Portfolio Entrepreneurs’ Behavior and Performance: A Resource Redeployment Perspective

2021 ◽  
Author(s):  
Simone Santamaria
Keyword(s):  
Selection Effect ◽  
Performance Difference ◽  
Data Set ◽  
Ex Post ◽  
Business Opportunities ◽  
Ex Ante ◽  
New Firm ◽  
And Performance ◽  
Termination Decisions ◽  
Over Time

Prior research suggests portfolio entrepreneurs—businesspeople who run more than one firm simultaneously—launch more successful ventures than their single-business counterparts. However, their ventures are less likely to survive. In an attempt to reconcile this paradox, this paper presents a framework in which portfolio entrepreneurs’ main advantage is not a superior ability to select the best business opportunities ex ante, but rather the ability to redeploy human and capital resources across businesses ex post, which reduces the sunkenness of their investments in new projects. This redeployment option facilitates their exit from new businesses that fail initial market tests. Thus, portfolio entrepreneurs’ heterogeneous termination decisions explain a greater portion of new firm performance differential than ex ante opportunity selection. We test these ideas using a longitudinal data set of more than 5,700 entrepreneurs and find consistent evidence. Portfolio companies do not show systematically higher performance at the time of entry; a performance difference emerges only over time, as the selection effect and resource redeployment occur. This paper was accepted by Ashish Arora, entrepreneurship and innovation.

Competence over Control

2020 ◽  
pp. 78-99
Author(s):  
Alexander Thompson
Keyword(s):  
Security Council ◽  
Ad Hoc ◽  
International Level ◽  
Policy Goals ◽  
Ex Post ◽  
Un Security Council ◽  
Ex Ante ◽  
Over Time

The UN Security Council increasingly authorizes weapons inspections to enforce nonproliferation. These are cases of indirect governance, where the Council (the governor) relies on separate bodies (intermediaries) to conduct inspections in states of concern (targets). Despite the risks, the Council often seems willing to forego control in return for gaining the benefits of a competent intermediary that can address its ambitious policy goals and capability deficits. These cases point to important differences between preexisting intermediaries (such as the IAEA and OPCW) and ad hoc intermediaries created for specific tasks (such as the inspection commissions that operated in Iraq). The latter are far more amendable to control, both ex ante and ex post. Over time, we see increasing goal divergence between the governor and intermediaries, driven mainly by the shifting interests of Security Council members, but we also see the competence of intermediaries increase as they gain on-the-ground experience, making control more difficult. The collective nature of the Security Council further complicates control efforts, creating a temptation for individual members to interfere unilaterally with intermediaries and targets. The analysis suggests that the role of sovereign, strategic targets deserves more attention in the study of indirect governance at the international level.

scholarly journals Screening Stringency in the Disability Insurance Program

2014 ◽  
Vol 14 (3) ◽  
pp. 873-891 ◽  
Author(s):  
Per Johansson ◽  
Lisa Laun ◽  
Tobias Laun
Keyword(s):  
Disability Insurance ◽  
Eligibility Criteria ◽  
Insurance Program ◽  
Ex Post ◽  
Ex Ante ◽  
Over Time

Abstract We propose a strategy for assessing how the inflow to the disability insurance program has been governed over time. Using ex-post mortality, we analyze the ex-ante health of individuals entering the program, compared to individuals not entering the program in the same year. Applying this strategy to Sweden, we find large variation in the relative health of new beneficiaries compared to non-beneficiaries over time. Some of the fluctuations correspond well to formal changes to screening stringency. However, we also find large variation in health during periods when no changes to formal eligibility criteria have been pursued.

Can IMF program design resurrect investor sentiment? An empirical investigation

2019 ◽  
Vol 22 (2) ◽  
pp. 339-382 ◽  
Author(s):  
Krishna Chaitanya Vadlamannati
Keyword(s):  
Empirical Investigation ◽  
Investor Sentiment ◽  
Performance Criteria ◽  
Estimation Methods ◽  
Political Costs ◽  
Ex Post ◽  
Ex Ante ◽  
Imf Programs ◽  
And Performance

AbstractDoes international investor sentiment improve when a crises-ridden country participates in an International Monetary Fund (IMF) program? I argue that merely participating in an IMF program may not revive the sentiments of investors. Rather, investor sentiment would improve when governments enhance the credibility of their commitment to reforms by accepting severe conditions imposed by the IMF, which incur ex ante and ex post political costs. Using panel data on 166 countries during the 1992–2013 period (twenty-two years), I find that countries participating in IMF programs, with conditions attached, specifically prior actions and performance criteria conditions, after controlling for endogeneity concerns using exogeneous instruments, are associated with an increase in long-term investor sentiment. These results are robust to using alternative data, variables and estimation methods. My findings are in stark contrast to those who argue that IMF conditional programs are akin to swallowing a bitter pill. In fact, my results demonstrate that the so-called bitter pill may act as a palliative.

scholarly journals Can investors’ collective decision-making evolve? Evidence from Peer-to-Peer lending markets

2021 ◽  
Author(s):  
Dongwoo Kim
Keyword(s):  
Decision Making ◽  
Predictive Power ◽  
Peer To Peer ◽  
Individual Investors ◽  
Funding Decision ◽  
Ex Post ◽  
Significant Difference ◽  
Ex Ante ◽  
Peer Lending ◽  
Over Time

Abstract This study tries to identify the accuracy of individual investors' capability to predict a borrower’s creditworthiness in peer-to-peer lending markets and examine whether their ability is likely to evolve over time. The results of this study show that there is no significant difference between the predictive power of investors' ex-ante funding decision model and that of the ex-post repayment model over a borrower’s repayment performance. Furthermore, the predictive power of investors' ex-ante funding decision over a borrower’s repayment performance is shown to improve over time . It is also found that the main reason why investors’ predictive power improve over time is because investors can assess more accurately the information provided by the platform operator and describe the borrower's characteristics. The results of this study are important as they confirm the possibility of optimizing and streamlining the P2P lending market, through the evolution of investors’ decision making.

Flip the Switch: The Impact of the Rural Electrification Administration 1935–1940

2015 ◽  
Vol 75 (4) ◽  
pp. 1161-1195 ◽  
Author(s):  
Carl Kitchens ◽  
Price Fishback
Keyword(s):  
The United States ◽  
Crop Productivity ◽  
Rural Electrification ◽  
Land Values ◽  
Local Economies ◽  
Data Set ◽  
Wide Range ◽  
Ex Ante ◽  
The Impact ◽  
Over Time

To isolate the impact of access to electricity on local economies, we examine the impact of the Rural Electrification Administration low-interest loans in the 1930s. The REA provided loans to cooperatives to lay distribution lines to farms and aid in wiring homes. Consequently, the number of rural farm homes electrified doubled in the United States within five years. We develop a panel data set for the 1930s and use changes within counties over time to identify the effect of the REA loans on a wide range of socio-economic measures. The REA loans contributed significantly to increases in crop output and crop productivity and helped stave off declines in overall farm output, productivity, and land values, but they had much smaller effects on nonagricultural parts of the economy. The ex-ante subsidy from the low-interest loans was large, but after the program was completed, nearly all of the loans were fully repaid, and the ultimate cost to the taxpayer was relatively low.

Regulatory Quality and Performance in EU Network Industries: Evidence on Telecommunications, Gas and Electricity

2009 ◽  
Vol 29 (3) ◽  
pp. 347-370 ◽  
Author(s):  
Mehmet Ugur
Keyword(s):  
Best Practice ◽  
Network Industries ◽  
Eu Member States ◽  
Regulatory Quality ◽  
Ex Post ◽  
Ex Ante ◽  
Regulatory Failure ◽  
And Performance ◽  
High Level ◽  
The Relationship

ABSTRACTThis article provides empirical evidence on ex ante and ex post indicators of regulatory quality and the relationship between those indicators and market performance in liberalised EU-15 network industries. It finds a low level of regulatory independence and competence, a high level of cross-country variations in regulatory quality, and widespread absence of correlation between ex ante regulatory quality and ex post performance indicators. On the basis of these findings, it suggests that the design of national regulatory agencies (NRAs) in Europe is not optimal and may be conducive to regulatory ineffectiveness or outright regulatory failure. Nevertheless, the existence and strengthening of EU-level regulators could enable EU member states to reduce the risk of regulatory failure by encouraging coordination and adoption of best practice.

Ex Ante and Ex Post Evaluation of Smart Commute Strategies in the Greater Toronto and Hamilton Area of Canada: Comparison of Aggregate and Disaggregate Approaches

2017 ◽  
Vol 2665 (1) ◽  
pp. 80-89
Author(s):  
Zohreh Rashedi ◽  
Md. Sami Hasnine ◽  
Meaghan Mendonca ◽  
Khandker Nurul Habib
Keyword(s):  
Travel Demand ◽  
Demand Management ◽  
Mixed Logit ◽  
Model Framework ◽  
Cross Sectional ◽  
Data Set ◽  
Travel Demand Management ◽  
Post Evaluation ◽  
Ex Post ◽  
Ex Ante

This study investigated the effectiveness of the Smart Commute program, a well-established travel demand management (TDM) program in the greater Toronto and Hamilton area of Canada. The study exploited a data fusion technique to combine data collected through cross-sectional ex ante and ex post surveys at the workplace of each Smart Commute member. Two types of approaches were used: aggregate statistical analysis and disaggregate choice modeling with the fused-combined data set. The results clarify that aggregate investigation may not always uncover many behavioral details. Aggregate comparisons of the survey data showed that the performance of the Smart Commute program varied by sociodemographic attributes of the employees, including age, employment status, employment shift, and regional municipality of employment. The aggregate investigation also showed that the stated willingness to consider bike, walk, and telework options was not reliable in evaluating the effectiveness of any TDM policy. Complementary to the aggregate investigation, the study used an advanced mixed logit model framework to explore the effects of Smart Commute on commuters’ perceptions about travel attributes. The results of the empirical model revealed more variation in the perceptions of commuters about travel attributes after implementation of TDM interventions. In addition, the perceptions of travel times became more negative after TDM implementation.

Ex-Ante and Ex-Post Performance of Optimal REIT Portfolios

CFA Digest ◽  
2003 ◽  
Vol 33 (3) ◽  
pp. 8-9
Author(s):  
Ann C. Logue
Keyword(s):  
Ex Post ◽  
Ex Ante

Erreurs de prévision ex ante et ex post

1993 ◽  
Vol 108 (2) ◽  
pp. 135-138
Author(s):  
Pierre Malgrange ◽  
Silvia Mira d'Ercole
Keyword(s):  
Ex Post ◽  
Ex Ante
Sign in / Sign up

Export Citation Format

Share Document