Found 720 article(s) for author 'Regulation'

When waste pays: Inefficient (but seemingly fair) resource allocators receive social and economic rewards

When waste pays: Inefficient (but seemingly fair) resource allocators receive social and economic rewards. Christopher Robichaud, Jennifer Lerner, 2019, Paper, “The tension between equality and efficiency presents a cardinal trade-off in scarce resource allocation decisions. Three pre-registered experiments (N=1,095) and an independent replication (N=300) drew on the revised value pluralism model (Tetlock, Peterson, & Lerner, 1996) to predict how decision makers resolve such trade-offs. Studies 1-2 found that social observation by non-stakeholders increased allocators’ preferences for equal (yet inefficient) allocations – a finding that held even with real money and even when the efficient allocation made one party better off and no one worse off. Study 3 found that allocators who made inefficient choices received positive evaluations and monetary rewards from observers. Analyses also examined the boundary conditions for such benefits and the underlying mechanisms. Taken together, the results elucidate causal mechanisms for a fact of political life: Decision makers who make equal rather than efficient allocations can, by virtue of doing so, receive greater financial and social rewards from observers.Link

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Cash-for-information whistleblower programs: Cure or curse?

Cash-for-information whistleblower programs: Cure or curse? Aiyesha Dey, Jonas Heese, Gerardo Pérez-Cavazos, November 27, 2019, Paper, “We examine whistleblowers’ and firms’ behaviors under cash-for-information whistleblower programs using lawsuits filed under the False Claims Act. Within the sample of lawsuits filed with the regulator, whistleblowers report internally in only 50% of the cases before contacting regulators, and only 30% of the cases are settled, raising the concern that cash-for-information programs trigger many meritless allegations. However, whistleblowers are less likely to report internally when firms’ governance is weaker, and such firms are less likely to initiate internal investigations or refrain from retaliating against whistleblowers. Finally, whistleblowers seem adequately compensated under cash-for-information programs and do not face as severe career consequences as documented in prior research.Link

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The Politics of M&A Antitrust

The Politics of M&A Antitrust. Suraj Srinivasan, November 5, 2019, Paper, “Antitrust regulators play a critical role in protecting market competition. We examine whether the political process affects antitrust reviews of merger transactions. We find that acquirers and targets located in the political districts of powerful U.S. congressional members who serve on committees with antitrust regulatory oversight receive relatively favorable antitrust review outcomes. To establish causality, we use plausibly exogenous shocks to firm‐politician links and a falsification test. Additional findings suggest congressional members’ incentives to influence antitrust reviews are affected by three channels: special interests, voter and constituent interests, and ideology. In aggregate, our findings suggest that the political process adversely interferes with the ability of antitrust regulators to provide independent recommendations about anti‐competitive mergers.Link

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State Capabilities for Problem-Oriented Governance

State Capabilities for Problem-Oriented Governance. Quinton Mayne, Jorrit de Jong, 2019, Paper, “Governments around the world are increasingly recognizing the power of problem-oriented governance as a way to address complex public problems. As an approach to policy design and implementation, problem-oriented governance radically emphasizes the need for organizations to continuously learn and adapt. Scholars of public management, public administration, policy studies, international development, and political science have made important contributions to this problem-orientation turn; however, little systematic attention has been paid to the question of the state capabilities that underpin problem-oriented governance. In this article, we address this gap in the literature. We argue that three core capabilities are structurally conducive to problemoriented governance: a reflective-improvement capability, a collaborative capability, and a dataanalytic capability. The article presents a conceptual framework for understanding each of these capabilities, including their chief constituent elements. It ends with a discussion of how the framework can advance empirical research as well as public-sector reform.Link

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Rule of Law and Female Entrepreneurship

Rule of Law and Female Entrepreneurship. Edward Glaeser, October 2019, Paper, “Commerce requires trust, but trust is difficult when one group consistently fears expropriation by another. If men have a comparative advantage at violence and there is little rule-of-law, then unequal bargaining power can lead women to segregate into low-return industries and avoid entrepreneurship altogether. In this paper, we present a model of female entrepreneurship and rule of law that predicts that women will only start businesses when they have both formal legal protection and informal bargaining power. The model’s predictions are supported both in cross-national data and with a new census of Zambian manufacturers. In Zambia, female entrepreneurs collaborate less, learn less from fellow entrepreneurs, earn less and segregate into industries with more women, but gender differences are ameliorated when women have access to adjudicating institutions, such as Lusaka’s “Market Chiefs” who are empowered to adjudicate small commercial disputes. We experimentally induce variation in local institutional quality in an adapted trust game, and find that this also reduces the gender gap in trust and economic activity.Link

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Shareholder Activism and Firms’ Voluntary Disclosure of Climate Change Risk

Shareholder Activism and Firms’ Voluntary Disclosure of Climate Change Risk. Michael Toffel, October 2019, Paper, “This paper examines whether—in the absence of mandated disclosure requirements—shareholder activism can elicit greater disclosure of firms’ exposure to climate change risks. We find that environmental shareholder activism increases the voluntary disclosure of climate change risks, especially if initiated by investors who are more powerful (institutional investors) or whose request has more legitimacy (long-term institutional investors). We also find that companies that voluntarily disclose climate change risks following environmental shareholder activism achieve a higher valuation, suggesting that investors value transparency with respect to climate change risks.Link

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Business, Ethics and Institutions: The Evolution of Turkish Capitalism in Global Perspectives

Business, Ethics and Institutions: The Evolution of Turkish Capitalism in Global Perspectives. , 2019, Book, “This book is the first systematic scholarly study on the business history of Turkey and its predecessor the Ottoman Empire from the nineteenth century until the present. It places the distinctive characteristics of capitalism in Turkey within a global and comparative perspective, addressing three related issues. First, it examines the institutional context that shaped capitalist development in Turkey. Second, it focuses on the corporate actors, entrepreneurs, and business enterprises that have led national economic growth. Third, it explores the ethical foundations and social responsibility of business enterprises in Turkey.Link

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Regulation and innovation: Examining outcomes in Chinese pollution control policy areas

Regulation and innovation: Examining outcomes in Chinese pollution control policy areas. Richard Freeman, October 3, 2019, Paper, “In this paper, we examine how two regionally implemented environmental initiatives in China have impacted the innovation ability of Chinese-listed firms. The regional implementation of these policies, with non-policy regions serving as controls, offers researchers the perfect conditions for a natural experiment. Using research and development (R&D) expenditures and patents as a proxy for innovativeness, we compare the record of innovation of firms inside the policy zones with firms outside the policy zones. We use a Difference-In-Difference-In-Differences (DIDID) method to eliminate endogeneity and take the quality of the patents into account by incorporating sub-items. Results show only one of the regulations had a positive effect and that low quality patents account for most of the innovation. We conclude that reasonably designed environmental regulations, when implemented regionally in competitive industries, do improve Chinese firms’ innovation ability in line with the Porter Hypothesis. The results help us derive some useful policy implications regarding innovation.Link

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The Law, Corporate Governance, and Economic Justice

The Law, Corporate Governance, and Economic Justice. Mark Roe, September 26, 2019, Paper, “The Chief Justice of the Delaware Supreme Court begins by invoking the New Deal, and expressing admiration for the way its goals and some of its social programs have been put into practice by Northern European social democracies. Most important are their protections for workers and the unemployed—protections the Judge finds deplorably absent in U.S. law and corporate labor practices. Nevertheless, when contemplating how corporate boards in the U.S. might respond to the growing demand for U.S. public companies to address social problems like the environment and economic inequality, the Delaware judge falls back on the prescription of Adolph Berle, who, though one of the framers of the New Deal, insisted that companies “stick to their knitting” by putting shareholders first as the only way of ensuring the accountability of corporate managements and boards.Link

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Rear Visibility and Some Unresolved Problems for Economic Analysis

Rear Visibility and Some Unresolved Problems for Economic Analysis. Cass Sunstein, September 12, 2019, Paper, “In 2014, the National Highway Traffic Safety Administration finalized its rear visibility regulation, which requires cameras in all new vehicles, with the goal of allowing drivers to see what is behind them and thus reducing backover accidents. In 2018, the Trump administration embraced the regulation. The rear visibility rule raises numerous puzzles. First: Congress’ grant of authority was essentially standardless – perhaps the most open-ended in all of federal regulatory law. Second: It is not easy to identify a market failure to justify the regulation. Third: The monetized costs of the regulation greatly exceeded the monetized benefits, and yet on welfare grounds, the regulation can plausibly be counted as a significant success. Rearview cameras produce a set of benefits that are hard to quantify, including increased ease of driving, and those benefits might have been made a part of “breakeven analysis,” accompanying standard cost-benefit analysis.Link

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