Using proprietary data on the entire spectrum of ownership structure and exact tax status of investors and firms, we examine how dividend taxation affects payout. Utilizing an exogenous shock to ...dividend taxation, we show that absent any frictions, dividend taxation has a large impact on payout. As agency issues and shareholder conflicts increase, owners' tax preferences have significantly smaller impact on payout. Three mechanisms reduce the dividend-tax sensitivity: Coordination among owners, heterogeneity in tax preferences, and diverging objectives between managers and owners. Altogether, taxation has a first-order impact on payout, but agency issues and shareholder conflicts mute its impact substantially.
How do alternative job opportunities affect teacher quality? We provide causal evidence on this question by exploiting business cycle conditions at career start as a source of exogenous variation in ...the outside options of potential teachers. Unlike prior research, we directly assess teacher quality with value-added measures of impacts on student test scores, using administrative data on over 30,000 Florida public school teachers. Consistent with a Roy model of occupational choice, teachers entering the profession during recessions are significantly more effective in raising student test scores. Results are supported by robustness tests and unlikely to be driven by differential attrition.
This study explicates the concept of financial literacy, which has blossomed in use this century. Scholars, policy officials, financial experts and consumer advocates have used the phrase loosely to ...describe the knowledge, skills, confidence and motivation necessary to effectively manage money. As a result, financial literacy has varying conceptual definitions in existing research, as well as diverse operational definitions and values. This study dissects the differing financial literacy definitions and measures, urging researchers toward common ground. A clearer definition should improve future research, in turn helping consumers better understand and adapt to changing life events and an increasingly complex economy.
We provide a new framework for using text as data in empirical models. The framework identifies salient information in unstructured text that can control for multidimensional heterogeneity among ...assets. We demonstrate the efficacy of the framework by reexamining principal-agent problems in residential real estate markets. We show that the agent-owned premiums reported in the extant literature dissipate when the salient textual information is included. The results suggest the previously reported agent-owned premiums suffer from an omitted variable bias, which prior studies incorrectly ascribed to market distortions associated with asymmetric information.
In this study, we investigate the economic and strategic value of open innovation alliances (OIAs), in which collaborators and competitors integrate in the pursuit of the codevelopment of ...technological innovations.Given that OIAs differ substantially from traditional, closed alliances in many aspects, including their strategic scope and scale, governing mechanisms, and member composition, it is important to understand and assess the potential value inherent in these new modes of collaboration. Furthermore, OIAs evolve over time as the participating members are free to enter and leave at will. Therefore, we also examine the on-going value creation and wealth spillover that result from changes in membership. Moreover, we investigate how a firm's participation in an IT-based open alliance alters the market value of its rivals operating within the same marketplace. To gain additional insight into the factors that moderate the market valuation of OIA participation, several contextual factors, including the degree of partner heterogeneity, innovation type, and degree of openness of the OIAs are used to account for variability in abnormal returns. Based on 194 observations, we found that allying firms realize significant positive abnormal returns when their entry into an OIA is made public. The results also suggest that substantial excessive returns accrue to the allying firms with the belated entry of a market leader firm. Furthermore, we discovered that a firm ' s entry into an OIA increases, rather than decreases, the market valuation of its rivals. Interestingly, an incumbent rival that did not participate in the alliance appears to gain greater ' free-riding" benefits from the OIA, as compared to peer rivals.Innovation type and openness were significantly associated with the amount of abnormal returns accruing to allying firms, while no significance was found for partner heterogeneity. Finally, we conclude with a discussion of the implications of our findings for research and practice with respect to value cocreation in multifirm environments.
While firm-initiated compensation recovery (or clawback) provisions are gaining popularity and the recently enacted Dodd-Frank Act seeks to make the clawback of erroneously awarded compensation ...mandatory for all listed companies, little is known about their effectiveness. We find that the incidence of accounting restatements declines after firms initiate such provisions. In addition, we show that investors and auditors view such provisions as associated with increased accounting quality and lower audit risk. Specifically, we find that firms' earnings response coefficients increase after the adoption of clawback provisions. Further, for firms that adopt clawbacks, auditors are less likely to report material internal control weaknesses, charge lower audit fees, and issue audit reports with a shorter lag.
► Voluntary compensation clawback provisions improve earnings quality. ► Accounting restatements decline after firms initiate clawback provisions. ► Earnings response coefficients increase after clawback adoption. ► Internal control weaknesses identified by auditors decrease after clawback adoption. ► Auditors charge lower fees and issue audit reports faster after clawback adoption.
In a reprise of Lowe and Gardner's (2000) review of
The Leadership Quarterly's (
LQ) first decade as a premier outlet for scholarly leadership research, we review 353 articles published in
LQ during ...its second decade. Multiple methods were employed to prepare this review, including: interviews with the journal's current Senior Editor and Associate Editors; an assessment of
LQ's impact, reputation, and most cited articles through citation analyses; a content analysis of article type (theory, empirical, and methods), contributors (e.g., discipline, nationality, and institutional affiliation), theoretical foundations, research strategies, sample location/type, data collection methods, and analytical procedures; survey and follow-up focus groups conducted with
LQ Editorial Review Board members; and qualitative analyses to assess the prevalent themes, contributions, and trends reflected in
LQ during its second decade. Drawing from these sources, we describe anticipated directions for future research.
Security measures that deter crime may unwittingly displace it to neighboring areas, but evidence of displacement is scarce. We exploit precise information on the timing and locations of all Italian ...bank robberies and security guard hirings over a decade to estimate deterrence and displacement effects of guards. A guard lowers the likelihood a bank is robbed by 35% to 40%. Over half of this reduction is displaced to nearby unguarded banks. Theory suggests optimal policy to mitigate this spillover is ambiguous. Our findings indicate restricting guards in sparse, rural markets and requiring guards in dense, urban markets could be socially beneficial.
To explain the significant disparity of tourism development across Chinese provinces, this paper conducts a dynamic panel data analysis of tourism development in China using statistical data of ...Chinese provincial tourism industry for the 2000–2009 periods. The estimated results provide empirical evidence on the relationship between the agglomeration and development of Chinese provincial tourism in firm level. The econometric analysis shows that the tourism density in agglomeration has a positive influence on local tourism development. It appears that the variance of tourism development across Chinese provinces can be explained by the differences in the density of tourism economic activities.
► Agglomeration has become significant phenomenon of Chinese tourism industry. ► Density represents multi-dimensions and dynamic mechanism of tourism development. ► Dynamic Panel Data Model is appropriate and adopted in this paper. ► Agglomeration density has positive effect on Chinese tourism development.
This study reports productivity of authors, universities, and countries using research contributions to top hospitality and tourism journals. Since the new millennium, hospitality and tourism ...research has seen tremendous expansion and diversification. To understand hospitality and tourism research in the first decade of the new millennium, this study examined articles published in the six most commonly cited hospitality and tourism journals: Journal of Hospitality & Tourism Research, International Journal of Hospitality Management, Cornell Hospitality Quarterly, Tourism Management, Annals of Tourism Research, and Journal of Travel Research. To provide more insight, this study classified and analyzed articles from the selected journals into various research agendas. A total of 2,834 research articles in these journals from 2000 to 2009 revealed the 50 most prolific authors and universities and the 20 countries of residence of these authors and institutions in the field of hospitality and tourism. In addition, overall productivity rankings for 100 hospitality and tourism authors and universities and 30 countries are presented. The results of this study provide valuable and detailed information for academic stakeholders such as current and prospect graduate students, faculty, and academic administrators.
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