Accounting comparability and relative performance evaluation in CEO compensation

We investigate whether accounting comparability is associated with the likelihood that CEO compensation is tied to relative accounting performance (e.g., return on assets). We predict that higher accounting comparability increases the risk-sharing benefit of accounting-based RPE because peer firm performance better controls for common risk in RPE firm performance. Thus, firms that have higher accounting comparability with potential performance peers will be more likely to include accounting-based RPE as a component of the total CEO compensation contract. We find support for this prediction using (1) an explicit test design that relies on the ex ante terms of CEO compensation contracts obtained from proxy disclosures, and (2) an implicit design that relies on the actual realizations of CEO compensation. To provide further evidence, we examine the association between accounting comparability and the selection of performance peers when the CEO compensation contract includes an accounting-based RPE component. We find that higher comparability between the RPE firm and a potential peer firm increases (decreases) the potential peer firm’s likelihood of being selected into (dropped from) the peer group. Cross-sectional analyses show that this association is less pronounced, or not present, when the relative performance measure is price-based (as opposed to accounting-based), indicating that these results do not merely reflect a more general role of comparability in all RPE contracts.     

Confidence sets for the date of a break in level and trend when the order of integration is unknown

We propose methods for constructing confidence sets for the timing of a break in level and/or trend that have asymptotically correct coverage for both I(0) and I(1) processes. These are based on inverting a sequence of tests for the break location, evaluated across all possible break dates. We separately derive locally best invariant tests for the I(0) and I(1) cases; under their respective assumptions, the resulting confidence sets provide correct asymptotic coverage regardless of the magnitude of the break. We suggest use of a pre-test procedure to select between the I(0)- and I(1)-based confidence sets, and Monte Carlo evidence demonstrates that our recommended procedure achieves good finite sample properties in terms of coverage and length across both I(0) and I(1) environments. An application using US macroeconomic data is provided which further evinces the value of these procedures.     

GRADING JOURNALS IN ECONOMICS: THE ABCS OF THE ABDC

Many institutions and governments grade academic journals for the evaluation of research. In this paper, we implement a multi-bibliometric methodology for the evaluation of such a list of journal grades. We examine the grades assigned by the Australian Business Deans Council (ABDC) for over 750 journals in the fields of economics and statistics. Firstly, we generate up to 48 bibliometric-based grades for each journal based on the grade distribution implied by the ABDC. Secondly, we categorize the bibliometrics employing a cluster analysis of an interrater agreement statistic. Thirdly, we present a visualization of the consistency of the grading by journal. Finally, we list those journals where the majority of the matched bibliometrics indicate a higher or lower grade than their ABDC grade.     

Profit shifting and tax-rate uncertainty

Using firm-level data for 1,084 parent firms in 24 countries and for 9,497 subsidiaries in 54 countries, we show that tax-motivated profit shifting is larger among subsidiaries in countries that have stable corporate tax rates over time. Our findings further suggest that firms move away from transfer pricing and toward intragroup debt shifting that has lower adjustment costs. Our results are robust to several identification methods and respecifications, and they highlight the important role of tax-rate uncertainty in the profit-shifting decision while pointing to an adjustment away from more costly transfer pricing and toward debt shifting.     

Salvador Allende's development policy: Lessons after 50 years

Last year, 2020, was the 50th anniversary of the opening of the ‘Chilean road to socialism’ by Salvador Allende. Although the Allende government is the political reference for the 'socialism of the 21st century’ in Latin America, international supporters tend to disregard the primary cause of its downfall, focusing instead on the circumstances of Allende's death. This article explains the link between the Allende government's development policies and its macroeconomic outcomes between 1970 and 1973. It finds that Chile's economic collapse had an endogenous cause related to government policies. This supports the views of Mises and Hayek on the feasibility of socialist economic policies. Policymakers and commentators should recognise essential lessons from the Chilean experience to learn from past errors and effectively promote Latin America's economic development.     

Troubled by unequal pay rather than low pay:The incentive effects of a top management team pay gap

We examine the relationships with firm performance of the internal pay gap among individual members of the top management team(TMT) and the compensation level o...     

Assessment of Russian aviation development for long-term prospects with the regard for Arctic developing: reproductive and technological aspects

The article considers the conditions of developing the aviation industry for long-term prospects taking into account factors such as changes in purchasing aviation equipment, progress in developing the Russian aviation market, and works for reconstructing and modernizing transport infrastructure in the Russian Arctic. The author aims to coordinate the Government programs for developing new aviation equipment and equipment for air transport via the program of Arctic Exploration and Development, as it is necessary to integrate various cycle flows with regard to high-tech capital.     

Build Coalitions to Fit: Autonomy Expectations,Competence Mobilization,and Job Crafting

Job crafting offers several beneficial organizational outcomes, yet little is known about what makes employees engage in it. In particular, the role of leaders in influencing their subordinates to engage in job crafting has been insufficiently studied. Drawing on role theory, we suggest that the congruence of leader‐subordinate autonomy expectations nurtures subordinates’ experiences of having their competences adequately utilized in their jobs. This experience, which involves the competence mobilization of their work roles, subsequently fosters subordinates’ engagement in job‐crafting behavior. A two‐stage field study of 145 leader‐subordinate dyads using cross‐level polynomial regression and response surface analysis supported the (in)congruence hypotheses. The results also demonstrated that subordinates’ perceived competence mobilization mediates the relationship between autonomy expectation (in)congruence and job crafting. In addition, leader coalition as a moderator strengthens the effect of perceived competence mobilization as a psychological condition for job crafting. Implications for practice and future research are discussed. © 2016 Wiley Periodicals, Inc.     

Sustainable Consumption Behavior in Sub-Saharan Africa: A Conceptual Framework

This paper develops a conceptual framework for investigating the adoption patterns, inhibitors, and facilitators (PIF) of sustainable consumption in sub-Sahara African (SSA) settings. Literature evidence shows paucity of empirical studies on sustainable consumption from SSA, which partly explains lack of suitable conceptual framework to guide research in this area. Also, the existing frameworks, which were developed outside SSA may not be suitable for constructing sustainable consumption behavior in SSA because of its peculiarities. The key significance of this article is the potential of providing future researchers in this area with a framework to guide and manage their studies. As a conceptual article, insight was drawn from a plethora of scholarly articles in the domain of sustainable consumption and related areas. The framework is built on four key constructs—adoption patterns, inhibitors, facilitators (PIF), and intention. As a guide for studies from the SSA, the article includes an empirical section, which provides preliminary empirical validation for the proposed PIF conceptual framework based on a pilot test. The result from the pilot study, using structural equation modeling (SEM), led to positing the PIF Sustainable Consumption model, thus giving support for the PIF Conceptual Framework, which this article puts forward. In addition, the proposed PIF conceptual framework is capable of providing insight for crafting sustainability-related policies. © 2016 Wiley Periodicals, Inc.