Miracle-dz/UniFAR-FTUs huggingface dataset:
It Does (Not) Get Better: Expected Income Violation and Altruism

We experimentally test whether the gap between expected and actual income impacts subsequent altruism. Participants first perform a real-effort task for a fixed wage and then play a dictator game. Between conditions, we vary the level and the timing of the revelation of the wage. In some conditions, participants know the wage before the real effort task and are not informed of the other potential levels. In some other conditions, they are informed of the distribution of wages before the real effort task, but the actual wage is only revealed afterward. Participants in the latter conditions can form expectations that may be higher or lower than their actual wage. Our model predicts that the gap between the expected and the actual wage impacts transfers in the subsequent dictator game. The results support this hypothesis: participants who get the low wage transfer less and are less likely to transfer when they are informed of the other potential levels than when they are not. Conversely, participants who get the high wage are more likely to transfer positive amounts when they are informed of the other potential levels. We use physiological (skin conductance response) and declarative data to discuss the role of emotions in our treatment effects.
Determinants of Fundamental Stock Return Factors at Mining Company; Analysis Data Panel for Period 2012 - 2017

This research aims to examine and analyze the effect of return on assets, debt to equity ratio, dividend payout ratio, exchange rates and world oil prices on the value of the stock of mining companies in the Indonesia Stock Exchange for the period of 2012 to 2017. This research uses annual data for the observation period from 2012 to 2017. The population is mining companies listed on the Indonesia Stock Exchange in 2012 to 2017 and up to 32 companies. The sampling technique used purposive sampling, found a sample of 32 companies with 6 years observation so that the total observation obtained was192. The model used is the Common Effect Model. The results of the analysis show that the exchange rates and world oil prices have a significant positive effect, while the return on assets, debt to equity ratio, dividend payout ratio have no significant effect on stock returns of mining companies in the Indonesia Stock Exchange for the period of 2012 to 2017.
Does Accounting Mitigate Agency Conflicts Within Corporate Groups? Evidence from UK Subsidiaries

One of the most critical decisions top management in corporate groups has to make is the allocation of resources among competing investment opportunities across the group. Information asymmetry between the parent and subsidiaries, however, creates agency conflicts that complicate such allocation. Exploiting the adoption of more rigorous, international accounting standards by UK subsidiaries, we examine whether accounting information can mitigate these agency costs. We find that adopting subsidiaries have greater cash holdings, receive more group borrowings and pay less dividends. These findings are consistent with accounting effecting agency costs of excess cash. Further, we find that adopting subsidiaries have greater (lower) capital expenditures when in growing (declining) industries and invest more in innovation.
A Theoretical Socio-Economic Investigation into the Nature of Power in Money

This article aims to contribute to the ongoing discussions on the nature of money by introducing systematic analysis to relate power to money. It proposes an Ideal Type to explain the critical role of power relations for the genesis and operation of money and monetary order. It is based on the insights from classical thinkers (Weber, Durkheim, Mauss, Simmel and Laum) on the one hand and modern discourses on power by Lukes and the French Institutional School on the other. It concludes with a definition of money from a power perspective.
Rising Wage Inequality and Optimally Postponing Taxation

This paper studies the (Ramsey) optimal taxation of labor income when wage inequality is rising, as has been the case in many developed economies in recent decades. The tax schedule is a linear or affine function of labor income every period. Workers are ax-ante heterogenous in their initial productivity/wage and its growth rate. An increasing profile of tax rates over time (postponing taxation) redistributes resources to the workers whose productivity grows at a below-average rate, because their income constitutes a smaller share of the tax base in later periods. For a given path of government expenditures and transfers, postponing labor taxation is associated with an increase in the stock of government debt. A quantitative example studies the optimal policy in a model with two types of workers, calibrated to match the increasing wage inequality in the US since the 1980s. The low-skilled workers are characterised by a lower initial productivity and its growth rate than the high-skilled workers. The solution is sensitive to the Pareto weights in the social planner’s function. With equal Pareto weights on both types the optimal policy redistributes resources to the low-skilled workers by postponing taxation of labor income and increasing the stock of government debt. Over a 30-year period the optimal increase in the labor tax rate is significant, and the government debt/GDP ratio increases by 156 percentage points (linear tax schedule), or 71 percentage points (affine tax schedule). The actually observed increase in debt/GDP ratio between 1980 and 2010 (34 percentage points) is optimal if the Pareto weight on the high-skilled workers is 2-4 times the weight on the low-skilled workers.
Does Quantitative Easing Mitigate the Sovereign-Bank Nexus?

The credit risk of the sovereign affects the financial health of its banking sector and vice versa, creating an adverse feedback loop known as “sovereign- bank nexus”. We show that Quantitative Easing can effectively mitigate the sovereign-bank nexus. Our results indicate that the ECB’s Public Sector Purchase Programme reduced the co-movement of sovereign and bank credit risk by almost 80%. The mitigation is driven by the euro area periphery and works through three channels: (i) a reduction in government bond holdings of banks, (ii) an increase of government bond prices, and (iii) an increase in excess liquidity holdings of banks.
Factors Affecting the Integrity of Manufacturing Company Financial Statements in Indonesian Stock Exchange and Malaysian Stock Exchange

This study aims to examine the effect of managerial ownership, auditors switching and intellectual capital on the integrity of financial statements with leverage and firm size as control variables. The study employed literature and observation study of the research object to obtain the research data. The research objects are manufacturing companies listed on IDX and MYX within the period of 2014-2017. Research data were analyzed using Eviews software with multiple linear regression analysis method. In this study the t statistical test is used to measure and assess the significance level of each independent variable (managerial ownership, auditor switching and intellectual capital) and control variables (firm size and leverage) on the dependent variable, namely the integrity of financial statements applied in Indonesia and Malaysia. The results showed that in the Indonesian manufacturing companies, managerial ownership, auditors switching and intellectual capital have a positive effect on the integrity of financial statements. Meanwhile, in the Malaysian manufacturing companies, from the three dependent variables used in the study, only managerial ownership has an effect on the integrity of financial statements. With regard to the control variables used, leverage and firm size are equally positive for the integrity of financial statements of companies just in Indonesia. This research is different from the previous study in that the objects of this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) and Bursa Malaysia (MYX) within the period of 2014-2017, which is a longer period of time. Further, the researchers add independent variables to managerial ownership, auditor switching, and intellectual capital
Institutional Ownership and Research Skills Application Among Postgraduate Students in Faculties of Education in Universities in Cross River State, Nigeria

This paper examined the institutional ownership and research skills application among postgraduate students in Faculties of Education in Universities in Cross River State, Nigeria. The survey involved 60 completed M.Ed. theses purposively drawn from all vetted M.Ed. theses from the Faculties of Education in the University of Calabar and Cross River University of Technology, Calabar; for 2016/2017 academic session, totalling 124. A 36-item institutional ownership research skills analysis rating scale (IORSARS), with an inter-rater reliability estimates which ranged from 0.73 to 0.87using Cohen Kappa’s method was used to collect data for the study. The statistical analysis technique adopted was the independent t-test. The result indicated that institutional ownership significantly influenced the research skills application of postgraduate students. Based on the findings, it was recommended that Government should make provisions for adequate/accessible funds for research sponsorship not only for academic staff but also for postgraduate students in all tertiary institutions, be it federal, state or privately owned.
Multiple Dimensions of Binging: The Hidden Costs and Benefits

Binging has emerged as a trending phenomenon among consumers of online streaming services and other media outlets that offer content consumption "on-demand. " Current definitions of binging from content providers and market research firms were developed to describe television consumption and are usually based on the number of consecutive episodes of a single TV show that viewers watch in a single sitting. These definitions combine both the amount of content consumed and the category of the content, thus losing information on different ways that consumers might exhibit binge behaviors. In particular, to extend the literature, we define multiple dimensions of binging that account for the timing, volume, and type of content consumed. We quantify these dimensions using binging metrics that describe the extent to which an individual is engaging in binge consumption based on the interarrival times of consumption and breaks. We apply our binging metrics to two different datasets from contexts in which users not only consume content, but are also evaluated on their performance (i.e., online education and online video games). These applications allow us to examine how binging patterns may be predictive of downstream behaviors that are of importance to both consumers and content providers. In particular, we identify which binging types seem to help or hurt different performance outcomes. In addition, we examine how performance may be affected by counterfactual policy changes designed to manage binge behavior.
Convergence and Divergence: China's Development Path to a Modern Tax System

With the shift from a socialist economy to a state-controlled market economy, China’s tax system has been restored as the primary source of government revenue. Superficially, the system of income and consumption taxes has become increasingly aligned with conventional norms and practices applied in Western countries. The implementation of the system, however, has revealed three features that may distinguish the Chinese system from many of its Western counterparts: the role of informal taxation, unequal distribution of tax burdens and a high level of administrative discretion. This article explores key features of Chinese taxation and examines how they have endured for more than two millennia, despite dramatic political changes in that period. It considers the prospect of China jettisoning the legacy of its imperial past and shifting towards institutional structures and norms that are more in line with the modern rule of law principles in taxation. It suggests important institutional paradigm shift would be needed for such a change to occur.
Yatırım ve Finansman Kararlarının Piyasa Değerine Etkisi (The Impact of Investment and Financing Decisions on Market Value in Turkey)

Turkish abstract: Oz: Yatirim ve finansman kararlarinin etkinligi, sermaye maliyetinin dusurulmesi ve bunun sonucunda piyasa degerinin maksimize edilmesinde belirleyici bir rol oynamaktadir. Bu cercevede, firmalarin finansal performanslarini arttirarak, surdurebilir rekabet avantajlarini koruma istekleri yatirim ile finansman kararlarinin ve ilgili gostergelerin piyasa degeri uzerindeki etkisinin arastirilmasini onemli ve gerekli kilmistir. Bu calismanin amaci, yatirim ve finansman kararlarinin piyasa degerine etkisini analiz ederek, ilgili kararlarin piyasa degerini hangi yonde etkiledigini ortaya koymaktir. Bu amacla, calismada 2010-2014 yillari arasinda verilerine duzenli olarak ulasilabilen halka acik 274 reel sektor firmasi alinmis ve panel veri analizi yontemiyle incelenmistir. Yapilan analizler sonucunda, yatirim kararlarini verimlilik duzeyinde aciklayan degiskenlerden maddi duran varlik devir hizi ve yeniden yatirim orani ile karlilik duzeyinde aciklayan aktif karlilik orani degiskenlerinin firmalarin piyasa degeri uzerinde olumlu bir etkisinin oldugu gorulmektedir. Yatirim kararlarini, verimlilik duzeyinde aciklayan borc ve aktif devir hizi oranlarinin piyasa degerini negatif etkiledigi, alacak ve stok devir hizinin ise piyasa degerine etki etmedigi tespit edilmistir. Ayrica, finansman kararlarini temsil eden sermaye yapisi ve likidite duzeyinin ise ilgili donemde firmalarin piyasa degeri uzerinde etkisinin olmadigi belirlenmistir. English abstract: The effectiveness of investment and financing decisions has a decisive role in lowering the cost of capital and, ultimately in maximizing market value. It is significant and necessary to explore the impact of investing, financing decisions and relevant indicators on market value with considering firms' financial performance and protecting their sustainable competitive advantage. The objective of this paper is to examine the impact of investing and financing decisions on the market value and to determine in which direction these relevant decisions affect the market value. For this purpose, 274 real public sector firms, which are regularly accessible during 2010-2014 have been selected and panel data analysis have been utilized. Findings state that asset turnover rate, the rate of reinvestment variable which explain the investment decisions at the level of productivity, and the return on assets have a positive effect on the market value of the firms. Furthermore, debt turnover rate and the asset turnover rate which explain the investment decisions at the level of productivity negatively affect the market value, while the receivables turnover and stock turnover ratios have no effect. Additionally, capital structure and liquidity level representing financing decisions have been found no significant effect on the market value.
Happy Times: Identification from Ordered Response Data

Surveys are an important tool in economics and in the social sciences more broadly. However, methods used to analyse ordinal survey data (e.g., ordered probit) rely on strong and often unjustified distributional assumptions. In this paper, we propose using survey response times to solve that problem. Our main identifying assumption is that individual response time is decreasing in the distance between the value of the latent variable and an indecision threshold. This assumption is supported by a large body of evidence on chronometric effects in psychology and neuroscience. We provide conditions under which the expected value of the latent variable (e.g., average happiness) can be compared across groups, even without making distributional assumptions. By applying it to an online survey experiment, we show how our method can be implemented in practice and gives rise to new insights.
Landscape Models of Complex Change

This chapter reviews recent advances in the NK modeling literature conceptualizing organizational change and innovation as a search over a complex landscape. It discusses both strengths and limitations of this perspective and delineates potential for future research directions. The key argument is that the NK model in its traditional form may be exhausting the theoretical insights that it can provide to the field. However, substantial modifications and extensions of the NK model or new classes of landscape models may provide fresh perspectives. Specifically, we consider the modeling efforts that endogenize the landscape construction as the next frontier in this literature. We also discuss several recent studies that incorporate various extensions of the NK model and allow for agent-driven changes to the landscape.
Self-interest of Independent Directors and Liquidations of Mutual Funds

Independent directors are appointed to represent the interests of mutual fund shareholders. Yet, being in the employment of fund–families, the fulfilment of fiduciary duties of independent directors may be compromised. Using a large, hand-collected dataset of over 10,000 U.S. mutual funds, we analyze the impact of the degree of alignment of independent directors’ interests with those of shareholders as opposed to those of fund–families on liquidation decisions. We find consistent evidence of our hypotheses that alignment with fund–families dilutes the incentives imposed by the alignment with shareholders in retail funds. We also find consistent evidence that the alignment of independent directors with shareholders has positive effects only in institutional funds. These results have important policy implications which are discussed in the paper.
Tracking ECB’s Communication: Perspectives and Implications for Financial Markets

This article assesses the communication of the European Central Bank (ECB) using Natural Language Processing (NLP) techniques. We show the evolution of discourse over time and capture the main themes of interest for the central bank that go beyond its traditional mandate of maintaining price stability, enlightening main concerns and themes of discussion among board members. We also built sentiment signals compatible with any form of language, both formal and informal, an important step as the ECB aims to enhance communication with non-expert audiences. In a second step, we measure the impact of the ECB’s communication on the EUR/USD exchange rate. We found that our quantitative series, both topics and sentiment, improve financial-linked models consistently in all periods analyzed (2.5% on average). Meaningful signals comprise a broad range of subjects and vary in time. This suggests that overall ECB’s talk matters for asset prices, including themes not directly related to monetary policy. This result is particularly important in a context in which the ECB, as well as other major central banks, are moving towards integrating issues closer to the society into their scope of action, implying that subjects, which were considered peripheral, may become central. This emphasizes the importance for markets to effectively track central banks’ communication to improve investment processes.
Capital Structure and Corporate Strategy: An Overview

This paper responds to the general call for integration between finance and strategy research by examining how financial decisions are related to corporate strategy. In particular, the paper focuses on the link between capital structure and strategy. Corporate strategies complement traditional finance paradigms and extend our insight into a firm's decisions regarding capital structure. Equity and debt must be considered as financial instruments as well as strategic instruments of corporate governance (Williamson 1988). Debt subordinates governance activities to stricter management, while equity allows for greater flexibility and decision-making power. The literature on finance and strategy analyzes how the strategic actions of key players (managers, shareholders, debtholders, competitors, workers, suppliers, etc) affect firm value and the allocation of value between claimholders. Specifically, financing decisions can concern value creation process (1) influencing efficient investments decisions according to the existence of conflict of interest between managers and firm's financial stakeholders (shareholders and debtholders) and (2) affecting the relationship with non-financial stakeholders, as suppliers, competitors, customers, etc. To summarize, the potential interaction between managers, financial stakeholders, and non-financial stakeholders influences capital structure, corporate governance activities, and value creation processes. These in turn, may give rise to inefficient managerial decisions or they may shape the industry's competitive dynamics to achieve a competitive advantage. A good integration between strategy and finance dimensions can be tantamount to a competitive weapon.
The Leniency Rule Revisited: Experiments on Cartel Formation with Open Communication

Abstract The experimental literature on antitrust enforcement provides robust evidence that communication plays an important role for the formation and stability of cartels. We extend these studies through a design that distinguishes between innocuous communication and communication about a cartel, sanctioning only the latter. To this aim, we introduce a participant in the role of the competition authority, who is properly incentivized to judge the communication content and price setting behavior of the firms. Using this novel design, we revisit the question whether a leniency rule successfully destabilizes cartels. In contrast to existing experimental studies, we find that a leniency rule does not affect cartelization. We discuss potential explanations for this contrasting result.
A Dissection of Bookbuilt IPOs: Subscriptions, Underpricing and Initial Returns

The distinct regulatory design of Indian IPOs permits an empirical evaluation of IPO underpricing models against those that model IPO initial returns as a consequence of overpricing. Characteristics of the Indian bookbuilding process allow us to study the timing and subscription patterns of different investor groups and to dissect IPO returns into two distinct components: one relating to pre-listing underpricing set by the underwriter and the other to the initial return from first day’s trade in the post-listing period. We find that a transparent bookbuilding process can alleviate the winner’s curse problem for retail investors but that does not eliminate IPO initial returns. Further, IPO initial returns persist but do not increase even if investment bankers are stripped of their discretionary allocation power. These results are not supportive of the Rock (1986) and Benevineste and Spindt (1989) voluntary underpricing models. We find that the unmet demand of non-institutional investor groups is the primary driver of the IPO initial return and consider these results to be generally supportive of Derrien (2005) and Ljungqvist, Nanda and Singh (2006).
Board Composition and Workplace Diversity: A Machine Learning Approach

We examine the predictive value of board gender diversity on workplace diversity and the relative importance of various board and firm characteristics in predicting diversity. With a novel machine learning approach, we measure three workplace diversity variables using a social media data set of approximately 250,000 employee reviews. Our results show that board composition is an important predictor of workplace diversity, and board gender diversity is the most important predictor of the gender equality and inclusiveness dimensions of corporate diversity culture. However, board gender diversity is not found to have significance in predicting age diversity in a company, and overall, firm characteristics are found to be more critical in explaining age diversity. Furthermore, we find that workplace diversity is an important predictor of firm value, indicating a possible channel on how board gender diversity affects firm performance.