The exchange regime and trade balance in Turkey

Over the last 15 years, high trade deficits have become a source of external vulnerability for the relatively stabilized Turkish economy. This corresponds to the period where authorities have been following a floating exchange rate regime. Thus, this study aims to empirically show whether the adopted exchange rate regime has an impact on the trade balance for the period of 1987 Q1 to 2015 Q2. Estimation results indicate that there is a long-run relationship between the real effective exchange rate and trade balance under both fixed and floating regimes in Turkey, but there is no evidence for the J-curve hypothesis.     

The daughter effect: do CEOs with daughters hire more women to their board?

Using a sample of S&P 100 firms, we find that CEOs with a daughter are more likely to hire new women to their board of directors than CEOs without a daughter. Our results provide additional evidence that parents’ attitudes and actions are affected by the gender of their children and that the effect is strong enough to influence important decisions at large corporations.     

Urban Commoning as a Vehicle Between Government Institutions and Informality: Collective Gardening Practices in Tampere and Narva

This article examines the processes of urban commoning and its co-produced features of urbanity, making the claim that, through these processes, informality becomes translated into institutionalized city planning. Commoning is analysed through a comparative study that utilizes contingent features of urbanity and three modalities accommodating the informality–formality meshwork during urban change. The article contributes to research on urban transformations by integrating commons, informality dynamics and the constitution of state institutions. This focus is elaborated with reference to collective gardening practices in the context of two of the less studied European cities, Narva in Estonia and Tampere in Finland. The results of the study indicate that urban commoning takes place through delegating a public mandate and enacting uncertainty, two processes that informalize city government practices. Particular differences appeared in regard to the institutional porosity that enables unregulated spaces of collective gardening to be mobilized as part of urban politics. We argue that networked movements appear as an essential part of the urban logic of action producing meaningful connections in an informal–formal meshwork and bringing together multiple sites in the commoning process.     

Resilience of sustainability‐oriented and financially‐driven organizations

To answer key questions concerning how negative and positive financial performance gaps motivate organizations to build more resilient systems, we develop a conceptual process model to reveal the process by which financially and sustainability‐driven organizations can translate these negative and positive financial performance gaps into organizational resilience. We specify the different modes of search behaviors that these organizations pursue when encountering negative and positive financial performance gaps. We then expand on group engagement model to theorize that vicarious search is likely to encourage limiting behaviors, whereas internal search is likely to foster promotion behaviors. Finally, we explain how both promoting and limiting behaviors can be helpful in improving organizational resilience. In this way, we hope to advance research that connects and integrates relatively disparate realms and, more specifically, to contribute to the sustainability, resilience, and performance feedback literatures.     

Can sell-side analysts’ experience,expertise and qualifications help mitigate the adverse effects of accounting reporting complexity?

Review of Quantitative Finance and Accounting - We examine the relation between accounting reporting complexity and analysts’ performance and whether analysts’ qualifications,...     

Electronic and in-person service quality of hybrid services

The service industries have experienced dramatic changes in service delivery format because of fast-paced innovation in information technology. Hybrid services involve service deliveries through conventional and technology-enabled environments, each of which is complementary and non-interchangeable. However, limited research has examined consumer behavior in response to a series of relevant service episodes in different channels at different points in time. In other words, how customers perceive service quality at each service encounter and how the cumulative effect of these perceptions influences customers’ overall service value assessment and satisfaction remain unclear. This study addresses this research gap by investigating the sequential influence of e-service quality on in-person service quality in a hybrid service format in which interpersonal and computer-mediated services coexist but at different points in time. Empirical analysis shows that e-service quality directly and positively affects in-person service quality, which fully mediates the effects of e-service quality on perceived value and customer satisfaction. The sequence of service encounters matters because in-person service quality perception has a stronger effect than e-service quality on customer metrics. Cumulative quality perceptions significantly influence perceived value and overall customer satisfaction. Theoretical and managerial implications are presented in the discussion.     

Where Do Financial Constraints Originate from? An Empirical Analysis of Adverse Selection and Moral Hazard in Capital Markets

Despite the voluminous and growing literature on financial constraints, the origins of the constraints are hardly ever empirically analyzed. This paper offers such an analysis. We study, in particular, the empirical prevalence of adverse selection and moral hazard in capital markets using a unique survey data on Finnish small and medium-sized enterprises (SMEs). The survey data suggest that adverse selection is empirically more prevalent than moral hazard in the capital markets that the SMEs face. We also find that of the variables indicating the presence of adverse selection and moral hazard, the former has more explanatory power in regressions modeling the availability of external finance to the SMEs than the latter. Finally, we document that our proxies for adverse selection and moral hazard are inversely related to the age of firms, just like Peter Diamond’s (1989) model predicts.     

Regionality revisited: An examination of the direction of spread of currency crises

What determines the direction of spread of currency crises? We examine data on waves of currency crises in 1992, 1994, 1997, and 1998 to evaluate several hypotheses on the determinants of contagion. We simultaneously consider trade competition, financial links, and institutional similarity to the “ground zero” country as potential drivers of contagion. To overcome data limitations and account for model uncertainty, we utilize Bayesian methodologies hitherto unused in the empirical literature on contagion. In particular, we use the Bayesian averaging of binary models that allows us to take into account the uncertainty regarding the appropriate set of regressors.We find that institutional similarity to the ground zero country plays an important role in determining the direction of contagion in all the emerging market currency crises in our dataset. We thus provide persuasive evidence in favour of the “wake-up call” hypothesis for financial contagion. Trade and financial links may also play a role in determining the direction of contagion, but their importance varies amongst the crisis periods.     

Learning and knowledge diffusion in a global economy

I develop a dynamic general equilibrium model to understand how multinationals affect host countries through knowledge diffusion. Workers in the model learn from their managers and knowledge diffusion takes place through worker mobility. Unlike in a model without learning, I present a novel mechanism through which an integrated equilibrium represents a Pareto improvement for the host country. I go on to explore other dynamic consequences of integration. The entry of multinationals makes the lifetime earning profiles of host country workers steeper. At the same time, if agents learn fast enough, integration creates unequal opportunities, thereby widening inequality. The ex-workers of foreign multinationals also found new firms which are, on average, larger than the largest firms under autarky.     

On the Welfare Significance of National Product for Economic Growth and Sustainable Development

This paper formulates an investment value transversality condition in a continuous-time growth model, which characterizes competitive paths along which current net national product measures the welfare achieved along the path. This transversality condition requires that the present value of net investment goes to zero asymptotically. An example provided shows that, in general, competitive paths do not necessarily satisfy this condition. It is also shown that, in a standard growth model including an exhaustible resource as an essential factor of production, competitive paths always satisfy this condition. Implications regarding national income accounting procedures and sustainable development policies are discussed.
JEL Classification Numbers: D90; O11; O41; Q32.