Managerial Incentives and Investment Policy in Family Firms: Evidence from a Structural Analysis

This paper provides evidence that CEO incentive pay mediates the effect of family preferences on corporate investment policy. Our study focuses on the option portfolio volatility sensitivity vega, which motivates the risk‐taking behavior of undiversified managers. After controlling for factors that affect incentive pay and investment policy simultaneously, we find that one‐third of underinvestment in riskier R&D projects in active family firms can be attributed to a significantly lower vega. Passive family firms allocate more capital to R&D as opposed to active family firms, and are more active in M&A deal making. In contrast to many prior studies, pay incentives and families are not associated with capital expenditures. Overall, our empirical results suggest that CEO pay incentives induce investment policy contingent on firm risk. Family CEO incentive pay manifests the family preference for lower risk, especially in firms with higher firm risk. Nonetheless, after replacing family CEOs with outside professionals, investments in both R&D and M&A increase, which is consistent with the family preference for extended investment horizons. Interestingly, such a preference seems not to be manifested in incentive pay.     

Managerial Incentives and Durable Goods Monopoly

In many cases durable goods monopolists who sell out output do not appear to act in the competitive fashion suggested by Coase (1972). This indicates the firm‘s owners mitigate their commitment problem with buyers in some manner. This paper shows that managerial incentives provide a natural mechanism for the owner to mitigate its commitment problem without explicitly contracting with buyers. Owners will optimally shift their managers from the singular goal of profit maximization by penalizing them for sales. Additionally, the paper demonstrates that the degree to which managerial incentives and compensation diverge from pure profit maximization is in large part a function of the durability or quality of the product.     

Managerial Buyouts, Incentives And Performance

The managerial buyout (MBO) is a means of motivating senior managers and institutional investors to increase their monitoring efforts and so raise the performance of the firm. This paper suggests that the typical MBO contains a mix of incentives which motivate managers by raising the rewards for success and increasing the penalties for failure. At the same time, the relationship between the new company and its institutional backers encourage the latter to monitor the efforts and achievements of the management team. Such a structure appears useful in raising the performance of divested divisions, particularly in mature industries.     

Managerial and Organizational Learning in Chinese Firms

This investigation has thrown light on ways in which international joint ventures (IJVs) are addressing the issues of balance between the need to learn the knowledge and management practices introduced by the other partners and the need for the partners to maintain that level of control which enables them to secure appropriate returns from their equity investment. The results from the investigation of 67 IJVs show equity can be used as an appropriate indicator for examining both the process and the outcome of learning embedded in the organization. They also suggest that the control leveraged from a majority equity share can be used to safeguard knowledge and competencies whilst simultaneously responding to the necessity to incorporate the knowledge and management practices of its partner. Learning achieved in an IJV may not necessarily relate only to the control mechanisms exercised as there are many other variables that may have an impact including attitudes, cultural capital building, or even government policy. This study thus highlights the relationship between the impact derived from the ways of committing the resources onto an IJV and its contribution to the learning achieved in an IJV.     

Managerial Firms,Entry, and Switching Costs

Empirical evidence shows that switching costs are important in many industries. We analyze the welfare effects of entry into markets with switching costs when firms can be run by managers and the entrant may be partially foreign-owned. We find that with profit-maximizing firms, the welfare effect of entry depends crucially on the ownership of the entrant firm. We also show that entry is less likely with managerial firms than it is with profit-maximizing firms. In the latter case, entry always reduces welfare if the share of the entrant firm owned by foreign investors is high. However, with managerial firms, entry always increases welfare.     

Managing Channel Profits: The Role of Managerial Incentives

The existing literature has examined how manufacturers can enhance profits by employing specific channel structures and channel coordination mechanisms. In this paper, we examine the implications of strategically designed managerial incentives for channel performance in a duopoly. We first analyze how equilibrium outcomes (especially manufacturer profits) are altered when the manufacturers provide their channel managers with strategically designed incentives. Following that, we examine how optimal channel structure decisions are altered when manufacturers provide their managers with strategic incentives, i.e., we examine how strategic incentives moderate optimal channel structure decisions. In contrast with the existing literature, we find that an asymmetric channel structure with one manufacturer employing a profit-maximizing retailer and the other integrated manufacturer providing strategic incentives for the channel manager in charge of pricing, is an equilibrium outcome under certain conditions. We then compare how the implications of strategic incentives differ from those of channel structure decisions and channel coordination initiatives, and discuss when and why strategic incentives yield superior outcomes from the manufacturer’s perspective. Our results shed light on the sparsely researched role of managerial incentives in the channel context.     

Managerial Tenure and Recovery Following M-Form Reorganization in Diversified Firms

We identify two factors that affect how quickly highly interdependent diversified firms recover from the performance disruptions that typically accompany M-form reorganizations: (1) organizational tenure and (2) the tenure of top management teams. We find that top management teams with a rare combination of long organizational tenure and relatively short team tenure are associated with faster performance recovery in diversified firms with extensive business unit interdependencies. The effects of managerial tenure on recovery time were found to be inconsequential in unrelated diversified firms where the reorganization task is less complex.     

Heterogeneous Firms,Globalisation and the Distance Puzzle

Despite the strong pace of globalisation, the distance effect on trade is persistent or even growing over time (Disdier and Head, 2008). To solve this distance puzzle, we use the recently developed gravity equation estimator from Helpman et al. (2008) (HMR henceforth). Using three different data sets, we find that the distance coefficient increases over time when ordinary least squares (OLS) is used, while the non‐linear estimation of HMR leads to a decline in the distance coefficient over time. The distance puzzle, thus, arises from a growing bias of OLS estimates. The latter is explained by an increase in the importance of the bias from omitting the number of heterogeneous exporting firms relative to the bias from omitting zero trade flows. Furthermore, we show that including zero trade flows cannot solve the distance puzzle when using HMR. The HMR estimates are strongly correlated with the time pattern in freight costs reported by Hummels (2007).     

异质性企业出口、技术创新与生产率动态效应研究

本文探讨了异质性企业出口、技术创新与生产率的动态关系.在异质性企业垄断竞争模型的分析框架下,我们构建了企业出口、创新与生产率的动态结构模型,并通过参数化函数形式建立了计量模型.基于2005-2007年中国电子通信行业的企业面板数据,本研究采用biprobit、非线性最小二乘估计等模型对企业出口、技术创新与生产率的关系进行实证研究.研究结果表明,企业出口和创新的决策及其联动作用促进企业生产率的提高;企业的生产率、资本存量、劳动力投入和出口市场冲击是影响企业自选择行为的异质性因素;投资决策的回报随着企业生产率的提高而提高,因此生产率高的企业会自选择做出该投资决策以获得更大利润.我们的研究从理论和实证的视角在一个整体性的框架中验证了自选择效应、出口学习效应和生产率动态效应,同时对中国出口、创新和生产率的现状提出相应政策建议.     

中国国企高管人员的薪酬与激励:总结与思考

从制度成本的角度出发,关注中国国企高管人员薪酬制度的效率问题,并认为好的薪酬制度有助于实现国有企业剩余索取权的顺利复归。在这个基础上,着重探讨高管人员薪酬决定因素、过度投资与在职消费、年薪制及股权激励等重要题域,并对新的激励制度保持审慎乐观的态度。     

Taxation of Foreign Profits with Heterogeneous Multinational Firms

This paper analyses optimal taxation of foreign profits using a model with heterogeneous multinational firms that serve a foreign market through exports or foreign direct investment (FDI). If a firm switches from exporting to FDI, domestic activity and tax payments may decrease, stay constant or even rise because of intra‐firm trade. It turns out that, in contrast to recent claims, in all three cases, the optimal tax system implies full taxation after deduction of foreign tax payments. If the country accounts for the effects of its policy on the foreign price level, the case for taxing foreign income becomes even stronger. However, the globally optimal tax system may require exemption of foreign income from tax.     

Institutional Environment, Managerial Attitudes and Environmental Sustainability Orientation of Small Firms

This study examines the direct impact of three dimensions of the institutional environment on managerial attitudes toward the natural environment and the direct influence of the latter on the environmental sustainability orientation (ESO) of small firms. We contend that when the institutional environment is perceived by owner?Cmanagers as supportive of sound natural environment management practices, they are more likely to develop a positive attitude toward natural environment issues and concerns. Such owner?Cmanager attitudes are likely to lead to a positive and proactive orientation of their firms toward environmental sustainability. The study uses survey data from 166 small manufacturing firms located in three Philippine cities. First, the study develops and tests the measurement models to examine the validity of the constructs representing the firm??s institutional environment, managerial attitudes toward the natural environment and the ESO of firms. Second, the study develops and tests the structural models examining the institutional environment?Cmanagerial attitudes?CESO linkages. Multi-sample invariance structural model analysis shows the mediating role of managerial attitudes in the institutional environment?CESO nexus. The findings show that ESO is a construct comprising three dimensions: knowledge of environmental issues, sustainable practices and commitment toward environmental sustainability. The cognitive, regulatory and normative elements of the institutional environment are strongly linked to positive managerial attitudes toward environmental sustainability, which in turn, positively influences the firm??s overall ESO. Managerial attitudes play a mediating role in the institutional environment?CESO linkages. The managerial, practical, research and policy implications of the research findings are discussed.     

贸易成本、异质性企业与扩大内需:理论框架与中国经验

扩大内需是现阶段稳定我国经济增长的关键因素之一。在现有异质性企业模型的基础上,本文通过建立一个异质性企业选择模型阐述了贸易成本对内部需求的影响机制。该模型表明贸易成本是影响企业国内外市场选择行为的关键因素,政府可以通过调节企业的相对贸易成本来实现扩大内部需求的目标。同时利用我国工业企业层面的数据,对模型进行了实证检验,检验结果符合理论模型的基本预测。     

产品市场竞争度与公司治理效应的实证分析:基于经理人激励视角

近年来,产品市场竞争作为公司治理的一种外部机制正受到重视。本文取2006年中国上市公司数据,以产品市场竞争为出发点,将公司治理绩效、经理人薪酬、经理人市场竞争度与企业研发联系起来进行实证分析。研究结果表明,这四项与HHI都呈正向相关关系,说明提高产品市场竞争度不仅有利于改善公司治理绩效,而且能够通过较高的薪酬选拔合乎企业的优秀人才。实证分析显示,研发与HHI间的关系最为显著,但其受控制权性质、资产与债务规模的控制较为明显。     

筛选效应、异质企业内生集聚与城市生产率

本文通过一个改进的新新经济地理异质企业模型考察城市与企业之间的双向选择机制.理论分析表明,高效企业能制定较低的价格、占有较大的市场,因此倾向进入大城市,而低效企业倾向选择较小的城市;城市越大,对企业的门槛效率要求越高.大城市的企业效率分布曲线相比小城市有较高的左侧截尾,而小城市相对于大城市存在右侧截尾.本文利用中国工业企业微观数据检验企业固定效率在城市间的分布特征,估计显示城市效率门槛随城市规模增长而增长,筛选效应至少相当于传统集聚经济的1/5～2/5,但集聚经济和筛选效应对不同行业的企业影响有所差异.分析还表明,降低区间交易成本有助于城市间效率分布的趋同,市场一体化将提升中小城市生产率、缩小城市间差距.     

Corporate Taxation of Heterogeneous Firms and the Welfare Effects of Labour Unions

This paper examines the welfare effects of powerful labour unions when the government levies a uniform tax rate – as is currently the case in most OECD countries – and firms are heterogeneous with respect to productivity. I show that an increase in the bargaining power of labour unions can decrease the welfare loss generated by restriction of the tax policy and provide conditions under which powerful labour unions decrease the likelihood that firms will move abroad. I also reproduce the well‐known effect whereby powerful labour unions decrease corporate tax rates if firms are mobile.     

Spillovers from Multinationals to Heterogeneous Domestic Firms: Evidence from Hungary

Firms cluster their economic activities to exploit technological and informational spillovers from other firms. Spillovers from multinational firms can be particularly beneficial to firms in less developed economies, because technological superiority and management expertise of foreign multinational firms yield various opportunities for learning. Yet, the importance of foreign firms’ spillovers might vary with respect to two key features of domestic firms: their productivity level and their export status. In line with theories on the absorptive capacity of firms, we argue on the basis of an empirical analysis of Hungarian firms that larger and more productive firms are more able than smaller firms to reap spillovers from multinationals. However, the export status is found to be of minor importance once higher productivity is controlled for.     

中美贸易摩擦对异质性企业的影响——基于中国A股上市公司的事件研究

随着中国对外贸易的蓬勃发展,双边贸易摩擦事件也日益增多,这种外部贸易摩擦究竟会对中国微观主体产生怎样的影响?基于中美贸易摩擦的背景,以中国A股上市公司为研究样本,采用事件研究法实证检验外部贸易摩擦的微观主体效应。研究结果表明,中美贸易摩擦对生产率、规模、要素密集度、所有权属性不同的企业的影响均存在显著差异,具体而言,中美贸易摩擦对高生产率企业、大规模企业、低劳动密集度企业与民营企业的影响相对更大。进一步研究发现,采用不同企业异质性衡量指标的检验结果最终均可归结于企业全要素生产率,即全要素生产率是企业在中美贸易摩擦中所受影响程度大小的决定因素,而且生产率越高的企业所受影响程度越大。该研究结果有助于理解中美贸易摩擦的微观主体效应,从而为中国更好地解决外部贸易摩擦与促进国内经济转型提供借鉴和参考。     

异质性OFDI企业序贯投资存在区位选择的“路径依赖”吗

本文基于2000-2010年《中国工业企业数据库》与《境外投资企业(机构)名录》的匹配数据,以中国464家进行序贯投资的OFDI企业为研究对象,利用条件Logit模型考察其在区位选择中对以往投资经验的动态依赖情况。结果发现,中国OFDI企业在序贯投资时确实存在对以往经验的路径依赖特征,且依赖程度依次为相同市场投资经验、相似市场投资经验与同行业企业投资经验。但是,根据企业在规模、生产率和所有权属性的异质性进行分组检验后,发现不同类型企业对不同投资经验的依赖情况亦有所差异:大规模和高生产率企业对自身投资经验的路径依赖较强,并倾向于选择相同和相似市场进行序贯投资;国有企业对相似市场与同行业企业投资经验的路径依赖程度明显高于三资企业和私营企业。     

FOB 盛行之谜：贸易成本与异质性企业的 贸易术语选择

在《2010年国际贸易术语解释通则》规定的11种贸易术语中,企业收汇风险较大的FOB具有最高的使用频率。本文通过拓展现有异质性企业贸易模型,阐述了贸易成本对企业贸易术语选择行为的影响机制。该模型表明,二元经济结构、要素市场不完善和加工贸易居多是导致出口企业倾向于使用FOB成交的主要原因,贸易术语多元化能够通过增加企业出口机会改善社会福利水平,及时调整企业内外销的相对贸易成本对降低出口收汇风险和平衡我国内外需求水平至关重要。