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Article
Publication date: 1 January 1993

Michael P. Kidd

Suggests an alternative and computationally simpler approach ofnon‐random sampling of labour economics and represents an observedoutcome of an individual female′s choice…

Abstract

Suggests an alternative and computationally simpler approach of non‐random sampling of labour economics and represents an observed outcome of an individual female′s choice of whether or not to participate in the labour market. Concludes that there is an alternative to the Heckman two‐step estimator.

Details

International Journal of Manpower, vol. 14 no. 1
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 13 November 2018

Nina Gorovaia

The purpose of this paper is to explore the determinants, transactional alignment and performance outcomes of franchise contract length using transaction costs theory…

Abstract

Purpose

The purpose of this paper is to explore the determinants, transactional alignment and performance outcomes of franchise contract length using transaction costs theory (TCT) and resource-based theory (RBT).

Design/methodology/approach

The author hypothesizes that franchisors choose contract length according to TCT and RBT arguments. TCT explains the safeguarding function of contracts: the franchisors will offer longer contracts when franchisees’ specific investments are high and environmental uncertainty is low. RBT highlights the knowledge leverage function of contracts: the franchisors will offer longer contracts when the brand name and intangible knowledge assets are high. Franchise companies that design contract length aligned with transactional attributes will perform better. The author tests the misalignment hypothesis and comparative performance of franchise contracts by estimating two-stage least squares regression and Heckman two-stage procedure that control for endogeneity and self-selection.

Findings

Empirical data from the German franchise sector support the hypotheses. In addition to the safeguarding function, franchise contracts have an important knowledge leverage function. Longer contracts perform better due to the development of relational strategic assets and stronger commitment.

Research limitations/implications

Franchisors must offer longer contracts when specific investments of franchisees, brand name, intangible knowledge assets are high, and environmental uncertainty is low. Franchisors should invest in the development of relational strategic assets and offer longer contracts for the benefit of superior performance.

Originality/value

The study addresses the significant question of transactional alignment and comparative performance of franchise contracts. It empirically confirms the importance of RBT in explaining contractual choices and performance.

Details

International Journal of Retail & Distribution Management, vol. 47 no. 7
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 9 May 2016

Franklin Amuakwa-Mensah, Louis Boakye-Yiadom and William Baah-Boateng

The purpose of this paper is to investigate the effect of education on migration decisions focusing on rural and urban in-migrants by comparing the 2005/2006 and 2012/2013…

Abstract

Purpose

The purpose of this paper is to investigate the effect of education on migration decisions focusing on rural and urban in-migrants by comparing the 2005/2006 and 2012/2013 rounds of the Ghana Living Standards Survey (GLSS5 and GLSS6). After correcting for selectivity bias, the authors observed that anticipated welfare gain and socio-economic variables such as sector of employment, sex, experience, age, educational level and marital status significantly affect an individual’s migration decision.

Design/methodology/approach

The authors made use of Sjaastad’s (1962) human capital framework as a basis for examining the impact of education on migration. The migration decision equation was based on the Heckman two stage procedure.

Findings

While educational attainment is observed to have a positive effect on migration decision in the period 2005/2006, the authors find a negative effect of educational attainment on migration decision in the period 2012/2013. The effect of educational attainment on migration decision in 2005/2006 for urban in-migrant is higher than the effect for rural in-migrant, with its significance varying for the different stages of educational attainment. In absolute terms, whereas the effect of secondary educational attainment on migration decisions for urban in-migrant is higher than that of rural in-migrant, the reverse holds for higher educational attainment during the period 2012/2013.

Social implications

Based on the mixed effect of education on migration decision as evident from the study, policies to enhance the educational system in Ghana should be complemented with job creations in the entire country. Moreover, special attention should be given to the rural sector in such a way that the jobs to be created in the sector do not require skilled workers. With quality education and job creation, the welfare of individuals living in urban and rural areas will be enhanced.

Originality/value

In spite of the importance of education in migration decisions, there is scanty literature on the rural-urban dimension. To the best of the author’s knowledge there is no literature in the Ghanaian context which examines the rural and urban perspective of the impact of education on migration with a much recent data. Further, the author consider how the determinants of migration decision have changed over time focusing on rural and urban perspectives.

Details

Journal of Economic Studies, vol. 43 no. 2
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 30 August 2013

Domenico Campa

Using the most recent observations (2005‐2011) from a sample of UK listed companies, This paper aims to investigate whether Big 4 audit firms exhibit a “fee premium” and…

Abstract

Purpose

Using the most recent observations (2005‐2011) from a sample of UK listed companies, This paper aims to investigate whether Big 4 audit firms exhibit a “fee premium” and, if this is the case, whether the premium is related to the delivery of a better audit service.

Design/methodology/approach

Univariate tests, multivariate regressions and two methodologies that control for self‐selection bias are used to answer the proposed research questions. Data are collected from DataStream.

Findings

Findings provide consistent evidence about the existence of an “audit fee premium” charged by Big 4 firms while they do not highlight any significant relationship between audit quality and type of auditor with respect to the audit quality proxies investigated.

Research limitations/implications

Evidence from this paper might signal the need for legislative intervention to improve the competitiveness of the audit market on the basis that its concentrated structure is leading to “excessive” fees for Big 4 clients. Findings might also enhance Big 4 client bargaining power. However, as the paper analyses only one country, generalizability of the results might be a limitation.

Originality/value

This study joins two streams of the extant literature that investigate the existence of a “Big 4 audit fee premium” and different levels of audit quality among Big 4 and non‐Big 4 clients. Evidence supports the concerns raised by the UK House of Lords in 2010 that the concentrated structure of the audit market could be the driver of “excessive” fees for Big 4 clients as it does not find differences in audit quality between Big 4 and non‐Big 4 clients.

Details

Managerial Auditing Journal, vol. 28 no. 8
Type: Research Article
ISSN: 0268-6902

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Book part
Publication date: 19 December 2012

Hild Marte Bjørnsen and Ashok K. Mishra

The objective of this study is to investigate the simultaneity between farm couples’ decisions on labor allocation and production efficiency. Using an unbalanced panel…

Abstract

The objective of this study is to investigate the simultaneity between farm couples’ decisions on labor allocation and production efficiency. Using an unbalanced panel data set of Norwegian farm households (1989–2008), we estimate off-farm labor supply of married farm couples and farm efficiency in a three-equation system of jointly determined endogenous variables. We address the issue of latent heterogeneity between households. We solve the problem by two-stage OLS and GLS estimation where state dependence is accounted for in the reduced form equations. We compare the results against simpler model specifications where we suppress censoring of off-farm labor hours and endogeneity of regressors, respectively. In the reduced form specification, a considerably large number of parameters are statistically significant. Davidson–McKinnon test of exogeneity confirms that both operator and spouse's off-farm labor supply should be treated as endogenous in estimating farming efficiency. The parameter estimates seem robust across model specifications. Off-farm labor supply of farm operators and spouses is jointly determined. Off-farm work by farm operator and spouses positively affects farming efficiency. Farming efficiency increases with operator's age, farm size, agricultural subsidises, and share of current investment to total farm capital stock.

Details

Essays in Honor of Jerry Hausman
Type: Book
ISBN: 978-1-78190-308-7

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Article
Publication date: 1 May 2020

Edward Asiedu

Understanding the drivers of corruption involvement is critical for the design of interventions aimed at reducing the incidence of corruption and easing the process of…

Abstract

Purpose

Understanding the drivers of corruption involvement is critical for the design of interventions aimed at reducing the incidence of corruption and easing the process of obtaining services. In many developing countries particularly in sub-Saharan Africa, traditional cultures dictate that women are responsible for performing physically demanding household chores such as fetching water, collecting and carrying firewood over long distances. This paper aims to examine the implications of these social norms on bribe involvements in sub-Saharan Africa.

Design/methodology/approach

This study uses micro-level data on bribe involvement across 20 sub-Saharan African countries. It also applies multiple estimation approaches to correct for differences in exposure to government officials, which then allows for estimating the gender differences in bribe involvement. Probit, Heckman selectivity and Lee bound estimation approaches are adopted for the purpose.

Findings

The author find that social norms impact bribe involvement of men and women in sub-Saharan Africa. Specifically, the author find lower involvement of men in bribery in sub-Saharan when household services, are at stake compared to other services. In effect the gender differences in bribe involvement, even though robust for other services that are not household related, disappears when household services are at stake. The author shed light on how social and cultural norms could impact bribery outcomes.

Originality/value

Findings from this study shows that inefficiencies in public utility delivery in sub-Sahran Africa can create antisocial behavior and that interventions geared toward improvement access to utility can reduced inequality in access to services.

Details

International Journal of Development Issues, vol. 19 no. 2
Type: Research Article
ISSN: 1446-8956

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Article
Publication date: 29 November 2018

Tiken Das

The purpose of this paper is to evaluate the rural credit demand by providing a theoretical and econometric framework which controls the problem of selection bias.

Abstract

Purpose

The purpose of this paper is to evaluate the rural credit demand by providing a theoretical and econometric framework which controls the problem of selection bias.

Design/methodology/approach

The study is conducted in Assam, India, and uses a quasi-experiment design to gather primary data. Heckman two-stage procedure and type 3 Tobit model are used to evaluate the rural credit demand.

Findings

It is observed that, in general, rural households’ credit demand is influenced by the ability and capacity to work, the value of physical assets of the borrowers as well as some other lenders’ and borrowers’ specific factors. But, the direction of causality of the factors influencing borrowers’ credit demand is remarkably different across credit sources.

Research limitations/implications

The study recommends that it is possible to provide an efficient credit demand estimate through a correct theoretical and econometric framework. The possible limitation of the study can be due to the exclusion of the role of “traditional community based organizations” in rural Assam while evaluating the credit demand, and therefore, this limitation is left to future research.

Originality/value

The study contributes to the literature by assessing the probable differences among formal, semiformal and informal credit sources with respect to rural credit demand.

Details

International Journal of Emerging Markets, vol. 13 no. 6
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 30 April 2019

Muhammad Usman, Muhammad Umar Farooq, Junrui Zhang, Muhammad Abdul Majid Makki and Muhammad Kaleem Khan

This paper aims to investigate the question concerning whether gender diversity in the boardroom matters to lenders or not?

Abstract

Purpose

This paper aims to investigate the question concerning whether gender diversity in the boardroom matters to lenders or not?

Design/methodology/approach

To answer this question, the authors use the data from 2009 to 2015 of all A-share listed companies on the Shanghai and Shenzhen stock exchanges. The authors use ordinary least squares regression and firm fixed effect regression to draw our inferences. To check and control the issue of endogeneity the authors use one-year lagged gender diversity regression, two-stage least squares regression, propensity score matching method and Heckman two-stage regression.

Findings

The results suggest that the presence of female directors on the board reduces managerial opportunistic behavior and information asymmetry and, consequently, creditors’ perceptions about the probability of loan default and the cost of debt. The authors find that lenders charge 4 per cent less from borrowers that have at least one female board member than they do from borrowers with no female board members. The authors also find that the board structure (i.e. gender diversity) of government-owned firms also matters to lenders, as government-owned firms that have gender-diverse boards have a lower cost of debt (i.e. 5 per cent lower interest rate).

Practical Implications

The findings have implications for individual borrowers and for regulators. For example, borrowers can get debt financing at lower rates by altering their boards’ composition (i.e. through gender diversity). From the regulatory perspective, the results support recent legislative initiatives around the world regarding female directors’ representation on boards.

Originality Value

This paper makes several contributions. First, beyond the recent studies on boardroom gender, the authors investigate the relationship between gender diversity in the boardroom and the cost of debt. Second, the authors extend the literature on the association between government ownership and cost of debt by first time providing evidence that the board composition (e.g. gender diversity) of government-owned firms also matters to the lenders. The other contributions are discussed in the introduction section.

Details

Managerial Auditing Journal, vol. 34 no. 4
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 10 April 2018

Jinjuan Zang

Existing research has demonstrated that the innovation implications of structural holes are inconsistent. The diverse and broad resources associated with structural holes…

Abstract

Purpose

Existing research has demonstrated that the innovation implications of structural holes are inconsistent. The diverse and broad resources associated with structural holes facilitate innovation. On the contrary, brokerage will also hinder trust and increase the opportunism behaviors among partners, which will damage innovation. Inspired by the conflicting conclusions, the purpose of this paper is to analyze the roles of structural holes on exploratory innovation and exploitative innovation.

Design/methodology/approach

To test the model, the paper used a panel of 305 US computer focal firms and 6,894 alliances from the period spanning 1993 to 2004, and adopted the Heckman two-stage selection procedure in predicting the results.

Findings

The results show that structural holes help firms to develop exploratory innovation while negatively impacting exploitative innovation.

Originality/value

This study offers precise insights on inconsistent understandings between structural holes and innovation by differentiating exploratory innovation from exploitative innovation. Furthermore, it contributes to the burgeoning literature on exploration and exploitation from the network perspective.

Details

Management Decision, vol. 56 no. 8
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 4 November 2020

B. Elango and Nitin Pangarkar

This study uses the notions of institutional harshness and uncertainty avoidance in the home country to explain the choice between direct and indirect exporting strategies…

Abstract

Purpose

This study uses the notions of institutional harshness and uncertainty avoidance in the home country to explain the choice between direct and indirect exporting strategies by emerging market firms.

Design/methodology/approach

This study is based on a dataset of 23,256 observations on firms from 32 countries spread over 11 years (2006–2016). Since only some firms undertake exports, the Heckman procedure is used to control for sample self-selection. In the first stage, we predict which firms will choose to export, and, in the second stage, we examine the factors driving the choice made by firms involved in exports between direct and indirect exports strategies.

Findings

The analyses reveal that firms are more likely to choose direct exports when institutional harshness is high and when they are from countries with low uncertainty avoidance. We also find that the strength of the relationship between institutional harshness and the choice of direct exports is moderated at high levels of uncertainty avoidance.

Research limitations/implications

While this study's empirical models account for many firm-level factors as well as home country differences discussed in the literature, we acknowledge there could be other temporal, firm or country idiosyncratic factors not included in our analysis driving the key choices examined in the paper.

Originality/value

This study makes three contributions to exporting literature. First, it highlights the drivers of the choice between direct and indirect exports. This choice is an important facet of exporting strategy and has received scant attention in prior IB research. Second, it demonstrates how the choice between direct and indirect exports is impacted by the degree of the home country's institutional harshness and uncertainty avoidance. Third, it offers insights on how the interaction of formal and informal home market institutional factors influences export strategy.

Details

International Marketing Review, vol. 38 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

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