Strength in numbers or guilt by association? Intragroup effects of female chief executive announcements

We predict that the media reports on female CEOs as a coherent group, whereas male CEOs are treated as individuals by the media. We also suggest that the resulting investors' perceptions of group entitativity of female‐led firms may not only influence the succession event–performance relationship at the focal firm, but may also have a significant effect on the value of other female‐led companies. Results of a text analysis and an event study of appointments of female CEOs to Fortune 1000 firms provide support for these predictions. Copyright © 2013 John Wiley & Sons, Ltd.     

REAL AND DISTRIBUTIVE EFFECTS OF PETROLEUM PRICE LIBERALIZATION: THE CASE OF INDONESIA

The effect of higher petroleum prices on the aggregate price level, real growth, and income distribution is appraised within a multisector computable general equilibrium (CGE) model. A reduction in the government subsidy raises petroleum prices and production costs throughout the economy. Consumer demand, production, and income decline as output prices increase and consumer purchasing power decreases. The model is applied to and calibrated for Indonesia. The simulated results predict a slight increase in the price level and a slight decrease in output. An important result is that urban household groups will be the most significantly affected by the subsidy reduction.     

Who Are the Potential Smokers of Smuggled Cigarettes?

Although smuggled cigarettes have been a prevalent problem and a severe challenge to public health and welfare around the world, little is known about the behavior associated with smoking smuggled cigarettes and the issue is difficult to study due to data limitations. By means of a population‐based tobacco survey conducted in Taiwan, the present paper applies a latent class model to identify potential smokers who are either currently or will at some point in the future be consuming smuggled cigarettes. This methodology, in contrast to the traditional discrete models, allows potential smokers who are more inclined to smoke smuggled cigarettes to be endogenously classified. The empirical results indicate that socio‐demographic factors do increase the inclination to smoke smuggled cigarettes after unobserved heterogeneity has been accounted for.     

Comparison of Effects from Different Institutions: Public Credit Guarantee in Korea*

We aim to compare the activities of the two main credit guarantee institutions in Korea. There has been mounting criticism that although these institutions were mandated to play different roles in financing small and medium‐sized enterprises (SME), their operations are, in fact, similar, and many SME receive overlapping support from both institutions. Using the propensity score matching method (allowing for multiple, mutually exclusive support scenarios) to compare the effects of PCG on different institutions, the present study provides suggestions to help the government make decisions regarding the consolidation of PCG funds. The results suggest that the institutions function differently and target different SME. However, overlapping support enables firms to expand their sales only, indicating the existence of inefficiency in the case of overlapping support to firms.