Do Elections Matter for Economic Performance?

In mature democracies, elections discipline leaders to deliver good economic performance. Since the fall of the Soviet Union, most developing countries also hold elections, but these are often marred by illicit tactics. Using a new global data set, this article investigates whether these illicit tactics are merely blemishes or substantially undermine the economic efficacy of elections. We show that illicit tactics are widespread, and that they reduce the incentive for governments to deliver good economic performance. Our analysis also suggests that in societies with regular free and fair elections, leaders do not matter for economic growth.     

Do Limits Matter? Evidence on the Effects of Tax Limitations on Student Performance

The goal of this research is to determine if limits on the revenue-raising ability of school districts translate into constraints on the ability of these districts to affect student performance. We use the recent imposition of property tax limitations on school districts in the Chicago metropolitan area to determine if these limits have translated into slower growth in student performance. We find only limited evidence that student performance in districts subject to the tax limitations has fallen relative to student performance in districts not subject to the limitations.     

Does Education Matter for Economic Growth?

Empirical growth regressions typically include mean years of schooling as a proxy for human capital. However, empirical research often finds that the sign and significance of schooling depends on the sample of observations or the specification of the model. We use a non‐parametric local‐linear regression estimator and a non‐parametric variable relevance test to conduct a rigorous and systematic search for significance of mean years of schooling by examining five of the most comprehensive schooling databases. Contrary to a few recent articles that have identified significant nonlinearities between education and growth, our results suggest that mean years of schooling is not a statistically relevant variable in growth regressions. However, we do find evidence (within a cross‐sectional framework), that educational achievement, measured by mean test scores, may provide a more reliable measure of human capital than mean years of schooling.     

Lowering the Marginal Corporate Tax Rate: Why the Debate?

In an effort to attract new investors and retain existing producers, governments use corporate tax rates as a policy tool for industrial recruitment, resulting in inter‐state tax competition. Foreign direct investment (FDI) growth and GDP growth are the two policy outcomes gauged in inter‐state tax competition. The assumption is that lower corporate taxes lead to increases in FDI, which results in capital formation that generates GDP growth. This 60‐nation panel study tests that assumption through examining economic indicators contingent on taxation, such as FDI and mergers and acquisitions among multinational corporations between 1999 and 2009. The results suggest that reduced corporate tax rates can increase FDI but decrease annual GDP growth. The main policy implication is that tax competition may attract investment, but may not promote overall economic growth, offering support for value‐extraction theories.     

Are Corporate Tax Reductions Real Benefits under Imputation Systems?

Imputation systems integrate corporate and shareholder personal income taxes to alleviate double taxation of dividend income. In this study, we empirically examine whether a corporate tax rate reduction under an imputation tax system benefits shareholders. Using Taiwan as a setting, our analyses indicate that decreasing the corporate tax rate is associated with an increase in dividend payout ratio and foreign investment. Moreover, the increase in dividend payout ratio is even greater for firms that have a higher increase in foreign ownership. Additionally, the market reacts positively to an announcement of a tax rate reduction; specifically, positive stock price reactions are stronger for firms that experienced a greater increase in foreign ownership in response to the tax rate reduction, for firms with greater liquidity constraints and more growth opportunities before the tax rate reduction, and for firms with a bigger decrease in effective tax rates after the tax rate reduction. Overall, we provide evidence that a tax rate reduction is associated with economic impacts and that foreign shareholders appear to be the main beneficiaries of a tax rate reduction under an imputation tax system.     

Why Does the Negotiable Certificate of Deposit Matter for Chinese Banking?

The Negotiable Certificate of Deposit (NCD) is a major financial instrument in China; the value of outstanding Chinese NCDs was approximately RMB8 trillion (equivalent to USD1.2 trillion) in mid‐2017. This article reviews the most recent developments in the Chinese NCD, including its effect on interest rate pass‐through and money creation. Empirical results show that the introduction of the NCD in 2014 influenced the relationship between the policy rate and the lending rate of Chinese commercial banks, and the interest rate pass‐through from the policy rate to the lending rate of commercial banks improved subsequently. However, this process has also been accompanied by maturity mismatch, increasing leverage, and decreasing credit ratings for the assets of banks and other financial institutions. Consequently, systemic risk in the Chinese banking system has increased.     

Modelling Corporate Stakeholder Orientation: Does the Relationship Between Stakeholder Background Characteristics and Corporate Social Performance Matter?

Though corporate stakeholder orientation is connected with corporate social performance practices, there is a dearth of knowledge on the theorized assertion that background characteristics influence stakeholders’ salience and attitude towards social performance practices of firms. The aim of this paper is to measure and examine this hypothesis. To test this claim, this research uses the Surat Resource Region in Queensland, Australia, as the case study. Based on the bivariate test, age, gender, occupation type and educational status have varying statistically significant effects on stakeholders’ attitude towards corporate social practices. The multinomial logistic findings showed that only education retained a net effect on a stakeholder's attitude to participation in corporate social practices, where those with a higher level of education are 1.388 times more likely to perceive stakeholder engagement practices as relevant, 2.864 times more likely for social impact assessment practices and 1.430 times more likely for practices aimed at rights of indigenous communities. Findings imply the need for awareness programs to be incorporated into corporate social practices, which can help promote the success of stakeholder‐oriented policies. The paper further makes suggestions that have both business strategy and policy planning implications. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

Do Politics or Mayors' Demographics Matter for Municipal Revenue Expansion?

Abstract

This study examines whether political factors and mayors' demographics influence municipal success in expanding revenue. Data from forty Colombian municipalities over a 7-year period (1999–2005) are used to explore the relationship between mayoral demographics (age, sectorial experience and education level and type) and revenue expansion through state and national grants. Results reveal that the factors affecting approval of state grants differ from those influencing approval of national grants. When a mayor's political party is aligned with that of the governor, municipalities tend to secure more state, but not national, grants. Municipal features, such as population, local revenues and divided government, positively influence national, but not state grants. Not surprisingly, the stressful municipal context (presence of illegally armed guerrillas) negatively moderates the impact of mayors' demographics on approval of grants. If obtaining greater revenues implies greater social investment, this study suggests the importance of candidates' backgrounds when electing mayors, at least in the Colombian context.     

Do Women Leaders Promote Sustainability? Analyzing the Effect of Corporate Governance Composition on Environmental Performance

In this study, we investigate the impact women leaders have on the corporate environmental strategies of organizations. Using a dataset of all Fortune 500 CEOs and boards of directors for a ten‐year period, we examine several aspects of gender in leadership on environmental strategy. Specifically, we test the impact of women CEOs, the proportion of women on the BOD, the number of interlinks women board members hold, and the interactive and cumulative effects of women CEOs and gender diverse boards. Findings suggest that firms characterized by gender diverse leadership teams are more effective than other firms at pursuing environmentally friendly strategies. This study contributes to research on corporate governance and environmental performance by showing how the gender composition of leaders affects corporate practice. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

What Is the Economic Meaning of FDH?

The central feature of the FDH model is the lack of convexity for its production possibility set, TF. Starting with n observed (distinct) decision making units DMU_k , each defined by an input-output vector p _k = [y _k -x _k], domination is defined by ordinary vector inequalities. DMU_k is said to dominate DMU_j if p _k ≥ p _j , p _k ≠ p _j . The FDH production possibility set TF consists of the observed DMU_j together with all input-output vectors p=[y_k,?x_k] with y ≥ 0, x ≥ 0, y ≠ 0, x ≠ 0 which are dominated by at least one of the observed DMU_j. DMU_k is defined as “FDH efficient” if no DMU_j dominates it. In the BCC (or variable return to scale) DEA model the production possibility set TB consists of the observed DMU_k together with all input-output vectors dominated by any convex combination of them and DMU_k is DEA efficient if it is not dominated by any p in TB. In the DEA model, economic meaning is established by the introduction of (non negative) multiplier (price) vectors w = [u,v]. If DMU_k is undominated (in TB) then there exists a positive multiplier vector w for which (a) w ^T p _k = u ^T y _k ? v ^T x _k ≥ w ^T p for every p ∈ TB. In everyday language, the net return (or profit) for DMU_k relative to the given multiplier vector w is at least as great as that for any production possibility p. On the other hand, if DMU_k is FDH but not DEA efficient then it is proved that there exists no positive multiplier vector >w for which (a) holds, i.e. for any positive w there exists at least one DMU_j for which w ^T p _j > w^T p _k . Since, therefore, FDH efficiency does not guarantee price efficiency what is its economic significance? Without economic significance, how can FDH be considered as being more than a mathematical system however logically soundly it may be conceived?

     

Do I Really Want to Work Here? Testing a Model of Job Pursuit for MBA Interns

Job pursuit refers to the intentions, decisions, or behaviors indicative of a candidate's interest in a particular employer. This study develops and tests a process model of job pursuit for MBA interns with data collected before, during, and after their internships. Our model integrates theory from the person‐environment fit and organizational socialization literature. Results show pre‐entry person‐organization (P‐O) fit and social aspects tactics jointly motivate proactive information seeking about the employer (from those inside and outside the assigned department) during the internship, and interactively motivate information seeking outside the assigned department. Yet, only information seeking inside the assigned department is related to learning about the employer. Learning about the employer also predicts job‐acceptance intentions, which in turn predicts job‐acceptance decisions. The model developed in this study should serve as a guide to help human resource managers understand job pursuit and acceptance in internships and other similar employment relationships. © 2014 Wiley Periodicals, Inc.     

Do Implementation Processes and Rationales Matter? The Case of Workplace Reforms

This paper draws on a 1995 survey of 141 Canadian firms to address the extent to which the rationales and processes associated with workplace reform programmes matter to their success. Specifically, I explore the extent to which implementation rationales predict implementation processes, whether and how both appear to be associated with managerial evaluations of the effectiveness of workplace reforms, whether these associations are contingent on the intensity with which these reforms are adopted or on establishment size, and whether results are sensitive to the measure of effectiveness employed. Overall, I find that, although implementation rationales and processes may 'matter', the extent to which this is the case is limited and varies depending on intensity of adoption, on establishment size, and on the definition of effectiveness employed. I also find that, while adherence to a 'processually rational' model bears some association with effectiveness, this association tends to be uneven. I conclude that, although implementation rationales and processes may help to account for the uneven diffusion and success of reforms, much may also depend on the context and the actors involved     

Does the Composition of Government Expenditure Matter for Long‐Run GDP Levels?

We examine the long‐run GDP impacts of changes in total government expenditure and in the shares of different spending categories for a sample of OECD countries since the 1970s, taking account of methods of financing expenditure changes and possible endogenous relationships. We provide more systematic empirical evidence than available hitherto for OECD countries, obtaining strong evidence that reallocating total spending towards infrastructure and education is positive for long‐run output levels. Reallocating spending towards social welfare (and away from all other expenditure categories pro‐rata) may be associated with modest negative effects on output in the long run.     

Do Teachers Matter? Measuring the Variation in Teacher Effectiveness in England*

Using a unique primary dataset for the UK, we estimate the effect of individual teachers on student outcomes, and the variability in teacher quality. This links 7,305 pupils to the individual teachers who taught them, in each of their compulsory subjects in the high‐stakes exams at age 16. We use point‐in‐time fixed effects and prior attainment to control for pupil heterogeneity. We find considerable variability in teacher effectiveness, a little higher than the estimates found in the few US studies. We also corroborate recent findings that observed teachers’ characteristics explain very little of the differences in estimated teacher effectiveness.     

Do Company Directors Underestimate the Adoption of Corporate Governance Provisions？ A Survey Approach

This paper examines whether company directors underestimate the adoption of corporate governance provisions within Ghanaian listed firms. Using a survey approach, the respondents, who were company executives and non-executive directors with knowledge of the Ghanaian Code and its provisions, regard the code as a benchmark for good corporate governance practices within Ghanaian listed firms. They also report some improvement in the standard of corporate governance in their companies since the introduction of the Code. Many of the company directors indicated their preparedness to comply with further corporate governance requirements, such as the adoption of a formal nomination committee something not been currently included in the Ghanaian Code. However, the directors noted that they receive inadequate support from the regulatory and institutional bodies for the implementation of the Ghanaian Code provisions. Many of the directors also supported the review of the Ghanaian Code by an independent committee. With regard to the adoption of the Ghanaian Code and its influence on firm performance, the respondents indicated that the adoption of the specific governance provisions in the area of chief executive officer （CEO）/chairman roles separation, having a balance of executive and non-executive directors on the board, the establishment of audit and remuneration committees, and the full adoption of the Ghanaian Code provisions were all influential in determining firm performance. They, however, did not support the adoption of the board size provision as influential to firm performance. This raises questions about the usefulness of the range of board size as recommended by the Ghanaian Code.     

When Do Outsider CEOs Generate Strategic Change? The Enabling Role of Corporate Stability

When academic researchers, business commentators, and boards of directors have debated the merits of hiring new CEOs from outside the firm, the implicit or explicit assumption typically made is that outsider CEOs will provide an advantage in achieving strategic change. In this study, we challenge this assumption by employing a duality perspective on stability/change, and we provide an original conceptual framework to posit that it is the presence of corporate stability (ordinary succession, a long‐tenured predecessor CEO, and good firm performance) that allows outsider CEOs to generate a greater degree of post‐succession strategic change. We use extensive longitudinal data from US airline and chemical industries between 1972 and 2010 to test our hypotheses, and we discuss how our supportive findings challenge long‐standing assumptions regarding the outsider succession–strategic change relationship, and we advocate embracing the non‐intiutive notion that stable (unstable) conditions can be enablers (barriers) of strategic change for outsider CEOs.     

Pluralism at Risk? Heterodox Economic Approaches and the Evaluation of Economic Research in Italy

We analyze Italy's recent research evaluation exercise (VTR) as a salient example in discussing some internationally relevant issues emerging from the evaluation of research in economics. We claim that evaluation and its criteria, together with its linkage to research institutions' financing, are likely to affect the direction of research in a problematic way. As the Italian case documents, it is specifically economists who adopt unorthodox paradigms or pursue less diffused topics of research that should be concerned about research evaluation and its criteria. After outlining the recent practice of economic research in Italy and highlighting the relevant scope for pluralism that traditionally characterizes it, we analyze the publications submitted for evaluation to the VTR. By comparing these publications to all the entries in the EconLit database authored by economists located in Italy, we find a risk that the adopted ranking criteria may lead to disregarding historical methods in favor of quantitative and econometric methods, and heterodox schools in favor of mainstream approaches. Finally, by summarizing the current debate in Italy, we claim that evaluation should not be refused by heterodox economists, but rather that a reflection on the criteria of evaluation should be put forward at an international level in order to establish fair competition among research paradigms, thus, preserving pluralism in the discipline.