An efficient nonparametric estimator for models with nonlinear dependence

We provide a convenient econometric framework for the analysis of nonlinear dependence in financial applications. We introduce models with constrained nonparametric dependence, which specify the conditional distribution or the copula in terms of a one-dimensional functional parameter. Our approach is intermediate between standard parametric specifications (which are in general too restrictive) and the fully unrestricted approach (which suffers from the curse of dimensionality). We introduce a nonparametric estimator defined by minimizing a chi-square distance between the constrained densities in the family and an unconstrained kernel estimator of the density. We derive the nonparametric efficiency bound for linear forms and show that the minimum chi-square estimator is nonparametrically efficient for linear forms.     

Futurology as Further Ideology: Reflections on Pryor's Millennium Survey of Economists

This comment is in response to Frederic L. Pryor (2000). The Millennium Survey: How Economists View the U.S. Economy in the 21^st Century. The American Journal of Economics and Sociology. 59 (January), pp. 3-33.     

The impact of diversity and equality management on firm performance: Beyond high performance work systems

This article demonstrates that a diversity and equality management system (DEMS) contributes to firm performance beyond the effects of a traditional high‐performance work system (HPWS), which consists of bundles of work practices and policies used extensively in high‐performing firms. A DEMS typically includes diversity training and monitoring recruitment, pay, and promotion across minority or other disadvantaged groups. Our analysis of quantitative data from service and manufacturing organizations in Ireland confirms that HPWS practices are associated with positive business performance and finds specifically that DEMS practices are positively associated with higher labor productivity and workforce innovation and lower voluntary employee turnover. © 2010 Wiley Periodicals, Inc.     

The Ethical Dimensions of Decision Processes of Employees

The influence of stakeholders, organisational commitment, personal values, goals of the organisation and socio-demographic characteristics of individuals on the ethical dimension of behavioural intentions of employees in various organisations are investigated. The research results show that employees working for the public sector or in educational institutions take more ethical aspects into account than employees working in the "private" sector. The influence of stakeholders and organisational commitment do not significantly affect the ethical behaviour of employees, and only some personal values and goals of the organisation have a significant influence on ethical behaviour. The most significant explanatory factor of ethical decision making seems to be what may be called "stage in the career of the employee": "ethical" employees can be described as young, with a relatively low income, limited work experience and a low level of responsibility in the company.     

The effect of religiosity on luxury goods: The case of Chilean youths

Religion has always rejected the concept of materialism and urged people to live in simplicity and moderation. Nonetheless, reality reveals a different phenomenon. Studies on religion and materialism have found inconsistent results. We examine the effect of religion on materialism and affective attitudes towards luxury goods and the mediating effect of materialism on affective attitude towards luxury goods. We propose the idea that many religious people reject the concept of materialism, but they consider luxury goods consumption compatible with their religious beliefs. 355 university students show that youth consumers with high intrinsic religiosity possess an affective attitude towards luxury goods. The results show that consumers perceived materialism and luxury goods as two separate constructs. Religious consumers reject the concept of materialism as an attachment to worldly possessions, but they maintain their emotional affection towards luxury goods. The results have several implications for both business and religious leaders. First, from a business perspective, there are no significant differences between religious and nonreligious youth consumers, especially in their acceptance of luxury goods. Simply put, religious youth consumers love God, but they also love Gucci (i.e., luxury goods). On the other hand, if religious leaders are teaching their congregations to reject materialism, they may need to shift the focus of their teaching from materialism to the role of luxury goods in their lives and how the purchase and ownership of luxury items may not reflect the true values of their beliefs.     

Industry Effects on the Determinants of Unquoted SMEs' Capital Structure

This paper reports a study of 3500 unquoted, UK small and medium sized enterprises (SMEs). The objectives of the research were to test various hypotheses concerning the determinants of SME capital structure and to establish whether and how the relationship of these determinants to long- and short-term debt varied between industries. Long-term debt was found to be related positively to asset structure and company size and negatively to age; short-term debt was related negatively to profitability, asset structure, size and age and positively to growth. Significant variation across industries was found in most of the explanatory variables. The effect of growth on short-term debt, however, was consistent across industries whilst profitability had no effect on long-term borrowing in any industry.     

Exit Options in Corporate Finance: Liquidity versus Incentives

This paper provides a first study of the optimal design of active monitors'exit options in a problem involving a demand for liquidity and costly monitoring of the issuer. Optimal incentives to monitor the issuer may involve restricting the monitor's right to sell her claims on the firm's cash-flow early. But the monitor will then require a liquidity premium for holding such an illiquid claim. In general, therefore, there will be a trade off between incentives and liquidity. The paper highlights a fundamental complementarity between speculative monitoring in financial markets (which increases the informativeness of prices) and active monitoring inside the firm: in financial markets where price discovery is better and securities prices reflect the fundamentals of the issuer better, the incentive cost of greater liquidity may be smaller and active monitoring incentives may be preserved. The paper spells out the conditions under which more or less liquidity is warranted and applies the analysis to shed light on common exit provisions in venture capital financing.     

'High-performance' Management Practices, Working Hours and Work–Life Balance

The effects of selected high‐performance practices and working hours on work–life balance are analysed with data from national surveys of British employees in 1992 and 2000. Alongside long hours, which are a constant source of negative job‐to‐home spillover, certain ‘high‐performance’ practices have become more strongly related to negative spillover during this period. Surprisingly, dual‐earner couples are not especially liable to spillover — if anything, less so than single‐earner couples. Additionally, the presence of young children has become less important over time. Overall, the results suggest a conflict between high‐performance practices and work‐life balance policies.