Group differences in reciprocity, multiplexity and exchange: measures and application

Local forces structure social networks. One major and widely researched local force is reciprocity, often assumed to work homogeneously across actors??i.e., all actors are equally subject to the same level of force towards reciprocity. Other local forces, like multiplexity and exchange, are also often assumed to apply equally to different actors. But social theory provides us with ample arguments why such forces might be stronger in some subsets of actors than others, or why such forces might affect intergroup ties more than intragroup ties. In this paper we introduce standard measures to capture these group specific forces towards reciprocity, multiplexity, and exchange. All the measures control for differential tendencies of actors to initiate ties of various types. We also introduce a procedure by which differences in the strength of these forces between groups and subgroups can be statistically evaluated.     

A weekly diary study on the buffering role of social support in the relationship between job insecurity and employee performance

In this article, the authors used a within‐person design to examine the relationship between job insecurity and employee in‐role and extra‐role performance, and the buffering role of time‐varying work‐based support (i.e., supervisor and colleague support) in this relationship. Weekly diary data gathered over the course of three weeks from 56 employees confronted with organizational restructuring and analyzed with a hierarchical linear modeling approach showed that weekly fluctuations in job insecurity negatively predicted week‐level in‐role performance. As predicted, supervisor support moderated the intra‐individual relationship between job insecurity and in‐role performance, so that employees' in‐role performance suffered less from feeling job insecurity during weeks in which they received more support from their supervisor. No relationship between job insecurity and extra‐role performance was observed. This within‐person study contributes to research on job insecurity that has primarily focused on inter‐individual differences in job insecurity and their associations with job performance. Theoretical and practical implications for human resource management are discussed. © 2012 Wiley Periodicals, Inc.     

How Elastic is the Demand for Labour in Belgian Enterprises?Results from Firm Level Accounts Data, 1987–1994

This paper analyzes wage elasticities using a panel dataset of 2800 large Belgian firms over the period 1987–1994. We explore various functional forms and find that the short-run wage elasticity varies between –0.37 and –0.65, while the long-run elasticity is robustly estimated to be larger than 1 in absolute value. These results are striking for they are much higher than those reported in previous studies using macroeconomic time-series data. This suggests that labour costs are more important in determining the demand for labour than initially was believed.     

Financial Ratio Cross-section Dynamics: a Non-parametric Approach

This study introduces a non-parametric approach to study the cross-sectional dynamic behaviour of financial ratios and to test their convergence. A non-parametric Markov transition matrix approach is used to consider the evolution of the entire cross-section distribution. Conclusions with respect to the convergence of financial ratios are derived from the ergodic distributions. The results demonstrate high intra-distribution mobility with more persistence in the smallest and the largest size classes. Furthermore we find no convergence towards the industry average.     

Managerial discretion to delay the recognition of goodwill impairment: The role of enforcement

Under International Financial Reporting Standards, managers can use two approaches to increase the estimated fair value of goodwill in order to justify not recognizing impairment: (1) make overly optimistic valuation assumptions, and (2) increase future cash flow forecasts by inflating current cash flows. Because enforcement constrains the use of optimistic valuation assumptions, we hypothesize that enforcement influences the relative use of these two choices. We test this hypothesis by comparing a sample of 1,958 firms from 36 countries that are likely to delay recognizing goodwill impairment (suspect firms) to a sample of control firms. First, we find that firms in high‐enforcement countries use a higher discount rate to test goodwill for impairment than firms in low‐enforcement countries. We also find a more positive association between discount rate and upward cash flow management for suspect firms than for control firms. This result is consistent with suspect firms substituting optimistic valuation assumptions with inflated current cash flows. Second, we find that, relative to control firms, suspect firms exhibit higher upward cash flow management in high‐enforcement countries than in low‐enforcement countries. Third, we show that suspect firms in high‐enforcement countries are more likely to eventually impair goodwill.     

FDI spillovers in the Chinese manufacturing sector

This paper uses a new longitudinal dataset of more than 15,000 manufacturing firms to analyse the heterogeneous responses of firms to foreign direct investment in China. Domestic firms operating in sectors where foreign firms are also active have higher total factor productivity. However, the magnitude of such horizontal spillovers depends on the structure and origin of foreign ownership, the export status of firms and the characteristics of the special economic zones firms are operating in.