Does school ownership matter? An unbiased efficiency comparison for regions of Spain

The programme for international student assessment (PISA) 2006 Report (OECD, PISA 2006: science competencies for tomorrow’s world, Organisation for Economic Co-operation and Development, Paris in 2007) showed significant differences among Spanish students attending publicly financed schools. Publicly financed schools include entirely public schools and schools that are privately managed but publicly funded. Families with a lower socioeconomic status may self-select into public schools, so a direct efficiency comparison between the two school types could lead to flawed conclusions because of the possible school selection bias. In this paper, we suggest using a propensity score matching approach in order to correctly analyze the impact of school ownership on student performance. After tackling the self-selection problem, we use a stochastic parametric distance function framework to compare student efficiency and productivity in both school types across ten Spanish regions using PISA 2006 data. Furthermore, we propose two original measures to analyze the impact of school ownership on academic performance across regions: the average treatment effect on the treated on the production frontier and the average treatment effect on the treated assuming school inefficiency. We find that, on average, private government-dependent schools are more productive than public schools, although efficiency results across regions are highly divergent.     

Determinants of bank interest margins in Russia: Does bank ownership matter?

This paper analyzes interest margin determinants in the Russian banking sector with a particular emphasis on the bank ownership structure. Using unique bank-level data covering Russia's entire banking sector for the 1999–2007 period, we find that the impact of a number of commonly used determinants such as market structure, credit risk, liquidity risk and size of operations differs across state-controlled, domestic-private and foreign-owned banks. At the same time, the influence of operational costs and risk aversion is homogeneous across ownership groups. The results overall suggest that the form of bank ownership needs to be considered when analyzing interest margin determinants.     

Board gender diversity and environmental,social, and economic value creation: Does family ownership matter?

Prior literature on firm value creation for stakeholders has oversimplified and narrowed the concept of value down to “economic returns.” Although economic returns are fundamental to a firm's core stakeholders (i.e., shareholders), other legitimate stakeholders want “value” beyond economic returns. We define stakeholder value as the financial and nonfinancial returns a firm can offer to its legitimate stakeholders, and empirically investigate whether board gender diversity (BGD) improves our multidimensional measure of value. Using Thomson Reuters' ASSET4 data for U.K.‐listed firms available from Eikon for the period 2007–2017, we report a significant positive relationship between BGD and stakeholder value creation. In particular, BGD increases social and environmental value creation in addition to economic returns. Furthermore, our results suggest that even though gender‐diverse boards are associated with stakeholder value creation in family firms, this is only conspicuous for environmental value creation. The findings suggest that although female directors cater to the interests of broader stakeholder groups, family ownership causes them to mainly focus on environmental stakeholders. The study provides important implications for regulators, stakeholders, and academic scholars.     

Does survey experience affect respondents’ reported level of satisfaction?

Web surveys are becoming an indispensable tool for quantitative researchers, and online survey panels have proliferated in recent years. However, little research has addressed the challenges of using online panels, namely the potential effects of respondents’ survey experience, also known as panel conditioning. This paper is based on a study of Danish parents’ day care arrangements and their associated level of satisfaction. A survey was conducted through an online panel and included measurements of past survey participation. Through tests of independence on key variables and the application of various ordered logit models, we find no significant evidence that survey experience affects respondents’ reported level of satisfaction. These results persist when testing the potential interaction between survey experience and experiences with day care services. Furthermore, we relate our results to the existing literature and discuss the possibility of different effects cancelling each other out. This leads us to recommendations on the use of online panels and suggestions for elaboration in future research.     

Does gender diversity matter for green innovation?

This study empirically investigated the relationship between board gender diversity and firm's green innovation, using panel data of public companies of China's manufacturing. Green product innovation was assessed by “green” patents and green process innovation assessed by environmental management certification. The endogeneity problem that resulted from self‐selection of gender diversity was addressed by means of extended probit regressions with an instrumental variable, and the instrumental variable was elaborately constructed based on changes in directorships. The findings show that occurrence of green innovation at the firm‐level is systematically related to female board representation. Specifically, women can exert a sizable and positive effect on green innovation, once they enjoy at least two seats on the boards; a further increase in representation of women on the boards can increase the likelihood of green product innovation rather than the likelihood of green process innovation. These results were robust to various regression specifications and alternative samples. The study provides empirical evidence that women at the top management can play a positive role in developing firm's active environmental strategies, and the conclusions are of practical implications for improving corporate governance along the environmental dimension.     

Does CEO gender matter for bank risk?

This paper addresses the relation between CEO gender and bank risk. We exploit a unique dataset of 365 Polish cooperative banks, 42% of which are run by female CEOs. We find that banks headed by female CEOs are less risky: they report higher capital adequacy and equity to assets ratios. Credit risk in female-led banks is not different from male-led banks, and therefore higher capital adequacy does not stem from lower asset quality and is likely to be linked to higher risk aversion of female CEOs. Our evidence supports the view that women are more risk averse bank CEOs than men. Our findings suggest that gender quotas in bank boards can contribute to reduce risk-taking behavior.     

Public service motivation- individual performance relationship: Does user orientation matter?

Many studies find positive associations between Public Service Motivation (PSM) and individual performance, but we know little about potential mediators and moderators.In this study, we test the mediating role of User Orientation (UO) - the motivation to benefit individual recipients of public services - and the moderating role of individual and work-related characteristics by collecting data from 618 teachers and 156 school principals working in all grades of state schools in southern Italy. After applying structural equation modeling and group comparisons, results show that individuals with a strong orientation to do good for others and for society (PSM) are also better oriented towards helping specific public service users, the students in our case. In turn, the desire to benefit students and satisfy their needs leads individuals to enhance their self-reported performance at work. Eventually, the implications of our findings and possible areas of future research are discussed.     

Does bank capitalization matter for bank stock returns?

We examine US bank capitalization and its association with bank stock returns, and find that the book- and market-based capital ratios show different patterns. Fama-MacBeth regressions and portfolio analyses suggest that banks’ market-based capital ratios are negatively associated with banks’ stock returns during the (tranquil) 1994–2007 period while book-based capital ratios are positively associated with banks’ stock returns during the (turbulent) 2008–2014 period. These results suggest that the effect of bank capitalization on bank stock returns depends on the capital measure used and the period considered.     

Does participatory budgeting improve decentralized public service delivery? Experimental evidence from rural Russia

We present findings of the first experimental evaluation of the participatory budgeting (PB) model carried out in rural Russia within the context of a major decentralization reform. The reform aimed (among other things) to increase citizens’ participation in budgetary decision making and to strengthen public oversight over budget implementation in rural settlements. The experiment provided randomly allocated training and technical assistance to the settlement population and local authorities helping to introduce PB practices into the budgetary cycle. We document that training alone was not successful to ensure an effective implementation of PB. By contrast, training coupled with on-the-ground technical assistance generated full implementation of the PB cycle. Overall, we find that the implementation of PB increased citizen’s engagement in public decision making and raised local tax revenue collection. However, we find larger effects when the PB model was implemented in settlements with more years of prior experience with political and administrative decentralization. Among these settlements, we find that PB not only increased citizen’s participation and tax revenue collection, but also that preferences for public services between authorities and citizens were better aligned, local administrations allocated larger fractions of public budgets to services identified as top priorities by citizens, and citizens were more satisfied with public services. Our findings highlight: (1) the importance of context specific on-the-ground technical assistance to ensure effective implementation of participatory models; and (2) the relevance of taking the historical and institutional context into account when planning and sequencing meaningful participatory decentralization reforms.     

Time-frequency co-movements between bank credit supply and economic growth in an emerging market: Does the bank ownership structure matter?

This study aims to shed some light on the causal link between bank credit supply and economic growth in Turkey for the banks with the different ownership structures between 1993Q4 and 2017Q3. Wavelet coherence test is used to obtain this objective and to answer the following questions: (i) does bank credit supply lead to economic growth in Turkey and vice versa, and (ii) does the bank ownership matters in this linkage? The findings from wavelet coherence reveal that between 1993 and 2003 in the short and medium term, economic growth leads credit supply but in the long run there is feedback causality between credit supply and economic growth for only public and private banks. However, in the long-run between 1993 and 2003 economic growth leads credit supply in the foreign banks in Turkey. Between 2004 and 2017, there is feedback causality between credit supply and economic growth. Moreover, our findings suggest that bank ownership affects the strength of the linkage between credit supply and economic growth in Turkey especially in the short and medium terms. More specially, within the three types of bank ownership, the findings imply that the strongest correlation among the variables is for the private banks while the weakest one is for foreign banks.     

Does environmental law enforcement matter for financial reporting quality?

The Chinese government’s recent Environmental Inspection Program (EIP) eliminates a layer of regulatory actions and holds local government officials accountable for enforcement of environmental laws. We examine two aspects of the impact of the EIP on financial reporting quality. First, we derive a simple analytical model to show that the level of earnings management (EM) depends on the cost and probability of EM detection. This increase in environmental law enforcement (due to the EIP) raises the cost of environmental violation to a firm and managers. To respond to the increased costs, a firm engages in less EM. Second, consistent with the model prediction, we find firms subject to the EIP engage in less EM than otherwise equivalent firms located in non-EIP jurisdictions. The effect of the EIP on EM is more pronounced for firms with adverse agency problems and poor internal controls. Additional analysis suggests that air quality level is a moderating factor for the impact of the EIP on EM. Collectively, using the natural experiment of the EIP, we find a new determinant of EM. Environmental law enforcement deters EM and enhances financial reporting quality.     

What is the value of an IT e-procurement system?

E-procurement is gaining in popularity in business practice and its benefits encourage its adoption for a variety of areas, including IT (Information Technology) purchases. The problem with assessing the value associated with e-procurement has been addressed by researchers and practitioners, but a clear methodology to determine the benefits related to e-procurement adoption is still missing, especially for IT. This paper defines e-procurement and identifies the six most significant drivers for e-procurement adoption, which are the pillars of the proposed value assessment methodology. The authors have also applied the developed methodology to real cases in order to verify its validity and robustness. Finally, although the developed model takes into account the peculiarities of IT purchases, it also raises more research opportunities for other purchasing categories.     

Does studying the past help us understand the future? an examination of the expectations of Gen X knowledge workers

Abstract

Three demographic realities (large baby boom cohort, increasing longevity, declining birthrates) are driving unprecedented global shifts in population age distribution and require organizations wishing to attract, retain and engage mid-career, potentially disenfranchised talent in the 35 to 45-year-old age bracket (i.e. ‘Gen X’) to rethink management practices. This situation motivated the present research – a multi-method case study of Gen X knowledge workers that theoretically develops and uses objectivist grounded theory data analysis methodology to empirically test a typology describing possible subgroups within this cohort of employees who differ in terms of their formative experiences in the labor market. Analysis of data identified four subgroups within our sample of Gen X knowledge workers which share various similarities but also differ dramatically concerning what they expect from and how they view their current employer. Findings support the idea that different formative labor market experiences can result in generational sub-cohorts who want different things from employers and perceive the world differently. These findings can be used by researchers to launch further study of other potential subgroups in Gen X and other generational cohorts, and to organizations and practitioners in developing more effective recruitment and retention strategies for Gen X knowledge workers.     

Does the establishment of the Ministry of Environmental Protection matter for addressing China’s pollution problems? Empirical evidence from listed companies

This paper uses an event study methodology to examine the stock price reactions of polluting companies traded on stock exchanges in mainland China to an exogenous environmental event, i.e., the establishment of the Ministry of Environmental Protection in 2008, which demonstrates the Chinese government’s ambition to enforce environmental protection rules more strictly. We find that, on average, these listed companies experienced a statistically and economically significant abnormal return (AR) of ??3.6% on the event date, indicating an anticipation that these companies would face a harsher regulatory environment as a result of the administrative reform. The market apparently placed great expectations on the administrative reform in regard to addressing China’s environmental pollution problems. In addition, we find that compared to their counterparts in the private sector, state-owned enterprises (SOEs) experienced a smaller price decline during the event window, which suggests that SOEs are more likely to enjoy favourable treatment from regulatory agencies. Our empirical evidence, therefore, shows that the selective enforcement of environmental law is a significant concern that tends to undermine the effects of such reforms.     

Testing inter-group ranking heterogeneity: do patient characteristics matter for prioritization of quality improvements in healthcare service?

In many research contexts, such as social science, marketing, education, psychology and medicine, it is frequently of interest to compare two or more groups of subjects (e.g. people of different gender, age or nationality), who are asked to rank a set of alternatives according to their personal liking or opinion, for investigating the presence of group effect. The common investigation aim is to detect customers with homogeneous preferences (or priorities) in order to serve each group as properly as possible. Several approaches have been proposed in the literature for testing ranking heterogeneity among groups of subjects. This paper focuses on an approach considering diversity as a generalization of the notion of variation and investigates the performance of a testing procedure for ranking heterogeneity based on the index of segregation power. The performance of the testing procedure has been investigated via a Monte Carlo simulation study under several scenarios, differing for group size, number of ranked alternatives and system of hypothesis. Furthermore, using a real data set, the testing procedure is exploited for investigating whether patient age and gender matter for patient prioritization of quality improvement in healthcare service.     

Self-employment and business cycle persistence: Does the composition of employment matter for economic recoveries?

Self-employment comprises an important share of employment in many countries, and tends to expand during downturns through higher inflows from unemployment. Furthermore, countries with higher self-employment shares exhibit lower cyclical output persistence. I build a business cycle model with frictional labor markets where individuals can be self-employed or salaried employed. I show that economies with larger self-employment shares exhibit faster economic recoveries. Differences in the ease of entry into self-employment as the economy recovers explain the contrasting cyclical dynamics. The model successfully captures the cyclical patterns of self-employment and the relationship between self-employment and output persistence in the data.     

Does it matter where to conduct training? Accounting for cultural factors

Training is an important function of human resource management. However, prior research about the relation between culture and training mostly focuses on a particular region, uses a few single case studies or examines only one or a few dimensions of culture at a time. We believe a more holistic and systematic approach is warranted. To address this need, we provide a theoretical framework which proposes that cultural factors affect training effectiveness via (1) contents and methods, (2) selection of trainers, and (3) learners' motivation, valence and learning style. In the context of cross-cultural training, we also reason that the congruence between parent and host culture influences training process and effectiveness. Implications for practice and future research are discussed.     

Revisiting the roles of gold: Does gold ETF matter?

This study investigates whether the role of gold changes due to the introduction of gold exchange-traded funds (ETFs) using sample data of seven countries in which physically-backed gold ETFs have been issued. The results show that the traditional roles of gold do change after the introduction of gold ETFs, particularly in the corresponding stock markets. The functions of hedge and safe haven provided by gold wear off during the post-ETF period in stock markets. In currency markets, however, gold still serves as a hedge and safe haven asset, and such effects become stronger during the post-ETF period. Moreover, gold ETFs play a role of relative strong safe haven than the physical gold does while the leading (lagged) stock returns extremely decline. Like the purposes of using physical gold assets, gold ETFs also provide hedge and safe haven effects to the exchange rate risks. Therefore, we might confirm that physical gold could be largely replaced by gold ETFs and investors could utilize gold ETFs to avoid potential risks in financial markets.     

Does citizenship matter? The economic impact of naturalizations in Germany

This paper analyses whether citizenship acquisition affects the labour market performance of immigrants in Germany. The study uses actual micro data from the employment sample of the Institute for Employment Research, which covers more than 80% of the entire labour force in Germany. The econometric analysis has been carried out using panel data techniques, which allow to disentangle the effects of self-selection and legal impact of citizenship acquisition. Estimates from a pooled OLS specification suggest the existence of a wage premium for naturalized immigrants of both genders. Fixed effects estimates for males show an increased wage growth in the years following naturalization, consistent with the argument that naturalization increases the labour market opportunities of immigrants. Results for female employees indicate that the wage premium of naturalized women is solely the result of a positive self-selection process.     

Networking beyond the software code? an explorative examination of the development of an open source car project

At present, several initiatives have emerged that claim to be innovative while acting according to the mechanisms of open source software (OSS), a field frequently deemed to be a role model for open innovation. Against this background, this study focuses on a case study of the development of an automobile. Based on a commons-based peer production-informed perspective, we show that this project displays a variety of characteristics that are usually associated with OSS projects. In particular, parallels can be drawn between the intrinsic and extrinsic motivations, the ability to ‘broadcast’ ideas due to the virtual nature of the tasks, and the self-selection of tasks due to their modular nature. The drawing of such parallels, however, must be done cautiously because diverse factors, such as opportunity costs, regulations, and feasibility studies, limit the applicability of OSS principles to this non-software related network of dispersed voluntary contributors within a commons-based peer production framework. Herein, we attempt to clarify how OSS projects can and cannot work as role models for open innovation in the automotive as well as other product-oriented industries.