The raw material basis of global value chains: allocating environmental responsibility based on value generation

A new approach to allocate environmental responsibility, the ‘value added-based responsibility’ allocation, is presented in this article. This metric allocates total environmental pressures occurring along an international supply chain to the participating sectors and countries according to the share of value added they generate within that specific supply chain. We show that – due to their position in global value chains – certain sectors (e.g. services) and countries (e.g. Germany) receive significantly greater responsibility compared to other allocation approaches. This adds a new perspective to the discussions concerning a fair distribution of mitigation costs among nations, companies and consumers.     

Visual displays: analytical study and applications to graphs and real data

Principal axis methods such as principal component analysis (PCA) and correspondence analysis (CA) are useful for identifying structures in data through interesting planar graphic displays. However, some kinds of data sets can be dealt alternatively with PCA or CA. This paper focuses on methods, such as PCA and CA, and on visual displays. Our aim is to illustrate the implications for a potential user of selecting either method, and its advantages and disadvantages, from an applied point of view. This is a matter covered broadly in textbooks and elsewhere considering theoretical arguments. Our purpose is to contribute to the comparison between these methods, over the same data set, in order to illustrate them for the practitioner. In the first part of this paper we present a novel analytical study of a binary matrix associated with a non-oriented axis-symmetric graph and show that CA outperforms standardized PCA for the reconstitution and visualization of such kind of graphs. In the second part we present a case using real data dealing with the distribution of employees in different economic sectors for the countries of the European Union, analyzed by means of standardized PCA and two-way CA, in order to see the differences between the two methods in practice.     

False Discoveries und Fehlinterpretationen wissenschaftlicher Ergebnisse

High-quality science communication to the public depends to a large extent on the way research findings are translated into comprehensible language and common speech. In this communicative process, a reasonable evaluation of the trustworthiness of empirical findings, based on an adequate interpretation of statistical analyses, is absolutely crucial. This paper’s authors argue that the credibility of science is jeopardised by two compromising developments within science itself: on the one hand, an inflation of ostensible empirical evidence related to misuses and misinterpretations of the concept of statistical significance, and, on the other, a sensationalist overvaluation of the results of single studies instead of an adequate representation of the available body of evidence in a given scientific field.     

ASSESSING THE EFFECT OF PUBLIC SUBSIDIES ON FIRM R&D INVESTMENT: A SURVEY

This survey examines the empirical literature on the relationship between public R&D subsidies and private R&D investment over the past five decades. The survey reveals a considerable heterogeneity of empirical results that cannot be explained fully by methodological issues. We aim to provide further explanations of the possible causes of that heterogeneity. In particular, we emphasise a set of issues that, in our view, are critical to understanding the potential effect of public R&D subsidies on private R&D spending. Special attention is paid to the dynamic aspects and composition of firm R&D, the constraints faced by the firm (such as financial constraints), and the amount and source of public subsidies. None of these issues have been investigated in depth. We formulate a set of research assumptions to guide future empirical research in this field.     

Does expenditure in public governance guarantee less corruption? Non-linearities and complementarities of the rule of law

Corruption is an endemic societal problem with profound implications in the development of nations. In combating this issue, cross-national evidence supporting the effectiveness of the rule of law seems at odds with poorly realized outcomes from reforms inspired in the academic literature. This paper provides an explanation for such contradiction. By building a computational approach, we develop three methodological novelties into the empirical study of corruption: (1) modeling government expenditure as a more adequate intervention variable than traditional indicators, (2) generating large within-country variation by means of bottom-up simulations (instead of cross-national data pooling), and (2) accounting for all possible interactions between covariates through a spillover network. Our estimates suggest that, the least developed a country is, the more difficult it is to find the right combination of policies that lead to reductions in corruption. We characterize this difficulty through a rugged landscape that governments navigate when changing the total budget size and the relative expenditure towards the rule of law. Importantly our method helps identifying the—country-specific—policy issues that complement the rule of law in the fight against corruption.

     

Bridging the gap: How sustainable development can help companies create shareholder value and improve financial performance

This study examines the effect of integrating sustainability into corporate strategy on various aspects of shareholder value creation and financial performance in the British capital market. The employed method is based on the content analysis of corporate disclosures and a new technique for assessing the adoption of the corporate sustainability concept (embracing the environmental, social, and financial aspects of a company's policies at the same time). Using extensive data of FTSE 350 firms covering the years 2006–2012, 65 companies were selected as meeting corporate sustainability criteria. For the above period, we find that these firms were characterized by higher financial risk exposure, lower asset growth rates, lower BV/MV ratios, lower EVA ratios, and higher MVA ratios. Such relations were generally present among different size and industry groupings. The results support the thesis that firms that incorporate sustainability issues into their business operations are better able to leverage their resources toward stronger financial performance and shareholder value creation than other companies. The paper contributes to the literature by offering a more holistic approach to corporate sustainable performance measurement and shedding additional light on its relation to financial performance in the context of the recent global financial crisis and its direct aftermath.     

An Alternative Approach to the Measurement of Emotional Attachment

Emotional attachment (EA)—the emotional bond connecting an individual with a specific target—has been identified as an important construct within the marketing domain. Despite all the research, there is no consensus on how the construct should be measured. A major factor contributing to this confusion is that current definitions and, consequently, scales of EA focus on describing reactions toward specific referents of attachment rather than on capturing the extent of emotion an individual feels; hence, hindering construct validity. In this article, the authors scrutinized the concept validity of EA. After defining the construct, scale development procedures were followed to propose an alternative one‐dimensional scale that reflects the abstract nature of EA. Three studies support the scale's reliability as well as the discriminant, convergent, criterion, and nomological validity of the measure. The studies tested the scale under different marketing contexts. Moreover, by employing the new measure, the findings showed that EA and self‐concept maintenance (SCM) are related, yet different constructs. Specifically, the results showed that these constructs interact to predict willingness to pay (WTP) for a brand such that when SCM is low, WTP is predicted by EA. However, when self‐concept is high, the effect of EA on WTP is not that strong. This new scale will help researchers extend research on EA to a broader set of contexts, explore the relationship between EA and related constructs, develop nomological networks, and prevent the confounding of terms.     

Testing for the bivariate Poisson distribution

This paper studies goodness-of-fit tests for the bivariate Poisson distribution. Specifically, we propose and study several Cramér–von Mises type tests based on the empirical probability generating function. They are consistent against fixed alternatives for adequate choices of the weight function involved in their definition. They are also able to detect local alternatives converging to the null at a certain rate. The bootstrap can be used to consistently estimate the null distribution of the test statistics. A simulation study investigates the goodness of the bootstrap approximation and compares their powers for finite sample sizes. Extensions for testing goodness-of-fit for the multivariate Poisson distribution are also discussed.