Kaouthar Lajili - Academia.edu (original) (raw)

Papers by Kaouthar Lajili

Research paper thumbnail of Market performance impacts of human capital information disclosures

Research paper thumbnail of Attributes of Corporate Risk Disclosure: An International Investigation in the Manufacturing Sector

Journal of International Accounting Research, 2011

ABSTRACT This paper is the first multi-country investigation of comprehensive corporate risk disc... more ABSTRACT This paper is the first multi-country investigation of comprehensive corporate risk disclosure. Based on a detailed content analysis of 160 annual reports, we analyze the attributes and the quantity of risk disclosure and its association with the level of firm risk in the U.S., Canadian, U.K., and German settings. We find a consistent pattern where risk disclosure is most prevalent in management reports, concentrates on financial risk categories, and comprises little quantitative and forward-looking disclosure across sample countries. In terms of risk disclosure quantity, U.S. firms generally dominate, followed by German firms. Cross-country variation in risk disclosure attributes can only partly be linked to domestic disclosure regulation, suggesting that risk disclosure incentives play an important role. While risk disclosure quantity appears to be positively associated with proxies of firm risk in the North American settings, we find a negative association with leverage for Germany. This coincides with a 'concealing motive' implied by an insider role of banks in the German financial setting.

Research paper thumbnail of Farmers' preferences for crop contracts

An empirical approach combining elements of principal-agent theory and transaction cost economics... more An empirical approach combining elements of principal-agent theory and transaction cost economics is used to determine farmers' preferences for contract terms in crop production. The approach is tested by asking grain farmers to rank contract choices and specify price premiums in simulated case situations. The statistical results indicate that farmers' preferences for rates of cost sharing, price premiums, and financing arrangements are significantly influenced by asset specialization and uncertainty associated with the case situations, and by selected business and personal characteristics.

Research paper thumbnail of An agency/transactions-costs approach and application to vertical coordination arrangements in food and agricultural markets /

Printout. Vita. Thesis (Ph. D.)--University of Illinois at Urbana-Champaign, 1995. Includes bibli... more Printout. Vita. Thesis (Ph. D.)--University of Illinois at Urbana-Champaign, 1995. Includes bibliographical references (leaves 169-173).

Research paper thumbnail of Corporate Governance and Bankruptcy Filing Decisions

Journal of General Management

Research paper thumbnail of An Empirical Investigation of Business and Operational Risk Disclosures

This paper examines attributes of non-financial risk disclosures by US manufacturing companies du... more This paper examines attributes of non-financial risk disclosures by US manufacturing companies during the financial crises. We focus on business and operational risk disclosures to distinguish between risks generally outside and within the firms’ internal control. Main findings show that in terms of disclosure, volume business risk disclosures far outweigh operational risk disclosures for each year. Risk disclosures on risk factors, on negative news, in qualitative and in forward-looking terms are most prevalent. We find an almost stable pattern of non-financial risk disclosures during the financial crisis, and that both types of non-financial disclosure are not entirely driven by the same factors. Our findings suggest that non-financial risk disclosures and particularly operational risk disclosures may not entirely meet the users’ expectations. Results have implications for regulation and future research.

Research paper thumbnail of Towards Building a Human-Capital Based Governance Framework

Although there is a consensus among scholars and managers about the importance of human-based ass... more Although there is a consensus among scholars and managers about the importance of human-based assets, there is a lack of understanding of how the evolving role of human capital, will affect governance, control and wealth (or rents) appropriation in the future. This paper offers a conceptual framework for governance design based on human capital value and built upon various theory constructs that have addressed some relevant facets of the human capital dilemma while ignoring others. The paper argues that various forms of employment contractual relationships will emerge to further accommodate this critical asset and proposes some suggestions for future research.

Research paper thumbnail of Labor Costs Voluntary Disclosure: Proprietary Information or a Signaling Instrument?

This study explores the information content of labor cost voluntary disclosure by examining and c... more This study explores the information content of labor cost voluntary disclosure by examining and comparing labor productivity and managerial efficiency in labor use between disclosing and non-disclosing firms and between disclosing firms differing in their degree of industry disclosure intensity. A production function approach is followed to estimate labor-related productivity and efficiency indicators based on accounting data relative to labor costs disclosure for a sample of US firms in 1997. The estimates are then incorporated into binary and multinomial logistic regressions to model the disclosure decision and intensity along with other explanatory variables, namely political costs, and proprietary information costs. The study?s main results show that non-disclosing firms have on average a higher value marginal product of labor (or VMPL) than disclosing firms and that proprietary information costs are negatively related to voluntary disclosure of labor costs. These results seem t...

Research paper thumbnail of Gérer le risque à l'échelle de l'entreprise 

Research paper thumbnail of Testing Organizational Economics Theories of Vertical Integration

Research Methodology in Strategy and Management, 2007

This paper classifies empirical research on vertical integration under four approachesvalue−added... more This paper classifies empirical research on vertical integration under four approachesvalue−addedto−sales, qualitative−quantitative, input−output and microanalytic. The emphasis here is on the microanalytic approach which has accumulated the most systematic evidence to support its theoretical propositions. In particular, this paper emphasizes theoretical and empirical contributions from organizational economics (especially transaction costs and agency theories) for both vertical integration and (vertical) contracting. Limitations and methodological challenges concerning the empirical testing of theories of vertical integration are addressed and suggestions for further research are provided.

Research paper thumbnail of Corporate Risk Disclosure and Corporate Governance

Journal of Risk and Financial Management, 2009

To date, research which integrates corporate governance and risk management has been limited. Yet... more To date, research which integrates corporate governance and risk management has been limited. Yet, risk exposure and management are increasingly becoming the core function of modern business enterprises in various sectors and industries domestically and globally. Risk identification and management are crucial in any business strategy design and implementation. From the investors' point of view, knowledge of the risk profile, risk appetite and risk management are key elements in making sound portfolio investment decisions. This paper examines the relationships between corporate governance mechanisms and risk disclosure behavior using a sample of Canadian publicly-traded companies (TSX 230). Results show that Canadian public companies are more likely to disclose risk management information over and above the mandatory risk disclosures, if they are larger in size and if their boards of directors have more independent members. Minority voting control ownership structures appear to negatively impact risk disclosure and CEO incentive compensation shows mixed results. The paper concludes that more research is needed to further assess the impact of various governance mechanisms on corporate risk management and disclosure behavior.

Research paper thumbnail of Revisiting agency and transaction costs theory predictions on vertical financial ownership and contracting: electronic integration as an organizational form choice

Managerial and Decision Economics, 2006

Following an efficiency perspective and a micro−analytic approach, this paper provides an organiz... more Following an efficiency perspective and a micro−analytic approach, this paper provides an organizational economics foundation to guide managers in matching the comparatively more efficient organizational mode with firm−level transactions possessing certain transactional characteristics. In particular, this paper focuses on the following transactional characteristics:

Research paper thumbnail of Labor cost voluntary disclosures and firm equity values: Is human capital information value-relevant?

Journal of International Accounting, Auditing and Taxation, 2005

This study examines the market value relevance of labor cost voluntary disclosures using a valuat... more This study examines the market value relevance of labor cost voluntary disclosures using a valuation model relating firm market values to book values of equity and to disclosed human capital information, such as labor costs, net pension liabilities (NPLs), and estimated average and marginal labor productivity and efficiency indicators. Results indicate that labor cost disclosing companies command higher equity market values in general, and that labor productivity and efficiency measures appear to be undervalued. Both findings suggest that there might be market opportunities for firms with valuable human capital to differentiate themselves from their industry peers, which might encourage further human capital disclosure in the future. More refined measures of human capital assets and investments are needed to assess firms' human resource management decisions and performance impacts in the capital markets more adequately. 2 FASB news release 03/12/03 at www.fasb.org/news/ highlights the increasing importance of employee stock options and pensions in its future work projects agenda. SFAS No. 87 (issued 12/85) describes the standards in place for employer's accounting for pensions while SFAS No. 123 presents the standards for accounting for stock-based compensation (issued 10/95).

Research paper thumbnail of Attributes of Corporate Risk Disclosure: An International Investigation in the Manufacturing Sector

Journal of International Accounting Research, 2011

ABSTRACT This paper is the first multi-country investigation of comprehensive corporate risk disc... more ABSTRACT This paper is the first multi-country investigation of comprehensive corporate risk disclosure. Based on a detailed content analysis of 160 annual reports, we analyze the attributes and the quantity of risk disclosure and its association with the level of firm risk in the U.S., Canadian, U.K., and German settings. We find a consistent pattern where risk disclosure is most prevalent in management reports, concentrates on financial risk categories, and comprises little quantitative and forward-looking disclosure across sample countries. In terms of risk disclosure quantity, U.S. firms generally dominate, followed by German firms. Cross-country variation in risk disclosure attributes can only partly be linked to domestic disclosure regulation, suggesting that risk disclosure incentives play an important role. While risk disclosure quantity appears to be positively associated with proxies of firm risk in the North American settings, we find a negative association with leverage for Germany. This coincides with a 'concealing motive' implied by an insider role of banks in the German financial setting.

Research paper thumbnail of Managerial Efficiency and Human Capital Information: Linkages with the Voluntary Disclosure of Labour Costs

Journal of Human Resource Costing & Accounting, 2004

ABSTRACT This research paper examines the information content and managerial incentives for labou... more ABSTRACT This research paper examines the information content and managerial incentives for labour cost voluntary disclosures for a sample of United States publicly traded companies. We focus on labour productivity and managerial efficiency in labour usage and argue that these human capital indicators could provide valuable information to capital market participants seeking human resource-type of performance measures and signals. Labour productivity and efficiency indicators are estimated following a production function approach and are included in logistic regressions to help explain and predict labour cost voluntary disclosure decisions. We find that labour productivity and managerial efficiency in labour use indicators are generally different between disclosing and non-disclosing firms, and that proprietary information costs and political cost proxies are significantly related to labour costs voluntary disclosure, consistent with previous literature. These empirical results corroborate the ‘proprietary information’ hypothesis of voluntary disclosure where the strategic costs of disclosure outweigh the signaling benefit from disclosing human capital information.

Research paper thumbnail of Market performance impacts of human capital disclosures

Journal of Accounting and Public Policy, 2006

This paper examines the market valuation and performance impacts of human capital-related informa... more This paper examines the market valuation and performance impacts of human capital-related information disclosures. Following a labor economics approach and using the annual reports of a sample of United States public companies, we construct human capital productivity and efficiency indicators and test for their informational content and value relevance following a portfolio performance approach. Results indicate that on average, firms with higher labor cost disclosures outperform their low labor cost counterparts. Estimated labor productivity and efficiency indicators also appear to be value-relevant since firms with higher value marginal products of labor, and higher marginal productivity relative to average labor costs, outperform their counterparts with lower values of both measures. We conclude that labor cost voluntary disclosures might be potentially useful in assessing human capital asset management and performance which could be relevant to market participants particularly for firms in knowledgebased industries.

Research paper thumbnail of Human capital and knowledge governance

International Journal of Strategic Change Management, 2010

ABSTRACT This paper builds on prior literature of theories of the firm and its boundaries as well... more ABSTRACT This paper builds on prior literature of theories of the firm and its boundaries as well as on labour economics and human capital investments, to propose a conceptual framework to help explain and guide managerial decisions in providing both general and firm-specific training and human resource development. Underpinning the training transaction governance choice, organisational form decisions particularly with regard to strategic human resource management are affected. In addition to the two discrete modes of market and hierarchy governance modes, hybrid and plural forms of governance (e.g. concurrent sourcing, relational contracting, alliances and partnerships) combining and/or simultaneously using some aspects of both market and hierarchy are expected to prevail. This paper attempts to highlight some of the more important factors affecting the governance choice of such knowledge-intensive activities (i.e. training and development investments) and offers suggestions for future research.

Research paper thumbnail of A Content Analysis of Risk Management Disclosures in Canadian Annual Reports

Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration, 2009

Abstract This research paper examines risk information disclosures in Canadian annual reports to ... more Abstract This research paper examines risk information disclosures in Canadian annual reports to provide insights into the current risk disclosure environment, its characteristics, and the analytical usefulness of the information disclosed to the firm's stakeholders. ...

Research paper thumbnail of Environmental Performance, Environmental Risk and Risk Management

Business Strategy and the Environment, 2014

ABSTRACT Environmental performance, environmental risk and its management are of contemporary int... more ABSTRACT Environmental performance, environmental risk and its management are of contemporary interest, but to date there is limited evidence on their relationships. This paper is the first to provide detailed insights by adopting a content analysis approach and disaggregating firm-level environmental risk into types related to regulations, operations and nature. For a sample of US firms in polluting sectors, descriptive findings show that the level of risk and the likelihood of active risk management differ in the type considered. Environmental performance, risk and the likelihood of risk management all differ across firms and industries. Multiple regressions reveal a negative association between environmental performance and environmental risk, the extent of which depends on the type of risk. Results hold when controlling for active risk management which is not found to contribute significantly to environmental performance. Our findings have implications for public policy and suggest that linkages to environmental risk and risk management are worth exploring in more differential ways and beyond industry-level assessments in environmental studies.

Research paper thumbnail of Farmers' preferences for crop contracts

An empirical approach combining elements of principal-agent theory and transaction cost economics... more An empirical approach combining elements of principal-agent theory and transaction cost economics is used to determine farmers' preferences for contract terms in crop production. The approach is tested by asking grain farmers to rank contract choices and specify price premiums in simulated case situations. The statistical results indicate that farmers' preferences for rates of cost sharing, price premiums, and financing arrangements are significantly influenced by asset specialization and uncertainty associated with the case situations, and by selected business and personal characteristics.

Research paper thumbnail of Market performance impacts of human capital information disclosures

Research paper thumbnail of Attributes of Corporate Risk Disclosure: An International Investigation in the Manufacturing Sector

Journal of International Accounting Research, 2011

ABSTRACT This paper is the first multi-country investigation of comprehensive corporate risk disc... more ABSTRACT This paper is the first multi-country investigation of comprehensive corporate risk disclosure. Based on a detailed content analysis of 160 annual reports, we analyze the attributes and the quantity of risk disclosure and its association with the level of firm risk in the U.S., Canadian, U.K., and German settings. We find a consistent pattern where risk disclosure is most prevalent in management reports, concentrates on financial risk categories, and comprises little quantitative and forward-looking disclosure across sample countries. In terms of risk disclosure quantity, U.S. firms generally dominate, followed by German firms. Cross-country variation in risk disclosure attributes can only partly be linked to domestic disclosure regulation, suggesting that risk disclosure incentives play an important role. While risk disclosure quantity appears to be positively associated with proxies of firm risk in the North American settings, we find a negative association with leverage for Germany. This coincides with a 'concealing motive' implied by an insider role of banks in the German financial setting.

Research paper thumbnail of Farmers' preferences for crop contracts

An empirical approach combining elements of principal-agent theory and transaction cost economics... more An empirical approach combining elements of principal-agent theory and transaction cost economics is used to determine farmers' preferences for contract terms in crop production. The approach is tested by asking grain farmers to rank contract choices and specify price premiums in simulated case situations. The statistical results indicate that farmers' preferences for rates of cost sharing, price premiums, and financing arrangements are significantly influenced by asset specialization and uncertainty associated with the case situations, and by selected business and personal characteristics.

Research paper thumbnail of An agency/transactions-costs approach and application to vertical coordination arrangements in food and agricultural markets /

Printout. Vita. Thesis (Ph. D.)--University of Illinois at Urbana-Champaign, 1995. Includes bibli... more Printout. Vita. Thesis (Ph. D.)--University of Illinois at Urbana-Champaign, 1995. Includes bibliographical references (leaves 169-173).

Research paper thumbnail of Corporate Governance and Bankruptcy Filing Decisions

Journal of General Management

Research paper thumbnail of An Empirical Investigation of Business and Operational Risk Disclosures

This paper examines attributes of non-financial risk disclosures by US manufacturing companies du... more This paper examines attributes of non-financial risk disclosures by US manufacturing companies during the financial crises. We focus on business and operational risk disclosures to distinguish between risks generally outside and within the firms’ internal control. Main findings show that in terms of disclosure, volume business risk disclosures far outweigh operational risk disclosures for each year. Risk disclosures on risk factors, on negative news, in qualitative and in forward-looking terms are most prevalent. We find an almost stable pattern of non-financial risk disclosures during the financial crisis, and that both types of non-financial disclosure are not entirely driven by the same factors. Our findings suggest that non-financial risk disclosures and particularly operational risk disclosures may not entirely meet the users’ expectations. Results have implications for regulation and future research.

Research paper thumbnail of Towards Building a Human-Capital Based Governance Framework

Although there is a consensus among scholars and managers about the importance of human-based ass... more Although there is a consensus among scholars and managers about the importance of human-based assets, there is a lack of understanding of how the evolving role of human capital, will affect governance, control and wealth (or rents) appropriation in the future. This paper offers a conceptual framework for governance design based on human capital value and built upon various theory constructs that have addressed some relevant facets of the human capital dilemma while ignoring others. The paper argues that various forms of employment contractual relationships will emerge to further accommodate this critical asset and proposes some suggestions for future research.

Research paper thumbnail of Labor Costs Voluntary Disclosure: Proprietary Information or a Signaling Instrument?

This study explores the information content of labor cost voluntary disclosure by examining and c... more This study explores the information content of labor cost voluntary disclosure by examining and comparing labor productivity and managerial efficiency in labor use between disclosing and non-disclosing firms and between disclosing firms differing in their degree of industry disclosure intensity. A production function approach is followed to estimate labor-related productivity and efficiency indicators based on accounting data relative to labor costs disclosure for a sample of US firms in 1997. The estimates are then incorporated into binary and multinomial logistic regressions to model the disclosure decision and intensity along with other explanatory variables, namely political costs, and proprietary information costs. The study?s main results show that non-disclosing firms have on average a higher value marginal product of labor (or VMPL) than disclosing firms and that proprietary information costs are negatively related to voluntary disclosure of labor costs. These results seem t...

Research paper thumbnail of Gérer le risque à l'échelle de l'entreprise 

Research paper thumbnail of Testing Organizational Economics Theories of Vertical Integration

Research Methodology in Strategy and Management, 2007

This paper classifies empirical research on vertical integration under four approachesvalue−added... more This paper classifies empirical research on vertical integration under four approachesvalue−addedto−sales, qualitative−quantitative, input−output and microanalytic. The emphasis here is on the microanalytic approach which has accumulated the most systematic evidence to support its theoretical propositions. In particular, this paper emphasizes theoretical and empirical contributions from organizational economics (especially transaction costs and agency theories) for both vertical integration and (vertical) contracting. Limitations and methodological challenges concerning the empirical testing of theories of vertical integration are addressed and suggestions for further research are provided.

Research paper thumbnail of Corporate Risk Disclosure and Corporate Governance

Journal of Risk and Financial Management, 2009

To date, research which integrates corporate governance and risk management has been limited. Yet... more To date, research which integrates corporate governance and risk management has been limited. Yet, risk exposure and management are increasingly becoming the core function of modern business enterprises in various sectors and industries domestically and globally. Risk identification and management are crucial in any business strategy design and implementation. From the investors' point of view, knowledge of the risk profile, risk appetite and risk management are key elements in making sound portfolio investment decisions. This paper examines the relationships between corporate governance mechanisms and risk disclosure behavior using a sample of Canadian publicly-traded companies (TSX 230). Results show that Canadian public companies are more likely to disclose risk management information over and above the mandatory risk disclosures, if they are larger in size and if their boards of directors have more independent members. Minority voting control ownership structures appear to negatively impact risk disclosure and CEO incentive compensation shows mixed results. The paper concludes that more research is needed to further assess the impact of various governance mechanisms on corporate risk management and disclosure behavior.

Research paper thumbnail of Revisiting agency and transaction costs theory predictions on vertical financial ownership and contracting: electronic integration as an organizational form choice

Managerial and Decision Economics, 2006

Following an efficiency perspective and a micro−analytic approach, this paper provides an organiz... more Following an efficiency perspective and a micro−analytic approach, this paper provides an organizational economics foundation to guide managers in matching the comparatively more efficient organizational mode with firm−level transactions possessing certain transactional characteristics. In particular, this paper focuses on the following transactional characteristics:

Research paper thumbnail of Labor cost voluntary disclosures and firm equity values: Is human capital information value-relevant?

Journal of International Accounting, Auditing and Taxation, 2005

This study examines the market value relevance of labor cost voluntary disclosures using a valuat... more This study examines the market value relevance of labor cost voluntary disclosures using a valuation model relating firm market values to book values of equity and to disclosed human capital information, such as labor costs, net pension liabilities (NPLs), and estimated average and marginal labor productivity and efficiency indicators. Results indicate that labor cost disclosing companies command higher equity market values in general, and that labor productivity and efficiency measures appear to be undervalued. Both findings suggest that there might be market opportunities for firms with valuable human capital to differentiate themselves from their industry peers, which might encourage further human capital disclosure in the future. More refined measures of human capital assets and investments are needed to assess firms' human resource management decisions and performance impacts in the capital markets more adequately. 2 FASB news release 03/12/03 at www.fasb.org/news/ highlights the increasing importance of employee stock options and pensions in its future work projects agenda. SFAS No. 87 (issued 12/85) describes the standards in place for employer's accounting for pensions while SFAS No. 123 presents the standards for accounting for stock-based compensation (issued 10/95).

Research paper thumbnail of Attributes of Corporate Risk Disclosure: An International Investigation in the Manufacturing Sector

Journal of International Accounting Research, 2011

ABSTRACT This paper is the first multi-country investigation of comprehensive corporate risk disc... more ABSTRACT This paper is the first multi-country investigation of comprehensive corporate risk disclosure. Based on a detailed content analysis of 160 annual reports, we analyze the attributes and the quantity of risk disclosure and its association with the level of firm risk in the U.S., Canadian, U.K., and German settings. We find a consistent pattern where risk disclosure is most prevalent in management reports, concentrates on financial risk categories, and comprises little quantitative and forward-looking disclosure across sample countries. In terms of risk disclosure quantity, U.S. firms generally dominate, followed by German firms. Cross-country variation in risk disclosure attributes can only partly be linked to domestic disclosure regulation, suggesting that risk disclosure incentives play an important role. While risk disclosure quantity appears to be positively associated with proxies of firm risk in the North American settings, we find a negative association with leverage for Germany. This coincides with a 'concealing motive' implied by an insider role of banks in the German financial setting.

Research paper thumbnail of Managerial Efficiency and Human Capital Information: Linkages with the Voluntary Disclosure of Labour Costs

Journal of Human Resource Costing & Accounting, 2004

ABSTRACT This research paper examines the information content and managerial incentives for labou... more ABSTRACT This research paper examines the information content and managerial incentives for labour cost voluntary disclosures for a sample of United States publicly traded companies. We focus on labour productivity and managerial efficiency in labour usage and argue that these human capital indicators could provide valuable information to capital market participants seeking human resource-type of performance measures and signals. Labour productivity and efficiency indicators are estimated following a production function approach and are included in logistic regressions to help explain and predict labour cost voluntary disclosure decisions. We find that labour productivity and managerial efficiency in labour use indicators are generally different between disclosing and non-disclosing firms, and that proprietary information costs and political cost proxies are significantly related to labour costs voluntary disclosure, consistent with previous literature. These empirical results corroborate the ‘proprietary information’ hypothesis of voluntary disclosure where the strategic costs of disclosure outweigh the signaling benefit from disclosing human capital information.

Research paper thumbnail of Market performance impacts of human capital disclosures

Journal of Accounting and Public Policy, 2006

This paper examines the market valuation and performance impacts of human capital-related informa... more This paper examines the market valuation and performance impacts of human capital-related information disclosures. Following a labor economics approach and using the annual reports of a sample of United States public companies, we construct human capital productivity and efficiency indicators and test for their informational content and value relevance following a portfolio performance approach. Results indicate that on average, firms with higher labor cost disclosures outperform their low labor cost counterparts. Estimated labor productivity and efficiency indicators also appear to be value-relevant since firms with higher value marginal products of labor, and higher marginal productivity relative to average labor costs, outperform their counterparts with lower values of both measures. We conclude that labor cost voluntary disclosures might be potentially useful in assessing human capital asset management and performance which could be relevant to market participants particularly for firms in knowledgebased industries.

Research paper thumbnail of Human capital and knowledge governance

International Journal of Strategic Change Management, 2010

ABSTRACT This paper builds on prior literature of theories of the firm and its boundaries as well... more ABSTRACT This paper builds on prior literature of theories of the firm and its boundaries as well as on labour economics and human capital investments, to propose a conceptual framework to help explain and guide managerial decisions in providing both general and firm-specific training and human resource development. Underpinning the training transaction governance choice, organisational form decisions particularly with regard to strategic human resource management are affected. In addition to the two discrete modes of market and hierarchy governance modes, hybrid and plural forms of governance (e.g. concurrent sourcing, relational contracting, alliances and partnerships) combining and/or simultaneously using some aspects of both market and hierarchy are expected to prevail. This paper attempts to highlight some of the more important factors affecting the governance choice of such knowledge-intensive activities (i.e. training and development investments) and offers suggestions for future research.

Research paper thumbnail of A Content Analysis of Risk Management Disclosures in Canadian Annual Reports

Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration, 2009

Abstract This research paper examines risk information disclosures in Canadian annual reports to ... more Abstract This research paper examines risk information disclosures in Canadian annual reports to provide insights into the current risk disclosure environment, its characteristics, and the analytical usefulness of the information disclosed to the firm's stakeholders. ...

Research paper thumbnail of Environmental Performance, Environmental Risk and Risk Management

Business Strategy and the Environment, 2014

ABSTRACT Environmental performance, environmental risk and its management are of contemporary int... more ABSTRACT Environmental performance, environmental risk and its management are of contemporary interest, but to date there is limited evidence on their relationships. This paper is the first to provide detailed insights by adopting a content analysis approach and disaggregating firm-level environmental risk into types related to regulations, operations and nature. For a sample of US firms in polluting sectors, descriptive findings show that the level of risk and the likelihood of active risk management differ in the type considered. Environmental performance, risk and the likelihood of risk management all differ across firms and industries. Multiple regressions reveal a negative association between environmental performance and environmental risk, the extent of which depends on the type of risk. Results hold when controlling for active risk management which is not found to contribute significantly to environmental performance. Our findings have implications for public policy and suggest that linkages to environmental risk and risk management are worth exploring in more differential ways and beyond industry-level assessments in environmental studies.

Research paper thumbnail of Farmers' preferences for crop contracts

An empirical approach combining elements of principal-agent theory and transaction cost economics... more An empirical approach combining elements of principal-agent theory and transaction cost economics is used to determine farmers' preferences for contract terms in crop production. The approach is tested by asking grain farmers to rank contract choices and specify price premiums in simulated case situations. The statistical results indicate that farmers' preferences for rates of cost sharing, price premiums, and financing arrangements are significantly influenced by asset specialization and uncertainty associated with the case situations, and by selected business and personal characteristics.