scholarly journals When the Poor Buy the Rich: New Evidence on Wealth Effects of Cross-Border Acquisitions

2019 ◽  
Vol 12 (2) ◽  
pp. 102
Author(s):  
Hong-Hai Ho ◽  
Thi-Hanh Vu ◽  
Ngoc-Tien Dao ◽  
Manh-Tung Ho ◽  
Quan-Hoang Vuong
Keyword(s):  
Emerging Markets ◽  
Wealth Effects ◽  
Long Term Effects ◽  
Negative Effects ◽  
Positive Effects ◽  
Cross Border ◽  
The Poor ◽  
Long Run ◽  
The Rich ◽  
Merging And Acquisition

The growing trend of merging and acquisition (M&A) investments from emerging to developed market economies over the last two decades motivates the question on the long-run effects of M&A on the wealth of emerging markets. This paper contributes to the current literature on cross-border M&A (CBMA) by focusing on the long-term effects of this event on the bidder’s stock return in emerging markets. To address the challenges of finding an accurate measure for the effects, this study applies the propensity score matching framework in tandem with difference-in-differences (DID) on a comprehensive dataset over the 1990–2010 period. The analyses show evidence of systematic detrimental impacts of cross-border M&A on shareholders’ welfare in the long run, to a certain extent, diverging from the existing literature, which mainly highlights the positive effects for certain types of M&A. The striking finding is that such strong negative effects remain persistent even when various factors previously known as capable of suppressing underperformance are considered. Our study is in line with the growing landscape of cross-border mergers and acquisitions from the “poor” to the “rich” countries.

Millionaires or Job Creators: What Really Happens to Employment Growth When You Stick It to the Rich?

2017 ◽  
Vol 47 (1) ◽  
pp. 112-141
Author(s):  
Ahiteme N. Houndonougbo ◽  
Matthew N. Murray
Keyword(s):  
Employment Growth ◽  
Estimation Methods ◽  
Negative Effects ◽  
Vector Autoregressive ◽  
Positive Effects ◽  
Long Run ◽  
The Us ◽  
Short Run ◽  
The Rich ◽  
Tax Changes

We provide empirical evidence on the consequences of relatively higher tax burdens on the rich for aggregate employment growth using a newly constructed time series for 1947 through 2011 derived from the US Statistics of Income. In response to shifts in the relative federal tax burden toward the rich, we find statistically significant positive effects on employment growth in the short run and some evidence of negative effects on employment growth in the long run. Among our robustness checks, we use the Romer and Romer narrative record analysis to restrict our sample to a period of exclusively exogenous tax changes. The results hold in the restricted sample and are also consistent across alternative specifications and estimation methods, including unrestricted and Bayesian vector autoregressive.

Undesirable Effects of Goal Setting on Perceived Fairness, Commitment, and Unethical Behavior

2018 ◽  
Vol 62 (2) ◽  
pp. 97-107 ◽  
Author(s):  
Nina Keith
Keyword(s):  
Goal Setting ◽  
Unethical Behavior ◽  
The United States ◽  
Goal Commitment ◽  
Management Technique ◽  
Long Term Effects ◽  
Perceived Fairness ◽  
Negative Effects ◽  
Positive Effects ◽  
And Performance

Abstract. The positive effects of goal setting on motivation and performance are among the most established findings of industrial–organizational psychology. Accordingly, goal setting is a common management technique. Lately, however, potential negative effects of goal-setting, for example, on unethical behavior, are increasingly being discussed. This research replicates and extends a laboratory experiment conducted in the United States. In one of three goal conditions (do-your-best goals, consistently high goals, increasingly high goals), 101 participants worked on a search task in five rounds. Half of them (transparency yes/no) were informed at the outset about goal development. We did not find the expected effects on unethical behavior but medium-to-large effects on subjective variables: Perceived fairness of goals and goal commitment were least favorable in the increasing-goal condition, particularly in later goal rounds. Results indicate that when designing goal-setting interventions, organizations may consider potential undesirable long-term effects.

scholarly journals Microfinance Institutions and Financial Sector Growth in Nigeria (1992-2018)

2021 ◽  
Author(s):  
Emmanuel Abiodun Ayodeji ◽  
Adebayo Tunbosun Ogundipe
Keyword(s):  
Secondary Data ◽  
Financial Sector ◽  
Variable Coefficients ◽  
Model Specification ◽  
Microfinance Institutions ◽  
Negative Effects ◽  
Positive Effects ◽  
Distributed Lag ◽  
Long Run ◽  
Bound Test

Abstract The extent to which microfinance bank institutions have contributed to the financial sector growth has not been well unraveled in the extant literature in Nigeria, hence, this study examined the effects of microfinance banks on financial sector growth in Nigeria. It further investigated the dynamic form of relationship between microfinance banks and financial sector growth in Nigeria covering a temporal scope 1992 to 2018. The model specification was formulated using financial sector GDP as the proxy for dependent variable, microfinance credit, deposits, assets and investment were used as proxies for microfinance banks institutions. Secondary data were sourced from CBN statistical Bulletin and analyzed using auto regressive distributed lag bound test and its corresponding short and long run coefficients. Finding revealed an inconclusive long run relationship between microfinance bank institutions and financial sector growth. Checking the individual variable coefficients in the short run, microfinance credit has significant positive effect while microfinance assets has insignificant effects on financial sector growth. In the long run, it was revealed that microfinance bank deposits and assets exert insignificant positive effects while microfinance credits have insignificant effect and investments have significant negative effects on financial sector growth. The study concluded that, in the long run, microfinance bank institutions exert positive and insignificant effects on financial sector growth in Nigeria. It was therefore recommended that, for microfinance bank institutions to impact significantly on financial sector growth in Nigeria, its credit should be increased and be more directed to the target individuals and the level of their investments should be geared up so as to engender growth of the financial sector in Nigeria. Furthermore, microfinance bank institutions should maintain its status quo on deposits and assets, however, improvement on them should be encouraged so as to enhance the growth of the financial sector in Nigeria

scholarly journals Expanding the Utility of Race-Based Accountability: An Application of RBA to Longitudinal Data Analyses

2018 ◽  
Vol 9 (1) ◽  
pp. 60-79
Author(s):  
Andrea L. Ruiz ◽  
Gabriel A. Acevedo ◽  
Raquel R. Marquez ◽  
Marcos Marquez
Keyword(s):  
Mental Health ◽  
Social Support ◽  
Health Outcomes ◽  
Childhood Abuse ◽  
Protective Factor ◽  
Mental Health Outcomes ◽  
Long Term Effects ◽  
Negative Effects ◽  
Positive Effects ◽  
Adult Mental Health

Despite the strong empirical evidence linking childhood abuse to negative mental health outcomes later in life, a number of questions remain regarding race variations in this association. Moreover, less is known about the salience of protective factors that can offset or ameliorate the negative effects of abuse on adult mental health, and whether these factors work differently by race. Using three waves of panel data from a nationally representative survey of American adults, the present study examined the long-term effects of childhood abuse on adult mental health over a span of 20 years. In addition, we assessed social support as a protective factor, and examined its differential effects on mental health outcomes for Whites and non-Whites. Results indicate that despite frequent childhood abuse, social support is associated with less depression for Whites—its positive effects being most pronounced for those with the most severe abuse experiences. However, social support is associated with worst depression for non-Whites—its negative effects being most pronounced for those with severe abuse experiences. These findings demonstrate that the factors commonly considered as protective and beneficial for adult victims of abuse work differently across racial groups and in fact, may be detrimental for non-Whites.

Income Inequality, Life Satisfaction, and Economic Worries

2016 ◽  
Vol 8 (2) ◽  
pp. 133-141 ◽  
Author(s):  
Bettina Roth ◽  
Elisabeth Hahn ◽  
Frank M. Spinath
Keyword(s):  
Life Satisfaction ◽  
Income Inequality ◽  
Middle Class ◽  
Panel Study ◽  
National Level ◽  
Negative Relationship ◽  
Income Disparity ◽  
Negative Effects ◽  
The Poor ◽  
The Rich

We analyzed the effect of income inequality on Germans’ life satisfaction considering factors explaining the mechanism of this relationship. Based on data from the German Socio-Economic Panel Study for the years 1984 to 2012, we found a negative relationship between national-level income disparity and average life satisfaction, meaning that people felt happier in years with lower inequality. The effect was completely mediated by economic worries, which increased with rising inequality and in turn reduced people’s satisfaction. However, people’s reaction to inequality depended on their income level: Considering the direct effect of inequality, higher income disparity was clearly detrimental only for the poor and the middle class. Moreover, we found a significant mediation through economic worries for the middle class but not for the poor. The rich showed a more complex pattern of interrelations with both, positive and negative effects of inequality when controlling for economic worries.

scholarly journals Do Exchange Rate Changes have Symmetric or Asymmetric Effects on the Demand for Money in Korea?

2017 ◽  
Vol 9 (2) ◽  
pp. 155-168
Author(s):  
Mohsen Bahmani-Oskooee ◽  
Jungho Baek
Keyword(s):  
Exchange Rate ◽  
Wealth Effects ◽  
Adjustment Process ◽  
Negative Effects ◽  
Demand For Money ◽  
Asymmetric Effects ◽  
Nonlinear Ardl ◽  
Long Run ◽  
The Exchange Rate ◽  
Exchange Rate Changes

Previous studies that included the exchange rate in the Korean demand for money assumed that the effects of the exchange rate changes are symmetric and adjustment process is linear. They found no significant effects. In this paper we apply Shin et al.’s (2014) Nonlinear ARDL approach to cointegration and error-correction modeling and test the symmetric versus asymmetric effects of exchange rate changes on the demand for money in Korea. Using quarterly data over the period 1973-2014, the results show that indeed the effects are asymmetric in the short run. In the long run, however, although the effects are symmetric but both won depreciation and won appreciation have significantly negative effects on the demand for money, supporting the wealth effects argument.

Long-Term Effects of the Targeting the Ultra Poor Program

2021 ◽  
Vol 3 (4) ◽  
pp. 471-486
Author(s):  
Abhijit Banerjee ◽  
Esther Duflo ◽  
Garima Sharma
Keyword(s):  
Controlled Trial ◽  
Main Channel ◽  
Long Term Effects ◽  
Positive Effects ◽  
Randomized Controlled ◽  
Long Run ◽  
Asset Transfer ◽  
Wage Employment ◽  
Big Push

This paper studies the long-run effects of a “ big-push” program providing a large asset transfer to the poorest Indian households. In a randomized controlled trial that follows these households over ten years, we find positive effects on consumption (0.6 SD), food security (0.1 SD), income (0.3 SD), and health (0.2 SD). These effects grow for the first seven years following the transfer and persist until year ten. One main channel for persistence is that treated households take better advantage of opportunities to diversify into more lucrative wage employment, especially through migration. (JEL I32, I38, J22, J31, O12, O18)

scholarly journals Trade Openness and Economic Growth in Canada: An Evidence from Time-Series Tests

2015 ◽  
Vol 15 (3) ◽  
pp. 361-407 ◽  
Author(s):  
Tarlok Singh
Keyword(s):  
Economic Growth ◽  
Null Hypothesis ◽  
Structural Breaks ◽  
Trade Openness ◽  
Single Equation ◽  
Negative Effects ◽  
Positive Effects ◽  
Long Run ◽  
Trade And Investment ◽  
Consistent Support

This study examines the effects of international trade and investment on output and tests the null hypothesis of Granger non-causality among trade, investment and economic growth in Canada. The long-run model is estimated using several single-equation and system estimators to assess the robustness of results across methodologies. The single-equation, OLSEG, GMM, DOLS, NLLS and FMOLS, estimates of the model provide consistent support for the positive and significant long-run effects of exports and investment on output. The ML system estimates cross-validate the cointegrating relationship and reinforce the positive effects of exports and investment and the negative effects of imports on output. The over-parameterized level-VAR estimates suggest unidirectional Granger-causality from exports, imports and investment each to output. The estimates of the model with structural breaks support the long-run relationship, though the evidence is not unambiguous ubiquitously across all the tests. The evidence supporting the positive and significant long-run effects overwhelms the evidence providing weak or no support for the effects of trade on output. The results underline the need for the acceleration of exports (and investment) to offset the demand-reducing effects of imports and escalate the altitudes of output and economic growth.

scholarly journals Offshoring in a Ricardian World

2010 ◽  
Vol 2 (2) ◽  
pp. 227-258 ◽  
Author(s):  
Andrés Rodríguez-Clare
Keyword(s):  
Poor Country ◽  
Rich Country ◽  
Poor Countries ◽  
The Poor ◽  
Long Run ◽  
Ricardian Model ◽  
Short Run ◽  
Aggregate Effects ◽  
The Rich

This paper proposes a Ricardian model to understand the short-run and long-run aggregate effects of increased fragmentation and offshoring on rich and poor countries. The short-run analysis shows that, when offshoring is sufficiently high, further increases in offshoring benefit the poor country and hurt the rich country. But these effects may be reversed in the long run as countries adjust their research efforts in response to increased offshoring. In particular, in the long run, the rich country always gains from increased offshoring, whereas poor countries see their static gains partially eroded by a decline in their research efforts. (JEL F12, F23, L24, M16)

scholarly journals NAFTA, Social Unionism, and Labour Movement Power in Canada and the United States

2005 ◽  
Vol 49 (4) ◽  
pp. 657-695 ◽  
Author(s):  
Ian Robinson
Keyword(s):  
United States ◽  
Trade Agreement ◽  
The United States ◽  
Negative Effects ◽  
Labour Movement ◽  
Positive Effects ◽  
The North ◽  
Long Run ◽  
Short Run ◽  
Negative Impacts

This paper considers how the North American Free Trade Agreement (NAFTA) is likely to affect labour movement power in Canada and the United States. The paper is divided into four parts. It first defines the concept of « labour movement power », breaking it down into its component parts. It next considers why we should care about what happens to labour movement power. It then outlines the principal negative and positive effects that the NAFTA is likely to have on labour movement power. Attention is also given to the beneficial consequences that the fight against the NAFTA has already had for the labour movement. It is argued that the NAFTA 's negative impacts are likely to outweight its positive ones in the short run and that the positive effects could substantially outweight its negative effects over the medium to long run. Whether it does will depend upon choices made in the next few years by labour movement leaders and activists.

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