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Author: Randall Kroszner Publisher: ISBN: Category : Languages : en Pages :
Book Description
The following is a description of the paper, and not the actual abstract: This paper investigates empirically whether the internal organization of the firm can play an important role in affecting a firm's ability to commit to a particular quality of business practices and, if so, whether competition would be sufficient to lead firms to adopt that structure. In particular, we study how commercial banks have developed quot;firewallsquot; to address potential conflicts of interest when they are also engaged in investment banking. Before the 1933 Glass-Steagall Act forced banks out of investment banking, commercial banks organized their securities activities in two ways: as an internal securities department within the bank and as a separately incorporated affiliate with its own board of directors.Although the internal departments underwrote seemingly higher quality firms and securities than did comparable affiliates, the departments obtained lower prices for the issues they underwrote. The greater risk premium associated with the internal department is consistent with investors discounting for the greater likelihood of conflicts of interest when lending and underwriting are within the same structure. Commercial banks responded to this pricing disadvantage for the internal departments by moving strongly toward adopting the separate affiliate structure during the period. We find that increasing the proportion of affiliate directors who are independent from the parent bank reduced the risk premium for the securities underwritten by the affiliate. Independent directors thus appear to have provided an important mechanism by which the affiliates could enhance their credibility in the market. Overall, our results suggest that organizational design can be an effective commitment device and, absent other distortions, competitive pressures would provide sufficient incentives for banks to adopt an organizational design that would address regulatory concerns about potential conflicts of interest.
Author: Randall Kroszner Publisher: ISBN: Category : Languages : en Pages :
Book Description
The following is a description of the paper, and not the actual abstract: This paper investigates empirically whether the internal organization of the firm can play an important role in affecting a firm's ability to commit to a particular quality of business practices and, if so, whether competition would be sufficient to lead firms to adopt that structure. In particular, we study how commercial banks have developed quot;firewallsquot; to address potential conflicts of interest when they are also engaged in investment banking. Before the 1933 Glass-Steagall Act forced banks out of investment banking, commercial banks organized their securities activities in two ways: as an internal securities department within the bank and as a separately incorporated affiliate with its own board of directors.Although the internal departments underwrote seemingly higher quality firms and securities than did comparable affiliates, the departments obtained lower prices for the issues they underwrote. The greater risk premium associated with the internal department is consistent with investors discounting for the greater likelihood of conflicts of interest when lending and underwriting are within the same structure. Commercial banks responded to this pricing disadvantage for the internal departments by moving strongly toward adopting the separate affiliate structure during the period. We find that increasing the proportion of affiliate directors who are independent from the parent bank reduced the risk premium for the securities underwritten by the affiliate. Independent directors thus appear to have provided an important mechanism by which the affiliates could enhance their credibility in the market. Overall, our results suggest that organizational design can be an effective commitment device and, absent other distortions, competitive pressures would provide sufficient incentives for banks to adopt an organizational design that would address regulatory concerns about potential conflicts of interest.
Author: Randy Kroszner Publisher: ISBN: Category : Bank management Languages : en Pages : 72
Book Description
This paper investigates how organizational structure can affect a firm's ability to compete. In particular, we examine the two ways in which U.S. commercial banks organized their investment banking operations before the 1933 Glass-Steagall Act forced the banks to leave the securities business: as an internal securities department within the bank and as a separately incorporated and capitalized securities affiliate. We document a strong movement toward the use of the affiliate structure during the 1920s, and regulation does not appear to explain this evolution. While departments underwrote seemingly higher quality firms and securities than did comparable affiliates, the departments obtained lower prices for the issues they underwrote. This evidence is consistent with the hypothesis that there was a perception of potential conflicts of interest when lending and underwriting were closely combined in the departmental structure. We find evidence that bank managers during this period were concerned about such perceptions. We then develop further tests to support the view that by distancing underwriting activities from lending operations, banks could more credibly certify the quality of the issues they underwrote, thereby obtaining higher prices for them. Our results suggest that internal organization may indeed affect the activities and effectiveness of a firm. They also suggest that bank regulators' interest in 'firewalls' between commercial and investment banking may be reasonable, but that the market may propel banks to adopt an internal structure that would address regulators' concerns.
Author: Henry Mintzberg Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Synthesizes the empirical literature on organizationalstructuring to answer the question of how organizations structure themselves --how they resolve needed coordination and division of labor. Organizationalstructuring is defined as the sum total of the ways in which an organizationdivides and coordinates its labor into distinct tasks. Further analysis of theresearch literature is neededin order to builda conceptualframework that will fill in the significant gap left by not connecting adescription of structure to its context: how an organization actuallyfunctions. The results of the synthesis are five basic configurations (the SimpleStructure, the Machine Bureaucracy, the Professional Bureaucracy, theDivisionalized Form, and the Adhocracy) that serve as the fundamental elementsof structure in an organization. Five basic parts of the contemporaryorganization (the operating core, the strategic apex, the middle line, thetechnostructure, and the support staff), and five theories of how it functions(i.e., as a system characterized by formal authority, regulated flows, informalcommunication, work constellations, and ad hoc decision processes) aretheorized. Organizations function in complex and varying ways, due to differing flows -including flows of authority, work material, information, and decisionprocesses. These flows depend on the age, size, and environment of theorganization; additionally, technology plays a key role because of itsimportance in structuring the operating core. Finally, design parameters aredescribed - based on the above five basic parts and five theories - that areused as a means of coordination and division of labor in designingorganizational structures, in order to establish stable patterns of behavior.(CJC).
Author: Peter A. Gourevitch Publisher: Cambridge University Press ISBN: 1107379458 Category : Political Science Languages : en Pages : 247
Book Description
We rely on NGOs to monitor the ethical practices of governments and for-profit firms and to undertake many humanitarian tasks that public and private actors will not do. While we are critical of public and private sector failures, we do not reflect enough on the credibility of the NGOs which take their place. Can we be sure that products NGOs label as child-labor free are in fact so, that the coffee labeled as 'fair trade' is farmed in sustainable ways, or that the working conditions monitored by NGOs are safe and that the wages are reasonable? Can we know that humanitarian organizations are, in fact, using our donations to alleviate human suffering rather than pursuing other goals? This book explores the problems of establishing the credibility of NGO activities as they monitor working conditions, human rights and elections and provide finance through microcredit institutions, development aid and emergency assistance.
Author: Leadership Staff Publisher: ISBN: 9781930759237 Category : Languages : en Pages : 114
Book Description
Visions of tomorrow will be impossible to achieve without credibility. In most cases, "establishing credibility" with a customer, colleague, or supplier takes a relatively long period of time. However, unlike the process of establishing credibility that usually takes a substantial amount of time, "losing credibility" may occur instantaneously.Credibility has become such a significant concept that people are promoted ahead of others because of it, sales are frequently lost because of a lack of it, and long-term business relationships are established because of a mutual appreciation for dimensions of it. It is with this attitude towards credibility that you will be able to truly keep your company on the leading edge competitively, techinically, and ehtically. Each person plays a vital role in achieving this state of excellence. It is from the individual employee's perspective of communicating credibility that this text may be most beneficial.Table of ContentsLeadership GuidanceChapter 1 - Credibility OverviewA. Credibility DefinedChapter 2 - Credibility Through "Propriety"A. Communicating ProprietyB. AppearanceC. Business EtiquetteD. The PresentationE. Interpersonal Communications SkillsChapter 3 - Communicating Professional "Intent"A. AttitudeB. VersatilityC. EmpathyD. EthicsChapter 4 - How To Communicate Professional "Expertise"A. Audience AnalysisB. Conceptual Communication ToolsC. Laws of Learning & Organizational Structure of InformationChapter 5 - Presenting InternationallyA. A Cultural OverviewB. Organizing and International PresentationC. Delivering the International PresentationAppendices1. One-on-One Executive Meetings with Your Customers2. Presentation Process3. International Presentation Checklist4. Leadership Solutions
Author: Philip Keefer Publisher: World Bank Publications ISBN: Category : Democracy Languages : en Pages : 45
Book Description
"Keefer and Vlaicu demonstrate that sharply different policy choices across democracies can be explained as a consequence of differences in the ability of political competitors to make credible pre-electoral commitments to voters. Politicians can overcome their credibility deficit in two ways. First, they can build reputations. This requires that they fulfill preconditions that in practice are costly--informing voters of their promises, tracking those promises, and ensuring that voters turn out on election day. Alternatively, they can rely on intermediaries--patrons--who are already able to make credible commitments to their clients. Endogenizing credibility in this way, the authors find that targeted transfers and corruption are higher and public good provision lower than in democracies in which political competitors can make credible pre-electoral promises. They also argue that in the absence of political credibility, political reliance on patrons enhances welfare in the short run, in contrast to the traditional view that clientelism in politics is a source of significant policy distortion. However, in the long run reliance on patrons may undermine the emergence of credible political parties. The model helps to explain several puzzles. For example, public investment and corruption are higher in young democracies than old; and democratizing reforms succeeded remarkably in Victorian England, in contrast to the more difficult experiences of many democratizing countries, such as the Dominican Republic. This paper--a product of the Growth and Investment Team, Development Research Group--is part of a larger effort in the group to investigate the political economy of development"--World Bank web site.
Author: Randall S. Kroszner Publisher: Cambridge University Press ISBN: 1316025233 Category : Business & Economics Languages : en Pages : 664
Book Description
This book brings together classic writings on the economic nature and organization of firms, including works by Ronald Coase, Oliver Williamson, and Michael Jensen and William Meckling, as well as more recent contributions by Paul Milgrom, Bengt Holmstrom, John Roberts, Oliver Hart, Luigi Zingales, and others. Part I explores the general theme of the firm's nature and place in the market economy; Part II addresses the question of which transactions are integrated under a firm's roof and what limits the growth of firms; Part III examines employer-employee relations and the motivation of labor; and Part IV studies the firm's organization from the standpoint of financing and the relationship between owners and managers. The volume also includes a consolidated bibliography of sources cited by these authors and an introductory essay by the editors that surveys the new institutional economics of the firm and issues raised in the anthology.
Author: Mary Godwyn Publisher: SAGE Publications ISBN: 141299196X Category : Social Science Languages : en Pages : 769
Book Description
The sociological study of organizations encompasses both planned and formal organizations as well as spontaneous and informal ones. Sociologists examine organizations with attention to structure and objectives, interactions among members and among organizations, the relationship between the organization and its environment and the social significance or social meaning of the organization. The ways of defining and examining organizations vary depending on the theoretical emphasis. This book focuses on three things: * providing a wide and historically accurate portrait of the diversity of sociological theories and their application to organizational studies * updating selections that reflect a variety of ways that new technology affects methods of organizing and types of organizations * including readings that examine a range of both formal and informal structures, and both deliberate and impromptu interactions. Lively and provocative, this textbook is theoretically rigorous, disciplinarily informed and representative of heterogeneity within organizational studies.
Author: Neil W. Chamberlain Publisher: Simon and Schuster ISBN: 1416576452 Category : Business & Economics Languages : en Pages : 203
Book Description
This new work by Neil W. Chamberlain will be of great importance to the business community -- and to all those charged with defining the role large corporations play in the affairs of society. Social Strategy and Corporate Structure is an objective, indepth examination of the organizational requirements of a social role for large-scale business. The role Neil Chamberlain presents is one of heroic dimensions: the political choice of goals, the strategic allocation of resources, and the tactical operations of the mechanisms of production. While there has been much discussion of corporate social responsibility, few have investigated the ways its structure will have to change if the corporation is to pursue a strategy that is both economic and social. This timely book integrates a large number of issues involving corporate activities and governance that go directly to the heart of this problem. In step-by-step detail, Chamberlain analyzes the organizational imperatives of this new age of social responsibility: the composition and functions of boards of directors and the relation of their duties to a broad system of national planning; the internal social audit; changes in the characteristics of corporate social planning; and proposals for restructuring ultimate corporate authority, either through public or outside directors. In addition, he examines the potential relevance of federal chartering of corporations, and the effects of international economic interdependence on the development of a new corporate social strategy. This book is not a detailed blueprint for change. Rather, it presents a thorough, systematic study of available courses of action for improvement, based on the principle that conventional notions of corporate independence will have to be modified for any social strategy to work. And while not everyone will agree with Neil Chamberlain, few can afford to ignore his provocative insights into what corporations must do to function effectively in a changed social environment.
Author: Randall Kroszner
Author: Randall Kroszner
Author: Randy Kroszner
Author: Aquinas P. G.
Author: Henry Mintzberg
Author: Peter A. Gourevitch
Author: Leadership Staff
Author: Philip Keefer
Author: Randall S. Kroszner
Author: Mary Godwyn
Author: Neil W. Chamberlain