Why Do Countries Matter So Much for Corporate Governance?

This paper develops and tests a model of how country characteristics, such as legal protections for minority investors, and the level of economic and financial development, influence firms' costs and benefits in implementing measures to improve their own governance and transparency. The model focuses on an entrepreneur who needs to raise funds to finance the firm's investment opportunities and who decides whether or not to invest in better firm-level governance mechanisms to reduce agency costs. We show that, for a given level of country investor protection, the incentives to adopt better governance mechanisms at the firm level increase with a country's financial and economic development. When economic and financial development is poor, the incentives to improve firm-level governance are low because outside finance is expensive and the adoption of better governance mechanisms is expensive. Using firm-level data on international corporate governance and transparency ratings for a large sample of firms from around the world, we find evidence consistent with this prediction. Specifically, we show that (1) almost all of the variation in governance ratings across firms in less developed countries is attributable to country characteristics rather than firm characteristics typically used to explain governance choices, (2) firm characteristics explain more of the variation in governance ratings in more developed countries, and (3) access to global capital markets sharpens firm incentives for better governance, but decreases the importance of home-country legal protections of minority investors.

Has New York Become Less Competitive in Global Markets? Evaluating Foreign Listing Choices Over Time

We study the determinants and consequences of cross-listings on the New York and London stock exchanges from 1990 to 2005. This investigation enables us to evaluate the relative benefits of New York and London exchange listings and to assess whether these relative benefits have changed over time, perhaps as a result of the passage of the Sarbanes-Oxley Act of Congress (SOX) in 2002. We find that cross-listings have been falling on U.S. exchanges as well as on the Main Market in London. This decline in cross-listings is explained by changes in firm characteristics rather than by changes in the benefits of cross-listings. We show that, after controlling for firm characteristics, there is no deficit in cross-listing counts on U.S. exchanges related to SOX. Investigating the cross-listing premium from 1990 to 2005, we find that there is a significant premium for U.S. exchange listings every year, that the premium has not fallen significantly in recent years, that it persists even when allowing for unobservable firm characteristics, and that there is a permanent premium in event time. In contrast, there is no premium for London listings for any year. Cross-listing in the U.S. leads firms to increase their capital-raising activity at home and abroad while a London listing has no such impact. Our evidence is consistent with the theory that an exchange listing in New York has unique governance benefits for foreign firms. These benefits have not been seriously eroded by SOX and cannot be replicated through a London listing.

Why are Foreign Firms Listed in the U.S. Worth More?

At the end of 1997, the foreign companies listed in the U.S. have a Tobin's q ratio that exceeds by 16.5% the q ratio of firms from the same country that are not listed in the U.S. The valuation difference is statistically significant and largest for exchange-listed firms, where it reaches 37%. The difference persists even after controlling for a number of firm and country characteristics. We propose a theory that explains this valuation difference. We hypothesize that controlling shareholders of firms listed in the U.S. cannot extract as many private benefits from control compared to controlling shareholders of firms not listed in the U.S., but that their firms are better able to take advantage of growth opportunities. Consequently, the cross-listed firms should be those firms where the interests of the controlling shareholder are better aligned with the interests of other shareholders. The growth opportunities of cross-listed firms will be more highly valued than those of firms not listed in the U.S. both because cross-listed firms are better able to take advantage of these opportunities and because a smaller fraction of the cash flow of these firms is expropriated by controlling shareholders. We find that our theory explains the greater valuation of cross-listed firms. In particular, we find expected sales growth is valued more highly for firms listed in the U.S. and that this effect is greater for firms from countries with poorer investor rights.

Analysing I/O bottlenecks in LHC data analysis on grid storage resources

We describe recent I/O testing frameworks that we have developed and applied within the UK GridPP Collaboration, the ATLAS experiment and the DPM team, for a variety of distinct purposes. These include benchmarking vendor supplied storage products, discovering scaling limits of SRM solutions, tuning of storage systems for experiment data analysis, evaluating file access protocols, and exploring I/O read patterns of experiment software and their underlying event data models. With multiple grid sites now dealing with petabytes of data, such studies are becoming essential. We describe how the tests build, and improve, on previous work and contrast how the use-cases differ. We also detail the results obtained and the implications for storage hardware, middleware and experiment software

The U.S. Left Behind: The Rise of IPO Activity Around the World

During the past two decades, there has been a dramatic change in IPO activity around the world. Though vibrant IPO activity, attributed to better institutions and governance, used to be a strength of the U.S., it no longer is. IPO activity in the U.S. has fallen compared to the rest of the world and U.S. firms go public less than expected based on the economic importance of the U.S. In the early 1990s, the declining U.S. IPO share was due to the extraordinary growth of IPOs in foreign countries; in the 2000s, however, it is due to higher IPO activity abroad combined with lower IPO activity in the U.S. Global IPOs, which are IPOs in which some of the proceeds are raised outside the firm’s home country, play a critical role in the increase in IPO activity outside the U.S. The quality of a country’s institutions is positively related to its domestic IPO activity and negatively related to its global IPO activity. However, home country institutions are more important in explaining IPO activity in the 1990s than in the 2000s. The evidence is consistent with the view that access to global markets helps firms overcome the obstacles of poor institutions. Finally, we show that the dynamics of global IPO activity and country-level IPO activity are strongly affected by global factors.

Movement and Aggregation of Eastern Hudson Bay Beluga Whales (Delphinapterus leucas): A Comparison of Patterns Found through Satellite Telemetry and Nunavik Traditional Ecological Knowledge

Traditional Ecological Knowledge (TEK) consists of the collective knowledge, experience, and values of subsistence communities, while Western science relies on hypothesis testing to obtain information on natural processes. Both approaches provide important ecological information, but few studies have directly compared the two. We compared information on movements and aggregation of beluga whales obtained from TEK interview records (n = 3253) and satellite telemetry records of 30 whales tagged in eastern Hudson Bay, Canada, using geographic information system (GIS) approaches that allowed common formatting of the data sets. Estuarine centres of aggregation in the summer were evident in both data sets. The intensive use of offshore areas seen in the telemetry data, where 76% of the locations were more than 15 km from mainland Quebec, was not evident in the TEK data, where only 17% of the records indicated offshore locations. Morisita’s index of similarity indicated that TEK and telemetry data distributions varied with season, with the highest similarity in winter (0.74). Location and movement data from the telemetry study were limited by small sample size and short tag deployment times, while TEK data were biased by spatial coverage and coastal travel habits. Although the two data sets can provide complementary information, both suffer from weaknesses that need to be acknowledged when these data are adapted for use in resource management.Les connaissances écologiques traditionnelles (CÉT) consistent en l’ensemble des connaissances, de l’expérience et des valeurs des communautés de subsistance, tandis que la science occidentale s’appuie sur la mise à l’épreuve d’hypothèses dans le but d’obtenir de l’information sur les processus naturels. Bien que ces deux démarches permettent d’obtenir d’importants renseignements sur l’écologie, peu d’études ont établi une comparaison directe entre ces deux démarches. Nous avons comparé des données sur les mouvements et le rassemblement des bélugas, données obtenues à partir de CÉT prélevées au moyen d’entrevues (n = 3253) ainsi qu’à partir de résultats de télémétrie par satellite sur 30 baleines marquées dans l’est de la baie d’Hudson, au Canada, à l’aide de systèmes d’information géographique (SIG) qui ont permis le formatage commun des ensembles de données. Pendant l’été, les centres de rassemblement en estuaire étaient évidents dans les deux ensembles de données. L’utilisation intensive des zones au large en ce qui a trait aux données de télémétrie, où 76 % des localisations se situaient à plus de 15 km du continent québécois, n’était pas évidente dans le cas des données des CÉT, où seulement 17 % des résultats indiquaient des localisations au large. L’indice de similarité de Morisita indiquait que la répartition des données obtenues par CÉT et par télémétrie variait d’une saison à l’autre, la similarité la plus grande ayant été atteinte l’hiver (0,74). Les données de localisation et de mouvement découlant de l’étude de télémétrie étaient limitées par la petite taille de l’échantillon et les courtes durées de déploiement des étiquettes, tandis que les données provenant des CÉT étaient biaisées par l’espace à couvrir et les habitudes de déplacement sur la côte. Bien que les deux ensembles de données puissent fournir de l’information complémentaire, tous deux possèdent des faiblesses qu’il y a lieu de reconnaître lorsque ces données sont adaptées à des fins de gestion des ressources

Subgenual Cingulum Microstructure Supports Control of Emotional Conflict

This is the final version of the article. Available from Oxford University Press via the DOI in this record.Major depressive disorder (MDD) is associated with specific difficulties in attentional disengagement from negatively valenced material. Diffusion MRI studies have demonstrated altered white matter microstructure in the subgenual cingulum bundle (CB) in individuals with MDD, though the functional significance of these alterations has not been examined formally. This study explored whether individual differences in selective attention to negatively valenced stimuli are related to interindividual differences in subgenual CB microstructure. Forty-six individuals (21 with remitted MDD, 25 never depressed) completed an emotional Stroop task, using happy and angry distractor faces overlaid by pleasant or unpleasant target words and a control gender-based Stroop task. CBs were reconstructed in 38 individuals using diffusion-weighted imaging and tractography, and mean fractional anisotropy (FA) computed for the subgenual, retrosplenial, and parahippocampal subdivisions. No significant correlations were found between FA and performance in the control gender-based Stroop task in any CB region. However, the degree of interference produced by angry face distractors on time to identify pleasant words (emotional conflict) correlated selectively with FA in the subgenual CB (r= -0.53;P= 0.01). Higher FA was associated with reduced interference, irrespective of a diagnosis of MDD, suggesting that subgenual CB microstructure is functionally relevant for regulating attentional bias toward negative interpersonal stimuli.P.A.K. was funded by the Higher Education Funding Council for Wales (HEFCW) and an Academy of Medical Sciences and Wellcome Trust Starter Grant (AJ17102004). M.M. received an EPSRC Doctoral Training Grant. This work was also supported by a Marie Curie fellowship to Marcel Meyer and received funding from the European Union Seventh Framework Programme (FP7/2007-2013) under grant agreement no. 267171. D.K.J. was funded by HEFCW and received grants from the MS Society, a Wellcome Trust New Investigator Award, a Wellcome Trust Multi User Equipment Grant and Medical Research Council, and Wellcome Trust project grants. A.N.D. was supported by the Wellcome Trust PhD schemes. N.L. was funded by HEFCW. A.D.L. was funded by HEFCW. He also received grants from the ESRC, Wellcome Trust, and NISCHR. Funding to pay the Open Access publication charges for this article was provided by The Wellcome Trust

The EU and Asia within an evolving global order: what is Europe? Where is Asia?

The papers in this special edition are a very small selection from those presented at the EU-NESCA (Network of European Studies Centres in Asia) conference on "the EU and East Asia within an Evolving Global Order: Ideas, Actors and Processes" in November 2008 in Brussels. The conference was the culmination of three years of research activity involving workshops and conferences bringing together scholars from both regions primarily to discuss relations between Europe and Asia, perceptions of Europe in Asia, and the relationship between the European regional project and emerging regional forms in Asia. But although this was the last of the three major conferences organised by the consortium, it in many ways represented a starting point rather than the end; an opportunity to reflect on the conclusions of the first phase of collaboration and point towards new and continuing research agendas for the future

Editors’ introduction to the Special Issue: The Member States and Differentiated Integration in the European Union

European integration has never been a ‘uniform’ process, with one set of rules applying equally to all Member States. Instead, from Rome (1958) to Lisbon (2009), the treaties establishing the European Union (EU) and its predecessors have all contained exceptions from common provisions. The literature refers to this phenomenon as differentiated integration (DI). While DI has always been a feature of European integration, the absolute number of exceptions in EU treaties and secondary law has increased over time (Schimmelfennig and Winzen 2020a). The Lisbon Treaty, for example, is considered a milestone for DI (Koller 2012; Brunazzo 2019). As such, the EU has become an increasingly differentiated political system in recent years (Leuffen et al. 2013; Dyson and Sepos 2010). Despite this, there is surprisingly little research about the attitudes of political actors – such as governments – towards DI. Five contributions in this special issue investigate this gap in the literature. Putting a focus on smaller and less studied EU Member States, they develop in-depth case studies of Austria, Finland, Portugal, Romania, and Slovenia. For better comparability, these papers follow a common approach (see below). In addition, the special issue contains a thematic contribution which explores whether the EU’s differentiated Banking Union will ultimately converge in uniform integration or see further differentiation