Environmental policy and convexity of climate change damage functions: an experiment with New Keynesian DSGE model

International Economics and Economic Policy - The paper seeks out to investigate how varying degree of convexity of climate change damage function affect economic output and the dynamic response of...     

Bailouts and the modeling of bank distress

In this article, we develop a model for predicting distress events among large banks. We show that a bailout possibility induces different behaviors among small and large banks, and the proposed failure prediction model for large banks is thus considerably different from that for small banks. Major bank-level fundamentals show opposite conjecture directions for large versus small banks. The Tier 1 capital ratio, which is under the scrutiny of regulators and investors, has almost no distress prediction power among large banks. However, banks rescued by governments tend to maintain a lower Tier 1 ratio. The cost of funding in large banks is negatively correlated with the probability of failure, reflecting the fact that lenders internalize the too-big-to-fail (TBTF) policy and demand a lower interest rate from TBTF banks.     

Influence of family-centered goals on dividend policy in family firms: A socioemotional wealth approach

Socioemotional wealth (SEW) preservation is likely to be a key determinant for family firms when shaping their dividend policy. This paper analyzes how family-centered goals reflected by SEW can influence dividend policy in private family firms and explores how family involvement in management, generational stage, and firm hazard might moderate these relationships. Results indicate a negative association between SEW preservation and both the likelihood of giving dividends and the amount of dividend paid. This negative relationship is stronger when the CEO is a family member, in early generational stages and when the firm faces greater performance hazard. The amount of dividend paid is also lower when there are family members in other top management positions apart from the CEO. The evidence provided thus suggests that the existing heterogeneity in dividend policy in privately held family firms is strongly driven by differences in SEW priorities.

     

The street music business: consumer responses to buskers performing on the street and on online video platforms

Marketing Letters - The street music business dates back hundreds of years and exists in many cities of the world. Although anecdotal evidence suggests that the number of listeners who donate...     

Analysing corporate forest disclosure: How does business value biodiversity?

Corporations are failing to account for their impact on biodiversity despite accelerating extinctions. The value of biodiversity to business can be explained by an environmental philosophy spectrum, where perspectives range from anthropocentric (humans are prioritised) to ecocentric (all life is equal), made up of paradigms and values linked to biodiversity protection. We explore the biodiversity values conveyed by the 40 largest corporations responding to the CDP Forest Questionnaire using 28 specific yes/no criteria aligned with the environmental philosophy spectrum. Strong anthropocentric perspectives focused on economic contribution dominated, conveying a desire to protect company reputation, thereby legitimising operations. Corporations seemingly only protect biodiversity that hold material benefits for humans. Some biocentric/ecocentric perspectives were conveyed in terms of extinction risk and sometimes intrinsic value. This could be a response to the accelerating global biodiversity crisis, offering hope corporations can protect all forms of biodiversity and could evidence ecocentric leadership informing business strategy.     

Small open economies and external shocks: an application of Bayesian global vector autoregression model

Quality & Quantity - This study assesses the impact of external shocks on select small open economies (SOEs) using the Bayesian variant of the global vector autoregression model with time...