Internal corporate governance mechanisms as drivers of firm value: panel data evidence for Chilean firms

The paper analyses to what extent ownership structure, capital structure, and dividend policy as corporate governance mechanisms drive the firm value. From a data panel of publicly quoted Chilean firms for the years 2002–2010, we find that there is an inverse U-shaped relationship between ownership concentration and firm value. The positive slope is supported by the supervision hypothesis; whilst the negative relation between ownership concentration and firm value is supported by the expropriation hypothesis. We also find that there is a positive impact of both leverage and the dividend pay-out on the firm value. In this case, these two mechanisms reduce the free cash flows which otherwise might be used opportunistically by managers in their own interests (free rider problem). Contrary to the previous empirical literature in Chile, it is found that the mere fact that a firm is affiliated to a business group/conglomerate impacts positively its value. This positive effect is basically driven by the development of intragroup capital markets, and the governance imposed by the rules of the conglomerate.     

On time and money donations

This paper investigates the importance of two forms of ‘impure’ altruism (“warm glow” and reputational concerns) as potential determinants of both time and money gifts. We first develop a comprehensive behavioral model which accounts for both types of donations, as well as for decisions about domestic and market hours of work. We then provide an empirical test of these drivers for giving using survey data for Italy. Results suggest that, according to the theoretical predictions, proxies for ‘impure’ altruism are important determinants of donations. Moreover, the unobservable determinants driving money and time donations are positively correlated, suggesting a certain degree of complementarity between the two decisions. Our findings also stress the importance of considering a behavioral model accounting for a full set of time and income uses to better characterize individual decisions to donate.     

Stair-ascent performance in elderly women: effect of explosive strength training

Explosive-type strength training may alter kinetics and neuromuscular activity during stair ascent in elderly women. This may improve functional ability. Nineteen women (69.7 ± 3.4 yr) were randomly allocated to strength training (TG; twice per wk, 12 wk) or a control group (CG). Stair ascent was assessed at self-chosen (AFV), standardized (ASV), and maximal velocity (AMV) pre- and posttraining. Ground-reaction force (GRF) and EMG quantified kinetics and neuromuscular activity. After training, TG increased AMV and AFV velocity by 8% (p = .02) and 17% (p= .007), respectively (TG vs. CG; p< .05). This was accompanied by elevated rectus femoris EMG (from 21% to 48%, p< .047). At AFV, TG increased GRF first peak force 4% (p= .047), and CG increased second peak force 5% (p = .036). Muscle coactivation remained unaltered in both groups. Explosive-type strength training led to enhanced stair-climbing performance at maximal and self-chosen speed, reflecting an improved functional ability.     

Optimal Policies for Recovering the Value of Consumer Returns

This study characterizes the class of Pareto optimal returns policies between a manufacturer and a retailer who receives consumer returns. The manufacturer may take a costly hidden action that reduces the expected number of products returned by consumers, which when realized is hidden information known only to the retailer. When faced with consumer returns, the retailer must decide whether to send the product back to the manufacturer, who harvests a low salvage value, or to engage in costly refurbishment that permits the returned product to be resold to consumers. We find that the optimal returns policies may be implemented through the payment by the manufacturer of a full refund to the retailer of the wholesale price for any returns as well as a bonus paid to the retailer that is decreasing in the number of returns to the manufacturer.     

Assessing Crew Response Probability for a Sequence of Actions with an Overall Time Constraint

The following situation has been considered: during an accident sequence, a crew has to do a proper set of actions within a finite time window in order to achieve a specific goal. The operator actions are considered independent, they are lined up in series, and a single failure leads to mission failure. This paper proposes a general methodology for assessing the crew response (or success) probability, through a convolution integral formulation. This method is general and can be applied to any response probability model; an application to the Human Cognitive Reliability model is given.     

“Whom should We Help First?” Transnational Helping Practices in Ecuadorian Migration

Collective remittances, in the framework of migrant transnationalism, have been recently dealt with in some empirical research, especially on the Mexican‐US migration system. Far less studied is their significance in different migration flows, including their real contribution – as desirable as this may be – to local development. The article is concerned with a bottom up analysis of a migration flow where collective remittances – as the only way for emigrants to keep helping their local communities, well beyond their own families – are still in their infancy. It explores, through a translocal ethnography of Ecuadorian migration to Italy, the underlying attitudes, personal meanings and expectations – as well as the structural opportunities and constraints – accounting for helping practices at a distance. Charitable transfers to communities of origin are reconstructed as to their motivations, their main aims and beneficiaries, their embeddedness in mutual networks among immigrant co‐nationals. How is it that some of them decide to help “people in need” in their own communities overseas, or in their home towns, or in both? Is this an expression of communal belonging, or a matter of social status maintenance, or something else? Further reflections on the dilemmas inherent in transnational helping practices are then developed. Concluding remarks emphasize the relatively poor scope for such initiatives, in a recent and first‐generation flow over a long distance. While co‐ethnic solidarity overseas is a precondition for transnational helping practices, the latter are also affected by the developments of public policies in the countries of origin and of destination. Overall, an effective integration overseas is necessary for collective remittances to have some currency and impact.     

POLITICIANS AT WORK: THE PRIVATE RETURNS AND SOCIAL COSTS OF POLITICAL CONNECTIONS

We quantify the private returns and social costs of political connections exploiting a unique longitudinal dataset that combines matched employer–employee data for a representative sample of Italian firms with administrative archives on the universe of individuals appointed in local governments over the period 1985–1997. According to our results, the revenue premium granted by political connections amounts to 5.7% on average, it is obtained through changes in domestic sales but not in exports, and it is not related to improvements in firm productivity. The connection premium is positive for upstream producers for the public administration only, and larger (up to 22%) in areas characterized by high public expenditure and high levels of corruption. These findings suggest that the gains in market power derive from public demand shifts towards politically connected firms. We estimate that such shifts reduce the provision of public goods by approximately 20%.     

Differences in fertility behavior and uncertainty: an economic theory of the minority status hypothesis

We revisit the question of why fertility behaviors and educational decisions appear to vary systematically across ethnic groups. We assess the possibility that differences in fertility across groups remain even though their socio-economic characteristics are similar. More specifically, we consider that parents’ fertility decisions are affected by the uncertainty concerning the future economic status of their offspring. We assume that this uncertainty varies across groups and is linked to the size of the group one belongs to. We find theoretical support for the minority status hypothesis according to which members of large minorities usually have a higher fertility than those in the majority facing low potential for social mobility while small minorities have lower fertility.     

Cultivating Hustlers: The Agrarian Ethos of Soninke Migration

Sedentariness has been disregarded in migration studies. Although recent scholarship pays greater heed to immobility, the latter is often narrowly conceptualised as the exact opposite of mobility. This article attempts to overcome such dichotomies by focusing on agrarian life and activities in one of the most migratory rural contexts in West Africa, namely the Soninke villages of the Upper Gambia River valley. It shows how young men—normally the most mobile group in Soninke society—are trained to embody an agrarian ethos in order for them to be able to pursue not only agricultural livelihoods but also migratory ones. Physical, social and moral virtues cultivated in farm fields are thought to make the young man fit and adaptable to life and work abroad. The article further suggests that this agrarian ethos is reproduced through migratory dynamics, such as the integration of West African migrants as unqualified labourers in the stratified labour market of Europe and North America. As a synthesis or symbiosis between mobile and immobile cultural practices, the Soninke agrarian ethos provides us with ways of rethinking the relation between migration and sedentariness, thus bridging the dichotomy between the two.