Does Cultural Difference Affect Investment–Cash Flow Sensitivity? Evidence from OECD Countries

We investigate the influence of national culture on corporate investment–cash flow sensitivity. We conjecture that national culture shapes managerial perceptions of information asymmetry and agency problems, thus impacting the investment–cash flow relationship. We document empirical evidence in support of our claim. By linking the investment–cash flow sensitivity to cultural differences, our findings show that, while collectivism has an attenuating influence, uncertainty avoidance, power distance and masculinity have a reinforcing effect on the relationship between cash flow and investment. Our results hold for a sample of 205,268 firm‐years across 24 OECD countries between 1990 and 2017, and are robust after accounting for alternative statistical approaches, sample compositions and measures of cultural dimensions, along with controls for institutional and governmental factors. In addition, by decomposing cash flow into uses and sources of funds in a dynamic multi‐equation model, where firms make financing and investment decisions jointly subject to the constraint that sources must equal uses of cash, we find that national culture shapes how firms react to changes in cash flow.     

New Venture Survival: A Review and Extension

This paper provides an evaluative overview of the new venture survival literature. Since Stinchcombe's primary attempt to explain the mortality rates of new ventures, different research fields, including entrepreneurship, management and sociology, have devoted considerable attention to the antecedents of new venture survival. Despite this lively research commitment, a comprehensive review of the literature on new venture survival – as one of the most essential performance measures for new ventures – is missing. Covering 54 years of research, this paper provides an overview of the factors affecting new venture survival and highlights important methodological aspects in this research field. The review concludes by discussing opportunities for future research.     

From Intended to Actual and Beyond: A Cross‐Disciplinary View of (Human Resource Management) Implementation

Despite increasing interest in human resource management (HRM) implementation as an explanation for the association between HRM and firm performance, considerable confusion remains about what implementation means. In order to develop conceptual definitions of HRM implementation and implementation effectiveness, this study builds on three different literatures outside the HRM field (strategy, innovation, and change management), which have addressed this topic extensively. As a result, implementation is characterized as a dynamic process, involving the interaction among multiple actors, starting with the adoption of a new practice and ending with its routinization. This is distinguished from implementation effectiveness as an outcome of that process. The study helps to achieve construct clarity, hence providing a more solid basis for future research and allowing for a better consolidation of findings. The authors also develop an agenda for further research by reviewing a number of theoretical and methodological approaches that have been used in implementation research across fields, including HRM. Overall, the study aims to establish implementation research as a highly relevant academic and practical quest not only in HRM, but also in other management literatures.     

Selection bias for treatments with positive Phase 2 results

In drug development, treatments are most often selected at Phase 2 for further development when an initial trial of a new treatment produces a result that is considered positive. This selection due to a positive result means, however, that an estimator of the treatment effect, which does not take account of the selection is likely to over‐estimate the true treatment effect (ie, will be biased). This bias can be large and researchers may face a disappointingly lower estimated treatment effect in further trials. In this paper, we review a number of methods that have been proposed to correct for this bias and introduce three new methods. We present results from applying the various methods to two examples and consider extensions of the examples. We assess the methods with respect to bias of estimation of the treatment effect and compare the probabilities that a bias‐corrected treatment effect estimate will exceed a decision threshold. Following previous work, we also compare average power for the situation where a Phase 3 trial is launched given that the bias‐corrected observed Phase 2 treatment effect exceeds a launch threshold. Finally, we discuss our findings and potential application of the bias correction methods.     

Planning at gulf— A case study: Part I—Early developments of planning models

In this first part of the case study the authors introduced the background to the development of the planning models used by the Gulf Company. Both the Linear Programming model and the Sensitivity model are described, with discussion regarding the inter-relationship of these models and the discrete and mutual objectives behind their use.     

The study of intergenerational intimacy in North America: beyond politics and pedophilia

Intergenerational intimacy, social as well as sexual, has been studied in the United States and abroad for some time. In recent years the general trend has been to label such behavior "child sexual abuse." Interest in this type of abuse has generated a considerable amount of more or less scientific literature, some of which seems to have been produced in a "rush to judgment" attempt to build a "professional" literature that supports popular beliefs. This tradition of child-abuse-defined literature, along with the work of investigative and helping agencies which some refer to as a "child abuse industry," has fostered a one-sided, simplistic picture of intergenerational intimacy. A close look at the empirical studies in this tradition reveals flaws associated with two problems: the studies nearly always (1) maintain a narrow focus on sexual contact, and (2) proceed from the related basic assumption that sexual contact in intergenerational relationships by definition constitutes abuse. While sexual abuse certainly occurs, those who apply this assumption to all situations are ignoring empirical findings that show otherwise. Research outside the "child sexual abuse" tradition reveals a broader range of intergenerational relationships outside the family, including a number of aspects which typically are not seen when the focus is on the sexual. Some studies show clearly that even when sexual contact is involved, negative outcomes are not inevitable. This indicates the need for a much broader approach. Further research in North American society and in other cultures would help us to understand more accurately the diversity and possible benefits of intergenerational intimacy.     

Animals and anomalies: an analysis of the UK veterinary profession and the relative lack of state reform

The sociology of professions literature would predict that the contemporary state would not allow groups to continue unregulated or unreformed. However, this is indeed the case with the UK veterinary profession, with legislation dating back to 1966. Using an interdisciplinary analysis of published literature and reports, this paper assesses whether wider social, political and ethical dynamics can better explain this intriguing anomaly. We conclude with critical implications for the sociology of the professions. Furthermore, we argue that continuing to ignore the veterinary profession, and animals more generally, in sociological research will result in an impoverished and partial understanding of contemporary healthcare and occupations.     

How disability affects absenteeism: An empirical analysis for six European countries

Using data from the European Community Household Panel for six European countries (Austria, Greece, Ireland, Italy, Portugal and Spain) for the period 1995–2001, this article investigates how disability affects workers' absenteeism. The results show that workers with disabilities are absent more often than workers without disabilities. This finding is obtained after controlling for individuals' self‐reported health, visits to doctors and nights spent in hospital. The severity of disability is also a relevant factor in higher absenteeism. The total effect of disability on absenteeism amounts to a marginal increase of six to 26 days per year (depending on the country).     

Sharing personal information in the child protection context: Impediments in the Australian legal framework

Professionals, including social workers, in the child protection context are frequently required to make decisions on whether to share sensitive personal information about children, their families, and others with colleagues and across institutional and jurisdictional boundaries. Sharing information across agencies and organisations is essential to allow joined‐up service provision and to effectively protect and support children and their families. A legal framework that supports this decision making is a necessary, although not sufficient, condition for effective information sharing. This article examines the complex legal framework that governs information sharing across the Australian states and territories. It identifies a number of structural and regulatory elements that unnecessarily limit information sharing or have a tendency to create a culture that is risk averse, rather than proactive, in sharing information. The article suggests structural and regulatory reforms that would improve the legal framework for sharing information, while at the same time giving due recognition to the human rights that come into tension in this policy context: the right to privacy and the rights of the child.     

Label‐ and Level‐Invariant Graphical Log‐Linear Models

We introduce two types of graphical log‐linear models: label‐ and level‐invariant models for triangle‐free graphs. These models generalise symmetry concepts in graphical log‐linear models and provide a tool with which to model symmetry in the discrete case. A label‐invariant model is category‐invariant and is preserved after permuting some of the vertices according to transformations that maintain the graph, whereas a level‐invariant model equates expected frequencies according to a given set of permutations. These new models can both be seen as instances of a new type of graphical log‐linear model termed the restricted graphical log‐linear model, or RGLL, in which equality restrictions on subsets of main effects and first‐order interactions are imposed. Their likelihood equations and graphical representation can be obtained from those derived for the RGLL models.