Board size and diversity as governance mechanisms in community development loan funds in the USA

Community Development Loan Funds (CDLFs) in the US help revitalize low-income communities by providing financial services to underserved populations. This article uses recently available data from several surveys to explore the link between performance and board size and diversity. Given the unique nature of CDLFs, specific hypotheses are formulated based on insights from the literature on governance in banks and nonprofit institutions. To capture the CDLFs multiple objectives, the article adapts an empirical approach used to study governance in banks. The results show that efficiency improves as the board size increases up to 13 members. The results also suggest that gender diversity has a positive impact, while racial diversity is associated with a negative but negligibly small impact.     

Light me up: power and expertise in risk communication and policy-making in the e-cigarette health debates

Abstract

This paper presents a detailed account of policy-making in a contemporary risk communication arena, where strong power dynamics are at play that have hitherto lacked theoretical analysis and empirical validation. Specifically, it expands on the understanding of how public health policy decisions are made when there is a weak evidential base and where multiple interpretations, power dynamics and values are brought to bear on issues of risk and uncertainty. The aim of the paper is to understand the role that power and expertise play in shaping public health risk communication within policy-related debates. By drawing on insight from a range of literatures, the paper argues that there several interacting factors that shape how a particular narrative gains prominence within a wider set of perspectives and how the arguments and findings associated with that perspective become amplified within the context of policy choices. These findings are conceptualised into a new model – a policy evaluation risk communication (PERC) framework – and are then tested using the Electronic cigarette debate as a case study.     

The effects of agglomeration on tax competition: evidence from a two-regime spatial panel model on French data

This article studies how agglomeration economies affect tax competition between local jurisdictions. We develop a theoretical model with two main testable predictions: in a setting where agglomeration forces lessen the responsiveness of capital to tax, high-regime agglomeration jurisdictions should adopt a rent-taxing behavior, and they should react less to their neighbors’ tax policies. The panel dataset spans the period from 1995 to 2007 and focuses on the local business taxes set at the French mid-subnational jurisdiction level of départements. First, instrumental variables estimates indicate that attractive jurisdictions capture a significant part of firms’ agglomeration rent by levying higher tax rates. An increase by 1% of the localization economies indicator (a specialization index) leads to increasing the business tax rate by 0.43%. Second, local tax setting behaviors are characterized by a mimetic behavior, with best response functions that slope upwards. We propose a two-agglomeration-regime spatial lag model to estimate through ML the relationship between tax competition and attractiveness. Our main result shows that both are linked and tax mimicry is less pronounced if a jurisdiction is agglomerated. Specifically, in response to a decrease in the tax rate of neighboring local governments by 1%, local governments with strong agglomeration economies reduce their tax rate by 0.4% against 0.6% for local government characterized by a low-agglomeration regime. We show that the classical one-size-fits-all-case of a single regime of agglomeration suffers from a 40% downward bias for low-agglomeration jurisdictions. We draw the link to policy praxis by discussing the optimal design of equalization schemes.     

The contributions of productivity, price changes and firm size to profitability

Sources of profit change for Telstra, Australia’s largest telecommunications firm, are examined. A new method allows for changes, in a firm’s profits to be broken down into separate effects due to productivity change, price changes, and growth in the firm’s size. This in turn allows us to calculate the distribution of the benefits of productivity improvements between consumers, labor, and shareholders. The results show that around half the benefits from Telstra’s productivity improvements from 1984 to 1994 were passed on to consumers in the form of real price reductions.

Earnouts: A study of financial contracting in acquisition agreements

We empirically examine earnout contracts, which provide for contingent payments in acquisition agreements. Our analysis reveals considerable heterogeneity in the potential size of the earnout, the performance measure on which the contingent payment is based, the period over which performance is measured, the form of payment for the earnout, and the overall sensitivity of earnout payment to target performance. Our tests of the determinants of contract terms yield support for the view that earnouts are structured to minimize the costs of valuation uncertainty and moral hazard in acquisition negotiations.     

Post-earnings-announcement Drift: Some Preliminary Evidence for the UK

This paper tests for the presence of post-earnings-announcement drift on the London Stock Exchange using data for seven half-years for a constant sample of 206 quoted companies. Separate results are presented for interim and final earnings announcements and the results are disaggregated by firm size. Overall, we find evidence of significant drift for the earnings announcements of small firms but not for the announcements of large firms.     

Firms in Transition: A Review of the Venture Capital,IPO, and M&A Literature

A key area of research focuses on firms in transition, particularly those going public via initial public offerings, those growing via venture capital infusions, and acquirers and targets in merger and acquisition deals. In this article, we provide a review of research regarding firms in transition, with a primary focus on accounting‐related research. As part of our review we include key contributions both in the Canadian context and internationally, and discuss areas to be considered for future research.     

Subaltern Urbanization: Indian Insights for Urban Theory

The concept of subaltern urbanization is about vibrant smaller settlements—outside the metropolitan shadow—sustainably supporting a dispersed pattern of urbanization. We propose a theoretical framework which draws on an empirical research collective using both large statistical and land-use data sets and detailed case studies in non-metropolitan Indian geographies. Anchored in postcolonial urban studies, it looks beyond the logic of agglomeration and questions our understanding of settlement hierarchies and the location of social and economic innovation processes, opening up an alternative reading of urbanization that could be valuable for other regions. Local agency is core to this concept, transporting the arguments of the ordinary and the subaltern beyond large cities. Our findings, apart from emphasizing the agency of smaller settlements, highlight their multiple local and translocal flows, shaping an autonomous external engagement that could exist independently of relationships with large cities. Further, even though the rural and the urban seep into each other, they do so organically, unlike the process in planetary urbanization. Additionally, the rural-urban dichotomy remains performative, in that governance regimes influence the urbanization process. Appreciation of these dynamics can provide insights towards a better understanding of the system of human settlements, which is our goal in advancing this framework.     

Owner-managers and firm performance during the asian and global financial crises: evidence from Korea

We examine the performance of the Korean owner-managers during the 1997?1998 Asian financial crisis and the 2008?2009 global financial crisis to establish whether they overcome the unexpected exterior shocks better than employed managers. We find that the owner-managers record a significantly greater performance during the crises, and especially during the latter period. Moreover, our results suggest that such a tendency comes from the owner-managers’ superior investment decisions. Our paper thus highlights the role of owner-managers by studying their performance during the Korean economic crisis periods. (JEL G01, G32, G34)     

Enterprise Identity Management – Towards a Decision Support Framework Based on the Balanced Scorecard Approach

Enterprise Identity Management Systems (EIdMS) are an IT-based infrastructure that needs to be integrated into various business processes and related infrastructures. Assessment and preparation of decisions for the introduction need to take the costs, benefits, and the organizational settings into consideration. A variety of methods for the evaluation and decision support of new IT (e. g. EIdMS) are discussed in the literature – however, these are typically based on single dimensions (e. g. financial or technology aspects). This paper proposes a multidimensional decision support framework, based on the Balanced Scorecard concept. The presented approach introduces four perspectives and a related set of initial decision parameters to support decision making. The perspectives are (a) financial/monetary, (b) business processes, (c) supporting processes and (ICT) infrastructure and (d) information security, risks and compliance. Perspectives and adaptable sets of decision parameters also may serve as foundation for software-based decision support instruments.