Accounting Scandals in IPO Firms: Do Underwriters and VCs Help?

We examine whether underwriter reputation, venture capitalist (VC) backing, and VC reputation are related to the probability that a newly public firm has serious accounting problems. Using a novel data set, we find that the probability of restatement by an initial public offering (IPO) firm is positively related to underwriter reputation and negatively related to VC backing, VC reputation, and VC maturity. Our results do not appear to be driven by the endogeneity of underwriter reputation or VC backing. Our findings suggest that while VCs positively influence the financial reporting quality of IPO firms, underwriters’ concerns about revenue generation outweigh their concerns about reputation.     

The trade union response to agency labour in Sweden

This article explores the possibilities for temporary agency workers to gain union representation at workplace level. Using Heery's classification of four different union responses to agency work—Exclusion, Regulation, Replacement and Engagement—we found that, even though the union wishes to represent agency workers, there are institutional conditions obstructing them from succeeding.     

Cultural Cooperation,Institution Building and Metropolitan Governance in Decentralizing Indonesia

The institutional turn in metropolitan governance has been influenced to a considerable degree by a rational choice approach, which views metropolitan governance as essentially created by local actors to reduce the transaction costs of inter‐jurisdictional public‐service provision. Another influential theoretical route follows a historical approach, which emphasizes the role of the state structure in producing formal institutions to enable governance at the regional level. Both approaches tend to be formalistic, simplistic and deterministic in nature, thus neglecting the dynamic interactions between the actors and their more informal, intangible, yet more basic, legitimate institutions, such as culture. This article examines the dynamic role of culture in metropolitan governance building in the context of decentralizing Indonesia. The analysis focuses on ‘best‐practice’ experiences of metropolitan cooperation in greater Yogyakarta, where three neighbouring local governments known as Kartamantul have collaboratively performed cross‐border infrastructure development to deal with the consequences of extended urbanization. We draw on sociological institutionalism to argue that building this metropolitan cooperation has its roots in the capacity of the actors to use and mobilize culture as a resource for collaborative action.     

Nonlinear taxation and punishment

The paper analyzes nonlinear tax schedules that are identified by maximizing a welfare function represented by a weighted summation of net utilities over a set of n  ≥ 3 differing individuals. It is demonstrated that some of the feasible and Pareto efficient tax schedules that satisfy self-selection can only be identified by maximizing a welfare function of the above form if (at least) one of the individuals in the economy is assigned a negative weight.     

New Keynesian perspectives on labor market dynamics

We find that demand shocks play an important role for business-cycle fluctuations in unemployment and job vacancies. The reason is that those shocks give a strong incentive to demand-constrained firms to adjust production and thereby labor input. Furthermore we argue that whether real wage rigidity à la Hall [2005. Employment fluctuations with equilibrium wage stickiness. American Economic Review 95, 50–65] helps explain the remaining part of the unemployment volatility puzzle depends critically on assumptions regarding the form of the wage bargain between firms and workers. Real wage rigidity tends to generate volatility in employment only in the case in which hours are chosen efficiently. If, on the other hand, the real wage is allowed to affect firms's choices of hours directly, the feature of real wage rigidity loses its ability to increase employment volatility.     

Effects of the Euro Changeover on Consumer Behaviour: Introduction to the Special Issue

This paper introduces the special issue “Effects of the euro changeover on consumer behaviour” by briefly reviewing the contents of the included papers. The introduction follows the organization of the papers in three sections each focusing on a common set of issues. In the first section, research revealing the perceived and actual problems consumers face after the euro changeover is described. Research illuminating learning and adaptation to the euro changeover is the focus of the second section. A special problem is the misperception of inflation after the euro changeover. Research on this problem is addressed in the third section. In a final section, the main findings and their policy implications are summarized.     

Inflation and labor market dynamics revisited

We demonstrate that the presence of an empirically plausible labor adjustment decision at the firm level rationalizes strategic complementarities in price-setting which help explain inflation dynamics. Those strategic complementarities are typically assumed away in the related existing literature. This motivates our revisiting of inflation and labor market dynamics.     

Belief-value structures as determinants of consumer behaviour: A study of housing preferences and choices

The role of consumers' belief-value structures was investigated in the context of residential preferences and simulated residential choices by means of a questionnaire answered by 36 adult Swedish respondents. Three models with different assumptions concerning how beliefs about the attainment of life values affect consumer behaviour were used for predicting preferences for and choices among hypothetical housing alternatives. A model assuming that the evaluation of a given alternative is determined by a weighted sum of the evaluations of the life values which it is believed to lead to, without specifying how individual attributes contribute to this value-fulfillment, was found to be the most successful one in predicting both preference ratings and choices. The results further suggested that whereas the age of the respondents and the format of the information about attributes may have an effect on belief-value structures, the ability to use such structures in order to predict preferences and choices may not be much affected by these factors. The present approach was compared with the laddering technique, and it was suggested that the two methods may be fruitfully combined in the study of consumer attitudes and behaviour.     

Persistence of product innovation: comparing breakthrough and incremental product innovation

In this paper we examine whether and to what extent breakthrough and incremental product innovation is persistent at the firm level. Drawing on a panel database created from the Community Innovation Survey (CIS) we find that lagged breakthrough product innovation ‘new to the market’, has a significant and positive influence on firms’ ability to develop current breakthrough innovation, while this is not the case for incremental-product innovation ‘only new to the firm’. Our findings show that the dynamics of innovation persistence differ across types of (product) innovations.