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on Business Economics |
| By: | Chiara Burlina |
| Abstract: | This study investigates a particular type of network, the inter-firm network (IFN), and its impact on performances of Italian firms between 2010-2015. After revising the literature on alliances and networks for what concerns the geographical and industrial dimension, I focus my attention on networks’ performance and innovation propensity. The empirical analysis, based on a sample of about 4,000 firms, is divided in two parts: firstly, applying a “differencein- difference” technique, is tested the impact of being in an IFN; secondly, focusing on year 2013, are measured the different effects of IFN characteristics. Results demonstrate that belonging to an IFN has a positive impact on firms’ growth. Moreover, industry heterogeneity of members and internationalisation scope (rather than innovation) turn out to be the main factors increasing firm’s profitability and economic growth. |
| Keywords: | Inter-firm network, Alliances, Performance, Difference-in-Difference, Innovation. |
| JEL: | C3 L25 P25 R12 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0216&r=bec |
| By: | Koki Oikawa; Minoru Kitahara |
| Abstract: | We construct a new method to describe firm distributions within technology fields and investigate the relationship between those distributions and aggregate innovation. To locate firms on a technology space, we apply multidimensional scaling for the inter-firm technological dissimilarity matrices that are computed from patent citation overlaps among firms using the NBER US patent dataset. Our estimated firm distributions show increasing trends in technological distance and polarization on average, where we follow Duclos, Esteban and Ray (2004) to measure polarization. We construct a model of inter-group competition in which polarization stimulates aggregate R&D. The model fits data before 1990 but the impact of polarization is reversed after that. We attribute the structural change to the major patent reform in the United States in 1980s. |
| URL: | http://d.repec.org/n?u=RePEc:tcr:wpaper:e113&r=bec |
| By: | Schmalz, Martin |
| Abstract: | What is the effect of unionization on corporate financial policies? The average unionized firm responds with lower cash and higher leverage to a unionization election than the average firm escaping unionization. However, using a regression discontinuity design I find that the causal effect of unionization is close to zero on average, but heterogeneous across firms. For the subset of large and financially unconstrained firms, the causal effect is positive on leverage and negative on cash; the opposite is true for small and financially constrained firms. These results help reconcile controversially discussed views on how corporate finance and labor interact. |
| Keywords: | Capital Structure; cash; Labor Adjustment Costs; Regression Discontinuity; Risk management; Unionization |
| JEL: | G32 J50 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12595&r=bec |
| By: | Sharma, Ajay |
| Abstract: | This paper demonstrates that in a duopoly model with firms being concerned about profit as well as corporate social responsibility (CSR), the outcome of game may coincide with the Stackelberg outcome. We argue that owner of the firm may use CSR orientation as a strategy to become Stackelberg leader in the quantity competition game. |
| Keywords: | Stackelberg outcome; Corporate social responsibility; Cournot game; Duopoly; Non-profit orientation |
| JEL: | D21 D43 L10 L20 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84326&r=bec |
| By: | Antoine Berthou (Banque de France, 31 rue Croix des Petits Champs, 75001 Paris); Emannuel Dhyne (Economics and Research Department, NBB) |
| Abstract: | This paper provides an estimation of the reaction of the firm-level exports consecutive to real exchange rate movements – the exchange rate elasticity of exports. Following recent theoretical works emphasizing the role played by firm heterogeneity, we test in particular how the exchange rate elasticity may be affected by firm-level productivity, and how the heterogeneous reaction of different firms may contribute to shape the aggregate reaction of countries’ exports. The analysis relies on a unique cross-country micro-based dataset of exporters available for 11 European countries (2001-2011), which details in particular information about ??rms’ productivity and export performance. Our results show that while the average exchange rate elasticity across firms is quite weak, it is also highly heterogeneous. The least productive firms within each country and sector tend to react more to real exchange rate movements than the most productive firms. This weak reaction of highly productive and large exporters tends to reduce the macroeconomic exchange rate elasticity in all countries. Cross-country differences in the shape of the productivity distribution among exporters have a strong influence on the macroeconomic exchange rate elasticity: countries populated with a higher density of low productive firms tend to respond more to exchange rate movements in terms of aggregate exports than countries populated with highly productive exporters. |
| Keywords: | Firm-level exports, heterogeneity, exchange rates movements. |
| JEL: | F12 F14 F31 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:201801-334&r=bec |
| By: | A. Berthou; E. Dhyne |
| Abstract: | This paper provides an estimation of the reaction of firm-level exports consecutive to real exchange rate movements, the exchange rate elasticity of exports. Following recent theoretical works emphasizing the role played by firm heterogeneity, we test in particular how the exchange rate elasticity may be affected by firm-level productivity, and how the heterogeneous reaction of different firms may contribute to shape the aggregate reaction of countries' exports. The analysis relies on a unique cross-country micro-based dataset of exporters available for 11 European countries (2001-2011), which details in particular information about firms' productivity and export performance. Our results show that while the average exchange rate elasticity across firms is quite weak, it is also highly heterogeneous. The least productive firms within each country and sector tend to react more to real exchange rate movements than the most productive firms. This weak reaction of highly productive and large exporters tends to reduce the macroeconomic exchangerate elasticity in all countries. Cross-country differences in the shape of the productivity distribution among exporters have a strong influence on the macroeconomic exchange rate elasticity: countries populated with a higher density of low productive firms tend to respond more to exchange rate movements in terms of aggregate exports than countries populated with highlyproductive exporters. |
| Keywords: | Firm-level exports, heterogeneity, exchange rates movements. |
| JEL: | F12 F14 F31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:660&r=bec |
| By: | Riaz, Fayyaz; Abdul Razzaq, Fiza; Waqar, Ahsan |
| Abstract: | This paper examines the impact of employee stock ownership plans on the overall performance of the organizations. From the five decades literature, the conceptual underpinning formed includes variables of interest namely; employees' motivation, job commitment, employees' turnover, and productivity/profitability of the firms. The paper follows positivist philosophy with deductive approach to gain numerical significance. Total 280 respondents targeted using combination of probability (random) sampling and non-probability (convenience and snowball) sampling techniques. The statistical tests, which are used to test the hypotheses, are regression and correlation. Results showed that they exists statistically significant correlation between ESOPs and overall performance of the organization. Interestingly, the nature of relationship is positive but the strength is moderate to weaker. Employees' turnover has moderate positive significant correlation (r=. 541, p |
| Keywords: | Employees Stock Ownership plans, commitment, employee turnover, profitability, motivation |
| JEL: | C1 C12 D24 M00 M2 M21 M59 |
| Date: | 2017–08–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84322&r=bec |
| By: | Custodio, Claudia; Siegel, Stephan |
| Abstract: | We investigate the link between birth order and the career outcome of becoming Chief Executive Officer (CEO) of a company. We find that CEOs are more likely to be the first-born, i.e., oldest, child of their family. This result holds for family firms, where traditionally the oldest child is appointed to run the family business, but also for non-family firms. We also find that CEOs are significantly less likely to have older brothers (relative to younger brothers) than older sisters (relative to younger sisters). The advantage of being first-born seems to decay over time, consistent with changing family structures and rearing practices as well as changing social norms. |
| Keywords: | birth order; CEO; family firm; first born; rearing environment; upbringing |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12613&r=bec |
| By: | Alonso-Pauli, Eduard; Bru, Lluís |
| Abstract: | In a firm organized into business units, we show when profitability increases if procurement is delegated to the division in charge of production. We highlight that our results are driven by the business unit having a different objective function than Headquarters. The profitability of procurement delegation is affected by the essentiality of production facilities to the activities of the firm, and by strategic distortions in both transfer and input prices. We also look at vertical separation of activities as an alternative to procurement delegation. |
| Keywords: | strategic delegation, transfer pricing, procurement |
| JEL: | D24 D43 M11 |
| Date: | 2018–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84293&r=bec |
| By: | Hvide, Hans K |
| Abstract: | We document three new facts about entrepreneurship. First, a majority of male entrepreneurs start a firm in the same or a closely related industry as their fathers' industry of employment. Second, this tendency is correlated with intelligence: higher-IQ entrepreneurs are less likely to follow their fathers.Third, an entrepreneur that starts a firm in the same 5-digit industry as where his father was employed tends to outperform entrepreneurs in the same industry whose fathers did not work in that industry. We consider various explanations for these facts and conclude that "dinner table human capital", where children obtain industry knowledge through their parents, is an important factor behind what type of firm is started and how well it performs. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12608&r=bec |
| By: | Brian McCaig, Jordan Nanowski (Wilfrid Laurier University) |
| Abstract: | We estimate the impact of business formalisation using nationally representative panel data on businesses in Vietnam. Our data allows us to observe businesses for two surveys prior to obtaining a license and hence to control for differential trends before formalisation. We find that obtaining a license is not associated with an increase in profits or other business outcomes such as revenue, expenses, and employment once we control for differential trends. Controlling for trends is crucial, as estimates that ignore trends consistently find a larger positive association between becoming licensed and business performance. Our results suggest that inducing more businesses to register is unlikely to bring about large-scale changes for these businesses. |
| Keywords: | Informal, Formalization, Asia, Vietnam, Household business |
| Date: | 2018–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wlu:lcerpa:0113&r=bec |
| By: | Habte, Osmis (Department of Economics, Lund University) |
| Abstract: | This paper examines the effect of competition on a firm's choice of opening hours in the motor vehicle inspection market. Competition affects the incentive inspection firms face when choosing opening hours, which influences the probability that consumers find service time that best matches their preferred time. We use 2SLS analyses to resolve the potential endogeneity of market entry decisions. Using a detailed monthly firm-level panel data for all inspection firms in Sweden, we find that increased competition, measured using both the number of firms in a geographic market and average distance to nearby competitors, leads to expanded opening hours. The probability that inspection firms offer services on weekends also increases with local competition. |
| Keywords: | opening hours; competition; non-price competition; entry; motor vehicle inspection market |
| JEL: | D22 L11 L84 |
| Date: | 2017–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2017_020&r=bec |