Authentic leadership and intrapreneurial behavior: cross-level analysis of the mediator effect of organizational identification and empowerment

Intrapreneurial activity is positively associated with the organizational growth, and the factors that stimulate such behaviors need to be identified. The general goal of this work is to explore the relationship of authentic leadership with employees’ intrapreneurial behavior and the intervening processes. A correlational study was carried out with 212 employees of Spanish companies, in which two cross-level mediation hypotheses were tested. The results obtained indicate that employees’ organizational identification and organizational empowerment both mediate the relationship between authentic leadership and employees’ intrapreneurial behaviors. In this work, we note the importance of including authentic leadership as an antecedent of intrapreneurship.     

Accounting for Environmental Influences in Stochastic Frontier Models: With Application to International Airlines

The principal aim of this paper is to measure the efficiency of international airlines. We obtain measures of technical efficiency from stochastic frontier production functions which have been adjusted to account for environmental influences such as network conditions, geographical factors, etc. We observe that two alternative approaches to this problem have been proposed in the efficiency measurement literature. One assumes that the environmental factors influence the shape of the technology while the other assumes that they directly influence the degree of technical inefficiency. In this paper we compare the results obtained when using these two approaches. The two sets of results provide similar rankings of airlines but suggest differing degrees of technical inefficiency. Both sets of results also suggest that Asian/Oceanic airlines are technically more efficient than European and North American airlines but that the differences are essentially due to more favourable environmental conditions. Nevertheless, it is among Asian companies that the major improvements in managerial efficiency (technical efficiency with environmental factors netted out) took place over the sample period (1977–1990).     

Pricing options under stochastic volatility: a power series approach

In this paper we present a new approach for solving the pricing equations (PDEs) of European call options for very general stochastic volatility models, including the Stein and Stein, the Hull and White, and the Heston models as particular cases. The main idea is to express the price in terms of a power series of the correlation parameter between the processes driving the dynamics of the price and of the volatility. The expansion is done around correlation zero and each term is identified via a probabilistic expression. It is shown that the power series converges with positive radius under some regularity conditions. Besides, we propose (as in Alós in Finance Stoch. 10:353–365, 2006) a further approximation to make the terms of the series easily computable and we estimate the error we commit. Finally we apply our methodology to some well-known financial models.      

Looking Upstream and Downstream in Entrepreneurial Cognition: Replicating and Extending the Busenitz and Barney (1997) Study

We revisit the assertion that entrepreneurs are uniquely characterized in their ways of thinking; specifically being relatively more prone to the overconfidence bias and the representativeness heuristic in their decision‐making. We replicate an earlier seminal study in entrepreneurial cognition, with a wider and more current survey. We then extend that analysis by investigating whether such “different thinking” leads to different (i.e., less rational) choices and different (i.e., worse) firm performance. Given the expected differences, we also investigate whether there exist other factors that affect the use of such biases and heuristics, to control their effects on focal outcomes.     

Endogenous location leadership

We analyze a game of timing where Sellers, which have marginal production cost asymmetries, can delay entry and a commitment to a location in a Hotelling type setting. When cost differences are large enough the game becomes a war of attrition that yields Stackelberg behavior where the high cost firm will delay choosing a location until the low cost firm commits to its position. We find interaction effects between timing and the degree of product differentiation and compute timing/location and mixed strategy equilibria through a range of marginal cost differences. The firms maximally differentiate with moderate cost differences; with somewhat greater cost differences there is intermediate differentiation, and; with large cost differences there is a blockading monopoly. The low cost firm always commits to entry immediately whereas the high cost firm either enters immediately, shortly after the low cost leader, or never, depending on the cost differences. Finally, we find that in equilibrium the duopoly is sustained for a larger range of cost differentials and that differentiation is greater than the social optimum.     

Comparing IV with structural models: What simple IV can and cannot identify

This paper compares the economic questions addressed by instrumental variables estimators with those addressed by structural approaches. We discuss Marschak’s Maxim: estimators should be selected on the basis of their ability to answer well-posed economic problems with minimal assumptions. A key identifying assumption that allows structural methods to be more informative than IV can be tested with data and does not have to be imposed.     

On financial deepening and long-run growth

I develop a stylized model of endogenous growth in which the level of financial depth influences an economy’s long-run growth. Financial depth is defined within the model as the ease with which investors can issue equity in the market on new units of capital. I assume that agents differ in the cost of undertaking investment projects and that there is a fixed distribution of such costs across the population. I theoretically identify channels through which financial depth influences growth, both positively and negatively. When considering a specific distribution of costs, I show that the net effect of financial depth on growth is non-monotonic. It depends on the shape of the distribution, as well as the level or stage of financial depth. The results of this paper help to rationalize some findings in the recent empirical literature on the non-monotonic effect of financial depth on long-run growth. The model is even capable of obtaining a negative effect of excessive financial depth on growth, a result that is also found in the empirical literature.