This paper examines the broader effects of the US financial crisis on global lending to retail customers. In particular we examine retail bank lending in Germany using a unique data set of German ...savings banks during the period 2006 through 2008 for which we have the universe of loan applications and loans granted. Our experimental setting allows us to distinguish between savings banks affected by the US financial crisis through their holdings in Landesbanken with substantial subprime exposure and unaffected savings banks. The data enable us to distinguish between demand and supply side effects of bank lending and find that the US financial crisis induced a contraction in the supply of retail lending in Germany. While demand for loans goes down, it is not substantially different for the affected and nonaffected banks. More important, we find evidence of a significant supply side effect in that the affected banks reject substantially more loan applications than nonaffected banks. This result is particularly strong for smaller and more liquidity-constrained banks as well as for mortgage as compared with consumer loans. We also find that bank-depositor relationships help mitigate these supply side effects.
The article characterizes high and low value patents based on the non‐linearity of the age‐value relationship, as an attempt to provide some statistical understanding on the difference in the value ...of patent characteristics over time. A set of 138 US singleton patents, mainly from the computers and communication field, successfully auctioned by an US auction firm called OceanTomo during 2006–2008 forms the data. Analysis shows evidence of non‐linearity in the patent age‐value relationship and the sensitivity of patent characteristics to temporal dimension in explaining value of patented knowledge. The U‐shaped temporal value of knowledge, identifying older patented knowledge as more valuable, thus, finds support. Furthermore, patents sold in their first half exhibit more lag, less patent scope and less forward citations. Patents sold by firms dominate the younger patent, while the older patent cohort finds more patents sold by individuals. These and other results are discussed for their significance for patent sale. We acknowledge the limitations of a small sample size. Nevertheless, the article provides statistical understanding on the potential characteristics of high and low value patents, explored through the non‐linear age value dynamics.
We examine stock exchange trading rules for market manipulation, insider trading, and broker–agency conflict, across countries and over time, in 42 stock exchanges around the world. Some stock ...exchanges have extremely detailed rules that explicitly prohibit specific manipulative practices, but others use less precise and broadly framed rules. We create new indices for market manipulation, insider trading, and broker–agency conflict based on the specific provisions in the trading rules of each stock exchange. We show that differences in exchange trading rules, over time and across markets, significantly affect liquidity.
This paper describes the dynamic nature of leadership processes that are initiated and driven by emergent leaders known as ‘champions’. The research involved a multiple case study method to examine ...typical champion-driven leadership processes in six urban water management agencies. The analysis indicated that these leadership processes evolved through three distinct phases characterized by different forms of leadership, involved many leaders, and were strongly affected by context. The research produced a new, three-phase conceptual model of champion-driven leadership. This model is used to explain the way in which the transformational, distributed and complexity models of leadership are relevant to different dimensions of champion-driven leadership processes as they evolve. The model is also used to explain why some champions are more effective than others. The paper concludes by describing ways organizations can enable champion-driven leadership processes to overcome complex challenges, such as delivering more sustainable water services within modern cities.
Purpose - Recent reports argue that eco-innovation is the key to realising growth. The purpose of this paper is to examine the factors which drive eco-innovation and test if eco-innovating firms ...perform better than non-eco-innovating firms. The paper provides insights into the role government regulation can play in directing and stimulating eco-innovation.Design methodology approach - The approach utilised by this paper is empirical in nature. Using a sample of 2,181 firms, gathered as part of the Irish Community Survey 2006-2008, the authors estimate a modified innovation production function in order to assess the impact of regulation, consumer expectations and voluntary agreements on the performance of eco-innovation, subsequently a knowledge augmented production function is estimated to assess the impact of eco-innovation on firm performance.Findings - The findings suggest that regulation and customer perception can explain a firm's decision to engage in eco-innovation. Eco-innovation is also found to be more important than non-eco-innovation in determining firm performance.Research limitations implications - Due to the limited availability of accounting data this paper uses turnover per worker as the measure of firm performance. As a result, it is not possible to assess the impact of eco-innovation on firm costs.Social implications - The finding that regulation drives eco-innovation, and that there is no trade-off between eco-innovation and higher profit margins for innovating firms, suggests that regulators and policy makers can stimulate growth and create a greener society.Originality value - This paper provides an empirical analysis of the Porter and van der Linde's theory of environmental regulation and firm performance using novel real world data from over 2,000 Irish businesses.
Abstract
This study analyzes voters’ response to criminal justice policies by exploiting a natural experiment. The 2006 Italian Collective Pardon Bill, designed and promoted by the incumbent ...center-left (CL) coalition, unexpectedly released about one-third of the prison population, creating idiosyncratic incentives to recidivate across pardoned individuals. Municipalities where resident pardoned individuals had a higher incentive to recidivate experienced a higher recidivism rate. We show that in those municipalities voters “punished” the CL coalition in the 2008 parliamentary elections. A one standard deviation increase in the incentive to recidivate—corresponding to an increase of recidivism of 15.9%—led to a 3.06% increase in the margin of victory of the center-right (CR) coalition in the post-pardon national elections (2008) relative to the last election before the pardon (2006). We also provide evidence of newspapers being more likely to report crime news involving pardoned individuals and of voters hardening their views on the incumbent national government’s ability to control crime. Our findings indicate that voters keep politicians accountable by conditioning their vote on the observed effects of public policies.
Congress and activists recently proposed giving shareholders a say (vote) on executive pay. We find that when the House passed the Say-on-Pay Bill, the market reaction was significantly positive for ...firms with high abnormal chief executive officer (CEO) compensation, with low pay-for-performance sensitivity, and responsive to shareholder pressure. However, activist-sponsored say-on-pay proposals target large firms, not those with excessive CEO pay, poor governance, or poor performance. The market reacts negatively to labor-sponsored proposal announcements and positively when these proposals are defeated. Our findings suggest that say-on-pay creates value for companies with inefficient compensation but can destroy value for others.
The Deterrence Effect of Whistleblowing Johannesen, Niels; Stolper, Tim B.M.
The Journal of law & economics,
11/2021, Letnik:
64, Številka:
4
Journal Article
Recenzirano
We document that the first leak of customer information from a tax-haven bank
caused a sudden flight of deposits from tax havens and a sharp decrease in the
market value of banks known to be ...assisting with tax evasion. The loss of market
value was largest for the banks most strongly involved in tax evasion.
Subsequent leaks had qualitatively similar although smaller effects. Our
findings suggest that whistleblowing in tax-haven banks deters offshore tax
evaders by increasing the perceived risk of committing and assisting with tax
evasion.
Abstract
We build a framework to understand the effects of regulatory interventions in credit markets, such as caps on interest rates. We focus on the credit card market, in which we observe US ...consumers borrowing at high and very dispersed interest rates despite receiving many credit card offers. Our framework includes two main features to account for these patterns: the endogenous effort of examining offers and product differentiation. Our calibration suggests that most borrowers examine few of the offers they receive, and thereby forego cards with low interest rates and high non-price benefits. The calibrated model implies that interest-rate caps reduce credit supply and significantly curb lenders’ market power, thereby increasing consumer surplus. Moderate caps may yield larger gains in consumer surplus than tighter ones.
We use field and natural experiments in online auctions to study the revenue effect of varying the level and disclosure of shipping charges. Our main findings are (1) disclosure affects revenues—for ...low shipping charges, a seller is better off disclosing; and (2) increasing shipping charges boosts revenues when these charges are hidden. These results are not explained by changes in the number of bidders.
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