Index Future Trading and Spot Market Volatility in Frontier Markets: Evidence from Ho Chi Minh Stock Exchange

Asia-Pacific Financial Markets - This study investigates the impact of index futures trading on the spot market volatility for Ho Chi Minh Stock Exchange (HOSE). The data used in this study are...     

Human resource management–well‐being–performance research revisited: Past,present, and future

The authors provide an up‐to‐date theoretically based qualitative review of research dealing with the relationship between HRM, employee well‐being, and individual/organisational performance (HRM‐WB‐IOP research). The review is based on a systematic critical analysis of all HRM‐WB‐IOP studies (N = 46) published in 13 core HRM and management journals in the 2000 to 2018 period. The authors first identify different theoretical models of the HRM‐WB‐IOP relationship, which they then use to map research in the area. The results show that mutual gains conceptualisations play a dominant role in extant HRM‐WB‐IOP research, at the expense of alternative conflicting outcomes and mutual losses models, which are also shown to receive very limited empirical support across the 46 studies. As part of this mapping exercise, the authors identify important knowledge gaps in the area and conclude by setting out a number of key recommendations for future research to address these gaps.     

Minimum Wages and the Gender GAP in Pay: New Evidence from the United Kingdom and Ireland

Women are disproportionately in low‐paid work compared to men so, in the absence of rationing effects on their employment, they should benefit the most from minimum wage policies. This study examines the change in the gender wage gap around the introduction of minimum wages in Ireland and the United Kingdom (U.K.). Using survey data for the two countries, we develop a decomposition of the change in the gender differences in wage distributions around the date of introduction of minimum wages. We separate out “price” effects attributed to minimum wages from “employment composition” effects. A significant reduction of the gender gap at low wages is observed after the introduction of the minimum wage in Ireland, while there is hardly any change in the U.K. Counterfactual simulations show that the difference between countries may be attributed to gender differences in non‐compliance with the minimum wage legislation in the U.K.     

Transfers of landowner willingness to accept: A convergent validity and reliability test using choice experiments in two Canadian watersheds

We examined the reliability and validity of transferring estimates of marginal willingness to accept and compensating surplus. In doing so, we used data from two case studies applying choice experiments to elicit landowner preferences for incentive-based wetland conservation programs in two adjacent watersheds in Southern Ontario, Canada (Grand and Upper Thames Rivers in parallel in 2013). The choice experiment data were modeled in willingness to accept space using a generalized multinomial logit. Transfer reliability was investigated by calculating transfer errors, while validity was investigated by testing the equality of utility functions as well as by assessing the similarity of welfare estimates using traditional hypothesis tests and equivalence tests. The main findings are that transfers of willingness to accept are similar to existing transfers of willingness to pay in terms of validity and reliability. Additionally, a sensitivity analysis finds that including demographic variables in the choice model can lead to lower transfer validity though does not substantially affect reliability. Though further research is required, our results suggest that willingness to accept can be transferred as part of policy analyses.     

Does it pay to be green? A disaggregated analysis of U.S. firms with green patents

The objective of this paper is to investigate the relationship between environmental performance and financial performance on a sample of 361 U.S. firms over the 2007–2016 period. We contribute to the literature by considering firms active in sustainable innovations by obtaining green patents. We also contribute to the literature by using disaggregated measures of environmental performance collected from the Bloomberg ESG database, including environmental disclosure score, greenhouse gas emissions, waste emissions and water use. Panel data regressions' results show that environmental transparency positively influences current accounting and stock market performance, but negatively influences the return on capital employed. Furthermore, lower pollution emissions tend to improve the current return on assets, while being harmful for the efficiency of long‐term capital employment at the same time. The empirical results also indicate that the Global Financial Crisis (2007–2010) increased the environmental transparency of firms with green patents but negatively impacted their price to earnings ratio. At the same time, lower waste disposal diminishes stock valuation while the opposite is true with water use. Taken together, our results suggest that environmental transparency and greenhouse gas emissions generally appear to be the most important environmental variables influencing financial performance, with increasing importance attributed to them by the market after the global crisis period.     

When employee performance management affects individual innovation in public organizations: the role of consistency and LMX

Abstract

Public sector challenges translate in more complex job demands that require individual innovation. In order to deal with these demands, many public organizations have implemented employee performance management. In a multilevel study, we examine when employee performance management affects individual innovation. We contribute by focusing on consistent employee performance management and Leader–Member Exchange (LMX). Based on goal-setting theory, we first argue that employee performance management fosters individual innovation when it entails consistent subpractices. Subsequently, LMX is theorized to function as a moderator in this linkage. We use multilevel data from 68 elderly homes and 1095 caregivers in Flanders to test our hypotheses. The study reveals that individual innovation is related to consistent employee performance management, and that LMX functions as a moderator in this relationship. Our findings contribute to scholars’ understanding of effects from employee performance management in public organizations.     

Increasing the Tick: Examining the Impact of the Tick Size Change on Maker‐Taker and Taker‐Maker Market Models

We investigate the effects of an increase in tick size on order and trading flow across market fee models. Using the pilot firms in the U.S. Securities and Exchange Commission's Tick Size Pilot Program, we document that trade and order volume declines on maker‐taker fee models after the tick size implementation. We find that the inverted fee models (taker‐maker) experience an increase in both trade and order volume. Additionally, we find that a tick size adjustment has a substantial influence on market participation in maker‐taker fee models. We also find that measures of both hidden and algorithmic trading decline with an increasing tick size, which is strongly moderated by the differences in the maker‐taker and taker‐maker fee models.     

Out-of-equilibrium performance of three Lindahl mechanisms: Experimental evidence

We describe an experimental comparison of the out-of-equilibrium performance of three allocation mechanisms designed to achieve Lindahl outcomes as Nash equilibria: the mechanisms due to Walker (1981), Kim (1993), and Chen (2002). We find that Chen?s mechanism, which is supermodular, converges closest and most rapidly to its equilibrium. However, we find that the properties that move subjects toward equilibrium in Chen?s mechanism typically generate sizeable taxes and subsidies when not in equilibrium, and correspondingly large budget surpluses and deficits, which typically far outweigh the surplus created by providing the public good. The Kim mechanism, on the other hand, converges relatively close to its equilibrium and exhibits much better out-of-equilibrium efficiency properties.     

Employability and innovative work behaviour in small and medium-sized enterprises

Abstract

The purpose of this study is to cross-validate HRM measurement instruments for employability (individual competence-based approach) and innovative work behaviour within the context of small and medium-sized enterprises (SMEs) further. The sample consisted of 487 pairs of employees and their immediate supervisors who work in 151 SMEs. A multitrait-multimethod analysis was performed, and the results suggest that for both instruments, requirements regarding convergent and divergent validity have been met satisfactorily. Structural Equation Modeling was performed in order to confirm the factor structure of the instruments. Paired-samples comparisons showed that all of the inter-method correlations for the two-source (employee and immediate supervisor) ratings and for both instruments were significantly positive. As for the final part of the cross-validation, multiple regression analyses were performed to demonstrate predictive validity. Depending on the stage of innovative work behaviour, different dimensions of employability appeared to play a significant role, although the effect did not always veer towards the direction expected. Investing in employability enhancement appeared to contribute to innovative work behaviour. The measurement instruments of employability and innovative work behaviour can provide SME managers with effective instruments to be used for performance appraisals, assessments, and employee development tools.     

Price formation on clandestine markets: the case of the Paris gold market during the Second World War

Because of the scarcity of data, there are few quantitative analyses dealing with clandestine markets, despite their prime importance during wartime. This article exploits a unique database of daily prices of gold coins traded in occupied Paris in order to gain insights into the price formation on such a market. First, using data from Switzerland, we show that arbitrage took place, despite the costs and risks involved, and led to a gradual (but incomplete) convergence of gold prices. Furthermore, a study of price seasonality reveals that less strict borders controls during the weekends made the volatility of returns higher at the start of the following week. Second, on the basis of an event study, we provide evidence that laws related to black markets did not have a significant impact on the gold price, except for the most severe law passed on 8 June 1943 which greatly increased the sentences for involvement. Finally, we assess whether the so‐called coin premiums existed on this clandestine market, and show that the large price variations for one gram of fine gold contained in different coins were due to market participants’ preferences for specific gold coins.