The Range Adjusted Measure (RAM) in DEA: Comment

Journal of Productivity Analysis -     

Subsidios a la contratación de personas con discapacidades. Resultados de un pequeño experimento de campo

La eficacia de los subsidios a la contratación de personas con discapacidades es dudosa debido a posibles efectos de peso muerto, sustitución y señalización. Para evaluarla, los autores proponen un experimento natural basado en candidaturas de empleo que revelan o no (aleatoriamente) el derecho al subsidio del candidato. Según la tasa de convocatorias a entrevista logradas, concluyen que el subsidio es ineficaz o contraproducente para un grupo de adolescentes con su formación profesional recién terminada, pero el efecto negativo de señalización resulta mucho más débil para los clientes de un servicio de orientación laboral que contrajeron su discapacidad durante su vida activa.     

Overconfidence as a social bias: Experimental evidence

The overconfidence bias is discussed extensively in economic studies, yet fails to hold experimentally once monetary incentives and feedback are implemented. We consider overconfidence as a social bias. For a simple real effort task, we show that, individually, economic conditions effectively prevent overconfidence. By contrast, the introduction of a very basic, purely observational social setting fosters overconfident self-assessments. Additionally, observing others’ actions effectively eliminates underconfidence compared to the individual setting.     

When salespeople develop negative headquarters stereotypes: performance effects and managerial remedies

This study examines the performance implications that organizations may suffer when their salespeople develop negative stereotypes of their corporate headquarters. How such stereotypes can be remedied through managerial action is also examined. The study draws on matched data from four different sources: sales managers, salespeople, customers, and company reports. Findings indicate that negative headquarters stereotypes among salespeople are associated with poor marketing-related performance across a range of outcomes, including salespeople’s adherence to corporate strategy, their customer orientation, and their sales performance. Findings also show that negative headquarters stereotypes can be remedied through managerial action, but more so at the corporate management level than at the sales unit level.     

The role of board independence in mitigating agency problem II in Australian family firms

We investigate the impact of board independence on earnings management on a sample of family controlled firms listed on the Australian Securities Exchange (ASX). Using panel data over the period 2000–2004, we find evidence of earnings management among family controlled firms in Australia, an environment of high investor protection and private benefits of control. Findings show that a higher proportion of independent directors on boards is effective in reducing earnings management, thereby mitigating agency problems associated with entrenchment and expropriation in family firms. We also find that managers of family firms are less aggressive in managing earnings via discretionary long-term accruals compared to non-family firms.     

Are Foreign Institutional Investors Good for Emerging Markets?

Portfolio flows channelled via institutional investors were the most dynamic capital flows to emerging markets in the 1990s. We use an asymmetric information framework to derive five propositions about the effects of the activities of foreign institutional investors on emerging markets. We confront these propositions with existing empirical evidence on the financial sector of emerging markets and conclude that institutional investors do not automatically generate benefits for emerging markets. Therefore, capital account and financial market liberalisation needs to be accompanied by careful regulation.