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on Business Economics |
| By: | Brox, Enzo; Krieger, Tommy |
| Abstract: | We present a simple model to illustrate how birthplace diversity may affect team performance. The model assumes that birthplace diversity increases the stock of available knowledge due to skill complementarities and decreases effciency due to communication barriers. The consequence of these two opposing effects is a humpshaped relationship between birthplace diversity and team performance. To verify this prediction, we exploit self-collected data on the first division of German male soccer. Our data set covers 7,028 matches and includes information about 3,266 players coming from 98 countries. We propose two different instrumental variable approaches to identify the effect of birthplace diversity on team performance. Our findings suggest that an intermediate level of birthplace diversity maximizes team performance. |
| Keywords: | birthplace diversity,firm performance,globalization,high-skilled migration,international migration,productivity,soccer,team composition,team performance |
| JEL: | F23 J01 J24 M14 M54 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:19020&r=all |
| By: | Tarek A. Hassan (Boston University, NBER, and CEPR); Stephan Hollander (Tilburg University); Laurence van Lent (Frankfurt School of Finance and Management); Ahmed Tahoun (London Business School) |
| Abstract: | We adapt simple tools from computational linguistics to construct a new measure of political risk faced by individual US firms: the share of their quarterly earnings conference calls that they devote to political risks. We validate our measure by showing it correctly identifies calls containing extensive conversations on risks that are political in nature, that it varies intuitively over time and across sectors, and that it correlates with the firm’s actions and stock market volatility in a manner that is highly indicative of political risk. Firms exposed to political risk retrench hiring and investment and actively lobby and donate to politicians. These results continue to hold after controlling for news about the mean (as opposed to the variance) of political shocks. Interestingly, the vast majority of the variation in our measure is at the firm level rather than at the aggregate or sector level, in the sense that it is neither captured by the interaction of sector and time fixed effects, nor by heterogeneous exposure of individual firms to aggregate political risk. The dispersion of this firm-level political risk increases significantly at times with high aggregate political risk. Decomposing our measure of political risk by topic, we find that firms that devote more time to discussing risks associated with a given political topic tend to increase lobbying on that topic, but not on other topics, in the following quarter. |
| Keywords: | Political uncertainty, quantification, firm-level, lobbying |
| JEL: | D8 E22 E24 E32 E6 G18 G32 G38 H32 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:bos:iedwpr:dp-325&r=all |
| By: | Bhaumik, Sumon Kumar; Estrin, Saul; Mickiewicz, Tomasz |
| Abstract: | We consider whether the impact of entrepreneurial orientation on business performance is moderated by the company affiliation with business groups. Within business groups, we explore the trade-off between inter-firm insurance that enables risk-taking, and inefficient resource allocation. Risk-taking in group affiliated firms leads to higher performance, compared to independent firms, but the impact of proactivity is attenuated. Utilizing Indian data, we show that risk-taking may undermine rather than improve business performance, but this effect is not present in business groups. Proactivity enhances performance, but less so in business groups. Firms can also enhance performance by technological knowledge acquisition, but these effects are not significantly different for various ownership categories |
| Keywords: | emerging economies; business groups; entrepreneurial orientation; India |
| JEL: | J50 G32 |
| Date: | 2017–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:66992&r=all |
| By: | Daniel Schwanen (C.D. Howe Institute); Jeremy Kronick (C.D. Howe Institute); Farah Omran (C.D. Howe Institute) |
| Keywords: | Financial Services and Regulation; Business and Capital Taxation;Business Investment;Capital Markets;Venture Capital |
| JEL: | G32 G28 O16 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:292&r=all |