Employee representation and board size in the Nordic countries

Several European countries have mandatory employee representation on company boards, but the consequences for corporate governance are debated. We use employee representation rules in the otherwise quite similar Nordic countries (Denmark, Finland, Norway, and Sweden) to elicit information on shareholder preferences for employee representation and board size. We find that shareholders tend to choose board structures that minimize the proportion of employee representatives. In Denmark and Norway employee representation depends on board size, and shareholders choose board sizes that minimize the number of employee representatives. However, many companies have more employee representatives than is mandatory. In Sweden, where the law mandates a fixed number of employee representatives (two or three depending on firm size), shareholders choose to have larger boards. In Finland, where employee representation is not mandatory, <1 % of companies choose to have it. Whatever, the merits of employee representation, shareholders appear to be mildly averse to it.     

Imprinting and the progeny of university spin-offs

In this paper, we employ a genealogical imprinting approach to theorize that experiences incurred during the founding of a first-generation university spin-off will influence future spin-off activity from the focal firm. We propose that firms that secure equity investment during their founding process will have a higher likelihood of generating subsequent spin-offs, and that this impact is conditional on the human capital of the founding team. We test our hypotheses on a sample of 101 first generation university spin-offs around a large US research university and their subsequent progeny firms. This study develops a new understanding of multi-generational spin-off processes in a region.     

Inside or outside control of banks? Evidence from the composition of supervisory boards

This paper examines the composition of supervisory boards of 41 large German banks in 1999–2010. We find that the supervisory board structure reflects both outside control by major shareholders and inside control by other stakeholders. The largest group among non-employee board members is made up of bank managers. The high proportion of former executives and German board representation indicates significant inside control. The chairpersons of banks controlled by banks are less likely to be former executives of the same bank than are the chairpersons of banks controlled by non-banks. Over time, representation of industrial and insurance companies on banks’ supervisory boards has decreased and the representation of banks and foreign shareholders has increased.     

Reliability and validity of the oral interview board in police promotions: A research note

In recent years the validity of personnel systems has come to be more closely examined. This study focuses on one component of the police promotion system, the oral interview board. It examines the oral interview boards of a state police agency in which 161 state police troopers were aspiring for the rank of sergeant. Reliability and validity of the process are evaluated. The findings indicate that although the reliability coefficients were acceptable, significant differences in the ratings of similar types of raters across boards existed. Several statistical procedures were also used to investigate the validity of the procedure, but validity could not be established for this particular case. Several recommendations for improving the procedure are made.     

Influences of return migration on international collaborative research networks: cases of Japanese scientists returning from the US

The emigration of scientists facilitates the formation of international networks. However, are ties in such networks maintained after the scientists return to their respective home countries? Using data from the Web of Science, this paper analyzes whether Japanese migrant scientists returning from the US maintain the collaborative research network ties that they formed during their stay in the US and, if so, what features of these ties contribute to maintaining these relationships. The geographical distance between the US and Japan can impede the transfer of knowledge that is transmitted most effectively through face-to-face interactions. However, social proximity may compensate for geographical distance. Accordingly, the ties that Japanese scientists have formed with other Japanese scientists living in the US are more likely to be maintained than the ties that they have formed with scientists of different ethnicities. Social proximity was also measured by past experiences in collaborative research. The ties to scientists with whom Japanese scientists collaborated more frequently or co-produced papers with higher citation counts are more likely to be maintained after the scientists return to Japan. When collaborative research of American and Japanese scientists is worthwhile, they obtain mutual benefits through a ‘give and take’ in which they compensate for one partner’s lack of knowledge by the other partner’s knowledge. In a research field with which the developmental gap between the US and Japan is great, ties are less likely to be maintained.     

"Independence" and the nonprofit board: a general counsel's guide

In the wake of the Sarbanes-Oxley Act regulations that govern the public company sector, standards are emerging to assure that nonprofit corporate boards are maintaining appropriate levels of independence. This Article provides a summation of the current trends in the development of independence standards for nonprofit corporate governance, from both tax and corporate law perspectives. The authors consider independence standards for nonprofit boards of governance and discuss the evolution of independence standards as they relate to the duty of good faith, and the distinction between independence and conflicts of interest. The authors also seek to examine the evolution of current federal regulations and study state models that have been successfully implemented to insure the independence of nonprofit corporations. Finally, the authors propose a set of core guidelines to be considered when addressing board and committee independence issues.     

Determinant factors of university spin-off: the case of Korea

Increasingly more research has examined the creation of university spin-off firms as are seen as an important source of regional and national economic growth. However little is known about the factors influencing the formation of university spin-off in Asian countries, especially in Korea. This paper contributes to the literature on academic entrepreneurship by deepening our understanding on determinant factors of university spin-off in the case of Korea. We investigate organizational and institutional factors highlighted in the literature as influencing the creation of university spin-off companies. The Korean government has implemented the INNOPOLIS Research Institute Spin-off (IRIS) program to enable universities to create new firms within special research and development (R&D) zones to commercialize public R&D output. The capability of universities to establish new firms through the program varies; consequently, this study utilized 122 universities from 2013 to 2015 to analyze determinant factors that affect university spin-offs. Panel logit and negative binomial analysis results indicate that university location has the highest positive influence on IRIS. Government-sponsored funding has a negative impact; however, the likelihood that universities create spin-offs and the number of IRIS firms are positively and significantly affected by publications, patents, research funding, and number of university spin-offs.     

Social Network Position of Gang Members in Schools: Implications for Recruitment and Gang Prevention

Schools are venues in which gang and non-gang involved youth converge. It is therefore a likely venue for gang recruitment. The extent to which this occurs depends upon the ability of gang members to connect with non-gang members. In this study, we compare the social network positions of high social status gang members who are well integrated into school networks with low status members who are not. Using network data from the Add Health study (n = 1,822), we find that not only are high status gang members strongly embedded within school networks, but that this status is driven by their ability to connect with non-gang members rather than other gang members (indicated by the high number of friendship nominations they receive from non-gang members). These gang members are potentially in optimal positions to influence others to join gangs. The implications of these results for school-based gang prevention programs are discussed.     

The hospital board at risk and the need to restructure the relationship with the medical staff: bylaws,peer review and related solutions

This article argues that the current structure of the hospital governing board and medical staff relationship does not support and promote quality and patient-centered care. The fundamental flaw in the current structure is the interdependent, yet independent and discordant relationships between hospital governing boards and medical staffs. These relationships are described as cultures and fit into three types of "silos": organizational (the "structural silo"); professional (the "professional silo", including the "culture of blame"); and the fragmented quality information silo (the "informational silo"). While case law, statutory requirements and regulatory expectations clearly state that governing boards are ultimately responsible for quality of patient care, governing boards delegate these functions to medical staff without having sufficient information to measure and monitor quality. As a result, problems manifest because of these failures of oversight and compliance. Dramatic lapses in quality occur due to overuse, underuse, and misuse of healthcare services. Furthermore, the challenges and opportunities from improved quality and patient safety, as a strategic business driver, cannot be seized until the underlying structural flaws are understood and addressed. This article proposes that solutions become apparent when the various health care constituencies are educated about these cultural impacts and when multidisciplinary bodies, with board leadership and direct authority, integrate and consider quality information.     

Regulation of interlocking directorates in the financial sector: a comparative case study

Network analysis techniques are used for investigating the probable effects of a change in the regulation aiming to prevent the anticompetitive effects of interlocking directorates (ID), that is the crossed presence of directors in the boards of competing firms. The case study considers a recent Italian law (Section 36 of Law Decree n. 201/2011) which prohibits ID for credit, insurance and financial companies. The ID networks of the top-100 Italian listed companies and of the financial companies in this same list are considered and compared with the analogous networks in the US. The US networks represent a benchmark given that in the US companies act under Section 8 of the Clayton Act that has banned ID since 1914. The effects on the ID networks of the new Italian law are simulated under two different interpretations of the law. If the law will be applied according to a narrow interpretation, the Italian ID network will rest substantially unaltered. However, if the law will be applied according to a broad interpretation, the ID network for financial firms will be completely modified with a network configuration very similar to the American benchmark.     

中国公司法之构造缺陷及克服

作者认为 ,中国公司法在实践中存在以下缺陷 :有限公司与股份公司的组织机构之间区别模糊、国有独资公司定位不当、股份公司之董事会缺少有效约束、监事会的监督职能虚拟化以及对关联公司以及公司集团的约束不力。为更好地发挥公司在市场经济中的作用 ,实有改革有限公司制度以及重新塑造股份公司之董事会与监事会关系的必要。此外 ,还应当增加对关联公司与公司集团的法律规定。     

Convergence or path dependency in policies to foster the creation of university spin-off firms? A comparison of France and the United Kingdom

This paper examines attempts by French and UK governments to fill the gap between the US and Europe with respect to the creation of academic spin-offs. Analysis of the contrasting cases of the UK and France, shows that there is no convergence of national policies to foster the creation of firms by academics. Rather, the two countries demonstrate different rationales and approaches to policy in this area. In UK, the rationale for spin-off policy is mainly to develop a third stream of financing. Spin-offs are a part of a policy to commercialize technology and knowledge created by universities. Policy is at the university level, leading to the creation of diverse structures. Public schemes bring public money directly to universities. In France, the rationale for policy towards the creation of new ventures by academics is the development of high technology new ventures as part of a technological entrepreneurship policy. The notion of a third stream of financing for universities is an argument that is never advanced. The UK has placed the universities at the heart of policies aimed at the creation of spin-offs, this is not the case in France.     

Criminological theory in the digital age: The case of social learning theory and digital piracy

To date, few studies had attempted to extend existing theories of crime to technology driven crimes, such as digital piracy. To address this gap in the literature, this study explored the ability of Akers’ social learning theory in explaining the likelihood of engaging in digital piracy. Also explored was the extent to which the social learning process mediated the impact of several noteworthy correlates of digital piracy among college students attending different universities (n = 585), relying on a structural equation modeling (SEM) framework. The findings were modestly supportive of social learning theory as it may apply to digital piracy. The findings are discussed in the context of extending existing theories of crime to account for contemporary technology driven crimes, such as digital piracy. Policy implications and direction for future research are discussed.     

Factors fostering academics to start up new ventures: an assessment of Italian founders’ incentives

Why do university researchers decide to start-up a new venture? How can we distinguish between the different factors influencing such an important decision? To what extent are specific policies activated within universities relevant in the process of new venture creation? In this paper we try to answer these very significant questions, through an empirical analysis performed on a sample of 88 Italian academics involved in the creation of 47 spin-offs between 1999 and 2005. Our findings show that the availability of technologies with a potential for commercial exploitation, the possibility to access university infrastructures and the personal benefits are the most important incentives for academics. More generally, academics’ involvement in creating new ventures is not driven by an entrepreneurial attitude, but rather by the expectation of generating results which will enhance their academic position. Additional investments and efforts made by some universities to create more mechanisms to support spin-offs are not perceived as additional incentives. These results hold after controlling for academic founders’ institutional affiliation, status, and the companies’ growth over their first two years of existence. Implications for public policy and organizational processes are discussed.     

The university’s unknown knowledge: tacit knowledge, technology transfer and university spin-offs findings from an empirical study based on the theory of knowledge

The assumption that research findings provide the basis for spin-off projects at universities has been found up to now in literature and the practice. Supported by the theory of knowledge, the empirical study presented here shows that this idea is too limited. Only 45 % of spin-offs use codified research findings from the university, while 55 % use tacit knowledge that was acquired at the university. These spin-offs use knowledge beyond research findings, starting companies in the shadow of publications by academic institutions and drawing from the realm of tacit knowledge at universities. Tacit start-up knowledge is present in all scientific disciplines of universities; even the exploitation- and patent-oriented engineering sciences account for almost half of the start-ups. Start-ups based on tacit knowledge lead to both technology-oriented and service companies. They also do not differ from codified knowledge-based start-ups in the number of jobs that they create. The discovery of the tacit knowledge spin-offs as a phenomenon has an entire series of implications for the practice and research. The tacit start-up potential was not considered previously in the university promotion instruments and start-up consultancies. Furthermore, we can assume that tacit knowledge-based start-ups are only an initial indication of the innovation potential within the tacit realm of knowledge for universities and research institutes.     

The Strength of Strong Ties: University Spin-offs and the Significance of Historical Relations

This article investigates the relationship between universities and academic spin-offs, with special emphasis on the antecedent conditions of, and the nature of the linkages that the spin-offs form, as well as the means for sustaining them. The present research uses an instrumental case study approach, and is also an instance of a collective case study as four companies of various size and activities have been studied together. The preliminary results indicate that the network relations are characterized by a small number of strong ties to universities, with a high degree of trust and informality. Although fruitful for the transfer of complex knowledge, the strength of the ties also make them difficult to substitute, which may lead to problems as the spin-offs are highly dependent on continued basic research support. This may in turn lead to implications for policy at university, as well as higher levels.     

The performance of university spin-offs: an exploratory analysis using venture capital data

University spin-offs are defined as firms founded by university employees. Using a large database on venture-backed start-up companies, I describe the characteristics of university spin-offs and investigate whether they perform differently than other firms. I find that venture-backed university spin-offs are concentrated in the biotechnology and information technology industries. Moreover, a spin-off tends to stay close to the university, suggesting that technology transfer through spin-offs is largely a local phenomenon. Multivariate regression analyses show that university spin-offs have a higher survival rate but are not significantly different from other start-ups in terms of the amount of venture capital raised, the probability of completing an initial public offering (IPO), the probability of making a profit, or the size of employment.

Citizen participation on regulatory boards

This article examines the relationship between regulatory board function and citizen participation. The research indicates that public members generally prefer advisory boards, while provider members prefer quasi-judicial bodies. Implications of these findings for structuring citizen participation in the regulatory process are examined.     

The Opportunistic President: How US Presidents Determine Their Legislative Programs

The president is the most influential policy actor in US politics, and his legislative program greatly influences Congress's agenda. Yet little research has focused on what factors affect the president's choices when constructing his agenda. We develop a theory that determines when a president will include an issue in his program. We hypothesize that presidents structure their agendas around the congressional calendar for consideration of expiring laws and salient issues. Using data over 28 years and across 12 policy areas, we find presidents build their programs around these policymaking opportunities. We assert that presidential agendas are less driven by individual priorities than previous accounts have concluded.     

Behavioral Heterogeneity in Adolescent Friendship Networks

Criminologists’ understanding of peer influences has been greatly advanced by social network methods; however, relatively scant attention has been paid to improving measurement. In particular, research has continued to measure peer influence by averaging the level of delinquency within a peer network, thereby neglecting the role of behavioral heterogeneity. The present study seeks to advance theory and research into peer influences on delinquency by explicitly modeling behavioral heterogeneity in peer networks measured as the variance. Drawing on social learning and opportunity theories, we argue that behavioral heterogeneity should attenuate the effect of average peer delinquency on individual offending. Models using social network data from the Add Health were estimated predicting involvement in two delinquent substance-use acts (cigarette smoking and getting drunk) as a function of peer influences. The results are consistent with our hypothesis, indicating that behavioral heterogeneity matters. Findings suggest that future research employing network models could incorporate peer behavioral heterogeneity to get a more accurate portrait of the processes of peer influence.