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Dominant Shareholders, Corporate Boards And Corporate Value: A Cross-Country Analysis, Jay Dahya, Orlin Dimitrov, John J. Mcconnell
Dominant Shareholders, Corporate Boards And Corporate Value: A Cross-Country Analysis, Jay Dahya, Orlin Dimitrov, John J. Mcconnell
Purdue CIBER Working Papers
We investigate the relation between corporate value and the fraction of independent directors in 799 firms with a dominant shareholder across 22 countries. We find a positive relation, especially in countries with weak legal protection for shareholders. The findings suggest that a dominant shareholder, were he so inclined, could offset, at least in part, the documented value discount associated with weak country-level shareholder protection by appointing an ‘independent’ board. The cost to the dominant shareholder of doing so is the loss in perquisites associated with being a dominant shareholder. Thus, not all dominant shareholders will choose independent boards.
How Long Are Product Cycles? , Chong Xiang
How Long Are Product Cycles? , Chong Xiang
Purdue CIBER Working Papers
In this paper I identify new goods in U.S. imports data at the product levels of 7-digit TSUSA or 10-digit HS codes. I show that consistent with product cycles, the North’s new goods exports relative to old goods exports grow faster than the South’s, and then the South catches up with the North. The catch-up takes 13 ~ 18 years and happens in the 1990s, an age of globalization and outsourcing. Since the double difference includes old goods exports within the same 4-digit mSIC industry as controls, the evidence is not tainted by the myriad forces that also affect the …
Equity Returns At The Turn Of The Month, John J. Mcconnell, Wei Xu
Equity Returns At The Turn Of The Month, John J. Mcconnell, Wei Xu
Purdue CIBER Working Papers
A turn-of-the-month effect in U.S. equity returns was initially identified by Lakonishok and Smidt (1988) using the DJIA for the period 1897-1986. According to the turn-of-the-month effect, equity returns over the interval beginning with the last trading day of the month and ending three days later are significantly higher than over other days. Using CRSP daily returns, we find that the turn-of-the-month effect persists over the more recent interval of 1987-2005: in essence, over this 19-year period (and over the 109-year period of 1897-2005) all of the positive excess market return occurred during the four-day turn-of-the-month interval. Thus, during the …
Explaining Import Variety And Quality: The Role Of The Income Distribution, Yo Chul Choi, David Hummels, Chong Xiang
Explaining Import Variety And Quality: The Role Of The Income Distribution, Yo Chul Choi, David Hummels, Chong Xiang
Purdue CIBER Working Papers
We examine a generalized version of Flam and Helpman’s (1987) model of vertical differentiation that maps cross-country differences in income distributions to variations in import variety and price distributions. The theoretical predictions are examined and confirmed using micro data on income from the Luxemburg Income Study for 30 countries over 20 years. The pairs of importers whose income distributions look more similar have more export partners in common and more similar import price distributions. Similarly, the importers whose income distributions look more like the world buy from more exporters and have import price distributions that look more like the world.
How Strong Is The Love Of Variety?, Adina Ardelean
How Strong Is The Love Of Variety?, Adina Ardelean
Purdue CIBER Working Papers
Models with monopolistic competition and constant elasticity of substitution (CES) preferences have become a mainstay of theoretical and empirical work in international trade. However, the standard model yields contrafactual predictions on the number of varieties, prices and output per variety that are traded. In particular the model predicts a rate of variety growth that is faster than that observed in the data. This paper develops and tests a model with a more general, but still tractable, CES preference structure that nests Krugman (1980) and Armington (1969) style models. With limited love of variety the consumer faces a trade-off between buying …
Cross-Cultural Social Intelligence: An Assessment For Employees Working In Cross-National Contexts, Ma. Evelina Ascalon, Deidra J. Schleicher, Marise Ph. Born
Cross-Cultural Social Intelligence: An Assessment For Employees Working In Cross-National Contexts, Ma. Evelina Ascalon, Deidra J. Schleicher, Marise Ph. Born
Purdue CIBER Working Papers
Purpose – To discuss (a) the concept of cross-cultural social intelligence (CCSI), (b) its relevance for both selecting and developing expatriates and other employees working in crosscultural contexts, (c) the development of a situational judgment test to assess CCSI, and (d) practical “lessons learned” in each of these areas. In addition, this instrument is offered (free-of-charge) to any interested managers or HR practitioners. Design/methodology/approach – The four phases of the development and validation of the CCSI measure (using a total of 184 cross-cultural SMEs) were developing (a) the scenarios and (b) the response alternatives, (c) the content analysis, and (d) …