Physical Climate Change Risks and the Sovereign Creditworthiness of Emerging Economies
Hannes Böhm
IWH-Diskussionspapiere,
Nr. 8,
2020
Abstract
I show that rising temperatures can detrimentally affect the sovereign creditworthiness of emerging economies. To this end, I collect long-term monthly temperature data of 54 emerging countries. I calculate a country’s temperature deviation from its historical average, which approximates present day climate change trends. Running regressions from 1994m1-2018m12, I find that higher temperature anomalies lower sovereign bond performances (i.e. increase sovereign risk) significantly for countries that are warmer on average and have lower seasonality. The estimated magnitudes suggest that affected countries likely face significant increases in their sovereign borrowing costs if temperatures continue to rise due to climate change. However, results indicate that stronger institutions can make a country more resilient towards temperature shocks, which holds independent of a country’s climate.
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Benchmark on Themselves: CEO-directors’ Influence on the CEO Compensation
Bill Francis, Iftekhar Hasan, Yun Zhu
Managerial Finance,
im Erscheinen
Abstract
The purpose of this paper is to examine whether or not the chief executive officers’ (CEO) compensation is affected by the compensation of the outside directors sitting on their board, who are also CEOs of other firms.
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Lame-Duck CEOs
Marc Gabarro, Sebastian Gryglewicz, Shuo Xia
SSRN Working Papers,
2018
Abstract
We examine the relationship between protracted CEO successions and stock returns. In protracted successions, an incumbent CEO announces his or her resignation without a known successor, so the incumbent CEO becomes a “lame duck.” We find that 31% of CEO successions from 2005 to 2014 in the S&P 1500 are protracted, during which the incumbent CEO is a lame duck for an average period of about 6 months. During the reign of lame duck CEOs, firms generate an annual four-factor alpha of 11% and exhibit significant positive earnings surprises. Investors’ under-reaction to no news on new CEO information and underestimation of the positive effects of the tournament among the CEO candidates drive our results.
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Joint R&D Subsidies, Related Variety, and Regional Innovation
T. Broekel, Matthias Brachert, M. Duschl, T. Brenner
International Regional Science Review,
Nr. 3,
2017
Abstract
Subsidies for research and development (R&D) are an important tool of public R&D policy, which motivates extensive scientific analyses and evaluations. This article adds to this literature by arguing that the effects of R&D subsidies go beyond the extension of organizations’ monetary resources invested into R&D. It is argued that collaboration induced by subsidized joint R&D projects yield significant effects that are missed in traditional analyses. An empirical study on the level of German labor market regions substantiates this claim, showing that collaborative R&D subsidies impact regions’ innovation growth when providing access to related variety and embedding regions into central positions in cross-regional knowledge networks.
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Financial Transaction Taxes: Announcement Effects, Short-run Effects, and Long-run Effects
Sebastian Eichfelder, Mona Lau, Felix Noth
IWH-Diskussionspapiere,
Nr. 4,
2017
Abstract
We analyze the impact of the French 2012 financial transaction tax (FTT) on trading volumes, stock prices, liquidity, and volatility. We extend the empirical research by identifying FTT announcement and short-run treatment effects, which can distort difference-in-differences estimates. In addition, we consider long-run volatility measures that better fit the French FTT’s legislative design. While we find strong evidence of a positive FTT announcement effect on trading volumes, there is almost no statistically significant evidence of a long-run treatment effect. Thus, evidence of a strong reduction of trading volumes resulting from the French FTT might be driven by announcement effects and short-term treatment effects. We find evidence of an increase of intraday volatilities in the announcement period and a significant reduction of weekly and monthly volatilities in the treatment period. Our findings support theoretical considerations suggesting a stabilizing impact of FTTs on financial markets.
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Decision-making Power in Foreign Subsidiaries and Its Effect on Financial Constraints: An Analysis for Selected European Transition Economies on the Basis of the IWH FDI Micro Database 2013
Felix Noth, Andrea Gauselmann
Eastern European Economics,
Nr. 6,
2016
Abstract
This article analyzes whether the distribution of decision-making power between the headquarters and foreign subsidiaries of multinational enterprises (MNEs) affects the foreign affiliates’ financial constraints. The findings show that not much decision-making power has as yet been moved from headquarters to foreign subsidiaries in European post-transition economies. The high concentration of decision-making power within the MNE’s subsidiary points toward higher financial constraints. However, a nonlinear effect is found, which suggests that financial constraints within the subsidiary only increase with more decision-making power when the power granted to the subsidiary is at a low level. For subsidiaries that already have autonomy in decision-making, granting more power in this regard has no effect on financial constraints.
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Sovereign Default Risk and Decentralization: Evidence for Emerging Markets
Stefan Eichler, M. Hofmann
European Journal of Political Economy,
Nr. 32,
2013
Abstract
We study the impact of decentralization on sovereign default risk. Theory predicts that decentralization deteriorates fiscal discipline since subnational governments undertax/overspend, anticipating that, in the case of overindebtedness, the federal government will bail them out. We analyze whether investors account for this common pool problem by attaching higher sovereign yield spreads to more decentralized countries. Using panel data on up to 30 emerging markets in the period 1993–2008 we confirm this hypothesis. Higher levels of fiscal and political decentralization increase sovereign default risk. Moreover, higher levels of intergovernmental transfers and a larger number of veto players aggravate the common pool problem.
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Regional Entrepreneurial Opportunities in the Biotech Industry: Exploring the Transition from Award-winning Nascent Entrepreneurs to Real Start-ups
Claus Michelsen, H. Wolf, Michael Schwartz
European Planning Studies,
2013
Abstract
Welche Faktoren beeinflussen maßgeblich die Wahrscheinlichkeit, dass potenzielle bzw. werdende Unternehmensgründer (nascent entrepreneurs) ihre Gründungsabsicht tatsächlich umsetzen? Hierüber ist bislang kaum etwas bekannt. Das Wissen um die zentralen Einflussfaktoren ist jedoch von hoher Relevanz für die Ausgestaltung eines wirtschaftspolitischen Förderinstrumentariums. Existierende Studien legen einen Fokus auf personenspezifische Merkmale, lassen jedoch die regionale Komponente weitgehend unberücksichtigt. Ausgehend von der Annahme, dass Entrepreneurship stark ortsgebunden stattfindet, argumentiert der Beitrag, dass die Triebkräfte des Übergangs von nascent entrepreneurs zur faktischen Unternehmensgründung in regionalen Rahmenbedingungen (regional entrepreneurial opportunities) zu suchen sind. Diese Annahme wird anhand eines Datensatzes von 103 werdenden Gründern der deutschen Biotechnologiebranche empirisch überprüft. Dabei wird zugleich ein neues Maß der Erfassung von nascent entrepreneurs eingeführt. Dieses umfasst Akteure, die aktiv an einem oder mehreren Gründerwettbewerben teilgenommen haben und in mindestens einem Fall als Preisträger daraus hervorgegangen sind (award-winning nascent entrepreneurs). Unter Berücksichtigung technologischer und personenspezifischer Faktoren bestätigt das ökonometrische Modell in hohem Maße die aufgestellten Hypothesen. Demnach wird die Wahrscheinlichkeit, vom potenziellen zum tatsächlichen Gründer zu werden, stark von allgemeinen wie auch spezifischen regionalen Rahmenbedingungen beeinflusst. Zudem kann der Einfluss einer regionalen Gründerkultur bzw. eines positiven Gründerklimas auf die Übergangswahrscheinlichkeit nachgewiesen werden.
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Qualität der Arbeit: Eine Untersuchung für Ost- und Westdeutschland für die Jahre 1994 und 2009
Herbert S. Buscher, S. Noack, M. Pelz
Wirtschaft im Wandel,
Nr. 12,
2011
Abstract
Qualität der Arbeit – ein überwiegend subjektives Empfinden von Erwerbstätigen hat als qualitatives Merkmal in den letzten Jahren bei der Bewertung der Arbeitswelt an Bedeutung gewonnen. Im Gegensatz zu quantitativen Aspekten des Erwerbs- und Arbeitslebens ist die Qualität der Arbeit allerdings schwer messbar und setzt sich aus zahlreichen Indikatoren zusammen. Die hierbei erfassten Bereiche erstrecken sich von gesundheitlichen Aspekten des Arbeitslebens bis hin zu Möglichkeiten, die Arbeitszeit flexibel zu gestalten. Die vorliegende Studie leistet einen Beitrag zur Erweiterung dieses Indikatorensystems, indem weitere Aspekte der Qualität von Arbeit wie berufsbedingtes Pendeln, die Übereinstimmung von erworbener Qualifikation und ausgeübter Tätigkeit, betriebliche Karrierechancen sowie die allgemeine Einkommenszufriedenheit untersucht werden. Hierbei wird zwischen Ost- und Westdeutschland sowie nach Altersklassen und Qualifikation der Befragten unterschieden. Ausgewertet werden die Ergebnisse auf der Basis des Sozio-oekonomischen Panels (SOEP) für die Jahre 1994 und 2009. Hierdurch sollen Erkenntnisse darüber gewonnen werden, ob insbesondere ostdeutsche Arbeitnehmer zu einem Zeitpunkt relativ kurz nach der politischen Wende die Qualität der Arbeit anders bewerteten als westdeutsche Arbeitnehmer und ob über die Zeit eine Angleichung in der Beurteilung stattgefunden hat.
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Regional Entrepreneurial Opportunities in the Biotech Industry: Exploring the Transition from Award-winning Nascent Entrepreneurs to Real Start-ups
H. Wolf, Claus Michelsen, Michael Schwartz
Abstract
Knowledge of factors that determine the transition from nascent entrepreneurship into real entrepreneurship is of major importance for policies aiming to effectively stimulate start-ups. Whereas scholars concentrated on person-specific factors to explain transition probabilities, environmental characteristics have been fairly neglected. Given that entrepreneurship is a strongly localized phenomenon, this paper argues that regional entrepreneurial opportunities are a driving force behind the transition from nascent entrepreneurship to new venture creation. Based on unique data on 103 nascent entrepreneurs in the German biotechnology industry, we empirically assess the importance of regional entrepreneurial opportunities on transition probabilities. Further, we introduce a new
approach to measure nascent entrepreneurship by capturing individuals that actively participate in start-up competitions and have won at least one competition. Controlling for technology and individual characteristics, we find strong support for our hypotheses relating to the significant impact of general regional opportunities, specific regional opportunities and the entrepreneurial environment for the probability of transition from award-winning nascent entrepreneurs to real start-ups.
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