Showing papers on "Empirical research published in 1983"

Strategy-making and environment: The third link

Abstract: Whereas much is known about the relationships between strategy and structure, and between environment and structure, too little is known about a third link—the relationship between strategy-making and environment. An empirical study was conducted upon two distinct samples of firms. We hypothesized that increases in environmental dynamism, hostility and heterogeneity should be related to specific changes in the amount of analysis and innovation which characterizes strategy-making activity. Most of these relationships tended to be much stronger in successful than in unsuccessful samples of firms.

National Cultures in Four Dimensions: A Research-Based Theory of Cultural Differences among Nations

Abstract: (1983). National Cultures in Four Dimensions: A Research-Based Theory of Cultural Differences among Nations. International Studies of Management & Organization: Vol. 13, Cross-Cultural Management: II. Empirical Studies, pp. 46-74.

Mergers and the Performance of the Acquiring Firm.

Abstract: Do mergers provide real benefits to acquiring firms? If not. as empirical studies completed mostly in the field of finance conclude, then why do firms continue to merge? If mergers do provide real benefits, as the literature of industrial organizations and strategic management suggest, then why haven't the empirical studies found any evidence of real benefits? By integrating the conclusions on mergers from the above three disciplines, these questions are addressed.

The Hierarchy of the Sciences

Abstract: For 200 years it has been assumed that the sciences are arranged in a hierarchy, with developed natural sciences like physics at the top and social sciences like sociology at the bottom. Sciences at the top of the hierarchy presumably display higher levels of consensus and more rapid rates of advancement than those at the bottom. A distinction is made between two classes of knowledge: the core, or fully evaluated and universally accepted ideas which serve as the starting points for graduate education, and the research frontier, or all research currently being conducted. Data are presented from a set of empirical studies which show that, at the top and at the bottom of the hierarchy in either cognitive consensus or the rate at which new ideas are incorporated. It is concluded that in all sciences knowledge at the research frontier is a loosely woven web characterized by substantial levels of disagreement and difficulty in determining which contributions will turn out to be significant. Even at the research...

The Effect of Shareholding Dispersion on the Degree of Control in British Companies: Theory and Measurement

Abstract: Since A. A. Berle and G. C. Means published The Modern Corporation and Private Property in I932 their thesis of the separation of corporate ownership from control has given rise to a large literature devoted to elaborating, refuting or testing it. Much theoretical and empirical work has been done on the effects of variation in the location or type of control on company behaviour and performance. Two features which emerge very strongly from this literature are, first, that theoretical categories of 'control type' used are frequently based on a simple dichotomy into 'owner-controlled' versus ' management-controlled' firms rather than a continuum and, second, the corresponding measure of 'control type' is usually a zero-one dummy variable defined on the basis of some arbitrary statistical criterion in terms of the size of a controlling shareholding. Such criteria are usually applied rigidly to all firms with no allowance for differences in shareholding dispersion. This is illustrated by Table i which lists the result of a survey (meant to be representative rather than exhaustive) of methods of classification used in twenty empirical studies. In all these studies the location of control is either the main focus of the analysis or else an explanatory variable in multiple regression analyses (typically with company growth and/or profitability as the dependent variable). Eighteen of them use shareholdings as the main criterion, of which seventeen use the size of the largest bloc (including family holdings) as the relevant variable. This bloc ranges in size from 25 % down to 4 % with io o% and 5 % respectively as the most popular criteria. Berle and Means (I 932), Kamerschen (I968) and Larner (I970) take some account of dispersion in a subjective way; by using their own judgements. Kania and McKean's (I976) variation of their criterion according to the size ranking of the corporation may be interpreted as a rough-and-ready method of allowing for dispersion, making use of the fact that it tends to increase with firm size. The majority of the studies in Table i take no account of the dispersion of the remaining shareholdings, even though some of them go to some lengths to consider other criteria besides shareholding size. Whilst it has always been recognised that the dispersion of the smaller shareholdings has been relevant to control, a major obstacle has been the lack of a suitable way of summarising it. In general there are two approaches to summarising shareholder-size dis-

A Cognitive-Social Learning Model of Social-Skill Training.

Abstract: Prior efforts to systematicall y organize and define the growing area of social-skill training with children are characterized by several major shortcomings that may impede the progress of future research. As an alternative, the present article explores the purposes, methods, major findings, and future directions of socialskill training research from the perspective of a cognitive-social learning explanation of behavior change. Social-learning principles are utilized to provide both an explanatory framework and a potential technology for social-skill training methodology. Attention is devoted to conceptualizi ng skill-trainin g methods in terms of theoretically derived variables and components as well as formal properties of training. Findings from empirical research are reviewed with respect to important or promising variables, their hypothesized function in behavior change, and their demonstrated effects on children's social behavior. Current and future research trends are discussed in light of the proposed model and available empirical evidence. During the last two decades, investigators working within developmental, clinical, and educational disciplines have contributed to a growing body of literature on social-skill training with children. Social skills, as denned in this article, refer to children's ability to organize cognitions and behaviors into an integrated course of action directed toward culturally acceptable social or interpersonal goals. Also included in this definition is the propensity to continuously assess and modify goal-directed behavior so as to maximize the likelihood of reaching one's goals. Current research efforts reflect a common interest in social behavioral change during childhood and a commitment to training paradigms based on principles of learning and instruction. Despite these similarities, it is apparent that investigations within each discipline differ in terms of analytic and technological objectives and thus scientific and practical contributions.

The Production and Inventory Behavior of the American Automobile Industry

Abstract: Understanding inventory movements is central to an understanding of business cycles. This paper presents an empirical study of the behavior of inventories in the automobile industry. It finds that inventory behavior is well explained by the assumption of intertemporal optimization with rational expectations. The underlying cost structure appears to have substantial costs of changing production as well as substantial costs of being away from target inventory, thelatter being a function of current sales. Given this cost structure, whether inventory behavior is stabilizing or destabilizing depends on the characteristics of the demand process. In the automobile industry, inventory behavior is destabilizing: the variance of production is larger than the variance of sales.

Empirical Studies of Exchange Rates: Price Behavior, Rate Determinationand Market Efficiency

Abstract: Theoretical and empirical research completed over the last decade has dramatically increased our understanding of exchange rate behavior The major insight to come from this decade of research is that foreign exchange is a financial asset In an asset pricing framework, current exchange rates reflect the expected values of future exogenous variables The purpose of this paper is to survay the empirical evidence on exchange rate behavior, market efficiency and related topics Section 2 presents a stylized history of exchange rate behavior during 1970's Alternative measures of volatility and transaction costs are reviewed Tests of specific exchange rate determination models are presented in Section 3 Empirical studies have been fairly successful in constructing models to explain cross-sectional exchange rate differences and to explain time series exchange rate developments over the medium-run and long-run Following the asset market framework , recent studies have demonstrated that unanticipated exchange rate changes are significantly correlated with "news" concerning fundamental macroeconomic variables Evidence on foreign exchange market efficiency is summurized in Section 4 Efficiency studies remain difficult to formulate (because of small samples and unobserved variables) and difficult to interpret ( because of the joint hypothesis problem) Several recent studies claim that speculative profit opportunities are present, but it is unclear whether these are related to risk premiums or actual market inefficiencies

APPROVAL VOTING Some Recent Empirical Evidence

Abstract: Approval voting has been offered by a number of formal theorists, notably Steven Brams and Peter Fishburn (1983), as a solution to problems occasioned by multicandidate elections. The formal development of approval voting has spurred a number of empirical studies. This note adds to the empirical literature on approval voting by presenting recent evidence in the form of CPS data on the 1980 elections and exit poll data on the 1981 New Jersey gubernatorial primaries. The New Jersey exit poll was the first survey designed specifically to tap the potential consequences of approval voting. These data reveal that plurality voting obscured the acceptability of Reagan and Carter to their respective party identifiers. They also confirm John Anderson's victimization by the “wasted vote” syndrome, and the fact that the victors of the New Jersey gubernatorial primaries were Condorcet candidates. Additional data on public receptivity to approval voting are also presented.

The Sociology of Values

Abstract: The history of the concept of values is reviewed from its beginnings in the 19th century to the present Work on values rose to preeminence under Talcott Parsons and his associates during 1950-1965, Nevertheless, the theory they produced was flawed: It lacked sophisticated empirical support, imposed preordained categories on reality, and was formulated at an unresearchable level of abstraction Alternative theories of values fared only somewhat better More vibrant is the long tradition of (nonParsonian) empirical studies in various subject areas (eg achievement, religion) This body of work, however, is ad hoc in nature: The data produced are essentially noncomparable and do not advance the concerns of value theory The recent work of Kohn (on class and values) and Rokeach (on general value systems) has begun to remedy the situation It is suggested that value analysis of the future can only solve past ditficulties if (a) it develops grounded theory and research methods—ie, hypotheses and techniques t

Understanding and conducting event studies

Abstract: Event studies have become one of the most important methodological approaches to empirical research in frnance and accounting. This paper discusses the nature of event studies, differentiating the four basic types: information content, market efficiency, model evaluation and metric explanation. A structure is identified for the conduct of event studies and the steps discussed. Specific studies in the literature are cited as illustrations of various points. Finally, a number of issues of interpretation, evaluation and design are discussed which are crucial to the effective conduct and understanding of an event study.

Economic Theory and Government Technology Policy

Abstract: Recent federal proposals and program experiments aimed at improving the innovative performance of American industry have been based on an inappropriate analytic framework. The neoclassical microeconomic analysis upon which these proposals are based emphasizes the undersupply of R & D. However, a more crucial problem in this context is the utilization of complex research results by firms and industries with low levels of in-house research expertise. This problem is a central concern of an alternative approach to the analysis of innovation, termed the information processing framework. This analytic approach, which receives empirical support from an examination of previous cooperative research programs in the United States and Great Britain and an analysis of independent consulting firms' operations, suggests that cooperative or extramural research does not function effectively as a substitute for in-house research. Public policies to encourage innovation should be attentive to the distribution, as well as the supply, of R & D.

Determinants of site of death among hospice cancer patients.

Abstract: Despite its social, cultural, and psychological salience, few empirical studies have examined the factors influencing site of death. Data describing cancer patients served by hospices participating in the National Hospice Study (NHS) were used to explore the relative importance of patients' sociodemographic, support-network, and physical-health characteristics, as well as health-system factors, in predicting whether patients die at home or in a medical setting. The site of death of 69.9 percent of the 3257 patients was correctly predicted. Whether the hospice serving a patient had beds was the dominant predictor, even when controlling for differences in the types of patients served by hospices with and without beds. Findings suggest that bed availability influences clinical decisions of appropriateness and may override personal preferences.

Tax Policy, the Interest Elasticity of Saving, and Capital Accumulation: Numerical Analysis of Theoretical Models

Abstract: Increasing disillusionment with traditional empirical methods is having a major impact on research methodology, which is increasingly turning to simulation analysis based on theoretical models and assumed parameter values. In research on saving and wealth accumulation, there have been several recent studies' consisting of simulation of theoretical models based on the life cycle model. A particular focus has been tax policy and capital formation, which is the area of concentration of this paper. The aim is to analyze in a theoretical simulation context, the impact on saving and wealth of an increase in the after-tax rate of return to saving, generated by a cut in the tax rate on income from capital. This paper suggests that such simulation analysis, while instructive as to the behavior of the class of models examined, and as to the critical channels of influence, does not yield a theoretical presumption in favor of cutting taxes on income from capital as a means of stimulating capital formation. The development of this literature derives in part from disillusionment with traditional empirical methods; many such papers begin by listing a litany of the problems involved in the usual type of empirical analysis before proceeding to simulation of theoretical structures. The implicit conclusion at times appears to be that because of the daunting problems of standard empirical methodology, the results derived from it can be ignored, and that empirical magnitudes can perhaps be discovered by deductive means. The temptation to think of the precise numerical results derived from theoretical simulation as empirical can be rather strong; it needs to be reemphasized that empirical magnitudes can only be determined by empirical studies. In Section I, the theoretical structure of a zero bequest life cycle model2 is outlined, and several numerical simulations of this model are presented. These simulations highlight interesting and nontrivial interactions of theoretical parameters, and also demonstrate the difficulty involved in attempts to develop robust aggregate implications from such a framework. For instance, it is argued that Summers' claim to have developed "a prima facie theoretical case for a high interest elasticity of savings" (1981a, p. 537) does not stand up to sensitivity analysis-a small change in the assumed rate of pure time preference, or in other parametric assumptions, generate otherwise plausible cases in which "the" interest elasticity of aggregate saving is low. The experiments conducted in Section I are partial equilibrium in the sense that the interest rate is changed exogenously, which changes savings and hence the capital stock, but the feedback effect of the capital *International Monetary Fund. This paper derives from chs. 2 and 3 of my doctoral dissertation, completed during a Research Fellowship at the Brookings Institution. Financial support was received from Brookings and the Social Science Research Council. I am grateful to Henry Aaron, Barry Bosworth, Maxim Engers, Irwin Friend, Laurence Kotlikoff, Franco Modigliani, Joseph Pechman, Duncan Ripley, Robert Shiller, Patricia Stack, and my supervisor Albert Ando for comments and guidance on earlier drafts. None of the above institutions or individuals is responsible for the views expressed or any remaining errors. 'For example, see James Tobin and Walter Dolde; Betsy White; Lawrence Summers (1978, 1981a,b), G. Moore; Alan Auerbach and Laurence Kotlikoff; and Auerbach, Kotlikoff, and J. Skinner. 2It is popular to establish a sharp dichotomy between "life cycle models" and "bequest models." This taxonomy ignores the frequent references to the potential significance of bequests in the writings of the originators of the life cycle hypothesis. A distinction between "zero bequest life cycle models" and "life cycle models incorporating bequests" is more accurate in terms of doctrinal history. See for example, Albert Ando and Franco Modigliani, and Modigliani and Richard Brumberg.

Cross-Cultural Management: Issues to Be Faced

Abstract: (1983). Cross-Cultural Management: Issues to Be Faced. International Studies of Management & Organization: Vol. 13, Cross-Cultural Management: II. Empirical Studies, pp. 7-45.

The Impact of Subsidies on X-Efficiency in LDC Industry: Theory and an Empirical Test

Abstract: THE X-inefficiency costs of protection and industrial concentration have been topics of considerable interest in the literature on economic development. Balassa (1975) and Bergsman (1974), for example, have argued that protection, by increasing X-inefficiency, generates a major welfare cost which is not captured by traditional costs of protection calculations, and White (1976) has examined the relationship between inappropriate factor intensities which he associates with Xinefficiency and industrial concentration. The common theme which emerges from each of these studies is that public policy can have a major impact on economic performance not only by influencing factor proportions, but also by influencing the intensity with which a non-measurable input, X-efficiency, is employed. Despite the intuitive appeal of the X-efficiency concept there have been very few empirical tests of this hypothesis. This partly reflects the imprecise nature of the basic concept but also the lack of adequate micro economic data. X-efficiency clearly relates to efficiency within firms so that the most appropriate tests would rely on data on firm-level efficiency. In this paper we propose a direct test of the X-efficiency hypothesis using firm-level data. We build on previous work by Corden (1970, 1974) and Martin (1978) who showed how to model X-efficiency effects using the concept of " managerial leisure." We extend these simple models of managerial behavior, emphasizing the role of the external managerial labor market. The model is then used to explore the relationship between changes in public policy, managerial effort and X-inefficiency. Certain predictions of the model are tested using cross-section data from a survey of firms in two subsidized industries in Ghana. Efficiency indices are computed on the basis of a translog frontier production function. Variations in relative efficiency are then correlated with several explanatory variables including the presence or absence of subsidy payments to the firm. Subsidized firms in both industries are found to exhibit higher relative levels of X-inefficiency.

A classification of citation roles for the social sciences and related fields

Abstract: The paper proposes a classification scheme for the roles of citations in empirical studies from the social sciences and related fields. The use of the classification, which has eight categories, is illustrated in sociology, education, demography, epidemiology and librarianship; its association with the citations' location within the paper is presented. The question of repeated citations of the same document is discussed. Several research questions to which this classification is relevant are proposed. The need for further critique, validation and experimentation is pointed out.

Economic individualism and american public opinion

Abstract: This article presents an initial step toward integrating cultural beliefs into the empirical study of public opinion and mass belief systems. The specific focus of the analysis is economic individu...

Thinking Internationally: A Comparison of How International Executives Learn

Abstract: (1983). Thinking Internationally: A Comparison of How International Executives Learn. International Studies of Management & Organization: Vol. 13, Cross-Cultural Management: II. Empirical Studies, pp. 139-150.

Monopoly Power and Expense-Preference Behavior: Theory and Evidence to the Contrary

Abstract: The expense-preference theory of the firm implies that in noncompetitive product markets, managers hire labor beyond the profit-maximizing level This theory has recently received empirical support from Edwards (1977) and Hannan and Mavinga (1980) In this article it is shown that for expense-preference behavior to exist, the effectiveness of the technology for conflict control between shareholders and managers must be related to market structure, which is a tenuous proposition Further, once differences in monitoring costs due to variation in firm size are controlled for, the empirical evidence supports managerial profit-maximizing rather than expense-preference behavior

Empirical Studies of Exchange Rates: Price Behavior, Rate Determinationand Market Efficiency

Abstract: Theoretical and empirical research completed over the last decade has dramatically increased our understanding of exchange rate behavior. The major insight to come from this decade of research is that foreign exchange is a financial asset. In an asset pricing framework, current exchange rates reflect the expected values of future exogenous variables. The purpose of this paper is to survay the empirical evidence on exchange rate behavior, market efficiency and related topics. Section 2 presents a stylized history of exchange rate behavior during 1970's. Alternative measures of volatility and transaction costs are reviewed. Tests of specific exchange rate determination models are presented in Section 3. Empirical studies have been fairly successful in constructing models to explain cross-sectional exchange rate differences and to explain time series exchange rate developments over the medium-run and long-run. Following the asset market framework , recent studies have demonstrated that unanticipated exchange rate changes are significantly correlated with "news" concerning fundamental macroeconomic variables. Evidence on foreign exchange market efficiency is summurized in Section 4. Efficiency studies remain difficult to formulate (because of small samples and unobserved variables) and difficult to interpret ( because of the joint hypothesis problem). Several recent studies claim that speculative profit opportunities are present, but it is unclear whether these are related to risk premiums or actual market inefficiencies.

The social psychology of driving behaviour and the traffic environment: research on aggressive behaviour in traffic

Abstract: This Dutch study attempted to determine whether it is possible to provide empirical support for the supposition that there is widespread aggression in road traffic. Concepts employed in the study are defined, the research methodology is described, and the conclusions drawn are presented. The actual behaviour of drivers was observed both in traffic and other situations and was followed by personal interviews. Drivers' behaviour was scored either as aggressive or not aggressive. Thus, verbal and actual behaviours were compared and variables related to aggression in the traffic situations were further investigated. The results were analyzed in terms of driver's sex, age, time and place of crossing, and the sex of the pedestrian walking across the crossing. It was found that drivers display aggressive behaviour in conflict situations on Dutch pedestrian crossings, and that it is particularly marked in the case of younger men and male pedestrians. Such behaviour is most frequent in the afternoon and during business and commercial driving. Cross cultural comparisons are made. It is suggested that respect for other road users is something that needs to be encouraged among Dutch drivers.

Value Systems, Strategies and the Performance of Small and Medium-Sized Firms:

Abstract: Ingolf Bamber is Professor of Management and Director of the Department "Strategie & Structures" of the Institut de Gestion de Rennes, University of Rennes, France. He is the initiator and co-ordinator of an international research project on "the value systems of small and medium-sized firms' managers and their impact on the strategic behaviour and the performance of their firms". Research teams from 7 European countries are participating in the empirical investigation whose pretest is in progress. The article describes the theoretical and methodological bases of the project. It treats, especially, the possibilities and the problems of measurement of values, objectives and strategies, gives an overview on empirical studies in the field of SME and describes the research design, the methodology chosen as well as the fundamental hypotheses of the project.

Social‐emotional development of gifted children and adolescents: A research model

Abstract: This article summarizes the contradictory evidence regarding the social and emotional stability of gifted youngsters. While the research literature tends to support a view of equal or superior adjustment, an increasing concern for the mental health of gifted students is emerging among professionals and in the media. Six factors are discussed which suggest particular sources of stress for the gifted. Finally, a research model capable of both generating empirical studies and integrating the results from diverse investigators is suggested.

Presidential Popularity and Macroeconomic Performance: Are Voters Really So Naive?

Abstract: F OLLOWING the pioneering work of Kramer (1971), numerous studies have analyzed the relationships between the macroeconomic performance of political administrations and their popularity or vote-getting ability. Kramer's work showed that the aggregate congressional vote for an incumbent party can be explained rather well by variables indicating recent economic performance. Subsequent works have extended Kramer's research by explaining presidential vote or Gallup Poll popularity data with similar models.' On one point almost all of these studies agree:2 votes and popularity can be explained well by models which suppose that voters judge policymakers on the basis of retrospective evaluation of past macroeconomic outcomes. Most authors interpret their results as being supportive of the hypothesis of "rational" voters, since the evidence indicates that voting decisions are not based purely upon personalities, party affiliation, or chance. Kramer argued that if voters regard past macroeconomic performance of an administration to be indicative of future performance, then a concern with past performance indicates a concern for future performance. Voters who simply extrapolate from the past to predict the future are rather naive, however. A "sophisticated" voter, who has an understanding of the important intertemporal constraints embodied in the structure of the economy, would be able to forecast future consequences of current policy choices more accurately than one who simply extrapolates. If votes and popularity are simply functions of past outcomes, then voters must either be ignorant of the basic structure of the economy, or unconcerned with the future. The supposition that voters are so naive might run counter to the intuition of most economists, who generally assume individual rationality as a central behavioral postulate. Nevertheless, the empirical results noted above have been accepted by many as evidence that voters do misperceive their own long-run interest. The implications of the naive voter hypothesis for macroeconomic policymaking are disturbing. Nordhaus (1975) has developed a model which shows that voter naivete can encourage vote maximizing politicians to induce political business cycles and an inflationary bias. There is some, but not unanimous, empirical support for the existence of politically motivated business cycles, and casual empiricism also suggests that politicians themselves believe in the naive voter.3 While studies show that empirical evidence is consistent with the notion that voters are concerned with the recent past, the results do not reject a "sophisticated" voter hypothesis. None of the aforementioned studies has tested a model consistent with a sophisticated voter hypothesis, i.e., a model in which voters understand what outcomes are feasible in the long and short runs, and are concerned with future as well as current and past economic performance. In this paper we develop such a model and estimate it using Gallup Poll data on presidential popularity. Results of this model are compared to results from a "naive" voter model similar to those employed in previous research. Received for publication February 4, 1982. Revision accepted for publication July 30, 1982. University of South Carolina. I am grateful for helpful comments provided by Ray Fair, Douglas Hibbs, William Keech, Daniel Richards, Abel L. Da Costa Fernandes, and an anonymous referee. I also wish to thank William Keech for providing me with the Gallup Poll data on presidential approval rates. Aurel Schubert provided excellent research assistance. ' Fair (1978a), Bloom and Price (1975), Arcelus and Meltzer (1975), and Pollard (1981 a, 1981 b) have all estimated models to explain voting, while Frey and Schneider (1978) and Hibbs (I 982a, 1982b) have developed models to explain presidential popularity. 2 An exception is provided by Arcelus and Meltzer (1975). 3Nordhaus (1975) and Tufte (1978) have provided evidence of political business cycles for a number of Western democracies, and Frey and Schneider (1978) and Maloney and Smirlock (1981) have estimated policy "reaction" functions suggesting that the timing of elections affects policymaking. See Tufte for a discussion of casual empirical evidence indicating that politicians believe that current economic conditions affect electoral outcomes.