The influence of family ownership dispersion on debt level in privately held firms

The aim of this article is to investigate the financing behavior of privately held firms along the dispersion of family ownership. Drawing on the socio-emotional wealth perspective, we argue that debt levels are contingent on the degree of ownership dispersion among family members. Based on a sample of 2451 observations, in a 10-year time frame, our results reveal the existence of an inverted U-shaped relationship between debt level and intra-family ownership dispersion. We demonstrate that this relationship is moderated by the generational involvement that inverts it in later generations.     

Subprime Credit: The Evolution of a Market

Business Economics - About once every decade or so economists get to witness the evolution of a credit market. In the 1970s there were mutual funds, in the 1990s there were high yield bonds, and...     

Telework quality and employee well-being: Lessons learned from the COVID-19 pandemic in Italy

The coronavirus disease 2019 (COVID-19) forced organisations to implement intensive telework for many of their workers overnight. This scenario was completely new, and the emergency caused by COVID-19 created the possibility of experimenting with new ways of working with an unknown impact on employee well-being. Drawing on previous literature, we defined a model of telework quality consisting of the following four core domains: agile offices within organisations, functional remote workstations, flex-time and engaging management. We identified two high-quality and low-quality telework profiles using latent profile analysis on a data sample of 2295 insurance and financial sector employees. Demographic, occupational and procedural characteristics were associated with the probability of being in the positive or negative profiles. Our results showed that employees' emotional exhaustion and work engagement levels were related to telework quality. This study suggests that organisations need to consider the quality of telework to effectively adopt new ways of working that foster employee well-being.     

The contribution of informal learning in the integration process of immigrants into the labour market: Individual and organisational perspectives in selected sectors

In Germany and Canada, the integration of immigrants into the labour market is closely related to the various approaches towards the recognition and validation of informal learning. This paper aims to analyse the informal learning measures undertaken by immigrants as well as those offered by employers in the health and information and communication technology sectors during the labour market integration process. The study focused on nurses as well as IT project managers and programmers. The comparison focuses on the occurrence and quality of the four dimensions of the dynamic model of informal learning from an individual and an organisation perspective. The results show similarities between these two perspectives regarding the relevance of the four dimensions in the integration of immigrants into the labour market. In addition, clear differences between the two investigated sectors as well as country-specific differences appear.     

The disabling effects of enabling social policies on organisations’ human capital development practices for women

Paid parental leave and externally provided childcare are social policies designed to enhance parents' labour force participation. These policies influence not only men's and women's decisions regarding their labour market activity but also organisational decision makers' (ODMs) expectations about their employees' availability to work and thus, their willingness to invest in their employees' human capital. Using a sample of over 13,000 individuals from 19 countries, we investigate the interaction between gender and social policies on human capital development practices. In line with statistical discrimination theory, which suggests that ODMs hold different expectations about female and male productivity, we find that paid parental leave and externally provided childcare are negatively associated with the provision of human capital development for women but not for men.     

Two Wrongs Make a ‘Right’? Exploring the Ethical Calculus of Earnings Management Before Large Labor Dismissals

Journal of Business Ethics - This paper examines whether firms strategically legitimize large labor dismissals (LLDs) by performing ex-ante downward earnings management. We further assess whether...     

Stakeholder engagement is evolving: Do investors play a main role?

Stakeholder engagement, an essential component of the sustainability reporting strategy, is changing, as is the position of the different stakeholders in this evolving scenario. In this paper, we explore the effect of the pressure that a specific group of stakeholders, investors, exerts on the quality of the sustainability information disclosed. We intend to analyze if there has been a change in the role that investors play in sustainability reporting. By focusing on investors, we are paying attention to one of the less studied groups within the sustainability stakeholders. To this aim, we carry out a content analysis of the sustainability information disclosed by U.S. (shareholder-oriented country) and Spanish (stakeholder-oriented country) listed companies during the years 2013 to 2016. Our findings confirm the key role that investors play in the companies' sustainability strategies, demanding more and better sustainability information. We also find a reduction in the quality of sustainability disclosures in Spanish companies in the last year of our sample, showing a relevant change in this country that has been leading the sustainability rankings until now. The results of this paper are useful to investors and companies, as they reflect the changes on the information they demand, and for regulators, in order to create the adequate legal framework that will improve the quality of reporting. Regulators and financial agents should acknowledge this new scenario to adapt norms and actions accordingly.     

Microfinance and income inequality: New macrolevel evidence

This paper addresses the empirical question of whether microfinance has any impact on income inequality at the macrolevel. Very little research has been conducted on the relationship between the macrolevel scale of microfinance and income inequality over time in a country and across countries. Based on panel‐data techniques, with annual data from 85 countries from 2001 to 2012 and a broad theoretical framework on microfinance and inequality, we provide empirical evidence that suggests that increases in the macrolevel scale of microcredit in a country contribute to reducing income inequality within that country over time. Finally, since microfinance may be endogenous, we used instruments from the existing literature to control for this problem.     

Uncertainty about fundamental,pessimistic and overconfident traders: a piecewise-linear maps approach

Decisions in Economics and Finance - We analyze a financial market model with heterogeneous interacting agents where fundamentalists and chartists are considered. We assume that fundamentalists are...