Speculative trading preferences of retail investor birth cohorts

This study examines the effect of investor birth cohorts on speculative investment preferences. Using retail trading and portfolio data from Finland over two decades, we find that individuals who have experienced desirable macro-economic and social conditions during adolescence, such as high gross domestic product (GDP) growth and low divorce rates, are more likely to invest in speculative stocks. A positive relation is found between the proportion of speculative-prone cohorts in the stock market and returns of stocks of lottery nature. We provide new evidence on the adverse effect of speculative investments, finding that cohorts with higher speculative investment weights on their portfolios achieve lower absolute and risk-adjusted returns. We also provide support for earlier research that identifies a positive association between recent portfolio performance and the propensity to invest in speculative stocks.     

A Panel CUSUM Test of the Null of Cointegration*

This paper proposes a simple residual‐based panel CUSUM test of the null hypothesis of cointegration. The test has a limiting normal distribution that is free of nuisance parameters, it is robust to heteroskedasticity and it allows for mixtures of cointegrated and spurious alternatives. Our Monte Carlo results suggest that the test has small‐size distortions and reasonable power. In our empirical application to international R&D spillovers, we present evidence suggesting that total factor productivity is heterogeneously cointegrated with foreign and domestic R&D capital stocks.     

Free Immigration and Welfare Access: The Swedish Experience

With the expansion of the European Union from 15 to 25 member countries in 2004, fears of migrants’ excessive welfare use led 14 of the 15 older member countries to impose restrictions on the access of citizens of the new member countries – the A10 countries – to their welfare systems. Sweden was the only exception. This paper evaluates the net contribution of post‐enlargement A10 immigrants to Swedish public finances in 2007. On average, A10 immigrants generate less public revenue than the population on average, but they also cost less. The net result is a zero or small positive net contribution. In particular, A10 immigrants do not benefit more from basic social welfare than the population on average. The discounted net contribution over the A10 immigrants’ lifetimes may be positive or negative depending, for example, on their income assimilation rates and on future real interest rates.     

CEO Pay and the Argument from Peer Comparison

Journal of Business Ethics - Chief executive officers (CEOs) are typically paid great amounts of money in wages and bonuses by commercial companies. This is sometimes defended with an argument from...     

A conceptual framework for misfit technology commercialization

The emerging literature on outbound open innovation has highlighted innovation processes, which presuppose active outward technology transfer to increase firm profits. To contribute to this discourse, our paper goes beyond the emphasis on core-related technologies and knowledge that currently dominates the technology management literature and develops the novel concept of misfit technology. This concept captures technologies that are not aligned with a focal firm's current knowledge base and/or business model, but which may still be of great value to the firm if alternative commercialization options are considered. By developing a framework that acknowledges (1) Sources of misfit technology, (2) Environmental uncertainty, (3) Organizational slack, (4) Industry appropriability regime and (5) Technological complexity, we theorize on how different modes of commercialization relate to misfit technology commercialization success. The paper is conceptual and is presented with the purpose to spawn further research on this important topic, but simultaneously touches upon the issues of utmost relevance to R&D management practice.     

Injury rates and risk-factors associated with eventing: a total cohort study of injury events among adult Swedish eventing athletes

The aim of this study was to examine injury events and risk-factors among Swedish adult eventing athletes. A cross-sectional study design with retrospective recording of 1-year sports-specific exposure and injury data was used. The invited study population consisted of all members of the Swedish Equestrian Federation with eventing as their primary discipline (n = 513). The participation rate was 70.0%. The total 1-year injury prevalence was 26.6%; the specific 1-year prevalence of traumatic injury was 19.3% and of overuse injury 10.9%. The incidence of traumatic injury events was 0.54 injury events/1000 eventing hours (95% confidence interval (CI), 0.35-0.73 injury events/1000 eventing hours) for novices and 0.35 injury events/1000 eventing hours for qualified riders (95% CI, 0.21-0.49 injury events/1000 eventing hours). A total of 27.9% of the traumatic injury events led to severe injuries (causing more than 3 weeks absence from riding). Attitude to risk-taking was the only factor predicting an athlete becoming injured (p = 0.023), and qualification level was the only risk factor for additional injuries among injured riders (p = 0.003). Our results suggest that injury prevention programs in eventing should also give attention to overuse injuries and that care should be taken when eventing athletes are licensed into higher qualification groups.     

Testing slope homogeneity in large panels with serial correlation

Pesaran and Yamagata (Pesaran, M.H., Yamagata, T., Testing slope homogeneity in large panels, Journal of Econometrics 142, 50–93, 2008) propose a test for slope homogeneity in large panels, which has become very popular in the literature. However, the test cannot deal with the practically relevant case of heteroskedastic and/serially correlated errors. The present note proposes a generalized test that accommodates both features.     

Non-linear relationship between industrial service offering and sales growth: The moderating role of network capabilities

In an effort to approach the mixed findings regarding the relationship between a firm's industrial service offering and its performance, this study analyzes the impact of the industrial service offering on sales growth and the moderating role of network capabilities. The proposed research model is tested based on data from 91 Finnish manufacturing firms. Our results demonstrate a non-linear effect of the service offering on sales growth. We also find that network capabilities enhance the effect of the service offering on sales growth. For managers of manufacturing firms, the results imply that the active development of a comprehensive service offering should be implemented in conjunction with the development of organizational capabilities, such as network capabilities, to create value and promote improved performance.     

Entrepreneurial orientation and network board diversity in network organizations

This study extends the concept of entrepreneurial orientation (EO) to the network level to investigate how diversity among officers serving on network organization boards affects network-level entrepreneurial orientation (NEO). Using data from 53 strategic network organizations across five years, we found that insider/outsider and functional diversity among network board members promotes NEO. The results also demonstrate that board group tenure moderates the influence of diversity in opposite ways. The impact of board insider/outsider diversity is stronger in networks in which board members lack long tenure. On the contrary, the effect of functional diversity on network entrepreneurial orientation is stronger in network organizations with tenured boards.     

Technological arbitrage opportunities and interindustry differences in entry rates

In this study we investigate the relationship between technological arbitrage opportunities and entry rates in twenty-six industries over the course of five years. Arbitrage opportunities are shown to be a positive and significant predictor of business entry rates. Such positive effect is weakened in industries with strong appropriability regime including effective patents, secrecy, and lead time. Adding arbitrage opportunities to the typical determinants of entrepreneurship such as innovative opportunities significantly increases predictive power of the regression models.