Finite Sample Correction Factors for Panel Cointegration Tests*

In this paper we present finite T mean and variance correction factors and corresponding response surface regressions for the panel cointegration tests presented in Pedroni (1999, 2004) , Westerlund (2005) , Larsson et al. (2001) and Breitung (2005) . For the single equation tests, we consider up to 12 regressors and for the system tests vector autoregression dimensions up to 12 variables. All commonly used specifications for the deterministic components are considered. The sample sizes considered are T ∈ {10,20,30,40,50,60,70,80,90,100,200,500}.     

Innovation and competitive advantages from the integration of strategic aspects with social and environmental management in European firms

This paper analyses the nature and details of the association that the integration of social and environmental considerations with corporate strategy has for different competitive advantages and innovation activities at the firm level. Its objective is to answer the question as to whether a positive link exists between integration and the effects of environmental and social performance on these different dimensions of economic performance. The question of the specific form of this relationship is also raised. These questions are analysed using cluster analysis and regression models. Results are presented for four different dimensions of competitive advantage, and for two types of innovation activity. These raise the possibility that the process of integration is more important for bringing about a positive link than a resulting integration type. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

The Origins of the German Corporation - Finance, Ownership and Control

The ownership of German corporations is quite different today from that of Anglo-American firms. How did this come about? To what extent is it attributable to regulation? A specially constructed data set on financing and ownership of German corporations from the end of the 19th century to the middle of the 20th century reveals that, as in the UK, there was a high degree of activity on German stock markets with firms issuing equity in preference to borrowing from banks, and insider and family ownership declining rapidly. However, unlike in the UK, other companies and banks emerged as the main holders of equity, with banks holding shares primarily as custodians of other investors rather than on their own account. The changing pattern of ownership concentration was therefore very different from that of the UK with regulation reinforcing the control that banks exercised on behalf of other investors.     

The Reform of the German Works Constitution Act: A Critical Assessment

Since 1920, the thrust of German law on workplace codetermination has changed on a number of occasions. We describe the latest swing of the legislative pendulum—favoring works council formation and competence—and evaluate the case for it. We provide new information on the extent of works councils before reviewing the evidence on their economic effects, focusing on some new results from matched-plant data. If the former evidence points to a codetermination deficit, this shortfall does not appear to have negative consequences for workplace productivity, profitability, and employment.     

Volkswirtschaftliche Politikberatung

Ohne Zusammenfassung Gert G. Wagner ist Inhaber des Lehrstuhls für Volkswirtschaftslehre an der TU Berlin, Forschungsdirektor am Deutschen Institut für Wirtschaftsforschung (DIW Berlin) und Mitglied im Wissenschaftsrat     

Climate for Scandal: Corporate Environments that Contribute to Accounting Fraud

We examine the governance characteristics, earnings quality, growth rates, dividend policy, and compensation structure of 97 firms recently under investigation by the Securities and Exchange Commission (SEC) for accounting fraud. Our results show that the corporate environment most likely to lead to an accounting scandal manifests significant growth and accounting practices that are already pushing the envelope of earnings smoothing. Firms operating in this environment seem more likely to tip over the edge into fraud if there are fewer outsiders on the audit committee and outside directors appear overcommitted.     

Still balancing the books: the NUM and the 1984–85 strike

In the context of the NUM's decision to seek a merger, this article examines the financial impact of the 1984–85 strike. In conducting the strike, its federal structure is shown to have provided the union leadership with flexibility. But it has limited the capacity to recover afterwards and has consequences for merger prospects with other unions.     

保险业要么锁定客户，要么收购

贝恩公司调查发现,仅有1／10的保险公司成功地实现连年持续地创造价值。许多公司最终表现欠佳的主要原因在于,他们严重误判自己提供客户所需产品／服务的能力。当高级主管被问及是否认为本公司提供最佳客户体验时,77％的高管自认为是,但仅有6％的客户认同。那么,究竟什么才是保险业实现最佳股东回报的关键呢?