Evidence from 1992 to 2019 on the dynamics of managerial authority and CEO remuneration during company crises

We investigate the dynamics of two governance constructs, management influence over the board of directors and CEO remuneration, in enterprises in crisis from 1992 to 2019. Data reveal a strong trend of improving governance over time, which confounds the conclusion concerning the impact of distress on governance. Using a bias-corrected matching estimator to control for secular trends, we find that distressed businesses cut management board appointments and CEO compensation, deepen managerial incentive alignment, and increase CEO turnover. The performance-related component of CEO remuneration accounts for the majority of changes in CEO compensation in troubled businesses, which is consistent with the "shareholder value" perspective on CEO compensation.

Assessing emerging beef farmers participation in high-value market and its impact on cattle sales in South Africa

The participation of emerging farmers in high-value agricultural markets in South Africa cannot be over-emphasized. It is one of the objectives of the government to assist emerging farmers with the necessary resources and programmes to enable them to meet the requirements and participate in high-value markets. The study investigated the impact of participation in the high-value market on cattle production (cattle sold). A systematic random probabilistic sampling technique was used to obtain a sample of 55 emerging beef farmers. Interviews were undertaken using questionnaires to collect data. Descriptive statistics and econometric methods such as Tobit model and a treatment effect model using propensity score matching estimator were employed for the data analysis. The results of binary logit regression from the PSM revealed that participation in a high-value market was significantly affected by age, household size, years of farming and difficulty accessing a high-value market. The average treatment effect of the treated showed a negative impact and decreases the number of cattle sold by 58%. The recommendations informed by the findings from the study are that youth in the study area should be involved in beef farming, appropriate training should be given to the farmers and farmer's advisor should motivate farmers to sell more cattle and participate in a high-value market, and educate them about the requirements to participate in the high value markets. The DARD lease assistance should continue and include the lease of more land. Int. J. Agril. Res. Innov. Tech. 11(2): 27-36, Dec 2021

Willingness to Pay for Wine Bullshit: Some New Estimates

As part of a classic article in this journal, Richard Quandt identified 123 wine descriptors that he deemed to be bullshit. In this paper, I examine whether wine consumers are willing to pay any more (or less) for wine if it is described by one of those “bullshit” descriptors. I use three methods to examine that. The first method involves applying a hedonic regression to a dataset of prices and expert descriptions for about 50,000 wines. The second method involves applying a matching estimator to the same dataset. The third method involves a stated-preference survey of about 500 wine consumers. The three methods suggest that for most of the descriptors Quandt deemed to be bullshit, most consumers’ marginal willingness to pay for a descriptor is zero or near-zero. Yet, for some of the descriptors, some consumers do seem to have a non-zero marginal willingness to pay, perhaps because the descriptors shape a consumer's subjective experience or because they signal objective aspects of wine. (JEL Classifications: D12, D83, L66)

Implementing blopmatching in Stata

The blopmatching estimator for average treatment effects in observational studies is a nonparametric matching estimator proposed by Díaz, Rau, and Rivera (2015, Review of Economics and Statistics 97: 803–812). This approach uses the solutions of linear programming problems to build the weighting schemes that are used to impute the missing potential outcomes. In this article, we describe blopmatch, a new command that implements these estimators.

Like a stone thrown into a pond – poverty contrast of an emporium of solidarity

PurposeThis paper highlights to what extent an emporium of solidarity may affect poverty conditions of its recipients, and whether it generates net social benefits to different actors involved.Design/methodology/approachTo evaluate the effect of an emporium of solidarity project on poverty conditions of its recipients, we run Probit estimation models. As for the efficiency evaluation, we develop instead a social cost–benefit framework which considers benefits and costs to different actors somehow involved in the program. Results are based on survey data collected by the authors and administrative data.FindingsUsing the emporium attendance length as a measure of the treatment intensity, results underscore that the emporium significantly reduces the monetary poverty only, while it is ineffective on the severe material deprivation. The robustness of our results is confirmed by the implementation of a propensity score matching estimator. Our study suggests that emporia can be efficient in term of resources usage and they can determine positive returns to actors involved, implementing a redistribution of goods toward poor households.Research limitations/implicationsThe paper and its conclusions are based on a case study, thus an Italian emporium called “Portobello” and located in the inner-city area of Modena (Emilia-Romagna region, Italy).Originality/valueThe main novelty of our paper to the literature consists of the elaboration of a first comprehensive framework for the social impact assessment of an emporium of solidarity, regarding both its effects on socio-economic conditions of poor recipient households and its contribution to the local welfare as a whole.

The Effect of Regulatory Constraints on Fund Performance: New Evidence from UCITS Hedge Funds*

This article examines the effect of regulatory constraints on fund performance and risk by comparing conventional and UCITS hedge funds. Using a matching estimator approach, we estimate the indirect cost of UCITS regulation to be between 1.06% and 4.05% per annum in terms of risk-adjusted returns. These performance differences are likely to stem from UCITS constraints such as those governing eligible assets, diversification, and short selling, and cannot be explained by differences in redemption terms or level of leverage. We confirm that our performance results are not driven by management company characteristics, fund manager characteristics, or unobserved confounder bias.