Dynamics of Buyer-Seller Relations in Norwegian Wine Imports

2020 ◽  
pp. 1-18
Author(s):  
Ursula Landazuri-Tveteraas ◽  
Frank Asche ◽  
Hans-Martin Straume
Keyword(s):  
Import Price ◽  
Search Costs ◽  
High Quality ◽  
Firm Level ◽  
Level Data ◽  
Long Time ◽  
Duration Of Trade ◽  
Trade Relationships ◽  
Positive Determinant ◽  
Jel Classifications

Abstract As for all traded products, aggregated wine imports build on numerous trades at the firm level. To ensure consumers access to a variety of wines with different qualities, importers need to connect to different wine exporters. Some of these relationships will last for a long time, while the duration of others may be short. In this article, we employ transaction-level data to analyze the duration of trade relationships in wine imports to Norway from 2004 to 2014. We find that most relationships are short-lived, as more than 75% of trade relationships end after less than two years. Furthermore, we find that higher-quality wines, as indicated by the import price, increase trade duration. Deeper firm-to-firm trade relationships for more exclusive wines are likely due to higher search costs for high-quality products. The results also show that the size of the initial trade between the partners, or degree of commitment, is a positive determinant for persistent relationships. (JEL Classifications: C41, F14, Q27)

Do Labor Unions Always Lead to Underinvestment?

2016 ◽  
Vol 29 (1) ◽  
pp. 45-66 ◽  
Author(s):  
Hyungjin Cho ◽  
Bryan Byung-Hee Lee ◽  
Woo-Jong Lee ◽  
Byungcherl Charlie Sohn
Keyword(s):  
Labor Unions ◽  
Labor Union ◽  
Agency Problems ◽  
Investment Efficiency ◽  
Minority Shareholders ◽  
Firm Level ◽  
Negative Relation ◽  
Level Data ◽  
Firm Level Data ◽  
Jel Classifications

ABSTRACT We examine the relation between labor union strength and investment efficiency using the comprehensive firm-level data of Korean-listed companies. We find that the perceived underinvestment related to unionization documented in previous studies is attributable to a negative relation between union strength and investment in overinvesting firms. In fact, union strength is positively related to the level of investment in underinvesting firms. We further find that the relation between union strength and investment efficiency is more pronounced for chaebol firms where inefficient investments are more likely due to greater agency problems between the controlling and minority shareholders. Finally, we document that the investment has more positive value implications in firms with a stronger union. Our results suggest that unions play an important role as a nonfinancial stakeholder in curbing inefficient investments. JEL Classifications: G30; G31; J53; J54; M41; M54.

scholarly journals Competitive Pressure and Firm-Level Innovation: The Perspective of a Developing Economy

2020 ◽  
Vol 4 (3) ◽  
pp. 35-54
Author(s):  
Muhammad Zeeshan Younas ◽  
Faiz Ur Rehman
Keyword(s):  
Organizational Innovation ◽  
Multivariate Probit ◽  
Complex Relationship ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
Long Time ◽  
Practical Implications ◽  
Shed Light ◽  
Scholarly Attention

The connection between firm-level innovation and competition has received scholarly attention for a long time before now. This paper attempts to shed light on this complex relationship from a novel perspective where a detailed firm-level dataset of private manufacturing Pakistani firms spanning from 2002 to 2015 is used. We test whether the non-linearity estimate of Aghion et al. (2005) is sustained by our firm-level data. A multivariate probit estimation technique indicates that higher competition leads to a more probability of innovation, but at a declining rate as competitor numbers increase. Moderate confirmation of an inverted-U relationship between competition and innovation is found, especially in process and organizational innovation. The findings have practical implications for policymakers in the area of market structure and firm-level innovation.

SINGLE VERSUS MULTIPLE BANKING RELATIONSHIPS-EVIDENCE FROM CHINESE LENDING MARKET

2017 ◽  
Vol 62 (01) ◽  
pp. 227-250 ◽  
Author(s):  
WEI YIN ◽  
KENT MATTHEWS
Keyword(s):  
Small Firms ◽  
Market Competition ◽  
Bank Loan ◽  
Medium Size ◽  
High Quality ◽  
Firm Level ◽  
Lending Relationships ◽  
Chinese Firm ◽  
Level Data ◽  
Banking Relationships

Using Chinese firm level data for 2003–2012, this paper determines the factors that drive firms to switch from single bank loan providers to multiple bank loan providers. The results show that large firms are more likely to switch from single to multiple lending relationships. This study finds that medium size and small firms of high quality are more likely to have a single borrower relationship while large and high quality firms are more likely to have multiple bank relationships. Increasing market competition decreases the probability of single bank-firm relationship.

Implicit Taxes Amid Race to the Bottom in a Global Tax Game

2020 ◽  
Vol 27 (2) ◽  
pp. 42
Author(s):  
Igor Semenenko ◽  
Junwook Yoo ◽  
Parporn Akathaporn
Keyword(s):  
Capital Mobility ◽  
Tax Rates ◽  
Corporate Tax ◽  
Firm Level ◽  
Race To The Bottom ◽  
Tax Subsidy ◽  
Tax Subsidies ◽  
Level Data ◽  
Tax Returns ◽  
Tax Hypothesis

Growing tax competition among national governments in the presence of capital mobility distorts equilibrium in the international corporate tax market. This paper is related to the literature that examines impact of international tax policies on corporate accounting statements. Employing international firm-level data, this study revisits the race-to-the-bottom hypothesis and documents that tax exemptions lowering effective tax rates relative to statutory rates increase pre-tax returns. This finding directly contradicts the implicit tax hypothesis documented by Wilkie (1992), who provided empirical evidence on inverse relationship between pre-tax return and tax subsidy. We also find evidences that relative importance of permanent versus timing component depends on the geography and that decline in corporate tax rates reduces impact of tax subsidies on profitability. Our findings suggest that tax subsidies play a different role than in 1968-1985, which was examined by Wilkie (1992). These results are consistent with the race-to-the-bottom hypothesis and income shifting explanation

Ageing and Employability. Evidence from Belgian Firm-Level Data

2012 ◽  
Author(s):  
Mariann Rigo ◽  
Vincent Vandenberghe ◽  
Fábio Waltenberg
Keyword(s):  
Firm Level ◽  
Level Data ◽  
Firm Level Data

scholarly journals Who Really Benefits from Consumption Tax Cuts? Evidence from a Large VAT Reform in France

2019 ◽  
Vol 11 (1) ◽  
pp. 38-63 ◽  
Author(s):  
Youssef Benzarti ◽  
Dorian Carloni
Keyword(s):  
Value Added ◽  
Consumption Tax ◽  
Difference In Differences ◽  
Firm Level ◽  
Employment Effects ◽  
Level Data ◽  
Price Effects ◽  
Firm Level Data ◽  
Material Goods ◽  
Firm Owners

This paper evaluates the incidence of a large cut in value-added taxes (VATs) for French sit-down restaurants in 2009. In contrast to previous studies, which only focus on the price effects of VAT reforms, we estimate the effects of the VAT cut on four groups: workers, firm owners, consumers, and suppliers of material goods. Using a difference-in-differences strategy on firm-level data, we find that: firm owners pocketed more than 55 percent of the VAT cut; consumers, sellers of material goods, and employees shared the remaining windfall with consumers benefiting the least; and the employment effects were limited. (JEL H22, H25, L83)

scholarly journals Information related service trade within firms: evidence from firm-level data in Germany

2021 ◽  
Author(s):  
Kurt A. Hafner ◽  
Jörn Kleinert
Keyword(s):  
Multinational Firms ◽  
Economies Of Scope ◽  
It Services ◽  
Firm Level ◽  
It Service ◽  
Level Data ◽  
Related Service ◽  
Foreign Affiliates ◽  
Knowledge Intensive ◽  
Parent Companies

AbstractMulti-unit firms have productivity advantages over competitors because of their use of a non-rival asset—firm-specific knowledge—in several units. Using knowledge-intensive services leads to economies of scope in production by multi-unit firms. Such headquarter are usually supplied by parent companies and serve to link different firm units. Headquarter services are difficult to quantify in statistics or surveys, except when they cross-borders and the exchange of services between MNEs and their offshore subsidiaries becomes apparent. This study therefore focuses on IT service imports to explain productivity differences among foreign affiliates of multinational firms in Germany. The authors base the analysis on the population of foreign multinational firms active in Germany and analyze what effect the import of IT services has on their productivity. They find that IT headquarter service flows have significant impacts on foreign affiliates’ productivity in general and US affiliates in particular. As the average IT-service flows (per firm and partner) from parent countries are significantly higher for US affiliates than non-US affiliates, they conclude that the import of IT services from the parent-company is a source of the productivity advantages of US affiliates in Germany.

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