Transgenerational Succession and R&D Investment: A Myopic Loss Aversion Perspective

2021 ◽  
pp. 104225872110384
Author(s):  
Weiwen Li ◽  
Garry D. Bruton ◽  
Xinchun Li ◽  
Shuang Wang

A transgenerational leadership transition is one of the most critical events in the life cycle of family firms. Drawing upon the myopic loss aversion (MLA) perspective, we argue that outgoing leaders and other company stakeholders tend to closely watch the later-generation successors immediately after a transgenerational succession, and thus the successors will focus on short-term developments and invest less in R&D activities. Employing the difference-in-differences approach, we find empirical support for our argument that transgenerational succession decreases R&D intensity. The negative effect of transgenerational succession is more pronounced when the later-generation successors suffer from a higher level of MLA.

2019 ◽  
Vol 1 (1) ◽  
pp. 21
Author(s):  
Arif Nugrahanto ◽  
Soupani Andri Nasution

Several studies related to the effect of audits on taxpayer compliance provide different conclusions. Bergman and Nevarez (2006) find the fact that tax audits negatively affect compliance. In contrast, Gemmel and Ratto (2012) concluded that the audit had a negative effect on the group of taxpayers who obeyed, and at the same time had a positive effect on the group of taxpayers who did not comply. Given the different conclusions, the researcher is interested in testing in the Indonesian context by using the SIDJP data from the Directorate General of Tax for the period 2009-2013.The difference-in-differences approach model implemented in this study adopts Norman Gemmell and Marissa Ratto (2012). The dependent variable is income tax while the independent variable is the dummy variable for group, time and type of audits. Regression results show that the interaction coefficient between the dummy group variable and the time dummy variable which is the difference-in-differences coefficient, has a p-value that is statistically insignificant to reject null hypothesis. It tells that there is no difference in the level of compliance between the audited (corporate) taxpayer and non-audited (corporate) taxpayers. No impact on the level of compliance of taxpayers may come from several reasons, including the small coverage of the tax audits, the existence of the bomb crater effect, and the results of the type of updating audit risk.


2019 ◽  
Vol 20 (3) ◽  
pp. 330-355 ◽  
Author(s):  
Sebastian Schmitz

AbstractIn January 2015, Germany introduced a federal, statutory minimum wage of 8.50 € per hour. This study evaluates the effects of this policy on regular and marginal employment and on welfare dependency. Based on the county-level administrative data, this study uses the difference-in-differences technique, exploiting regional variation in the bite of the minimum wage, i.e., the county-specific share of employees paid less than 8.50 € before the introduction of the minimum wage. The minimum wage had a considerable negative effect on marginal employment. There is also some indication that regular employment was slightly reduced. Concerning welfare dependency, the minimum wage reduced the number of working welfare recipients, with some indication that about one half of them left welfare receipt due to the minimum wage.


2017 ◽  
Vol 42 (2) ◽  
pp. 231-251 ◽  
Author(s):  
Asma Fattoum-Guedri ◽  
Zied Guedri ◽  
Frédéric Delmar

This study examines how multiple blockholder structures affect family firm performance. Building on arguments from both principal–principal agency and familiness perspectives, we suggest that asymmetrical distribution of voting power among family and nonfamily blockholders hurts firm performance. Further, we suggest that the larger the number of blockholder types, the stronger the negative effect of voting-power asymmetry among family and nonfamily blockholders on firm performance. We provide empirical support for our hypotheses using a longitudinal sample of 413 French family firms over the 1992–2012 period.


2016 ◽  
Vol 19 (2) ◽  
pp. 283
Author(s):  
Ni Made Wisni Arie Pramuki ◽  
Bambang Subroto ◽  
Imam Subekti

This study aimed to find out, empirically, the effect of myopic loss aversion and accounting information on the behavior of investors. The method used is pure experiment by using a 2×2 factorial design between subjects. The results show that myopic loss aversion and accounting information positively affects investor behavior. Another result reveals that there is a difference in treatment (frequent and infrequent) that was equally given accounting information. There is a difference of treatment (frequent and infrequent) that was not given accounting information, but the results return obtained by investors with the treatment of frequent is higher than investors with the treatment of infrequent, it indicates that investors that were treated frequently to be more willing to take a risk, and investors proved not to experience MLA. It was not found the difference in treatment (frequent and infrequent) with accounting information with those that were not given accounting information. It can be caused by a lack of understanding of investors (in this case by the students) in interpreting and analyzing accounting information as well as private signals that still dominate the investors.


2019 ◽  
pp. 109-123
Author(s):  
I. E. Limonov ◽  
M. V. Nesena

The purpose of this study is to evaluate the impact of public investment programs on the socio-economic development of territories. As a case, the federal target programs for the development of regions and investment programs of the financial development institution — Vnesheconombank, designed to solve the problems of regional development are considered. The impact of the public interventions were evaluated by the “difference in differences” method using Bayesian modeling. The results of the evaluation suggest the positive impact of federal target programs on the total factor productivity of regions and on innovation; and that regional investment programs of Vnesheconombank are improving the export activity. All of the investments considered are likely to have contributed to the reduction of unemployment, but their implementation has been accompanied by an increase in social inequality.


2020 ◽  
Vol 79 (Suppl 1) ◽  
pp. 920.1-921
Author(s):  
N. Stepanenko ◽  
E. Fedorov ◽  
S. Salugina ◽  
S. Feoktistova

Background:Monogenic auto-inflammatory diseases (mAID) are a group of severe chronic multisystemic diseases with recurring episodes of fever and other manifestations that significantly affect the patients’ life quality. Moreover, the hyper expression of pro-inflammatory cytokines (IL1β, etc.) observed in these patients may have a negative effect on the central nervous system.Objectives:to study the state of the cognitive and emotional spheres in children suffering from monogenic auto-inflammatory diseases.Methods:there were examined 22 children at the age of 7 to 17 years old diagnosed with CAPS-9, TRAPS-8, FMF-5. Among them there were 12 boys and 10 girls. The diagnosis in all the patients was confirmed through detection of pathogenic mutations in the NLRP3, TNFRSF1A and MEFV genes. The following methods were used: a clinical conversation; memory diagnostics (learning by heart of 10 words, a pictogram using cues taking into account the patients’ age); attention diagnostics (Schulte tables); thinking diagnostics (establishing a sequence of events, “four is a crwod”, simple analogies, interpretation of proverbs); emotional and communicative fields (the Eight-Color Luscher Test; CMAS (adaptation by A. Prikhozhan); STAI test, a drawing called “an animal that does not exist” and “a house-a tree-a man”).Results:The memory study revealed in all patients with TRAPS and FMF high and medium values of short-term and long-term memory, in patients with CAPS - a low level of short-term auditory-speech memory, information storage and indirect memorization in 1/3 of patients. In 100% of the examined patients with TRAPS, a significant decrease in all processes of attention and distribution of attention. In 1/3 of patients with CAPS, an increased exhaustion of attention was registered and in 11% - a decrease in its stability. In patients with FMF, attention disorders were not detected. In 44% of patients with CAPS, a decrease in the level of generalization and difficulties in establishing causal relationships were registered. In 25% of patients with TRAPS a decrease in the level of generalization, in 12.5%- difficulties in establishing cause-effect relationships, inertia of thinking in 37.5%. In 60% of patients with FMF: a decrease in the level of generalization, in 80%: difficulties in establishing cause-effect relationships, inertia of thinking in 20%. In the emotional sphere, patients with CAPS, TRAPS, and FMF demonstrated signs of aggression (11.1%, 20% and 20% of patients, respectively), communicative disorders (77.8% -80% - 80%), and reduced social adaptation (55.5% - 80% - 80%), a tendency to form neurotic fears (22% - 40% - 40%). A high level of personal anxiety was noted in 1/3 of patients with CAPS and 40% of patients with FMF.Conclusion:various psychological disorders in the cognitive and emotional fields were noted in the majority of the examined patients with monogenic auto-inflammatory diseases. In patients with TRAPS, attention processes are most significantly affected; in patients with CAPS, memory is more often affected. In patients with FMF, disorders in thinking processes are revealed more often. In the emotional sphere, most patients with all the three forms of AID note communicative disorders and social adaptation.Disclosure of Interests:None declared


2021 ◽  
Vol 256 ◽  
pp. 19-43
Author(s):  
Jennifer L. Castle ◽  
Jurgen A. Doornik ◽  
David F. Hendry

The Covid-19 pandemic has put forecasting under the spotlight, pitting epidemiological models against extrapolative time-series devices. We have been producing real-time short-term forecasts of confirmed cases and deaths using robust statistical models since 20 March 2020. The forecasts are adaptive to abrupt structural change, a major feature of the pandemic data due to data measurement errors, definitional and testing changes, policy interventions, technological advances and rapidly changing trends. The pandemic has also led to abrupt structural change in macroeconomic outcomes. Using the same methods, we forecast aggregate UK unemployment over the pandemic. The forecasts rapidly adapt to the employment policies implemented when the UK entered the first lockdown. The difference between our statistical and theory based forecasts provides a measure of the effect of furlough policies on stabilising unemployment, establishing useful scenarios had furlough policies not been implemented.


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