Cross-national differences in effects of social embeddedness on trust: A comparative study of German and Dutch business transactions

Embeddedness theory stresses the importance of concrete personal relations and networks of relations in economic life. Recent sociological research shows that effects of embeddedness may differ between social settings, and recent experimental anthropological findings reveal that levels of cooperation and norm-enforcement differ between cultural settings. We extent these lines of research by examining whether effects of embeddedness on trust differ between two social settings, namely Germany and The Netherlands. To examine our research question we use a comprehensive database consisting of 925 Dutch and 929 German purchase transactions. We find evidence that some aspects of social embeddedness indeed have different effects in the two countries. In Germany sharing a history of previous transaction and the existence of alternative partners had a larger effect on trust than in the Netherlands. We offer a potential explanation and discuss its implications for future research on embeddedness.     

Determinanten des Informationsgehalts von Managementprognosen – eine empirische Untersuchung anhand der DAX und MDAX-Unternehmen

In this article the characteristics and determinants of the information content of management earnings forecasts of the German DAX and MDAX companies between 2002 and 2005 are analyzed. As proxy for the information content I use the precision of the wording of a forecast. I can show that the forecasts of MDAX companies are more precisely formulated than those of DAX companies. Furthermore forecasts are formulated more precisely, when companies have, (1) a lower percentage of intangible assets, (2) lower market capitalization, (3) lower volatility of earnings and (4) a higher need for external financing.     

Estimating German overqualification with stochastic earnings frontiers

We estimate individual potential income with stochastic earnings frontiers to measure overqualification as the ratio between actual income and potential income. To do this, we remove a drawback of the IAB employment sample, the censoring of the income data, by multiple imputation. The measurement of overqualification by the income ratio is also a valuable addition to the overeducation literature because the well-established objective or subjective overeducation measures focus on some ordinal matching aspects and ignore the metric income and efficiency aspects of overqualification.     

The periodogram regression:correction and comments

Ratios of periodogram and spectral density at different harmonic frequencies are independent if the frequency zero is approached slowly enough. This is an asymptotically relevant condition for the periodogram regression to work with fractionally integrated series. In finite samples, however, this theoretical condition should be ignored as we illustrate experimentally.     

Authors’ response: on the role of data,statistics and decisions in a pandemic

AStA Advances in Statistical Analysis -