The changing public sector: from transition to transformation

This paper contributes to the empirical audit-quality literature and provides evidence on (the lack of) audit-quality differentiation in the private client segment of the Belgian audit market. Auditor size is used as audit-quality proxy. Prior evidence on audit-quality differentiation between Big Six and non-Big Six auditors in the private client segment of the Belgian audit market is mixed. In this paper we investigate whether these mixed results stem from the inability of the dichotomous Big Six/non-Big Six variable to capture auditor-size differences in a less concentrated audit market. To that end we examine whether alternative continuous measures of audit-firm size (i.e. auditor market share, number of audit-firm clients, number of partners in the audit firm, total assets and operating profit of the audit firm) have a constraining impact on earnings management in a large sample of privately held Belgian companies (n?=?1,302). Overall, we do not find evidence that is supportive of quality differentiation in the private client segment of the Belgian audit market.     

The minimum weighted covariance determinant estimator

In this paper, we introduce weighted estimators of the location and dispersion of a multivariate data set with weights based on the ranks of the Mahalanobis distances. We discuss some properties of the estimators like the breakdown point, influence function and asymptotic variance. The outlier detection capacities of different weight functions are compared. A simulation study is given to investigate the finite-sample behavior of the estimators. The research of Stefan Van Aelst was supported by a grant of the Fund for Scientific Research-Flanders (FWO-Vlaanderen) and by IAP research network grant nr. P6/03 of the Belgian government (Belgian Science Policy).     

Family Formation and the Divisions of Labour in Belgian Couple Households

In this chapter the authors describe how a quantitative analysis resulted in a proposal for a qualitative research. The aim of the quantitative research was to analyse the impact of family formation on the division of labour in couple households, based on data from the Panel Study on Belgian Households.In a first step a typology was made based upon data of 1224 Belgian couple households (1995). The second step consisted of a longitudinal analysis for the period between 1992 and 1995. The analysis of the impact of birth on the division of labour gave evidence of the revocability of equal patterns of division of labour.Based on these findings the authors concluded that the classic concept of emancipation does not allow us to understand the empirical phenomena. Hence, the authors proposed a new (qualitative) investigation aimed at clarification and empirical validation of different contents of the concept of emancipation.     

Are the ‘Big Six’ ‘big’ in Belgium?

Studies in the United States, Europe and Australia have shown that the market for audit services is highly concentrated and largely dominated by the same ‘Big Six’ international audit firms. This paper measures the degree of concentration in the Belgian audit market through an empirical study of the number of professionally qualified auditors employed by each audit firm and some characteristics of their clients. Our calculations show that the concentration ratios, however measured, are low when compared with other countries, possibly due to the low value attached to the certification of financial statements by a professionally qualified auditor. This lack of importance can be explained by characteristics of the Belgian environment (e.g. a relatively passive capital market, dominated by a few large holding companies) which may induce companies to chose cheaper (domestic) audit firms. We also calculate Spearman rank correlations between the rankings of the audit firms based upon the different audit firm revenue proxies. All the correlations show it is of no importance which measure is used to rank audit firms.     

Entry,exit and profitability

In this paper arguments are set forward explaining the interrelationship between the entry and exit decision. The simultaneous effect of entry and exit on profitability for some Belgian sectors is studied. The empirical results seem to suggest that future research in this area has to take into account the link between entry and exit.     

Make Governments Compete for People

The EEC is under severe criticism for failing lo live up to its early promise as the means to liberalise the European economy. Belgian economist Michael van Notten, a former official in Brussels, analyses the causes of bureaucratisation and proposes a means of liberalising the Community by making ifs governments compete for citizens and industry. He visualises the EEC as a European Hong Kong.     

基于耗散结构理论下企业产品技术创新分析与模型的建立

由比利时科学家普利高津(I.prigogine)针对非平衡热力学和统计物理学的发展提出的耗散结构理论,不仅广泛应用于自然科学,而且广泛地适用于企业,尤其是企业的产品技术创新。应用耗散结构理论分析企业产品技术创新和建立创新模型,对指导企业产品技术创新中实现突变与跃升有着独特的作用。     

Segmenting the Belgian charitable sector: The impact of environmental factors on households' generosity

Research on charitable giving has known a renewed interest over the last years. Despite a recent evolution, the literature remains predominantly Anglo‐Saxon, and studies are consequently conducted in societies marked by a strong charitable giving culture. In that respect, donors are generally considered as isolated individuals, and the impact of social and environmental factors such as public policies, institutional specificities, and punctual events is often underestimated. Moreover, research on generosity often suffers from the absence of reliable data, free of desirability bias. Based on fiscal data of tax returns and gift tax returns provided by the official Belgian statistics bureau, this research investigates individual donating behaviors while considering the influence of environmental determinants on generosity. More specifically, we empirically assess the generosity of Belgian households over a period of 8 years marked by natural disasters, massive calls for public generosity, and changes in tax policies. Among other things, we qualify the results of previous research on the role of age and open the debate on the role of household composition as a variable for segmenting donors. Finally, we propose leads for future research in order to stimulate further academic effort on the topic.     

Consistent estimation in the bilinear multivariate errors-in-variables model

A bilinear multivariate errors-in-variables model is considered. It corresponds to an overdetermined set of linear equations AXB=C, A∈ℝ^m×n, B∈ℝ^p×q, in which the data A, B, C are perturbed by errors. The total least squares estimator is inconsistent in this case.  An adjusted least squares estimator is constructed, which converges to the true value X, as m →∞, q →∞. A small sample modification of the estimator is presented, which is more stable for small m and q and is asymptotically equivalent to the adjusted least squares estimator. The theoretical results are confirmed by a simulation study. Acknowledgements. We thank two anonymous reviewers for their suggestions and corrections.? A. Kukush is supported by a postdoctoral research fellowship of the Belgian office for Scientific, Technical and Cultural Affairs, promoting Scientific and Technical Collaboration with Central and Eastern Europe.? S. Van Huffel is a full professor with the Katholieke Universiteit Leuven.? I. Markovsky is a research assistant with the Katholieke Universiteit Leuven.? This paper presents research results of the Belgian Programme on Interuniversity Poles of Attraction (IUAP V-22), initiated by the Belgian State, Prime Minister's Office – Federal Office for Scientific, Technical and Cultural Affairs of the Concerted Research Action (GOA) projects of the Flemish Government MEFISTO-666 (Mathematical Engineering for Information and Communication Systems Technology), of the IDO/99/03 project (K.U. Leuven) “Predictive computer models for medical classification problems using patient data and expert knowledge”, of the FWO projects G.0078.01, G.0200.00, and G0.0270.02.? The scientific responsibility is assumed by its authors.     

Robust tests of forward exchange market efficiency with empirical evidence from the 1920s

This paper provides a robust statistical approach to testing the unbiasedness hypothesis in forward exchange market efficiency studies. The methods we use allow us to work explicitly with levels rather than differenced data. They are statistically robust to data distributions with heavy tails, and they can be applied to data sets where the frequency of observation and the futures maturity do not coincide. In addition, our methods allow for stochastic trend non-stationarity and general forms of serial dependence. The methods are applied to daily data of spot exchange rates and forward exchange rates during the 1920s, which marked the first episode of a broadly general floating exchange rate system. The tail behaviour of the data is analysed using an adaptive data-based method for estimating the tail slope of the density. The results confirm the need for the use of robust regression methods. We find cointegration between the forward rate and spot rate for the four currencies we consider (the Belgian and French francs, the Italian lira and the US dollar, all measured against the British pound), we find support for a stationary risk premium in the case of the Belgian franc, the Italian lira and the US dollar, and we find support for the simple market efficiency hypothesis (where the forward rate is an unbiased predictor of the future spot rate and there is a zero mean risk premium) in the case of the US dollar.     

Daily news sentiment and monthly surveys: A mixed-frequency dynamic factor model for nowcasting consumer confidence

Policymakers, firms, and investors closely monitor traditional survey-based consumer confidence indicators and treat them as an important piece of economic information. To obtain a daily nowcast of monthly consumer confidence, we introduce a latent factor model for the vector of monthly survey-based consumer confidence and daily sentiment embedded in economic media news articles. The proposed mixed-frequency dynamic factor model uses a Toeplitz correlation matrix to account for the serial correlation in the high-frequency sentiment measurement errors. We find significant accuracy gains in nowcasting survey-based Belgian consumer confidence with economic media news sentiment.     

Managerial Objectives and the Governance of Public and Non-Profit Organizations

By investigating managerial objectives, we test the simultaneous need for both control (agency theory) and collaboration (stewardship theory) in public and non-profit governance. We construct a discrete choice experiment to elicit preferences of managers in Belgian public and non-profit nursing homes. The results confirm that boards of nursing homes may experience pressure to simultaneously control and collaborate with their managers, thereby suggesting that agency and stewardship theory can be combined into a more general internal governance framework. We conclude by providing some policy implications to improve public and non-profit governance.     

On Labour Market Policies and Aggregate Unemployment Outflows

This paper is interested in the modelling of the relationship between active and passive labour market policies and the aggregate unemployment outflow rate. Our model is based on a matching function and includes a simple representation of the competition between various groups of job searchers. The empirical analysis uses Belgian data. Faced with variables that are often integrated of order 1 according to the usual tests but which cannot strictly speaking be integrated, we contribute to an important methodological debate by comparing the conclusions of a classical econometric analysis and a cointegration approach.     

The Flemish government's responsibility for local government modernization

Abstract

Throughout Western Europe, local government is modernized. Central and regional governments carry responsibility for this modernization because they decide upon its nature. However, this responsibility reaches out further since a higher-level government also carries responsibility for the success of its modernization at the local level. The article unravels this responsibility for local government modernization in the case of the Flemish government. As a result of Belgian state reform, this government counts today as the most important higher-level government from the viewpoint of local government in Flanders.     

Corporate groups,liquidity, and overinvestment by Belgian firms quoted on the Brussels stock exchange

For a sample of large Belgian non-financial firms quoted on the Brussels stock exchange, it is found that investment of firms borrowing on an internal capital market is not determined by internal cash flow, while cash flow has a significant effect on investment for the other firms in the sample. Further analysis indicates that the cash flow effect is caused by overinvestment, not by financing constraints. No evidence is found that firms borrowing on an internal capital market in turn transfer surpluses of funds to other group members by investing in financial fixed assets. © 1998 John Wiley & Sons, Ltd.     

Labour Demand Adjustment: Does Foreign Ownership Matter?

This paper examines whether multinationals differ in their employment adjustment from domestic companies, using a panel of 5,544 Belgian firms observed between 1998 and 2005. More precisely, we estimate labour adjustment costs by worker and firm types. We propose a new flexible specification that takes into account the role of firm size in adjustment costs. Our results indicate that adjusting white‐collar employment is around half as costly for multinational firms (MNFs) as for domestic firms of the same size. The remaining differential in adjustment costs between MNFs and domestic firms might result, among other things, from multinationals' stronger bargaining power.     

Do board composition and investor type influence innovativeness in SMEs?

Companies need to adapt and evolve if they wish to survive. Future success lies in the ability to develop innovative solutions for customer??s problems and needs. This study aims to explore the influence of corporate governance and ownership structure on (product) innovativeness in a sample of 49 small and medium sized firms (SMEs) in the Belgian manufacturing industries. The main findings of the study are twofold. Firstly, a significant positive relationship between innovativeness and the size of a firm??s board has been found. Secondly, business-to-consumer markets tend to be more innovative than business-to-business markets. No significant relationship was found between the investor type and a firm??s innovativeness.     

Explaining the Relation Between Job Insecurity and Employee Outcomes During Organizational Change: A Multiple Group Comparison

We develop and test a mediation model linking job insecurity to affective commitment and psychosomatic complaints via two distinct theoretical mechanisms: fairness and energy depletion. Analyses were based on 6,268 Belgian bank employees facing organizational change. Results from structural equation modeling showed that fairness and exhaustion partially mediated the association of job insecurity with affective commitment and psychosomatic complaints, respectively. Multiple group analysis showed that the relation between job insecurity and fairness gradually decreased across the three change stages, and that the exhaustion process was most prominent amid the change. Implications and directions for future research are discussed. © 2015 Wiley Periodicals, Inc.     

The Relevance of Mission Statements: Analysing the antecedents of perceived message quality and its relationship to employee mission engagement

Although mission statements are deemed effective tools for communicating the goals of public organizations, there is a dearth of research examining how employees perceive mission statements and their effect. Data from 1,418 employees of a Belgian public organization indicate that although perceived mission statement quality and employee mission engagement are positively related, individual acceptance of the mission statement varies within the analysed organization and can be, partially, explained by cognitions and attributes of the message receiver (hierarchical position, perceived self-efficacy and person–organization fit), and employee cognitions regarding the message sender (behavioural integrity) and the message (mission ambiguity).