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1 – 10 of over 1000The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some…
Abstract
Purpose
The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.
Design/methodology/approach
The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.
Findings
The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.
Originality/value
In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.
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There are many factors that determine consumers’ satisfaction. Specifically, the current study examines how political-economic views affect the perception of public services. This…
Abstract
Purpose
There are many factors that determine consumers’ satisfaction. Specifically, the current study examines how political-economic views affect the perception of public services. This study also aims to extend the relationship between public service satisfaction and political-economic opinion from an empirical perspective.
Design/methodology/approach
The analysis process is carried out with the Microdataset of the Life Satisfaction Survey. Independent sample t-test which compares individual public service satisfaction ratings and ordinal probit regression models assesses the impacts of political-economic attitude on public service satisfaction.
Findings
According to the findings, household size and gender impact public service satisfaction. Again, service satisfaction diminishes as the education level rises. Moreover, a person’s political-economic view affects their public service satisfaction. The study has the potential to literature in terms of determining society’s political-economic view on public services with these empirical results.
Research limitations/implications
The study’s use of the state as a point of reference and quantitative and qualitative evaluation of the service exchange between the citizen and the state is a significant difference in the literature. Also, unlike the other studies, this one used microdata to test the relationship between the political-economic type and the level of satisfaction with public services at different levels. It is thought that future studies on the determinants of public service satisfaction, to be carried out in different country samples, will contribute to the field.
Practical implications
This study has implications on whether the perception of public service varies according to partisanship status.
Social implications
This study has implications on whether the perception of public service varies according to partisanship status.
Originality/value
This study determines the interaction between the political-economic typology derived from microdata and the satisfaction level variables related to public services offered at different levels. It also evaluates how public service satisfaction differs regarding personality traits and political-economic attitudes.
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Zhihao Qin, Menglin Cui, Jiaqi Yan and Jie Niu
This paper aims to examine whether managerial sentiment, extracted from annual reports, is associated with corporate risk-taking in the context of Chinese companies. This study…
Abstract
Purpose
This paper aims to examine whether managerial sentiment, extracted from annual reports, is associated with corporate risk-taking in the context of Chinese companies. This study expands the vein of literature on overconfidence theory.
Design/methodology/approach
By leveraging textual analysis on Chinese listed companies’ annual reports, the authors construct firm-level managerial sentiment during 2007 and 2021 to examine how managerial sentiment influences corporate risk-taking after control for firm characteristics. Corporate risk-taking is denoted by corporate investment engagements: capital expenditures and net fixed asset investment.
Findings
Results show that incentives for corporate risk-taking are likely to increase with the positive managerial sentiment and decrease with the negative sentiment in companies’ annual reports. Positive managerial sentiment is associated with over-/under-investment and low/high investment efficiency. Further additional tests show that the managerial sentiment effect only holds during low economic uncertain years and samples of private-owned firms. Furthermore, the robust tests indicate that there is no endogenous issue between managerial sentiment and corporate risk-taking.
Research limitations/implications
Annual report textual-based managerial sentiment may not perfectly reflect managers’ lower frequency sentiment (e.g. weekly, monthly and quarterly sentiment). Future studies could attempt to capture managers’ on-time sentiment by using media sources and corporate disclosures.
Practical implications
To the best of the authors’ knowledge, this paper is the first research to provide insights into supervising managers’ corporate decisions by observing their textual information usage in corporate disclosure. Moreover, the approach of measuring managerial sentiment might be a solution to monitoring managerial class.
Originality/value
This paper contributes to the literature on accounting and finance studies, adding another piece of empirical evidence on content analysis by examining a unique language and institutional context (i.e. China). Besides, the paper notes that in line with the English version disclosure, based on Chinese semantic words, managerial sentiment in the Chinese-speaking world has magnitude on corporate decisions. The research provides insights into supervising managers’ corporate decisions by observing their textual information usage in corporate disclosure. Moreover, the approach to measuring managerial sentiment may be a practical solution to monitoring managerial class.
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Jia Jia Chang, Zhi Jun Hu and Changxiu Liu
In this study, a dynamic contracting model is developed between a venture capitalist (VC) and an entrepreneur (EN) to explore the influence of asymmetric beliefs regarding…
Abstract
Purpose
In this study, a dynamic contracting model is developed between a venture capitalist (VC) and an entrepreneur (EN) to explore the influence of asymmetric beliefs regarding output-relevant parameters, agency conflicts and complementarity on the VC's posterior beliefs through the EN's unobservable effort choices to influence the optimal dynamic contract.
Design/methodology/approach
The authors construct the contracting model by incorporating the VC's effort, which is ignored in most studies. Using backward induction and a discrete-time approximation approach, the authors solve the continuous-time contract design problem, which evolves into a nonlinear ordinary differential equation (ODE).
Findings
The optimal equity share that the VC provides to the EN decreases over time. In accordance with the empirical evidence, the EN's optimistic beliefs regarding the project's profitability positively affect its equity share. However, the interactions between the optimal equity share, project risk and both partners' degrees of risk aversion are not monotonic. Moreover, the authors find that the optimal equity share increases with the degree of complementarity, which indicates that the EN is willing to cooperate with the VC. This study’s results also show that the optimal equity shares at each time are interdependent if the VC is risk-averse and independent if the VC is risk-neutral.
Research limitations/implications
In conclusion, the authors highlight two potential directions for future research. First, the authors only considered a single VC, whereas in practice, a risk project may be carried out by multiple VCs, and it is interesting to discuss how the degree of complementarity affects the number of VCs that ENs contract. Second, the authors may introduce jumps and consider more general multivariate stochastic volatility models for output dynamics and analyze the characteristics of the optimal contracts. Third, further research can deal with other forms of discretionary output functions concerning complementarity, such as Cobb–Douglas and constant elasticity of substitution (See Varian, 1992).
Social implications
The results of this study have several implications. First, it offers a novel approach to designing dynamic contracts that are specific and easy to operate. To improve the complicated venture investment situation and abate conflict between contractual parties, this study plays a good reference role. Second, the synergy effect proposed in this study provides a theoretical explanation for the executive compensation puzzle in economics, in which managers are often “rewarded for luck” (Bertrand and Mullainathan, 2001; Wu et al., 2018). This result indicates a realistic perspective on financing and establishing cooperative relationships, which enhances the efficiency of venture investment. Third, from an empirical standpoint, one can apply this framework to study research and development (R&D) problems.
Originality/value
First, the authors introduce asymmetric beliefs and Bayesian learning to study the dynamic contract design problem and discuss their effects on equity share. Second, the authors incorporate the VC's effort into the contracting problem, and analyze the synergistic effect of effort complementarity on the optimal dynamic contract.
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Vojtěch Koňařík, Zuzana Kučerová and Daniel Pakši
Inflation expectations are an important part of the transmission mechanism of the inflation targeting regime. As such, central bankers must study the inflation expectations of…
Abstract
Inflation expectations are an important part of the transmission mechanism of the inflation targeting regime. As such, central bankers must study the inflation expectations of economic agents to anchor them close to the level of the inflation target. However, economic agents are affected by the past and current macroeconomic situation when they form their expectations concerning future inflation. Using survey data on inflation expectations in Czechia, we investigate the macroeconomic determinants of Czech analysts' and managers' inflation expectations. We find that both actual and past inflation have a substantial impact on inflation expectations of the agents surveyed. We also identify backward-looking behaviour among these agents: persistence in inflation expectations of up to two quarters was detected. Moreover, financial analysts formed inflation expectations more in line with economic theory, while company managers evinced expectations similar to those of consumers.
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Emmanuel C. Mamatzakis, Lorenzo Neri and Antonella Russo
This study aims to examine the impact of national culture on classification shifting in Eastern European Member States of EU Eastern European countries (EEU) vis-à-vis the Western…
Abstract
Purpose
This study aims to examine the impact of national culture on classification shifting in Eastern European Member States of EU Eastern European countries (EEU) vis-à-vis the Western Member States of EU (WEU). The EEU provides a unique sample to study the quality of financial reporting that the authors measure with classification shifting given that for more than five decades they were following the model of a centrally planned economy, where market-based financial reporting was absent. Yet, the EEU transitioned to a market-based economy and completed its accession to the EU.
Design/methodology/approach
This study uses a panel data set of firm year observations from 1996 and 2020 that covers the full transition of EEU. This empirical analysis is based on fixed effects panel regression analysis where the authors report a plethora of identifications.
Findings
This study finds classification shifting in the EEU countries since their transition to the market-based economy, though they have no long record of market-based financial reporting. This study also notices that cultural factors are associated with classification shifting across all Member States of the EU. This study further examines the impact of interactions between cultural characteristics and special items and reveal variability between WEU and EEU. As part of the robustness analysis, this study also tests the impact of culture on real earnings management measures for both WEU vs EEU, confirming the variability of the impact of culture on earnings management.
Research limitations/implications
Future research could explore the role of religion differences in WEU vis-à-vis EEU states, as they are also subject to cultural differences.
Practical implications
The findings are important for regulators, external monitors and investors, as they show that cultural factors affect earnings management with some variability across countries in the EU, and they should be acknowledged in policymaking.
Social implications
The findings show that cultural differences between EEU and the “old” Member States of the EU could explain classification shifting.
Originality/value
To the best of the authors’ knowledge, this is the first study that sheds light on the impact of national culture on classification shifting in EEU of EU vis-à-vis the “old” WEU of EU.
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Manar Aslan and Eylem Paslı Gürdoğan
Equality is a basic human right. However, LGBTQ individuals often have their human rights violated because of their gender identity or sexual orientation. They also experience…
Abstract
Purpose
Equality is a basic human right. However, LGBTQ individuals often have their human rights violated because of their gender identity or sexual orientation. They also experience discrimination because of homophobic and transphobic attitudes. They frequently deal with derisive attitudes at school, are discriminated against in the workplace and struggle to access health services. This paper aims to determine the discriminatory attitudes of nurses in their social and professional lives toward LGBTQ individuals.
Design/methodology/approach
This study involved 503 nurses and used a questionnaire to examine their views regarding members of the LGBTQ community. The questionnaire consisted of 24 questions. Ten experts from the fields of social psychology, sociology, and nursing provided the necessary inputs, which were subsequently incorporated into the questionnaire.
Findings
The nurses were found to have a negative attitude toward LGBTQ individuals; they felt that they should not be allowed to live in comfort in Turkey and that they disrupted the social order and compromised public morality. It was observed that married (in general), male (in particular), and have fewer nursing education nurses are much more likely to have a discriminatory attitude toward LGBTQ people, and they were more discriminatory in their society rather than in their professional lives.
Originality/value
According to the principles of justice and equality, which are a prominent part of the nursing code of ethics – “With the awareness that all people have equal rights, the nurse serves regardless of race, language, religion, age, gender, belief, social and economic status and political opinion” – nurses should not have a discriminatory attitude. This study reveals the inequality and the ethical problems that riddle Turkey’s health sector.
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Sherry Lee Finney and Megan Penney
Information for this case was gained first-hand as the case authors are also the protagonists. Care was taken to ensure case material was presented in an unbiased and accurate…
Abstract
Research methodology
Information for this case was gained first-hand as the case authors are also the protagonists. Care was taken to ensure case material was presented in an unbiased and accurate manner.
Case overview/synopsis
Sherry Finney, co-manager and partner at Escape Outdoors (EO), North Sydney, Nova Scotia, has just about completed a social media campaign collaboration with Cape Breton outdoor influencers, Davey and Sky. This was the company’s first collaboration with social influencers, and EO had done it to increase their follower base, particularly on Instagram. Defining measures of success was the task now facing Finney and her Sales and Marketing Assistant, Megan Penney. The campaign costs were in the range of $500, and if EO were to do this campaign again, they needed to understand the pros and cons and if it was a success. The campaign would end in a few days, and before it was finalized, Finney and Penney had to decide what final metrics would be required for evaluation and, specifically, how the campaign would be evaluated.
Complexity academic level
This case is intended for courses in social media marketing, marketing management, marketing analytics, digital marketing or entrepreneurship. The typical user of this case will be an undergraduate or graduate business student who has completed an introductory marketing concepts course.
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Govinda Prasad Dhungana, Dwij Raj Bhatta and Wei-Hong Zhang
Family planning (FP) services through the lens of human rights are not well known in Nepal. This study aims to assess Family Planning 2020: Rights and Empowerment Principles for…
Abstract
Purpose
Family planning (FP) services through the lens of human rights are not well known in Nepal. This study aims to assess Family Planning 2020: Rights and Empowerment Principles for Family Planning and identify factors affecting contraceptive use among HIV-infected women living in rural Far Western Nepal.
Design/methodology/approach
This study conducted a cross-sectional survey using self-designed proforma. To assess the association between contraceptive use and independent variables, this study calculated adjusted odd ratio (AOR) with 95% confidence interval (CI) using statistical package for social sciences (SPSS) V.20.
Findings
Only 37.8% of participants had access to full range of contraceptive methods, and only 57.5% of participants received proper counseling. Agency/autonomy, transparency/accountability and voice/participation were practiced by 43.7%, 23.4% and 19.7% of participants, respectively. Husband’s support (AOR = 4.263; 95% CI: 1.640–11.086), availability of FP services in their locality (AOR = 2.497; 95% CI: 1.311–4.754), employment (AOR = 3.499; 95% CI: 1.186–10.328) and postpartum period (AOR = 0.103; 95% CI: 0.023–0.475) were significantly associated with contraceptive use.
Research limitations/implications
Health-care providers’ and program managers’ perspectives were not examined.
Practical implications
Findings of this study will be useful for making strategic plan on human rights-based approach to FP.
Social implications
Expanding access to contraceptive information and services and strengthening autonomy, accountability and participation are key to human rights-based approach to FP.
Originality/value
This study identified that inadequate counselling, nonavailability of full range of contraceptive methods, low level of autonomy, accountability and participation were key bottlenecks in fulfilling human rights-based approach to FP.
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