Open Access. Powered by Scholars. Published by Universities.®
- Keyword
-
- Airlines (1)
- Airport governance (1)
- Airport ownership (1)
- Bank Efficiency (1)
- Bank Heterogeneity (1)
-
- Conduct parameter (1)
- Corporate innovation (1)
- Cost efficiency (1)
- Dynamic Stochastic Frontier (1)
- Efficiency (1)
- Employment protection laws (1)
- GARCH-M (1)
- Heterogeneity (1)
- Innovation efficiency (1)
- Inventor turnover (1)
- Investor Sentiment (1)
- Labor law reform (1)
- Liquidity Crisis (1)
- Market power (1)
- Panel data (1)
- REIT returns (1)
- REIT volatility (1)
- Stochastic frontier (1)
- Stochastic frontier analysis (1)
Articles 1 - 5 of 5
Full-Text Articles in Business
A Dynamic Stochastic Frontier Model With Threshold Effects: U.S. Bank Size And Efficiency, Pavlos Almanidis, Mustafa U. Karakaplan, Levent Kutlu
A Dynamic Stochastic Frontier Model With Threshold Effects: U.S. Bank Size And Efficiency, Pavlos Almanidis, Mustafa U. Karakaplan, Levent Kutlu
Economics and Finance Faculty Publications and Presentations
Common/Single frontier methodologies that are used to analyze bank efficiency and performance can be misleading because of the homogeneous technology assumption. Using the U.S. banking data over 1984-2010, our dynamic methodology identifies a few data-driven thresholds and distinct size groups. Under common frontier assumption, the largest banks appear to be 22% less efficient on average than how they are in our model. Also, in the common frontier model, smaller banks seem to be relatively more efficient compared to their larger counterparts. Hence, common policies or regulations may not be well-balanced about controlling the banks of different sizes on the spectrum.
Labor Law And Innovation Revisited, Bill B. Francis, Incheol Kim, Bin Wang, Zhengyi Zhang
Labor Law And Innovation Revisited, Bill B. Francis, Incheol Kim, Bin Wang, Zhengyi Zhang
Economics and Finance Faculty Publications and Presentations
This paper examines the impact of changes in job security on corporate innovation in 20 non-U.S. OECD countries. Using a difference-in-differences approach, we provide firm-level evidence that the enhancement of labor protection has a negative impact on innovation. We then discuss possible channels and find that employee-friendly labor reforms induce inventor shirking and a distortion in labor flow. Further investigation reveals that the negative relation is more pronounced in 1) firms that heavily rely on external financing, 2) firms that have high R&D intensity, 3) manufacturing industries, and 4) civil-law countries. Our micro-level evidence indicates that enhanced employment protection impedes …
Estimation Of Cost Efficiency Without Cost Data, Levent Kutlu, Ran Wang
Estimation Of Cost Efficiency Without Cost Data, Levent Kutlu, Ran Wang
Economics and Finance Faculty Publications and Presentations
One of the advantages of conduct parameter games is that they enable estimation of market power without total cost data. In line with this, we develop a conduct parameter based model to estimate the firm specific “marginal cost efficiency” and conduct without using total cost data. The marginal cost efficiency is an alternative measure of efficiency that is based on deadweight loss. We illustrate our methodology by estimating firm-route-quarter specific conducts and marginal cost efficiencies of U.S. airlines for Chicago based routes without using route-level total cost data.
Us Airport Ownership, Efficiency, And Heterogeneity, Levent Kutlu, Patrick Mccarthy
Us Airport Ownership, Efficiency, And Heterogeneity, Levent Kutlu, Patrick Mccarthy
Economics and Finance Faculty Publications and Presentations
All US commercial airports are in the public sector yet not all have the same ownership type. For medium and large hub US airports we use stochastic frontier analysis to analyze the efficiency differences for alternative airport ownership types. We find that while form of ownership may matter for cost efficiency, in general its effect is relatively small. Yet type of public sector ownership does have cost efficiency implications in certain environments. Further, when heterogeneity is not controlled, the results change substantially so that type of ownership matters much more which demonstrates the importance of controlling for cross section heterogeneity.
The Liquidity Crisis, Investor Sentiment, And Reit Returns And Volatility, Daniel Huerta, Peter V. Egly, Diego Escobari
The Liquidity Crisis, Investor Sentiment, And Reit Returns And Volatility, Daniel Huerta, Peter V. Egly, Diego Escobari
Economics and Finance Faculty Publications and Presentations
The real estate investment trust (REIT) industry experienced a liquidity crisis resulting from reduced access to credit commitments as banks were restoring their balance sheets during the 2007–2009 financial crisis. Employing generalized autoregressive conditional heteroscedasticity (GARCH) models, we examine the impact of the liquidity crisis and investor sentiment on REIT returns and volatility over the December 2001 to February 2013 period. We find that the liquidity crisis negatively impacts REIT returns and helps explain increases in volatility; this finding is robust to multiple specifications. We show that investor sentiment is a significant factor in the REIT return-generating process with institutional …