Managerial reforms,institutional complexity and individuals: an empirical analysis of higher education

Journal of Management and Governance - Many reforms have aimed at introducing and developing managerial tools in public organisations. However, their limited degree of translation is still...     

Executive remuneration in blockholder-dominated firms. How do Italian firms use stock options?

The aim of this study is to explore how stock options are used for executive remuneration in blockholder-dominated listed firms. By analysing how stock options granted to executive directors were designed, this paper sheds light on how stock options are used in Italian blockholder-dominated listed firms. Empirical evidence from a unique hand-collected dataset comprising stock options granted by Italian non-financial listed firms between 2004 and 2006 suggests that stock option design seems to be better explained by rent-extraction theory than by optimal contracting theory. Our results suggest that board independence, particularly in terms of minority shareholders?? representation, seems to have a positive influence on stock option design. These findings are consistent with rent-extraction theory: stock option designs that are not explained by optimal-contracting theory are likely to reflect governance/agency problems. This study provides insights on executive remuneration to policy-makers. It is recommended that codes of best practice should stress the importance of stock option design and of remuneration committees?? independence, in particular in terms of minority shareholders?? representation. Last but not least, this study points out the importance of enforcing substantial compliance with the codes?? recommendations.     

A proposal for categorizing the severity of non uniform differential item functioning: The polytomous case

Abstract

Differential item functioning (DIF) is present when something about the characteristics of a test taker interferes with the relationship between ability and item response. Non uniform DIF (NUDIF) exists when there is interaction between ability level and group membership. The aim of this study is to propose guidelines to evaluate the severity of NUDIF, taking into account the family of Rasch models. The severity of NUDIF is evaluated trying to quantify the overall biasing impact of the presence in the test of NUDIF items, on the estimated measure of the latent trait of interest.     

Modelling small and medium enterprise loan defaults as rare events: the generalized extreme value regression model

A pivotal characteristic of credit defaults that is ignored by most credit scoring models is the rarity of the event. The most widely used model to estimate the probability of default is the logistic regression model. Since the dependent variable represents a rare event, the logistic regression model shows relevant drawbacks, for example, underestimation of the default probability, which could be very risky for banks. In order to overcome these drawbacks, we propose the generalized extreme value regression model. In particular, in a generalized linear model (GLM) with the binary-dependent variable we suggest the quantile function of the GEV distribution as link function, so our attention is focused on the tail of the response curve for values close to one. The estimation procedure used is the maximum-likelihood method. This model accommodates skewness and it presents a generalisation of GLMs with complementary log–log link function. We analyse its performance by simulation studies. Finally, we apply the proposed model to empirical data on Italian small and medium enterprises.     

Maximum likelihood estimation of a generalized star(p; 1p) model

Summary A STAR model is characterized by autoregressive terms lagged both in time and space. The model we call GSTAR presents also contemporaneous spatial correlation. Under the hypothesis of stationarity we derive conditional maximum likelihood estimators of the autoregressive parameters and a consistent estimator of their covariance matrix.     

Explaining Gender Inequalities That Follow Couple Migration

By exploiting the unique social and economic differences between East and West Germany, the authors investigated how macro‐level opportunities interact with couple‐level decision making to explain gender differences in the determinants and economic outcomes of household migration. By incorporating regional socioeconomic conditions into household bargaining theory, 4 hypotheses for each region were derived. The hypotheses were tested using cross‐classified multilevel regressions and the German Socio‐Economic Panel (1992–2012) combined with regional economic indicators. First, gender‐specific determinants of couples' West–West (i.e., within West Germany) and East‐to‐West migration were analyzed; second, subsequent economic consequences were investigated by comparing couples with singles. The results confirm that gender differences in macro‐conditions can impose decision logics that seemingly contradict the initial power relation within couples. Despite more traditional gender arrangements in West Germany, well‐educated partnered women earn significant absolute and relative income gains from migration; their egalitarian East German counterparts suffer significant losses compared with single women and East German men.     

The Management of Redundancies in Europe: The Case of Italy

The paper presents the findings of comparative and interdisciplinary legal and economic study on managing labour redundancies in seven EU member countries. It is structured for comparability between the systems examined. The introductory section contains an account of the evolution of the Italian labour market, with special reference to redundancy trends, of the features of the programmes for managing redundancies, of the roles of firms and the ‘external environment’ in handling workforce adjustments. The second section presents a map of policies that work to prevent labour redundancies (preventive measures) such as flexibility, training etc. Next, the instruments for handling temporary labour redundancies (retentive measures) are examined (e.g. short-time working, temporary layoffs etc.). The following section is devoted to instruments and programmes involved in the management of permanent labour redundancies (expulsive measures), e.g. collective dismissals, severance pay etc. The final section provides an overall assessment of the Italian system for managing labour redundancies, and briefly discusses the national debate on the prospects for reform, in light of the principles and policies of convergence set forth by the European Union.     

Laypeople''s and Experts'' Perception of Nanotechnology Hazards

Public perception of nanotechnology may influence the realization of technological advances. Laypeople's (N=375) and experts' (N=46) perception of 20 different nanotechnology applications and three nonnanotechnology applications were examined. The psychometric paradigm was utilized and applications were described in short scenarios. Results showed that laypeople and experts assessed asbestos as much more risky than nanotechnology applications. Analyses of aggregated data suggested that perceived dreadfulness of applications and trust in governmental agencies are important factors in determining perceived risks. Similar results were observed for experts and laypeople, but the latter perceived greater risks than the former. Analyses of individual data showed that trust, perceived benefits, and general attitudes toward technology influenced the perceived risk of laypeople. In the expert sample, confidence in governmental agencies was an important predictor of risks associated with nanotechnology applications. Results suggest that public concerns about nanotechnology would diminish if measures were taken to enhance laypeople's trust in governmental agencies.