Shareholder value and Financialization: consultancy promises,management moves

In the pages of the daily financial press, 'shareholder value' is a loose rhetoric. For business consultants who sell financial metrics and implementation, shareholder value is also a product and a promise that purposive management action will be rewarded. This paper begins by considering the consultant's promise and the more guarded academic responses. It then presents empirics on micro performance and the meso limits to shareholder value and argues that most corporate managements cannot easily deliver what consultants promise and the capital markets demand. The paper ends by taking a broader view of value-based management as part of a process of financialization. If the results are contradictory and disappointing, a persistent gap between expectations and outcomes can nevertheless drive management behaviours, which change the world.     

Maximizing shareholder value: a new ideology for corporate governance

The decade-long boom in the US stock market and the more recent boom in the US economy have fostered widespread belief in the economic benefits of the maximization of shareholder value as a principle of corporate governance. In this paper, we provide an historical analysis of the rise of shareholder value as a principle of corporate governance in the United States, tracing the transformation of US corporate strategy from an orientation towards retention of corporate earnings and reinvestment in corporate growth through the 1970s to one of downsizing of corporate labour forces and distribution of corporate earnings to shareholders over the past two decades. We then consider the recent performance of the US economy, and raise questions about the relation between the maximization of shareholder value and the sustainability of economic prosperity.     

The effects of convergence: internationalization and the changing distribution of net value added in large German firms

The paper examines whether and how the increasing internationalization of firms impacts on the operation of a co-ordinated market economy. Following the tenets of agency theory, it assumes that an emerging market for corporate control changes the monitoring mechanisms that oversee management. Since Anglo-American forms of monitoring are usually associated with a higher return for investors compared with Continental European firms, a change in the distribution of the net value added of firms is expected. Using financial data on fifty-nine large German companies, the paper shows that the emerging convergence of German corporate governance practices to Anglo-American standards has had a weak, but significant, impact on the distribution of net value added. This is in contrast to the impact of the internationalization of firms on product markets, which does not have an effect. Since the market for corporate control is, however, still underdeveloped in Germany, the main effects remain to be seen.     

Corporate governance,property and democracy: a conceptual critique of shareholder ideology

Despite the resilience of national institutions and practices there are increasing signs that national systems of corporate governance are giving way to an idealized American model of shareholder activism and liquid equity markets. These pressures are ideologically backed by 'shareholderism', which consists of three claims: a prudential, a functional and a moral claim. The prudential one claims superior efficiency for shareholder control and market allocation of capital. The functional one bases its claim for shareholder control on the contribution of risk-carrying capital. The moral one is based on a liberal doctrine of ownership that grounds exclusive control rights in title-holders. This paper addresses the functional and moral claims. It argues that public equity markets do not contribute capital and that the Lockean conception of property is both untenable and morally reprehensible. Instead corporate democracy is proposed as a way to accommodate the conflicting claims of stakeholders. To do so an intelligent division of democratic labour is required. The paper ends with a sketch of such a model, through short outings to the real world of Dutch corporate governance.     

法治框架下德国地方治理：权力、责任与财政——以德国莱茵-法尔茨州A县为例的分析

力图在实地调研的基础上,参考德国相关的法律、法规和政策,以公共品供给为线索,描述德国乡村公共品供给的决策、实施与监督的全过程,着力分析公共品供给过程中的权力分配、责任结构和融资途径,以及公共品供给过程中的监督。认为,影响德国乡村公共品供给的因素主要是明确规定不同层级政府权力、责任的法律体系,乡村治理的结构,以及政府间的财政关系。其明显的特点可以归纳为:法治化、辅助性、市场化、公共利益取向、财政主导的融资渠道、健全的监督体制,以及良好的政府间关系。中国地方治理的转型则应该更多地从制度规定、公共财政体制和转移支付制度的建立、地方自主性的发挥、普遍的参与,以及有效的监督等几个方面来思考。     

Voting when the economy goes bad,everyone is in charge,and no one is to blame: The case of the 2009 German election

The economy was a major issue in Germany’s 2009 election. The global economic crisis did not spare Germany, whose economy is tightly integrated into the global economy. So when the German economy experienced a historical shock, did voters connect their views of the economy with their vote choice? Or did they, as some research has suggested, recognize Germany’s dependence on global markets and cut the government slack, especially when the government consists of the country’s two major parties? Using pre- and post-election panel surveys from the German Longitudinal Election Study (GLES), we investigate the weight that voters gave to the economy, relative to other considerations, when casting their ballot and whether governing parties were disproportionately judged based on the state of the economy.     

面向新世纪的德国经济与社会

正视现实,清醒地认识２１世纪所带来的机遇和挑战,是执政的德国社会民主党人和其他政治家共同关注的重要议题,无论是德社民党理事会制定的、提交党代会讨论的纲领草案,还是施罗德－－布莱尔宣言,都明确无误地表明,在全球化与德国经济发展、欧盟一体化及其扩展、劳动就业与社会福利,外交与国家安全等单方面,德国的构想和规划已明朗化。认真研究它们,不仅可以加深对德国未来战略的了解,而且对我们制定新世纪规划也具有较强的     

A transformation in the French model of shareholding and management

This article explores the French model of shareholding and management, identifying a significant transformation in the pattern of shareholding in the largest companies. In earlier configurations of ownership, first the State and then the system of cross shareholdings were at the centre of French capitalism; the new pattern of shareholding operates under a different logic and motivation. In effect, France has undergone rapid change from a 'financial network economy' to a 'financial market economy'. This new pattern of shareholding has not only broken the traditional system of cross shareholding, but it has also facilitated the arrival of foreign institutional investors who bring with them new techniques and demands on corporate management.     

Anti-capitalism in the name of ethno-nationalism: ideological shifts on the German extreme right

ABSTRACT

Sommer examines the (re-)emergence of anti-capitalist and anti-globalization themes within the ideology and discourses of the German extreme right. He argues that it would be short-sighted to interpret this development simply as another opportunistic attempt by the extreme right to incorporate Zeitgeist issues into its political agenda in order to appeal to a broader spectrum of supporters. An analysis of the latest campaigns of the Nationaldemokratische Partei Deutschlands (NPD)—the most successful extreme-right party in recent years—as well as the activities of groups that exist within the larger German extreme-right milieu, the so-called freie Kameradschaften, reveals that the taking up of social questions as well as anti-capitalist and anti-globalization themes marks a deeper shift within the political agenda of the extreme right in Germany. However, the analysis shows that racist and antisemitic issues do not disappear with this shift, but are linked with and incorporated into anti-capitalist and anti-globalization discourses.     

Behavioral consequences of mixed electoral systems: Deviating voting behavior of district and list MPs in the German Bundestag

Electoral rules should affect parliamentary behavior. In particular, deputies elected from single-member districts should be more likely to deviate from the party line than deputies elected under proportional representation. This paper suggests a framework for conceptualizing and modeling the effect of the type of mandate on deputies’ propensity to cast deviating votes in mixed electoral systems. The proposed modeling strategy uses disaggregated voting data and integrates dependencies among observations in a multi-level design. Empirically, the paper analyses voting behavior in the 16th German Bundestag (2005–2009) and shows that the odds of district MPs to deviate are significantly higher despite frequent claims that the two types of MPs behave alike. However, the behavioral differences cannot be attributed to attempts by district MPs to follow their local constituents as competing principals.     

Coalition type and voter support for parties: Grand coalitions in German elections

While scholars have generally acknowledged that coalition governments are less accountable to voters than single party majorities, surprisingly little differentiation is made among different types of coalition governments. In this paper, we examine voter support for two very different types of coalition governments: those with a single large party and a junior partner and grand coalitions—governing coalitions between two large but ideologically dissimilar parties. We argue that grand coalitions differ from the more typical senior–junior partners in terms of the ability of individual parties to respond to their constituencies. We test this argument using survey data from four German Election Studies (GES), before and after each of the two German grand coalitions (1965, 1969, 2005, and 2009), which provide a unique opportunity to compare voter support for grand coalitions to those of the more typical senior–junior party model. We find evidence that voters responded to grand coalitions by moving away from their traditional voting patterns, and increasing their support for parties outside of the grand coalition, although this effect varies by the number of alternative parties.     

The electoral victory of the NPD in Saxony and the prospects for future extreme-right success in German elections

ABSTRACT

Largely because of Germany's traumatic experience of National Socialism, German extreme right-wing parties have remained a marginal post-war political phenomenon. The spectacular electoral victory of the Nationaldemokratische Partei Deutschlands (NPD) in the Saxon parliamentary elections of September 2004 (9.2 per cent of the vote) nurtured the fear that a far-right party could establish itself at the national level. Backes explains the election victory by relating it to a set of Saxon and Eastern German circumstances. He demonstrates that unfavourable conditions, which have so far prevented the establishment of extreme right-wing parties at the national level, still prevail. Against this background, he shows that the NPD's capacity for taking advantage of advantageous conditions (like economic problems and xenophobia, rampant in some places) reaches its limits very quickly.     

过去10年的中国地方政府改革——基于中国地方政府创新奖的评价

依据中国地方政府创新奖创办以来五届申请项目的资料,辅以问卷调查,对过去10年来中国地方政府创新的若干问题进行了讨论。这些问题包括中国地方政府创新的现实性、创新的分布、创新的类型、创新的动力和可持续性以及创新的影响力。研究发现,必须从中国社会政治发展的总体背景出发来审视丰富多彩的地方政府创新。这些创新多是从问题出发的,是对现有体制的充实和发展。但是,创新分布于不同的层级和部门,所以其对整体制度的影响也会由于层级、部门之间的矛盾而受到削弱。     

The German Federal Election of 2017: How the Wedge Issue of Refugees and Migration Took the Shine off Chancellor Merkel and Transformed the Party System

The 2017 German federal election delivered dramatic electoral decline of the two traditional main parties, the Christian Democrats (CDU/CSU) and the Social Democratic Party (SPD), who had governed Germany in a ‘grand coalition’ government since 2013. The main reason for this outcome was the decision by Chancellor Angela Merkel to open Germany's borders for refugees and migrants, an unprecedented policy that abandoned border controls and remained in place between September 2015 and March 2016. This article focuses on how the refugee and migration problem subsequently turned into a wedge issue, splitting most German political parties and handing a major election victory to the main critics of Merkel's decision, namely the rightist Alternative for Germany (AfD) and the right‐wing liberals of the Free Democratic Party (FDP). Rather than explaining these developments in isolation, the article highlights how past welfare state retrenchment and fear over future economic prosperity make significant groups of the electorate, including former supporters of left‐of‐centre parties, lose confidence in the ability of the political system to deliver stability and social integration.     

Searching for electoral irregularities in an established democracy: Applying Benford’s Law tests to Bundestag elections in Unified Germany

This article investigates electoral irregularities in the 1990 to 2005 Bundestag elections of unified Germany. Drawing on the Second Digit Benford Law (2BL) by Mebane (2006), the analysis consists of comparing the observed frequencies of numerals of candidate votes and party votes at the precinct level against the expected frequencies according to Benford’s Law. Four central findings stand out. First, there is no evidence for systematic fraud or mismanagement with regard to candidate votes from districts where fraud would be most instrumental. Second, at the state level (Bundesland), there are 51 violations in 190 tests of the party list votes. Third, East German states are not more prone to violations than Western ones. This finding refutes the notion that the East’s more recent transition to democracy poses problems in electoral management. Fourth, a strong variation in patterns of violation across Bundesländer exists: states with dominant party control are more likely to display irregularities. The article concludes by hypothesizing and exploring the notion that partisan composition of nominees involved in the counting may produce a higher likelihood of violation and be a cause of Länder variation. This may especially be the case when a party dominates in a Bundesland or opponents to the former socialist regime party are involved in the counting.     

城镇化过程中农民家庭离散及治理研究——一个村庄的微观透视

家庭是社会的基石,农民家庭的稳定与幸福对于城镇化发展具有举足轻重的作用。改革开放40多年来,城镇化给城乡人民生活带来了巨大变化,也带来了新的挑战和困难。乡城流动过程中农民家庭发生异化,家庭成员或留或流,家庭处于离散状态。家庭离散虽然始于家庭,但要解决家庭离散问题,必须从制度入手,通过改变制度环境、实施制度关怀、实现多元合作治理,结束农民家庭的异态生存方式,给予其自由的迁移权。这不仅有利于实现农民家庭的体面劳动和幸福生活,而且也能为实现未来经济社会持续、稳定发展提供有力保障。     

Creating an enabling environment for housing: Recent reforms in Mexico

Abstract

A recent World Bank policy statement on housing advocates the reform of government policies, institutions, and regulations to enable housing markets to work more efficiently. The policy statement identifies several instruments that governments can use to address housing market constraints, and to improve the performance of the housing sector as a whole, while paying particular attention to the needs of the poor.

In recent years, the government of Mexico has employed many of the enabling instruments described in the World Bank's housing policy statement. This article reviews the role of housing in the Mexican economy and the major reforms that the Mexican government has implemented to improve the operation of the housing market so that private lenders and home builders can play an expanded role in addressing the country's housing needs. The World Bank has supported the government's reform program, and since 1985 it has lent more than $1.2 billion to Mexico for low‐income housing projects.     

Change of position within the German government as an arena of rivalling public interest groups—The case of the German buyer's premium as regulatory instrument for the purchase of electric cars in Germany

The present article deals with the role of the German federal government on promoting the increased production of electric cars in Germany. It shows the changing positions of different stakeholders in the Berlin arena, their interests, positions, and alliances. It examines the question of why and how the stakeholders, especially within the government, change their positions in the arena of electromobility. The paper refers to the principal‐agent theory associated with the empirical field of arena analysis. The empirical basis of this study comprises five high‐level expert interviews with key‐decision players in the electromobility arena: two former federal state secretaries of the Ministry of Transport and Digital Infrastructure (BMVI), Mr. Bomba, and the Ministry of Economy and Energie (BMWi), Mr. Machnig; the acting state secretary in the Ministry of Finance (BMF), Mr. Gatzer, and, in addition, the head of the Berlin representative office of a major German automobile manufacturer and the chairman of the National Platform on Electric Mobility. In addition to these interviews, a lot of participating observation was done between 2012 and 2013, as a major German automobile manufacturer provided insights into the group's representation in Berlin, the decision‐making process between the corporate headquarters and the public affairs managers in Berlin and Brussels, and the cooperation with the ministries in Berlin. The paper tries to fill a research gap: Scholarly research on the impact of the German federal government as an arena of rivalling public interest groups is scarce in Germany. The leading view takes the federal government as a monolith, which view is more based on “how it should act” as on empirical evidence (“how it acts”). Inductive evidence shows that the government does not exist, as it is a subarena of itself. The consequences of this observation for the theorization of the role of the government in the larger society, as being only one out of many players, are discussed in the text.     

Combatting antisemitism in the school playground: an Australian case study

The aim of Gross and Rutland's paper is to analyse the problem of antisemitic bullying in contemporary Australian state schools by investigating the case of Jewish children in those schools. The study is interdisciplinary, drawing on historical data and educational methodology, and employs a qualitative approach through semi-structured interviews conducted in Sydney and Melbourne with all the major actors: students (55), teachers (10), principals (4), parents (13) and Jewish communal leaders (10). Gross and Rutland argue that classical anti-Jewish stereotypes are perpetuated in the school playground, transmitted by children from one generation to the next. This finding provides an additional perspective to the general literature, which argues that racial prejudice and stereotypes are acquired primarily through home socialization, religious institutions and the media, and neglects the role of the school playground.