Mapping global sustainability report scoring: a detailed analysis of Europe and Asia

This study maps the General Reporting Initiative (GRI) relations for a set of global enterprises. Enterprise interrelationships are built using the Mutual Information (MI) of the data reported by enterprises. From the MI topology, we describe interrelationships among the enterprises using chord diagrams to represent the inter- and intra-connectivity between geographical regions and economic sectors globally, by continent and country. Detailed maps are presented for European and Asian regions/sectors, including the relationship between Europe and Asia’s top reporting countries. Our findings reinforce previous research regarding the role of Europe as a driver of sustainability and its influence worldwide. We also determined that Spain is a major player in Europe and that Northern Europe does not have the assumed leading role mentioned in related studies. Eastern Asia is, by far, the leader of the region, and the GRI maps demonstrate the preponderant role of China in the region and the minimal role of India. MI topology maps outline the behavior of the economic sectors, for all the studied regions. Furthermore, a measure that relates the inter- to intra-connections is presented to describe the internal an external relationships among regions/sectors.     

Belonging,believing, bonding,and behaving: the relationship between religion and business ownership at the country level

This cross-country study adopts a competing theories approach in which both a value perspective and a social capital perspective are used to understand the relation between religion and a country’s business ownership rate. We distinguish among four dimensions of religion: belonging to a religious denomination, believing certain religious propositions, bonding to religious practices, and behaving in a religious manner. An empirical analysis of data from 30 OECD countries with multiple data points per country covering the period 1984–2010 suggests a positive relationship between religion and business ownership based on those dimensions that reflect the internal aspects of religiosity (i.e., believing and behaving). We do not observe a significant association for those dimensions that reflect more external aspects of religion (i.e., belonging and bonding). These results suggest that the social capital perspective prevails the value perspective, at least when internal aspects of religiosity are concerned. More generally, our study demonstrates the importance of distinguishing between different dimensions of religion when investigating the link between religion and entrepreneurship.     

Is group selection necessary? An alternative interpretation of homogeneous Middleman groups: Comments on Janet Landa’s paper

This article critiques the efforts by Janet Landa, David Sloan Wilson and others to use group selection paradigms to explain the success of homogenous middlemen groups (HMGs). It argues that group selection theory cannot explain the conflicts of interests that arise within HMGs or why they dissolve in certain occasions. Landa’s earlier explanations, which stressed the combination of genetic (kinship) and social bonds in the creation of trust and cooperation in the extension of credit and the creation of local public goods, better predicts both the strength and weaknesses of HMGs.      

Managerial Altruism and Governance in Charitable Donations

We describe a double agency problem in firms' charitable donations. When managers have better knowledge about the effectiveness of donations and their altruistic preferences, it is difficult for shareholders to tell whether charitable donations are made for a strategic purpose or due to managerial altruism. We characterize the equilibrium donations in a heterogeneous competition model. We show that managerial altruism is a substitute for the effectiveness of donations, and excess donations cannot be prevented by a compensation scheme that reduces the interest conflicts between ownership and management. Under board authorization, the board will tolerate donations with high effectiveness and low altruism as well as donations corresponding to low effectiveness and high altruism. Under a penalty scheme, the altruistic manager will increase donations, in order to increase donation's strategic benefit to compensate for the loss from the penalty. Copyright © 2017 John Wiley & Sons, Ltd.     

Differentiating ambiguity: an expository note

Ghirardato et al. J Econ Theory 118:133–173, 2004 propose a method for distinguishing between perceived ambiguity and the decision-maker’s reaction to it. They study a general class of preferences which they refer to as invariant biseparable. This class includes CEU and MEU. This note presents some examples which illustrate their results. Research supported by ESRC grant no. RES-000-22-0650. For comments and discussion we would like to thank Klaus Nehring and a seminar audience at ESEM, Vienna 2006.     

<Emphasis Type="Italic">Sylvania’s</Emphasis> Indian Precursor and Its Legacy

The starting point of this paper is a January 1977 judgment of the Indian Supreme Court, which applied the rule of reason to vertical restraints and anticipated many of the arguments of the Sylvania judgment. After summarizing the background of the Indian case, I set out the main points of similarity and difference between the two judgments, and finally assess the somewhat erratic influence of post-Sylvania antitrust thinking on Indian competition law and jurisprudence.     

The Determinants of Tying Litigation, 1961–2001

The idea that changes in Supreme Court decision rules should have measurable effects on the volume of cases litigated has a compelling plausibility, and several models of litigation predict this result. The prediction is a fragile one, however, because it implies very restrictive assumptions about the probability distributions of the cases subject to dispute. The period studied includes four Supreme Court decisions widely regarded as changing the rules and altering the level of uncertainty surrounding the legality of the anti-tying provisions of the antitrust laws. Broad trends in antitrust activity generally and changes in firm profitability statistically explain over three-quarters of the observed variation in tying litigation. Changes in legal precedent have only modest effects upon litigation.

Bank reserves: A dispute over words and classification

A prominent philosophical/legal case for requiring 100% bank reserves employs a flawed style of argument. It involves essentialism (criticized by Karl Popper and Joseph Schumpeter), persuasive definitions (identified by Charles L. Stevenson), faulty classification, and the piling up of irrelevant facts and considerations.     

Generalized spatial autocorrelation in a panel-probit model with an application to exporting in China

This paper proposes a generalized spatial panel-data probit model with spatial autocorrelation of the dependent variable, the time-invariant individual shocks, and the remainder disturbances. It proposes its estimation with a Bayesian Markov chain Monte Carlo procedure. Simulation results show that the proposed estimation method performs well in small- to medium-sized samples. This method is then applied to the analysis of export-market participation of 1451 Chinese firms between 2002 and 2006 in the prefecture-level city of Wenzhou in the province of Zhejiang. Empirical results show that two of the three forms of the hypothesized spatial autocorrelation are significant, namely the spatial lag for the dependent variable and the time-invariant firm-specific shocks, but not the time-variant shocks. Ignoring any of these significant spatial effects would lead to misspecification.     

Testing spatial regression models under nonregular conditions

In time series context, estimation and testing issues with autoregressive and moving average (ARMA) models are well understood. Similar issues in the context of spatial ARMA models for the disturbance of the regression, however, remain largely unexplored. In this paper, we discuss the problems of testing no spatial dependence in the disturbances against the alternative of spatial ARMA process incorporating the possible presence of spatial dependence in the dependent variable. The problems of conducting such a test are twofold. First, under the null hypothesis, the nuisance parameter is not identified, resulting in a singular information matrix (IM), which is a nonregular case in statistical inference. To take account of singular IM, we follow Davies (Biometrika 64(2):247–254, 1977; Biometrika 74(1):33–43, 1987) and propose a test procedure based on the supremum of the Rao score test statistic. Second, the possible presence of spatial lag dependence will have adverse effect on the performance of the test. Using the general test procedure of Bera and Yoon (Econom Theory 9:649–658, 1993) under local misspecification, we avoid the explicit estimation of the spatial autoregressive parameter. Thus our suggested tests are entirely based on ordinary least squares estimation. Tests suggested here can be viewed as a generalization of Anselin et al. (Reg Sci Urban Econ 26:77–104, 1996). We conduct Monte Carlo simulations to investigate the finite sample properties of the proposed tests. Simulation results show that our tests have good finite sample properties both in terms of size and power, compared to other tests in the literature. We also illustrate the applications of our tests through several data sets.