Economics and Politics of Russian Bankruptcies

2004 ◽  
pp. 118-135 ◽  
Author(s):  
E. Zhuravskaya ◽  
K. Sonin
Keyword(s):  
Transition Economy ◽  
Budget Constraint ◽  
Bankruptcy Law ◽  
Political Elites ◽  
Firm Level ◽  
Level Data ◽  
Day To Day Operations ◽  
Unexpected Outcomes ◽  
Economics And Politics

Laws that work well in developed market economies may produce unexpected outcomes in a corrupt environment. Once a legal institution is formally in place, it might be subverted by those who control its day-to-day operations. This paper focuses on the institution of bankruptcy to provide a case study of institutional subversion in a transition economy. The firm-level data analysis shows that Russia's bankruptcy law of 1998 did not result in improving managerial budget constraint. Instead of removing weak management and closing down loss-making enterprises as intended, it initiated a wave of inefficient property redistribution controlled by regional political elites.

scholarly journals The formation of Coasean institutions to provide university knowledge for innovation: a case study and econometric evidence for Switzerland

2020 ◽  
Author(s):  
Dominique Foray ◽  
Martin Woerter
Keyword(s):  
Innovation Performance ◽  
Institutional Setting ◽  
Firm Level ◽  
General Validity ◽  
Level Data ◽  
Econometric Evidence ◽  
Innovative Products ◽  
Type Of Institution ◽  
The Relationship

Abstract “Coasean” institutions are an alternative institutional form that provides a solution to some market and coordination failures. As such they can weaken considerably the case for public subsidies in a vast range of context. They are “market-based” and an inexpensive way to address the public good issues of R&D. They are, however, a largely overlooked institutional option. Early theoretical notions emphasize the advantages of such an institutional setting, however, broader empirical evidence about their effectiveness is lacking. We apply two different empirical approaches to assess the relationship between “Coasean” institutions and the innovation performance of SMEs. In a case study, we investigate Inspire AG, a successful bottom-up, institutional invention in the spirit of a “Coasean” institution. To assess the general validity of this model, we use representative firm-level data to econometrically investigate the relationship between “Coasean” institutions and the sales share of innovative products. “Coasean” institutions are positively related with innovative sales only if the company has a sufficiently large absorptive capacity for external knowledge. This positive moderating effect of “Coasean” institutions for the innovation performance is larger for SMEs. Our empirical findings provide a strong case for policies aimed at encouraging the operation of this type of institution.

Firm-Level Economic Activity Before, During, and After Local Events: A Case Study

2020 ◽  
Vol 21 (4) ◽  
pp. 327-334 ◽  
Author(s):  
Craig A. Depken ◽  
Benjamin L. Fore
Keyword(s):  
Economic Activity ◽  
National Football League ◽  
Future Research ◽  
Firm Level ◽  
Level Data ◽  
National Convention ◽  
Firm Level Data ◽  
Convention Center ◽  
Center City

This case study investigates how various sporting and cultural events impact economic activity at a single full-service restaurant in center-city Charlotte, NC. We find no evidence of significant changes in daily revenue, customers served, and revenue per customer on the day before, day of, and day after many of the events. The exceptions are National Football League (NFL) home games, swimming events, events at the Charlotte Convention Center, the 2012 Democratic National Convention, NASCAR races, PGA tournaments, and entertainment events at the Spectrum Center. The results invite future research using firm-level data to better understand the disparate impact of events on business enterprises.

scholarly journals Minimum Wages: Do They Really Hurt Young People?

2015 ◽  
Vol 15 (1) ◽  
pp. 299-328 ◽  
Author(s):  
Sofía Galán ◽  
Sergio Puente
Keyword(s):  
Young People ◽  
Minimum Wage ◽  
Age Groups ◽  
Firm Level ◽  
Level Data ◽  
Individual Probability ◽  
Large Panel ◽  
Different Types ◽  
The Individual

Abstract This paper uses a significant increase in the minimum wage in Spain between 2004 and 2010 as a case study to analyse the effects on the individual probability of losing employment, using a large panel of social security records. We show that this individual approach is important, as the possible effects for different types of individuals may differ from other estimates in the literature, based on aggregate or firm-level data, hence complementing them. Our main finding is that older people experienced the largest increase in the probability of losing their job, when compared with other age groups, including young people. The intuition is simple: among the affected (low-productivity) workers, young people are expected to increase their productivity more than older ones, who are in the flat part of their life-cycle productivity curve. Consequently, an employer facing a uniform increase in the minimum wage may find it profitable to retain young employees and to fire older ones.

The platform economy matures: measuring pervasiveness and exploring power

2021 ◽  
Author(s):  
Martin Kenney ◽  
Dafna Bearson ◽  
John Zysman
Keyword(s):  
Classification System ◽  
Service Industries ◽  
Macro Level ◽  
Future Research ◽  
American Industry ◽  
Firm Level ◽  
Online Platforms ◽  
Level Data ◽  
Platform Economy

Abstract Online platforms are pervasive and powerful in today’s economy. We explore the increased centrality of platforms in two ways. First, we measure the extent to which platforms are insinuating themselves into the economy. We accomplish this by analyzing the presence of platforms as intermediating organizations across all US service industries at the six-digit North American Industry Classification System code level. Our results show that 70% of service industries, representing over 5.2 million establishments, are potentially affected by one or more platforms. Secondly, we undertake a detailed firm-level case study of the mega-platform, Amazon, which demonstrates the ways that the aforementioned macro-level data is expressed by a single platform firm. This case study shows that Amazon’s growth trajectory has resulted in it entering and transforming existing industries and sectors. We conclude by reflecting upon the limitations and implications for future research.

scholarly journals Governing the gold rush into emerging markets: a case study of Indonesia’s regulatory responses to the expansion of Chinese-backed online P2P lending

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Angela Tritto ◽  
Yujia He ◽  
Victoria Amanda Junaedi
Keyword(s):  
Emerging Markets ◽  
Gold Rush ◽  
Financial Inclusion ◽  
High Tech ◽  
Business Practices ◽  
Firm Level ◽  
Proactive Approach ◽  
Level Data ◽  
P2p Lending

AbstractPeer-to-peer (P2P) lending has the potential to boost financial inclusion in emerging markets. This paper contributes to the literature on fintech governance in emerging Asian markets. It examines the case of the Indonesian government’s approach in regulating the P2P lending sector using both primary interviews and secondary firm-level data. Driven by regulation tightening in China and regulatory gaps in Indonesia, Chinese investments became the largest in this sector contributing, however, to growing risks from illegal business practices. The Indonesian government responded by creating new regulations and institutions, mitigating risks without stifling the potential for financial inclusion. We conclude a proactive approach towards monitoring and regulating emerging high-tech industries should be sought by strengthening links with industry and civil society, and through international cooperation for policy and knowledge sharing.

Implicit Taxes Amid Race to the Bottom in a Global Tax Game

2020 ◽  
Vol 27 (2) ◽  
pp. 42
Author(s):  
Igor Semenenko ◽  
Junwook Yoo ◽  
Parporn Akathaporn
Keyword(s):  
Capital Mobility ◽  
Tax Rates ◽  
Corporate Tax ◽  
Firm Level ◽  
Race To The Bottom ◽  
Tax Subsidy ◽  
Tax Subsidies ◽  
Level Data ◽  
Tax Returns ◽  
Tax Hypothesis

Growing tax competition among national governments in the presence of capital mobility distorts equilibrium in the international corporate tax market. This paper is related to the literature that examines impact of international tax policies on corporate accounting statements. Employing international firm-level data, this study revisits the race-to-the-bottom hypothesis and documents that tax exemptions lowering effective tax rates relative to statutory rates increase pre-tax returns. This finding directly contradicts the implicit tax hypothesis documented by Wilkie (1992), who provided empirical evidence on inverse relationship between pre-tax return and tax subsidy. We also find evidences that relative importance of permanent versus timing component depends on the geography and that decline in corporate tax rates reduces impact of tax subsidies on profitability. Our findings suggest that tax subsidies play a different role than in 1968-1985, which was examined by Wilkie (1992). These results are consistent with the race-to-the-bottom hypothesis and income shifting explanation

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