nep-sbm New Economics Papers
on Small Business Management
Issue of 2016‒03‒10
eight papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Essay on the State of Research and Innovation in France and the European Union By Antoine Kornprobst
  2. Does Mental Health Matter for Firm Performance? Evidence from longitudinal Japanese firm data By KURODA Sachiko; YAMAMOTO Isamu
  3. Firm Entry and Macroeconomic Dynamics: A State-level Analysis By Gourio, Francois; Messer, Todd; Siemer, Michael
  4. Innovation decision of Tunisian service firms: an empirical analysis By Hanen SDIRI; Mohamed AYADI
  5. Audit Fees in Family Firms: Evidence From U.S. Listed Companies By Chiraz Ben Ali; Cédric Lesage
  6. Firm Dynamics and Employment Protection: Evidence from Sectoral Data By A. Bottasso; M. Conti; G. Sulis
  7. Bank Lending Technologies and SME Credit Rationing in Europe in the 2009 Crisis By Giovanni Ferri; Pierluigi Murro; Zeno Rotondi
  8. Watercooler chat, organizational structure and corporate culture By Newton, Jonathan; Wait, Andrew; Angus, Simon D.

  1. By: Antoine Kornprobst (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Innovation in the economy is an important engine of growth and no economy, whatever its complexity and degree of advancement, whether it is based on industry, agriculture, high tech or the providing of services, can be truly healthy without innovating actors within it. The aim of this work, done by an applied mathematician working in finance, not by an economist or a lawyer, isn't to provide an exhaustive view of the all the mechanisms in France and in Europe that aim at fostering innovation in the economy and to offer solutions for removing all the roadblocks that still hinder innovation; indeed such a study would go far beyond the scope of this study. What I modestly attempted to achieve in this study was firstly to draw a panorama of what is working and what needs to perfected as far as innovation is concerned in France and Europe, then secondly to offer some solutions and personal thoughts to boost innovation.
    Keywords: Law and Economics,Financial Markets,Financial institutions,Innovation,Start-up Creation
    Date: 2016–01
  2. By: KURODA Sachiko; YAMAMOTO Isamu
    Abstract: This study focuses on firms' profit rate, instead of This study focuses on firms' profit rate, instead of conventional self-reported subjective indices, to objectively assess the total impact of employees' mental illness on firm performance. We found the following results from a unique data set obtained by linking Japanese firms' 2004-2014 financial data to longitudinal information on their workers' mental health. First, long work hours have a small but significant effect on employee' mental health. Second, firms with higher sick leave or turnover rate of employees with mental disorders tend to have lower annual profit rates even after controlling for unobservable firm heterogeneity. These findings imply that the percentage of employees who take sick leave or leave firms due to bad mental health is the tip of the iceberg and should be considered as a proxy variable for the mental health of a firm's employees. Third, the negative effect of workers' bad mental health on firm performance is greater for firms with high fixed employment costs. These facts indicate that keeping employees' mental health in good condition is beneficial not only for employee welfare but also from a business perspective.
    Date: 2016–03
  3. By: Gourio, Francois (Federal Reserve Bank of Chicago); Messer, Todd (Federal Reserve Bank of Chicago); Siemer, Michael (Board of the Governors of the Federal Reserve System)
    Abstract: Using an annual panel of U.S. states over the period 1982-2014, we estimate the response of macroeconomic variables to a shock to the number of new firms (startups). We find that these shocks have significant effects that persist for many years on real gross domestic product, productivity and population. This is consistent with simple models of firm dynamics where a “missing generation” of firms affects productivity persistently.
    Keywords: Business cycles; Firms entry; Firms dynamics; Gross Domestic Product; macroeconomics; productivity; population
    JEL: E31 E32 L1 L16
    Date: 2016–01–31
  4. By: Hanen SDIRI; Mohamed AYADI
    Date: 2016–02–18
  5. By: Chiraz Ben Ali; Cédric Lesage
    Date: 2016–02–18
  6. By: A. Bottasso; M. Conti; G. Sulis
    Abstract: In this paper we analyse the impact of employment protection legislation (EPL) on firms’ entry and exit rates for a large sample of industries of thirteen countries selected from the most recent version of the OECD Structural and Business Statistics Database. Using a differences-in-differences identification strategy, we find that more stringent EPL is associated to lower entry and exit rates, particularly in industries characterized by higher job reallocation intensity. We also find that both collective and individual dismissal regulations reduce firms’ entry and exit rates. Interestingly, our results suggest that the negative effects of EPL is stronger in the case of firms between one and nine employees while, in the case of larger ones, results are not clear-cut. An extensive sensitivity analysis confirm the robustness of our findings.
    Keywords: entry & exit, turnover, employment protection legislation, reallocation
    JEL: J65 L11 L26
    Date: 2016
  7. By: Giovanni Ferri (LUMSA University); Pierluigi Murro (LUMSA University); Zeno Rotondi (UniCredit Bank)
    Abstract: The first wave of the global financial crisis hit Europe in the last part of 2008 and through 2009. With banks in a tailspin, credit rationing intensified – as measured in various different ways – particularly for the small and medium sized enterprises (SMEs). The extent of such retrenchment in the supply of credit could reflect not only the worsened general condition of the European banks but also vary at the micro level depending on the lending technologies being used in the SME-main bank rapport. Using the EFIGE database, we examine SME credit rationing in seven EU countries (Austria, France, Germany, Hungary, Italy, Spain and the UK) and try to assess the extent to which differences in the lending technologies and in the status of the firm-main bank relationship contributed to the phenomenon. We find that a firm matching with a bank using the transactional lending technology was more likely to end up rationed for credit during the first part of the financial crisis.
    Keywords: Bank-Firm Relationships, Asymmetric Information, Credit Rationing.
    JEL: G21 D82 G30
    Date: 2016–02
  8. By: Newton, Jonathan; Wait, Andrew; Angus, Simon D.
    Abstract: Modeling firms as networks of employees, occasional collaborative decision making around the office watercooler changes long run employee behavior (corporate culture). The culture that emerges in a given team of employees depends on team size and on how the team is connected to the wider firm. The implications of the model for organizational design are explored and related to empirical research on communication, innovation, the size and decision making of corporate boards and trends in the design of hierarchical structures.
    Keywords: Shared intentions; hierarchies; teams; delayering; networks; corporate boards
    Date: 2016–02

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