corporate philanthropy ownership type and financial transparency drawing on stakeholder theory and the concept of enlightened self interest we argue that firms that actively engage in corporate philanthropic giving also tend to demonstrate greater concern for investors interests by providing more transparent financial information and avoiding corporate misconduct moreover the relationships between corporate giving financial information transparency and corporate misconduct vary significantly according to the firm s ownership type which affects the fundamental motivations for corporate philanthropy in a sample of chinese publicly listed firms from the 2003 2009 period we find a positive relationship between corporate giving and financial transparency and note that the relationship is stronger for non state owned enterprises non soes we also find a significantly negative association between corporate giving and corporate misconduct for non soes but not for soes taken together these findings suggest that responsibility to both stakeholders and shareholders is a vital part of building trust and reputations in china s non soe sector

labor market segmentation a cluster analysis of job groupings and barriers to entry real expenditures on public assistance programs have increased substantially in the past two decades as has real per capita income investments in a variety of education programs have risen and a number of jobs programs have been tried although there have been some gains for example a decline in the percentage of the population in poverty 31 474 a number of disparities persist unemployment remains at record levels and the prospect for sizable reductions in the unemployment rate seems quite small there are persistent differences between the mean household incomes of blacks and whites that have not narrowed at all during the past two decades 15 there is also a widespread perception that a disadvantaged segment of the u s population has no effective access to good jobs and if such persons get them they do not stay employed for long this means that many such adults are caught in a cycle of unemployment welfare dependency bad jobs and intermittent employment whereas there is nearly universal agreement that the persistent disparities in well being are undesirable there is considerable disagreement on what to do about this in part the disagreement stems from ignorance about the facts for example rigorous operational definitions of good and bad jobs have not been developed the notion that some persons do not have access to the good jobs is primarily based on anecdotes fortunately longitudinal data bases are now available that permit more rigorous empirical analysis of such issues

corporate philanthropic disaster response and ownership type evidence from chinese firms response to the sichuan earthquake this article examines whether the charitable giving amount and likelihood of firm response to catastrophic events relate to firms ownership type using a unique dataset of listed firms in china where state ownership is still prevalent based on the data of chinese firms response to the 2008 sichuan earthquake we find that the extent of corporate contributions for state owned firms following this disaster is less than that for private firms state owned firms are also less likely to respond in this disaster compared to private firms the results also reveal that firm size profitability geography cash resource available and leverage affect firms philanthropic disaster response behavior in china

does corporate social responsibility matter in asian emerging markets this study addresses the question whether corporate social responsibility csr matters in asian emerging markets based on csr scores compiled by credit lyonnais securities asia we assess the csr performance of major asian firms over a period of 3 years from 2001 to 2004 the results show that there is a positive and significant relation between csr and market valuation among asian firms we further find that csr is positively related to the market valuation of the subsequent year more importantly asian firms are rewarded by the market for improving their csr practice

being good when being international in an emerging economy the case of china the importance imposed on corporate social responsibility csr is greater in developed economies than in emerging markets the pressures from various stakeholder groups on the csr are expected to have substantial spillover impact on companies domiciled in emerging economies that obtain revenues from companies in developed economies based on the data from 1 330 listed companies in china the largest emerging economy in the world this study provides evidence that the csr performance of china firms is positively related to the degree of their internationalization and such a positive association is less pronounced for state owned enterprises our findings support the hypothesis that internationalized companies in emerging economies are motivated to improve their csr practices to address concerns from their importers or outsourcers in developed economies

wage determination for career and non career workers in the uk is there labour market segmentation this study proposes that the earnings of career employees are influenced by a different set of parameters from the earnings of non career employees the above proposition is tested by using a matched employer employee sample within the econometric framework of a bivariate sample selection model where the career status is modelled as endogenous and is subject to choice decisions

the multitask theory of state enterprise reform empirical evidence from china the degree of state ownership remains significant in the chinese economy despite more than two decades of economic reform since 1979 most of the remaining state owned enterprises soes are money losing and the few exceptional ones tend to be sheltered by government protection in selected industries yet china has been enjoying one of the most spectacular growth experiences in world history and much of the growth is driven by non state owned enterprises non soes given the poor financial performance of soes the co existence of state ownership and non state ownership in china is a puzzling phenomenon does state ownership exist solely for the benefit of politicians or has state ownership played any role in china s spectacular growth is there any rationale behind china s gradual and selective approach towards privatizing its soes what types of soes does the chinese government choose to privatize what are the consequences of privatization in this paper we offer a multitask theory of soe reform in the context of china which has predictions about the types of soes to be chosen for privatization and the results of privatization we then present empirical evidence supporting the basic premise of the theory and its predictions

social polarisation the labour market and economic restructuring in europe an urban perspective it is frequently argued that changes in the occupational structure and labour markets of european cities have the potential to undermine social cohesion the term social polarisation has been wid

how fast should we graze the global commons unlike the vast preponderance of planets earth has been bequeathed a hospitable environment in which to thrive up to now man s activities have affected this environment negligibly scientists are becoming convinced however that release of carbon dioxide co2 from combustion of fossil fuels will lead to a significant modification of the global climate see woodwell how should we think about such a destruction of our heritage should it be treated as anathema like bondage or should the pace and extent of use of our global commons be subject to the same reasoned balancing of costs and benefits as other economic activities the present paper takes the second approach asking how fast the global economy should allow a buildup of atmospheric co2 the first section reviews the current scientific knowledge on this subject while the second puts this into an optimal growth framework the third section then presents a numerical example while the last presents some realistic policy views on the subject this abstract was borrowed from another version of this item

political connection ownership structure and corporate philanthropy in china a strategic political perspective this paper investigates whether philanthropic giving decisions and amount of charitable giving are related to firms political connections and ownership type to this end chinese firms listed on either the shenzhen or shanghai stock exchange between 2004 and 2011 are examined where government interference in the business sector is prevalent state ownership structure is dominant and corporate political connections prevail our analyses show 1 a significant and positive relationship between political connections and the likelihood and extent of firm contributions 2 a significant and negative relationship between state ownership and extent of firm contributions and 3 a stronger relationship between political connections and corporate philanthropy in non state owned firms these findings with regard to the relationship between corporate giving political connections and ownership type have important implications for understanding corporate giving behavior in china and in emerging markets in general

further evidence of the relevance of the dual labor market hypothesis for the u k this study proposes that the earnings of career employees are influenced by a different set of parameters from the earnings of non career employees the above proposition is tested by using a matched employer employee sample within the econometric

the effects of firm size and industry on corporate giving recent downward trends in corporate giving have renewed interest in the factors that shape corporate philanthropy this paper examines the relationships between charitable contributions firm size and industry improvements over previous studies include an irs data base that covers a much broader range of firm sizes and industries as compared to previous studies and estimation using an instrumental variable technique that explicitly addresses potential simultaneity between charitable contributions and profitability important findings provide evidence of a cubic relationship between charitable giving and firm size and evidence of strong industry effects the plus minus plus regression coefficient sign pattern for the cubic firm size model suggests that small and large firms give more relative to total receipts with lower giving ratios among medium size firms one interpretation for this finding is that small firms are close to the communities they serve while high visibility creates a need for large firm philanthropy strong industry effects provide evidence of inter industry differences in giving culture and or different public relations requirements across industries

segmentation in the brazilian labor market abstractthis article measures the degree of segmentation in the brazilian labor market controlling for observable and unobservable characteristics workers earn more in the formal sector which supports the segmentation hypothesis we break down the degree of segmentation by socioeconomic attributes to identify the groups where this phenomenon is more prevalent we also investigate the robustness of our findings to the inclusion of self employed individuals

corporate social responsibility ownership structure and political interference evidence from china prior research suggests that ownership structure is associated to corporate social responsibility csr in developed countries this article examines whether and how ownership structure affects csr in emerging markets using chinese firms social responsibility ranking our empirical evidences show that for non state owned firms corporate ownership dispersion is positively associated to csr however for state owned firms whose controlling shareholder is the state this relation is reversed we attribute the reversed relationship to political interferences and further test this hypothesis by demonstrating that regional economic development is negatively related to csr for state owned firms due to decreased political interference in more developed areas this study is the first to directly examine the relationship between the dispersion of corporate ownership and csr in emerging markets and our results depict that it is important to consider ownership type in assessing csr in emerging market where state ownership is still prevalent such as china the results also reveal that firm size profitability employee power leverage and growth opportunity affect csr in china

the invisible hand and the grabbing hand evidence from a survey of 105 shop owners in moscow and warsaw shows that the reliance on private protection as well as the burden of regulation and corruption are much greater in moscow the evidence suggests that the invisible hand model of government better fits the warsaw local government and the grabbing hand model is more appropriate for moscow the evidence implies that the singular focus on the speed of economic reforms to understand the success of transition is misplaced and that the quality of government may be as essential this abstract was borrowed from another version of this item

ecological economics and scientific controversies lessons from some recent policy making in the eec abstract contrasting the very limited scientific evidence on the forest dieback issue with the sudden adoption of policies on air pollution decided in the frg 1983 1984 and extended to the european community 1985 we propose an interpretative framework for the real internalization process at work in what was tantamount to a social crisis for public opinion the media and political actors we conclude that open scientific controversies on some environmental issues effects causes solutions pave the way for some actors to use the issue for their own techno industrial strategies quite alien to ecological constraints in cases of very high uncertainties on impacts it becomes impossible to apply conventional social cost benefit analysis scba as an optimizing tool we propose to develop economic analysis as a negotiation language and to give pride of place to the value of learning time and to the crucial role of technological pluralism as a condition for flexibility in the future

efficient climate policy in the presence of free riders abstract if all countries participate in a climate agreement policies affecting the supply of fossil fuels have identical economic consequences as policies affecting the demand of fossil fuels this is no longer true when there is limited participation in an international agreement in the paper it is assumed that a group of countries commit themselves to cooperating while the remaining countries act independently and in pure self interest the paper compares supply and demand policies in this context and demonstrates that policies which affect only demand or only supply of carbon generally are inferior to policies affecting both demand and supply of carbon the optimal mix of supply and demand policies is derived in the paper with particular emphasis on carbon taxes an important result is that if the marginal environmental costs of total emissions are sufficiently high in the cooperating countries then both production and consumption of carbon should be taxed at a positive rate if on the other hand the marginal environmental costs of total emissions are sufficiently low it may be optimal to subsidize production or consumption in this case production should be subsidized if the cooperating countries are net importers of carbon while consumption should be subsidized if the cooperating countries are net exporters of carbon another important conclusion of the paper is that the cooperating countries should try to induce the non cooperating countries through appropriate transfers to tax consumption and production of carbon at the same rate as in the cooperating countries

does ownership always matter abstract the objective of this paper is to explain and illustrate the complex relationship between ownership arrangements and enterprise performance it is commonly argued that efficiency will be lower in the public sector than the private because enterprise objectives deviate from maximisation of profits and because monitoring arrangements are inadequate due to the absence of capital market discipline we argue that public ownership does make the owner manager relationship more complicated because the chain of principals and agents is expanded objectives are politically determined and these are conveyed by a policy making administrative structure to management but the relative efficiency of public as against private ownership actually depends on the efficacy of capital market monitoring on the political and constitutional system on the information and sanctions available to policy makers and on the nature of the management market variation in these factors can help to explain the different natures and roles of the public sector between countries

the informal sector wage gap new evidence using quantile estimations on panel data abstractwe estimate the informal formal sector pay gap throughout the conditional wage distribution using panel data from brazil mexico and south africa we control for time invariant unobservables and identification stems from intersector movers we control for observables in a nonlinear way using propensity score reweighting and carefully check for potential measurement errors using similar definitions of informality we obtain consistent results for all three countries informally employed workers earn much less than formal workers primarily because of lower observable and unobservable skills estimates of the conditional wage gap show that they are also underpaid compared to their formal sector counterparts in all three countries the informal wage penalty is larger in the lower part of the conditional distribution and tends to disappear at the top i e the informal sector increases wage dispersion the magnitudes of these effects vary across countries with the largest penalties in lower cond

does firm size comfound the relationship between corporate social performance and firm financial performance there has been some theoretical and empirical debate that the positive relationship between corporate social performance csp and firm financial performance ffp is spurious and in fact caused by a third factor namely large firm size this study examines this question by integrating three meta analyses of more than two decades of research on 1 csp and ffp 2 firm size and csp and 3 firm size and ffp into one path analytic model the present study does not confirm size as a third factor which would confound the relationship between csp and ffp that is even if firm size is controlled for across studies comprising on average over 15 000 observations csp and ffp remain positively correlated showing a true score corrected path coefficient p of 0 37

segmented labour markets and the estimation of wage functions this paper uses a stratified random sample of private sector employees to estimate wage equations for both the male labour market as a whole and six segments of the labour market segement which are defined with respect to the industry and size characteristics of the employing establishmen highly conventional results are obtained when wage equations are estimated for the male labour market as a whole or within two segements comprising almost half the survey population however one can reject conclusively the hypothesis that the same estimating equation is appropriate for modelling wage determination in all segments and if a human capital hk model is within segements tested against more appropriate alternative hypotheses for wage determination using the davidson and mackinnon 1981 methodology for the testing of non nested hypotheses the conclusion is that one should reject the hk specification and not reject the alternative it is therefore argued that the disaggregation of labour market dat

decision making under uncertainty and inertia constraints sectoral implications of the when flexibility current debates on climate mitigation emphasize the role of the inertia of the economic system our aim in this paper is to study more in depth how sectorally differentiated inertia impacts on optimal c02 emission abatement policies using the starts model we show that optimal abatement levels and costs differ sensibly among sectors differential inertia is the critical determinant of this trade off especially in case of a 20 year delay in the action or in an underestimation of the growth of the transportation sector in particular the burden of any additional abatement effort falls on the most flexible sector i e the industry debates on mitigation emphasize the role of inertia of the economic system this paper aims at studying more in depth how sectorally differentiated inertia should influence optimal co2 emission abatement policies using a two sector version of starts we show that under perfect expectations optimal abatement profiles and associated costs differ sensibly between a flexible and a rigid sector transportation in a second step we scrutinize the role of the uncertainty by testing the case of a 20 year delay of action and an underestimated growth of the transportation sector we do this for three concentration ceilings and we point out the magnitude of the burden which falls on the flexible sector we derive some policy implications for the ranking of public policies and for incentive instruments to be set up at international level

labour market segmentation a local labour market analysis using alternative approaches earlier studies have generally attempted to establish the presence or otherwise of labour market segmentation using a single technique using data drawn form the british social and economic life initiative sceli for six local labour markets this paper tests for segmentation using four different methods of analysis a simple career non career model cluster analysis and switching regressions the results in general suggest that explanatory power is not improved by analysing the labour market in different segments but this simple career model points to higher rewards for given characteristics in the career sector and the results of the switching regression model are consistent with duality in one of the six markets

a resource based perspective on corporate environmental performance and profitability drawing on the resource based view of the firm we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship with the returns to environmental performance higher in high growth industries we tested these hypotheses with an analysis of 243 finns over two years using independently developed environmental ratings results indicate that it pays to be green and that this relationship strengthens with industry growth we conclude by highlighting the study s academic and managerial implications making special reference to the social issues in management literature

does equity ownership matter for corporate social responsibility a literature review of theories and recent empirical findings based on the concept of shareholder primacy many scholars have argued that it is more important for businesses to earn profits for their shareholders than to provide benefits to society at large corporate social responsibility csr is often regarded as an investment that comes at the expense of shareholders in contrast research analyzing the connections between the equity ownership structure of a company and its level of csr engagement suggests that csr offers benefits to shareholders that go beyond direct financial returns from investments this study provides a comprehensive review and systematic assessment of theoretical considerations and approaches regarding different forms of equity ownership and their relationships to csr and it discusses the relevant benefits and motivations of shareholders the perceived value of these csr benefits varies among different types of shareholders as they assign unequal values to short term financial or to rather long term csr benefits based on a literature sample of 146 publications this review demonstrates central problems inherent in previous analyses given the ambiguous and partially contradictory findings of prior research this study identifies potential moderating influences that help clarify empirical evidence a contingency approach is suggested in future research as this can help resolve the problem of contradictory empirical findings and theoretical arguments

no regret potentials and technical innovation a viability approach to integrated assessment of climate policies abstract this paper aims to demonstrate the advantages of a sequential approach to decision making in climate policies this sequential approach is necessary because of the uncertainties regarding both the avoided costs of climate change and the costs of ghg emission abatement this assessment focuses on the minimization of learning time the reduction of technical and institutional inertia and the possible unexpected non linearities in abatement curves a stylized representation of so called no regret short term potentials of long term innovation trends and of backstop technologies is used we show that if we do take care of the inertia constraints in the decision process both policies namely the no regret and the innovation process exploitation becomes crucial in terms of minimization of the learning time

business ethics and finance in greater china synthesis and future directions in sustainability csr and fraud following the financial crisis and recent recession the center of gravity of global economic growth and competitiveness is shifting toward emerging economies as a leading and increasingly influential emerging economy china is currently attracting the attention of academics practitioners and policy makers there has been an increase in research interest in and publications on issues relating to china within high quality international academic journals we therefore organized a special issue conference in conjunction with the journal of business ethics jbe in lhasa tibet on may 19 20 2014 on business ethics in greater china past present and future the papers for the special issue focused on the intersection of ethics and finance and fit within one of the three themes environment and sustainability corporate social responsibility and fraud within these themes issues of intellectual capital protection gender equality political connections regional development investor protection corporate stewardship trust and corruption and corporate transparency each play a significant role in this paper we survey these studies and the related literature to provide a comprehensive coverage of business ethics and finance issues that affect china

investment projects and natural resources economic rationality in janus role abstract the evaluation of a public project or a public policy is in general based on scientific principles and methods however such an evaluation is not simply a logical and computational exercise there are uncertainties often severe ones in the way scientific knowledge is to be used hence there are degrees of freedom available to the promoters of the project or policy and possibly to other parties involved this paper discusses what use of these degrees of freedom has been made in western europe in situations where the conservation of natural resources has been a significant issue at stake we examine how scientific requirements on one hand and on the other hand the particular views held by the promoter and by other parties involved interact and how main features of the methodology of evaluation are influenced by this interaction which in some cases takes the form of an elaborated negotiation on methodological points

panel estimates of the canadian rural urban women s wage gap this article analyzes the female rural urban wage gap in canada using longitudinal data from the survey of labour and income dynamics 1993 96 we estimate a two step wage equation accounting for unobserved heterogeneity and sample selection the results indicate that a statistically and economically significant rural urban wage gap remains after controlling for observed and unobserved characteristics further the results suggest this rural urban wage difference is not simply induced by immobility between rural and urban markets rather consistent with the effect of thinner rural labor markets the evidence indicates that rural urban differences in the impact of a number of explanatory variables are significant

segmented labour markets theory and evidence this paper examines the possibility of accepting the labour market segmentation approach as a valid alternative to the classical and neo classical analysis of labour markets it consists of three main parts the urst part contains a historical analysis of both the distant and recent origins of the labour market segmentation hypothesis part two outlines the central ideas of both segmentationalists and radical theorists who attempted to explain the fragmented nature of labour markets and the importance of institutional and social inuuences upon pay employment and mobility of individual workers between different labour market sectors the third part examines the case for labour market segmentation using four alternative techniques and discusses the issue of mobility among different labour market segments it is thereby concluded that the lack of agreement among the segmented labour market theorists on both theoretical and methodological issues has prevented them from developing a consistent and convincing argument based on veriuable empirical evidence to validate their thesis

testing spanish labour market segmentation an unknown regime approach this paper studies the existence of two differentiated segments primary and secondary in the spanish labour market for this a methodology switching regression model with unknown regimes is used which on the one hand does not demand a priori demarcation of segments and on the other enables the allocation of workers to the segments to be treated as a factor endogenous to the model itself and closely connected with the wage setting mechanisms operating in the segments the empirical results show that the assignment to segments is not random and that there are substantial differences in the wage determination process between the two sectors furthermore the model estimated has allowed analysis of the ex post composition of the segments and corroboration to a large extent of the predictions of the dual labour market theory

job mobility wage determination and market segmentation in the presence of sample selection bias this paper tests the hypothesis that mobility between jobs is an important determinant of individual wages and that econometric estimates of wage determination should correct for sample selectivity bias in job mobility we also test the hypothesis that different patterns of job mobility produce different appropriate corrections for sample selectivity bias in different segments of the labour market we conclude that labour market segments do differ and in particular that one can identify a marginal or low wage sector with mobility patterns and pay packages which differ from the pattern one can discern in the labour market as a whole mobilite entre emplois determination des salaires et segmentation du marche quand il y a biais de selection dans l ehantillonnage ce memoire verifie l hypothese que la mobilite entre emplois est un element determinant des salaires des individus et la proposition que les calibrations econometriques du processus de determination des salaires doivent etre corrigees pour tenir compte d un biais de selection dans l echantillonnage de mouvements entre emplois les auteurs verifient aussi l hypothese que differents patterns de mobilite entre emplois commandent des corrections appropriees differentes dans differents segments du marche du travail les auteurs en arrivent a la conclusion que les divers segments du marche du travail sont differents et qu en particulier on peut reperer un secteur marginal ou de bas salaires ofu les patterns de mobilite entre emplois et les remunerations different remarquablement de ce qui se passe dans le marche du travail dans son ensemble

the marketing challenge towards being profitable and socially responsible this article reviews the history of marketing thought in relation to social responsibility and business ethics the main objective of the article is to show that business can be profitable and socially responsible at the same time by practising the societal marketing concept more specifically it presents the development of a marketing philosophy discusses the influence of consumerism on the marketing concept and deals with ethics and social responsibility in marketing it is argued that organisations who adopt the societal marketing concept will be the ones most likely to make long run profits as well as be beneficial to society as a whole

a theory of dual labor markets with application to industrial policy discrimination and keynesian unemployment this paper develops a model of dual labor markets based on employers need to motivate workers in order to elicit effort from their workers employers may find it optimal to pay more than the going wage this changes fundamentally the character of labor markets the model is applied to a wide range of labor market phenomena it provides a coherent framework for understanding the claims of industrial policy advocates it also can provide the basis for a theory of occupational segregation and discrimination that will not be eroded by market forces finally the model provides the basis for a theory of involuntary unemployment

do lenders favor politically connected firms rent provision in an emerging financial market corruption by the politically connected is often blamed for economic ills particularly in less developed economies using a loan level data set of more than 90 000 rms that represents the universe of corporate lending in pakistan between 1996 and 2002 we investigate rents to politically connected rms in banking classifying a rm as political if its director participates in an election we examine the extent nature and economic costs of political rent provision we nd that political rms borrow 45 percent more and have 50 percent higher default rates such preferential treatment occurs exclusively in government banks private banks provide no

segmented labor markets new evidence from a study of four race gender groups using data from a supplement to the 1983 current population survey the author tests hypotheses of segmented labor market theory two labor market sectors a primary sector and secondary sector are identified on the basis of occupational segmentation as inferred from workers answers to the question of whether specific skills or prior training were conditions for their employment the results show significant unexplained earnings differentials across sectors for each of four groups black men black women white men and white women other segmented labor market hypotheses are also generally supported by the results but distinct variations are found across the four groups

an empirical test of the segmented labour market theory for the netherlands in this paper an orthodox segmented labour market theory slm theory is tested by means of the data provided by the research project quality of labour 1977 zanders et al 1977 the segmented labour market theory is restricted to the dual labour market approach although a major extension is taken into account a primary segment consisting of two tiers the segments are created by making use of an objectivemethod nine quality characteristics of jobs are taken into account a number of logit estimations are carried out to test the competing theories of human capital and the segmented labour market the conclusion is that although discrimination in the labour market appears to exist the slm theory has to be rejected

a test of dual labor market theory despite substantial differences in their views of the appropriate policy response to the existence of poverty neither the proponents of dual market theory nor its critics have proposed potentially conclusive tests of the dual market hypothesis this paper presents a test of the two central propositions of dual market theory 1 the existence of two distinct labor markets with different wage setting mechanisms and 2 the existence of barriers to mobility between the labor markets we find considerable support for both hypothesis estimation of a switching model of wage determination with unknown regimes yields two distinct wage equations the one which most workers are associated with closely resembles the standard human capital regression with significant returns to education and experience the other equation is flat with no returns to human capital these two equations resemble the predictions of dual market theory for the primary and secondary markets respectively further we present evidence that at least some non white workers are involuntarily confined to the secondary market this crowding of minority workers into the low wage labor market accounts for a substantial portion of white non white wage differences we interpret these results as providing empirical support for the dual market hypothesis and for recent theoretical work on efficiency wagemodels in addition combining the efficiency wage argument with the observation that much of the white non white wage difference is explained by the exclusion of non whites from the primary sector suggests an explanation for the persistance of wage differences this abstract was borrowed from another version of this item

a theory of privatisation public enterprises around the world have proved to be highly inefficient primarily because they pursue strategies such as excess employment that satisfy the political objectives of politicians who control them privatization of public enterprises can raise the cost to politicians of influencing them since subsidies to private firms necessary to force them to remain inefficient are politically harder to sustain than wasted profits of the state firms in this way privatization leads to efficient restructuring of firms moreover privatization is more effective when combined with a tight monetary policy and when the new owners of firms are profit maximizing investors rather than their employees or even managers copyright 1996 by royal economic society

political connections and firm value in china an event study on 19 october 2013 the chinese government issued the opinions on further regulation on party and political leaders and cadres working part time holding office in enterprises also known as the 18th decree to regulate government officials employment with businesses the 18th decree is widely perceived as having had a significant impact on the use of independent directors with political backgrounds by firms given the prevalence of this business practice this paper examines the market reaction to the 18th decree to ascertain the value effect of political connections in china we note a negative relationship between the political connections of independent directors and market reaction we also note that the negative relationship between political connections and market reaction is moderated by ownership type and state of regional development specifically we find that the negative relationship holds only for private firms in less developed regions these results support our prediction that political connections add value to chinese firms and that the value effect of political connection is contingent on institutional factors

principal principal conflicts and corporate philanthropy evidence from chinese private firms the principal principal perspective suggests that controlling shareholders have excessive influence on corporate philanthropy and may direct corporate funds to charitable causes to support their personal interests analysis of a sample of chinese private firms listed on the shenzhen or shanghai stock exchange between 2004 and 2011 shows that 1 there is a significant and negative relationship between corporate giving and the share held by the largest shareholders suggesting that controlling shareholders are opportunistic in directing corporate charitable contributions 2 there is a significant and positive relationship between corporate giving and the political connections of the largest shareholders and their agents suggesting compatibility between corporate contributions and the personal interests of the controlling shareholders 3 there is a stronger negative relationship between corporate giving and the share of the company held by the largest shareholders in politically connected firms suggesting that political connections contribute to increased opportunistic corporate giving overall our study provides important evidence for the one dominant controlling shareholder phenomenon yigududa by testing and extending the principal principal framework and showing that the largest shareholders of chinese firms appear to donate to charitable causes that ultimately serve their personal interests at the expense of minority shareholders

international oil price uncertainty and corporate investment evidence from china s emerging and transition economy we develop and estimate a dynamic model of investment to investigate the impact of international oil price uncertainty on corporate investment expenditures in china s emerging and transition economy we further examine whether state ownership affects the relationship between oil price uncertainty and corporate investment consistent with the model s prediction the main finding is that oil price uncertainty exerts a negative impact on corporate investment expenditures in addition compared with state owned listed companies the negative influence of oil price uncertainty on corporate investment is more significant for non state owned listed companies our further analysis using the market oriented reform of refined oil pricing in 2008 as a quasi natural event shows the variation between the low degree marketization period and the high degree one in terms of the relationship between international oil price uncertainty state ownership and corporate investment expenditures

an investigation of the labor market earnings of panamanian males evaluating sources of inequality this paper presents empirical evidence on the determinants of labor market earnings and inequality for males in panama using newly available microdata we estimate earnings equations based on the measurement framework of mincer 1974 and compare them with those for other countries at various stages of economic development we present evidence on two aspects of inequality in less developed economies labor market segmentation and social stratification we present tests of the segmentation hypothesis including several of the dual labor market hypotheses and discuss their inherent ambiguity we also present evidence on the importance of family background for earnings determination and educational attainment

institutional interest ownership type and environmental capital expenditures evidence from the most polluting chinese listed firms this study empirically examines whether firms environmental capital expenditures impact institutional investors investment decisions in the chinese market we particularly examine the impact of ownership type on the relationship of environmental capital expenditures and the behavior of different types of institutional investors by classifying institutional investors into two categories short term and long term investors in addition this study further investigates whether environmental capital expenditures related to ownership type increase firm value we find that long term institutional investors tend to invest in state owned firms soes making environmental capital expenditures results also indicate that with governmental backing and encouragement the market value of soes making more environmental capital expenditures is likely to increase however no similar results are found for non soes

why did transition economies choose mass privatization in many transition countries privatization has taken the form of distribution of states assets at a zero price mass privatization and the state has retained some ownership in many companies we provide a rationale for these policies in terms of a political feasibility constraint preventing sale at a negative price the government may choose to retain some ownership in order to make the constraint bite in effect raising its bargaining power as a result mass privatization may actually have been revenue maximizing that is may have been rational in an economic sense as well as in the political sense previously claimed jel l33 p21

family labour supply and labour market segmentation this paper examines the differences in individuals labour supply decisions in different segments of the labour market it tests one of the main hypotheses of the dual labour market theory that the labour market can be divided into at least two segments and also whether the family labour supply decisions of individuals differ in the two segments the possibility of individuals wage rates depending on the number of hours worked is recognized and a model is developed in which both the wage rates and hours of work of individuals are jointly determined with the personal income tax system as an intervening variable since hours of labour supply depend on the post tax wage rate whereas if the marginal product of labour is a positive function of hours worked this affects the pre tax wage rates other alternative wage functions are specified and a simultaneous equations labour supply model using three stage least squares 3sls procedure is estimated the results indicate that there was sample selectivity bias

testing the dual labor market hypothesis evidence from the israel labor mobility survey little research seems to have addressed the testing of the dual labor market model for nondeveloping economies outside the u s and the u k this paper examines the hypothesis for israel utilizing individual data drawn from the israel labor mobility survey and assigning workers to primary and secondary sectors on the basis of occupational prestige scores earnings functions are estimated and compared for the two sectors the results are very closely in line with predictions of the dual labor market model thus strongly suggesting that the dual labor market hypothesis may be relevant for israel

segmented labour markets in australia the concept and measurement of segmented labour markets has received little attention in australia here a method for establishing a taxonomy of occupaions according to characteristics associated with the segmented labour market hypothesis is presented using this taxonomy the distribution of workers in australia according to gender migrant status and trade union membershipis examined

the corporate social performance financial performance link strategic managers are consistently faced with the decision of how to allocate scarce corporate resources in an environment that is placing more and more pressures on them recent scholarship in strategic management suggests that many of these pressures come directly from sources associated with social issues in management rather than traditional arenas of strategic management using a greatly improved source of data on corporate social performance this paper reports the results of a rigorous study of the empirical linkages between financial and social performance corporate social performance csp is found to be positively associated with prior financial performance supporting the theory that slack resource availability and csp are positively related csp is also found to be positively associated with future financial performance supporting the theory that good management and csp are positively related 1997 by john wiley sons ltd