Do Activist Hedge Funds Target Female CEOs? The Role of CEO Gender in Hedge Fund Activism
Bill Francis, Iftekhar Hasan, Yinjie (Victor) Shen, Qiang Wu
Journal of Financial Economics,
Nr. 1,
2021
Abstract
Using a comprehensive US hedge fund activism dataset from 2003 to 2018, we find that activist hedge funds are about 52% more likely to target firms with female CEOs compared to firms with male CEOs. We find that firm fundamentals, the existence of a “glass cliff,” gender discrimination bias, and hedge fund activists’ inherent characteristics do not explain the observed gender effect. We also find that the transformational leadership style of female CEOs is a plausible explanation for this gender effect: instead of being self-defensive, female CEOs are more likely to communicate and cooperate with hedge fund activists to achieve intervention goals. Finally, we find that female-led targets experience greater increases in market and operational performance subsequent to hedge fund targeting.
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Entry into Self-employment and Individuals’ Risk-taking Propensities
Matthias Brachert, Walter Hyll, Abdolkarim Sadrieh
Small Business Economics,
Nr. 4,
2020
Abstract
Most of the existing empirical literature on self-employment decisions assumes that individuals’ risk-taking propensities are stable over time. We allow for endogeneity on both sides when examining the relationship between individual risk-taking propensities and entry into self-employment. We confirm that a greater risk-taking propensity is associated with a higher probability of entering self-employment. However, we also find evidence that entering self-employment is associated with a significant and substantial increase in an individual’s propensity to take risks. Our findings add to the growing evidence that risk-taking propensities are not only inborn, but also determined by environmental factors.
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Changing Business Dynamism and Productivity: Shocks versus Responsiveness
Ryan A. Decker, John Haltiwanger, Ron S. Jarmin, Javier Miranda
American Economic Review,
Nr. 12,
2020
Abstract
The pace of job reallocation has declined in the United States in recent decades. We draw insight from canonical models of business dynamics in which reallocation can decline due to (i) lower dispersion of idiosyncratic shocks faced by businesses, or (ii) weaker marginal responsiveness of businesses to shocks. We show that shock dispersion has actually risen, while the responsiveness of business-level employment to productivity has weakened. Moreover, declining responsiveness can account for a significant fraction of the decline in the pace of job reallocation, and we find suggestive evidence this has been a drag on aggregate productivity.
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Employment Effects of Introducing a Minimum Wage: The Case of Germany
Oliver Holtemöller, Felix Pohle
Economic Modelling,
July
2020
Abstract
Income inequality has been a major concern of economic policy makers for several years. Can minimum wages help to mitigate inequality? In 2015, the German government introduced a nationwide statutory minimum wage to reduce income inequality by improving the labour income of low-wage employees. However, the employment effects of wage increases depend on time and region specific conditions and, hence, they cannot be known in advance. Because negative employment effects may offset the income gains for low-wage employees, it is important to evaluate minimum-wage policies empirically. We estimate the employment effects of the German minimum-wage introduction using panel regressions on the state-industry-level. We find a robust negative effect of the minimum wage on marginal and a robust positive effect on regular employment. In terms of the number of jobs, our results imply a negative overall effect. Hence, low-wage employees who are still employed are better off at the expense of those who have lost their jobs due to the minimum wage.
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The Effects of Graduating from High School in a Recession: College Investments, Skill Formation, and Labor-Market Outcomes
Franziska Hampf, Marc Piopiunik, Simon Wiederhold
CESifo Working Paper,
Nr. 8252,
2020
Abstract
We investigate the short- and long-term effects of economic conditions at high-school graduation as a source of exogenous variation in the labor-market opportunities of potential college entrants. Exploiting business cycle fluctuations across birth cohorts for 28 developed countries, we find that bad economic conditions at high-school graduation increase college enrollment and graduation. They also affect outcomes in later life, increasing cognitive skills and improving labor-market success. Outcomes are affected only by the economic conditions at high-school graduation, but not by those during earlier or later years. Recessions at high-school graduation narrow the gender gaps in numeracy skills and labor-market success.
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Jobs and Matches: Quits, Replacement Hiring, and Vacancy Chains
Yusuf Mercan, Benjamin Schoefer
American Economic Review: Insights,
Nr. 1,
2020
Abstract
In the canonical DMP model of job openings, all job openings stem from new job creation. Jobs denote worker-firm matches, which are destroyed following worker quits. Yet, employers classify 56 percent of vacancies as quit-driven replacement hiring into old jobs, which evidently outlived their previous matches. Accordingly, aggregate and firm-level hiring tightly track quits. We augment the DMP model with longer-lived jobs arising from sunk job creation costs and replacement hiring. Quits trigger vacancies, which beget vacancies through replacement hiring. This vacancy chain can raise total job openings and net employment. The procyclicality of quits can thereby amplify business cycles.
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Payroll Taxes, Firm Behavior, and Rent Sharing: Evidence from a Young Workers' Tax Cut in Sweden
Emmanuel Saez, Benjamin Schoefer, David Seim
American Economic Review,
Nr. 5,
2019
Abstract
This paper uses administrative data to analyze a large employer-borne payroll tax rate cut for young workers in Sweden. We find no effect on net-of-tax wages of young treated workers relative to slightly older untreated workers, and a 2–3 percentage point increase in youth employment. Firms employing many young workers receive a larger tax windfall and expand right after the reform: employment, capital, sales, and profits increase. These effects appear stronger in credit-constrained firms. Youth-intensive firms also increase the wages of all their workers collectively, young as well as old, consistent with rent sharing of the tax windfall.
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Do Diasporas Affect Regional Knowledge Transfer within Host Countries? A Panel Analysis of German R&D Collaborations
Lutz Schneider, Alexander Kubis, Mirko Titze
Regional Studies,
Nr. 1,
2019
Abstract
Interactive regional learning involving various actors is considered a precondition for successful innovations and, hence, for regional development. Diasporas as non-native ethnic groups are regarded as beneficial since they enrich the creative class by broadening the cultural base and introducing new routines. Using data on research and development (R&D) collaboration projects, the analysis provides tentative evidence that the size of diasporas positively affects the region’s share of outward R&D linkages enabling the exchange of knowledge. The empirical analysis further confirms that these interactions mainly occur between regions hosting the same diasporas, pointing to a positive effect of ethnic proximity rather than ethnic diversity.
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Effekte der Einführung des gesetzlichen Mindestlohns: Eine Fallstudie für das Handwerk in Sachsen-Anhalt
Hans-Ulrich Brautzsch, Birgit Schultz
Wirtschaft im Wandel,
Nr. 5,
2018
Abstract
Knapp 8% der Beschäftigten in den Handwerksbetrieben Sachsen-Anhalts verdienten vor der Einführung des gesetzlichen Mindestlohns zu Beginn des Jahres 2015 brutto weniger als 8,50 Euro je Stunde. Allerdings differiert die Betroffenheit stark. In den besonders betroffenen Gewerken war zu befürchten, dass die durch den Mindestlohn induzierte Kostensteigerung zu einem spürbaren Beschäftigungsabbau führt. In diesem Kontext werden drei Fragen untersucht: (1) Wie hoch war die Mindestlohnbetroffenheit im Handwerk in Sachsen-Anhalt? (2) Welche – über die Lohnkostenerhöhung hinausgehenden – Effekte hatte die Mindestlohneinführung in den Handwerksbetrieben? (3) Welche Ausweichreaktionen haben die Handwerksbetriebe unternommen, um die höhere Kostenbelastung zu bewältigen? Die Untersuchungen basieren auf den von den Handwerkskammern Halle und Magdeburg durchgeführten Konjunkturumfragen, die in Kooperation mit dem IWH um zusätzliche Fragen zur Mindestlohneinführung erweitert wurden. Die Ergebnisse der Schätzungen zeigen keine signifikanten Beschäftigungseffekte infolge der Einführung des gesetzlichen Mindestlohns. Vielmehr haben die Handwerksbetriebe vor allem mit Preiserhöhungen reagiert.
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Auswirkungen des gesetzlichen Mindestlohns im Handwerk in Sachsen-Anhalt
Hans-Ulrich Brautzsch, Birgit Schultz
Zeitschrift für Wirtschaftspolitik,
Nr. 2,
2018
Abstract
This paper examines the effects of the minimum wage introduction in Germany in 2015 on the skilled crafts sector in Saxony-Anhalt.
Using novel survey data on the skilled crafts sector in Saxony-Anhalt, we examine three questions: (1) How many employees are affected by the minimum wage introduction in the skilled crafts sector in Saxony-Anhalt? (2) What are the effects of the minimum wage introduction? (3) How did firms react to wage increase?
We find that about 8 % of all employees in the skilled crafts sector in Saxony-Anhalt are directly affected by the minimum wage introduction. A difference-in-difference estimation reveals no significant employment effects of the minimum wage introduction. We test for alternative adjustment strategies and observe a significant increase of output prices.
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