Takeover duration and negotiation process

We study the relations between takeover negotiations duration, competition and learning, focusing on the private phase of bidder-initiated transactions. While the negotiation goes on, both parties learn about true deal synergies. At any moment, rival bidders can show up and compete for the target. Using a discrete-time finite-horizon dynamic programming approach, we derive the equilibrium relations between the negotiation duration, the pressure of potential competition and the learning process. Next, we perform a calibration exercise on a large sample of merger negotiations with hand-collected data from the Securities and Exchange Commission filings. Our results provide evidence of a very competitive M&A (Mergers and acquisitions) market.     

LATE CAREER JOB LOSS AND THE DECISION TO RETIRE

This article provides an empirical analysis of the effect of involuntary job loss on the lifetime income and labor supply of older workers. I develop and estimate a dynamic programming model of retirement with savings, costly job search, and exogenous layoffs. The average cost of job loss is equivalent to one year of predisplacement earnings, 70% due to the wage reduction and 30% to the search frictions. Displaced workers on average retire 14 months earlier. Workers who approached retirement during the Great Recession will work approximately five months longer in response to the contemporaneous financial and labor market shocks.     

Should Mobile Marketers Collect Data Other Than Geo‐Location?*

We take today's mobile marketing data landscape as a starting point and consider a duopoly model of third‐degree price discrimination in which firms can complement geo‐location information with data on consumer flexibility of varying quality. We show that, depending on consumer heterogeneity, higher‐quality flexibility data affect profits according to three different patterns. In equilibrium, both firms tend to acquire data if the data are of high quality, while only one acquires data if the data quality is low. Firms are likely to gain from additional data if consumers have similar preferences and/or when data are precise. Although social welfare (weakly) improves, consumers can be harmed.     

Property rights in land and output growth in Russia

This paper tests whether the implementation of a key market‐oriented reform in post‐Soviet Russia, property rights in land, proxied by the percent of privatized land by region, affected the pace of sub‐national economic growth during two unprecedented expansion periods: 2001–2008 and 2010–2014. Individuals gained the Constitutional right to own land in 1993, but implementation was stalled. The pace of land privatization can be explained by arguably exogenous factors such as distance to Moscow, as well as climate and also regional political culture, proxied by concentration of votes in the 2004 presidential election. We show that this rate of land privatization in Russia's regions was significantly associated with output growth in 2010–2014, confirming the policy importance of this measure for developing economies. Regions where private holdings expanded most rapidly with the enforcement of property rights in land, gained a competitive advantage in the growth process through increased investment in fixed assets and private consumption.     

Sustainable development of global entrepreneurship: infrastructure and perspectives

Development of the modern global entrepreneurship is one of the most perspective and promising means of overcoming the consequences of the global economic crisis, as well as prevention of future crises of economic systems, as it ensures full level of optimization of production and distribution processes. The purpose of the article is to determine perspectives of sustainable development of the global entrepreneurship. For determining the level of sustainability of development of the modern global entrepreneurship, the authors use the methods of statistical analysis of time rows (method of horizontal and trend analysis). The authors perform a complex analysis of dynamics of development of global companies and performed evaluation of their sustainability. Also, the necessity for changing the model of managing the development of modern global entrepreneurship for increasing its sustainability is substantiated. As a result, it is concluded that modern global entrepreneurship is developing in the unstable way, and practical recommendations are offered for solving this problem. A perspective model of sustainable development of the modern global entrepreneurship is developed and presented. A certain limitation of the results of the performed research is the framework character of the offered recommendations.

     

Investigation of causality based on complex use of statistical methods (case study of social research)

The article deals with the problem of revealing cause–effect relations in the social research by a complex of statistical methods. The ways for solving the problem for experimental and non-experimental data are regarded. In the research the role of the statistical methods in formation of causal relation hypotheses is revealed and the methods of hypotheses verification in conditions of experiment or upon latent structure modelling are discussed. The possibilities of the use of the factor analysis and the analysis of variance in revealing cause–effect relations are also considered. Special attention is paid to the interpretation of the analysis results depending on the character of the empirical data and the conditions they were obtained in. The approaches to causal relations revealing based on the development of the schemes of the complex analysis of the empirical data by the statistical methods aimed at investigation of the cause and effect relation in a long-term research are suggested. We take into account the hierarchical structure of the schemes reflecting the structure of the subject of cognition, the specificity of which requires the use of “rigid” and “flexible” models in combination. Its variant could be the method of structural equation modelling. The article gives an example of the research of causal relations in the assessment of the quality of education services in higher institution. Each stage of the assessment is provided with building of certain “rigid” or “flexible” mathematical models. Their combination allows using the obtained quality parameters as an instrument of regulation of interaction between education service providers and clients.     

Where Grass Has No Roots: The Concept of ‘Shared Strategic Communication’ as an Answer to Unethical Astroturf Lobbying

As researchers pursue connections between strategic communication and management, they need to critique practices to develop norms that increase strategic communication’s long-term contribution to society. Norms of strategic communication are shaped by socially constructed standards of corporate social responsibility (CSR) and guide how strategic communication fosters organization-public relationships (OPR). Such norms are particularly important regarding deliberative strategic communication, which uses political CSR to guide corporations’ political role. Although principles of OPR and political CSR should foster more ethical strategic communication, some practices weaken such standards. To make that case, this article (1) reviews the historical foundations of deliberative discourse, (2) examines principles of OPR and political CSR, and (3) applies normative principles of deliberative discourse (4) to critique three cases of strategic political communication, known as astroturf lobbying, a deceptive lobbying practice that undermines and fakes grassroots movements. We conclude by integrating the findings into theory building that shifts CSR outcomes from advantaging individual organizations adding value to society. This theme uses ‘creating shared value’ to advocate shared strategic communication. This notion includes the normative claims of political CSR (open discourse, participation, transparency, accountability) to arrive at shared strategic communication that supports the ‘good’ organization and society simultaneously.     

Fixed effects instrumental variables estimation in correlated random coefficient panel data models

We provide a set of conditions sufficient for consistency of a general class of fixed effects instrumental variables (FE-IV) estimators in the context of a correlated random coefficient panel data model, where one ignores the presence of individual-specific slopes. We discuss cases where the assumptions are met and violated. Monte Carlo simulations verify that the FE-IV estimator of the population averaged effect performs notably better than other standard estimators, provided a full set of period dummies is included. We also propose a simple test of selection bias in unbalanced panels when we suspect the slopes may vary by individual.