Karen M. Hogan, G. Olson, J. Mills, Peter A. Zaleski
{"title":"An Analysis of Cyber Breaches and Effects on Shareholder Wealth","authors":"Karen M. Hogan, G. Olson, J. Mills, Peter A. Zaleski","doi":"10.1080/13571516.2023.2168994","DOIUrl":"https://doi.org/10.1080/13571516.2023.2168994","url":null,"abstract":"Abstract Cyber data breaches are an evolving risk facing all firms and threatens their ability to conduct business activity. Due to a lack of available information, very little is known about the frequency and severity of data breaches and the financial markets’ responses to them. This study uses a unique proprietary data set that includes cyber data breach information for 3,992 publicly traded firms during the 1990 to 2019 period. We find cyber breaches vary with time and cyber criminals focus on particular industries, types of information, access sources, and countries. We find significant short run negative abnormal returns around the announcement of cyber events and larger negative returns in industries with higher frequencies of attacks and attacks involving personal financial information. Additionally, we find increasing negative cumulative abnormal returns up to 250 days after the announcement.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"19 1","pages":"51 - 78"},"PeriodicalIF":1.2,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83803815","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Agostino, L. Errico, Sandro Rondinella, F. Trivieri
{"title":"International Journal of the Economics of Business Best Paper Prize Announcement","authors":"M. Agostino, L. Errico, Sandro Rondinella, F. Trivieri","doi":"10.1080/13571516.2023.2186086","DOIUrl":"https://doi.org/10.1080/13571516.2023.2186086","url":null,"abstract":"The Editors have judged that the 2022 Best Paper Prize be awarded to: Mariarosaria Agostino, Lucia Errico, Sandro Rondinella and Francesco Trivieri for their paper “Lending Relationships and SMEs’ Productivity. Does Social Capital Matter?” The paper encapsulates the scholarly aims of the journal by using microeconomic analysis to examine an issue that is of scholarly interest, and pertinent to both business and policymakers. Specifically, the paper examines the association between social capital and the lending relationship between banks and small firms. Interestingly, social capital is captured as an endowment arising from the institutional context in which banks and firms operate. Therefore, the paper further enhances our understanding of the role of institutional quality in economic activity. Along with recognition from the Journal, the Best Paper Prize includes a cash award for the authors.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"29 1","pages":"121 - 121"},"PeriodicalIF":1.2,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84326319","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"ICT Capital Formation, Unemployment, and the Solow Paradox","authors":"E. Apergis, N. Apergis, James W. Saunoris","doi":"10.1080/13571516.2022.2154490","DOIUrl":"https://doi.org/10.1080/13571516.2022.2154490","url":null,"abstract":"Abstract This study explores the impact of ICT on unemployment and labour productivity. Using a time-varying modelling approach, quarterly US data from 1972 to 2020 estimate the relationships between unemployment and ICT capital investments. The results highlight that ICT capital investments reduce unemployment and increase labour productivity, showing no evidence supporting the Solow Paradox. The mechanisms behind the relationship between ICT and enhanced labour productivity are identified by Data Envelopment Analysis (DEA) and include improved access to information and an improvement in the labour structure.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"5 1","pages":"79 - 105"},"PeriodicalIF":1.2,"publicationDate":"2022-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87822505","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Output Delegation, Collusion Sustainability, and Mergers with Quantity-Setting Firms","authors":"Marc Escrihuela‐Villar","doi":"10.1080/13571516.2022.2154734","DOIUrl":"https://doi.org/10.1080/13571516.2022.2154734","url":null,"abstract":"Abstract We develop a quantity competition model where a subset of firms belongs to a holding firm that can delegate or centralize the output decisions while the other (decentralized) firms make decisions independently. We show that output centralization may have a procompetitive effect because it reduces firms’ incentives to collude among those firms whose decision is made independently. Furthermore, we find that the merger of decentralized firms may also reduce the incentives to collude. Therefore, in our setup, one can interpret that the antitrust authorities should be wary regarding the restrictions imposed on merging firms concerning the decision-making structure because, under some circumstances, centralization might prevent the market as a whole to collude.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"14 1","pages":"107 - 119"},"PeriodicalIF":1.2,"publicationDate":"2022-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87667908","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do Higher Deductibles Slow Health Spending Growth?","authors":"Molly Frean, M. Pauly","doi":"10.1080/13571516.2022.2135883","DOIUrl":"https://doi.org/10.1080/13571516.2022.2135883","url":null,"abstract":"Abstract High health care spending growth is regarded in all countries as a potential policy problem. The potential for patient cost-sharing to reduce spending levels has been studied extensively; however, there has been very little work on how cost-sharing may also influence spending growth. In this paper, we relate deductibles as a measure of cost-sharing to health care spending growth at the market level. We analyze a novel combination of US state-level panel datasets from 2002 to 2012 and find that higher deductible levels in private group insurance are associated with significantly lower spending growth, particularly for pharmaceuticals. We observe similar results in both OLS and instrumental variables models, where we use measures of employer and worker preferences as instruments for deductible levels. We theorize and conclude that cost-sharing affects spending growth by constraining the use of more costly new technology, a major driver of health care spending growth worldwide.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"11 1","pages":"31 - 49"},"PeriodicalIF":1.2,"publicationDate":"2022-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72526562","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Realizing Gender Diversity on Corporate Boards","authors":"Wei Kang, J. Ashton, Ayan Orujov, Yang Wang","doi":"10.1080/13571516.2022.2133337","DOIUrl":"https://doi.org/10.1080/13571516.2022.2133337","url":null,"abstract":"Abstract This study examines the effectiveness of soft law through scrutinizing national policies for enhancing the proportion of women on corporate boards. Soft laws, which have less precision and obligation dimensions than conventional laws, are widespread within financial regulation. Despite this widespread use there relative performance is unexplored. To resolve this, we undertake a comparative examination of 14,012 firms from 99 nations, using a three-stage analysis to examine the effect of different policies, their format and influence of institutional factors on female board representation. We report that soft laws are effective for promoting gender equality on corporate boards. The effectiveness of policies is strongly influenced by the enforcement, implementation and compliance dimensions of policy, and institutional factors. Policies are most potent when enforced using a moderate level of sanctions, with a longer compliance period and a diversity target less distant from a firm’s precedent gender diversity level.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"38 1","pages":"1 - 29"},"PeriodicalIF":1.2,"publicationDate":"2022-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75702203","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Keith M. Drake, Robert He, Thomas G. McGuire, Alice Ndikumana
{"title":"No Free Launch: At-Risk Entry by Generic Drug Firms","authors":"Keith M. Drake, Robert He, Thomas G. McGuire, Alice Ndikumana","doi":"10.1080/13571516.2022.2132808","DOIUrl":"https://doi.org/10.1080/13571516.2022.2132808","url":null,"abstract":"<p><b>Abstract</b></p><p>After receiving FDA approval, a generic drug manufacturer can launch ‘at risk’ before any patent infringement litigation concludes, but it risks paying damages if it ultimately loses the litigation. A generic can eliminate the risk by waiting to launch until after the appeals process is complete but waiting has downsides too. We examine FDA approvals of generic drug applications with ‘first-filer’ status (which precludes other generics from entering beforehand) to examine empirical patterns of at-risk entry. In our data, litigants usually settled prior to a legal decision. For the remainder, drugs that received FDA approval prior to a favorable district court decision were always launched at risk. Generics without FDA approval before a favorable district court decision launched upon approval unless the approval was close in time to the appeal decision, or it had forfeited the first-filer exclusivity (indicating a low cost of waiting).</p>","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"6 3","pages":""},"PeriodicalIF":1.2,"publicationDate":"2022-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138524370","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Can Rivalry in R&D be Harmful Under Supply Function Competition?","authors":"Ismail Saglam","doi":"10.1080/13571516.2022.2138091","DOIUrl":"https://doi.org/10.1080/13571516.2022.2138091","url":null,"abstract":"Abstract We consider a duopoly with cost asymmetry and demand uncertainty and show that rivalry in (process) R&D can be extremely harmful to both firms even in the presence of spillovers if the firms produce under supply function competition. However, if they produce under Cournot competition, firms can earn higher profits in the presence of R&D rivalry than what they could earn when they (mutually) invested in no R&D. We also show that R&D rivalry always works to widen the efficiency gap between the firms under Cournot competition, and also under supply function competition if R&D spillovers are present. On the other hand, consumers’ welfare is affected by R&D rivalry only under supply function competition. Under this competition, consumers always prefer the presence of R&D rivalry with or without spillovers to the absence of R&D rivalry; however, they obtain their highest surplus under R&D rivalry when there are no R&D spillovers.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"1 1","pages":"317 - 344"},"PeriodicalIF":1.2,"publicationDate":"2022-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82961850","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Structure and Competition in the Uruguayan Banking Sector","authors":"Miguel Mello, Jorge Ponce","doi":"10.1080/13571516.2022.2106092","DOIUrl":"https://doi.org/10.1080/13571516.2022.2106092","url":null,"abstract":"Abstract Using quarterly data for Uruguayan banks we find that this sector is a concentrated oligopoly that exhibits global economies of scale. Specific product economies of scale are statistically significant in households and corporate loans. There are economies of scope between varieties of loans, deposits in local currency and portfolio management. The credit market to households is the least competitive, behaving like a monopoly or under implicit collusion. The credit market to firms exhibits greater competition than that suggested by the structure of the market, especially in local currency. Overall, the results suggest that there exists room for development and increasing competition in the Uruguayan banking sector.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"9 1","pages":"271 - 300"},"PeriodicalIF":1.2,"publicationDate":"2022-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87723648","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Performance and Revenues in European Football: Clubs’ Media Visibility and Brand Value","authors":"Alice Aguiar-Noury, Pedro Garcia‐del‐Barrio","doi":"10.1080/13571516.2022.2095889","DOIUrl":"https://doi.org/10.1080/13571516.2022.2095889","url":null,"abstract":"Abstract This paper contributes to understanding the financial situation of European football clubs and the role of their media visibility and historical brand status. By estimating production and revenue equations, the study tests hypotheses concerning the relationships between teams’ sporting performance (current and past), historical status, media exposure, annual revenues, and annual wages. The empirical analysis is carried out on an extensive dataset, which comprises records, for seasons 1995/1996 to 2015/2016, of teams competing in the 1st division of the Premier League, La Liga, Serie A, and Ligue 1. In the study, we use two innovative variables: the Elo Rating, as a ‘proxy’ to capture clubs’ historical sporting status (brand value), and the Media Visibility Index, to measure clubs’ abilities to capture the attention of the fans and the media. These two variables have proven to be key assets in the revenue-generating capacity of European football clubs.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"36 1","pages":"241 - 269"},"PeriodicalIF":1.2,"publicationDate":"2022-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81320220","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}