Showing papers by "Stockholm School of Economics published in 2020"

Variability in the analysis of a single neuroimaging dataset by many teams

Abstract: Data analysis workflows in many scientific domains have become increasingly complex and flexible. Here we assess the effect of this flexibility on the results of functional magnetic resonance imaging by asking 70 independent teams to analyse the same dataset, testing the same 9 ex-ante hypotheses1. The flexibility of analytical approaches is exemplified by the fact that no two teams chose identical workflows to analyse the data. This flexibility resulted in sizeable variation in the results of hypothesis tests, even for teams whose statistical maps were highly correlated at intermediate stages of the analysis pipeline. Variation in reported results was related to several aspects of analysis methodology. Notably, a meta-analytical approach that aggregated information across teams yielded a significant consensus in activated regions. Furthermore, prediction markets of researchers in the field revealed an overestimation of the likelihood of significant findings, even by researchers with direct knowledge of the dataset2-5. Our findings show that analytical flexibility can have substantial effects on scientific conclusions, and identify factors that may be related to variability in the analysis of functional magnetic resonance imaging. The results emphasize the importance of validating and sharing complex analysis workflows, and demonstrate the need for performing and reporting multiple analyses of the same data. Potential approaches that could be used to mitigate issues related to analytical variability are discussed.

Fintech, financial inclusion and income inequality: a quantile regression approach

Abstract: Although theory suggests that financial market imperfections – mainly information asymmetries, market segmentation and transaction costs – prevent poor people from escaping poverty by limiting thei...

Comparing meta-analyses and preregistered multiple-laboratory replication projects

Abstract: Many researchers rely on meta-analysis to summarize research evidence. However, there is a concern that publication bias and selective reporting may lead to biased meta-analytic effect sizes. We compare the results of meta-analyses to large-scale preregistered replications in psychology carried out at multiple laboratories. The multiple-laboratory replications provide precisely estimated effect sizes that do not suffer from publication bias or selective reporting. We searched the literature and identified 15 meta-analyses on the same topics as multiple-laboratory replications. We find that meta-analytic effect sizes are significantly different from replication effect sizes for 12 out of the 15 meta-replication pairs. These differences are systematic and, on average, meta-analytic effect sizes are almost three times as large as replication effect sizes. We also implement three methods of correcting meta-analysis for bias, but these methods do not substantively improve the meta-analytic results. Kvarven, Stromland and Johannesson compare meta-analyses to multiple-laboratory replication projects and find that meta-analyses overestimate effect sizes by a factor of almost three. Commonly used methods of adjusting for publication bias do not substantively improve results.

Formative Perspectives on the Relation Between CSR Communication and CSR Practices: Pathways for Walking, Talking, and T(w)alking:

Abstract: Within the burgeoning corporate social responsibility (CSR) communication literature, the question of the relationship between CSR practices and CSR communication (or between “walk” and “talk”) has...

Achieving sustainable development goals: predicaments and strategies

Abstract: The ambitious United Nations Sustainable Development Goals (SDGs) have been criticized for being universal, broadly-framed, inconsistent and difficult to quantify, implement and monitor. We contrib ...

Crowdsourcing hypothesis tests: Making transparent how design choices shape research results

Abstract: To what extent are research results influenced by subjective decisions that scientists make as they design studies? Fifteen research teams independently designed studies to answer five original research questions related to moral judgments, negotiations, and implicit cognition. Participants from two separate large samples (total N > 15,000) were then randomly assigned to complete one version of each study. Effect sizes varied dramatically across different sets of materials designed to test the same hypothesis: materials from different teams rendered statistically significant effects in opposite directions for four out of five hypotheses, with the narrowest range in estimates being d = -0.37 to +0.26. Meta-analysis and a Bayesian perspective on the results revealed overall support for two hypotheses, and a lack of support for three hypotheses. Overall, practically none of the variability in effect sizes was attributable to the skill of the research team in designing materials, while considerable variability was attributable to the hypothesis being tested. In a forecasting survey, predictions of other scientists were significantly correlated with study results, both across and within hypotheses. Crowdsourced testing of research hypotheses helps reveal the true consistency of empirical support for a scientific claim.

The Open Innovation in Science research field: a collaborative conceptualisation approach

Abstract: Openness and collaboration in scientific research are attracting increasing attention from scholars and practitioners alike. However, a common understanding of these phenomena is hindered by disciplinary boundaries and disconnected research streams. We link dispersed knowledge on Open Innovation, Open Science, and related concepts such as Responsible Research and Innovation by proposing a unifying Open Innovation in Science (OIS) Research Framework. This framework captures the antecedents, contingencies, and consequences of open and collaborative practices along the entire process of generating and disseminating scientific insights and translating them into innovation. Moreover, it elucidates individual-, team-, organisation-, field-, and society‐level factors shaping OIS practices. To conceptualise the framework, we employed a collaborative approach involving 47 scholars from multiple disciplines, highlighting both tensions and commonalities between existing approaches. The OIS Research Framework thus serves as a basis for future research, informs policy discussions, and provides guidance to scientists and practitioners.

A Theory of Socially Responsible Investment

Abstract: We characterize necessary conditions for socially responsible investors to impact firm behavior in a setting in which firm production generates social costs and is subject to financing constraints. Impact requires a broad mandate, in that socially responsible investors need to internalize social costs irrespective of whether they are investors in a given firm. Impact is optimally achieved by enabling a scale increase for clean production. Socially responsible and financial investors are complementary: jointly they can achieve higher surplus than either investor type alone. When socially responsible capital is scarce, it should be allocated based on a social profitability index (SPI). This micro-founded ESG metric captures not only a firm’s social status quo but also the counterfactual social costs produced in the absence of socially responsible investors.

Talent in Distressed Firms: Investigating the Labor Costs of Financial Distress

Abstract: The importance of skilled labor and the inalienability of human capital expose firms to the risk of losing talent in critical times Using Swedish micro-data, we document that firms lose workers with the highest cognitive and noncognitive skills as they approach bankruptcy In a quasi-experiment, we confirm that financial distress is driving these results: following a negative export shock caused by exogenous currency movements, talent abandons the firm, but only if the exporter is highly leveraged Consistent with talent dependence being associated with higher labor costs of financial distress, firms that rely more on talent have more conservative capital structures

Advancing Qualitative Entrepreneurship Research: Leveraging Methodological Plurality for Achieving Scholarly Impact:

Abstract: This editorial aims to advance the use of qualitative research methods when studying entrepreneurship. First, it outlines four characteristics of the domain of entrepreneurship that qualitative research is uniquely placed to address. In studying these characteristics, we urge researchers to leverage the plurality of different qualitative approaches, including less conventional methods. Second, to help researchers develop high-level theoretical contributions, we point to multiple possible contributions, and highlight how such contributions can be developed through qualitative methods. Thus, we aim to broaden the types of contributions and forms that qualitative entrepreneurship research takes, in ways that move beyond prototypical inductive theory-building.

Rich Pickings? Risk, Return, and Skill in Household Wealth

Abstract: We investigate wealth returns on an administrative panel containing the disaggregated balance sheets of Swedish residents. The expected return on household net wealth is strongly persistent, determined primarily by systematic risk, and increasing in net worth, exceeding the risk-free rate by the size of the equity premium for households in the top 0.01 percent. Idiosyncratic risk is transitory but generates substantial long-term dispersion in returns in top brackets. Systematic and idiosyncratic risk both drive the cross-sectional distribution of the geometric average return over a generation. Furthermore, wealth returns explain most of the historical increase in top wealth shares.

Geographic Lead-Lag Effects

Abstract: We document lead-lag effects on returns between coheadquartered firms in different sectors. Geographic lead-lags yield risk-adjusted returns of 5%–6% annually, half that observed for industry lead-lag effects. Whereas industry lead-lag effects are strongest among small, thinly traded stocks with low analyst coverage, geographic lead-lags are unrelated to these proxies for investor scrutiny. We propose an explanation linked to the structure of the investment analyst business, which is organized by sector, not by geographic region. Our findings suggest that in lead-lag relationships, analysts common to both leading and lagging firms are important, regardless of the number of analysts covering each individually.

Cost of non-alcoholic steatohepatitis in Europe and the USA: The GAIN study.

Abstract: Background & Aims Non-alcoholic steatohepatitis (NASH) leads to cirrhosis and is associated with a substantial socioeconomic burden, which, coupled with rising prevalence, is a growing public health challenge. However, there are few real-world data available describing the impact of NASH. Methods The Global Assessment of the Impact of NASH (GAIN) study is a prevalence-based burden of illness study across Europe (France, Germany, Italy, Spain, and the UK) and the USA. Physicians provided demographic, clinical, and economic patient information via an online survey. In total, 3,754 patients found to have NASH on liver biopsy were stratified by fibrosis score and by biomarkers as either early or advanced fibrosis. Per-patient costs were estimated using national unit price data and extrapolated to the population level to calculate the economic burden. Of the patients, 767 (20%) provided information on indirect costs and health-related quality of life using the EuroQOL 5-D (EQ-5D; n = 749) and Chronic Liver Disease Questionnaire – Non-Alcoholic Fatty Liver Disease (CLDQ-NAFLD) (n = 723). Results Mean EQ-5D and CLDQ-NAFLD index scores were 0.75 and 4.9, respectively. For 2018, the mean total annual per patient cost of NASH was €2,763, €4,917, and €5,509 for direct medical, direct non-medical, and indirect costs, respectively. National per-patient cost was highest in the USA and lowest in France. Costs increased with fibrosis and decompensation, driven by hospitalisation and comorbidities. Indirect costs were driven by work loss. Conclusions The GAIN study provides real-world data on the direct medical, direct non-medical, and indirect costs associated with NASH, including patient-reported outcomes in Europe and the USA, showing a substantial burden on health services and individuals. Lay summary There has been little research into the socioeconomic burden associated with non-alcoholic steatohepatitis (NASH). The GAIN study provides real-world data on the direct medical, direct non-medical, and indirect costs associated with NASH, including patient-reported outcomes in five European countries (UK, France, Germany, Spain, and Italy) and the USA. Mean total annual per patient cost of NASH was estimated at €2,763, €4,917, and €5,509 for the direct medical, direct non-medical, and indirect cost categories, respectively.

Long-run Effects of Lottery Wealth on Psychological Well-being

Abstract: We surveyed a large sample of Swedish lottery players about their psychological well-being 5–22 years after a major lottery event and analysed the data following pre-registered procedures. Relative to matched controls, large-prize winners experience sustained increases in overall life satisfaction that persist for over a decade and show no evidence of dissipating over time. The estimated treatment effects on happiness and mental health are significantly smaller. Follow-up analyses of domain-specific aspects of life satisfaction implicate financial life satisfaction as an important mediator for the long-run increase in overall life satisfaction.

How Did COVID-19 Affect Firms’ Access to Public Capital Markets?

Abstract: We find that bond issues have substantially increased since the onset of the COVID-19 crisis in calendar week 12 (March 16–20) for bonds rated A or higher, but surprisingly also for bonds rated BBB or lower In contrast to existing evidence on bond maturities in economic downturns, we document that maturities exceed those of bonds issued before by the same firms as well as the average maturities during normal times Determinants of corporate bond spreads substantially differ between COVID-19 and normal times Most prominently, asset tangibility has a highly significant negative effect on spreads during normal times During COVID-19, this is reversed, especially in industries heavily affected by lockdown measures, reflecting the inflexibility associated with fixed assets A different picture emerges for equity issues, which slowed considerably during the first 4 weeks of the pandemic, before accelerating again Capital raised during COVID-19 via equity issues is approximately 5% of capital raised via bond issues

Dispositional Positive and Negative Affect and Self-Employment Transitions: The Mediating Role of Job Satisfaction:

Abstract: Affect is increasingly studied within entrepreneurship. We develop a partial mediation model in which positive and negative dispositional affect influences entry into entrepreneurship, suggesting t...

A Meta-Analysis of When and How Advertising Creativity Works

Abstract: Although creativity is often considered a key success factor in advertising, the marketing literature lacks a systematic empirical account of when and how advertising creativity works The authors

Linking customer satisfaction with financial performance: an empirical study of Scandinavian banks

Abstract: It is generally assumed that increased satisfaction levels lead to improved financial performance. However, this assumed relationship is, by and large, still to be proven in a more general setting,...

Learning More with Every Year: School Year Productivity and International Learning Divergence

Abstract: I use unique child-level panel data from Ethiopia, India, Peru, and Vietnam, four developing countries with widely differing levels of student achievement, to study the extent to which differences in the productivity of primary schooling can explain international differences in human capital. I document, using identical tests of quantitative skills across countries, that although some cross-sectional gaps in test scores between these countries are evident at preschool ages, these grow substantially in the first 2–3 years of schooling. By the age of 8 years, differences are particularly stark between Vietnam and the other three countries. Using value-added models, and a regression-discontinuity design based on enrolment guidelines, I show that the causal effect of an extra grade of schooling on test scores is substantially higher in Vietnam by 0.25–0.4 standard deviations compared to the other countries. This differential productivity of a school year accounts for most of the cross-country achievement gap at 8 years of age. Equalizing the exposure to and the productivity of schooling closes the gap with Vietnam almost entirely for Peru and India and by ∼60% for Ethiopian students enrolled.

Decoupling from Moral Responsibility for CSR: Employees' Visionary Procrastination at a SME

Abstract: Most studies of corporate social responsibility (CSR) have focused on the organisational level, while the individual level of analysis has been treated as a ‘black box’ when researching antecedents of CSR engagement or disengagement. This article offers insights into a small and medium-sized enterprise (SME) that is recognised as a pioneer in CSR. Although the extant literature suggests that the owner-manager is crucial in the implementation of CSR, this study reveals that employees drive CSR. The employees in the focal firm voluntarily joined forces based on their shared perception of moral responsibility for CSR and they developed strict targets to be achieved by 2030. Despite their strong ethical and moral perspective when enacting CSR, they disengaged from their moral responsibility for CSR in various contexts. This paper contributes to the theory of moral decoupling by uncovering a novel context of disengagement—‘visionary procrastination’. Visionary procrastination is suggested to be a particularly relevant context of disengagement when individuals perceive moral responsibility for CSR. Moreover, by delivering insights into the antecedents of employee-initiated CSR on the organisational level, this study adds to the growing body of literature on the micro-foundations of CSR.

The Intuitive Cooperation Hypothesis Revisited: A Meta-analytic Examination of Effect-size and Between-study Heterogeneity

Abstract: The hypothesis that intuition promotes cooperation has attracted considerable attention. Although key results in this literature have failed to replicate in pre-registered studies, recent meta-analyses report an overall effect of intuition on cooperation. We address the question with a meta-analysis of 82 cooperation experiments, spanning four different types of intuition manipulations—time pressure, cognitive load, depletion, and induction—including 29,315 participants in total. We obtain a positive overall effect of intuition on cooperation, though substantially weaker than that reported in prior meta-analyses, and between studies the effect exhibits a high degree of systematic variation. We find that this overall effect depends exclusively on the inclusion of six experiments featuring emotion-induction manipulations, which prompt participants to rely on emotion over reason when making allocation decisions. Upon excluding from the total data set experiments featuring this class of manipulations, between-study variation in the meta-analysis is reduced substantially—and we observed no statistically discernable effect of intuition on cooperation. Overall, we fail to obtain compelling evidence for the intuitive cooperation hypothesis.

Many Labs 5: Testing pre-data collection peer review as an intervention to increase replicability

Abstract: Additional co-authors: Ivan Ropovik, Balazs Aczel, Lena F. Aeschbach, Luca Andrighetto, Jack D. Arnal, Holly Arrow, Peter Babincak, Bence E. Bakos, Gabriel Banik, Ernest Baskin, Radomir Belopavlovic, Michael H. Bernstein, Michal Bialek, Nicholas G. Bloxsom, Bojana Bodroža, Diane B. V. Bonfiglio, Leanne Boucher, Florian Bruhlmann, Claudia C. Brumbaugh, Erica Casini, Yiling Chen, Carlo Chiorri, William J. Chopik, Oliver Christ, Antonia M. Ciunci, Heather M. Claypool, Sean Coary, Marija V. Cˇolic, W. Matthew Collins, Paul G. Curran, Chris R. Day, Anna Dreber, John E. Edlund, Filipe Falcao, Anna Fedor, Lily Feinberg, Ian R. Ferguson, Maire Ford, Michael C. Frank, Emily Fryberger, Alexander Garinther, Katarzyna Gawryluk, Kayla Ashbaugh, Mauro Giacomantonio, Steffen R. Giessner, Jon E. Grahe, Rosanna E. Guadagno, Ewa Halasa, Rias A. Hilliard, Joachim Huffmeier, Sean Hughes, Katarzyna Idzikowska, Michael Inzlicht, Alan Jern, William Jimenez-Leal, Magnus Johannesson, Jennifer A. Joy-Gaba, Mathias Kauff, Danielle J. Kellier, Grecia Kessinger, Mallory C. Kidwell, Amanda M. Kimbrough, Josiah P. J. King, Vanessa S. Kolb, Sabina Kolodziej, Marton Kovacs, Karolina Krasuska, Sue Kraus, Lacy E. Krueger, Katarzyna Kuchno, Caio Ambrosio Lage, Eleanor V. Langford, Carmel A. Levitan, Tiago Jesse Souza de Lima, Hause Lin, Samuel Lins, Jia E. Loy, Dylan Manfredi, Łukasz Markiewicz, Madhavi Menon, Brett Mercier, Mitchell Metzger, Venus Meyet, Jeremy K. Miller, Andres Montealegre, Don A. Moore, Rafal Muda, Gideon Nave, Austin Lee Nichols, Sarah A. Novak, Christian Nunnally, Ana Orlic, Anna Palinkas, Angelo Panno, Kimberly P. Parks, Ivana Pedovic, Emilian Pekala, Matthew R. Penner, Sebastiaan Pessers, Boban Petrovic, Thomas Pfeiffer, Damian Pienkosz, Emanuele Preti, Danka Puric, Tiago Ramos, Jonathan Ravid, Timothy S. Razza, Katrin Rentzsch, Juliette Richetin, Sean C. Rife, Anna Dalla Rosa, Kaylis Hase Rudy, Janos Salamon, Blair Saunders, Przemyslaw Sawicki, Kathleen Schmidt, Kurt Schuepfer, Thomas Schultze, Stefan Schulz-Hardt, Astrid Schutz, Ani N. Shabazian, Rachel L. Shubella, Adam Siegel, Ruben Silva, Barbara Sioma, Lauren Skorb, Luana Elayne Cunha de Souza, Sara Steegen, L. A. R. Stein, R. Weylin Sternglanz, Darko Stojilovic, Daniel Storage, Gavin Brent Sullivan, Barnabas Szaszi, Peter Szecsi, Orsolya Szoke, Attila Szuts, Manuela Thomae, Natasha D. Tidwell, Carly Tocco, Ann-Kathrin Torka, Francis Tuerlinckx, Wolf Vanpaemel, Leigh Ann Vaughn, Michelangelo Vianello, Domenico Viganola, Maria Vlachou, Ryan J. Walker, Sophia C. Weissgerber, Aaron L. Wichman, Bradford J. Wiggins, Daniel Wolf, Michael J. Wood, David Zealley, Iris Žeželj, Mark Zrubka, and Brian A. Nosek