The Value Relevance of Forced Top Management Departures

This paper studies the value relevance of management turnover based on a sample of Dutch events. Consistent with previous studies we find weak or insignificant aggregate announcement effects on stock prices. The evidence is in conflict with effective internal monitoring from which positive abnormal returns would result. The hypothesis is that two opposing forces underlie the inconclusive result: (1) A positive real effect of the unanticipated forced resignation of a poor performing manager and (2) A negative information effect if the change signals worse management performance than anticipated. To test the hypothesis, announcement effects on trading volumes are analyzed too. Our conclusion supports the hypothesis: forced management departures are value relevant.top management turnover/resignations/changes; corporate governance; internal monitoring; value relevance; event study.

Ability Dispersion and Team Performance: a field experiment

This paper studies the impact of diversity in cognitive ability among members of a team on their performance. We conduct a large field experiment in which teams start up and manage real companies under identical circumstances. Exogenous variation in - otherwise random - team composition is imposed by assigning individuals to teams based on their measured cognitive abilities. The setting is one of business management practices in the longer run where tasks are diverse and involve complex decision-making. We propose a model in which greater ability dispersion generates greater knowledge for a team, but also increases the costs of monitoring necessitated by moral hazard. Consistent with the predictions of our model, we find that team performance as measured in terms of sales, profits and profits per share first increases, and then decreases, with ability dispersion. Teams with a moderate degree of ability dispersion also experience fewer dismissals due to fewer shirking members in those teams

Monitoring ethnic minorities in the Netherlands

Item does not contain fulltextThe article first summarises the history of ethnic minority policy in the Netherlands and the development of the ‘ethnic minority’ and ‘allochthonous’ categories, which are peculiar in comparative perspective in emphasising socio-economic disadvantage as a constitutive dimension of minority status and in setting the minority question within the broader Dutch political principle of ‘pillarisation’. The article then examines the use of statistics in public policy, in a context where the national census has been discontinued since 1971, focusing more specifically on the case of education, where major statistical efforts have been devoted to identifying patterns of disadvantage and integration. Finally, the article briefly examines current debates on the situation of ethnic minorities in the Netherlands in the context of growing questioning of established Dutch models of minority policy.13 p

Risk, Balanced Skills and Entrepreneurship

This paper proposes that risk aversion encourages individuals to invest in balanced skill profiles, making them more likely to become entrepreneurs. By not having taken this possible linkage into account, previous research has underestimated the impacts both of risk aversion and balanced skills on the likelihood individuals choose entrepreneurship. Data on Dutch university graduates provides evidence which supports this contention. It thereby raises the possibility that even risk-averse people might be suited to entrepreneurship; and it may also help explain why prior research has generated mixed evidence about the effects of risk aversion on selection into entrepreneurship.entrepreneurship, jack-of-all-trades, risk, human capital, occupational choice