Evaluation via Extended Orderings: Empirical Findings from West and East

The theoretical background of the empirical investigations to be reported in this paper are positionalist aggregation functions which are numerically representable. More concretely, the broad Borda rule is proposed as an aggregation mechanism for the case of a complete set (profile) of so-called individual extended orderings. The Borda rule becomes an interpersonal positional rule and it is modified to reflect considerations of equity. Such considerations are introduced by transforming the original linear weighting system such that an equity axiom well known from the social choice literature is satisfied. Students from Osnabr*ck University and from universities in the Baltic States were confronted with questionnaires that describe six 'situations', most of which reflect different aspects of needs. All situations start from the preference structure which underlies the equity axiom, viz. there is one person who is worst off under two alternatives x and y. This person is better off under x than under y whereas all the other individuals who are introduced successively are better off under y than x. Three of the points were are focusing on are: (a) What is the percentage of respondents satisfying the equity axiom? (b) How often do the students revise their initial decision when more and more people join the side of the more advantaged? (c) Are there major differences in the empirical results between West and East? We have found that Western students satisfy the equity axiom to a high degree but they are not willing to follow Rawl's unique focus on the worst of (group of) individual(s) unconditionally, i.e. independently of the number of persons involved. There are stunning differences between the results from the East and the West. Though the number of students from Osnabr*ck involved in the study is much higher than the number of students from the three Baltic States, it is fair to say that aspects of neediness and the protection of basic human rights currently aredistributive justice, Rawlsianism, equity considerations

Globalization of Corporate Covernance: The American Influence on Dismissal Performance Sensitivity of European CEOs

This study examines how globalization of corporate governance practices influence the risk of European CEOs being dismissed. We argue that the harsh monitoring of the American corporate governance system spills over to the rest of the world as a result of this globalization. We focus on direct and indirect American influence on the dismissal performance sensitivity among the 250 largest European publicly listed firms. The indirect influence is assumed to materialize via European firms cross-listing on U.S. exchanges, whereas the direct influence is assumed to appear as a result of European firms hiring of American independent board members. Both sources of influence are hypothesized to result in increased dismissal performance sensitivity. The empirical results show a significant increase in the dismissal sensitivity in poorly performing companies with American board membership whereas no significant increase is found from cross-listing in the U.S.CEO dismissal; Performance sensitivity; Globalization; Corporate governance; Foreign board membership; Institutional contagion

Stochastic sensitivity of bull and bear states

We study the price dynamics generated by a stochastic version of a Day–Huang type asset market model with heterogenous, interacting market participants. To facilitate the analysis, we introduce a methodology that allows us to assess the consequences of changes in uncertainty on the dynamics of an asset price process close to stable equilibria. In particular, we focus on noise-induced transitions between bull and bear states of the market under additive as well as parametric noise. Our results are obtained by combining the stochastic sensitivity function (SSF) approach, a mixture of analytical and numerical techniques, due to Mil’shtein and Ryashko (1995) with concepts and techniques from the study of non-smooth 1D maps. We find that the stochastic sensitivity of the respective bull and bear equilibria in the presence of additive noise is higher than under parametric noise. Thus, recurrent transitions are likely to be observed already for relatively low intensities of additive noise.publishedVersio

Evaluation via extended orderings: empirical findings from west and east

The theoretical background of the empirical investigations to be reported in this paper are positionalist aggregation functions which are numerically representable. More concretely, the broad Borda rule is proposed as an aggregation mechanism for the case of a complete set (profile) of so-called individual extended orderings. The Borda rule becomes an interpersonal positional rule and it is modified to reflect considerations of equity. Such considerations are introduced by transforming the original linear weighting system such that an equity axiom well known from the social choice literature is satisfied. Students from Osnabr*ck University and from universities in the Baltic States were confronted with questionnaires that describe six 'situations', most of which reflect different aspects of needs. All situations start from the preference structure which underlies the equity axiom, viz. there is one person who is worst off under two alternatives x and y. This person is better off under x than under y whereas all the other individuals who are introduced successively are better off under y than x. Three of the points were are focusing on are: (a) What is the percentage of respondents satisfying the equity axiom? (b) How often do the students revise their initial decision when more and more people join the side of the more advantaged? (c) Are there major differences in the empirical results between West and East? We have found that Western students satisfy the equity axiom to a high degree but they are not willing to follow Rawl's unique focus on the worst of (group of) individual(s) unconditionally, i.e. independently of the number of persons involved. There are stunning differences between the results from the East and the West. Though the number of students from Osnabr*ck involved in the study is much higher than the number of students from the three Baltic States, it is fair to say that aspects of neediness and the protection of basic human rights currently ar

Operational characteristics of White's test for neglected nonlinearities

SIGLEAvailable from Bibliothek des Instituts fuer Weltwirtschaft, ZBW, Duesternbrook Weg 120, D-24105 Kiel W 60 (9321) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekDEGerman

A comparative study of equity judgements in Lithuania and Norway

A questionnaire-type experiment was conducted in Lithuania and Norway in order to generate two samples suitable for a comparative examination of equity judgements.The results reveal large differences between the two countries. Norwegian probants had a much higher propensity to decide in accordance with Rawls' second principle than had Lithuanian probants. Equity judgements are also strongly dependent on the context of choice. The results are interpreted within a framework describing the formation of social preferences. More specifically, differences in observed equity judgements in the two countries are related to differences in history, past experience and future prospects.