32,339 research outputs found

    Searching for managerial opportunism faint traces in French diversifying acquisitions

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    We are looking for traces of managerial opportunism in french diversifyingacquisitions. Indeed, following various theories, diversification is seeking by managers.Furthermore, recent empiric evidences show that corporate diversification is valuedestructive for shareholders. Using classical OLS methodology with diversification,management ownership and performance variables, we find some evidence of managerialopportunism. But classical methodology presents two shortages. First, it supposed a uniquesense of causality. In particular, firm diversification is supposed to impact firmperformance without considering the inverse relationship (from performance todiversification). This one-way analysis can create biases in the estimated results. Second,this OLS methodology doesn't permit to take simultaneously the relationship between ourvariables. Noticing that this classical methodology is not well adapted to the problem, wesubmit our data to a system of simultaneous equations. Using this system, according to usbetter adapted, the faint traces of managerial opportunism vanishes. This is the case inparticular because the negative impact of diversification on performance disappears whenwe consider a non recursive relation between the variables. We derive others surprisingresults from our simultaneaous equations framework. Management stake in the equity caninfluence or be influenced by the performance depending on wether the performance ismeasured at the firm or at the operation (acquisition) level. Together, these results suggestthat we have to be cautious when searching for managerial opportunism in sample andstatistical studies. If manager opportunist inclination can be suspected in this kind ofstudies, it has to be distinguished from manager opportunist behavior which is far moredifficult to exhibit.managerial opportunism;acquisition;corporate diversification;agence;performance

    Informal regulation of industrial pollution in developing countries : evidence from Indonesia

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    The authors test a model of supply-demand relations in an implicit market for environmental services when formal regulation is absent. They use plant-level data from Indonesia for 1989-90, before the advent of nationwide environmental regulation. Treating pollution as a derived demand for environmental services, their model relates emissions of biological oxygen demand to the price (expected cost) of pollution; to prices of other inputs (labor,energy, materials); and to enterprise characteristics that may affect pollution demand, including scale, vintage ownership, and efficiency. The price of pollution is determined by the intersection of plant-level demand and a local environmental supply function, enforced by community pressure or informal regulation. Environmental supply is affected by community income, education, the size of the exposed population, the local economic importance of the plant, and its visibility as a polluter. Their results are strongly consistent with the existence of an informal"pollution equilibrium."Pollution intensity declines with increase in plant size, efficiency, and local materials prices. Older plants and publicly owned facilities are more pollution intensive; multinational ownership has no independent effect. The results also suggest that the price of pollution is higher when plants are particularly visible and is far lower in poorer, less-educated communities. Thus the intensity of pollution is far higher in such communities. While it would be premature to generalize from these results, they suggest that the model of optimal pollution control in environmental economics is more relevant for developing countries than many have believed. Community-factory interactions seem to reflect environmental supply-demand considerations even when formal regulation does not exist. In addition, the apparent power of informal regulation implies that cost-effective formal systems should be designed to complement, not supplant, community control. In particular: 1) Local communities should not be forced to rely so heavily on visibility when judging environmental performance. Formal regulation should include publication of audited emissions reports from factories; 2) Environmental injustice may be real and important. Many poor, uneducated communities may need extra support from national regulators.; and 3) However, appropriate regulation should strike the right balance between equity and efficiency. Uniform national standards go too far because they eliminate all the natural and legitimate regional diversity that is also reflected in informal arrangements.Public Health Promotion,Environmental Economics&Policies,Water and Industry,Sanitation and Sewerage,Water Conservation,Environmental Economics&Policies,Water and Industry,TF030632-DANISH CTF - FY05 (DAC PART COUNTRIES GNP PER CAPITA BELOW USD 2,500/AL,Sanitation and Sewerage,Urban Services to the Poor

    Financial Constraints in Investment - Foreign Versus Domestic Firms. Panel Data Results From Estonia, 1995-1999.

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    Using data from Estonian manufacturing firms during the period 1995-1999 we apply panel data techniques, in particular the Arellano-Bond (1991) method to investigate the investment behaviour. We employ the model of optimal capital accumulation in the presence of convex adjustment costs. We find that the domestic companies seem to be more financial constrained than those with the presence of foreign investors. Furthermore we find that smaller firms are more constrained than their larger counterparts.http://deepblue.lib.umich.edu/bitstream/2027.42/40034/3/wp648.pd

    Marx's Social Ontology

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    Composite Indices of Human Well-being: Past, Present, and Future

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    human well-being, composite well-being indices, income per capita, Human Development Index, Physical Quality of Life Index

    Financial Constraints in Investment - Foreign Versus Domestic Firms. Panel Data Results From Estonia, 1995-1999.

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    Using data from Estonian manufacturing firms during the period 1995-1999 we apply panel data techniques, in particular the Arellano-Bond (1991) method to investigate the investment behaviour. We employ the model of optimal capital accumulation in the presence of convex adjustment costs. We find that the domestic companies seem to be more financial constrained than those with the presence of foreign investors. Furthermore we find that smaller firms are more constrained than their larger counterparts.Investment, Cash Flow, Foreign Ownership, Firm Size, Estonia

    Deregulation and productivity growth: a study of Indian commercial banking

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    This paper examines the impact of regulatory reform on the performance of Indian commercial banks. Using a balanced panel data set covering from the beginning of the deregulation period (1992) to the most recent years (2004) and employing a DEA-based Malmquist index of total factor productivity change, this paper attempts to quantify the magnitude of total factor productivity change and identify its main sources. We also explore whether deregulation has had a different impact on the performance of public, private and foreign banks and whether it affected the risk-taking behaviour of market participants. The empirical results seem to indicate that, after an initial adjustment phase, the Indian banking industry experienced sustained productivity growth, driven mainly by technological progress. Banks’ ownership structure seems to have an impact on bank efficiency but does not appear to have an influence on total factor productivity change. Although ownership per se does not seem to matter as much as increased competition, during the deregulation process foreign banks appear to have acted as technological innovators, thereby increasing even further the competitive pressure in the Indian banking market. Finally, our results also indicate an increase in risk-taking behaviour along with the whole deregulation process.Deregulation; Indian banking; Productivity Change; Malmquist Index

    Bank Performance in Transition Economies

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    This paper examines the performance of 515 banks in 16 transition economies for the years 1994 – 99 based on their public financial accounts. We first examine lending behaviour and probability distribution of bank profitability to determine whether these banks exhibit behaviour and performance associated with excessive risk-taking. While we do not find evidence of excessive risk taking on average where there is significant progress in banking and related enterprise reforms, there may be a minority of poorly capitalised banks that do take excessive risks, particularly where progress in reform is less advanced. The paper then estimates cost and revenue functions based on a model of banks as multi-product firms. The results indicate that banks' performance differs significantly depending on the reform environment, as well as the competitive conditions, in which they operate. Banks with high market shares have higher costs and achieve lower margins on their loan and deposit activities. Where there has been significant progress in banking and related enterprise reforms, banks are making comfortable margins on loans and appear to be offering competitive margins on deposits, though they are still achieving overall negative returns on equity. By contrast, when substantial reforms have not been undertaken, banks have been sustaining high negative returns on loans, largely at the expense of depositors; in effect they have been able to appropriate much of the tax that inflation levies on nominal deposits, and have been using this revenue to prop up their weak loan portfolios. Overall interest margins are declining over time but are substantially higher in low reform environments. The results indicate that an appropriate policy and regulatory framework may be a necessary condition for significant progress to be made.http://deepblue.lib.umich.edu/bitstream/2027.42/39890/3/wp505.pd

    INTERRELATIONSHIP BETWEEN EARNINGS MANAGEMENT AND CORPORATE SOCIAL RESPONSIBILITY REPORTING Research on Indonesian Listed Companies in BEI for 2012-2013

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    This research aims to examine the interrelationship between earnings management (EM) and corporate social responsibility reporting (CSR). This research uses GRI G3.1 Indeces to measure CSR while earnings management is measured with real activities manipulation proxie. Population of this research is all Indonesian Listed Companies in Indonesian Stock Exchange for the year 2012 and 2013. Companies from financial and banking groups are excluded because they have the characteristics of assets which are very different from the other industries. Two-Stages Least Squares (2SLS) Analysis on SPSS22 is used to examine the data. This research indicates that there is simoultanity relationship between earnings management and CSR reporting. But then, only CSR reporting which affects earnings management practices, but it isn’t found prove that earnings management affects CSR reporting

    Trust in China: A Cross-Regional Analysis

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    Using the cross-regional data, this paper shows that trust has a strong effect on uneven development of economy in China. As is discovered in many studies, it is found that trust affects the growth of economy, size distribution of enterprise, and FDI inflow and so on. We also find that cross-regional differences of trust in China are reflections of the regional diversities of education, marketization of economies, urbanization, population density and transportation facilities. Although not statistically significant, “too many officials” may damage social trust. The paper demonstrates that trust cannot simply be taken as a cultural heritage. The paper also argues that sustainability of further economic development of China much depends on how fast China can build trust-facilitating institution, and that the most fundamental institution for trust is the property right.Trust, Economic performance, Information Repeated game, Transaction
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