August 16th, 2022 marked the 10th anniversary of the Marikana Massacre in Rustenburg, South Africa. This was the worst incident of mass killing by police since the Sharpeville Massacre in 1960 in the heyday of the Apartheid regime. In the first days of August 2012, workers at Lonmin plc, a platinum group metals mining company, went on a wildcat strike demanding a minimum salary of 12500 Rand, circa 800 USD, per month and protesting against the poor living conditions they and their families where subjected to in the Marikana vicinity, an area 100 km north of Johannesburg where the mine is located. As days passed, tension escalated leading to the killing of ten people, including three non-striking workers, two security guards, three striking workers, and two police officers. Various attempts to facilitate negotiations with striking workers were turned down by Lonmin management. Instead, Lonmin managers actively engaged in communications with senior political leaders, police officers, and state mining officials to frame the situation as one that required strong and decisive police intervention.1

There has been tremendous momentum in adoption of business and human rights regulations, specifically national legislation that mandate human rights due diligence. While these laws have been heralded as the torchbearers of progress, this article approaches national legislation on business and human rights by placing them in context of a North–South divide through a Third World Approaches to International Law (TWAIL) lens. It looks at the form of regulation of transnational corporations (national/international) – not the substance – and illustrates the neo-colonial flavour of these laws by diving into the narrative behind the adoption of the French devoir de vigilance law. It illustrates that the French law can also be read as an attempt to universalise European values while reinforcing power hierarchies. The claim of this article is that national legislation cannot be a substitute for a treaty but only a path towards one, because national legislation structurally lacks means to take the Global South participation seriously.

Contrary to leading asset pricing theories, recent empirical evidence indicates that financial markets compensate only short-term equity variance risk. An equilibrium model with generalized disappointment aversion risk preferences and rare events reconciles salient features of the variance term structure. In addition, a calibration explains the variance and skew risk premiums in equity returns and the implied volatility skew of index options while capturing standard moments of fundamentals, equity returns, and the risk-free rate. The key intuition for the results stems from substantial countercyclical risk aversion induced by endogenous variation in the probability of disappointing events in consumption growth.

We exploit the arrival of industry-wide synergistic merger waves to identify whether classified boards deter takeover bids. In a stylized model, we show that when target classified boards are costly to bidders, their negative effect on takeover likelihood should be more pronounced during merger waves. Using a sample of takeover bids in the United States between 1990 and 2016, we find strong evidence supporting this prediction. The results are robust to accounting for the benefits of classified boards and controlling for other antitakeover provisions. Our findings suggest that classified boards effectively reduce a firm’s exposure to the takeover market.

As China has made it a top priority to enrich and upgrade its chip capabilities across the value chain, some international observers predict that China's semiconductor industry will eventually, if not immediately, surpass its foreign competitors. Others remain skeptical about its presumed tech supremacy for plausible but largely speculative reasons. Is the Chinese semiconductor industry a game-changer or a paper tiger? Is China's indigenous chip technology attractive to, and usable by, foreign technology? One way to look into these half-empty/half-full questions is to comparatively analyze chip patents granted by the US Patent and Trademark Office. The target domain of this study is integrated circuits (IC) technology, especially thin-film-transistor circuits, where China has recently registered a sharp growth in patent publications. Using the modified forward citation indices of panel display-related IC patents, this study examines whether and to what extent the quantitative growth in the Chinese semiconductor industry has been translated into a gravitational force to pull foreign industries within its sphere of influence. Estimation results of a zero-inflated negative binomial regression analysis show that a Chinese chip patent has a fewer expected modified forward citation index than a non-Chinese patent. These findings indicate that the technological gap between China and advanced countries will take longer to close despite China's accelerated campaign for chip supremacy. This study concludes, with some caveats, that China faces the dual challenge of achieving higher productivity and greater self-reliance, while having to survive in the escalating technological competition with other advanced countries.

In 2021 the ruling party in Poland proposed a reform to reverse the regressivity of the Polish tax system. Although the number of potential beneficiaries significantly exceeded the number of sufferers, the media coverage of the reform was strongly negative. This pushed the government to introduce reform adjustments, all of which benefited the high-income self-employed, increasing the cost of the reform and reducing its redistributive effect. To explain this, we analyze articles on the reform published in the three most opinion-forming newspapers. We demonstrate that the negative media coverage stemmed from successful incorporation of business narratives in the public debate by the business lobbying associations. It was supported by the weakness of workers’ organizations and a low level of citizens’ trust in government.

Supervisory mentoring represents a type of social dilemma called a delayed social fence. This study adopts a social dilemma perspective to examine how the three types of psychological contracts (balanced, relational, and transactional) perceived by supervisors differently influence their mentoring. Drawn on social dilemma perspective, we proposed that supervisory mentoring would be more likely to occur when supervisors perceived benefit return from their mentoring provision in a timely manner. The results obtained from a sample of 596 supervisor–subordinate matched data from the self-reported questionnaires completed by 225 sales agent teams in the insurance industry in Taiwan support our predictions. Consistent with the social dilemma perspective, supervisory mentoring is more likely among subordinates whose supervisors perceived balanced psychological contract, while supervisory mentoring is less likely among subordinates whose supervisors perceived transactional psychological contract. Furthermore, we found that supervisory mentoring is positively related to subordinate performance. Our mentor-centric multilevel framework helps identify the social dilemma nature underlying mentoring provision, and verify the positive influence of mentoring on protégé performance.

Exploiting two quasi-natural experiments, we find that firms increase emissions of toxic pollution following decreases in analyst coverage. The effects are stronger for firms with low initial analyst coverage, poor corporate governance, and firms subject to less stringent monitoring by environmental regulators. Decreases in environmental-related questions raised in conference calls, an increased cost of monitoring to institutional shareholders, reductions in pollution abatement investment, and the weakening of internal governance related to environmental performance are channels through which reduced analyst coverage contributes to increases in firm pollution. Our study highlights the monitoring role analysts play in shaping corporate environmental policies.

We examine the effects of implementing a U.S. approach to the enforcement of mandatory disclosure in China. Using a hand-collected sample of comment letters (CLs) issued by the Shanghai Stock Exchange over the period of 2013 to 2018, we show that stock price reactions to CL receipts and replies are negative and significant. Using textual analysis to match issues raised by regulators to targeted firms’ changes in disclosure, we show that these firms do address CL issues point by point, but do not experience significant improvements in their information environments. Our article highlights the importance of incentives rather than regulation/enforcement in reducing information asymmetry.

This article studies how industry peers’ stock prices respond when another firm in the industry is acquired by a foreign firm. The average stock price reactions of industry peers in horizontal foreign acquisitions around deal announcements are significantly negative. Peers’ returns are more negative in growing, less specialized, and competitive industries. Moreover, the negative stock price reactions of industry peers are related to future decreases in their operating performance. Overall, these results suggest that foreign acquisitions have strong competitive effects for the industry peers of U.S. target companies.

Drawing on social resources theory and social exchange theory, we propose that two forms of employee proactive behaviors, namely voice and taking charge, influence a leader’s perception of their employees and hence affect the interpersonal relationships within the dyad. We introduce an expanded construct, termed as the leader perceived constructiveness, as a mediating mechanism that links the effects. We further propose two conditional factors that also govern the effects. Pairwise data collected from Taiwanese employees and supervisors in two separate studies provide support for the theorized hypotheses and confirm that the indirect relationship between employees’ proactive behaviors and leader–member exchange (LMX) is augmented by their past performance. Our study advances the literature by adopting a more follower-centered framework. Moreover, by demonstrating how and when employee-initiated behaviors affect upwardly and improve the dyad outcome, we also contribute to the LMX literature and provide useful insights for managerial practice.