and resource-based view perspectives. The study posits that the strategic orientations of firms in a transitional economy context are influenced by the top managers' cognitions and organizational resources. Based on a national survey of high-technology firms in China, the study finds that a stronger market-focused strategic orientation was facilitated by managerial cognitions about the future of the industry and current operation and performance of the …


Employment And Market Innovation In Chinese Business Group Affiliated Firms: The Role Of Group Control Systems, Robert E. White, Robert E. Hoskisson, Daphne W. Yiu, Garry D. Bruton Jul 2008

Employment And Market Innovation In Chinese Business Group Affiliated Firms: The Role Of Group Control Systems, Robert E. White, Robert E. Hoskisson, Daphne W. Yiu, Garry D. Bruton

Research Collection Lee Kong Chian School Of Business

Prior research has suggested a number of potential benefits to firm membership in business groups. These benefits include availability of capital and other resources not readily accessible in an open market, the facilitation of entrepreneurship, plus information and risk sharing advantages. We suggest that another important benefit is the assistance of group control systems in helping the firm to manage conflicting pressures in the institutional environment and facilitate coevolution of these conflicting pressures. To empirically demonstrate the relevance of this viewpoint, we examine the case of China where business groups facilitate institutional transition, actively balancing market pressures to increase levels …


Explaining The Spatial Organization Of Creative Industries: The Case Of The U.S. Videogames Industry, F. Ted Tschang, Jan Vang Jul 2008

Explaining The Spatial Organization Of Creative Industries: The Case Of The U.S. Videogames Industry, F. Ted Tschang, Jan Vang

Research Collection Lee Kong Chian School Of Business

The paper presents a picture of the spatial location of the U.S. videogames industry as a broad range of clusters of different sizes, none of them dominant, then uses a variety of qualitative evidence (including interview and ethnographic) to illustrate a theory of how these variegated clusters have emerged and continue to persist, each in their own right. In effect, our main findings are that videogame clusters do not operate as other creative industry clusters, as described by the recent theories of buzz applied to other creative industries, nor by conventional linkage arguments (either to suppliers or financier-distributors). Rather, the …


The New Securocracy And The "Police Concept" Of Public Sector Worker Identity, Cliff Oswick, Stephen Matthias Harney, Gerard Hanlon Jul 2008

The New Securocracy And The "Police Concept" Of Public Sector Worker Identity, Cliff Oswick, Stephen Matthias Harney, Gerard Hanlon

Research Collection Lee Kong Chian School Of Business

In recent years we have seen the emergence of a "new securocracy," a generalization of responsibility for fighting terror within the public sector. Here we consider the nature and extent of this securocratic shift. In particular, the identity implications for the public sector worker are explored and we contend that there is an inherent tension between "serving" and "policing" the public in many public sector jobs. We also discuss the way in which a securocratic identity is simultaneously embraced and resisted. Finally, we present some tentative insights into an alternative way of thinking about identity work, which offers a means …


Broadening International Perspectives On The Legal Environment For Personnel Selection, Brett Myors, Filip Lievens, Greet Van Hoye, Steven F Cronshaw, Antonio Mladinic, Viviana Rodriguez, Herman Aguinis, Dirk D Steiner, Florence Rolland, Heinz Schuler, Andreas Frintrup, Ioannis Nikolaou, Maria Tomprou, S Subramony, Shabu B Raj, Shay Tzafrir, Peter Bamberger, Marilena Bertolino, Marco Mariani, Franco Fraccaroli Jun 2008

Broadening International Perspectives On The Legal Environment For Personnel Selection, Brett Myors, Filip Lievens, Greet Van Hoye, Steven F Cronshaw, Antonio Mladinic, Viviana Rodriguez, Herman Aguinis, Dirk D Steiner, Florence Rolland, Heinz Schuler, Andreas Frintrup, Ioannis Nikolaou, Maria Tomprou, S Subramony, Shabu B Raj, Shay Tzafrir, Peter Bamberger, Marilena Bertolino, Marco Mariani, Franco Fraccaroli

Research Collection Lee Kong Chian School Of Business

Perspectives from 22 countries on aspects of the legal environment for selection are presented. Issues addressed include a) whether there are racial/ethnic/religious subgroups viewed as “disadvantaged minority”, b) whether research documents mean differences between groups on individual difference measures relevant to job performance, whether there are laws prohibiting discrimination against specific groups, d) what is required to make and refute a claim of discrimination, e) what are the consequences of violation of the laws, f) whether particular selection methods are limited or banned, g) whether preferential treatment of members of minority groups is permitted, and h) whether the practice of …


From The Head And The Heart: Locating Cognition- And Affect-Based Trust In Managers' Professional Networks, Roy Y. J. Chua, Paul Ingram, Michael W. Morris Jun 2008

From The Head And The Heart: Locating Cognition- And Affect-Based Trust In Managers' Professional Networks, Roy Y. J. Chua, Paul Ingram, Michael W. Morris

Research Collection Lee Kong Chian School Of Business

This article investigates the configuration of cognition- and affect-based trust in managers' professional networks, examining how these two types of trust are associated with relational content and structure. Results indicate that cognition-based trust is positively associated with economic resource, task advice, and career guidance ties, whereas affect-based trust is positively associated with friendship and career guidance ties but negatively associated with economic resource ties. The extent of embeddedness in a network through positive ties increases affect-based trust, whereas that through negative ties decreases cognition-based trust. These findings illuminate how trust arises in networks and inform network research that invokes trust …


International Perspectives On The Legal Environment For Selection, Brett Myors, Filip Lievens, Steven F. Cronshow, E Schollaert, G Van Hoye, A Mladinic, V Rodriguez, H Aguinis, Dd Steiner, F Rolland, H Schuler, A Frintrup, I Nikolaou, M Tomprou, S Subramony, Sb Raj, S Tzafrir, P Bamberger, M Bertolino, M Mariani Jun 2008

International Perspectives On The Legal Environment For Selection, Brett Myors, Filip Lievens, Steven F. Cronshow, E Schollaert, G Van Hoye, A Mladinic, V Rodriguez, H Aguinis, Dd Steiner, F Rolland, H Schuler, A Frintrup, I Nikolaou, M Tomprou, S Subramony, Sb Raj, S Tzafrir, P Bamberger, M Bertolino, M Mariani

Research Collection Lee Kong Chian School Of Business

Perspectives from 22 countries on aspects of the legal environment for selection are presented in this article. Issues addressed include (a) whether there are racial/ethnic/religious subgroups viewed as "disadvantaged,'' (b) whether research documents mean differences between groups on individual difference measures relevant to job performance, (c) whether there are laws prohibiting discrimination against specific groups, (d) the evidence required to make and refute a claim of discrimination, (e) the consequences of violation of the laws, (f) whether particular selection methods are limited or banned, (g) whether preferential treatment of members of disadvantaged groups is permitted, and (h) whether the practice …


A Tale Of Two Prices: Liquidity And Asset Prices In Multiple Markets, Justin Sai Pang Chan, Dong Hong, Marti G. Subrahmanyam Jun 2008

A Tale Of Two Prices: Liquidity And Asset Prices In Multiple Markets, Justin Sai Pang Chan, Dong Hong, Marti G. Subrahmanyam

Research Collection Lee Kong Chian School Of Business

This paper investigates the liquidity effect in asset pricing by studying the liquidity-premium relationship of an American depositary receipt (ADR) and its underlying share. Using the [Amihud, Yakov, 2002. Illiquidity and stock returns: cross-section and time series effects. Journal of Financial Markets 5, 31-56] measure, the turnover ratio and trading infrequency as proxies for liquidity, we show that a higher ADR premium is associated with higher ADR liquidity and lower home share liquidity, in terms of changes in these variables. We find that the liquidity effects remain strong after we control for firm size and a number of country characteristics, …


Dynamic Performance And The Performance-Performance Rating Relation, Jochen Reb, Gary J. Greguras Jun 2008

Dynamic Performance And The Performance-Performance Rating Relation, Jochen Reb, Gary J. Greguras

Research Collection Lee Kong Chian School Of Business

In this commentary we discuss the appropriateness and usefulness of taking into account the dynamic nature of performance when considering the relation between job performance and ratings of job performance. Like the vast majority of research in this area, Murphy (this issue) does not critically examine whether or how changes in ratee performance over time influence job performance ratings. As noted by Murphy and Cleveland (1995), a limitation of performance appraisal research is that it has ignored that employee performance “…is embedded in a context or pattern of employee performance over time” (p. 73). In this commentary, we argue that …


Corporate Governance, Shareholder Rights, And Shareholder Rights Plans: Poison, Placebo, Or Prescription?, Gary L. Caton, Jeremy C. Goh Jun 2008

Corporate Governance, Shareholder Rights, And Shareholder Rights Plans: Poison, Placebo, Or Prescription?, Gary L. Caton, Jeremy C. Goh

Research Collection Lee Kong Chian School Of Business

We examine the effect of poison pill adoptions on firm value, controlling for the adopting firm's preexisting corporate governance structure. We find that only companies with the most democratic governance structures, defined as those with the fewest preexisting protective governance provisions, experience significantly positive abnormal stock returns and significantly positive abnormal revisions in five-year earnings growth rate forecasts. Moreover, regression results indicate that abnormal returns and forecast revisions are significantly related to governance structure and not to board composition or subsequent merger activity.


Behavioral Explanations Of Trading Volume And Short-Horizon Price Patterns: An Investigation Of Seven Asia-Pacific Markets, David K. Ding, Thomas H. Mclnish, Udomsak Wongchoti Jun 2008

Behavioral Explanations Of Trading Volume And Short-Horizon Price Patterns: An Investigation Of Seven Asia-Pacific Markets, David K. Ding, Thomas H. Mclnish, Udomsak Wongchoti

Research Collection Lee Kong Chian School Of Business

We investigate whether behavioral postulations offer any implicit explanation of the country-varying relation between trading volume and price pattern among short-horizon winners/losers in seven Pacific-Basin markets during the period 1990 to 2000. Our findings lend credence to the Lee and Swaminathan [Lee, C. and Swaminathan, B., 2000. Price momentum and trading volume, Journal of Finance 55, 2017-2069.] Momentum Life Cycle explanation that high (low) volume winners (losers) are more likely to experience price reversals, whereas high (low) volume losers (winners), price momentum, in the subsequent period. This observation is especially pronounced in Hong Kong. Other models such as those based …


Keeping Up With The Joneses: A Field Study Of The Relationships Among Upward, Lateral, And Downward Comparisons And Pay Level Satisfaction, Michael M. Harris, Frederik Anseel, Filip Lievens May 2008

Keeping Up With The Joneses: A Field Study Of The Relationships Among Upward, Lateral, And Downward Comparisons And Pay Level Satisfaction, Michael M. Harris, Frederik Anseel, Filip Lievens

Research Collection Lee Kong Chian School Of Business

The authors examined the relationship between the direction of pay comparisons and pay level satisfaction. They hypothesized that upward pay comparisons would significantly predict pay level satisfaction, even when controlling for other comparisons. Results reported in 2 samples (U.S. sample, N = 295; Belgian sample, N = 67) generally supported this hypothesis. Analyses showed that individuals who were paid much less than their upward pay comparison were dissatisfied with their pay level. The highest levels of pay level satisfaction were observed when actual pay was congruent with the upward comparison pay level. There was also evidence that individuals who were …


Become A Value Merchant, James Anderson, Nirmalya Kumar, James A. Narus May 2008

Become A Value Merchant, James Anderson, Nirmalya Kumar, James A. Narus

Research Collection Lee Kong Chian School Of Business

Increasingly held accountable for reducing costs, purchasing and other customer managers don't have the luxury of simply believing suppliers' claims of cost savings. A relatively easy and quick way to obtain savings is for purchasing managers to focus on price and obtain price concessions from suppliers. To enhance their negotiating power, purchasing managers attempt to convince suppliers that their offerings are the same as their competitors, so that they could be easily replaced. In the face of such pressure, suppliers cave in and match competitor prices. Doing business based on demonstrating and documenting superior value is, indeed, a rare commodity. …


Time Magazine Education Program (38 Pedagogical Articles/Worksheets In A Year; Samples Uploaded), Siow Heng Ong Apr 2008

Time Magazine Education Program (38 Pedagogical Articles/Worksheets In A Year; Samples Uploaded), Siow Heng Ong

Research Collection Lee Kong Chian School Of Business

No abstract provided.


Managing Project Portfolios, Martin Lockett, Bert De Reyck, Andrew Sloper Apr 2008

Managing Project Portfolios, Martin Lockett, Bert De Reyck, Andrew Sloper

Research Collection Lee Kong Chian School Of Business

Portfolios are part of the bedrock of any financial services company. Yet, other industries are now starting to use a similar approach -not with stocks and bonds, but with business projects. Martin Lockett, Bert De Reyck and Andrew Sloper think it's a great idea, but only if it's done right.


Leverage Change, Debt Capacity, And Stock Prices, Jie Cai, Zhe (Joe) Zhang Apr 2008

Leverage Change, Debt Capacity, And Stock Prices, Jie Cai, Zhe (Joe) Zhang

Research Collection Lee Kong Chian School Of Business

We document a significantly negative effect of the change in a firm’s leverage ratio on its stock prices. This effect cannot be explained by popular asset pricing factors or firm characteristics. We find that the negative effect is stronger for firms with limited debt capacity. Moreover, firms with an increase in leverage ratio tend to have less future investment, even after controlling for growth option and target leverage. These findings are consistent with a dynamic view of the pecking-order theory that an increase in leverage reduces firms’ safe debt capacity and may lead to future underinvestment, thus reducing firm value. …


Which Shorts Are Informed?, Ekkehart Boehmer, Charles M. Jones, Xiaoyan Zhang Apr 2008

Which Shorts Are Informed?, Ekkehart Boehmer, Charles M. Jones, Xiaoyan Zhang

Research Collection Lee Kong Chian School Of Business

We construct a long daily panel of short sales using proprietary NYSE order data. From 2000 to 2004, shorting accounts for more than 12.9% of NYSE volume, suggesting that shorting constraints are not widespread. As a group, these short sellers are well informed. Heavily shorted stocks underperform lightly shorted stocks by a risk-adjusted average of 1.16% over the following 20 trading days (15.6% annualized). Institutional nonprogram short sales are the most informative; stocks heavily shorted by institutions underperform by 1.43% the next month (19.6% annualized). The results indicate that, on average, short sellers are important contributors to efficient stock prices.


The Impact Of Investor Protection Law On Takeovers: The Case Of Leveraged Buyouts, Jerry Cao, Douglas J. Cumming, Jeremy Goh, Meijun Qian, Xiaoming Wang Mar 2008

The Impact Of Investor Protection Law On Takeovers: The Case Of Leveraged Buyouts, Jerry Cao, Douglas J. Cumming, Jeremy Goh, Meijun Qian, Xiaoming Wang

Research Collection Lee Kong Chian School Of Business

This paper examines the impact of investor protection on the value creation of LBOs. We find that target shareholders’ wealth gain is higher in countries with better investor protection. The impact of investor protection on takeover premium is larger for LBO than non-LBO transactions. We also find evidence suggesting that club LBOs are not priced lower than non-club deals after accounting for endogeneity problem. These results suggest that investor protection law may act as an important safeguard for minority shareholders in LBO transactions.


Regret Aversion And Decision Process Quality: Effect Of Regret Salience On Decision Process Carefulness, Jochen Reb Mar 2008

Regret Aversion And Decision Process Quality: Effect Of Regret Salience On Decision Process Carefulness, Jochen Reb

Research Collection Lee Kong Chian School Of Business

A considerable amount of past research has examined the effects of regret aversion on which options decision makers choose. However, past research has largely neglected to address the effect of regret aversion on the decision process. We conducted five experiments to examine the effect of making regret salient on decision process quality. We predicted that increased regret aversion would lead to more careful decision processing. The results consistently supported this prediction across the different decision situations, incentive structures, regret salience manipulations, and dependent variables used. In all experiments making regret salient led decision makers to take significantly longer to reach …


Liquidity Distribution In The Limit Order Book On The Stock Exchange Of Thailand, Nuttawat Visaltanachoti, Charlie Charoenwong, David K. Ding Mar 2008

Liquidity Distribution In The Limit Order Book On The Stock Exchange Of Thailand, Nuttawat Visaltanachoti, Charlie Charoenwong, David K. Ding

Research Collection Lee Kong Chian School Of Business

The liquidity distribution, or the shape of the limit order book, influences trading behavior and choice of order submission by public liquidity suppliers. The present study seeks to discover whether liquidity providers are concerned about being picked off by informed traders, and whether they are less willing to supply liquidity at the market or demand higher price spreads. The results show that liquidity at the market is a small portion of total liquidity, and that firm size, minimum tick size, volatility, and trading volume play significant roles in determining the liquidity distribution within an order book.


What Does Exercise-Based Assessment Really Mean?, Filip Lievens Mar 2008

What Does Exercise-Based Assessment Really Mean?, Filip Lievens

Research Collection Lee Kong Chian School Of Business

My commentary addresses Lance’s (2008) recommendation to reorient assessment center (AC) practice away from dimensions toward exercise-based assessment. As exercise-based assessment is dealt with only in general terms in Lance’s article, I aim to delineate what exercise-based assessment really means. Two points are made. First, I arguethattakingdimensionsawayfromACs does not mean that assessee behavior is no longer determined by latent traits because behavior is inherently trait determined. Second, I elaborate on the practical and research implications of exercise-based assessment because these implications are underdeveloped in Lance.


Certified Value Sellers, James Anderson, Nirmalya Kumar, James A. Narus Mar 2008

Certified Value Sellers, James Anderson, Nirmalya Kumar, James A. Narus

Research Collection Lee Kong Chian School Of Business

Some companies think that offering deep discounts to buyers is the only way to sell their products in business markets. The authors propose a better way.


A Cross-Nations, Cross-Cultures, And Cross-Conditions Analysis On The Equivalence Of The Balanced Inventory Of Desirable Responding (Bidr), Andrew Li, Jochen Reb Mar 2008

A Cross-Nations, Cross-Cultures, And Cross-Conditions Analysis On The Equivalence Of The Balanced Inventory Of Desirable Responding (Bidr), Andrew Li, Jochen Reb

Research Collection Lee Kong Chian School Of Business

This article examines measurement equivalence of the Balanced Inventory of Desirable Responding (BIDR) across two nations (the United States and Singapore), two cultural values (horizontal individualism and horizontal collectivism) and two motivational conditions (standard and faking). One sample of undergraduate students from each country (N Singapore = 158, N United States = 166) participated in this study, and a within-subject experimental design is used. Specifically, at Time 1, participants were simply asked to respond to the BIDR and the INDCOL (standard condition). At Time 2, the participants were instructed to engage in social desirability (faking condition). Multigroup confirmatory factor analyses …


Change And Continuity In Japanese Corporate Governance, Toru Yoshikawa, Jean Mcguire Mar 2008

Change And Continuity In Japanese Corporate Governance, Toru Yoshikawa, Jean Mcguire

Research Collection Lee Kong Chian School Of Business

Previous studies on Japanese corporate governance were largely based on the agency theory framework, and can be seen as attempts to understand the unique monitoring mechanisms in the Japanese context. This paper briefly reviews prior research and then discusses the recent changes in the environment that have been affecting Japanese corporate governance. Our central argument is that there is both change and continuity in Japanese Corporate Governance. We also present emerging research from an institutional theory perspective. In this line of research, corporate governance is treated as part of a nation’s institutional framework and hence, researchers need to understand unique …


Do Poison Pills Increase Firm Risk?, Thomas Turk, Jeremy C. Goh, Candace Ybarra Mar 2008

Do Poison Pills Increase Firm Risk?, Thomas Turk, Jeremy C. Goh, Candace Ybarra

Research Collection Lee Kong Chian School Of Business

Management scholars have argued that an active takeover market discourages risk-taking by managers and that takeover defenses serve to counter the risk-reducing pressures of an active takeover market. This study employs the Black and Scholes Option Pricing Model to determine whether or not adoption of poison pill securities increases investor perceptions of firm risk. The results provide evidence that the Option-Implied Standard Deviations of common stock returns increase significantly on the poison pill adoption date, on average. Furthermore, the implied standard deviations remained significantly above pre-adoption levels for several days after the poison pill adoption, suggesting that the perceived increase …


Investment Patterns In Singapore's Central Provident Fund System, Benedict S. K. Koh, Olivia S. Mitchell, Toto Tanuwidjaja, Joelle Fong Mar 2008

Investment Patterns In Singapore's Central Provident Fund System, Benedict S. K. Koh, Olivia S. Mitchell, Toto Tanuwidjaja, Joelle Fong

Research Collection Lee Kong Chian School Of Business

Rising elderly life expectancies imply the need to accumulate sufficient savings for retirement. This paper investigates the role of recent changes in the investment menu of the Singaporean Central Provident Fund (CPF) system. Our research explores the investment patterns of CPF participants and articulates their implications for policymakers. We find that most investors use their money for housing purchase and default the remainder to the CPF investment pool. The bulk of non-housing saving sits in bank accounts paying a low return. A fraction of workers does elect outside investment products, with high-income earners and males taking more risk than low-income …


Business Market Value Merchants, James Anderson, Nirmalya Kumar, James A. Narus Mar 2008

Business Market Value Merchants, James Anderson, Nirmalya Kumar, James A. Narus

Research Collection Lee Kong Chian School Of Business

To get a fair return on the superior value that their offerings deliver to customers, progressive B-to-B companies transform their sales forces from value spendthrifts into value merchants. These companies foster value merchants in more ways than simply compensating salespeople on profitability. As a result, their salespeople become value merchants, making business with customers more profitable by finding value drains and value leaks--rather than by seeking price cuts to retain or gain business.


Speaking Out: The Responsibilities Of Management Intellectuals: A Survey, Stephen Dunne, Stefano Harney, Martin Parker Mar 2008

Speaking Out: The Responsibilities Of Management Intellectuals: A Survey, Stephen Dunne, Stefano Harney, Martin Parker

Research Collection Lee Kong Chian School Of Business

This article discusses our analysis of over 2,000 articles publishedwithin 20 top business and management journals. The article empirically demonstrates how little attention is being paid by the work published within these journals to contemporary political issues across the globe. We also demonstrate the extent to which the same is true of ‘critical’ journals such as Organization. To this end we argue that mass scholarly ranking mechanisms, such as the British Research Assessment Exercise (RAE),create a general state of myopia on the part of business and management scholars towards a variety of political issues, even making a virtue out of …