Blockholder Ownership and Corporate Control: The Role of Liquidity

2014 ◽  
Vol 04 (01) ◽  
pp. 1450003 ◽  
Author(s):  
William C. Gerken
Keyword(s):  
Instrumental Variable ◽  
Corporate Control ◽  
Regulatory Change ◽  
Variable Approach ◽  
Large Shareholders ◽  
Block Formation ◽  
Instrumental Variable Approach

Employing an instrumental variable approach based on the regulatory change of tick sizes, I examine the link between the liquidity of a firm's equity and activism by large shareholders. I find that liquidity increases the likelihood of block formation. Blockholders of more liquid securities take smaller stakes that do not precommit them to monitor. I find evidence that the threat of exit from a block can discipline managers and that this threat is more effective when liquidity is higher. While liquidity increases exit from existing blocks, I find no evidence that share illiquidity that forces blockholders to actively monitor.

scholarly journals The paradox of poor representation: How voter–party incongruence curbs affective polarisation

2021 ◽  
pp. 136914812110485
Author(s):  
Nahema Marchal ◽  
David S Watson
Keyword(s):  
Political Parties ◽  
Instrumental Variable ◽  
Election Study ◽  
Variable Approach ◽  
Key Driver ◽  
Causal Impact ◽  
The Relationship ◽  
Instrumental Variable Approach ◽  
Potential Determinant

Research on the relationship between ideology and affective polarisation highlights ideological disagreement as a key driver of animosity between partisan groups. By operationalising disagreement on the left–right dimension, however, existing studies often overlook voter–party incongruence as a potential determinant of affective evaluations. How does incongruence on policy issues impact affective evaluations of mainstream political parties and their leaders? We tackle this question by analysing data from the British Election Study collected ahead of the 2019 UK General Election using an instrumental variable approach. Consistent with our expectations, we find that voter–party incongruence has a significant causal impact on affective evaluations. Perceived representational gaps between party and voter drive negative evaluations of the in-party and positive evaluations of the opposition, thus lowering affective polarisation overall. The results offer a more nuanced perspective on the role of ideological conflict in driving affective polarisation.

International Remittances and Private Healthcare in Kerala, India

2020 ◽  
Vol 17 (3) ◽  
pp. 445-460
Author(s):  
Mohd Imran Khan ◽  
Valatheeswaran C.
Keyword(s):  
Instrumental Variable ◽  
Capital Investment ◽  
Healthcare Expenditure ◽  
Healthcare Services ◽  
Private Healthcare ◽  
International Remittances ◽  
Variable Approach ◽  
Using Data ◽  
The Impact ◽  
Instrumental Variable Approach

The inflow of international remittances to Kerala has been increasing over the last three decades. It has increased the income of recipient households and enabled them to spend more on human capital investment. Using data from the Kerala Migration Survey-2010, this study analyses the impact of remittance receipts on the households’ healthcare expenditure and access to private healthcare in Kerala. This study employs an instrumental variable approach to account for the endogeneity of remittances receipts. The empirical results show that remittance income has a positive and significant impact on households’ healthcare expenditure and access to private healthcare services. After disaggregating the sample into different heterogeneous groups, this study found that remittances have a greater effect on lower-income households and Other Backward Class (OBC) households but not Scheduled Caste (SC) and Scheduled Tribe (ST) households, which remain excluded from reaping the benefit of international migration and remittances.

scholarly journals Errors-in-Variables Identification in Dynamic Networks by an Instrumental Variable Approach

2014 ◽  
Vol 47 (3) ◽  
pp. 2335-2340 ◽  
Author(s):  
Arne Dankers ◽  
Paul M.J. Van den Hof ◽  
Xavier Bombois ◽  
Peter S.C. Heuberger
Keyword(s):  
Instrumental Variable ◽  
Dynamic Networks ◽  
Errors In Variables ◽  
Variable Approach ◽  
Instrumental Variable Approach

Local Industrial Policy and Sectoral Hubs

2021 ◽  
Vol 111 ◽  
pp. 526-531
Author(s):  
Esteban Rossi-Hansberg ◽  
Pierre-Daniel Sarte ◽  
Felipe Schwartzman
Keyword(s):  
Optimal Policy ◽  
Spatial Model ◽  
Instrumental Variable ◽  
Professional Services ◽  
Specific Production ◽  
Production Externalities ◽  
Industrial Policies ◽  
Coastal Cities ◽  
Variable Approach ◽  
Instrumental Variable Approach

We study the desirability of industrial policies that generate sectoral hubs using a quantitative spatial model with cognitive nonroutine and other occupations. The productivity of each occupation in an industry depends on sector-specific production externalities, which we estimate using a model-implied instrumental variable approach. We find that the optimal policy gives rise to national hubs in coastal cities in tradable services, like professional services, and smaller regional hubs in less tradable services, like health and education. The optimal policy prescribes developing manufacturing in smaller towns. We decompose the implied changes in local costs and the available varieties in each sector.

scholarly journals Origins and Mechanisms of Social Influences in Couples: The Case of Retirement Decisions

2019 ◽  
Vol 35 (6) ◽  
pp. 790-806 ◽  
Author(s):  
Maria Eismann ◽  
Kène Henkens ◽  
Matthijs Kalmijn
Keyword(s):  
Older Workers ◽  
Instrumental Variable ◽  
Early Retirement ◽  
Variable Approach ◽  
Partner Influence ◽  
Course Work ◽  
Self Interest ◽  
Retirement Decisions ◽  
Instrumental Variable Approach ◽  
Large Representative

Abstract The interdependence between partners raises considerable interest in the sociology of life course, work, and families. Partner influences play a particularly important role in the work domain, because each partner’s work decisions have profound effects on the couple as a whole. In contrast to previous research, this article pays detailed attention to the role a partner plays in workers’ labour market decisions by analysing the case of early retirement decisions. We hypothesized that partners’ preferences for older workers’ retirement originate from altruism and self-interest. Moreover, we expected that partners influence older workers’ early retirement behaviour via persuasion and pressure. To adequately estimate partners’ and workers’ preferences for the worker’s retirement, we used an instrumental variable approach. This was possible because we collected multi-actor longitudinal data from a large representative sample of older workers and their partners in the Netherlands. The results support that spousal preferences originate in altruism and self-interest and that partners influence workers through persuasion and pressure. Gender differences in origins and mechanisms of partner influence are also discussed.

scholarly journals Did the Kyoto Protocol fail? An evaluation of the effect of the Kyoto Protocol on CO2emissions

2015 ◽  
Vol 21 (1) ◽  
pp. 1-22 ◽  
Author(s):  
Nicole Grunewald ◽  
Inmaculada Martinez-Zarzoso
Keyword(s):  
Kyoto Protocol ◽  
Data Model ◽  
Instrumental Variable ◽  
Panel Data Model ◽  
Matched Sample ◽  
Difference In Differences ◽  
Variable Approach ◽  
Policy Variable ◽  
The Impact ◽  
Instrumental Variable Approach

AbstractIn this paper, we empirically investigate the impact of the Kyoto Protocol on CO2emissions using a sample of 170 countries over the period 1992–2009. We propose the use of a difference-in-differences estimator with matching to address the endogeneity of the policy variable, namely Kyoto commitments. Countries are matched according to observable characteristics to create a suitable counterfactual. We correspondingly estimate a panel data model for the whole sample and the matched sample and compare the results to those obtained using an instrumental variable approach. The main results indicate that Kyoto Protocol commitments have a measurable reducing effect on CO2emissions, indicating that a treaty often deemed a ‘failure’ may in fact be producing some non-negligible effects for those who signed it.

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