The Concurrent Impact of Cultural,Political, and Spatial Distances on International Mergers and Acquisitions

This paper explores the concurrent effects of cultural, political, and spatial distances on mergers and acquisitions (M&A) flows occurring between any two countries belonging to the whole European Union (27 States) or to the European Neighbours group (16 States) over the period 2000–11. In the econometric analysis, based on zero‐inflated models, we simultaneously estimate the probability of engaging in a cross‐border M&A and the intensity of the deals. This allows us to adequately model the two different mechanisms which may result in the absence of deals in the cross‐border bilateral M&A transactions. The absence of deals may be due to either the lack of any transactions or unsuccessful negotiations. Taking into account the effect of population, gross domestic product, technological capital, financial conditions and quality of the institutions, we find robust evidence that the multi‐dimensional distance between two countries negatively affects both the probability and the intensity of M&A deals.     

The 2008/09 Economic Crisis: The Impact on Psychological Well-Being in the USA

The 2008/09 economic crisis has been the worst crisis of capitalism since the Great Depression. The causes and implications of the so-called “Great Recession” have been widely documented, but the effects of the crisis on psychological well-being have only received limited attention. Using state-level data, this paper aims to assess empirically the impact of the 2008/09 crisis on several indicators of mental health in the USA. The results indicate that unemployment and income levels have a significant and detrimental impact on mental health. This implies that social protection systems—and in particular labor market programs—play a paramount role in reducing the adverse impact of the crisis on mental health.     

Core and equilibria in coalitional asymmetric information economies

We study coalitional economies under uncertainty and asymmetric information, assuming a finitely additive measure space of agents and finitely many possible states of nature. We introduce a suitable core notion showing that it is equivalent to Walrasian expectations equilibria. The finitely additive approach proposed in the paper permits also asymmetric information economy with countably many agents, rather than requiring only a continuum. Moreover, it allows us to overcome well-known criticisms related to the interpretation of individual private core notions.     

Network planning of fuelling service stations in a near-term competitive scenario of the hydrogen economy

Hydrogen can be viewed as the flexible automotive fuel of the future. However, many issues related to its use have not been sufficiently investigated. One such issue concerns hydrogen logistics and distribution throughout a territory. One near-term scenario over the next decade is likely to include distribution procedures that are similar to those currently used for petrol products. In this scenario, the conversion of petrol service stations into hydrogen distribution points will progressively be implemented. Petrol companies will then represent one of the major categories of hydrogen producers. They will thus have to select, from a cost/benefit standpoint that accounts for competing companies expected to offer the same service throughout a territory, the most convenient and effective locations for hydrogen distribution. The current paper presents a model for planning a network of service stations of a given company within a competitive framework. A case study of a specific territory in northern Italy is presented and discussed.     

Do micro start-ups fuel job creation? Cross-country evidence from the DynEmp Express database

Exploiting a novel database recently built from national business registers by the OECD with the support of an international network of experts, this paper investigates the growth dynamics of micro-firms (employing less than ten workers) across 16 countries. Results show that only a small proportion of micro-firms manage to grow beyond ten employees, but those contribute disproportionately to overall job creation. Econometric analysis focusing in particular on the role of age confirms that young micro-firms—especially those below 3 years of age—are much more likely to grow above ten employees than older firms. These findings are remarkably stable over the three time periods considered (2001–2004, 2004–2007, and 2007–2010), i.e., also during the Great Recession.     

An empirical study of consumer behavior related to private labels and national brand promotions

One day while in the store, Bernard grabs his usual Dominick's cream cheese off the shelf. I notice and point out that the national brand of Philadelphia cream cheese is on sale and less expensive. Bernard looks at the two products and actually hesitates for a while to switch to the national brand. His hesitation makes it clear that his preference is not based solely on price. (Chang Coupland 2005, 115).     

Materiality in integrated and sustainability reporting: A paradigm shift?

This paper investigates the implementation of integrated reporting (IR) by Generali, one of the most important listed companies in Italy. The research questions we aim at answering are the following: Is the IR approach to materiality inherently different from the sustainability reporting (SR) approach? Does IR lead to the identification of different material topics than does SR? On the one hand, institutional theory suggests that IR and SR material topics are going to be significantly different because IR is mainly driven by a market logic, whereas SR is inspired by a stakeholder logic. On the other hand, organizational change theory predicts there will be some resistance to change by the organization, therefore leading to IR and SR topics being similar. In order to answer our research questions, we implement two empirical analyses. First, we propose and develop an innovative methodological approach on the basis of content analysis, which allows measuring the materiality of different issues under the IR approach. Second, we rely on evidence obtained through interviews, which suggests that IR and SR approaches to materiality are inherently different.     

Productivity, exporting, and the learning-by-exporting hypothesis: direct evidence from UK firms

Abstract.  Case studies suggest exporters learn from clients. Econometric evidence is mixed. We use firm-level panel data on exporting and productivity with direct information on learning sources, including clients. We find: (a) firms who exported in the past are likely to learn more from clients (relative to other sources); (b) firms who learned from clients in the past are more likely to have faster productivity growth; (c) the reverse is not the case; that is, past productivity growth is not associated with more learning from clients and past learning from clients is not associated with more exporting. These results are consistent with the learning-by-exporting hypothesis.     

Time overruns as opportunistic behavior in public procurement

We consider the supplier’s strategic choice on delivery time in a public procurement setting as the result of the firm’s opportunistic behavior on the optimal investment timing when production costs are uncertain. We model the supplier’s trade-off between the option value to defer the contract execution and the penalty payment in the event of delays. We also take into account the issue of penalty enforcement, which in turn depends on both the discretion of the court of law in voiding contractual clauses and the “efficiency” of the judicial system (i.e. the average length of civil trials). We test our main results on Italian public procurement data showing that the supplier’s incentive to delay is greater the higher the volatility of production costs and the lower the “efficiency” of the judicial system. We then calibrate the model using parameters that mimic the Italian scenario on public works procurement and calculate the maximum amount that a supplier is “willing to pay” (per day) to postpone the delivery date and infringe the contract provisions. Our calibration results are consistent with the theoretical model’s predictions and the empirical findings.