An empirical note about estimation and forecasting Latin American Forex returns volatility: the role of long memory and random level shifts components

Portuguese Economic Journal - A set of RLS-type models with ARMA and ARFIMA dynamics is estimated and compared in a forecasting exercise with ARFIMA, GARCH and FIGARCH models. It is an extension of...     

Doing more and doing better are two different entities: Different patterns of family control and environmental performance

Family firms bear two types of agency costs, including type I and type II agency problems, in corporate environmental practices: (1) Outside executives at family firms hesitate to engage in environmental strategies, which can lead to drops in profits; (2) Controlling families employ opportunistically environmental management to achieve their interests. We argue that a primary cause for the agency problems lies on ineffective internal corporate governance at family firms, which can cause loss of managerial (or power) balance between outside executives and family executives. Our findings show that family firms with ownership and strategic control (FSC), which family executives and outside executives monitor and constrain each other, can achieve the highest environmental performance. Moreover, external controls, including product market competition and provincial environmental regulations, substitute effective internal control of FSC. The environmental performance premium of FSC is more prevalent when the production market competition is lower. Family firms with ownership, operational, and strategic control (FOSC) can achieve higher environmental performance within a province with more stringent environmental regulations.     

大数据能力对企业创新绩效的影响——IT-业务融合与双元环境的调节作用

基于动态能力理论和权变理论，以IT-业务融合、双元环境为调节变量，探究大数据能力与企业创新绩效间的作用关系，结果发现：大数据能力对创新绩效具有正向促进作用；IT-业务融合调节大数据能力与创新绩效的关系，IT-业务融合水平越高，大数据能力对创新绩效的正向影响就越显著；双元环境能够调节大数据能力与创新绩效间关系。其中，环境动态性在大数据能力与创新绩效关系间起正U型调节作用，而环境竞争性在大数据能力与创新绩效关系间起倒U型调节作用。从内外部情境视角解释大数据能力的创新转化，对中国企业大数据应用具有指导意义。     

All work intensity is not created equal: Effort motives,job satisfaction and quit intentions at a grocery chain

Prior research has shown that the well-being of employees engaged in intensive work can vary with the discretion their jobs afford regarding how and when to carry out the work. This article explores a different avenue. It argues that well-being also varies with employees’ individual motives for working intensively. The article introduces self-determination theory to the domain of work intensity and focuses on two hypotheses. The first is whether intensive work driven by explicit or implicit incentives is more positively associated with an employee's job satisfaction than intensive work driven by job demands. The second is whether intensive work driven by intrinsic motives is more positively associated with job satisfaction than that driven by explicit or implicit incentives. In both these cases, the article also examines whether equivalent effects exist on (reduced) quit intentions. Original data from a major Greek grocery chain provide corroborative evidence that is robust to a rich set of covariates, including increasingly demanding adjustments for job discretion. The findings contribute to a more complete understanding of why differences in well-being exist among employees performing intensive work, with implications for workers and employers.     

Hayek on the essential dispersion of market knowledge

The Review of Austrian Economics - A key insight in Hayek’s thought is the importance of so-called “local knowledge” in economic activity. In The Fatal Conceit, he states that...     

Assessing information integration processes: a comparison of findings obtained with between-subjects designs versus within-subjects designs

Quality & Quantity - Within-subject designs (WSDs) remain unpopular in psychology. Social psychologists have argued that they create “demand” and “order” effects....     

Capital gains lock-in and governance choices

Differences in accrued gains and investors’ tax-sensitivity induce variation in a capital gains lock-in effect across mutual funds even for the same stock at the same time. Exploiting this variation, we show this effect influences funds’ governance decisions: higher capital gains decrease the likelihood a fund exits prior to contentious votes and increase the likelihood a fund votes against management. Consistent with tax motivation, these findings are concentrated among funds with tax-sensitive investors. Further, high aggregate capital gains across funds holding a stock predict a higher likelihood management loses a vote and a lower likelihood a contentious vote is proposed.     

The importance of consumer multihoming (joint purchases) for market performance: Mergers and entry in media markets

Consumer “multihoming” (watching two TV channels, or buying two news magazines) has surprisingly important effects on market equilibrium and performance in (two‐sided) media markets. We show this by introducing consumer multihoming and advertising finance into the classic circle model of product differentiation. When consumers multihome (attend more than one platform), media platforms can charge only incremental value prices to advertisers. Entry or merger leaves consumer prices unchanged under consumer multihoming, but leaves advertiser prices unchanged under single‐homing: Multihoming flips the side of the market on which platforms compete. In contrast to standard circle results, equilibrium product variety can be insufficient under multihoming.     

Environmental Policy,Sustainable Development,Governance Mechanisms and Environmental Performance

We investigate the effects of environmental policy (Climate Change Act – CCA), sustainable development frameworks (Global Reporting Initiative – GRI; UN Global Compact – UNGC) and corporate governance (CG) mechanisms on environmental performance (carbon reduction initiatives – CRIs; actual carbon performance – GHG emissions) of UK listed firms. We use the generalized method of moments (GMM) estimation technique to analyse data consisting of 2245 UK firm‐year observations over the 2002–2014 period. First, we find that the CCA has a positive effect on CRIs, and this effect is stronger in better‐governed firms. Second, we find that the GRI‐based framework is positively associated with CRIs. Third, we find that firms with poor CG structures have lower actual carbon performance compared with their better‐governed counterparts. Overall, our evidence suggests that firms can symbolically conform to environmental policy (CCA) and sustainable development frameworks (GRI, UNGC) by engaging in CRIs without necessarily improving actual environmental performance (GHG emissions) substantively. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

The US financial crisis and corporate dividend reactions: for better or for worse?

Review of Quantitative Finance and Accounting - We examine how changes in dividend policy in 2008 as the financial crisis was unfolding influenced firm risk-adjusted returns in the following years....