Browsing by Subject "511 Economics"

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  • Koskela, Erkki; Stenbacka, Rune; Juselius, Mikael (2013)
  • Oet, Mikhail V.; John, Dooley; Gramlich, Dieter; Sarlin, Peter; Ong, Stephen J. (Federal Reserve Bank of Cleveland, 2015)
  • von Essen, Emma; Huysentruyt, Marieke; Miettinen, Topi (2020-05-22)
    This paper analyzes a two-person, two-stage model of sequential exploration where both information and payoff externalities exist and tests the derived hypotheses in the laboratory. We theoretically show that, even when agents are self-interested and perfectly rational, the information externality induces an encouragement effect: a positive effect of first player exploration on the optimality of the second player exploring as well. When agents have other-regarding preferences and imperfectly optimize, the encouragement effect is strongest. The explorative nature of the game raises the expected surplus compared with a payoff equivalent public goods game. We empirically confirm our main theoretical predictions using a novel experimental paradigm. Our findings are relevant for motivating and managing groups and teams innovating not only for private but also and especially so, for public goods.
  • Husu, Liisa; Koskinen, Paula (2010-06)
    Gender patterns in technological and engineering research careers were explored in the EU funded 13-country study PROMETEA in 2005-2007, including old and new EU member states, and Serbia, the Russian Federation and Chile. Drawing from this study, the article analyses the gendering of key arenas of excellence in technological and engineering research from a comparative international perspective, with a focus on research funding, publishing, scientific prizes and awards, and patents. A central challenge for gender-sensitive science and research policy is how to combine the promotion of scientific excellence with the promotion of gender equality. Exploring the gendering of excellence in technology and engineering research is of special interest because of the strong position this field enjoys in national, European and international research policy and in national research policies, and also because it continues to be the most male-dominated research field. Furthermore, the article discusses methodological challenges of this type of comparative research.
  • Hyytinen, Ari; Ilmakunnas, Pekka; Johansson, Edvard; Toivanen, Otto (2019-05-14)
    Using twenty years of earnings data on Finnish twins, we find that about 40% of the variance of women’s and little more than half of men’s lifetime labour earnings are linked to genetic factors. The contribution of the shared environment is negligible. We show that the result is robust to using alternative definitions of earnings, to adjusting for the role of education, and to measurement errors in the measure of genetic relatedness.
  • Ruuska, Toni; Wilén, Kristoffer Bernhard; Heikkurinen, Pasi (2019)
  • Antell, Jan; Korkeamäki, Timo (University of Vaasa, 2014)
  • Oglend, Atle; Soini, Vesa-Heikki (2020-10-15)
    This paper investigates production license management when regulation constrains the number of production licenses to address production externalities. This is increasingly relevant for aquaculture production where disease issues threaten future seafood supply. The regulatory problem is analyzed in the context of Norwegian salmon aquaculture where a stop in issuance of new production licenses has been implemented to address social costs of parasitic sea lice. Our theoretical model shows that restricting number of licenses raises prices and shifts production efforts excessively towards greater stocking of fish per license. Hence, the policy cannot achieve a first-best welfare-maximizing allocation. Furthermore, restricting entry by limiting number of licenses can create regulatory rents, which effectively subsides rather than tax the source of the externality.
  • Andres, Pablo de; Arranz-Aperte, Laura; Rodriguez-Sanz, Juan Antonio (2017)
    Our study reveals how two separate dimensions of board composition-the proportion of independent directors and of non-independent directors-influence CEO compensation in Western European firms. Controlling for the simultaneous determination of CEO pay structure and board design, we find that firms with a higher proportion of non-independent outsiders on their boards pay less direct compensation (salary + bonus) and less equity-linked compensation to their CEOs. By contrast, CEOs working for firms with more independent boards receive more equity based-pay. When we control for the fact that equity linked is not granted systematically in Europe we find that firms with more independent directors on the board tend to grant equity linked compensation more often than firms with more non independent outside directors. Our results challenge the commonly accepted view of independent directors as safeguards of shareholder value, uncovering the relevance of non-independent outsiders for pay moderation and incentives.
  • Jach, Agnieszka (2017-07-05)
    We quantify time-varying, bivariate and multivariate comovement between international stock market returns, across various time scales, based on a novel approach of Fryzlewicz and Oh (2011) called thick pen transform. With help of this nonparametric and simple tool, we study 11 countries and examine their comovement with respect to (non-dyadic) time scales/frequencies, development and region. We also consider all possible 2036 different combinations of two or more of these countries. In the two-country case, we make comparisons with cross-correlations, either rolling-window or based on the multi-period returns. We find that in the bivariate set-up with the USA, the BRIC countries, except for Brazil (especially over small time scales), offer diversification benefits, while in the multivariate one, clustering with respect to America or Europe (but not Asia) leads to homogeneous groups. Hence development and region cannot always be considered as ultimate clustering factors. Leave-one-out cross-validation shows a nuanced interplay of time scales, development and region as grouping factors for Brazil, Japan, Hong Kong and Russia. Additionally, we provide an example of a time-scale-dependent portfolio strategy.
  • Lundqvist, Alex; Liljeblom, Eva; Löflund, Anders; Maury, Benjamin (2019-07-24)
    Purpose The cultural and legal differences between foreign acquirers and African target firms can be substantial. There is also a large variation in cultures and legal systems within Africa. However, there is limited research on merger and acquisition (M&A) performance by foreign firms in Africa. The purpose of this paper is to fill this gap by exploring the “spillover by law” hypothesis (Martynova and Renneboog, 2008) that focuses on the influence of the external environment on the governance and performance of foreign M&As in Africa.   Design/methodology/approach The data set covers 415 M&A transactions by foreign firms in Africa during the period of 1999–2016. Dynamic data covering the country’s legal, cultural and political environment are collected from the World Bank, the Heritage Foundation and Transparency International.   Findings The authors find that the legal environment significantly affects the returns of bidders on African firms. For complete acquisitions, bidder returns are significantly higher when the bidder’s country has higher shareholder protection and higher creditor protection compared with the target firm’s country. The results show that the effects are significant when there is a full control change (including a change in the target firm’s nationality) but not in the case of partial control transfers. The results are consistent with the “spillover by law” hypothesis.   Originality/value The authors contribute to the literature on cross-border M&As by separately studying the valuation effects of full, majority and minority changes in control; by being the first study of the legal spillover effects in Africa; and by being the most extensive study of the legal determinants of the valuations of non-African acquirers of African firms.
  • Stenbacka, Rune; Tombak, Mihkel (2012)
  • Blomkvist, Magnus; Felixson, Karl; Korkeamäki, Timo (2018-07-15)
    We examine the effects of cultural differences on the outcome of takeover contests. Our main focus is on individuality, which we posit to have an effect on firm behavior in international takeover contests. In a sample of international acquisitions with bidders from multiple countries, we find that individuality positively relates to the probability of placing the winning bid. We further find that takeover contest winners with high individuality scores experience lower announcement returns. Our results are consistent with the literature that links individuality to overconfidence. Our evidence suggests that firms should control culture‐related behavioral biases in their mergers and acquisitions activity.
  • Barron, Kai; Nurminen, Tuomas (2020-04-29)
    This paper experimentally studies two simple interventions that an authority figure might employ to promote cooperation in a public goods game when accurate feedback about contributions is not available. The first intervention aims to nudge participants to higher contribution levels by labeling contributions above a particular threshold as being “good”. Such a “norm-nudge” is intended to provide subjects with a clear, valenced focal point upon which they can coordinate. The second intervention aims to exploit lying aversion to induce higher contributions by requiring subjects to announce how much they contributed. We find that the nudge leads to a striking increase in the cooperation rate. By contrast, the ex post announcement mechanism does not have a significant effect on the cooperation rate. We present suggestive evidence that the nudge we use provides subjects with a focal point, helping conditional cooperators to coordinate their contributions.
  • Stenbacka, Rune; Tombak, Mihkel (2018-01-23)
    We analytically characterize the effects of ownership and competition in the healthcare industry on quality provision, market coverage and optimal reimbursement policy. A for-profit monopoly selects a lower quality than a nonprofit supplier, and the socially optimal reimbursement rate with a nonprofit monopoly exceeds that with a for-profit monopoly. We establish that the optimal repayment policy is invariant to the introduction of competition by a for-profit high-quality supplier. Thus, market coverage is invariant to the introduction of competition, whereas consumers with a higher willingness to pay for quality are better off with competition.
  • Takalo, Tuomas; Hyytinen, Ari; Stevenson, Alexis (2021)
    Tässä kirjoituksessa tehdään katsaus patenttien taloustieteellisiin arvottamismenetelmiin ja niistä johdettuihin arvioihin patenttien arvosta. Sen lisäksi raportoidaan uusia tuloksia suomalaisten yritysten (ja eräiden muiden organisaatioiden) patenttien arvosta ja verrataan niitä aiemmin Suomesta saatuihin tuloksiin. Eri arvottamis-menetelmillä saadaan laadullisesti samansuuntaisia tuloksia patenttien arvojakauman muodosta ja toimiala-eroista arvojen välillä. Eri menetelmät tuottavat kuitenkin erisuuruisia estimaatteja patenttien arvosta johtuen mm. eroista menetelmien vastafaktuaaleissa ja siitä, kuinka hyvin eri menetelmät pystyvät erottelemaan patent-tien ja niiden suojaamien keksintöjen arvoa toisistaan. Suomalaisella aineistoilla saadut tulokset ovat saman-suuntaisia kuin muista maista saadut tulokset. Tässä kirjoituksessa raportoidut uudet tulokset viittaavat siihen, että suomalaisten yritysten (ja muiden organisaatioiden) patenttien yksityinen arvo on ollut nousussa.
  • Andersson, Ola; Huysentruyt, Marieke; Miettinen, Topi; Stephan, Ute (2016-02-29)