Game hoarding in Europe: stock-price consequences of local bias?

Local bias within a country and between countries is well established in the empirical literature. However, the underlying reasons are less well established. In a simple supply and demand framework, Hong, Kubik, and Stein (hereafter HKS) [2008. The only game in town: Stock-price consequences of local bias. Journal of Financial Economics 90, no. 1: 20–37.] find an ‘only-game-in-town’ effect in the USA – the stock price in a region decreases in the ratio of aggregate book value of listed firms to the aggregate personal income (‘RATIO’). We first replicate the HKS (2008) study using European data and find an opposite effect, a ‘game-hoarding’ effect. We then investigate the underlying factors of RATIO and find that after controlling for differences in origin of law, investor rights, corruption and Euro adoption, neither a game-hoarding effect nor an only-game-in-town effect is strongly supported in the European case. The results are important in understanding the concept of local bias in a cross-country framework.     

Human capital and SME internationalization: a structural equation modeling study

This study uses a structural equation modeling technique to predict the internationalization of small and medium‐sized enterprises (SMEs) from the entrepreneur's human capital (dimensions: international business skills, international orientation, environmental perception, and management know‐how). While international orientation and environmental risk perception predicted internationalization, international business skills and management know‐how did not. The implications of these findings for research and practice are discussed. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.     

Non‐farm employment and incomes in rural Cambodia

Rural households in Cambodia derive income from various sources. On average, non‐farm income accounts for more than 60 per cent of total household income. However, the average masks the substantial heterogeneity of non‐farm employment. We account for this heterogeneity and find significant differences in non‐farm participation and incomes across segments of the income distribution. The poor and the less well‐educated participate less in the non‐farm sector, and when they do work in the non‐farm sector, they work in low‐paid jobs and earn lower incomes. Accounting for endogeneity and sample selection issues, we conduct an empirical enquiry of the determinants of participation in non‐farm activities and of non‐farm incomes. As expected, we find that education plays a major role in accessing more remunerative non‐farm employment. Interestingly, we do not find evidence that women, ethnic minorities, or the land‐poor are disadvantaged in access to the non‐farm sector. Geographical location plays a role in access to and income from non‐farm employment, indicating the importance of local context.     

COVID-19 and pro-sociality: How do donors respond to local pandemic severity,increased salience,and media coverage?

Experimental Economics - Has the COVID-19 pandemic affected pro-sociality among individuals? After the onset of the pandemic, many charitable appeals were updated to include a reference to...