Behavioral agency and corporate entrepreneurship: CEO equity incentives & competitive behavior

Scholars have long studied drivers of entrepreneurial behavior among established firms. Yet little is known about how individual factors shape a firm’s choice to pursue entrepreneurship. We draw on behavioral agency theory to explore the role of equity incentives in driving corporate entrepreneurship. Our findings suggest CEOs avoid corporate entrepreneurial behaviors as their option wealth increases. However industry dynamics also prove to be an important contingency when predicting the effects of both restricted stock and stock options on the likelihood that the CEO engages in corporate entrepreneurship. Our findings provide a theoretical platform for predicting dimensions of entrepreneurial behavior and highlight effects of CEO equity ownership.

     

Periodic strategies in optimal execution with multiplicative price impact

We study the optimal execution problem with multiplicative price impact in algorithmic trading, when an agent holds an initial position of shares of a financial asset. The interselling decision times are modeled by the arrival times of a Poisson process. The criterion to be optimized consists in maximizing the expected net present value of the gains of the agent, and it is proved that an optimal strategy has a barrier form, depending only on the number of shares left and the level of the asset price.     

Rural credit and the time allocation of agricultural households: The case of PRONAF in Brazil

This paper evaluates the impact of Brazil's National Program to Strengthen Family Farming (PRONAF) on the time allocation of household members. We use data from the 2014 Pesquisa Nacional por Amostra de Domicílios, and we apply propensity score methods to complex surveys recently recommended in the literature. We find that PRONAF helps to increase focus on agricultural activities, but it also stimulates female partners to engage in unpaid work. The results show significant effects of PRONAF on child labor and on the gender‐specific division of labor within households, although it does not have the usual adverse effects of rural credit programs on school attendance.     

The Role of Green Collaborative Strategies in Improving Environmental Sustainability in Supply Chains: Insights from a Case Study

This article aims to quantify to what extent collaborative strategies are more effective than internal or organization‐level actions to green supply chains. In this regard, the impact of decisions made at different stages of a supply chain in a product's carbon footprint is quantified. Organizational and product carbon footprints are calculated using the Compound Method Based on Financial Accounts (MC3). The results underline that concentrating reduction efforts in some stages of the supply chain is more effective than implementing individual actions by the participants. Collaboration among the participants is needed to decide what practices are implemented, at what stage they are needed and how they are to be implemented. This article adds to the literature on supply chains and sustainability. Previous research suggests that collaborative strategies have great potential for reducing the carbon footprint of products, while indicating the need for empirical research to support this statement. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Supply chain risk analysis: a shipbuilding industry case

A lack of empirical studies on Supply Chain Risk Management (SCRM) is observed, especially in the industries of large projects. Therefore, this paper conducts a risk analysis on the Brazilian Shipbuilding Industry by generating an initial risk profile. A panel was conducted with executives from major shipyards, and the primary risks were identified, assessed, and evaluated. Findings corroborate the academic literature, reinforcing that companies recognise the importance of SCRM, but the concept is incipient and far from being successfully implemented in real life. Despite the fact that the shipyards identified important risks, the focus was on internal factors. Because the industry was exposed to risks from the external environment, no risk mitigation actions existed, resulting in the bankruptcy of many shipbuilders. This research is an initial step toward investigating SCRM techniques, offering academics a novel empirical approach that can serve as a systematic risk management tool for supply chain planning.     

Effect of exploitation and exploration on the innovative as outcomes in entrepreneurial firms

The main aim of this study is to establish the effect of the Exploitation and Exploration; and the influence of these learning flows on the Innovative Outcome (IO). The Innovative Outcome refers to new products, services, processes (or improvements) that the organization has obtained as a result of an innovative process. For this purpose, a relationship model is defined, which is empirically contrasted, and can explains and predicts the cyclical dynamization of learning flows on innovative outcome in knowledge intensive firms. The quantitative test for this model use the data from entrepreneurial firms biotechnology sector. The statistical analysis applies a method based on variance using Partial Least Squares (PLS). Research results confirm the hypotheses, that is, they show a positive dynamic effect between the Exploration and the Innovative as outcomes. In the same vein, they results confirm the presence of the cyclic movement of innovative outcome with the Exploitation.     

The equity impacts of bus rapid transit: A review of the evidence and implications for sustainable transport

The paper offers an analysis of empirical evidence on the equity impacts of operational Bus Rapid Transit (BRT) systems in the Global South. The focus is on vertical equity, i.e. whether BRT systems achieve progressive benefits for poorer segments of the population. Findings from Africa, Asia, and Latin America all suggest that BRT does offer significant benefits to low-income groups, in terms of travel time and cost savings, access enhancement, and safety and health benefits. However benefits are often skewed toward medium-income users and thus less progressive than they might be. Two primary reasons for this are insufficient spatial coverage and inappropriate fare policies. While many features of BRT potentially allow it to deliver pro-poor outcomes, such outcomes only materialize if BRT implementers pay specific and sustained attention to equity. The paper identifies key issues that need to be addressed to steer BRT implementation toward more socially sustainable outcomes—including better integration with other transit, paratransit, and nonmotorized transport services, and with the housing sector.     

When do managers listen to the market? Impact of learning in acquisitions of private firms

We study the influence of market signals and agency problems on the decision to cancel an announced acquisition. We find major differences between deals involving private vs. public targets. First, controlling for the value of expected synergies, acquisitions are less likely to be cancelled when the target is private rather than public. This finding supports learning rather than the alternative common-information hypothesis. Second, better manager-shareholder interest alignment makes the cancellation of a “bad” deal more likely only when the target is a private firm. This suggests bidder agency problems have a greater influence on acquisition outcome (i.e., learning) when the target is private. Third, cancellation is more likely for private targets when their post-announcement abnormal returns are low, especially if the method of payment includes stock. This indicates that it is important to control for bidder overvaluation when testing the managerial learning hypothesis. Overall, both the learning and agency hypotheses help explain observed differences in deal completion by target type.     

Tourism and regional development: a spatial econometric model for Portugal at municipal level

Portuguese Economic Journal - This study examines the importance of tourism as a factor for regional economic development in Mainland Portugal, emphasizing the inter-regional spatial spillover...