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I examine whether the time-varying cost of capital is considered in firms’ capital budgeting decisions. For this test, I measure the conditional cost of equity using individual equity option prices. I find that corporate investment responds negatively to fluctuations in the option-implied cost of equity and the weighted average costs of capital. Furthermore, through decomposing marginal $ q $, I reveal that the cost-of-capital elasticity of empirical investment is almost identical to its productivity elasticity, as theory predicts. These findings suggest that firms’ discount rates are updated accurately in practice despite the failure of conventional frameworks, such as factor-based models, in this regard.
This study positions perceived organizational culture's (OC) as an important internal contextual factor that influences employee reactions to change. Drawing on the theory of planned behavior (TPB) and organization theory research, we analyze the mechanisms through which employee perceptions of OC generate its effect on employee responses to organizational change. Data from a field study of 171 employees in Kurdistan Region of Iraq's public school teachers showed that employee perceptions of developmental culture were positively and directly related to their change-supportive intentions (CSIs) and, as suggested by the TPB, its effects are simultaneously mediated by change-related attitude (CRA), subjective norm and perceived behavioral control. However, our findings demonstrated that hierarchical culture was only indirectly related to employee CSIs; this relationship was mediated only by CRA and subjective norm. This study is important because it broadens the remit of OC's role as change agent and provides valuable insight into how OC influences employee responses to change efforts in public organizations.
Benefit–cost analysis (BCA) is often viewed as measuring the efficiency of a policy independent of the distribution of its consequences. The role of distributional effects on policy choice is disputed; either: (a) the policy that maximizes net benefits should be selected and distributional concerns should be addressed through other measures, such as tax and transfer programs or (b) BCA should be supplemented with distributional analysis and decision-makers should weigh efficiency and distribution in policy choice. The separation of efficiency and distribution is misleading. The measure of efficiency depends on the numéraire chosen for the analysis, whether monetary values or some other good (unless individuals have the same rates of substitution between them). The choice of numéraire is not neutral; it can affect the ranking of policies by calculated net benefits. Alternative evaluation methods, such as BCA using a different numéraire, weighted BCA, or a social welfare function (SWF), may better integrate concerns about distribution and efficiency. The most appropriate numéraire, distributional weights, or SWFs cannot be measured or statistically estimated; it is a normative choice.
The chapter makes two arguments. First, the work done in public institutions is meaningful to employees simply because of the organization's publicness. In democracies, governments and public institutions are entrusted to make rules, provide public goods, and oversee common-pool resources. The chapter suggests that workers in public organizations find their jobs to be socially valuable and are motivated by the impact of their daily activities on society at large. The second argument advanced by the chapter is that public organizations can use a number of tools to leverage the meaningfulness of public work. Organizations can design work that creates direct contact between public employees and beneficiaries or alternatively use self-administered interventions to connect employees to beneficiaries. Job crafting is then discussed as a means to improve the meaningfulness of public sector work, and several considerations for public sector job crafting are discussed. The chapter concludes with a discussion of career counseling as a tool for helping public workers fulfill their perceived calling.
This chapter attempts to trace and connect the current economic structure, patterns of trade and the significance of the informal sector in Ghana and Tanzania to socio-economic and historical factors. The chapter then compares and contrasts both countries based on key economic indicators, arguing that colonization and the economic recovery programme (ERP) and the structural adjustment programme (SAP) are the two main factors that have defined the economic structures in both economies.
This article presents the first meta-analysis documenting the extent of publication selection biases in stated preference estimates of the value of a statistical life (VSL). Stated preference studies fail to overcome the publication biases that affect much of the VSL literature. Such biases account for approximately 90% of the mean value of published VSL estimates in this subset of the literature. The bias is greatest for the largest estimates, possibly because the high-income labor market and stated preference estimates from the USA serve as an anchor for the VSL in other higher income countries. Estimates from lower-income countries exhibit less bias but remain unreliable for benefit-cost analysis. Unlike labor market estimates of the VSL, there is no evidence that any subsample of VSL estimates is free of significant publication selection biases. Although stated preference studies often provide the most readily accessible country-specific VSL estimates, a preferable approach to monetizing mortality risk benefits is to draw on income-adjusted estimates from labor market studies in the USA that use Census of Fatal Occupational Injuries risk data. These estimates lack publication selection effects as well as the limitations that are endemic to stated preference methods.
Both the knowledge and technology diffusion literature largely focus on adoption and adaptation at country and firm levels. The literature on how knowledge and technology are transferred, adopted and adapted at the level of the individual remains under-researched. Based on a unique employees and managers MNE in Ghana in 2015 and using social network analysis, this chapter examines the transfer of knowledge at the individual level and presents new evidence on the role of managerial knowledge diffusion from MNEs to host countries. Our results indicate that knowledge flows occurs from MNEs to local people. We, however, found that foreign knowledge transfer, particularly from Chinese MNEs and EU MNEs, is similar. The results also suggest that firm network structures influence knowledge transfer within firms, with the more decentralized MNEs and local workers in Chinese MNEs tending to perform better. In terms of policy recommendation, the chapter suggests that trade policies must focus on the stimulation of FDI inflows through MNEs that have decentralized subsidiary structure as they tend to serve as a better conduit for knowledge transfer to local employees
The chapter adds to the discussion from chapter two by analyzing the roles of leaders and their ability to unleash the power of public service. The theoretical foundation for the role of leaders as visionaries and architects is examined and is complemented by a discussion of relevant empirical research. The chapter then follows two general paths to enhancing pubic service motivation through leadership. First, leaders should clearly articulate mission and vision, strengthening employee mission valence and helping them to achieve their aspirations. Further, leaders should develop leadership styles that inspire followers. Leadership styles should be authentic, but leaders can also develop their personal capacities to embrace optimal leadership strategies. Incorporating the principles of servant leadership by putting followers first and developing charisma are discussed as ways to build means-ends awareness. Leadership styles should be based around effective communication – communication that acknowledges the worth and collective efficacy of followers.
Several developing countries have formulated and implemented Science, Technology and Innovation (STI) policies. However, little remains known about the Science, Technology and Innovation space and the role STI policiesplay in enhancing innovation activitiesin developing countries. This chapter analyses the Science, Technology and Innovation policy space, and presents anunderstanding of their current status and impactsin Ghana and Tanzania. Based on two waves of survey data collected in 2013 and 2015 on formal firms and informal firms in Ghana and Tanzania, our findings suggest that while firms affirm the importance of STI policies, these policies are often poorly planned and implemented poorly. The existence of market and system failures are also found to constraint interactions and the performance of actors in each country's innovation system. The chapter therefore calls for government intervention to enhance the working of the national innovation systems.
The chapter introduces core concepts to be explored throughout the book. The chapter begins by discussing the recent growth in public service motivation research and growth in related intellectual capital. In addition to a growth in research, more practical applications for examining public service values and motivations have emerged. The chapter subsequently addresses the continuing pressure being placed on traditional service systems. In the face of warnings about long-term mismanagement of human capital, governments around the world are under pressure. The chapter then outlines factors that tend to allow civil service systems to persist. Operating rules, which have rational origins as solutions to perceived problems, sensitize actors to values. The evolution of motivation is then discussed, with special attention towards New Public Management, contracting out, agentification, and high-powered incentives. Public service motivation is then proposed to be a foundation for reform. A comprehensive, coherent, evidence-based argument is outlined. The chapter concludes with a description of the organization of the book.