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on Business Economics |
| By: | Hino, Yoshifumi; Zennyo, Yusuke |
| Abstract: | We analyze a delegation game relevant to the conduct of corporate social responsibility (CSR) in which the firm's owner offers the manager a contract consisting of firm profit and social welfare. We derive three results that distinctly differ from existing findings. First, CSR decisions are strategic complements for firms. Second, with simultaneous CSR decisions, the equilibrium price is equal to marginal cost, despite the fact that firms compete in a Cournot duopoly. Finally, with sequential CSR decisions, unlike the follower firm, the leader firm never exhibits CSR. However, the follower firm can enjoy a profit equal to that derived by the leader in a Cournot-Stackelberg game. |
| Keywords: | Keywords Corporate social responsibility, Cournot, Strategic substitute, Strategic complement |
| JEL: | L13 L21 M14 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67950&r=bec |
| By: | Bartha, Zoltan |
| Abstract: | This chapter focuses on the influence of tax systems and taxation rules on the firm structure of the 28 European Union member economies. It is argued that higher taxes and more complex tax rules lead to smaller firms, and that, on the other hand reduces macroeconomic perfor-mance. It is found that the firm size and corporate tax rates are negatively correlated in case of medium-sized (R=-0.4; p=0.03) and large (R=-0.41; p=0.03) firms. Indications were found that higher transaction costs caused by taxation lead to smaller firms, as a significant negative correlation was found between the number of hours per year needed to administer tax pay-ments, and the share of large firms (R=-0.41 & p=0.03), and also between KPMG’s comment length (an indicator for tax system complexity) and the share of medium-sized firms’ turnover from the total turnover (R=-0.39 & p=0.045). More complicated tax rules might also cause a smaller proportion of firms to grow quicker, but the significance level of these relationships is not very convincing. |
| Keywords: | tax system; tax rate; institutions; firm size |
| JEL: | H21 L11 |
| Date: | 2015–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68027&r=bec |
| By: | Ugur, Mehmet; Trushin, Eshref; Solomon, Edna |
| Abstract: | Theoretical and empirical work on innovation and firm survival has produced varied and often conflicting findings. In this paper, we draw on Schumpeterian models of competition and innovation and stochastic models of firm dynamics to demonstrate that the conflicting findings may be due to linear specifications of the innovation-survival relationship. We demonstrate that a quadratic specification is appropriate theoretically and fits the data well. Our findings from an unbalanced panel of 39,705 UK firms from 1997-2012 indicate that an inverted-U relationship holds for different types of R&D expenditures and sources of funding. We also report that R&D intensity is more likely to increase survival when firms are in more concentrated industries and in Pavitt technology classes consisting of specialized suppliers of technology and scale-intensive industries. Finally, we report that the effects of firm and industry characteristics as well as macroeconomic environment indicators are all consistent with prior findings. The results are robust to step-wise modeling, controlling for left truncation and use of lagged values to address potential simultaneity bias. |
| Keywords: | Innovation, post-entry performance, R&D, survival analysis |
| JEL: | C41 D22 L1 O21 O3 |
| Date: | 2015–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68010&r=bec |
| By: | Matthew Cole (California Polytechnic State University.); Ben Zissimos (Department of Economics, University of Exeter) |
| Abstract: | This paper develops a new model of a trade agreement that puts at center stage the competing interests between firms within a sector. Larger firms favor trade liberalization whereas smaller firms favor protection. Lobbying by firms for or against the agreement is modelled as an all-pay auction, thus incorporating the feature that binding contracts over contributions for policies cannot be written. A new motive for trade agreement formation is uncovered in this framework whereby governments’ incentives to liberalize are driven by the lobbying process. If a proposed agreement is over non-tariff barriers then it always entails free trade. If a proposed agreement is over tariffs then it either entails free trade, which maximizes lobbying revenue, or the tariff revenue maximizing tariff. This outcome is supported by the surprising result that, off the equilibrium path, any tariff agreement that entails lobbying and positive tariffs yields lower expected revenue for the government than a free trade agreement involving no tariff revenue. |
| Keywords: | All-pay auction, firm heterogeneity, non-tariff barriers, tariffs, trade agreement. |
| JEL: | F02 F12 F13 D44 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:1510&r=bec |
| By: | Simone Bertini (IRPET); Tommaso FerraresiAuthor-X-Name-First: Tommaso (IRPET); Marco Mariani (IRPET); Edoardo Loris Rossi (IRPET) |
| Abstract: | The present study analyzes the managerial practices of high-growth firms, an issue which is still unexplored in the relevant literature. Its aim is to verify whether the excellent performances of these firms are matched by significant differences in management skills. The main results suggest that, although they are not radically different from the others, fast-growing firms are somehow characterized by more advanced managerial practices and pay greater attention to learning-related aspects. Some of these aspects differentiate constant-growth firms from the non-constant growth ones. |
| Keywords: | High-growth firms, management |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:irp:essays:515&r=bec |
| By: | Andrés Fernández (Inter-American Development Bank); Andrés González (International Monetary Fund); Diego Rodríguez (Banco de la República de Colombia) |
| Abstract: | Fluctuations in commodity prices are an important driver of business cycles in small emerging market economies (EMEs). We document how these fluctuations correlate strongly with the business cycle in EMEs. We then embed a commodity sector into a multi-country EMEs business cycle model where exogenous fluctuations in commodity prices follow a common dynamic factor structure and coexist with other driving forces. The estimated model assigns to commodity shocks 42 percent of the variance in income, of which a considerable part is linked to the common factor. A further amplification mechanism is a spillover effect from commodity prices to risk premia. Classification JEL: E32, F41, F44 |
| Keywords: | Emerging economies, business cycles, commodity prices, common factors, Bayesian estimation, dynamic stochastic equilibrium models. |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:915&r=bec |
| By: | Valeria Cirillo; Mario Pianta; Leopoldo Nascia |
| Keywords: | Skills; Innovation; Technology; Business Cycles |
| Date: | 2015–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2015/30&r=bec |
| By: | Ippolito, Filippo; Peydró, José Luis; Polo, Andrea; Sette, Enrico |
| Abstract: | By providing liquidity to depositors and credit line borrowers, banks are exposed to double-runs on assets and liabilities. For identification, we exploit the 2007 freeze of the European interbank market and the Italian Credit Register. After the shock, there are sizeable, aggregate double-runs. In the cross-section, pre-shock interbank exposure is (unconditionally) unrelated to post-shock credit line drawdowns. However, conditioning on firm observable and unobservable characteristics, higher pre-shock interbank exposure implies more post-shock drawdowns. We show that is the result of active pre-shock liquidity risk management by more exposed banks granting credit lines to firms that run less in a crisis. |
| Keywords: | credit lines; financial crisis; liquidity risk; risk management; runs |
| JEL: | G01 G21 G28 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10948&r=bec |
| By: | Andrea Garnero |
| Abstract: | This paper estimates the impact of workforce diversity on productivity, wages, and productivity–wage gaps in a sample of French firms using data from a comprehensive establishment-level survey (REPONSE) for 2011 matched with companies’ balance sheet data. Controlling for a wide set of workers’ and firms’ characteristics, findings suggest that age and gender diversity are negatively linked to firm’s productivity and wages while education diversity is positively linked. Contrary to some widespread beliefs, the paper finds no differential effect according to manager characteristics (gender, age, education and tenure) but some heterogeneity according to the type of proprietary structures of the firms. |
| Keywords: | labour diversity; productivity; wages; management; firm ownership |
| JEL: | D24 J24 J31 M12 |
| Date: | 2015–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/218358&r=bec |
| By: | Andrés Fernández; Andrés González; Diego Rodríguez |
| Abstract: | Fluctuations in commodity prices are an important driver of business cycles in small emerging market economies (EMEs). We document how these fluctuations correlate strongly with the business cycle in EMEs. We then embed a commodity sector into a multi-country EMEs business cycle model where exogenous fluctuations in commodity prices follow a common dynamic factor structure and coexist with other driving forces. The estimated model assigns to commodity shocks 42 percent of the variance in income, of which a considerable part is linked to the common factor. A further amplification mechanism is a spillover effect from commodity prices to risk premia. |
| Keywords: | Emerging economies, business cycles, commodity prices, common factors, Bayesian estimation, dynamic stochastic equilibrium models. |
| JEL: | E32 F41 F44 |
| Date: | 2015–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:col:000094:014054&r=bec |
| By: | Kabaghe, Chance |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:midcpb:212892&r=bec |
| By: | Christian Awuku-Budu; Leo Sveikauskas |
| Abstract: | This paper uses Census microdata and a regression-based approach to assign multi-division firms’ pre-2008 Research and Development (R&D) expenditures to more than one industry. Since multi-division firms conduct R&D in more than one industry, assigning R&D to corresponding industries provides a more accurate representation of where R&D actually takes place and provides a consistent time-series with the National Science Foundation R&D by line of business information. Firm R&D is allocated to industries on the basis of observed industry payroll, as befits the historic importance of payroll in Census assignments of firms to industry. The results demonstrate that the method of assigning R&D to industries on the basis of payroll works well in earlier years, but becomes less effective over time as firms outsource their manufacturing function. |
| Keywords: | business R&D, industry classification, Tobit model, establishment payroll |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:15-42&r=bec |
| By: | Kehoe, Timothy J. (University of Minnesota); Asturias, Jose (School of Foreign Service in Qatar, Georgetown University); Hur, Sewon (University of Pittsburgh); Ruhl, Kim J. (Stern School of Business, New York University) |
| Abstract: | In what order should a developing country adopt policy reforms? Do some policies complement each other? Do others substitute for each other? To address these questions, we develop a two-country dynamic general equilibrium model with entry and exit of firms that are monopolistic competitors. Distortions in the model include barriers to entry of firms, barriers to international trade, and barriers to contract enforcement. We find that a reform that reduces one of these distortions has different effects depending on the other distortions present. In particular, reforms to trade barriers and barriers to the entry of new firms are substitutable, as are reforms to contract enforcement and trade barriers. In contrast, reforms to contract enforcement and the barriers to entry are complementary. Finally, the optimal sequencing of reforms requires reforming trade barriers before contract enforcement. |
| Keywords: | Sequencing reforms; Trade barriers; Entry barriers; Contract enforcement |
| JEL: | F13 F4 O11 O19 O24 |
| Date: | 2015–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedmsr:521&r=bec |
| By: | Lara Makowski (Graduate School of Business Administration, Kobe University); Qi Wu (Graduate School of Business Administration, Kobe University); Michiyuki Yagi (Graduate School of Business Administration, Kobe University); Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University) |
| Abstract: | After the nuclear disaster, in the aftermath of the Great East Japan Earthquake in 2011, the Japanese government shut down all nuclear power plants in Japan. The German government decided to permanently phase out nuclear power. Japan was, and still is, directly affected by the nuclear disaster and Germany is considered the most sensitive country to nuclear energy after the nuclear disaster. This study aims to empirically examine whether there were changes in corporate environmental performance through companies’ implementations of environmental policies from before 2011 to after 2011 in Germany and Japan in the non-financial and non-energy. The dependent variable (as corporate environmental performance) is defined as a firm’s sales divided by corporate direct greenhouse gas emissions (Scope 1) in the logarithm form. The independent variables are nine corporate policies, which all are dummy variables. This study uses the global firm dataset from the Bloomberg professional service where the number of observation is 832 in over a seven-year period (2006-2012). In the regression result, we find that when roughly examining pre and post 2011, using a dummy variable, there is significant change regarding the Japan and both sample. We then find that in eight out of the nine cases there is no effect of implementing the environmental policies on corporate efficiency. |
| Keywords: | Environmental efficiency; Pre and post disaster; Germany and Japanese companies; environmental, social, and governance policies; greenhouse gas emissions |
| JEL: | F21 O13 Q54 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2015-24&r=bec |
| By: | Matteo PICCHIO (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); Jan C. VAN OURS (Department of Economics, Tilburg University, The Netherlands) |
| Keywords: | Part-time employment, firm-sponsored training, gender, human capital, working hours |
| JEL: | C33 C35 J24 M51 M53 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:413&r=bec |
| By: | Cié Fatou; Ji Eun Choi |
| Abstract: | The increasing quantity of literature investigating the impact of trade openness on firm efficiency has not yet provided a definite prediction of the direction of causality. This paper investigates how the relationship between exporting and productivity impacts on manufacturing sectors in Senegal. Using unique firm-level panel data for the period 1998.2011, we estimate productivity and exporting dynamics, controlling for other unobserved effects, and using General Method of Moments. Our results indicate evidence both that the most efficient firms self-select for entry into the export market and that learning has an impact on the export market. From a policy perspective, this evidence of learning by exporting suggests Senegal has much to gain from encouraging exports by helping domestic firms overcome barriers to entering foreign markets, particularly by investing in skilled workers and promoting access to patents and licenses |
| Keywords: | exporting, total factor productivity, learning by exporting, general method of moment; Economic assistance and foreign aid, Infrastructure (Economics), Millennium Development Goals |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2015-057&r=bec |