Order Imbalance on Ex-Dividend Days

In this article we test an alternative to the tax‐based explanation for why prices decline on ex‐dividend days by an amount less than the dividend. We examine whether there is order imbalance on cum‐ and ex‐dividend days. We find that on ex‐dividend days, there are more buys than sells in the number of orders, but not in the number of shares ordered, and the imbalance in the number of orders is limited to small orders. We find that the difference between the dividend amount and the ex‐dividend‐day price drop is significantly related to the magnitude of the buy‐sell order imbalance. We find no order imbalance on cum‐dividend days in either the number of orders or the number of shares ordered.     

Misperceptions,rigidity and welfare

In this paper we derive precise measures of the welfare costs of errors in the expectations in a simple two-period model of a small open economy. Over-optimistic expectations about future productivity lead to a misallocation of investment and consumption and, if future wages are rigid, to a fall in employment. The welfare costs of misallocations can, in close analogy with other distortions, be expressed as areas of familiar triangles. The costs of unemployment are, however, likely to be relatively more important when expectation errors are small.     

Why did Swedish regional net migration rates fall in the 1970s? The role of policy changes versus structural change, 1945–1985

The relationship between local labour market conditions and regional migration has been widely discussed within research. In Sweden, where interregional migration reached a peak in the 1960s but decreased substantially in the 1970s, the role of economic policy has been especially contended in light of the Swedish model and its official stress on regional mobility. By collecting and creating a new and unique dataset on net-migration, vacancy rates, employment and labour income by county, the pattern of interregional migration in Sweden is analysed over a period of time that also covers the early postwar period (1945–1985), allowing for a detailed evaluation of the drivers of migration at different times. My results suggest that there was no significant change over time in the responsiveness of migration to local labour market conditions. The changing patterns of regional migration were therefore more likely the result of changes in the pace and direction of structural change. I discuss the implications of these results for previous accounts of the Swedish model and of the decline in migration after 1970.     

Relationship Quality—Relationship Value and Power Balance in Business Relationships: Descriptives and Propositions

Purpose: The objective of this study is to develop understanding of the interplay between the perceptions of power balance, relationship value, and relationship quality between retail distributors and their suppliers.

Methodology: The authors applied a phenomenological approach in both qualitative and quantitative data collections and analyses. Key informants in 27 of the dominant retail distributors within 5 Norwegian industries and 50 of their most important suppliers were interviewed.

Findings: The power balance seems to favor the retail distributors. Retail distributors and suppliers tell of somewhat different characteristics pertaining to “best” and “worst” relationships relating to economic-, capability-, and integration-based values as perceived between retail distributors and their suppliers.

Research limitations/implications: The empirical findings indicate the complexity in assessing relationship quality and show a rich basis for further research, thereby contributing to knowledge and insights in characterizing relationship quality when power is asymmetrically distributed between distributors and their suppliers. However, personal interviews may reveal answers at rational, cognitive, and even emotional levels, thus complicating subjective analysis.

Practical implications: The results of the study are important for both researchers and practitioners on both sides of retail distributor–supplier relationships.

Originality/value: This study advances the work on what characterizes relationship quality in asymmetric power business relationships.     

Acquired demographics and reasons to relocate among self-initiated expatriates

Organizational expatriates, who have been assigned by their parent companies to the foreign location have been thoroughly investigated as compared to self-initiated expatriates, who themselves have decided to expatriate to work abroad. Consequently, much less is known about the latter type of expatriates. To help alleviate this dearth of research findings, data was collected from 428 self-initiated expatriate academics from 60 countries employed in 35 universities in five northern European countries. Four acquired demographic characteristics were investigated: marital status, nationality, previous expatriate experience and seniority, as well as five individual reasons to expatriate: adventure/travel, career, family, financial incentives and life change/escape. The results indicated support for the research propositions, suggesting that self-initiated expatriates' (SIEs) reasons to expatriate differ in terms of acquired personal characteristics. Implications of these findings are discussed in detail.     

Coalitional strategy-proofness and fairness

This paper considers the problem of assigning a finite number of indivisible objects, like jobs, houses, positions, etc., to the same number of individuals. There is also a divisible good (money) and the individuals consume money and one object each. The class of fair allocation rules that are strategy-proof in the strong sense that no coalition of individuals can improve the allocation for all of its members, by misrepresenting their preferences, is characterized. It turns out that given a regularity condition, the outcome of a fair and coalitionally strategy-proof allocation rule must maximize the use of money subject to upper quantity bounds determined by the allocation rule. If available money is nonnegative, objects may be jobs and the distribution of money a wage structure. If available money is negative, the formal model may reflect a multi-object auction. In both cases fairness means equilibrium, i.e., that each individual receives a most demanded object. I would like to thank Tommy Andersson, Bo Larsson, Zaifu Yang and the participants of the seminars in Copenhagen and Lund for helpful comments on this paper. I will also thank an anonymous referee for very valuable comments. Financial support from The Jan Wallander and Tom Hedelius Foundation is gratefully acknowledged.     

Catching up to the technology frontier: the dichotomy between innovation and imitation

Abstract Using data for 55 developing and developed countries, this research examines the roles of technology transfer, research intensity, educational attainment, and the ability to absorb foreign technology in explaining cross‐country differences in productivity growth. The results show that innovation is an important factor for growth in OECD countries, whereas growth in developing countries is driven by imitation. Furthermore, the interaction between educational attainment and the distance to the frontier is a significant determinant of growth in the overall sample.     

The impact of bank ownership concentration on impaired loans and capital adequacy

This paper examines the impact of bank ownership concentration on two indicators of bank riskiness, namely banks’ non-performing loans and capital adequacy. Using balance sheet information for around 500 commercial banks from more than 50 countries averaged over 2005–2007, we find that concentrated ownership (proxied by different levels of shareholding) significantly reduces a bank’s non-performing loans ratio, conditional on supervisory control and shareholders protection rights. Furthermore, ownership concentration affects the capital adequacy ratio positively conditional on shareholder protection. At low levels of shareholder protection rights and supervisory control, ownership concentration reduces bank riskiness.