Glass ceilings or glass doors? The role of firms in male‐female wage disparities

I use Canadian linked employer‐employee data to examine whether women face a glass ceiling in the labour market. I also measure the extent to which the glass ceiling comes about because women are segregated into lower‐paying firms, or because they are segregated into lower‐paying jobs within firms. I find clear evidence that women experience a glass ceiling that is driven by their disproportionate sorting across firm types (glass doors) rather than within firms. I find no evidence that these results are supply‐driven. However, my results are consistent with predictions of an efficiency wage model where high‐paying firms discriminate against females.     

Evidence on the importance of cognitive ability tests for NFL quarterbacks: what are the relationships among Wonderlic scores,draft positions and NFL performance outcomes?

Employing data on National Football League (NFL) quarterbacks drafted between 2002 and 2012, the authors consider whether factors correlated with a quarterback being more productive in the NFL are the same factors that correlate with an improved draft position. In particular, the authors consider the relevance of scores on the Wonderlic test. Contrary to all prior literature on the subject, the authors find that performance on the Wonderlic test is positively correlated with NFL performance. However, the authors find no clear evidence that Wonderlic scores are correlated with draft position. Beyond this primary finding, the authors reveal many other interesting results that should help researchers better understand a quarterback’s progression from college to the NFL.     

TRADE LIBERALIZATION AND FIRM PERFORMANCE: THE CASE OF THAILAND

After the Asian Financial Crisis, Thailand's trade policy has been driven by the proliferation of free trade agreements (FTAs). We use firm‐level data to estimate the effects of reductions in tariffs applied to Thai imports on Thai firms. Reductions in Association of Southeast Asian Nations (ASEAN) tariffs were associated with increasing firm employment and exports, lower ASEAN‐China import tariffs were associated with increasing firm employment, while lower tariffs from the Japan‐Thailand FTA were associated with reductions in firm employment and increasing likelihood of International Organization for Standardization (ISO) certifications. FTAs were associated with a decrease in firm R&D spending. (JEL F1, F2, F6)     

Going Multinational: What are the Effects on Home‐Market Performance?

Abstract. This paper compares the home‐market performance of German multinational enterprises (MNEs) and national firms, both before and after switching from national to multinational activities. Regarding the former case, our results show that future multinationals outperform domestic firms. When assessing the ex post performance of multinationals, selectivity issues must be taken into account. Applying an endogenous treatment model, it turns out that after switching, both productivity and wage growth are higher at newly founded MNEs. While capital intensities increase compared with those of national firms, employment growth rates are negatively related to switching, suggesting that home and foreign employment are substitutes.     

Ownership Structure and Firm Performance: Evidence from Vietnamese Listed Firms

We examine the effect of ownership structure on firm performance, for firms listed on Vietnamese stock exchanges, using 2744 firm‐year observations over the period from 2007 to 2012. We find a non‐linear relationship between ownership structure and firm performance. State ownership has a convex relationship with firm performance. This paper finds that firm performance increases beyond 28.67 percent level of state ownership. Foreign ownership has a concave relationship with firm performance. We find that firm performance increases with an increase of foreign ownership up to a level of 43 percent and then decreases. Policy makers should encourage foreign ownership and widely dispersed state ownership in firms, which can help improve firm performance.     

The returns to exporting: evidence from UK firms

Abstract The question of learning versus self‐selection has dominated the micro‐econometric literature on firm export decisions without leading to any firm conclusions. In part this reflects the limited information content of the data typically used. In this paper we use survey data on UK firms to offer some new insights into this debate. We find that the majority of firms report benefits to exporting across a wide range of performance measures, including size, profitability, and the introduction of new products. These effects do not decline as the number of years of exporting rises if the export intensity of the firm rises.     

DECISION TO INVEST ABROAD: THE CASE OF SOUTH KOREAN MULTINATIONALS

Recent firm‐based empirical studies examine whether firms serving foreign markets either through exports or foreign direct investment (FDI) are more efficient than their domestically‐oriented counterparts. The purpose of the present paper is to study the link between performance of multinational firms and the choice to participate in foreign investment. In so doing, this paper explicitly differentiates exports and FDI decisions. Using firm‐level data for large South Korean manufacturing firms, I provide evidence that the premium for FDI is huge compared to exports, and that good firms undertake FDI. Studying performance across firms, I find that firms that engage in FDI outperform other firms in the future in all possible dimensions; they are larger, pay higher wages, and are also more productive. These results are consistent with the hypothesis that good firms self‐select to engage in FDI. I also find clear evidence that past FDI experience has a strong positive effect on the probability of current investment abroad. This implies that the sunk cost involved in FDI plays a role in current decisions to undertake FDI.     

Do data policy restrictions impact the productivity performance of firms and industries?

This paper examines how policies regulating the cross‐border movement and domestic use of electronic data on the internet impact the productivity of firms in sectors relying on electronic data. In doing so, we collect regulatory information on a group of developed economies and create an index that measures the regulatory restrictiveness of each country's data policies. The index is based on observable policy measures that explicitly inhibit the cross‐border movement and domestic use of data. Using cross‐country firm‐level and industry‐level data, we analyse econometrically the extent to which these data regulations over time impact the productivity performance of downstream firms and industries, respectively. We show that stricter data policies have a negative and significant impact on the performance of downstream firms in sectors reliant on electronic data. This adverse effect is stronger for countries with strong technology networks, for servicified firms, and holds for several robustness checks.     

Stock market-driven investment: new evidence on information,financing and agency effects

This study provides a theoretical model and empirical analysis to jointly examine the information, financing and agency effects, the three channels through which the stock market can actively influence corporate investment decisions and firm performance. First, stock market affects corporate investments, and such impact varies with different market valuation measures, types of investments and firm characteristics. Second, stock market valuation affects investments through the channel of corporate financing, supporting the financing hypothesis. Third, stock market-driven investments have differential impacts on the future operating performance of firms. Investments driven by market valuation of firm-specific information have a positive effect on future performance. In contrast, investments driven by market-wide sentiment have a negative effect on future performance. Fourth, consistent with the information hypothesis, market-driven investments are value-enhancing for firms with better external monitoring by analysts and institutional investors. Lastly, consistent with the agency hypothesis, market-driven investments are value-destroying when firms lack external monitoring, proper managerial incentives and independent board of directors.     

PARTICIPATION OF FIRMS IN VOLUNTARY ENVIRONMENTAL PROTECTION PROGRAMS: AN ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY AND CAPITAL MARKET PERFORMANCE

The Environmental Protection Agency (EPA) employs voluntary programs as a policy instrument to encourage firms to go beyond mere compliance with laws and regulations in protecting the environment. Based on event study methodology, this paper tests for abnormal stock market returns from membership in the National Environmental Performance Track (NEPT) program. The analysis shows that there is strong evidence that acceptance of a facility to the NEPT adds significantly to the market capitalization of the accepted firms. Corporate social responsibility can be financially rewarding for firms and voluntary programs of the EPA can be an effective complement to performance‐based regulatory instruments. (JEL G14, Q58)     

SHORT‐RUN AND LONG‐RUN IMPLICATIONS OF ENVIRONMENTAL REGULATION ON FINANCIAL PERFORMANCE

Opposing theoretical arguments exist regarding the effect of environmental regulation on financial performance. Some studies argue that environmental regulation constrains firms' abilities to exploit revenue‐enhancing or cost‐reducing opportunities. Other studies, representing the Porter hypothesis, argue that environmental regulation motivates firms to innovate, which ultimately improves financial performance. Although much of the debate focuses on long‐run effects, there are also important short‐run effects. This study provides empirical evidence regarding the short‐run and long‐run effects of Clean Water Act regulation on financial performance. To generate this evidence, we examine the effect of permitted wastewater discharge limits, on the return on sales, using panel data on publicly owned firms in the chemical manufacturing industries. We find that Clean Water Act regulation improves financial performance in both the short run and the long run with a stronger effect in the long run. These results suggest that some net benefits may be realized during a short‐run transition to comply with a tighter permitted discharge limit, with additional benefits accruing to the firm in the long run because the firm has more time to innovate. (JEL K23, L25, L51, L65, Q52)     

TECHNICAL EFFICIENCY IN THE INDIAN TEXTILES INDUSTRY: A NON‐PARAMETRIC ANALYSIS OF FIRM‐LEVEL DATA

The Indian textiles industry is now at the crossroads with the phasing out of the quota regime that prevailed under the Multi‐Fiber Agreement until the end of 2004. In the face of a full integration of the textiles sector in the WTO, maintaining and enhancing productive efficiency is a precondition for competitiveness of the Indian firms in the new liberalized world market. In this paper, we use data obtained from the Annual Survey of Industries for a number of years to measure the levels of technical efficiency in the Indian textiles industry at the firm level. We use both a grand frontier applicable to all firms and a group frontier specific to firms from any individual state, ownership or organization type in order to evaluate their efficiencies. This permits us to separately identify how locational, proprietary and organizational characteristics of a firm affect its performance.     

Size and Determinants of Capital Structure in the Greek Manufacturing Sector

Increasing competition in the European Union (EU) and world markets affects the Greek manufacturing sector. Capital structure is essential for the survival, growth and performance of a firm. There has been a growing interest worldwide in identifying the factors associated with debt leverage. However, nothing has been done so far in contrasting small and medium sized enterprises (SMEs) and large sized enterprises (LSEs) on these aspects. SMEs are very important in the Greek manufacturing sector for employment and growth. Empirical studies show that capital structure and the factors affecting it vary with firm size. In this paper we investigate the determinants of capital structure of Greek manufacturing firms and formulate some policy implications that may improve the financial performance of the sector. Our study utilizes panel data of two random samples, one for SMEs and another for LSEs. The findings show that profitability is a major determinant of capital structure for both size groups. However, efficient assets management and assets growth are found essential for the debt structure of LSEs as opposed to efficiency of current assets, size, sales growth and high fixed assets, which were found to affect substantially the credibility of SMEs. In an era of increasing globalization, the findings imply that Greek SMEs should focus their efforts on (a) increasing their cash flow capacity through better assets management and achievement of higher exports and (b) ensuring good bank relations, but at the same time, turn to alternative forms of financing. Greek LSEs should adopt strategies that will lead to the improvement of their competitiveness and securing new forms of financing. Government policy measures aiming at structural changes and economic efficiency should be designed clearly depending upon its targets: SMEs need policies that will encourage information exchange and co‐operation in local and foreign markets and use of e‐business, as well as, financial assistance. On the other hand, LSEs should be supported by policies aimed at new high‐technology investments, entrance of new firms and foreign investments in the country, tax alleviation and increase of R&D and training expenditures. The upgrading and transparency of the capital market in Greece is expected to improve the capital structure of Greek manufacturing firms.     

Foreign-owned versus Domestically-owned Firms: Economic Performance in Japan

This paper utilizes micro‐panel data for firms located in Japan and examines differences in corporate performance between foreign‐owned and domestically‐owned firms in the 1990s. We find that foreign‐owned firms not only reflect superior static characteristics, but also achieve faster growth. Moreover, foreign investors appear to invest in firms that may not be immediately profitable, but those that are potentially the most profitable in the future. There is also no evidence that foreign investor is “foot‐loose.” These imply that foreign investors bring useful firm‐specific assets into the Japanese market, which may work as an effective catalyst for necessary structural reform.     

EFFECTS OF STRENGTHENING INTELLECTUAL PROPERTY RIGHTS IN NEWLY INDUSTRIALIZED ECONOMIES: EVIDENCE FROM TAIWAN'S 1994 PATENT REFORM

Does strengthening intellectual property rights (IPR) in terms of a longer patent life induce more patents? This article investigates the responses of high‐technology firms to Taiwan’s 1994 patent reform. Empirical analyses reveal that firms’ patenting propensity rose gradually before patent reform and showed an increase after patent reform, tending to support the viewpoint that stronger IPR can induce more patents. However, this cannot lead to lasting effect. Furthermore, patenting capability can serve as the access ticket for potential entrants to a science park under the circumstance of stronger IPR protections. These new entrants are found to have a better post‐entry performance in patenting relative to the incumbents in the short run. (JEL O14, O31)     

TOWARDS REASONABLE PATIENT CARE UNDER UNCERTAINTY

This keynote address provides a foundation that incorporates decision‐theory methods for integrating uncertainty into the decision‐making process for patient care in the health care system. The article provides linkages between the medical economics literature, health care analysis, and quantitative methods to help improve the outcomes for patients in the health care system. (JEL I18, I14, I10)     

The relationship among enterprise clustering,prices, and productivity in Ethiopia’s manufacturing sector

We use census panel data on Ethiopian manufacturing firms to analyze how enterprise clustering in local markets covaries with firm‐level output prices and physical productivity. We find a negative and statistically significant relationship between the density of firms that produce a given product in a given location and the local price of that product. We also find a positive and statistically significant relationship between the density of firms that produce a given product in a location and the physical productivity of same‐product firms in the location. These results are consistent with the notion that increased clustering of firms generates higher competitive pressure and positive externalities. Across firms that produce different products, we find no statistically significant relationship between enterprise clustering and firm‐level output prices and productivity. We also find no clustering effects across towns. Our results suggest that while clustering can impact firm performance, the advantages are narrow in scope.     

开放式创新、战略柔性与创新绩效

以中国制造业259家企业为数据样本，研究了开放式创新、战略柔性与企业创新绩效之间的关系，研究发现开放式创新战略与企业创新绩效呈显著正相关关系，战略柔性与创新绩效呈显著正相关关系，并且开放式创新战略与战略柔性对创新绩效的影响存在显著正向交互作用。研究结果对企业管理层有一定的借鉴意义，企业应该尽可能实施开放式创新战略，提高资源柔性和协调柔性。     

The effects of Information Technology on absorptive capacity and organisational performance

Information Technology (IT) offers many opportunities for firms to succeed. The aim of this paper is to present a model to reflect how technical IT skills and the use of IT in interdependent tasks may influence the development of organisational absorptive capacity, both potential and realised, which also affects organisational performance. Since knowledge constitutes one of the main resources for organisations to gain competitive advantages and helps firms to improve their organisational performance, absorptive capacity is a key factor in success. This model was tested empirically using a sample of 160 European technological firms. The results of our analysis suggest that the mastery of technical IT skills and the use of IT in interdependent tasks positively affect potential and realised absorptive capacities, which in turn enhances organisational performance. The study concludes by presenting some theoretical and practical implications, limitations, and future research lines.     

我国上市公司可持续发展的计量模型与实证分析

随着我国对稳定发展资本市场的日益重视 ,如何客观评价上市公司自身的竞争优势、长期绩效和成长能力 ,从而科学认识其持续发展的内在规律已成为一个亟待研究和解决的重要问题。为此 ,本文构建出一个新颖的上市公司可持续发展计量模型 ,并首次运用屏面数据计量方法进行实证研究 ,通过使用数理统计工具 ,如Mahalanobis广义距离、计算机集约法和刀切法 ,深入剖析我国上市公司长期绩效的形成机制 ,发现动态累积效益模型能深刻揭示出各类可持续发展指标之间错综复杂的内在关系、真实体现上市公司可持续发展的本质特征并客观评价上市公司的综合素质。