A study of environmental policies and regulations,governance structures,and environmental performance: The role of female directors

This paper seeks to contribute to the existing business strategy and the environment literature by examining the effect of governance structures on environmental performance within a unique context of improving environmental governance, policies, regulations, and management. Specifically, we investigate the extent to which corporate board gender diversity, including the proportion, age, and level of education of female directors, affects environmental performance of Chinese publicly listed corporations. Using one of the largest Chinese data sets to date, consisting of a sample of 383 listed A‐shares from 2011 to 2015 (i.e., observations of 1,674), our findings are threefold. First, we find that the proportion and age of female directors have a positive effect on the overall corporate environmental performance. Second, our findings indicate that the proportion and age of female directors also have a positive effect on the three individual environmental performance components, namely, environmental (a) strategy, (b) implementation, and (c) disclosure. Finally, and by contrast, we do not find any evidence that suggests that the level of education of female directors has any impact on environmental performance, neither the overall environmental performance measure nor its individual components. Our findings have important implication for regulators and policymakers. Our evidence is robust to controlling for alternative measures, other governance and firm‐level control variables, and possible endogeneities. We interpret our findings within a multitheoretical framework that draws insights from agency, legitimacy, neo‐institutional, resource dependence, stakeholder, and tokenism theoretical perspectives.     

The housing market impact of state-level anti-discrimination laws, 1960–1970

This paper measures the housing-market impact of state-level anti-discrimination laws in the 1960s using household-level and census-tract data. State “fair-housing” laws were the direct antecedents of the federal Fair Housing Act of 1968, and policy variation across states facilitates estimates of the laws' impact. During the 1960s, Blacks' housing-market outcomes improved relative to Whites', and the proportion of exclusively White census tracts declined markedly, but there is little evidence that the fair-housing laws contributed to those changes. There is some evidence that Black renters may have benefited from the laws, but the bulk of the evidence suggests insignificant effects on Blacks' housing-market outcomes, the level of residential segregation, and the value of property in predominantly Black neighborhoods.     

Channels of financial market contagion

This study aims to fill a gap in the current literature by determining which channels of financial contagion are the most significant in transmitting crises between countries. Initial results, using χ² contingency tables, indicate that there is a significant relationship between contagion and the inflation rate and between contagion and financial liquidity. A simultaneous comparison of the channels is then performed using a series of best subset logit regressions. These suggest that a combination of high inflation and an emerging market classification form the most significant subset in increasing the probability of a contagious event.     

Berlin’s electricity distribution grid: an urban energy transition in a national regulatory context

Germany has set ambitious targets to transform its energy system from being based on fossil fuels and nuclear to renewable energies, requiring electricity grids to be upgraded. As a result there is significant public pressure in some German cities to exert greater local control over electricity distribution infrastructure. A case study approach was used to investigate contestations around ownership and governance of Berlin’s electricity distribution grid. Actors at the local level perceive the national institutional framework supporting liberalised energy markets as not designed to adapt electricity distribution grids to the challenges of the Energiewende (energy turn) and to be instead hampering investment, innovation and the involvement of local actors. By analysing politics of grid ownership and governance, and emerging tensions between a national regulatory framework and more locally bounded energy system visions, our study contributes to the emerging academic debate on urban energy transitions.     

The effect of cash flow forecasts on accrual quality and benchmark beating

When analysts provide forecasts of both earnings and operating cash flow, they also implicitly provide a forecast of total operating accruals. We posit that this increases the transparency and the expected costs of accrual manipulations used to manage earnings. As a consequence, we predict and find that accrual quality improves and firms’ propensity to meet or beat earnings benchmarks declines following the provision of cash flow forecasts. We also predict and find that firms turn to other benchmark-beating mechanisms, such as real activities manipulation and earnings guidance in response to the provision of cash flow forecasts.     

The Declining Contribution of Socioeconomic Disparities to the Racial Gap in Infant Mortality Rates, 1920-1970

This article examines the racial gap in infant mortality rates from 1920 to 1970. Using state-level panel data with information on income, urbanization, women's education, and physicians per capita, we can account for a large portion of the racial gap in infant mortality rates between 1920 and 1945. The educational gap between white and nonwhite women was especially important in this regard. In the postwar period, socioeconomic characteristics account for a declining portion of the racial infant mortality gap. We discuss the postwar experience in light of trends in birth weight, maternal characteristics, smoking and breast-feeding behavior, air pollution, and insurance coverage.     

Goliath Corporation: An instructional case in transfer pricing policy

This case illustrates some of the issues associated with setting firms’ transfer pricing policies. The simulation requires students to assume the roles of top management and divisional management for Goliath Corporation in negotiating transfer prices. The student playing the role of top management first selects a transfer pricing policy from four possible mechanisms: market-based, cost-based, negotiated, and dual-pricing. Given the top manager’s policy choice, divisional managers are then constrained to use that policy as they decide whether to purchase internally or externally based on their respective negotiations. In each negotiation, there is an ex ante best decision for Goliath as a whole. The case is thus useful in demonstrating how managers’ transfer price policy choices can lead to bad sourcing decisions.     

Deutsche Familienpolitik im internationalen Vergleich

Zusammenfassung  Am 1. Januar 2007 trat in Deutschland das Bundeselterngeld- und Elternzeitgesetz in Kraft. Eines der Ziele dieser Neuausrichtung der Familienpolitik ist die Erh?hung der Geburtenzahl. Um die potenzielle Wirkung des Gesetzes auf die Fertilit?t abzusch?tzen, lohnt sich der Blick auf andere westeurop?ische L?nder mit ?hnlichen familienpolitischen Modellen. Wie wirken familienpolitische Ma?nahmen in diesen L?ndern, und welche Schlüsse lassen sich daraus für die Wirkungen des deutschen Elterngeld- und Elternzeitmodells ziehen? Nora Reich, 26, Dipl.-Geographin, ist Doktorandin am Hamburgischen WeltWirtschaftsInstitut.     

THE RELATIONSHIP BETWEEN BEFORE- AND AFTER-TAX YIELDS ON FINANCIAL ASSETS

In this research, the traditional approximation that after-tax yields equal before-tax yields times one minus the tax rate is shown in general to be incorrect. The traditional relationship holds only for one-year assets and perpetuities when a single tax rate applies to both ordinary income and capital gains. For all other multiperiod assets, the correct relationship is much more complex and is a function of the statutory tax rates on ordinary income and capital gains, the holding period, the dividend growth rate for common stocks, and any premium or discount on bonds. The direction of bond price changes is related inversely to the direction of the tax rate changes, but the direction of common stock price changes is related ambiguously to the direction of tax rate changes.