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ispartof: JOURNAL OF POLICY ANALYSIS AND MANAGEMENT vol:42 issue:1 pages:35-59 status: published

© 2022 The Authors. Journal of Organizational Behavior published by John Wiley & Sons Ltd.Based on social cognitive theory (SCT), we develop and test a model that links ethical psychological climate to ethically focused proactive behavior (i.e., ethical voice and ethical taking charge) via two distinct mechanisms (i.e., duty orientation and moral potency). Results from multi-wave field studies conducted in the United States, Turkey, France, Vietnam, and India demonstrate that an ethical psychological climate indirectly influences employees' ethical voice and ethical taking charge behaviors through the dual mechanisms of duty orientation and moral potency. Additionally, we find that individuals' moral attentiveness strengthened these mediating processes. Together, these findings suggest that ethical psychological climate is an important antecedent of ethically focused proactive behavior by stimulating individuals' sense of duty and enhancing their moral potency, particularly when employees are already highly attuned to moral issues.

Climate finance is first and foremost a risk-management problem, which means three things for investors. First, prudent investors will seek to hedge climate change risk by reducing their exposure to this risk. Second, investors will demand compensation for holding this risk. Third, investors will engage with companies to urge them to reduce this risk if they are not adequately compensated for it. For companies, the main implication of climate-risk management by investors is that the companies with greater carbon emissions will have to pay a higher financial cost of carbon (FCC). In their new study described in this article, the authors undertake a comprehensive analysis of the risk compensation implications of exposing investors to carbon transition risk. They explore how corporate GHG emissions have affected the price-to-earnings (P/E) ratios of listed companies in Europe and the U.S. over the period 2016 to 2020. Their main finding is that financial markets are beginning to broadly discount companies whose high carbon emissions are viewed as subjecting them to higher levels of political and regulatory risk, and providing them with what amounts to a higher cost of capital. Although price-earnings ratios are generally lower for companies with higher emissions, the discount varies significantly by sector and across firm size, with larger companies experiencing the larger discounts. Although the carbon discount is similar in the U.S. and in Europe, the authors find significantly higher discounts in industries in Europe that are directly covered by carbon pricing through the EU ETS. They even find a small price discount on corporate debt for smaller issuers. Overall, what emerges is a clear pattern of investors' growing concern over climate risk, which translates into an increasingly material FCC for companies with high GHG emissions. This growing valuation discount for companies with high emissions should encourage them to progress further along their decarbonization path, which our results suggest have large financial as well as other social benefits.

ispartof: TIJDSCHRIFT VOOR ECONOMISCHE EN SOCIALE GEOGRAFIE vol:113 issue:3 pages:250-256 status: published

We find dealer-level evidence that recent regulation on the leverage ratio requirement causes deviations from covered interest parity. Our analysis uses a unique data set of currency derivatives with disclosed counterparty identities together with exogenous variation introduced by the U.K. leverage ratio framework. Dealers who are affected by the regulatory shock charge an additional premium of about 20 basis points per annum for synthetic dollar funding relative to unaffected dealers. This finding holds even after controlling for changes in clients' demand. Also, some clients increase their trading activity with unaffected dealers with whom they already had a preexisting relationship.

Globalization transforms not just the economics of production and exchange in the world, but also the political economy of public policies. We analyze how wine regulations, and more specifically planting rights restrictions, have been affected by globalization, in particular colonial expansions of wine producing empires. We study several historic cases and find that (a) planting right restrictions and compulsory uprooting of vineyards are introduced to deal with falling wine prices as colonial wine production takes off and expands; (b) that enforcement of the restrictions and uprooting was difficult and often imperfect; and (c) that there was a strong persistence of the policies: after their introduction the restrictions remain in place for a long time (often centuries) and they are only removed after major shocks to the political economy equilibrium.

ispartof: AGRICULTURAL ECONOMICS vol:53 issue:6 pages:968-975 status: published

Research Summary The growth of emerging economies has attracted R&D investments by multinational enterprises, but firms have struggled to protect their knowledge assets in these environments with weak intellectual property rights protection. Knowledge misappropriation may be reduced if firms use cross-unit R&D teams to strengthen intra-firm interdependencies and control. We examine the relationship between such internal linkage strategies, foreign R&D investments, and firm market valuation in a dynamic market valuation model for 117 leading multinational firms. While foreign R&D investments are positively associated with market value, IP risks in host countries reduce it. The latter effect disappears if firms have developed a pronounced internal linkage strategy in weak IP environments. Linkage strategy bears costs and, in the absence of IP risks, is negatively associated with market value.Managerial Summary The growing market potential of emerging economies has led to an increase in research & development (R&D) activities there by multinational firms. A known challenge to multinational R&D investors in these economies is the weak protection of intellectual property rights (IPR). Firms may seek to reduce the risks of local knowledge spillovers and IPR infringement by actively embedding internal linkages in the organization of R&D and relying on cross-unit international R&D teams. We examine the consequences of such an internal linkage strategy for the performance effects of firms' investments in weak IPR countries. Based on an analysis of 1763 cross-border R&D investments by 117 leading multinational firms, we find that a firm's market value is negatively affected by new R&D investments in weak IPR countries, but that such a negative influence can indeed be mitigated if the firm's R&D organization embeds internal linkages. Consistent with this observation, we demonstrate that firms with an internal linkage strategy are able to limit local knowledge outflows in weak IPR environments. However, if an internal linkage strategy is applied in strong, rather than weak, IPR environments, it bears substantial costs and negatively affects performance.

ispartof: JCMS-JOURNAL OF COMMON MARKET STUDIES vol:60 issue:5 pages:1530-1531 status: published

This paper provides a systematic literature review of studies investigating the effect of an intervention on the efficiency of a decision-making unit, when efficiency is computed using nonparametric frontier approaches. This paper offers a guide for future research by identifying patterns in (1) the fields of application, (2) applied efficiency models, and (3) analysis of efficiency determinants. Our findings indicate that, despite the prominent role of frontier techniques in the analysis of public sector performances and the importance of the effectiveness and the policy perspective, these two approaches have long been kept separate. Nevertheless, the combination of efficiency and effectiveness is fundamental to evaluate public interventions and to detect inefficiencies at the policy level, especially in key sectors such as education, health, and environment.

The expansion of artisanal gold mining has contributed to agrarian change in most of the global South—including West Africa: the sector offers interesting examples of technological and socio‐econom ...

Do credit ratings help enforce market discipline on banks? Analyzing a uniquely comprehensive data set consisting of 1,081 rating change announcements for 154 international financial institutions between January 2004 and December 2015, we find that rating downgrades for internal reasons, such as adverse changes in the operating performance or capital structure of banks, are associated with a significant credit default swap spread widening. However, this widening only occurs for banks that are not perceived as to be Too-Big-to-Fail (TBTF). Our findings question the reliability of credit ratings as a tool to discipline TBTF banks and suggest that regulatory monitoring should remain the main mechanism for disciplining these banks.

Applying qualitative and quantitative analyses across four studies and seven samples, we clarified the meaning and developed a new measure of career insecurity. Career insecurity is defined as ���an individual���s thoughts and worries that central content aspects of one���s future career might possibly develop in an undesired manner.��� The new Multidimensional Career Insecurity Scale (MU-CI-S) measures eight career insecurity (CI) dimensions: (1) CI-Career opportunities, (2) CI-Decreased prestige and qualification requirements of the employment, (3) CI-Contractual employment conditions, (4) CI-Unemployment, (5) CI-Change of workplace, (6) CI-Retirement, (7) CI-Work-nonwork interactions, and (8) CI-Discrepancy between individual resources and work demands. Across all studies, the MU-CI-S showed excellent psychometric properties (e.g., factor loadings of all items and internal consistencies of all dimensions) and high levels of construct validity (e.g., theoretically assumed factorial structure and discriminant and convergent validity). Moreover, the analyses showed concurrent, predictive, and incremental validity beyond neuroticism and other job and career insecurity measures for predicting health and well-being, job performance, career success, and career attitudes. The results provide a comprehensive assessment and investigation of career-related insecurity perceptions in the current labor market. Moreover, the results offer theoretical and practical implications for individual career planning, career counseling, and organizational career management.

We study a symmetric private value auction with signaling, in which the auction outcome is used by an outside observer to infer the bidders' types. We elicit conditions under which an essentially unique D1 equilibrium bidding function exists in the second-price and the English auctions. We establish there is no equivalence between these two auction designs, neither in bidding strategies nor in expected revenue. This is because the presence or the absence of an increasing price clock affects signaling incentives differently in both auction formats, and thereby also the bidders' incentives to overbid their types. This leads to a strictly higher expected revenue in the second-price auction than in the English auction. Our analysis is completed by a comparison with other disclosure policies. Applications include art auctions and charity auctions.

ispartof: TIJDSCHRIFT VOOR ECONOMISCHE EN SOCIALE GEOGRAFIE vol:112 issue:2 pages:101-106 status: published

Research Summary: Variance decomposition methods allow strategy scholars to identify key sources of heterogeneity in firm performance. However, most extant approaches produce estimates that depend on the order in which sources are considered, the ways they are nested, and which sources are treated as fixed or random effects. In this paper, we propose the use of an axiomatically justified, unique, and effective solution to this limitation: the “Shapley Value” approach. We show its effectiveness compared to extant methods using both simulated and real data, and use it to explore how the importance of business group effects varies with group diversification and internationalization in a large, representative sample of European firms. We thus demonstrate the method's superior accuracy and its usefulness in asking and answering new questions. Managerial Summary: A key contribution of strategic management research to managerial practice is identifying drivers of firm performance that operate at firm, corporation, industry, and national levels. A branch of this research measures the relative importance of factors at these different levels in producing variation in firm performance, thus helping top managers focus efforts on aspects of their businesses most likely to yield performance differences. However, estimates produced by extant methods are sensitive to method used, and to modeling choices made. This paper proposes the use of the “Shapley Value” approach, which is free from such sensitivity, shows its effectiveness compared to extant methods, and uses it to explore how the importance of factors at the level of the business group varies with group diversification and internationalization.

We study the impact ofQuickpay, a federal reform that indefinitely acceleratedpayments to small business contractors of the U.S. government. We find a strong di-rect effect of the reform on employment growth at the firm-level. Importantly, how-ever, we also document substantial crowding out of non-treated firms’ employmentwithin local labor markets. While the overall net employment effect was positive,it was close to zero in tight labor markets – where crowding out was stronger. Ourresults highlight an important channel for alleviating financing constraints in smallfirms, but also emphasize the general-equilibrium effects of large-scale interventions,which can lead to lower aggregate outcomes depending on labor market conditions.

Research Summary: This study explores the impact of parent university linkages on the market performance of university spin-off firms (USOs). We argue that spin-offs' performance is not only affected by competencies inherited from their parent universities at start-up but also by linkages maintained over time. We longitudinally study 551 USOs established between 2000 and 2008 in Italy. Using estimations that account for attrition and endogeneity, we find that equity-based university linkages increase USOs' market performance and that geographical proximity strengthens this effect. Furthermore, increasing technological ties between USOs' entrepreneurial teams and their parent universities has a detrimental effect on performance, especially for companies that remain geographically proximate to their parent universities. The results have implications for theory and practice related to strategic linkages, alliances, and academic entrepreneurship. Managerial Summary: This study explores the extent to which university spin-off firms (USOs) benefit from maintaining linkages with their parent universities over time. We study 551 USOs established between 2000 and 2008 in Italy, assessing their market performance (i.e., sales revenues) up to 2012. We find that USOs that maintain equity shares with their parent universities have better market performance. This positive effect is stronger for USOs located near their parent universities. In contrast, USOs that maintain close technological ties to their parent universities have worse market performance, especially if located near their parent universities. These findings are relevant to policymakers, university managers, and academic entrepreneurs interested in understanding how to effectively design and manage the different linkages between USOs and their parent universities.

Research on a topic as intricate as climate change and adaptation can be seen as a complex ecosystem combining thousands of projects by a large set of actors. This article studies the EU Seventh Framework Program funded projects to understand how research has been funded and managed in Europe to develop a specific knowledge ecosystem around climate change and adaptation. The theoretical background offers an overview of the topics of climate change and knowledge ecosystems. The research projects database was used to construct and make sense of a complex ecosystem. A synthetic description of the technical work conducted and the results obtained are presented. The data is analyzed using social network analysis to provide evidence of structural characteristics of the networks, the relevance of different sub-domains in climate change and adaptation research, and the emergence of entrepreneurial ecosystems through knowledge. Foundation for Science and Technology [SFRH/BD/117398/2016, DL57/2016/CP1341/CT0013]

Much to the liking of many geographers, Forbes Magazine’s contributor and professor in meteorology at the University of Georgia, J. Marshall Shepherd, wrote in early March 2020 an op‐ed titled ‘Why Geography is a key part of fighting the COVID‐19 Coronavirus outbreak’. In Wired, David Wolman (2020) wrote how the pandemic is redefining our relationship with space in a contribution titled ‘Amid a Pandemic, Geography Returns with a Vengeance’. Notwithstanding the many challenges that the Covid‐19 pandemic poses, both in our private lives and in our professional activities, it offers a great opportunity for analysis through a geographic lens. Geographical knowledge and geospatial data, perhaps best exemplified by the widely used Johns Hopkins University COVID‐19 tracking website, have already proven to be vital for understanding the pandemic’s reach. The uneven distribution of the virus across and within countries raises inherently geographic questions regarding the political, economic, financial, socio‐cultural and demographic dimensions of the pandemic. The aim of this special issue of Tijdschrift voor Economische en Sociale Geografie (TESG) is to present the initial investigations of geographers and socio‐spatial scientists into the emerging spaces of the effects of the COVID‐19 pandemic. Following a call, we have received well over 40 papers, thereby exceeding our expectations. After internal and external review of the papers we here present the papers that were selected for publication. We are thankful to the reviewers who provided fast, yet detailed, feedback on the papers. In addition, we would like to thank Grace Ong, Senior Journals Publishing Editor at Wiley, and Noel Valdivia, Production Editor, for their support in the publication of this special issue. The papers in this special issue present an interesting geographical mix (with case studies from Asia, Europe and the North America) as well as a variety of methodological approaches towards understanding the spatial manifestations and variegated geographic impact of the pandemic. Furthermore, they well represent the different thematic fields in geography. The editors of TESG welcome more papers on the consequences of the COVID‐19 pandemic, which we will have reviewed as we do with any other paper. We will not be able to fast‐track new submissions but we will publish new papers online in ‘Early View’ soon after they have been accepted for publication. Future papers on COVID‐19 will also be added to a Virtual Special Issue, which will consist of all papers published in this issue together with new papers on the geography of the pandemic. As much as possible we aim for the open access publication of these papers. The papers in this special issue are grouped by theme and in the remainder of this editorial we will briefly introduce these different themes.

Asset returns incorporate new information via the effects of independent and possibly identically distributed random shocks. They may also incorporate long memory effects related to the concept of self‐similarity. The two approaches are here combined. In addition, methods are proposed for estimating the contribution of each component and evidence supporting the presence of both components in both the physical and risk‐neutral distributions is presented. Furthermore, it is shown that long‐horizon returns may be nonnormal when there is a self‐similar component. The presence of a self‐similar component also questions positive equity biases over the longer term.

Default risk significantly affects the corporate policies of a firm. We develop a model in which a limited liability entity subject to default at an exponential random time jointly sets its dividend policy and capital structure to maximize the expected lifetime utility from consumption of risk‐averse equity investors. We give a complete characterization of the solution to the singular stochastic control problem. The optimal policy involves paying dividends to keep the ratio of firm's equity value to investors' wealth below a critical threshold. Dividend payout acts as a precautionary channel to transfer wealth from the firm to investors for mitigation of losses in the event of default. Higher the default risk, more aggressively the firm leverages and pays dividends.

Religious organizations are social systems operating in a complex and changing environment. By looking to an authority beyond themselves, religious organizations have comparatively little control over defining their own goals. In this juggling between sticking to the ultimate goal of an organization and adapting to complex changing environments, that is, in the juggling between tradition and renewal, transformational leadership seems to play an important role in religious organizations. The extensive body of literature on transformational leadership has focused more on the outcomes of transformational leadership than on its antecedents. We extend the existing literature by linking managers' motivation to their transformational leadership behaviors in a religious organization. More specifically, we examined the associations of intrinsic and prosocial motivation with transformational leadership, and we investigated the relationship between transformational leadership and innovation among 252 managers in the largest nonprofit organization in Norway, the Church of Norway. Analyses in structural equation modeling revealed a positive relationship between intrinsic motivation and transformational leadership, whereas the relationship between prosocial motivation and transformational leadership was not significant. Transformational leadership was positively associated with innovation. Based on the results of the study, we discuss practical implications regarding how to support intrinsic motivation, transformational leadership, and innovation in religious organizations. (Less)

Co-ordinating collective work and communicating a shared understanding of tasks is necessary to accomplishing organizational goals. Stigma could exacerbate co-ordination challenges between public and private organizations by further widening differences in goals and incentives among employees. Using relational co-ordination theory, we explore how stigma can influence employee behaviour in the context of healthcare delivery. We study healthcare professionals and frontline workers involved in the fight against AIDS in India to examine how public health systems fail due to a lack of communication and co-ordination, and that these failures are worsened by stigma. When stigma is present, relationships between employees become strained due to misaligned work routines, lack of information sharing and cooperation failure. Our findings reveal emergent responses from frontline employees that mitigate co-ordination failures through: (1) role adaptation to improve predictability of tasks; (2) social purpose identification to promote a common understanding and engage stigmatized clients; and (3) affective attachment that encourages extra-role behaviours and task ownership. We draw implications for relational co-ordination and stigma, as well as public-private co-ordination in public health systems.

ispartof: JCMS-JOURNAL OF COMMON MARKET STUDIES vol:60 issue:1 pages:204-223 status: published

This study provides evidence of health and insurance coverage disparities between the cisgender and transgender US populations using repeated cross sections from the 2014-2020 Behavioral Risk Factors Surveillance Systems. The analysis tests whether increasing the incidence of insurance coverage among transgender people could alleviate the health disparity. The empirical approach uses a fuzzy regression discontinuity design that leverages breaks in government health assistance eligibility by age. Results indicate that, for transgender recipients only, insurance coverage meaningfully improves mental health; for cisgender recipients only, insurance coverage reduces difficulties with concentration and memory; and for both the transgender and cisgender populations, insurance coverage contributes to important improvements in physical health, overall health, and healthcare access.

Previous research into public support for welfare solidarity often refers to the importance of ‘reciprocity’, which means that generous social benefits are supported if they are matched by credible commitments to contribute by those who can. The current article adds to this body of literature by providing novel empirical evidence on the roles of generosity and conditionality in support for European unemployment insurance programmes. Drawing on a conjoint survey experiment in 13 European countries, we show that Europeans may be motivated by an ethos of reciprocity, since policy proposals that are both generous and conditional are the most popular among the general population. However, conditional generosity seems to have much more traction among those who consider the unemployed as undeserving, suggesting that EU-level policies may succeed in overcoming the diffidence of welfare sceptics if reciprocity is ensured in the architecture of the policy design. published

Swift response models are vital tools for emergency assistance agencies. The COVID-19 pandemic revealed the lack of economic models for short-run policy relevant research to anticipate local impacts and design effective policy responses. The most direct effects of the pandemic and lockdown tended to be concentrated in urban areas; however, markets quickly transmitted impacts to rural areas as well as among poor and non-poor households. General equilibrium modeling is a tool of choice to capture indirect, spillover effects of exogenous shocks. This article describes an unusual micro general-equilibrium (GE) modeling approach that we developed to quickly simulate impacts of the pandemic and lockdowns on poor and non-poor rural and urban households across sub-Saharan Africa. Monte Carlo bootstrapping was used to construct four stylized regional GE models from 34 existing local economy-wide impact evaluation (LEWIE) models. Simulations revealed that the pandemic and policy responses to curtail its spread were likely to affect rural households at least as severely as urban households. Simulated income losses are greater in poor households in both urban and rural settings. These findings are relatively consistent across models spanning sub-Saharan Africa. Because COVID-19 impacts are so far-reaching, all types of economies experience downturns. Our research underlines the importance of modeling assumptions. We find total annualized impacts of around a 6-percent loss of GDP, smaller than estimates from single-country models that ignore price effects, such as SAM-multiplier models, but in line with The World Bank's baseline forecast of a 5.2% contraction in global GDP in 2020. The largest negative impacts are on poor rural households. Published version

ispartof: ECONOMIC NOTES vol:51 issue:1 status: published

Prominent features of differentiated product markets are segmentation and product proliferation blurring the boundaries between segments. I develop a tractable demand model, the Ordered Nested Logit, which allows for asymmetric substitution between segments. I apply the model to the automobile market where segments are ordered from small to luxury. I find that consumers, when substituting outside their vehicle segment, are more likely to switch to a neighboring segment. Accounting for such asymmetric substitution matters when evaluating the impact of new product introduction or the effect of subsidies on fuel‐efficient cars. Discrete choice model Generalized Extreme Value Ordered Nested Logit D11 D12 L62 M3

ispartof: JCMS-JOURNAL OF COMMON MARKET STUDIES vol:60 issue:2 pages:463-479 status: published