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We examine the effect of labor mobility on venture capital (VC) investment. Following the staggered adoption of the inevitable disclosure doctrine that restricts labor mobility, VCs are less likely to invest in affected states. This effect is more pronounced when human capital is more important to startups, when VC investment is more uncertain, and when VCs' monitoring costs are higher. The reduced innovation productivity of employees is a plausible underlying mechanism. To mitigate this adverse effect, VCs stage finance startups more and syndicate more with other VCs. Our paper sheds new light on the real effects of labor market frictions. [ABSTRACT FROM AUTHOR]

In this paper, we examine financial literacy in Singapore. Using data from the SKBI-GFLEC Sustainable Investment Survey, we find that approximately 40% of Singaporeans are financially literate. We also find that financial literacy is low among specific groups such as women, the less educated, and the unemployed. Moreover, we examine financial literacy across Environmental, Social, and Governance (ESG) literacy. We find that those with higher ESG knowledge are also more financially literate, showing that knowledge of these two different financial concepts is positively correlated. Finally, our results show that financial literacy can be linked to investment behavior which may affect financial well-being in the long run. [ABSTRACT FROM AUTHOR]

Rapid technological change – the digitalization and automation of work – is challenging contemporary welfare states. Most of the existing research, however, focuses on its effect on labor market outcomes, such as employment or wage levels. In contrast, this paper studies the implications of technological change for welfare state attitudes and preferences. Compared to previous work on this topic, this paper adopts a much broader perspective regarding different kinds of social policy. Using data from the European Social Survey, we find that individual automation risk is positively associated with support for redistribution, but negatively with support for social investment policies (partly depending on the specific measure of automation risk that is used), while there is no statistically significant association with support for basic income. We also find a moderating effect of the overall size of the welfare state on the micro-level association between risk and preferences. [ABSTRACT FROM AUTHOR]

We zero in on the expected returns of long-short portfolios based on 204 stock market anomalies by accounting for i) effective bid–ask spreads, ii) post-publication effects, and iii) the modern era of trading technology that began in the early 2000s. Net of these effects, the average anomaly's expected return is a measly 4 bps per month. The strongest anomalies net, at best, 10 bps after controlling for data mining. Several methods for combining anomalies net around 20 bps. Expected returns are negligible despite cost mitigations that produce impressive net returns in-sample and the omission of additional trading costs, like price impact. [ABSTRACT FROM AUTHOR]

Policymakers are liable to 'treasure what is measured' and overlook phenomena that are not. In an era of increased reliance on administrative data, existing policies also often determine what is measured in the first place. We explore this two-way interaction between measurement and policy in the context of the investment incomes and capital gains that are missing from the UK's official income statistics. We show that these 'missing incomes' change the established picture of economic inequality over the past decade, revealing rising top income shares during the period of austerity. The underestimation of these forms of income in official statistics has hidden the impact of tax policies that disproportionately benefit the wealthiest. We urge a renewed focus on how policy affects and is affected by measurement. [ABSTRACT FROM AUTHOR]

Research on the politics of social investment finds public opinion to be highly supportive of expansive reforms and expects this support to matter for the politics of expanding social investment. Expanding social investment, it is argued, should be particularly attractive to left-wing voters and parties because of the egalitarian potential of such policies. However, few studies have examined to what extent individual preferences concerning social investment really matter politically. In this paper, I address this research gap for the crucial policy field of childcare by examining how individual-level preferences for expanding childcare provision translate into voting behavior. Based on original survey data from eight European countries, I find that preferences to expand public childcare spending indeed translate into electoral support for the left. However, this link from preferences to votes turns out to be socially biased. Childcare preferences are much more decisive for voting the further up individuals are in the income distribution. This imperfect transmission from preferences to voting behavior implies that political parties could have incentives to target the benefits of childcare reforms to their more affluent voters. My findings help to explain why governments frequently fail to reduce social inequality of access to seemingly egalitarian childcare provision. [ABSTRACT FROM AUTHOR]

Amid rapid population ageing and the high-speed progress of information and communications technology, use of smart electronics can improve older people's quality of life by helping them to stay connected, active and independent, which may, in turn, increase their overall happiness and sense of social belonging. Taking a gender perspective, this paper aims to understand variations in digital exclusion among older people. Using data from the 2016 China Longitudinal Ageing Social Survey, it finds that digital exclusion seems to vary by gender, with rural female older people being most excluded, possibly because they have the lowest capital endowment. The gender difference in the digital divide is even more salient with all other things being equal. Digital exclusion in the information era may further exacerbate gender inequality, particularly for those who are already most vulnerable. Since digital inclusion is somewhat inherent in the concept of intelligent old-age support, it should be considered an urgent necessity to help older people, especially rural women, become familiar with smart electronic products. [ABSTRACT FROM AUTHOR]

Hand-collecting credit line drawdowns that firms classify as long-term debt, we first document how long-term drawdowns rise with high investment needs or weak external capital market conditions. Nearly all drawdown proceeds finance long-term investment, including M&A activity. Unrated and lower-rated firms rely more on long-term drawdowns than high or very poorly rated firms. We further find that credit lines have tighter covenants than terms loans. Drawdowns are repaid fairly quickly and often refinanced with other long-term debt. Our findings support the monitored liquidity insurance theory of credit lines and highlight that long-term drawdowns act as a valuable bridge financing mechanism. [ABSTRACT FROM AUTHOR]

Do limitations on commissions paid to financial advisers reduce prices of financial products and stimulate investment? I examine these questions by estimating the causal effects of regulating commissions for mutual fund distribution. I exploit the unique institutional setting in Israel and the 2013 policy change when the government reduced commissions differently for different fund types. The reform led to a major decline in fund expense ratios and a consequent increase in fund flows. Funds with price-sensitive investors experienced 35% larger inflows. I interpret these results as investor responses to price competition fostered by a reduction in distribution costs. [ABSTRACT FROM AUTHOR]

Technological change has squeezed the demand for middle-skill jobs, which typically involve routine-intense tasks. This squeeze has coincided with an increase in the number of part-time working individuals who wish to work more hours. We argue that these two trends are linked. Due to the decline of middle-skill employment, medium-educated workers shift into low-skill employment, increasing the supply of labour for jobs in this segment of the labour market. This pushes those dependent on these jobs to accept part-time jobs, even if these involve fewer hours than they prefer. To empirically assess this claim, we analyse involuntary part-time employment across 16 European countries between 1999 and 2010. Our analysis confirms that a decline in middle-skill employment is associated with an increase in involuntary part-time employment at the bottom end of the labour market. This finding implies that the automation of routine-intense labour worsens employment possibilities in this segment of the labour market. However, we show that training and job creation schemes mitigate this effect. These programmes cushion competition either by providing medium-educated workers with the necessary skills to shift into high-skill jobs or by increasing employment possibilities. Thus, governments have the tools to support workers facing challenges in the knowledge economy. [ABSTRACT FROM AUTHOR]

I study venture capital firms' (VCs) use of public market information and how attention to this information relates to private market investment outcomes. I link web traffic to public filings hosted on EDGAR to individual VCs. VCs analyze public information about industry peers before most deals. An increase in industry filing views relates positively to the probability of an exit through acquisition, suggesting that public information helps identify paths to acquisition. The effect is stronger when the VC has less access to private information, especially for low-reputation VCs. Policymakers should consider spillover effects on private markets when setting public disclosure requirements. [ABSTRACT FROM AUTHOR]

I construct a new proxy for Tobin's Q that incorporates the replacement cost of patent capital. This proxy, which I call patent Q , explains up to 62% more variation in investment than other proxies for Q. Furthermore, investment is more sensitive to patent Q than to other proxies for Q. Although investment is predicted more accurately by, and is more sensitive to, patent Q , controlling for patent Q leads to relatively larger, not smaller, cash flow coefficients. All results are stronger in subsamples with more patent capital. Overall, patent Q strengthens the historically weak investment– Q relation. [ABSTRACT FROM AUTHOR]

We find that an increase in a firm's incentives to use trade secrets to protect its intellectual property results in a more actively managed capital structure. Exploiting U.S. states' adoption of the Uniform Trade Secrets Act as a positive "shock" in the protection afforded to trade secrets, we find that firms covered by the Act reduce debt levels while increasing investments in intangibles. Additional tests suggest that firms fund these financing and investment activities by issuing more equity. Consistent with an increase in overall intangibility magnifying contracting problems with creditors, we find that covered firms experience higher costs of debt. [ABSTRACT FROM AUTHOR]

Using detailed data on company visits by Chinese mutual funds, we provide direct evidence of mutual fund information acquisition activities and the consequent informational advantages mutual funds establish in local firms. Mutual funds are more likely to visit local and nearby firms both in and outside of their portfolios, but the ease of travel between fund and firm locations can substantially alleviate geographic distance constraints. Company visits by mutual funds are strongly associated with both fund trading activities and fund trading performance. Our results show that geographic constraints and costly information acquisition amplify information asymmetry in financial markets. [ABSTRACT FROM AUTHOR]

Prior research finds that Dodd–Frank Act's regulations on credit rating agencies (CRAs) increase rated firms' risk of rating downgrades, regardless of their credit quality. Our difference-in-difference estimates suggest that after Dodd–Frank, low-rated firms, which face steep costs from a further downgrade, significantly reduce their debt issuance and investments compared to similar unrated firms. Our results are not driven by credit supply or the financial crisis. They reveal an unintended consequence of Dodd–Frank: Greater regulatory pressure on CRAs leads to negative spillover effects on firms concerned about credit ratings, regardless of their credit quality. [ABSTRACT FROM AUTHOR]

We introduce and test a firm-level innovation-efficiency measure new to the finance literature. The measure, termed the research quotient (RQ), defined as the firm-specific output elasticity of research and development (R&D), was first developed in the management literature. RQ has a low correlation with existing innovation input, output, and efficiency measures. We test RQ in a number of innovation tests common to the finance literature and find that RQ is robust in all tests of firm value, even after controlling for previous innovation measures. The results suggest that RQ may serve as a relevant complementary measure of a company's innovation. [ABSTRACT FROM AUTHOR]

The rise of stock indexing has raised concerns that index investing impedes arbitrage and degrades price discovery. This article uses Russell's reconstitution to identify the causal effect of index investing on information arbitrage and price discovery. Although index investing has no discernible effect on the ability of arbitrageurs to trade and impound news into the prices of large- and mid-cap stocks, we find that index investing increases the speed of price adjustment to news for micro-cap stocks. Our causal evidence identifies the relaxation of arbitrage constraints as a mechanism through which indexing facilitates informed trading for more arbitrage-constrained micro-cap stocks. [ABSTRACT FROM AUTHOR]

The increasing presence of for-profit service providers in publicly-funded eldercare has transformed care in Nordic welfare states which have a strong tradition of public care provision. Macro-level research on care policies has mainly focused on public institutions, national policies, and marketization. The financialization of eldercare has not received much scholarly attention, and existing studies mostly focus on the UK. The financialization of eldercare refers to the ways in which care is both a site of profit extraction and financial engineering. The Nordic system is relatively universal, and, with rapidly ageing demographics, there is a secured demand for eldercare services. However, these services have been heavily marketized over the past two decades, opening up lucrative possibilities for financialized actors who have established a stronghold over the markets. We analyse these processes through selected empirical examples from Finland, and argue that the financialization of eldercare in the Nordic context demands attention as we are witnessing a new configuration between the constitutional order of the welfare state, public finances, and private profit which is neither transparent, nor democratic. [ABSTRACT FROM AUTHOR]

We show that prior social connections can mitigate hold-up in bilateral relationships and encourage relation-specific investment and cooperation when contracts are incomplete. We examine vertical relationships and show that relation-specific innovative activities by suppliers increase with the existence and strength of prior social connections between the suppliers' managers and board members and those of their customers. To establish causality, we exploit connection breaches due to manager/director retirements or deaths and find that innovation drops for affected suppliers after the departure of socially connected individuals relative to unaffected suppliers. Our work sheds light on how social connections can shape firm boundaries. [ABSTRACT FROM AUTHOR]

Despite broad public support, investment in US infrastructure has not kept pace with growth, population shifts, and rising exposure to climate change risks. One explanation lies in politicians' electoral incentives: because, in the short term, voters see only the costs of investment and not its benefits, politicians have incentive to pander and spend less than what they or their fully informed constituents would prefer. Local newspapers could help reduce this constraint by increasing politicians' confidence that voters will receive information that justifies higher spending. In a survey experiment, we found that informing US city and county elected officials about news coverage of infrastructure failures increased support for a costly investment for those in competitive electoral settings. When motivated by reelection, politicians need the benefits of investment to be visible in order to justify its costs. Our results demonstrate the political importance of the nonpolitical news covered in local newspapers. [ABSTRACT FROM AUTHOR]

The year 2020 marked the 25th year since Bonny Norton published her influential TESOL Quarterly article, 'Social identity, investment, and language learning' (Norton Peirce, 1995) and the fifth year since we, Darvin and Norton (2015), co-authored 'Identity and a model of investment in applied linguistics' in the Annual Review of Applied Linguistics. From the time Norton's 1995 piece was published, investment and motivation have been conceptually imbricated and often collocated, as they hold up two different lenses to investigate the same reality: why learners choose to learn an additional language (L2). In our 2015 article, we made the case that while it is important to ask the question, 'Are students motivated to learn a language?' it is equally productive to ask, 'Are students invested in the language practices of the classroom or community?' (Darvin & Norton, 2015, p. 37). We recognize that the relationship between language teachers and learners is unequal, and that teachers hold the power to shape these practices in diverse ways. Teachers bring to the classroom not only their personal histories and knowledge, but also their own worldviews and assumptions (Darvin, 2015), which may or may not align with those of learners. Relations of power between learners can also be unequal. As Norton and Toohey (2011, p. 421) note: A language learner may be highly motivated, but may nevertheless have little investment in the language practices of a given classroom or community, which may, for example, be racist, sexist, elitist, anti-immigrant, or homophobic. Alternatively, the language learner's conception of good language teaching may not be consistent with that of the teacher, compromising the learner's investment in the language practices of the classroom. Thus, the language learner, despite being highly motivated, may not be invested in the language practices of a given classroom. [ABSTRACT FROM AUTHOR]

This article develops an account of demand-making and provides a novel framework for evaluating the demands and strategies of social movements. It explores three features of demands, arguing that they disclose social conditions, create constituencies, and set the horizons of the world that social movements seek to build. It does so by considering two feminist demands: the demand for wages for housework and for the socialization of housework. By revisiting revolutionary feminism in the 1970s, it contrasts two strategic perspectives articulated in debates about housework: what Selma James called the "perspective of winning" and what I call the "perspective of investment," a strategy for change that sees short-term reforms as investments in long-term transformations. In light of this, I endorse the demand to socialize housework as apt for the contemporary care economy and show how my account of demand-making contributes to the political theory of social movements by clarifying movement demands for "non-reformist reforms," such as defund the police. [ABSTRACT FROM AUTHOR]

Raising employment has been at the heart of EU strategies for over twenty years. Social investment, by now a widely debated topic in the comparative welfare state literature, has been suggested as a way to pursue this. However, there are only a couple of systematic comparative analyses that focus on the employment outcomes associated with social investment. Analyses of the interdependence of these policies with regard to their outcomes are even more scarce. We empirically analyse the extent to which variation in employment rates within 26 OECD countries over the period 1990-2010 can be explained by effort on five social investment policies. We additionally explore the role of policy and institutional complementarities. Using time-series cross-section analyses we find robust evidence for a positive association between effort on ALMPs and employment rates. For other policies we obtain mixed results. ALMPs are the only policies for which we observe signs of policy interdependence, which point at diminishing marginal returns. Additionally, our analysis demonstrates that the interdependence of social investment policies varies across welfare state regimes. Together, this indicates that the employment outcomes of social investment policies are also contingent on the broader framework of welfare state policies and institutions. [ABSTRACT FROM AUTHOR]

An introduction is presented in which editor discusses various articles within the issue on topics including history of Africans' proactive investments; diasporic themes of East African history in the period of decolonization and study of enslavement, and abolition.