David J. Flanagan

The Effect of Layoffs on Firm Reputation

A firm’s reputation is perhaps one of its most important strategic resources. Using data from Fortune’s America’s Most Admired Companies survey, this article examines how layoffs affect the reputations of firms. The authors found that layoffs have a negative impact on a firm’s reputation and that this relationship is significantly stronger for newer firms than older firms. Limited support is found for the hypothesis that larger firms’ reputations will be buffered from the adverse effects of a layoff on their reputations. Implications of this research and future research questions are discussed.

Determinants of Layoff announcements following M&As : An empirical investigation

It is often argued that mergers and acquisitions (M&As) lead to employee layoffs. This paper examines factors that influence the probability that a layoff announcement will follow an M&A. A sample of 136 large M&As, involving U.S. targets, that occurred between 1989 and 1993 is analyzed. Analyses of this sample indicate that the probability of a layoff announcement is higher if the firms involved in the transaction are related. The probability that a layoff will be announced was not changed when the acquirer was a non-U.S. firm (cross-border transactions). Target revenue per employee before the M&A is negatively related to the probability that a layoff was announced. Target financial performance prior to the transaction and use of borrowed funds to finance the merger were not found to have an impact on the probability that a layoff will be announced.

Core-related acquisitions, multiple bidders and tender offer premiums

Abstract This research analyzes the impacts of core-relatedness and multiple bidders on premiums paid in 285 tender offers for US-based manufacturing firms. In a core-related M&A, the primary business of the acquirer is the same, vertically connected to or similar to the primary business of the target firm. This study proposes and finds a large interaction effect between the impacts of core-relatedness and multiple bidders on tender offer premiums. The presence of multiple bidders is found to have a greater impact on tender offer premiums when the eventual acquirer is not core-related to the target. In other words, acquirers that are not core-related to the firms they purchase, tend to pay very high premiums when multiple bidders compete for the target. Results show that the direct relationships between core-relatedness and premiums as well as the direct relationship between multiple bidders and premiums depends on the state of the interaction effect.

An overview of accounting restatement activity in the United States

Purpose – The purpose of this paper is to provide an overview of financial restatements by US companies to help students, professors, and practitioners gain a better understanding of restatements. Data from restatement activity that occurred between January 1, 1997 and June 30, 2002 is presented and relevant literature is cited to discus the players involved in restatements, the causes of restatements and their impacts.Design/methodology/approach – A sample of 919 restatement announcements compiled by the General Accounting Office (GAO) that occurred between January 1, 1997 and June 30, 2002 is analyzed. The data and the relevant literature are used to examine the roles of companies, auditing firms, and the Security and Exchange Commission (SEC) in the financial reporting process and show how they are involved in prompting restatements. Literature is also reviewed on the root causes of restatements and their impact.Findings – The misstatements that lead to earnings restatements are driven by a variety of ...

Instructional Design as Knowledge Management: A Knowledge-in-Practice Approach to Choosing Instructional Methods

Decisions about instructional methods are becoming more complex, with options ranging from problem sets to experiential service-learning projects. However, instructors not trained in instructional design may make these important decisions based on convenience, comfort, or trends. Instead, this article draws on the knowledge management literature and specifically the knowledge-in-practice framework to develop a theoretical process for choosing instructional methods. This process classifies the underlying knowledge structure of learning objectives along the dimensions of tacitness and learnability, then matches the knowledge structure with instructional methods that will be the most appropriate fit for students working toward that learning objective. We propose that the integration of knowledge management with instructional design offers valuable insights into the process of choosing appropriate instructional methods, and our framework can help instructors determine which instructional methods are the best match for their learning objectives.

The sustainable company: looking at goals for people, planet and profits

Purpose This paper aims to explore the landscape of sustainability goals set by large firms. Design/methodology/approach Sustainability reports were content analyzed using the triple bottom line framework. Findings This study identified 389 goals among 22 firms. The most common goals focused on the natural environment. On average, the firms list 18 sustainability goals. These included an average of eight “planet” goals, seven “people” goals and three “overarching” goals. Practical implications This research should be useful to sustainability professionals who are setting goals for their firms and seek to understand the current landscape of goals set by large firms. Originality/value Although previous research has analyzed the content of sustainability reports, this is the first paper to explore sustainability goals. Given the importance of goal setting in strategic management, this paper fills an important gap in the intersection between sustainability and strategy.

Coopetition among nascent craft breweries: a value chain analysis

Purpose The purpose of this paper is to employ an inductive approach to explore how small, nascent, firms in the craft brewing industry use cooperative behaviours with direct competitors to achieve their goals. Design/methodology/approach Data were gathered from interviews with the founders of seven small, newly established, craft brewers in a Midwestern city in the USA for this exploratory study. Data analysis followed the general tenants of inductive coding. Porter’s value chain model was used as a framework to organise and conceptualise the coopetitive behaviour uncovered. Findings The firms engage in cooperative behaviours with their direct competitors in areas such as process technology development, procurement, inbound logistics and marketing. A particularly interesting and common collaborative activity was breweries recommending/promoting competing breweries to their own customers. Practical implications This study provides clear examples of how relationship building with competitors could be advantageous and help small, nascent firms overcome the liabilities of newness and smallness. Originality/value Research on coopetition has called for a greater understanding of the nature of cooperative behaviours in small firms, start-ups and firms outside of high-technology industries. Moreover, research has called for finer-grained approaches to conceptualising coopetition. This paper fills these gaps and shows how Porter’s value chain is a useful tool for organising the types of collaborative behaviours that can be part of coopetition. The findings enhance understanding and facilitate future research by illustrating a broad array of cooperative activities that occur between direct competitors.