Personal values and leadership effectiveness

The study sought to evaluate the personal values profile, the predominant leadership styles, the leadership effectiveness, and the relationship between personal values balance and leadership effectiveness of a group of Brazilian executives. In order to evaluate the personal values profile a closed instrument of the rank order type has been developed and applied. To identify the predominant leadership styles, as well as the leadership effectiveness of the involved executives, it has been used as an instrument available in the market. To verify the relationship between personal values balance and leadership effectiveness, the linear regression method has been used computing the linear correlation coefficient between the before mentioned variables, involving 400 executives. The study has shown that the executives have an unbalance in their personal values profile, with predominance of economic and theoretical values. Additionally the study has uncovered lack of flexibility regarding the leadership styles, presenting styles of selling and sharing ideas as dominants. The study also showed that the leadership effectiveness of the involved executives was at a moderate level. Finally, the research pointed out a high positive relationship between personal values balance and leadership effectiveness, and, furthermore, it showed a better balance of personal values, if one considered only the part of the sample involving executives working in organizations which presented better results in the three previous years (50 executives).     

On the effect of prior assumptions in Bayesian model averaging with applications to growth regression

We consider the problem of variable selection in linear regression models. Bayesian model averaging has become an important tool in empirical settings with large numbers of potential regressors and relatively limited numbers of observations. We examine the effect of a variety of prior assumptions on the inference concerning model size, posterior inclusion probabilities of regressors and on predictive performance. We illustrate these issues in the context of cross‐country growth regressions using three datasets with 41–67 potential drivers of growth and 72–93 observations. Finally, we recommend priors for use in this and related contexts. Copyright © 2009 John Wiley & Sons, Ltd.     

Comments on ‘Jointness of growth determinants’

We consider the measures of jointness proposed by Doppelhofer and Weeks ( 2009 ) and Strachan ( 2009 ) in the context of variable selection. Using the general criteria suggested in Ley and Steel ( 2007 ), we identify some shortcomings of these measures, which are illustrated with empirically relevant example cases. We argue that careful examination of the properties of any jointness measure is critical before using it to inform decisions, and favour the use of the measures proposed in Ley and Steel ( 2007 ). Copyright © 2009 John Wiley & Sons, Ltd.     

Switching regressions and activity analysis: A new approach to frontier estimation

We explore an approach to production frontier estimation based on the direct study of the primary activities in linear technologies. Technologies with smoother isoquants can be thought of as the limit of a linear technology when the number of activities grows to infinity.     

What influences continuous employee development decisions?

Organizational changes have created a need for adaptable pre-trained workers and for employees to have more “protean” career paths and be involved in self-directed ongoing development [Hall & Mirvis, 1995. The new career contract: Developing the whole person at midlife and beyond. Journal of Vocational Behavior, 47(3), 269–289]. To help understand the processes involved in this development, a model of continuous employee development is proposed. This model integrates prior work from career development, training, and education literatures and builds on it by proposing factors that affect the occurrence of future development. Research supporting the model is reviewed and specific testable propositions derived from the variables in the model are given. Recommendations for scale usage in testing the model are also provided. Finally, the novel contributions of the model are highlighted, the practical implications of the model for organizations are outlined, and the role of the education system in these processes is discussed.     

DO MARKETS PENALIZE AGENCY CONFLICTS BETWEEN CONTROLLING AND MINORITY SHAREHOLDERS? EVIDENCE FROM CHILE

Using a sample of Chilean listed firms with widespread presence of economic conglomerates that use pyramid structures to control affiliated companies, we find that firms where controlling shareholders have higher coincidence between cash and control rights are persistently more valued by the market. We carefully check that our results are not driven by omitted variable biases and control for reverse causation using a feature of Chilean Corporations Law that provides an exogenous instrument for ownership concentration.     

Joan Robinson on Population Growth

Joan Robinson’s views on population growth have received scant attention. The aim of this article is to summarize and evaluate aspects of Robinson’s perspectives on population. The population question is considered in terms of four specific topics: the problem of growth, the labor market, effective demand and economic development. The article also interprets Robinson’s approach in light of the endogenous theory of economic growth in order to more explicitly elucidate Robinson’s own statements. It is concluded that an economic interpretation of population growth based on Robinson’s approach requires some specific adaptations if it is to be feasible. It is hoped that this line of approach is useful to scholars of the history of economic thought, economic development or theory of economic growth.     

FOREIGN DIRECT INVESTMENT IN MEXICO,CRIME, AND ECONOMIC FORCES

This paper re‐examines inflows of foreign direct investment (FDI) in the 32 subnational Mexican states based on quarterly data from 2005 to 2015, which includes rising drug‐related crimes. We estimate our models using panel data methods by type of crime, state‐level indicators (real wages and electricity consumption), macroeconomic forces (the real exchange rate and interest rate), and a dummy variable for the financial crisis of 2008–2009. We employ a flexible lag‐length method and find that homicides and thefts have negative and statistically significant effects on FDI, while other crimes have no effects. Subsample work suggests higher negative effects in the most violent states. (JEL F15, F21, F23, F36)     

On the index tracking and the statistical arbitrage choosing the stocks by means of cointegration: the role of stock picking

In this paper, we propose a new methology for Index Tracking (IT) by means of cointegration which provides some significant improvements on that field. As the quality of the tracking portfolio (TP) depends highly on the stock selection procedure, we propose picking the stocks using a model selection technique based on optimizing the cointegration level of the TP and the benchmark index instead of selecting, as in previous papers the assets by ad hoc decisions. To illustrate an empirical application of these techniques we use daily closing prices in the Dow Jones Industrial Average (DJIA) index over two different periods; one period which goes from 1 January 1990 to 31 December 2001 previously used by other authors, and the bear and a turmoil period, which goes from January 2007 to May 2012, inside the current financial crisis. Using only five assets we are able to successfully track the DJIA index and our results improve the IT technique based on cointegration that chooses stocks with maximum capitalization level. We also have compared our results with a more traditional procedure based on correlation and again our results reveal superiority. The empirical illustration not only has been focused on the TP itself, but has also been extended to tracking the index with an added profitability of 5, 10, 15 or 20% and to long-short strategies, producing profitable results.