Financial Sector of the American Economy – serie

First published in 1996. The focus of this work is to investigate the changing nature of competition in the United States’ commercial banking industry from 1973-1988 by examining earnings from individual products. The industry underwent tremendous changes during this period.

First Published in 1999. Part of the Financial Sector of the American Economy series, this book addresses one much needed change in the corporate arena—the continuing inequality of opportunities for success that blacks experience relative to their similarly qualified white peers.

First Published in 1998. The Federal Reserve System, the nation's central bank, is directed by statute to maintain maximum employment, stable prices, and moderate long-term interest rates. This volume explores the Central Bank Autonomy, looking at preferences of central bankers, reserve requirements, open market transactions, credit control, macroeconomic outcomes, policies and capital market flows.

This research empirically validates a typology of innovations by examining the differential effects of organizational structure and environmental perceptions on the types of innovations adopted in an organization. Four types of innovations are depicted in the typology— incremental, product, process, and radical innovations.

First Published in 1999. This study develops a new way of studying pork barrel politics based on congressional behavior in the 1980s and 1990s.

First published in 1999. The present study does not challenge the argument that a managerial revolution occurred. It does modify the significance of the change by presenting evidence—for the first time—of the extent to which corporate managers themselves were beholden to major players in the financial sector—especially a small group of New York banks which served as the main suppliers of term loans (loans with maturity of 1-10 years) to industrial corporations.

This study examines how the shared cultural values of employees in a Polish firm influence management attempts top transform organizational practices in a newly privatized factory. By introducing a foreign management approach, Total Quality Management (TQM), the management of this factory presents a potential conflict of values between the employees and the management philosophy. Tracing the historical and contemporary impact of traditional, political and religious influences in Poland and utilizing ethnographic techniques of observation, interviews, and secondary source data, the author identifies four patterns of shared mindsets. These mindsets, insecurity and instability, distrust, reluctance to assume responsibility and a struggle between individualism and collectivism generate resistance to the successful implementation of TQM in this factory. Organizational studies research has identified cultural differences in values but previous studies have not examined the congruence assessment that employees make when confronted with a management intervention, such as TQM. The author finds that an incongruence between societal values and the values the employees perceive are embedded in the TQM approach produced actual outcomes that are not consistent with TQM objectives of empowerment, teamwork, visionary leadership and continuous improvement of quality. Employees demonstrated a reduced sense of empowerment, team goals that are counterproductive to organizational goals, autocratic leadership and an increased focus but not sustainable effort toward improving quality. The book examines the reasons for these results through detailed description and extensive quotations from employees both inside the Polish firm and throughout Polish society.

This book investigates the motivations behind the adoption of the technique of asset securitization by US commercial banks and its effects on the financial performances.

How much cash should a corporation have and should we worry when they have too much? This question has been hotly debated by manager and investors recently because managers of many of America's leading corporations have chosen to keep the spoils of the long economic expansion rather than return them to investors. As corporate cash coffers burst at the seems, some topping $20 billion, should investors worry about what managers will do with the cash when they finally decide to spend it? This study tackles these and other questions related to corporate cash reserves. After developing a benchmark for the appropriate amount of cash a corporation in a given industry needs to fund its investments and survive an economic downturn, a group of cash-rich corporations are not only more acquisitive than other corporations, but they also tend to make poor acquisition choices, effectively squandering part of their cash reserves. The stock price reaction to acquisition announcements by cash-rich firms is significantly more negative than the reaction to announcements by other firms. The performance of the cash-rich acquirer declines following the acquisition, realizing the expectations of the stock market. Overall, cash-rich firms destroy 7 cents of value for every excess dollar of cash reserves they hold, effectively receiving 93 cents on the dollar! This study documents that not only do managers tend to squander their stockpiles of cash, but also they are able to use this cash to deter any attempt to wrest control of the corporation from their hands. The message for investors and board members to be wary of cash stockpiles is clear.

How can we value an enterprise, like a young internet start-up company, that has no earnings or cash flows, so that traditional and conventional valuation techniques are therefore not applicable? One of the most notable recent industrial revolutions has been the emergence of Biotechnology and Internet companies. Most of these technology companies are predominantly young with no history of earnings or cash flows to evaluate. This book addresses the problem, and presents a model for valuing enterprises that may have no existing assets but only growth opportunities.

Although the cashless society has been predicted for at least twenty years, the new forms of card-based and software based electronic money may prove to be a partial alternative to the current forms of payment. This study examines these emerging electronic money systems and their possible adoption, primarily in the United States.

First published in 1996. The focus of this work is to investigate the changing nature of competition in the United States’ commercial banking industry from 1973-1988 by examining earnings from individual products. The industry underwent tremendous changes during this period.

First Published in 1999. Part of the Financial Sector of the American Economy series, this book addresses one much needed change in the corporate arena—the continuing inequality of opportunities for success that blacks experience relative to their similarly qualified white peers.

Although the cashless society has been predicted for at least twenty years, the new forms of card-based and software based electronic money may prove to be a partial alternative to the current forms of payment. This study examines these emerging electronic money systems and their possible adoption, primarily in the United States.

First Published in 1999. This study develops a new way of studying pork barrel politics based on congressional behavior in the 1980s and 1990s.

How much cash should a corporation have and should we worry when they have too much? This question has been hotly debated by manager and investors recently because managers of many of America's leading corporations have chosen to keep the spoils of the long economic expansion rather than return them to investors. As corporate cash coffers burst at the seems, some topping $20 billion, should investors worry about what managers will do with the cash when they finally decide to spend it? This study tackles these and other questions related to corporate cash reserves. After developing a benchmark for the appropriate amount of cash a corporation in a given industry needs to fund its investments and survive an economic downturn, a group of cash-rich corporations are not only more acquisitive than other corporations, but they also tend to make poor acquisition choices, effectively squandering part of their cash reserves. The stock price reaction to acquisition announcements by cash-rich firms is significantly more negative than the reaction to announcements by other firms. The performance of the cash-rich acquirer declines following the acquisition, realizing the expectations of the stock market. Overall, cash-rich firms destroy 7 cents of value for every excess dollar of cash reserves they hold, effectively receiving 93 cents on the dollar! This study documents that not only do managers tend to squander their stockpiles of cash, but also they are able to use this cash to deter any attempt to wrest control of the corporation from their hands. The message for investors and board members to be wary of cash stockpiles is clear.

This study examines how the shared cultural values of employees in a Polish firm influence management attempts top transform organizational practices in a newly privatized factory. By introducing a foreign management approach, Total Quality Management (TQM), the management of this factory presents a potential conflict of values between the employees and the management philosophy. Tracing the historical and contemporary impact of traditional, political and religious influences in Poland and utilizing ethnographic techniques of observation, interviews, and secondary source data, the author identifies four patterns of shared mindsets. These mindsets, insecurity and instability, distrust, reluctance to assume responsibility and a struggle between individualism and collectivism generate resistance to the successful implementation of TQM in this factory. Organizational studies research has identified cultural differences in values but previous studies have not examined the congruence assessment that employees make when confronted with a management intervention, such as TQM. The author finds that an incongruence between societal values and the values the employees perceive are embedded in the TQM approach produced actual outcomes that are not consistent with TQM objectives of empowerment, teamwork, visionary leadership and continuous improvement of quality. Employees demonstrated a reduced sense of empowerment, team goals that are counterproductive to organizational goals, autocratic leadership and an increased focus but not sustainable effort toward improving quality. The book examines the reasons for these results through detailed description and extensive quotations from employees both inside the Polish firm and throughout Polish society.

This book investigates the motivations behind the adoption of the technique of asset securitization by US commercial banks and its effects on the financial performances.

This book examines the shareholder activism of institutional investors, and the effect of this activism on portfolio performance. By focusing on 118 institutional investors headquartered in the United States, the book is unique in addressing the shareholder activism of a large sample. Institutional shareholder activism is defined to include both traditional mechanisms of influence (i.e. filing shareholder proposals) and relationship investing. Institutional owners included private and public pension funds, mutual funds, bank trusts, insurance companies, endowments, and foundations. These institutional owners differ substantially, and these differences lead institutions to use their ownership power to pursue different philosophies and actions. Some institutions follow a passive governance policy, While others adopt an activist role. This book seeks to answer four questions: (1) Are institutional owners actively involved in the strategic affairs of companies in their portfolios? (2)Which forms of activism do institutional owners employ (either confrontational mechanisms, such as filing shareholder proposals, or relationship building mechanisms)? (3)Which forms of activism employed are most effective? and (4) Does the institutional type affect its pursuit of shareholder activism? In answering these questions the author suggests new important results that in many cases are contrary to what prior reports of the activities by a small number of institutional owners may intimate.

First published in 1998. A profound transformation of the commercial banking industry has occurred in recent years. The consolidation of local, independent banks into multi-bank holding company structures has altered the landscape of commercial banking. The Transformation of Commercial Banking in the United States, 1956-1991 focuses on the effect of restrictive state branch banking laws on the consolidation of commercial banks in the United States. The central thesis of this study is that much of the change in the structure of commercial banking can be explained by the variation in state branch banking laws.

How can we value an enterprise, like a young internet start-up company, that has no earnings or cash flows, so that traditional and conventional valuation techniques are therefore not applicable? One of the most notable recent industrial revolutions has been the emergence of Biotechnology and Internet companies. Most of these technology companies are predominantly young with no history of earnings or cash flows to evaluate. This book addresses the problem, and presents a model for valuing enterprises that may have no existing assets but only growth opportunities.

In this study, ;the author ;hopes to add to the literature concerning the ;distributional consequences of financial integration by focusing on the rise of non-state actors within a transformed international system. In it, he argues that structural change brought on by transnational production and post-industrialization has created space for non-state actors to acquire autonomy from sovereign entities. While finance is by no means the only specialized sector to achieve autonomy, it has perhaps the most immediate impact on the ability of governments to pursue policy. ; ; First published in 1999. Routledge is an imprint of Taylor & Francis, an informa company. ; ;

This book examines the shareholder activism of institutional investors, and the effect of this activism on portfolio performance. By focusing on 118 institutional investors headquartered in the United States, the book is unique in addressing the shareholder activism of a large sample. Institutional shareholder activism is defined to include both traditional mechanisms of influence (i.e. filing shareholder proposals) and relationship investing. Institutional owners included private and public pension funds, mutual funds, bank trusts, insurance companies, endowments, and foundations. These institutional owners differ substantially, and these differences lead institutions to use their ownership power to pursue different philosophies and actions. Some institutions follow a passive governance policy, While others adopt an activist role. This book seeks to answer four questions: (1) Are institutional owners actively involved in the strategic affairs of companies in their portfolios? (2)Which forms of activism do institutional owners employ (either confrontational mechanisms, such as filing shareholder proposals, or relationship building mechanisms)? (3)Which forms of activism employed are most effective? and (4) Does the institutional type affect its pursuit of shareholder activism? In answering these questions the author suggests new important results that in many cases are contrary to what prior reports of the activities by a small number of institutional owners may intimate.

First published in 2001. Routledge is an imprint of Taylor & Francis, an informa company.