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Market Lead (market + lead)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting55%
Humanities and Social Sciences44%

Selected Abstracts

Corporate-Governance Ratings and Company Performance: A Cross-European Study

CORPORATE GOVERNANCE, Issue 2 2010
Annelies Renders
ABSTRACT Manuscript Type: Empirical Research Question/Issue: Prior studies have failed to unequivocally establish a positive relationship between corporate-governance ratings and company performance, although theoretically, we would expect to find one. In this paper, we try to establish whether a positive relationship exists through modeling the relationship more carefully. Research Findings/Insights: After controlling for selection bias and endogeneity simultaneously, we find a significant positive relationship between corporate-governance ratings and performance. However, the strength of this relationship seems to depend on the quality of the institutional environment. Finally, we find that improvements in corporate-governance ratings over time result in decreasing marginal benefits in terms of performance. Theoretical/Academic Implications: Our paper contributes to the literature by showing that improved corporate-governance ratings lead to better performance, but that econometric problems might obscure this relationship. We also show that for a sample of developed countries the institutional environment affects the relationship between governance ratings and performance. Finally, this paper contributes to the literature on the impact, regarding compliance and effectiveness, of codes of good governance. Practitioner/Policy Implications: Our results are relevant for both companies and policy makers. They indicate that companies can improve performance by adhering to good corporate-governance practices. For policy makers, the findings suggest that soft laws and the invisible hand of the market lead to companies improving their corporate governance. [source]

Thick markets, market competition and pricing dynamics: evidence from retailers

MANAGERIAL AND DECISION ECONOMICS, Issue 7 2007
Kostas AxarloglouArticle first published online: 10 OCT 200
By using store-level transaction price data for books in Ann Arbor, Michigan, and music CDs in Natick, Massachusetts, the implications of thick markets and the intensity of market competition on price markups and the synchronization in price adjustments are empirically tested. The data indicate that for books, actual price markups are 6% lower than the suggested price markups, while for music CDs, they are 3.6% lower. Popular items are more heavily discounted than less popular ones. The data show that a 10% increase in national sales of a given book title results in a 0.06% drop in price markups. Also, market competition has a non-linear depressing effect on price markups that becomes stronger for widely known popular items. Finally, a 10% increase in the number of sellers in the market lead to a 5.8% increase in the likelihood of a price adjustment and a 2.2% increase in the share of sellers that synchronize their price adjustments. Copyright © 2007 John Wiley & Sons, Ltd. [source]

China's Dilemma: Invest at Home or in US Stimulus

NEW PERSPECTIVES QUARTERLY, Issue 2 2009
XU KUANGDI
As the global financial crisis emanating from the United States shuts down world markets, can globalization survive? Will the resurgent intrusion of the state,and thus politics,into the market lead to protectionism and collapse, as was the case in the early 20th century? Or will the new interconnectivity of climate change and mutual economic dependence,especially between China and the US,deepen global links? The former mayor of Shanghai, legendary Nobel economist Paul Samuelson and Third Way guru Anthony Giddens ponder those questions in this section. [source]

Has the Financial Crisis Killed Consumerism?

NEW PERSPECTIVES QUARTERLY, Issue 2 2009
JAMES HOWARD KUNSTLER
As the global financial crisis emanating from the United States shuts down world markets, can globalization survive? Will the resurgent intrusion of the state,and thus politics,into the market lead to protectionism and collapse, as was the case in the early 20th century? Or will the new interconnectivity of climate change and mutual economic dependence,especially between China and the US,deepen global links? The former mayor of Shanghai, legendary Nobel economist Paul Samuelson and Third Way guru Anthony Giddens ponder those questions in this section. [source]

Market Size, Technology Choice, and Market Structure

GERMAN ECONOMIC REVIEW, Issue 1 2002
Walter Elberfeld
We introduce technology choice into a model of monopolistic competition and analyze the structural effects of changes in market size. A larger market leads to the adoption of a large-scale technology. If a technology switch occurs, the number of firms decreases, and a rationalizing effect arises: individual and aggregate output increases; prices fall. This need not benefit consumers since a technology switch is associated with a decrease in product variety. [source]

Impact of interchange fees on a nonsaturated multi-agent payment card market

INTELLIGENT SYSTEMS IN ACCOUNTING, FINANCE & MANAGEMENT, Issue 1-2 2009
Biliana Alexandrova-KabadjovaArticle first published online: 19 MAY 200
The impact that the level of interchange fees has on the payment adoption rate in a non-saturated market is investigated. This study is performed under different degrees of consumers' and merchants' awareness of the benefits arriving from the network externalities. In a four-party scheme, we model explicitly the interactions between consumers and merchants at the point of sale. The interchange fees flow from the acquirers to issuers. We allow card issuers to charge consumers with fixed fees and provide net benefits from card usage, whereas acquirers could charge fixed and transactional fees to the merchants. Merchant's transactional fees are determined proportionally to the level of interchange fees. We establish that, under this scheme, the two-sided nature of the market leads to higher adoption rates with lower interchange fees. Copyright © 2009 John Wiley & Sons, Ltd. [source]

Volatility of changes in G-5 exchange rates and its market transmission mechanism

INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 1 2002
Bwo-Nung Huang
Abstract This paper studies the transmission mechanism of G-5 exchange rate changes within each market and across the three major markets: London, New York and Tokyo. It is found that the volatility in both the London and New York markets leads that of Tokyo. In addition, the New York market slightly leads the London market in its volatility. After the Euro monetary system crisis, the frequencies of both the volatility spillover effect from London to New York and mutual feedback phenomena have increased. Furthermore, the volatility spillover effects from both London and New York to Tokyo have been on the rise after the Asian financial debacle. Within the framework of the causality model, we find better forecasting performance in predicting G-5 exchange rates across the three markets. It outperforms the traditional ARMA model in terms of both in- and out-sample forecasting. Copyright © 2002 John Wiley & Sons, Ltd. [source]

ON THE IMPACT OF LABOR MARKET MATCHING ON REGIONAL DISPARITIES,

JOURNAL OF REGIONAL SCIENCE, Issue 1 2009
Joe Tharakan
ABSTRACT We propose a model where imperfect matching between firms and workers on local labor markets leads to incentives for spatial agglomeration. We show that the occurrence of spatial agglomeration depends on initial size differences in terms of both number of workers and firms. Allowing for dynamics of workers' and firms' location choices, we show that the spatial outcome depends crucially on different dimensions of agents' mobility. The effect of a higher level of human capital on regional disparities depends on whether it makes workers more mobile or more specialized on the labor market. [source]

Globalization and the Strengthening of Democracy in the Developing World

AMERICAN JOURNAL OF POLITICAL SCIENCE, Issue 4 2005
Nita Rudra
Scholars and policy makers have long assumed that trade and financial liberalization encourages developing countries to become more democratic; yet no one has developed formal hypotheses about the causal relationship between globalization and democracy. This article shows that these two trends are indeed related, but not necessarily in the direct manner that has commonly been postulated. Combining theories of embedded liberalism and conflict-based theories of democracy, the model presented here depicts the process that affects decisions to strengthen democracy as trade and capital flows increase. I argue that increasing exposure to international export and financial markets leads to improvements in democracy if safety nets are used simultaneously as a strategy for providing stability and building political support. Empirical evidence is provided by econometric analysis covering 59 developing countries for the time period 1972,97. [source]