The Causal Effects of Proximity on Investment: Evidence from Flight Introductions

2019 ◽  
Vol 55 (6) ◽  
pp. 1978-2004 ◽  
Author(s):  
Jesse Ellis ◽  
Leonardo Madureira ◽  
Shane Underwood
Keyword(s):  
Mutual Funds ◽  
Fixed Effects ◽  
Investment Decisions ◽  
Relevant Information ◽  
Causal Effects ◽  
Superior Performance ◽  
Firm Level ◽  
Exogenous Shock ◽  
And Performance ◽  
Fund Investment

We use the introduction of direct flights as an exogenous shock to the travel time between mutual funds and firms to estimate the causal effects of proximity on fund investment decisions and performance. We find that a fund invests significantly more in firms that become more proximate following the introduction of direct flights and that these more proximate investments exhibit superior performance. Our findings are robust to including a variety of fixed effects and potential confounders such as firm-level shocks, fund-level shocks, and time trends. Collectively, our results indicate that proximity enhances investors’ ability to acquire value-relevant information about firms.

scholarly journals Genotype-environment interaction, genetic trends, and performance dissimilarity of Nellore herds raised in three different environmental gradients

2018 ◽  
Vol 39 (1) ◽  
pp. 349
Author(s):  
Julio Cesar de Souza ◽  
Fabio Rafael Leão Fialho ◽  
Marcos Paulo Gonçalves Rezende ◽  
Carlos Henrique Cavallari Machado ◽  
Mariana Pereira Alencar ◽  
...  
Keyword(s):  
Weight Gain ◽  
Fixed Effects ◽  
Genetic Parameters ◽  
Environmental Gradients ◽  
Superior Performance ◽  
Environment Interaction ◽  
Genotype Environment Interaction ◽  
And Performance ◽  
Main Components ◽  
Genetic Trends

The objectives of this work were to evaluate the genotype-environment interaction, and estimate genetic parameters, genetic trends, and performance dissimilarity-weight gain from birth to weaning (WGBW), adjusted weight to 205 days (W205), weight gain from weaning to 18 months of age (WG18), and adjusted weight to 550 days (W550)-in Nellore animals born between 1986 and 2012, and raised in pasture-based system in three different environmental gradients in Brazil. Data of 62,001 animals-11,729 raised in the Alto Taquari/Bolsão region (ATBR), 21,143 raised in the Campo Grande/Dourados region (CGDR) and 29,129 raised in the western São Paulo/Paraná region (SPPR) in Brazil-were used. The contemporary groups were defined by sex, location, and birth year and season, with at least nine individuals, two different environments, and breeding bulls with at least five progenies. The statistical model contained the direct additive and residual genetic effects (random effects), and environmental and contemporary group effects (fixed effects). Genetic parameters, genotype-environment interaction and genetic trends were estimates using animal model (uni- and/or bi- traits). The level of similarity between regions was evaluated using principal components. The animals raised in the CGDR had superior performance regarding the traits evaluated. The direct heritability estimates ranged from 0.39 to 0.44 (WGBW), 0.41 to 0.45 (W205), 0.42 to 0.55 (WG18) and 0.60 to 0.62 (W550). The maternal heritability of the traits ranged from 0.20 (WGBW), 0.12 to 0.18 (W205), 0.00 to 0.06 (WG18) and 0.02 to 0.22 (W550). According to the Spearman correlation, the ranking of the breeding bulls in the regions evaluated were different. The mean of Euclidean distance indicated low similarity between ATBR and CGDR (43.20), and ATBR and SPPR (29.24). CGDR and SPPR presented similarity of 17.84. The breed values increased over the years in the traits evaluated. The cumulative variance percentage of the first two main components explained 99.99% variation among the regions, and the weight gains of the animals were the most important to differentiate the regions. A genotype-environment interaction was found for the traits evaluated, thus, the breeding bull selected with superior genetic merit for one region might not be the best for others.

scholarly journals Is Chain Affiliation a Strategic Asset or Constraint in Emerging Economies? Competitive Strategies and Performance in the Russian Hotel Industry

2021 ◽  
Author(s):  
Päivi Karhunen ◽  
Svetlana Ledyaeva
Keyword(s):  
Emerging Economies ◽  
Emerging Economy ◽  
Superior Performance ◽  
Competitive Strategies ◽  
Firm Level ◽  
Competitive Edge ◽  
Hotel Performance ◽  
Independent Hotels ◽  
And Performance ◽  
Original Survey

AbstractThe purpose of the paper is to find out how chain affiliation, an important strategic choice and a key determinant for hotel performance, influences the strategy-performance nexus in the emerging economy context. It combines the resource- and institution-based views to investigate how chain affiliation moderates the relationship between competitive strategy and performance. This is done by distinguishing between market-based strategies based on differentiation or cost leadership, and non-market strategies that manifest in institutional advantage. The empirical analysis draws from original survey data on 162 hotels located in the Russian cities Moscow and St. Petersburg. The paper finds that first, in emerging economies the competitive edge of chain-affiliated hotels largely arises from market-based advantage, but only in terms of cost advantage. The finding that differentiation advantage is not an important factor of performance for chain-affiliated hotels suggests that firm-level resources derived from chain affiliation would not transform into competitive advantage in the emerging economy context. Second, it is found that institutional advantage is more important determinant of performance for independent hotels, demonstrating the importance of local knowledge and relationships for firms in emerging economies. This finding also suggests that chain affiliation might be rather a strategic constraint than asset for creating superior performance via institutional advantages in the emerging economy context.

scholarly journals MEASURING ATTITUDE TOWARDS MUTUAL FUND INVESTMENT DECISIONS: EVIDENCE FROM TRIPURA, INDIA

2021 ◽  
pp. 1-12
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Investment Decisions ◽  
Primary Data ◽  
Fund Managers ◽  
Study Methodology ◽  
Bank Employees ◽  
Fund Investment ◽  
Improve Attitude ◽  
The Impact

The purpose of this paper is to assess the attitude of bank employees in Tripura towards investment in the mutual fund and investigate the impact of attitude on volume of investment. The study methodology is based on the responses of a questionnaire received from 262 employees of banks in Tripura. On the basis of primary data, the attitude of the employees has been assessed and ordinal logistic regression is used to find out the impact of attitude on their volume of investment in mutual fund. It is found that overall attitude of bank employees in Tripura towards investment in mutual fund is favorable. It can also be concluded that attitude and volume of investment in mutual fund is positively related. The study is useful for the fund managers of mutual funds. Once the attitude to employees towards investment in mutual fund is ascertained, then suitable strategy regarding imparting training can be designed to improve attitude towards investment in mutual fund. The study is original in nature.

scholarly journals Portfolio Preferences Across Markets: Evidence from Mutual Fund Ownership

2012 ◽  
Author(s):  
Wen-Hsiu Chou
Keyword(s):  
Economic Development ◽  
Emerging Markets ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Investment Decisions ◽  
Firm Characteristics ◽  
Fund Managers ◽  
Portfolio Holdings ◽  
Fund Investment

This paper is about evaluating and comparing the portfolio preferences of domestic and foreign mutual funds in developed and emerging markets over the period 1998-2007. We find that foreign and domestic mutual funds have some different preferences toward firm characteristics and firm’s information enviroments, and economic development affects the preferences for both types of funds. A country’s characteristics and institutions also influence mutual fund investment decisions when fund managers from their portfolio holdings. Results further show that foreign and domestic mutual funds play a monitoring role in their portfolio firms, but foreign mutual funds cannot monitor firms effectively in emerging markets.  

Multinational Banks and IMF Conditionality

2021 ◽  
Author(s):  
Trung A Dang ◽  
Randall W Stone
Keyword(s):  
Political Economy ◽  
Investment Decisions ◽  
Location Decisions ◽  
Preferential Treatment ◽  
Firm Level ◽  
Financial Firms ◽  
Level Data ◽  
Firm Level Data ◽  
Imf Programs ◽  
Investment Location

Abstract We find firm-level evidence that US banks receive preferential treatment in countries under IMF conditionality. We rely on investment location decisions to infer firms’ expectations about future profits and find that US firms are approximately 53 percent more likely to acquire financial firms in countries under financial conditionality. IMF programs without financial conditionality and FDI in other sectors serve as placebo tests. Financial conditionality has weak effects on investment decisions by non-US firms, which implies a political-economy interpretation. Firm-level data indicate that the distinctive behavior of US firms is not due to advantages of scale or to a US-firm fixed effect, but to US influence in the IMF. Firms from other major IMF shareholders benefit as well, but the effects are much weaker. The effects are concentrated in the politically relevant firms that have local affiliates, which is consistent with the interpretation that firms lobby for preferential treatment.

The Importance of Oversight and Agency Capacity in Enhancing Performance in Public Service Delivery

2020 ◽  
Author(s):  
Cody A Drolc ◽  
Lael R Keiser
Keyword(s):  
Service Delivery ◽  
Performance Management ◽  
Fixed Effects ◽  
Poor Performance ◽  
Central Component ◽  
State Agencies ◽  
Public Programs ◽  
And Performance ◽  
Fixed Effects Regression ◽  
Social Security Disability

Abstract Government agencies often encounter problems in service delivery when implementing public programs. This undermines effectiveness and raise questions about accountability. A central component of responsiveness and performance management is that agencies correct course when problems are identified. However, public agencies have an uneven record in responding to problems. In this paper we investigate whether, and to what extent, capacity both within the agency and within institutions performing oversight, improves agency responsiveness to poor performance indicators. Using panel data on eligibility determinations in the Social Security Disability program from U.S. state agencies from 1991-2015 and fixed effects regression, we find that indicators of agency and oversight capacity moderate the relationship between poor performance and improvement. Our results suggest that investments in building capacity not only within agencies, but also within elected institutions, are important for successful policy implementation. However, we find evidence that while agency capacity alone can improve responsiveness to poor performance, the effect of oversight capacity on improving performance requires high agency capacity.

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