Relative Peer Quality and Firm Performance
Bill Francis, Iftekhar Hasan, Sureshbabu Mani, Pengfei Ye
Journal of Financial Economics,
No. 1,
2016
Abstract
We examine the performance impact of the relative quality of a Chief Executive Officer (CEO)’s compensation peers (peers to determine a CEO's overall compensation) and bonus peers (peers to determine a CEO's relative-performance-based bonus). We use the fraction of peers with greater managerial ability scores (Demerjian, Lev, and McVay, 2012) than the reporting firm to measure this CEO's relative peer quality (RPQ). We find that firms with higher RPQ earn higher stock returns and experience higher profitability growth than firms with lower RPQ. Learning among peers and the increased incentive to work harder induced by the peer-based tournament contribute to RPQ's performance effect.
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05.10.2016 • 42/2016
International young researchers at IWH
Scientific insights do not stop at national borders and have to be equally accessible for women and men. “Whoever wants to do world-class research has to look beyond his own nose”, says Reint E. Gropp, president of the Halle Institute for Economic Research (IWH) – Member of the Leibniz Association. He himself received his PhD and did research in the US for several years.
Reint E. Gropp
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IWH R&D Micro Database: Part 1: Data, Data Origin and Data Quality
Matthias Brachert, Wilfried Ehrenfeld, Alexander Giebler, Mirko Titze
IWH Technical Reports,
No. 1,
2016
Abstract
Almost all industrialized countries have set up support schemes to foster private Research & Development (R&D) activities. However, only little is known on which programs are exactly applied, how much money is spent and whether such programs work in the way they were originally intended. Reliable evaluation studies that allow identifying causal effects can help to clarify if and how these policies work and for which policy schemes the results are promising. This kind of research design, however, places high demands on the quality of data.
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Einführung: Strukturen der öffentlichen Verwaltung und Raumentwicklung – Allgemeine Zusammenhänge und Ansätze zu ihrer Erforschung im Überblick
Martin T. W. Rosenfeld
Gebiets- und Verwaltungsstrukturen im Umbruch: Beiträge zur Reformdiskussion aus Erfahrungen in Sachsen, Sachsen-Anhalt und Thüringen,
No. 360,
2015
Abstract
Far-reaching measures of administrative restructuring are being often introduced in the face of demographic change and the financial diffculties of the municipalities and federal states. Only with larger entities, it is argued, will it in future be possible to provide high quality municipal services at a reasonable cost. The tendency to enlarge municipal entities fits with the overall picture of municipal reforms in Germany, which since 1945 have been dominated by measures associated with concentration and centralisation efforts. Territorial restructuring is, however, but one element of the entire spectrum of administrative reforms. Further elements of administrative (re)structuring are the reform of the portfolio of public tasks (critical review of public tasks), the transfer of responsibilities between the levels (functional reform), and a change in the specifications of financing regulations relevant to services assigned to the public sector (financing reform). This publication consists of the results of the working group “Administrative and Territorial Reforms” (AG VGR) of the state working groups Sachsen, Sachsen-Anhalt and Thüringen of the Akademie für Raumforschung und Landesplanung (ARL). A significant objective of the AG VGR was to shed more light on the spatially-related interactions of the effects of administrative reform measures, as there are few findings on the topic that are empirically well-founded and many questions remain unanswered.
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Quality of Work: An Investigation for East and West Germany for the Years 1994 and 2009
Herbert S. Buscher, S. Noack, M. Pelz
Wirtschaft im Wandel,
No. 12,
2011
Abstract
“Quality of work” – a mainly subjective judgement of employees about their work and the corresponding conditions gained momentum over the last decades. But contrary to quantitative aspects of work and worklife, the term “quality of work” is rather hard to measure and it consists of a mixture of many single indicators related to the worklife of employees. The spectrum of these single indicators range from health considerations up to a flexible management of the work time over a month or a year. The present work contributes to the discussion about the quality of work by introducing additional single indicators into the debate. These are commuting, carreer opportunities within a firm, individual satisfaction with the work income, and a correspondence between formal qualification and the present job. The investigation distinguishes between East and West Germany as well as between age cohorts and the qualification of the interviewed persons. The results are based on the GSOEP for the years 1994 and 2009. Looking at these two years we expect some insights into possible changes in the judgement with respect to the quality of work especially for East German employees shortly after the fall of the wall and nowadays. These insights should help to draw conclusions if East and West German employees are still different in their judgements or if a process of convergence in opions occurred.
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The Changing Process of the Quality of Work – 8th Joint Workshop of the IWH and IAB on Labor Market Policy
Herbert S. Buscher
Wirtschaft im Wandel,
No. 11,
2011
Abstract
During October 20th and 21st the 8th workshop on Labor Market Policy in Halle (Saale) took place. The major theme was related to changes in the quality of work. One reason for selecting this topic points out that there is a declining number of unemployed people in the German labor market for now a couple of months. This development is often interpreted as the result of a successful labor market policy. But focusing only on quantitative aspects of labor market developments ignores the important aspect of the quality of work.
Over the last years there was also a contemporary debate about changes in the working world. And within this discussion the focus was not only on aspects like income, certainty of employment, and career opportunities. In addition to these issues and with considerable emphasis on the new aspects, the discussion extended to topics such as sense and meaning of activities, work-life balances, self-realization, autonomy, and job satisfaction. It is the aim of the 8th workshop to present and to discuss the current state of the quality of work-debate in the labor market research to a broad audience of scientists as well as practical women and men, and to shed light on possible further research topics in this area. Besides of the opening lecture given by Dr. Ulrich Walwei (IAB), eleven additional papers have been presented during the two-day’s conference.
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The Impact of Government Procurement Composition on Private R&D Activities
Viktor Slavtchev, Simon Wiederhold
Abstract
This paper addresses the question of whether government procurement can work as a de facto innovation policy tool. We develop an endogenous growth model with quality-improving in-novation that incorporates industries with heterogeneous innovation sizes. Government demand in high-tech industries increases the market size in these industries and, with it, the incentives for private firms to invest in R&D. At the economy-wide level, the additional R&D induced in high-tech industries outweighs the R&D foregone in all remaining industries. The implications of the model are empirically tested using a unique data set that includes federal procurement in U.S. states. We find evidence that a shift in the composition of government purchases toward high-tech industries indeed stimulates privately funded company R&D.
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Subsidized Vocational Education in East Germany: Stepping Stone or Dead End?
Eva Dettmann
Wirtschaft im Wandel,
No. 12,
2009
Abstract
The aim of the study is to analyse whether the formally equal qualifications acquired during a subsidized vocational education induce equal employment opportunities compared to regular vocational training. This question is answered for adolescents in workplace-related training. Using replacement matching on the basis of a statistical distance function, we are able to control for selection effects resulting from different personal and profession-related characteristics and thus to identify an unbiased effect of the public support. The analysis is based on unique, very detailed data, the Youth Panel of the Halle Centre for Social Research (zsh).
The results show that young people who successfully completed a workplace-related training are disadvantaged regarding their employment opportunities even when controlling for personal and profession-related influences. Besides a quantitative effect on the percentage of employed adolescents, the analysis shows differences in the job quality: The employed graduates of workplace-related training work in worse paid jobs, and less are employed in qualification adequate occupations compared to matchable graduates of regular vocational education.
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Specialization as Strategy for Business Incubators: An Assessment of the Central German Multimedia Center
Michael Schwartz, Christoph Hornych
Technovation,
No. 7,
2008
Abstract
The literature on business incubators (BIs) mainly discusses findings of incubators that do not restrict themselves to specific sectors (diversified incubators). There is a strong disregard of the possible benefits arising from the concept of a sector-specialized business incubator (SBI), although this concept has become more important in recent years. In Germany, about 19% of the incubators can be characterized as being specialized. Since 1999, nearly one-third of all new BIs in Germany opened with a sector-specific focus. This study attempts to approach this research question by examining the advantages and deficiencies of this concept and to address them with empirical observations from an SBI in the city of Halle (Germany), which has an explicit sector-focus on the media industry (MI). We identify key benefits arising from such an incubator concept: (1) high quality premises and equipment, (2) improvement of service and consultancy offerings and (3) image effects for the location. We also find deficiencies of an SBI especially regarding internal networking activities and promotion of linkages to universities. Furthermore a negative working climate impedes interaction. This study offers implications for firms, incubator managers and local policy-makers who are concerned with the instrument of an SBI.
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Market Follows Standards
Ulrich Blum
Wirtschaft im Wandel,
No. 10,
2007
Abstract
Standards are an important part of the codified knowledge of a society. In contrast to industry standards, formal standards are created in a consensus-based procedure open to all interested parties. Only if an economic interest for application exists will formal standards be produced. Interested parties have to shoulder participation costs themselves, which enforces economic interest. Up to a certain extent, governments also trigger and finance formal standardisation processes through the new approach, which creates a framework that is filled by private activity. Standards stand at the end of intellectual property rights if the totality of the value chain of knowledge production is looked at. One important aspect is their accessibility and the inclusion of all necessary intellectual property rights, especially patents, at reasonable prices. Conversely, consortia may exclude groups from the use of their standards. By preventing the licensing of those patents included in a standard, they can effectively block market entry. Thus, “successful” standards often face antitrust problems. Formal standards reduce costs of production through economies of scale, economies of scope and network-economies. Goods and processes that are standardized signal quality, the inclusion of high technological standards and permanent presence in the markets, which again accelerates market dissemination. Firms face a dilemma: On the one hand, the penetration of a markets with industry standards offers potentials for high profits; on the other hand, this has to be balanced against the risk of failure, especially if clients are hesitant because they do not know which standard will be successful in the end. Formal standards create and stabilize trust markets. This is especially true in the area of globalisation. Europe, which has to face an enormous competition in the international knowledge economy, needs an institutionally efficient approach to formal standardisation. This contribution addresses future problems of the European standardisation that have been developed within the framework of a working group of the European Standardisation Organisation called Future Landscape of European Standardisation (FLES).
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