Effects of child support and welfare policies on nonmarital teenage childbearing and motherhood

This paper is an assessment of the impact of child support enforcement and welfare policies on nonmarital teenage childbearing and motherhood. We derive four hypotheses about the effects of policies on nonmarital teenage childbearing and motherhood. We propose that teenage motherhood and school enrollment are joint decisions for teenage girls. Based on individual trajectories during ages 12–19, our analysis uses an event history model for nonmarital teenage childbearing and a dynamic model of motherhood that is jointly determined with school enrollment. We find some evidence that child support policies indirectly reduce teen motherhood by increasing the probability of school enrollment, which, in turn, reduces the probability of teen motherhood. This finding suggests that welfare offices may wish to place greater weight on outreach programs that inform more teenagers of the existence of strong child support enforcement measures. Such programs might reduce nonmarital teen motherhood further and thus reduce the need for welfare support and child support enforcement in the long run.

From Mothers of the “People's Home” to Biologically Rational Consumers

The aim of the present article is to study how women's alcohol consumption has been defined and contested in the Swedish press from 1955 to 2010 in relation to the development of Swedish society from a social democratic welfare state to a neoliberal competition state. Our material consists of articles published in the largest Swedish national and regional newspapers in 1955, 1965, 1977, 1982, 1995, 2004, and 2010. In the study, we apply Fraser's concepts of recognition and redistribution to analyse how the press contributed to the formation of cultural injustices and counter-claims through its recognition of women's drinking, and how these cultural injustices and counter-claims have conditioned the redistribution of societal resources. Our analysis shows that, during the study period, women were recognized in the Swedish press in limited and stigmatizing subject positions. These dominating representations of drinking women changed over time in an unpredictable way. As collectively shared, widely accepted cultural images, they tended to downplay the possibility of women achieving equal and just participation in cultural interaction, social activities, and healthcare services. In counter-discourses, the possibilities for women to formulate public claims in order to make surrounding structures more “enabling” of their independency, weakened during the study period.     

Functional Upgrading and Value Capture of Multinational Subsidiaries

This paper investigates the relationship between the value capture of multinational subsidiaries and functional upgrading, which is defined as a diversification of employment from primary business functions to higher value adding activities such as ICT, R&D, marketing or logistics. By combining survey-based business function indicators with longitudinal accounting data for a representative sample of multinational subsidiaries located in six Central and Eastern European countries (CEECs), we assess the impact of functional upgrading on foreign subsidiaries' value capture. The results provide robust evidence that the breadth as well as the scope of functional upgrading induces an upward shift of subsidiaries' value added. The effect of functional upgrading is stronger in the earlier phases after entry of the foreign investor, while the long-term growth trend remains unaffected.     

The how and why of a firm’s approach to CSR and sustainability: a case study of a large European company

This paper aims to analyse “how” and “why” a company engages in CSR and sustainability. The “how” concerns the features of the firm’s CSR and sustainability approach, defined in terms of a firm’s strategy (implemented issues, initiatives and activities) and organization (organizational structures and roles and managerial systems adopted). The “why” refers to the key determinants, both internal and external, of CSR and sustainability. Finally, how the firm’s CSR and sustainability approach evolves over time and the relation between CSR determinants in various stages of the CSR evolutionary path are also investigated. The research method is based on the longitudinal analysis of a case study concerning a large multinational company operating in the telecommunications industry in Europe. The analysis of the case study shows that sub-cultural differences in the approach to CSR and sustainability may occur across hierarchical levels and functional units. Moreover, embedding CSR and sustainability principles doesn’t follow a linear and continuous process, made by sequential stages. Indeed, it can be characterized by an up and down evolutionary path, based on different stages with a changing emphasis given to CSR and sustainability issues. Finally, we find that the firm CSR and sustainability approach is not an autonomous choice, but it is a consequence of the contingent role played by both the external and the internal drivers and by their relative importance during the company’s CSR history.     

Intensity, timeliness, and success of incumbent response to technological discontinuities: a synthesis and empirical investigation

The extant literature highlights numerous different factors influencing the timeliness and intensity of incumbent response to discontinuous technological change. However, this literature has so far not been synthesized and is therefore limited in its analytical, predictive, and normative power. We develop a comprehensive model of incumbent response that organizes different explanatory factors into the three distinct dimensions of (1) identification and interpretation, (2) decision making, and (3) organizational implementation. We also conceptualize how response intensity and timeliness affect business performance in new technological domains. We test the model against data from 320 firms from the German dental lab industry, finding substantial support for the majority of our hypotheses. This study offers unique empirical insight in observing that cognitive constructs such as framing and management flexibility have the strongest impact on both intensity and timeliness of incumbent response to technological, and thus, strategic discontinuities. Together, our findings have important implications for both theory and practice.     

Explaining the demand for structured financial products: survey and field experiment evidence

In many countries structured investment products are popular among retail investors. We explain the demand for these products using unique field data where we let subjects freely design their “favorite” structured product. Results suggest that the supply with capital protected products (guarantee certificates) might indeed be demand-driven. This does not seem to be the case for other product categories where marketing and sales practices might play a more important role. In a survey among financial practitioners we find furthermore that a demand for capital protected products can be explained by loss aversion and saving motifs, e.g. for buying a house.     

Human capital and agency effects on CEO compensation of IPO biopharmaceutical firms and the market’s response

This paper examines the determinants of base pay and total incentive compensation packages of CEOs of biopharmaceutical firms that have recently gone public, and whether human capital and agency factors affect the market’s response to the initial public offering. We find that in terms of net proceeds, the IPO market appears to reward the firms that have founder-CEOs and CEOs with higher incentive compensation. CEOs with prior venture capital experience are associated with receiving higher incentive compensation, while CEOs with a greater ownership interest in the firm receive lower incentive compensation but higher salaries. CEOs of firms with a greater percentage of insiders are associated with lower salaries. The results should add to our understanding related to human capital and agency theories, as well as help firms and investors better understand and structure CEO compensation.     

Zum Einfluss der Inhaberführung auf die Betriebsrat-Geschäftsführer-Beziehung – Eine theoretische und empirische Analyse in mittelständischen Unternehmen

This paper examines the quality of the relationship between business managements and works councils in small and medium-sized enterprises and strives for answering the question, which factors determine the quality. As ownership is an important determining factor of the establishment of works councils in small and medium-sized businesses, especially the impact of ownership on this relationship has been investigated. Agency theory and stewardship theory give hints that the owner management can have different impacts on this relationship. In order to test these contradictory hypotheses we have estimated a Heckman selection model to investigate which factors determine the quality of the relationship between business managements and works councils. Our results based on data generated from a survey in small and medium-sized enterprises conducted by the IfM Bonn in the years 2005 and 2006 indicate that ownership has a negative influence on the establishment of works councils, but a positive one on the quality of the relationship between business management and works council. Thus, the hypotheses predicting the existence of stewardship behaviour among owners and the existence of agency behaviour among managers can be confirmed.     

Conservative accounting as a signaling device in debt covenants

This paper provides a signaling explanation for benefits of conservative accounting in a debt contracting setting. It develops a model in which firms want to finance more or less risky projects through debt, which is private information. Creditors price the risk on average riskiness, which implies a relatively high interest rate for low-risk firms. These firms can signal their low-risk type by implementing a conservative accounting system. The accounting signal is used in a debt covenant that stipulates early repayment in case of a bad signal. Thus, the low-risk firms benefit from a lower interest cost, but at the cost of higher risk of being forced to liquidate a profitable project. The analysis establishes conditions for separating and pooling equilibria and determines their individual and social welfare implications. It shows that conservative accounting by low-risk firms can even increase social welfare if it mitigates underinvestment.     

Rapid Trading bei deutschen Aktienfonds: Evidenz aus einer großen deutschen Fondsgesellschaft

This paper is the first to examine rapid trading among German equity mutual fund investors. Using data on inflows and outflows provided by a large German mutual fund company for all of its equity funds, we find strong evidence for rapid trading. It is particularly pronounced for small funds, risky funds, funds with low nominal prices, and international funds. However, we find no evidence of market timing activities. Furthermore, unlike in the US, rapid trading is less pronounced for funds with high loads. This shows that rapid trading among German fund investors is not explained by churning due to brokers’ advice. Rather, our results are consistent with the view that some investors use mutual funds for short-term, speculative purposes. The funds among which we observe the strongest rapid trading show lottery-like characteristics. Regarding fund performance, we find (at most) only very weak evidence for a negative impact of rapid trading on fund performance before the fund scandal of 2003, and no evidence afterwards.