The causal effect of board size in the performance of small and medium-sized firms

Empirical studies of large publicly traded firms have shown a robust negative relationship between board size and firm performance. The evidence on small and medium-sized firms is less clear; we show that existing work has been incomplete in analyzing the causal relationship due to weak identification strategies. Using a rich data set of almost 7000 closely held corporations we provide a causal analysis of board size effects on firm performance: We use a novel instrument given by the number of children of the chief executive officer (CEO) of the firms. First, we find a strong positive correlation between family size and board size and show this correlation to be driven by firms where the CEO’s relatives serve on the board. Second, we find empirical evidence of a small adverse board size effect driven by the minority of small and medium-sized firms that are characterized by having comparatively large boards of six or more members.     

Project appraisal in development assistance

The debate on development theory and changes in planning theory have led, in the last decade, to extensive changes in project evaluation methodology. Hans Lembke outlines these changes and discusses their relevance for the decision-making process.     

Risk Sharing and Efficiency Implications of Progressive Pension Arrangements*

This paper aims to quantify the welfare effects of progressive pension arrangements in Germany. Starting from a purely contribution‐related benefit system, we introduce basic allowances for contributions and a flat benefit fraction. Since our overlapping‐generations model takes into account variable labor supply, borrowing constraints as well as stochastic income risk, we can compare the labor supply, the liquidity and the insurance effects of the policy reform. Our simulations indicate that it would be optimal to introduce a flat benefit share of 50 percent and a basic allowance that amounts to 30 percent of average income. Such a reform would yield an aggregate efficiency gain of 3.3 percent of resources.     

Differences in the degree of unionization as a source of comparative advantage in open economies

This paper considers two integrated countries that differ only in their labour markets: one country hosts unions, whereas the other one pays competitive wages. These institutional differences are a source of comparative advantage, which crucially impact inter‐industry trade and welfare in the open economy. In this setting, deunionization exerts opposing welfare effects in the two economies. Increasing product market competition is beneficial for the unionized country and detrimental for its trading partner. Finally, we conduct an empirical analysis that provides strong support for the main hypotheses of our theoretical model.     

The Internationalization of Small and Medium-Sized Firms

This paper contributes to the existing research by integrating the notions of organizational learning and entrepreneurial orientation into the body of international entrepreneurship. Our primary framework combines learning theory and the new venture theory of internationalization to study the extent to which small and medium-sized companies engage in international activities. We found that the firms’ international learning effort and entrepreneurial orientation are positively associated with internationalization intent whereas domestic learning effort is negatively related with internationalization intent. Overall, our results suggest (1) that intensive knowledge renewal and exploitation regarding foreign markets and the internationalization process itself may increase internationalization by affecting the perceptions of opportunities offered by further international expansion, and (2) that firms with an entrepreneurial mindset may be more likely to develop a long-term, substantial presence in the international arena, compared to firms that are more reactive or conservative.     

Marketing messbar machen — die wirkung von empfehlungsnetzwerken auf die marketing performance

Netzwerke und Kooperationen sind entscheidende Instrumente zur Steigerung des Unternehmenswertes. Bisher haben sich Ans?tze hier auf die Unternehmensseite (Wertsch?pfungs-, Entwicklungsund Vertriebsnetzwerke) konzentriert. In jüngster Zeit rücken auch Netzwerke auf Nachfragerseite etwa in Form von Kommunikations- und Empfehlungsnetzwerken zunehmend in den Blickpunkt. Solche sozialen Netzwerke k?nnen gerade durch Marketingma?nahmen initiiert und gestaltet werden. Sie sind zentrale Stellhebel zur Steigerung der Marketing Performance und somit zur Legitimierung der Marketingfunktion.     

How venture capitalists respond to unmet expectations: The role of social environment

In this paper, we seek to explain venture capitalists' reactions to disappointments caused by entrepreneurs. Our basic assumption is that venture capitalists' social environment, defined as exposure to venture capital and business communities, will influence their responses to problematic situations. The results of our study suggest that venture capitalists with strong ties to their colleagues and with managerial experience are more inclined to use active and constructive approaches than venture capitalists with a lesser exposure to the venture capital and business communities.