Distance and Border Effects on Price Transmission: A Meta‐analysis

Using price transmission estimates for 1,189 cereal market pairs extracted from 57 published studies in a meta‐analysis, we examine whether geographic distance and separation by an international border affects the strength and speed of price transmission. Our findings indicate that a border reduces the likelihood that two cereal prices will be cointegrated by 23%, and each additional 1,000 km of distance reduces the probability of cointegration by 7%. The speed of price transmission is on average 13 percentage points per period faster between prices that are located within the same country compared with cross‐border price pairs. Our meta‐analysis also indicates that increasing distance strongly reduces the speed of price transmission on domestic markets, but that the effect of distance on the speed of transmission is considerably weaker for trade over longer international distances. Overall, these results confirm expectations and complement the findings in the trade literature that borders and distance affect trade flows and price dispersion.     

How Does the Franchisor's Choice of Different Control Mechanisms Affect Franchisees’ and Employee-Managers’ Satisfaction?

Satisfaction of franchisees and employee-managers affects the overall performance of a franchise system. We argue that different actors in the same franchise system need to be treated in different ways. The franchisor's choice of control mechanisms affects the satisfaction of franchisees and employee-managers differently. To our knowledge this is the first study that gathers primary data from franchisees and employee-managers in the same franchise system at the store level with almost identical questionnaires. We show based on data from the largest German franchise system that outcome control leads to higher satisfaction among franchisees and employee-managers, while behavior control enhances employee-managers’ satisfaction. Thereby, outcome control leads to higher satisfaction among more experienced franchisees, while behavior control enhances both highly and lowly experienced employee-managers’ satisfaction. Our results suggest that franchisors face a dilemma: On the one hand, behavior control is associated with high costs and has no impact on franchisees’ satisfaction at all. On the other hand, it might still be necessary to prevent franchisees from behaving opportunistically.     

Should I stay,or should I go? – How fund dynamics influence venture capital exit decisions

We investigate the determinants of venture capital (VC) exit behavior after the lockup expiry in initial public offerings (IPOs) by considering insights from prospect theory and behavioral finance for the first time. Hereby, the paper concentrates on the under-researched relationship between fund managers and the limited partners investing in these funds. The results from a proprietary dataset of 292 U.S. VC-backed IPOs from 1991 to 2008 imply that VC firm characteristics and fund dynamics have a significant influence on the exit extent after the lockup expiry and may not always be in line with limited partners' interests, hinting at the relevance of behavior grounded in prospect theory. In particular, first-time funds keep their shares longer after an IPO, whereas funds satisfied with current fund performance cash out soon after the end of the lockup period.     

Robust design in multivariate systems using genetic algorithms

This paper presents a methodology based on genetic algorithms, which finds feasible and reasonably adequate solutions to problems of robust design in multivariate systems. We use a genetic algorithm to determine the appropriate control factor levels for simultaneously optimizing all of the responses of the system, considering the noise factors which affect it. The algorithm is guided by a desirability function which works with only one fitness function although the system may have many responses. We validated the methodology using data obtained from a real system and also from a process simulator, considering univariate and multivariate systems. In all cases, the methodology delivered feasible solutions, which accomplished the goals of robust design: obtain responses very close to the target values of each of them, and with minimum variability. Regarding the adjustment of the mean of each response to the target value, the algorithm performed very well. However, only in some of the multivariate cases, the algorithm was able to significantly reduce the variability of the responses.     

Stakeholders' Impact on Turnaround Performance: The Case of German Savings Banks

This study explores how savings banks as powerful stakeholders of SMEs in Germany assess turnaround performance. It tests the impact of the support provided by German savings banks and distressed SMEs' actions with survey data from corporate advisors. The results show that structural and continuing support foster turnaround performance. This support is conducive in the initial stage of turnaround but negligible in the recovery stage. Contributing to stakeholder theory and turnaround management, the findings shed light on the factors that motivate a selected stakeholder's involvement and SMEs' ability to engage in actions fostering this stakeholder's support for a turnaround.     

Konsumentenanimosität: State of the Art und Entwicklung eines kontextsensitiven Erklärungsansatzes

Research on consumer animosity indicates that consumers reject products because they hold hostile attitudes towards the products’ country of origin. As companies operating in foreign markets are facing serious challenges, marketing research has focused on the mechanisms by which animosity influences consumer perception and behavior. The present article reviews 44 relevant empirical studies to illustrate antecedents, moderators, and behavioral consequences of the animosity effect. The analysis reveals a lack of a sound theoretical foundation and it shows that prior studies disregard social influences. To overcome this gap, the present article develops a theory-driven model which suggests that the social animosity context interacts with feelings of animosity at an individual level. Based on this new approach, directions for future research and managerial implication are discussed.     

Steuerflucht und Steueroasen

The current debate on tax planning has to distinguish between tax evasion and aggressive tax planning. While tax evasion is illegal and requires the enhanced exchange of information, measures against aggressive tax planning seem to be very complex and complicated. Tax havens’ benefits from tax haven activities are inversely related to the intensity of competition among tax havens. Once the set of tax havens narrows, each havens’ share of the business increases and its margins go up. This competition aspect makes initial successes easy but final success very difficult. Nevertheless, some authors argue that action against tax flight is inevitable. As tax flight is a multilateral phenomenon, coordinated initiatives by country groups appear particularly promising. Here the EU should be in the vanguard. Only automatic information exchange generates the transparency and leeway needed to eliminate income tax evasion and to permit countries to devise tax codes at their own discretion. Despite the European trend towards lower corporate taxes, an empirical analysis shows that German multinationals have increased their tax haven activities. Recent research suggests that this development might be explained by the increased usage of anti-tax avoidance measures by high-tax countries. The substitutive nature of different tax-avoidance schemes indicates that only a coordinated closing of loopholes for profit shifting would reduce the demand for tax-haven operations significantly.     

Effects of agri-environment schemes on farm-level eco-efficiency measures: Empirical evidence from EU countries

The European Union (EU) budget allocated to agri-environmental schemes (AES) has increased consistently over the past 20 years. European citizens should expect effective spending of these public funds, so investigation of the effects of these schemes on both environmental benefits and farm efficiency is warranted. We examine the effects of European agri-environmental schemes on farm-level eco-efficiency. Our analysis combines data envelopment analysis and impact assessment methods to evaluate the impact of scheme payments on eco-efficiency measures. Our results suggest that there is considerable scope for eco-efficiency improvements, both for dairy and crop production. Results also show that the average change in eco-efficiency scores does not vary significantly between AES participants and non-participants, which questions the effectiveness of present AES.