The impact of Dutch works councils according to managers

Although works councils have, by and large, equally extensive legal rights in Germany and the Netherlands, this is the first econometric analysis that investigates the influence of Dutch works councils on firm performance. We use a nation-wide Dutch dataset with information on management’s perceptions of the works council’s impact on their firms’ efficiency and innovation. Inspired by the German study of Jirjahn and Smith (2006), we analyze which determinants influence management’s attitude toward employee participation in the Netherlands. We establish a preponderant influence emanating from the works council’s role attitude and management’s leadership style.works councils, managerial response, effectiveness, efficiency, innovation

Validity and reliability of the (adjusted) Impact on Participation and Autonomy questionnaire for social-support populations

Abstract Background Decentralisation of social support and budget cuts spurred interest in outcome-oriented payment systems in the Netherlands. Hence, measurement of relevant outcomes, such as self-reliance and participation, is needed. The Impact on Participation and Autonomy (IPA) questionnaire for rehabilitation clients was adapted for social support, called IPA-MO, and its validity and reliability were tested among social support clients in eight municipalities in 2014 and 2016. Methods The total research sample comprised of 4120 persons. Homogeneous subgroups were distinguished based on 1) disability and 2) age. Exploratory factor analysis (PCF) was used to identify domains for IPA-MO. Model fit was assessed with Confirmatory Factor Analysis (CFA) using structural equation modelling. Results PCF revealed that the IPA-MO model consists of all five original IPA domains: Autonomy indoors, Family role, Autonomy outdoors, Social life and relations, and Work and education. As a result of new items added, a new, sixth domain was developed: Financial autonomy. Due to high non-response on Work & education, construct validity was first tested for a five-domain IPA-MO model. The composition of the IPA-MO domains showed slight differences: the item on ‘mobility indoor’ shifted from Autonomy indoors (IPA) to Family Role in IPA-MO. The item on reciprocity shifted from Social Life and relations (IPA) to Autonomy outdoors (IPA-MO). Internal reliability was confirmed for all domains (Cronbach’s alpha >.80). CFA showed acceptable construct validity of the five-domain IPA-MO model for the social support population (CFI .936, TLI .925, SRMR .051), all age groups and most disability-based groups. Construct validity including Work & education was tested for 234 participants. Then, PCF revealed six domains and the model fit was acceptable (CFI .915, TLI .903, SRMR .067). Conclusions IPA-MO is a valid and reliable instrument to assess outcomes of social support. Further research on the domain Financial autonomy is needed. Social-support clients are numerous and dispersed and, in spite of the best intentions, hard to involve widely in policy processes. A valid outcome measure offers municipalities possibilities to gain insight in social costs and benefits of new policies. Outcome measurement also allows to contract bundled-services of providers, thereby changing the incentives for providers from increasing production to much needed innovation. Taking the perceptions of autonomy and participation of social-support clients as the acid test for the effectiveness of social support policies, may prove a serious game-changer in politics

Measuring participation of social-support clients: validity and reliability of IPA-MO

This study evaluates the reliability and validity of the Impact on Autonomy and Participation instrument (IPA) for heterogeneous populations of social support clients. Decentralisation of social support and accompanying budget cuts spurred interest in outcome-related payment systems to foster efficiency of social support. This prompted the need to have insight in outcomes of social support, defined as 'self reliance and participation'. Eight municipalities in different parts of the Netherlands used an adapted version of IPA (IPA-MO) to collect self-reported outcome measures among cohorts of inhabitants receiving social or income support. Participants included people with mild physical, severe physical, cognitive or mental impairments and people depending on income support. Survey data were combined in a single database (N=4.120). Multivariate analysis was used to analyse reliability and validity of IPA-MO. The original IPA model distinguished five scales ('participation domains'): Autonomy indoors, Family Role, Autonomy outdoors, Social life and Work & education, each scale loading on a separate factor. Due to high non-response on Work & education, our analysis mostly focused on the remaining four scales. These were confirmed, with minor changes, for IPA-MO. Financial autonomy was found as a new participation domain, composed by two new items added to the original single one. Five items of the original IPA were eliminated for duplicity and high correlation with other items. Confirmatory factor analysis confirmed construct validity of the five-scale IPA-MO model (CFI .936, TLI .925, SRMR .051). Internal reliability was confirmed for all scales (Cronbach alpha >.80, item-test correlation >.50 for all items). Exploratory factor analysis revealed a four-factor structure, with two scales (Family role and Autonomy outdoors) located on one factor. Yet, model fit is better when treated as separate scales. Two approaches to create more homogeneous groups were tested: impairment-based and age-based groups. The IPA-MO model as found for total research population, proved valid for both types of groups. The Work & education scale was tested for a small number of participants (N=234). One item was eliminated for duplicity. Exploratory factor analysis showed six scales loading onto six factors. Model fit was acceptable (CFI .915, TLI .903, SRMR .067) We conclude that the IPA-MO model is a valid and reliable instrument for local governments to assess participation of heterogeneous social-support populations. Further research is needed to test if Financial autonomy sufficiently covers clients' perspectives

Changes in Female Labour Supply in the Netherlands 1989–1998 : The Case of Married and Cohabiting Women

It is well-known that married and cohabiting women differ in labour supply. But we know very little about the causes of this difference. Is it due to differences in characteristics, like age, presence and ages of children, own net wage rate, and net income of the partner? Or is it a difference in behaviour that – even after controlling for variation in characteristics – is the basic cause? In this article we try to answer these questions for Dutch married and cohabiting women. We use data of national surveys by Statistics Netherlands for 1989 and 1998. This also allows us to investigate whether there have been important changes in the last decade. Because we are able to compare the results with those of an analogous analysis that two of the authors did on similar Dutch data for 1981 we are able to draw conclusions about changes that took place over the last twenty years. The results show that the massive growth in female labour force participation is especially due to the growth in participation by married women. A slight decrease in labour market participation of cohabiting women can be observed in the last decade. This seems to be the result of cohabitation becoming more normal, including cohabitation when there are young children in the household.

Goodwill, Excess Returns, and Determinants of Value Creation and Overpayment

In this article we have investigated whether the determinants of excess returns (especially of target excess returns) are valid for purchased goodwill as well. Among them are acquirer's and target's Tobin's q, and debt assets ratio, that explain value creation of acquisitions, and relative size, source of financing of the acquisition, number of bidders, and relatedness of businesses of acquiror and target, that explain overpayment or overvaluation of acquisitions. The study is confined to mergers and acquisitions between US publicly quoted companies announced and effective in between January 2002 and December 2005. Databases used are SDC Platinum, CRSP and Compustat industrial annual file. Goodwill amounts are derived from acquirer's 10-K forms in Edgar database of SEC. Results show that in line with our expectations, the correlation coefficient for target excess return amounts and goodwill is positive, whereas it is negative for acquirer and combined excess returns. Further it turns out that goodwill is significant positively influenced by acquisitions of high Tobin's q targets by either low or high Tobin's q acquirers, compared to acquisitions of low Tobin's q targets by low Tobin's q acquirers. Also the method of payment matters: payments other than cash or stock negatively influence goodwill. Moreover, a higher leverage of the target positively influences purchased goodwill. Although some of the determinants of excess return have a significant influence on goodwill, the pattern is sometimes different. Therefore, further research needs to take into account both the nature of goodwill and its unique determinants

Goodwill, excess returns, and determinants of value creation and overpayment

In this article we have investigated whether the determinants of excess returns (especially of target excess returns) are valid for purchased goodwill as well. Among them are acquirer’s and target’s Tobin’s q, and debt assets ratio, that explain value creation of acquisitions, and relative size, source of financing of the acquisition, number of bidders, and relatedness of businesses of acquiror and target, that explain overpayment or overvaluation of acquisitions. The study is confined to mergers and acquisitions between US publicly quoted companies announced and effective in between January 2002 and December 2005. Databases used are SDC Platinum, CRSP and Compustat industrial annual file. Goodwill amounts are derived from acquirer’s 10-K forms in Edgar database of SEC. Results show that in line with our expectations, the correlation coefficient for target excess return amounts and goodwill is positive, whereas it is negative for acquirer and combined excess returns. Further it turns out that goodwill is significant positively influenced by acquisitions of high Tobin’s q targets by either low or high Tobin’s q acquirers, compared to acquisitions of low Tobin’s q targets by low Tobin’s q acquirers. Also the method of payment matters: payments other than cash or stock negatively influence goodwill. Moreover, a higher leverage of the target positively influences purchased goodwill. Although some of the determinants of excess return have a significant influence on goodwill, the pattern is sometimes different. Therefore, further research needs to take into account both the nature of goodwill and its unique determinants.Goodwill, overpayment, value creation

Goodwill measuring value creation of acquisitions: an empirical research

The reason for this research is that at the beginning of the 21st century, some important changes were introduced in the international standards of accounting affecting reporting on goodwill. The intentions of the standard-setting bodies in drafting the new rules were that the financial statements would better reflect the underlying economics of the acquired goodwill.1 In this research it is tested whether goodwill under the new accounting regime does reflect underlying economics and therefore provides information on expected value creation of the acquisition. The results of the research show that goodwill contains elements of value creation: characteristics of valuecreating acquisitions have a positive effect on purchased goodwill. However, also other characteristics determine the amount of purchased goodwill