The paper presents estimation results on the size and loyalty of sport teams’ supporter groups in professional German football. Based on a novel two-stage estimation procedure, we find clear evidence for heterogeneity across teams. In the first stage, a random-utility model for a representative consumer is modelled and fitted to more than 1700 matches over the seasons 1996–2001. In the second step, attendance probabilities are predicted for the seasons 2002–2003 to estimate group sizes. A team's group size is positively correlated with its memberships (inline image.61; p<0.01), fan clubs (inline image.59; p<0.01) and merchandizing revenues (inline image.49; p<0.05). Noteworthy is that no similar correlations can be found for a team's home town population which has been the standard measure for market size in applied work so far.
We analyse the all-pay auction with incomplete information and variance-averse bidders. We characterise the unique symmetric equilibrium for general distributions of valuations and any number of bidders. Variance aversion is a sufficient assumption to predict that high-valuation bidders increase their bids relative to the risk-neutral case while low types decrease their bid. Considering an asymmetric two-player environment with uniformly distributed valuations, we show that a variance-averse player always bids higher than her risk-neutral opponent with the same valuation. Utilising our analytically derived bidding functions we discuss all-pay auctions with variance-averse bidders from an auction designer’s perspective. We briefly consider possible extensions of our model, including noisy signals, type-dependent attitudes towards risk, and variance-seeking preferences.
We introduce agency concerns to social capital theory and predict that managers can use individual social capital to reduce personal effort costs, which is not in the best interest of the firm. To test this prediction, we collect data on all 8,019 hiring decisions from general managers in the National Basketball Association between 1981 and 2011. We find that managers have a clear preference for hiring players through social ties. The probability that a manager hires players from an NBA franchise to which he is socially tied is 27.6% higher than for an untied franchise. To isolate the motivation for this behavior, we complement our data with information on the sporting performance of teams. In line with agency theory, we find that the hiring of players through social ties reduces team performance. The effect is large: on average, each social-tie player reduces team winning percentage by 5.4%. Overall, this paper documents first empirical evidence that decision makers’ use of individual social capital can lead to reduced firm-level performance.
In recent years, international accreditations from private providers have gained importance among business schools all over the world. Higher education managers increasingly see these accreditations as a way of assuring and developing quality in order to comply with international standards, enhance performance, and increase reputation. However, given that an accreditation process requires a great deal of resources and that it might increase bureaucratization and control, international accreditations remain highly disputed in academia. This paper contributes to the discussion, providing quantitative empirical evidence regarding the effect of international accreditations on the research performance of business schools. On the basis of an international survey, we analyse how the acquisition of an AACSB and/or EQUIS accreditation affects the institutions’ position in the Top 1000 Business School Ranking of the Social Science Research Network, as compared to other quality management approaches. We find that international accreditations are positively related to research performance, while other forms of quality management do not exhibit any significant relationship to ranking positions. These results point to the importance of professional coaching in quality management. Because of AACSB and EQUIS’s high standards concerning a coherent strategy and the quality of faculty, applying for an international accreditation seems to be a useful way to improve a business school’s research performance.
Das Parlament hat das veraltete Recht zur Rechnungslegung überarbeitet. Die Autoren begrüssen die Modernisierung, hadern aber mit der Regelung von stillen Reserven und Konzernrechnung.
The measurement of fair values, particularly in the absence of quoted prices in active markets, is complex and difficult to verify. This paper examines whether banks use fair value estimates based on unobservable inputs (i.e., Level 3) to manage earnings during the 2008 financial crisis. Using a sample of 291 U.S. bank holding companies, we find that banks use discretionary Level 3 gains or losses to smooth earnings. We benchmark our findings against loan loss provisions (LLP), but we do not find consistent evidence that banks use LLP to smooth earnings, mainly because better corporate governance mechanisms effectively reduce discretion. However, better corporate governance does not reduce measurement discretion in Level 3. This finding suggests that monitoring mechanisms prevent excessive discretion for loans—which are measured at amortized cost—but have yet to develop to prevent similar discretion for investments that are measured at fair value.
Using Swiss Labor Force Survey data from 1996 to 2009, the authors estimate the earning losses of workers experiencing an involuntary job loss. Two empirical strategies are followed: the standard approach of the earning losses literature and a new method that allows to consider the full set of involuntary separations, also those individuals with zero earnings because of unemployment. Using the first approach the authors estimate an immediate loss of 11%, and a long-term loss of about 9%. Using the second method the authors estimate an earning loss of 50% in the year of separation and a long-term loss of about 19%. With respect to other reasons for separation, the earning loss pattern is unique for involuntary separations. Analyzing the determinants of an involuntary job loss, the authors find out that education plays a major role against the risk of an involuntary separation and this element has a unique pattern with reference to the other reasons for separation.
Prior research has produced ambiguous support for theories on the nature and construction of Human Resource Management (HRM) systems. This ambiguity may be a function of the inherent limitations of the methodologies used in previous studies. We resume efforts by using a configurational methodology to analyze high performing HRM systems of 374 UK based firms. We reveal the multi-dimensional nature of successful and unsuccessful HRM systems. By providing a typology for comparing the interdependencies among vital and peripheral functions, we are able to describe and explain competitive advantages that rest in the orchestrating themes and integrative mechanisms of HRM systems.
