The empirics of trade and growth: where are the policy recommendations?

Existing literature repeatedly documented a strong correlation between trade and growth. It has also shown a causal effect of imports (though not necessarily exports) on growth in simultaneous equation models but to a lesser extent in Granger-causality tests. Export and import taxes have sometimes been found to negatively affect growth. Drawing policy conclusions from these general findings for a particular country is difficult not only because of the contradictory results but also because of potential second best world effects and the implied endogeneity of trade policy. Policy recommendations for a specific country require a careful analysis of market and institutional arrangements and can not be based on the existing cross-country literature.This project started while both authors were working at the World Bank. Views expressed in this paper do not necessarily represent the views of the World Bank or the institutions they are currently affiliated with. We would like to thank Lucas Bretschger, Shanta Deverajan, Marion Jansen, Marcelo Olarreaga, Howard Pack, Karen Pittel and Paul Welfens for helpful discussions and comments. We are especially indebted to Simon Evenett for very detailed and constructive comments.     

Expatriates social networks: the role of company size

This study is an extension as well as a test of Caligiuri and Lazarova's model (2002) for the influence of support provided by different network partners (supervisors, co-workers, friends, spouses) on received socio-emotional and instrumental support. We extended this model by examining this relationship in connection with company size. Ninety expatriates were questioned during their foreign assignment: 45 from small and medium-sized enterprises and 45 from large companies. Consistent with our hypothesis expatriates who received support from their co-workers during their foreign sojourn also received more instrumental support. In addition, the type of company moderated the relationship between the network partner friends and socio-emotional and instrumental support. Implications for expatriate adjustment research and practice are discussed.     

Changes in psychological contracts during the global financial crisis: the manager's perspective

The employee–organisation relationship is dynamic and arguably affected by contextual factors, such as a change in the economic environment. This study uses data collected from managers in Australia before and after the beginning of the global financial crisis (GFC) to examine the changes in psychological contract (PC) terms from the manager's perspective. In particular, as industries can be affected differently by economic crisis and gender discrimination can increase in tough economic conditions, we examined if any changes in PC terms were contingent on industry and employee gender. The study's results show that the terms of the employment relationship deteriorated in Australia only for employees working in industries affected by the GFC. Further, we found that some gender differences in the terms of the PC exist independent of the state of the economy. In addition, a three-way interaction indicates that managers working in industries not affected by the GFC are allocating a greater proportion of their resources to their female employees than to their male employees. Ongoing labour shortages and gender inequities in Australia might have prompted managers in non-affected industries to use their relative ‘resource-rich’ advantage to positively influence the employee–organisation relationship for female employees, a traditionally disadvantaged group.     

The Impact of Introducing Estimates of the Future on International Comparability in Earnings Expectations

The objective of this paper is to assess whether the inclusion of improved estimates of the future in corporate annual financial statements has brought about greater international comparability. It is argued that including more relevant information in financial reporting enables users to estimate earnings that are more able to reflect current economic conditions and up-to-date expectations of the future and thus recognize news in a more timely manner. To reflect the underlying economics of integrating financial markets, earnings expectations must be not only more timely but also more comparable. Thus, in examining the increasingly widespread adoption of International Financial Reporting Standards (IFRS), this study considers both the timeliness and the comparability of earnings expectations in the European Union, before and after the mandatory IFRS implementation. The empirical findings support the view that users' earnings estimates have indeed become more timely in recognizing market news and significantly more comparable.     

Die neuen Elterngeld-Komponenten: Will money trump gender?

Empirical evidence on couples’ decision making has shown that the partners’ sharing of resources (particularly of time and money) is driven by their respective bargaining positions and gender role behaviour. Against the background of an asymmetric specialisation risk carried by the person that takes care responsibilities, we discuss the potential effects that the recently proposed extensions of the German parental leave system, particularly the “ElterngeldPlus” and “Partnerbonus”, may have on the partners’ work division and their individual welfare levels in the long run.     

Processes of firm growth and diversification: theory and evidence

Investigating the role of diversification in the firm growth process, we build on Penrose’s (The theory of the growth of the firm. Oxford University Press, Oxford, 1959) Theory of the Growth of the Firm to formulate hypotheses about growth of employment, assets and sales in the years before, during and after a new product introduction. We exploit a new database from the German machine tool industry that boasts a detailed and meaningful definition of diversification. Our exploratory analyses indicate that diversification, in terms of product introductions, is preceded by employment growth. Moreover, we find support that diversification is positively associated with subsequent asset growth, but negatively associated with subsequent employment growth.     

The Economic Significance of Long‐Term Plans

The authors summarize the findings of their event study of the capital market reactions to an inaugural set of 17 CEO presentations of their ‘long‐term plans’ to institutional investors. The findings show that, although sell‐side analysts appear unresponsive to such plans, both trading volumes and stock prices exhibit significant abnormal reactions to the presentations, providing suggestive evidence that the communication of such plans conveys ‘value‐relevant’ information to investors with longer time horizons. Although based on an admittedly small sample, these findings shed light on the promise of long‐term plans and have been corroborated by analysis of the market response to the presentations of 10 more companies since the study was conducted. The authors also provide the outlines of a ‘content framework’ designed to help companies put together effective corporate plans and other long‐term disclosures. The framework is organized around nine main ‘themes,’ including policies governing capital allocation, corporate governance, and human capital development, as well as the statement of corporate purpose. After applying this framework to the 17 CEO presentations, the authors find that the more specific and forward‐looking the information disclosed in these long‐term plans, the more positive the capital market reaction.     

A probabilistic projection of beneficiaries of long-term care insurance in Germany by severity of disability

Quality & Quantity - Demographic aging puts social insurance systems under immense pressure as frailty risks increase with age. The statutory long-term care insurance in Germany (GPV), whose...     

Consideration of ethical attributes along the consumer decision-making journey

Journal of the Academy of Marketing Science - Information about ethical strengths and weaknesses of individual products (e.g., cause-related marketing, corporate social responsibility records) is...