Resolution, Recovery and Survival: The Evolution of Payment Disputes in Post-Socialist Europe

What determines the mechanism chosen to resolve a commercial dispute? To what degree does the aggrieved recover damages? And does the relationship survive in the aftermath? The answers to these questions affect expectations as to the costs of transacting and, thereby, the development of markets. But they have received almost no attention in the economic literature on the post-socialist transition. This article exploits a rich survey of small and medium-sized manufacturing enterprises in three post-socialist countries to explain behavioral responses to an inter-firm payment dispute. Particular attention is given to how the evolution of disputes is sensitive to both the geographic distance between trade partners and membership in a business association.http://deepblue.lib.umich.edu/bitstream/2027.42/40147/3/wp761.pd

The impact of regulatory reforms on cost structure, ownership and competition in Indian banking

This paper evaluates the impact of financial sector reforms on the cost structure characteristics and on the ownership–cost efficiency relationship in Indian banking. It also examines the impact of reforms on the dynamics of competition in the lending market. We find evidence that deregulation improves banks performance and fosters competition in the lending market. Results suggest technological progress, once Indian commercial banks have adjusted to the new regulatory environment. This, however, does not translate in efficiency gains. There is also evidence of an ownership effect on the level and pattern of efficiency change. Finally, competition keeps building pace even in the re-regulation period and technological improvements are not hampered by the tightening of prudential norms

Path dependence or convergence? The evolution of corporate ownership around the world

We offer a theory that sheds light on the current debate over whether the form of corporate ownership converges to the Berle-Means image. Our analytical results are threefold. First, legal rules and firm-specific protective arrangements are complementary. Secondly, corporate ownership patterns can be convergent or path dependent depending on the relative importance of these protective arrangements. We predict, for example, diffuse stock ownership in countries that impose legal limits on blockholders’ power to expropriate minority investor rights. Thirdly, we find that convergence toward diffuse share ownership is a movement towards the social optimum. Our empirical results suggest a case for the co-existence of path dependence and functional convergence (convergence to the diffuse form of share ownership through cross-listings on U.S. stock exchanges that impose more stringent disclosure and listing requirements). These results have implications for the design of executive compensation, the case for institutional investor activism and the proposal to increase shareholder power

Drifting perceptual patterns suggest prediction errors fusion rather than hypothesis selection: replicating the rubber-hand illusion on a robot

Humans can experience fake body parts as theirs just by simple visuo-tactile synchronous stimulation. This body-illusion is accompanied by a drift in the perception of the real limb towards the fake limb, suggesting an update of body estimation resulting from stimulation. This work compares body limb drifting patterns of human participants, in a rubber hand illusion experiment, with the end-effector estimation displacement of a multisensory robotic arm enabled with predictive processing perception. Results show similar drifting patterns in both human and robot experiments, and they also suggest that the perceptual drift is due to prediction error fusion, rather than hypothesis selection. We present body inference through prediction error minimization as one single process that unites predictive coding and causal inference and that it is responsible for the effects in perception when we are subjected to intermodal sensory perturbations.Comment: Proceedings of the 2018 IEEE International Conference on Development and Learning and Epigenetic Robotic

The performance of Italian airports

The aim of this work is the analysis of the operational efficiencies of the major Italian airports. The study is based on a cross-sectional, time series dataset of 14 Italian airports for the period 2000-2004. In the sample there are the two international airport systems of Rome and Milan, each composed by two airports, and ten regional airports. The analysis of the industry characteristics have pointed out that both structural and institutional factors cause an high degrees of dissimilarities among the 14 Italians airports. In this framework comparing the efficiency could be troublesome and misleading at the same time. Thus the methodological goal of the paper has been the application of two multivariate techniques, factorial and cluster analysis, in order to reduces dissimilarities and improve the results of the efficiency measures. The two multivariate techniques help in determining variables which mostly affect the airports operational efficiencies. The operational efficiencies have been estimated using non parametric models. In particular, the modified Torqvinst index has been employed to measure both Total Factor Productivity (TFP) and Variable Factor Productivity (VFP) indexes. Moreover, in order to remove the effects of the variables beyond the managerial control the residual Total Factor Productivity (RTFP) and Variable Factor Productivity (RVFP) indexes have been computed.Factorial analysis; Cluster analysis; Torqvinst index; Productivity

Path dependence, corporate governance and complementarity

In a series of recent papers, Mark Roe and Lucian Bebchuk have developed further the concept of path dependence, combined it with concepts of evolution and used it to challenge the wide-spread view that the corporate governance systems of the major advanced economies are likely to converge towards the economically best system at a rapid pace. The present paper shares this skepticism, but adds several aspects which strengthen the point made by Roe and Bebchuk. The present paper argues that it is important for the topic under discussion to distinguish clearly between two arguments which can explain path dependence. One of them is based on the role of adjustment costs, and the other one uses concepts borrowed from evolutionary biology. Making this distinction is important because the two concepts of path dependence have different implications for the issue of rapid convergence to the best system. In addition, we introduce a formal concept of complementarity and demonstrate that national corporate governance systems are usefully regarded as – possibly consistent – systems of complementary elements. Complementarity is a reason for path dependence which supports the socio-biological argument. The dynamic properties of systems composed of complementary elements are such that a rapid convergence towards a universally best corporate governance systems is not likely to happen. We then proceed by showing for the case of corporate governance systems shaped by complementarity, that there even is the possibility of a convergence towards a common system which is economically inferior. And in the specific case of European integration, "inefficient convergence" of corporate governance systems is a possible future course of events. First version December 1998, this version March 2000

A Dynamic Embedding Model of the Media Landscape

Information about world events is disseminated through a wide variety of news channels, each with specific considerations in the choice of their reporting. Although the multiplicity of these outlets should ensure a variety of viewpoints, recent reports suggest that the rising concentration of media ownership may void this assumption. This observation motivates the study of the impact of ownership on the global media landscape and its influence on the coverage the actual viewer receives. To this end, the selection of reported events has been shown to be informative about the high-level structure of the news ecosystem. However, existing methods only provide a static view into an inherently dynamic system, providing underperforming statistical models and hindering our understanding of the media landscape as a whole. In this work, we present a dynamic embedding method that learns to capture the decision process of individual news sources in their selection of reported events while also enabling the systematic detection of large-scale transformations in the media landscape over prolonged periods of time. In an experiment covering over 580M real-world event mentions, we show our approach to outperform static embedding methods in predictive terms. We demonstrate the potential of the method for news monitoring applications and investigative journalism by shedding light on important changes in programming induced by mergers and acquisitions, policy changes, or network-wide content diffusion. These findings offer evidence of strong content convergence trends inside large broadcasting groups, influencing the news ecosystem in a time of increasing media ownership concentration

Banking Market Liberalization and Bank Performance: the Role of Entry Modes

This paper analyzes the evolution in bank performance following the removal of legal restrictions on the entry of foreign banks in three transition economies: the Czech Republic, Hungary, and Poland. Two modes of foreign bank entry are considered: entry by Greenfield investments, and by foreign mergers and acquisitions of domestic banks. For this purpose, we construct a panel data of banks from the three countries over the period 1994-2004. We determine the dates on which liberalization occurred in each country. Bank performance is reflected by accounting measures of profitability, net interest margin, and operating costs. The results show a very limited effect of the entry of Greenfield banks on domestic banking market in the early transition period. In contrast, the foreign entry by mergers and acquisitions of domestic banks exerts significant impacts on bank performance. Indeed, we observe significant declines in banks' profits and net interest margins, and a significant increase in operating costs. Our results have important policy implications for those emerging and transition economies still hesitant to liberalize their banking markets.http://deepblue.lib.umich.edu/bitstream/2027.42/64408/1/wp948.pd

The Origins of the German Corporation – Finance, Ownership and Control

The ownership of German corporations is quite different today from that of Anglo-American firms. How did this come about? To what extent is it attributable to regulation? A specially constructed data set on financing and ownership of German corporations from the end of the 19th century reveals that, as in the UK, there was a high degree of activity on German stock markets with firms issuing equity in preference to borrowing from banks, and insider and family ownership declining rapidly. However, unlike in the UK, other companies and banks emerged as the main holders of equity, with banks holding shares primarily as custodians of other investors rather than on their own account. The changing pattern of ownership concentration was therefore very different from that of the UK with regulation reinforcing the control that banks exercised on behalf of other investors