Sentiment analysis and the impact of employee satisfaction on firm earnings

Prior text mining studies of corporate reputational sentiment based on newswires, blogs and Twitter feeds have mostly captured reputation from the perspective of two groups of stakeholders – the media and consumers. In this study we examine the sentiment of a potentially overlooked stakeholder group, namely, the firm’s employees. First, we present a novel dataset that uses online employee reviews to capture employee satisfaction. We employ LDA to identify salient aspects in employees’ reviews, and manually infer one latent topic that appears to be associated with the firm’s outlook. Second, we create a composite document by aggregating employee reviews for each firm and measure employee sentiment as the polarity of the composite document using the General Inquirer dictionary to count positive and negative terms. Finally, we define employee satisfaction as a weighted combination of the firm outlook topic cluster and employee sentiment. The results of our joint aspect-polarity model suggest that it may be beneficial for investors to incorporate a measure of employee satisfaction into their method for forecasting firm earnings

External sources of clean technology: evidence from the clean development mechanism

New technology is fundamental to sustainable development. However, inventors from industrialized countries often refuse technology transfer because they worry about reverse-engineering. When can clean technology transfer succeed? We develop a formal model of the political economy of North–South technology transfer. According to the model, technology transfer is possible if (1) the technology in focus has limited global commercial potential or (2) the host developing country does not have the capacity to absorb new technologies for commercial use. If both conditions fail, inventors from industrialized countries worry about the adverse competitiveness effects of reverse-engineering, so technology transfer fails. Data analysis of technology transfer in 4,894 projects implemented under the Kyoto Protocol’s Clean Development Mechanism during the 2004–2010 period provides evidence in support of the model

So close, yet so far away? the effects of city size, density, and growth on local civic participation

Recent studies in the U.S. context have suggested that political participation is a function of the size and concentration of a city’s population. Most of this research focuses on the idea that there is an optimal size and concentration of population that favors active political participation in terms of a higher propensity to vote in local elections, contact local officials, and attend community meetings. The conventional argument suggests a negative relationship between city size and political participation that is mitigated to some extent by the deeper social interactions generated by increased population density. We extend this research by also investigating the influence of population growth on the broader concept of civic participation. Civic participation is a multidimensional concept that requires the use of a broad set of indicators. We expand the number of measures to gauge civic participation at the local level by including data on the formation of volunteer associations, volunteer fire brigades and not-for-profit organizations as well as voter turnout. We test the hypotheses derived from extant research using aggregate data collected from Portuguese cities and discuss the implications of our findings for the literature on local civic participatio

Sometimes You Cannot Have It All: Party Switching and Affiliation Motivations as Substitutes

Existing research on when legislators switch parties reports inconsistent results about motivations for switching (e.g., office, ideology, and votes). I treat the motivations for party switching as substitutes and argue that many of the inconsistencies that persist can be explained by modelling the interactive effects between these motivations. For example, scholars differ in terms of whether they find that electoral considerations are an important determinant of party switching. The conflicting findings on the independent effects of electoral considerations are explained here by demonstrating that these effects are conditional on the level of office benefits a legislators enjoys, as well as the ideological distance between the legislator and party. More generally, the empirical analysis provides strong support for the substitution effect hypothesis. Thus, modelling interactive effects increases our understanding of party switching

Revenue decentralization, central oversight and the political budget cycle : evidence from Israel

This paper examines whether revenue decentralization and direct external financial supervision affect the incidence and strength of political budget cycles, using a panel of Israeli municipalities during the period 1999-2009. We find that high dependence on central government transfers—as reflected in a low share of locally raised revenues in the municipality’s budget—exacerbates political budget cycles, while tight monitoring—exercised through central government appointment of external accountants to debt accumulating municipalities—eliminates them. These results suggest that political budget cycles can result from fiscal institutions that create soft budget constraints: that is, where incumbents and rational voters can expect that the costs of pre-election expansions will be partly covered later by the central government

Election proximity and representation focus in party-constrained environments

Do elected representatives have a time-constant representation focus or do they adapt their focus depending on election proximity? In this article, we examine these overlooked theoretical and empirical puzzles by looking at how reelection-seeking actors adapt their legislative behavior according to the electoral cycle. In parliamentary democracies, representatives need to serve two competing principals: their party and their district. Our analysis hinges on how representatives make a strategic use of parliamentary written questions in a highly party-constrained institutional context to heighten their reselection and reelection prospects. Using an original data set of over 32,000 parliamentary questions tabled by Portuguese representatives from 2005 to 2015, we examine how time interacts with two key explanatory elements: electoral vulnerability and party size. Results show that representation focus is not static over time and, in addition, that electoral vulnerability and party size shape strategic use of parliamentary questions