Signaling Under Threat: Evidence of Voluntary Disclosure in Contested Takeovers

2020 ◽  
pp. 0148558X2096781
Author(s):  
Gerald J. Lobo ◽  
Kangzhen Xie ◽  
Claire J. Yan
Keyword(s):  
Propensity Score ◽  
Information Asymmetry ◽  
Propensity Score Matching ◽  
Voluntary Disclosure ◽  
Bargaining Power ◽  
Economic Consequences ◽  
Good News ◽  
Earnings Guidance ◽  
Difference In Differences ◽  
Target Management

We investigate voluntary disclosure strategies in contested takeovers and the associated economic consequences. Using a difference-in-differences research design and propensity score matching, we find that, relative to friendly takeovers, target management in contested takeovers provides more earnings guidance and conveys more good news during the takeover. Moreover, voluntary disclosure helps contested targets negotiate a better offer, and the results are stronger for targets with more information asymmetry. Collectively, targets adopt voluntary disclosure and alter their strategies under the threat of contested takeover to enhance their bargaining power. Voluntary disclosure by contested targets serves as a negotiation tactic that potentially benefits target shareholders.

Was it worth it? The impact of the German minimum wage on union membership of employees

2021 ◽  
pp. 0143831X2110358
Author(s):  
Simon Ress ◽  
Florian Spohr
Keyword(s):  
Propensity Score ◽  
Social Security ◽  
Labour Market ◽  
Propensity Score Matching ◽  
Minimum Wage ◽  
Trade Union ◽  
Union Membership ◽  
Difference In Differences ◽  
German Trade ◽  
The Impact

This contribution scrutinises how introducing a statutory minimum wage of EUR 8.50 per hour, in January 2015, impacted German employees’ decision with regard to union membership. Based on representative data from the Labour Market and Social Security panel, the study applies a logistic difference-in-differences propensity score matching approach on entries into and withdrawals from unions in the German Trade Union Confederation (Deutscher Gewerkschaftsbund, DGB). The results show no separate effect on withdrawals from or entries into unions after the minimum wage introduction for those employees who benefited financially from it, but a significant increase of entries overall. Thus, unions’ campaign for a minimum wage strengthened their position in total but did not reverse the segmentation of union membership patterns.

scholarly journals subsidio a la demanda educativa en la asistencia a la Educación Media en Uruguay

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Pablo Menese Camargo
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Difference In Differences ◽  
America Latina ◽  
Capital Humano

En Uruguay las tasas de egreso de Educación Media son cercanas al 40%, de las más bajas de toda América Latina. Una de las estrategias de combate a la desigualdad educativa fue, en el año 2008, la ampliación, el refuerzo y la focalización de las Asignaciones Familiares, uno de los programas de transferencia monetaria condicionada más antiguos y de mayor alcance. De este modo, a través del incremento de una partida monetaria mensual se subsidia el gasto educativo privado, y los individuos provenientes de los hogares de menores ingresos pueden afrontar los costos de continuar escolarizados, invirtiendo en capital humano y rompiendo el ciclo de la vulnerabilidad económica. El objetivo de este trabajo es observar el efecto de un programa de subsidio al gasto educativo privado en la asistencia a la Educación Media. Para ello se utiliza una serie armonizada de la Encuesta Continua de Hogares desde el año 2001 al 2017 en la cual, a través de una combinación de cuasi experimentos tales como Propensity Score Matching y Difference in Differences se evalúa el impacto de las Asignaciones Familiares y de la ampliación de régimen desde el año 2008, en la asistencia a la Educación Media Básica y Educación Media Superior. Entre los principales resultados se destaca el efecto significativo y positivo de las Asignaciones Familiares en la asistencia a la Educación Media Básica, con un incremento de la magnitud luego de la reforma de 2008. En cambio, en Educación Media Superior las Asignaciones Familiares tuvieron un efecto nulo previo a 2008, y negativo posteriormente. 

Regional and Local Economic Effects from Proximity of High-Speed Rail Stations in Japan: Difference-in-Differences and Propensity Score Matching Analysis

2019 ◽  
Vol 2673 (9) ◽  
pp. 323-333 ◽  
Author(s):  
Jetpan Wetwitoo ◽  
Hironori Kato
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
High Speed ◽  
Average Treatment Effect ◽  
Economic Effects ◽  
Tax Revenue ◽  
Local Production ◽  
Difference In Differences ◽  
High Speed Rail ◽  
Level Analysis

This paper gives empirical evidence about the economic effects of the proximity of high-speed rail (HSR) on regional/local production and labor productivity in Japan. The effects on regional and local scales are analyzed based on a Difference-in-Differences (DID) method and a Propensity Score Matching (PSM) method. The prefecture-level analysis investigates the effect on regional production at the prefecture level from 1981 to 2006 and the municipality-level analysis investigates the effect on the local tax revenue and the tax revenue per capita at the municipality level, particularly focusing on new HSR extensions between 2010 and 2015. The results from both levels showed statistically insignificant estimations of both the DID effect and the Average Treatment effect on the Treated from PSM, which implies that, on average, there is no direct effect from the proximity to HSR services on regional or local production or productivity. One of the potential reasons, the range of the distance from the HSR services at which the impact on the local economy is felt, is discussed. Further analysis showed that the range at which HSR services have an impact on local tax revenue per payer could vary from 10 to 30 km, depending on local characteristics in the location of the HSR station.

scholarly journals Do minimum wages improve self-rated health? Evidence from a natural experiment

2021 ◽  
Author(s):  
Lucas Hafner ◽  
Benjamin Lochner
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Minimum Wage ◽  
Survey Data ◽  
Natural Experiment ◽  
Time Pressure ◽  
Working Hours ◽  
Difference In Differences ◽  
Self Rated Health ◽  
Confounding Variables

AbstractWe analyze whether the introduction of the general minimum wage in Germany in 2015 had an effect on workers’ self-rated health. To this end, we use survey data linked to administrative employment records and apply difference-in-differences regressions combined with propensity score matching. This approach enables us to control for a vast set of potential confounding variables. We find a health improving effect among the individuals who were most likely to be affected by the reform. Our results indicate that workers’ improved satisfaction with pay, their reduced working hours, and a reduction in time pressure at work may drive this result.

scholarly journals Impact of Equitization on Performance of Enterprises in Vietnam

2016 ◽  
Vol 23 (03) ◽  
pp. 36-56
Author(s):  
Loc Truong Dong ◽  
Tran Ngo My
Keyword(s):  
Firm Performance ◽  
Propensity Score ◽  
Propensity Score Matching ◽  
Total Asset ◽  
Debt Ratio ◽  
Difference In Differences ◽  
Asset Turnover ◽  
The Impact ◽  
Positive Impacts

The main objective of this study is to measure the impact of equitization on firm performance in Vietnam. The dataset, retrieved from the survey on enterprises conducted by the General Statistics Office of Vietnam (GSO), consists of 301 equitized state-owned firms and 127 unequitized state-owned firms during the period from 2007 to 2010. By using propensity score matching (PSM) combined with difference in differences (DID) approach, we find that equitization has positive impacts on the ratio of income before tax to total assets and the ratio of income before tax to sales. Moreover, this study reveals that debt ratio, total asset turnover, and the number of employees have significantly decreased after equitization. However, no evidence is found regarding the effect of equitization on productivity of equitized firms.

scholarly journals Pedagogy and Student Learning Outcomes in Elementary Schools in Rural India: A Quasi-Experimental Approach

2021 ◽  
Vol 10 (1-2) ◽  
pp. 1-16
Author(s):  
Atrayee Ghosh Roy
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Learning Outcomes ◽  
Student Learning Outcomes ◽  
Fifth Grade ◽  
Difference In Differences ◽  
Children’S Learning ◽  
The Difference ◽  
The Impact ◽  
Children's Learning

Abstract The purpose of this paper is to explore the impact of effective teaching methods on learning outcomes in elementary schools in rural India. Particularly, this paper studies an innovative learning enhancement program called “Parrho Punjab” launched in 2007 in the Indian state of Punjab. Using cross-sectional data, the effect of the “Parrho Punjab” program on third to fifth grade children’s learning levels in basic mathematics is evaluated. This study develops combined research designs of propensity score matching technique and the difference-in-differences (DID) method. In a first step, propensity score matching technique is applied to create a synthetic control group that is as similar as possible to the treatment group in terms of pre- “Parrho Punjab” characteristics. The difference-in-differences approach is then used to estimate the effect of the program on third to fifth grade children’s learning outcomes in basic mathematics. The results indicate a positive and significant effect of the program on children’s learning outcomes in basic mathematics, underscoring the importance of effective pedagogy in enhancing learning outcomes. Combining propensity score matching with the difference-in-differences approach, this study addresses the problem of unmeasured confounding. The DID approach will produce misleading conclusions in the presence of bias due to unmeasured confounders. To the best of my knowledge, previous studies using a DID method for examining the impact of effective teaching strategies on student learning outcomes in India have not made such attempts to address the problem of confounding bias.

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