Business

Publication Search Results

Now showing 1 - 10 of 24
  • (2020) Chen, Jie
    Thesis
    This thesis consists of three chapters. It studies, as a broad theme, the effectiveness of several institutional changes on individual decision-making based on experimental evidence. Chapter 1 is self-contained, with results purely based on a laboratory experiment. Chapter 2 and Chapter 3 are based on one field experiment in education. Chapter 2 describes the experimental settings and presents the overall results of the experiment, whereas Chapter 3 extends the analysis and focuses on treatment effects on women and men respectively. Chapter 1 shows how reward or punishment opportunities change contributions in a public goods game with 'privileged' members, where 'privilege' indicates that one's per-unit contribution to the public good produces a higher monetary return than is the case for others in the group. The main finding is that reward opportunities strongly increase group contributions in such groups while punishment opportunities do not. Reward also mitigates contribution decay over successive periods and improves social welfare. Chapter 2 mainly studies how rank incentives (i.e., relative performance information) in a milestone-based online assignment system affect students' academic performance. I find that rank incentives increase the likelihood of a student putting more effort in the online assignment. Rank incentives also have positive effects on low-performing students' exam marks while they have negative effects on high-performing students' exam marks. The positive effects seem driven by increased self-perceived stress, increased effort, and decreased procrastination. The negative effects seem driven by increased self-perceived happiness and re-allocation of effort. Chapter 3 studies how rank incentives and milestone information (i.e., information with reference to achievement milestones corresponding to different amounts of points earned) affect men's and women's academic performance differently. Women with access to the rank incentives experience a 0.19 SDs mark decrease in the first midterm, compared to women without this access. In the absence of relative performance information, men with access to the milestone information experience a 0.26 SDs mark increase in the final exam, compared to men without the access. The negative effects on women seem driven by their increased stress level, whereas men's improved exam performance seem driven by increased effort.

  • (2020) Yao, Yufeng
    Thesis
    I investigate the role of foreign patents (patents issued in countries outside of the US) in US firms’ patent portfolios. Foreign patents are substantial and prevalent for US firms. Foreign patents form about 39% of the average patent portfolio of US firms. Firms with foreign patent applications are financially stable, and these firms have a higher percentage of foreign sales to total sales. Besides, I exploit exogenous shocks to foreign sales (free trade agreements and bilateral investment treaties) to identify the effect of foreign sales on the propensity to foreign patent. I find firms with a larger percentage of foreign sales have a higher propensity to foreign patent. Additional analysis reveals US firms have a higher propensity to patent in countries with strong patent rights.

  • (2020) Chen, Zhuo
    Thesis
    This thesis is composed of three stand-alone research studies relating to the recent unconventional monetary policy adopted by the Bank of Japan (BOJ). The first study investigates the impact of the BOJ’s policy on stock prices and corporate activities. The empirical results show that the policy has generated heterogenous effects on stock prices. Firms with disproportionately higher BOJ investment experience significantly positive stock returns both in the short term and the long term. Corresponding to the positive price impact, the cost of equity capital reduces and firm value increases. However, further tests fail to find evidence of any real impact. Firms that benefit from a reduction in cost of equity capital do not increase external financing, corporate investment and employment. The concentrated capital structure in Japan and the biased investment scheme adopted may explain this weak policy impact. The second study examines whether and how excess reduction in free float affects stock liquidity. Using the BOJ’s equity purchase program as a natural experiment to tackle endogeneity problems, the results show that firms that experience a larger reduction in free float exhibit a reduction in stock liquidity. The negative effect of free float reduction on stock liquidity survives a battery of robustness tests. Further analyses of the underlying channels show that the number of common shareholders and institutional shareholders in a firm significantly decrease. These findings are consistent with a lack of free floating shares introducing frictions in the process of liquidity provision. The third study examines whether an increase in exchange traded funds (ETF) ownership via indexed investment impedes or improves price efficiency. Utilizing Japan’s ETF purchase program as the identification strategy, empirical tests show that prices of stocks that experience an increase in ETF ownership become less efficient in that they deviate more from a random walk and exhibit longer delays in responding to market information. An increase in ETF ownership is also associated with an increase in post-earnings announcement drift, a decline in analyst coverage, and a reduction in the coefficient of current returns to future earnings. These results together suggest that an excessive increase in ETF ownership curbs information arbitrage activities and results in less informative security prices.

  • (2020) Zhang, Xueting
    Thesis
    This thesis consists of three stand-alone research projects on corporate ownership structure across countries, insider trading, and passive institutional investors. The first study examines the effect of social trust on corporate ownership structure. Using a large sample of public firms across 42 countries, I find that a culture of trust in a country leads to a more dispersed corporate ownership structure. I also investigate how trust affects the evolution of ownership structure following firms’ IPO and the channels through which trust leads to dispersed ownership. I show that corporate ownership is more likely to become widely held and diffuses at a faster speed in countries with a higher level of social trust. Trust also encourages the selling of block ownership by large shareholders and the use of equity financing by firms. The second study investigates whether fast economic integration but slow legal integration leads to more aggressive insider trading by foreigners in possession of material non-public information about domestic firms. Using a large sample of mergers and acquisitions (M&As) around the world, I find systematically a higher likelihood of insider trading in target firm securities before the announcements of cross-border deals compared to domestic deals. The difference is mainly driven by cross-border deals where the acquirer is from a country with high corruption and low social norms, and where the target is in a country with stricter enforcement of insider trading laws. The third study examines the role of family interest in explaining and influencing individual funds’ voting behaviour. Specifically, I focus on the voting patterns of index funds in the event of corporate M&As. I find that the interest of fund families in the target is significantly positively associated with the likelihood of an affiliated index fund voting for a deal in the bidder merger approval meeting. However, an index fund’s own interest in the target does not explain its voting pattern. A higher level of aggregate bidder ownership held by fund families that have greater active interest in the target is also associated with worse deal performance. Taken together, the evidence suggests that cooperation between active and index funds within fund families potentially weakens the resistance of bidder shareholders to bad mergers.

  • (2020) Weng, Xiaochuan
    Thesis
    The Mandatory Bid Rule (MBR) requires a bidder who acquires control over a firm to make a general offer to all remaining shareholders to purchase their residual shares. It is the most powerful institution that requires controlling shareholders to share the control premium with other shareholders in a control transaction. The MBR is considered to be a key method of protection for minority shareholders, but nevertheless faces strong criticism over high implementation costs and an on-going debate over its effectiveness in practice. From a utilitarianism perspective, the paper shows the relevance between the MBR and the effectiveness of minority shareholder protection mechanisms in a jurisdiction of legal transplantation. Using Mainland China as the test sample where the MBR was adopted, removed then re-introduced, the paper employs the empirical research methodology to highlight market reactions when the rule is removed. The paper analyses the efficiency of the MBR and outlines the types of environments and jurisdictional specifications where the MBR can operate at an optimal level, and alternatively, where the MBR will not be value-maximizing. It offers ideal legislation suggestions for similar jurisdictions considering transplanting MBR.

  • (2020) Khan, Mahreen
    Thesis
    Emotional intelligence (EI) exploded in popularity due to widespread claims that it is more important for success than cognitive ability. Whilst this claim is not totally accurate, subsequent research demonstrated that EI is indeed predictive of success in a variety of domains including physical health, mental health, job performance and relationship quality. However, although there is a large volume of research on outcomes of EI, relatively little is known about how EI changes with temporal-related factors. Accordingly, I used random-effects meta-analyses to determine how EI changes with age (k = 270; N = 84,101) and job experience (k = 110; N = 18,388). I used a cross-temporal meta-analysis to determine how EI changes across generations (k = 71; 17,694). For each meta-analysis, an extensive search was conducted to obtain relevant effect sizes from both published and unpublished literature. Overall, the results demonstrated that these relationships are largely dependent on how EI was conceptualised. Specifically, when EI was operationalised as a set of abilities (ability EI), there was a moderate positive relationship with age in children. In adults, ability EI was unrelated to both age and job experience. When EI was operationalised as self-perceptions of abilities (self-perceived EI), there was a small positive relationship with age, but not job experience. When EI was defined as personality (mixed model EI), there was a small positive relationship with age, and a moderate positive relationship with job experience. Occupational characteristics moderated the relationship between mixed model EI and job experience, whereby the relationship was stronger in occupations characterised by higher levels of interpersonal orientation and adjustment. Findings further demonstrated that there are generational changes in mixed model EI, as facets of mixed model EI have declined over time. In conclusion, these body of findings provide evidence that, depending on EI stream, EI changes with age, job experience and across generations. I consider how these findings have implications for understanding the nature of EI, its development and for identifying populations suitable for EI-related training interventions.

  • (2020) Hong, Na Ry
    Thesis
    In this thesis, I examine the economic choices of people with disabilities. The thesis consists of four essays, each looking at different aspects of human capital or welfare outcomes for the disabled population in Australia. I use repeated cross sections of the Australian Bureau of Statistics (ABS) Survey of Disability, Ageing and Carers (SDAC) data for all of the four essays. The first essay explores the choice of relative occupational groups between disabled and non-disabled workers. I employ a multinomial logit model, using five SDAC cross sectional surveys from 1993 to 2012. I find that for men, the average marginal effects are relatively stable in magnitude over time, indicating that being disabled is positively associated with being a labourer and being in sales while negatively associated with being a manager or a technician. The largest effects tend to be for labourers (2 to 6 percentage points) and for managers (-2 to -6 percentage points). For women, the magnitude of the effects tends to be smaller although the signs are broadly like those for males. The only statistically significant effects for females appear for labourers where being disabled is positively associated with estimates in the range 1 to 3 percentage points. The second essay analyses the effect of reading and writing assistance on take-up of the Disability Support Pension (DSP). I employ age at onset of the disability as an instrumental variable to account for potential selection problems present in receiving the assistance. Using SDAC data (2003, 2009, 2015), a recursive bivariate probit estimation is carried out to allow for the supposed correlation representing common unobservables that capture the selection effects. I find that reading and writing assistance substantially increases the probability of receiving the DSP. The goal of the third essay is to see whether the implementation of the Disability Standards for Education in 2005 has resulted in improvement in educational outcomes for disabled students. I use a difference-in-differences (DD) method, using three waves of the data (2003 as pre-policy, 2009 and 2015 as post-policy). While there is no significant effect in school enrolment, a significant negative effect is observed for enrolment and completion of bachelor or above degrees relative to Year 11 or below. Overall, I find no significant effect of the policy on educational outcomes and that any observed increase in enrolment or completion is due to a general increase over time. The fourth essay investigates the wage differential observed between the disabled and non-disabled Australians. I use the Blinder-Oaxaca decomposition method to examine the wage gap each separately for men and women. Using the 2012 data, I employ the Heckman selection process to account for any potential selection into the labour market. I find a significant negative effect of mental health on employment and earnings for the disabled population. I also find that the proportion of the wage gap between disabled and non-disabled workers that is not explained by productivity-related characteristics is very large.

  • (2020) Rannard, Richard
    Thesis
    Information Technology (IT) outsourcing is a common practice, being adopted in many organisations in different industries and sectors of the worldwide market. Much of the research into IT outsourcing has focused on the use of IT outsourcing within private sector organisations, with less attention being paid to the use of IT outsourcing by government and the public sector. Relationships in IT outsourcing are of interest, juxtaposed against the older contracts in IT outsourcing; contracts and relationships are complementary, not substitutes. The purpose of this Study is to understand the differences between government versus private sector IT outsourcing, focusing on relationships. The researcher developed a classification of ‘tendencies’ in government IT outsourcing, characteristics that are more pronounced in government than in private sector IT outsourcing. Relational Exchange Theory was used to structure IT outsourcing into attributes, inherent characteristics that support the performance of the relationship (Goles and Chin, 2005). The researcher conducted an online survey, completed by government IT outsourcing managers, giving responses converted into tendency-attribute ‘combinations’ and analysed using statistical tests. The attributes were calculated using differing sample sizes, as some respondents abandoned the survey part-way through. Out of sixty combinations there were eighteen that were statistically significant at the 5% level. Most combinations came from Commitment, Consensus, Flexibility and Trust attributes. There are five tendencies out of ten that were strongly associated with these combinations. Some combinations appeared as if the scores have a bivariate distribution, but no clear evidence of bimodal distribution of the demographic variables was found. The low response rate to the survey was concerning; there was bias and sampling errors, there was inconsistent interpretation of the constructs, and there were respondent concerns about confidentiality. There is a need to investigate the four attributes, the five tendencies, and the demographics.

  • (2020) Bell, David
    Thesis
    In this thesis we explore intertemporal asset allocation. In a multi-period setting asset allocation demands are the aggregate of single-period and intertemporal hedging demands (additional demand to hedge against possible impairment of the future return opportunity set). We consider the classic case study of a risk-averse investor focused on terminal wealth. We extend the literature in two directions: first, we explore a range of return forecasting models, many of which have not been considered in the multi-period setting; and second, we investigate a range of asset allocation approaches, comparing their effectiveness against the dynamic asset allocation approach which, while acknowledged as optimal, is complex and difficult to apply. In addition to using value (dividend yield), our exploration of return predictors leads us to time series momentum. Contemporary empirical research details the existence of a universe of momentum signals (based on past returns) which predict future returns. Momentum-based predictors differ by their form (past return or sign of past return), and the lengths of their lookback and holding periods. We identify a large dispersion in the intertemporal hedging demands induced by forecasting models based on different momentum-based predictors. Our efforts to expand the universe of return predictors provides a robust environment for assessing the performance of alternative asset allocation approaches. Our results reinforce the in-sample superiority of the dynamic approach relative to other approaches. It effectively accounts for updated market insights and intertemporal hedging demands across a range of return forecasting models. This thesis generates further important insights. We identify that across different return forecasting models the relative importance of portfolio reassessments and accounting for intertemporal hedging demands differs significantly. Further, for the same forecasting model different individuals (based on investment horizon) may rank the importance of these two activities differently. We also develop an intertemporal forecasting persistence index methodology which approximates the intertemporal hedging demand profile (demands against investment horizon). In aggregate our research makes the case that return forecasting model should be a choice variable in asset allocation problems. We also frame an empirically based challenge to the ``Three Fund Theorem’’ of Merton (1973).

  • (2020) Bose, Amartya
    Thesis
    Racial disparities are widespread throughout the U.S justice system; in arrests and incarceration. These disparities are typically explained by appealing to racial biases among the police and the judiciary. I present a model in which disparities arise between groups in spite of unbiased actions on the part of these authorities. Voters determine the intensity with which legal sanctions are enforced against an offence that creates a negative externality. Individuals discount the harm caused by members of their own group taking the action. A county's population is comprised of two unequally sized groups, with the median voter drawn from the majority. In this model the intensity of law enforcement increases with the size of the minority. In states where counties are heterogenous in the composition of their population, this leads to group disparities at the state level. The intensity of law enforcement depends on both the level of policing and the strictness of the judiciary. In some states, voters can elect their judges and increase the legal sanction through judicial severity, while in other states judges are appointed. We should therefore expect that the relationship between the size of the minority population and the intensity of policing to be stronger in counties where judges are appointed. Using a county-level panel of arrests between 2000-2014 in the United States, I find that in states with appointed judges the level of policing is increasing with the share of the black population. A 1% higher share of black population leads to a 0.58% increase in the clearance rate of property crimes. I do not find a comparable effect in states with elected judges. This agrees with the predictions of the theoretical model.