The influence of corporate social responsibility on investment efficiency and innovation

We examine two important channels through which corporate social responsibility (CSR) affects firm value: investment efficiency and innovation. We find that firms with higher CSR performance invest more efficiently: these firms are less prone to invest in negative net present value (NPV) projects (overinvestment) and less prone to forego positive NPV projects (underinvestment). We also find that firms with higher CSR performance generate more patents and patent citations. Mediation analysis indicates that firms with higher CSR performance are more profitable and valuable, consequences partially attributable to efficient investments and innovation. These results, robust to alternate model specifications, lend support to enlightened stakeholder theory.     

Stromspeicher im Quartier

Electricity storage is a possible flexibility option to increase the share of fluctuating electricity sources from renewable energies in the electricity system. In the past, most attention was paid to household and large storage facilities. Community storage solutions at the meso level have so far been largely neglected. It is only in the context of the change in legislation for the electricity supply of tenants that neighborhood solutions have recently been increasingly discussed.In essence, this article examines the challenges currently arising in the context of the implementation of electricity storage facilities at community level in Germany. To this end, the term “community storage” is first being discussed and outlined. Subsequently, economic-legal and socio-cultural challenges are presented and discussed as central challenges in the implementation of neighborhood storage solutions in Germany. Based on the discussion of current challenges, possible business models for the implementation and operation of district storage facilities in Germany will then be derived.     

Regulating a monopoly with universal service obligations: The role of flexible tariff schemes

This paper's purpose is to study the problem of a utility monopoly's regulator, which has a universal service goal that is binding, in the sense that there is no two-part tariff that can induce efficient consumption, self-finance the firm, and guarantee universal access at the same time.     

On improving the least squares Monte Carlo option valuation method

This paper studies various possible approaches to improving the least squares Monte Carlo option valuation method. We test different regression algorithms and suggest a variation to estimating the option continuation value, which can reduce the execution time of the algorithm by one third. We test the choice of varying polynomial families with different number of basis functions. We compare several variance reduction techniques, and find that using low discrepancy sequences can improve the accuracy up to four times. We also extend our analysis to compound and mutually exclusive options. For the latter, we propose an improved algorithm which is faster and more accurate.     

The impact of accounting restatements on CFO turnover and bonus compensation: Does securities litigation matter?

This paper examines the association between accounting restatements, class-action securities litigation and chief financial officer (CFO) turnover and bonus compensation. We identify income-decreasing earnings restatements that were the result of aggressive accounting policies, and hypothesize that these restatements will result in higher CFO turnover rates, and lower bonus compensation, especially when the firm is the target of a restatement-related class-action securities lawsuit. Our results indicate that CFO turnover and bonus compensation are affected by restatements, but only when the restatement firm is the target of a class-action suit. When we expand the analyses to consider other types of executives (e.g., CEOs and COOs), we continue to find that turnover only occurs in the presence of a class-action suit. However, bonus compensation penalties to other types of executives are not limited to litigation-related restatements.     

The urgent need for figures of merit in order to evaluate the performance of teaching and learning methodologies: constructive criticism from a scientific metrological discipline

An objective criterion for an a priori identification of which methodologies are more appropriate for dealing with the problem of teaching or learning science at a determined school level, in the case of education, are very lax or missed. Today it is difficult to objectively differentiate which is the best strategy for dealing with a determined teaching/learning problem. Objectivity can be achieved through modern logic taken from the formal sciences, such as statistics. In the case of metrological discipline such analytical chemistry, where as in education, there is a continuous development of new methodologies and the performance are always evaluated through which analytical chemist call “figures of merit”. In this article, we establish a guide for future research in education to develop objective parameters (figures of merit) to evaluate and compare different teaching and learning strategies following the example of other disciplines such as analytical chemistry.     

A risk management model for research on expatriates in hostile work environments

Abstract

Although much has been written about the causes of expatriate adjustment, more research is needed on managing the fear and anxiety experienced when expatriates work in hostile environments. The perceived risks of terrorism, kidnapping, crime, and civil unrest can have negative effects on the performance of expatriates and the organizations that employ them. While research has begun to examine expatriates’ stress in hostile environments, there is comparatively little research on the effectiveness of management practices that can reduce such stress. We integrate the expatriate adjustment, psychological contract, and risk management literature to develop a model that can guide efforts to reduce environmental stress and its negative effect on expatriate adjustment. Specifically, we build on recent work by Bader and colleagues to develop propositions to guide future research with the aim of improving the conditions of expatriates working in hostile environments.     

Why progressive redistribution can hurt the poor

Recent macroeconomic research discusses credit market imperfections as a key channel through which inequality retards growth: With convex technologies, progressive transfers increase aggregate output because marginal returns become more equalized across investment opportunities. We argue that this reasoning may not hold in general equilibrium. Since the investment functions are concave in wealth, reducing inequality increases capital demand and the interest rate. Hence, through the impact on capital costs, shifting wealth from the rich to the middle class depletes the poorest investors' access to credit. But because the poor face the highest marginal returns, the net effect on output may be negative. We find, however, that redistributing towards the bottom-end of the distribution has a clear positive impact. Finally, we discuss the implications of our theoretical findings for future empirical research.     

Monetary policy and asset prices

The purpose of this paper is study the effect of monetary policy on asset prices. We study the properties of a monetary model in which a real asset is valued for its rate of return and for its liquidity. We show that money is essential if and only if real assets are scarce, in the precise sense that their supply is not sufficient to satisfy the demand for liquidity. Our model generates a clear connection between asset prices and monetary policy. When money grows at a higher rate, inflation is higher and the return on money decreases. In equilibrium, no arbitrage amounts to equating the real return of both objects. Therefore, the price of the asset increases in order to lower its real return. This negative relationship between inflation and asset returns is in the spirit of research in finance initiated in the early 1980s.     

Global Impacts of the Automotive Supply Chain Disruption Following the Japanese Earthquake of 2011

This paper provides an input–output method to estimate worldwide economic impacts generated by supply chain disruptions. The method is used to analyse global economic effects due to the disruptions in the automotive industry that followed the Japanese earthquake and the consequent tsunami and nuclear crisis of March 2011. By combining a mixed multi-regional input–output model, the World Input–Output Database and data at the factory level, the study quantifies the economic impacts of the disruptions broken down by country and industry. The results show that the global economic effect (in terms of value added) of this disruption amounted to US$139 billion. The most affected (groups of) countries were Japan (39%), the USA (25%), China (8%) and the European Union (7%). The most strongly affected industries were transport equipment (37%), other business activities (10%), basic and fabricated metals (8%), wholesale trade (7%) and financial intermediation (4%).