Fabiano Schivardi, Tom Schmitz, 01 October 2019

Productivity growth in southern Europe has been lower than in other developed countries. The column argues that this has in large part been caused by slow adoption of information technology, compounded by inefficient management. Without improvements in management practices, increased IT spending will not close the productivity gap.

Achyuta Adhvaryu, Sadish Dhakal, Namrata Kala, Anant Nyshadham, 29 September 2019

The impact of environmental conditions on worker productivity provides an opportunity to study the effectiveness of management practices in increasing worker efficiency. This column uses evidence from Indian garment factories to show how air pollution reduces the relative productivity of workers in tasks in which they are otherwise more efficient. Effective managers can respond by reallocating workers to other tasks in order to bring total productivity losses to near zero. 

Achyuta Adhvaryu, Sadish Dhakal, Anant Nyshadham, Jorge Tamayo, 19 August 2019

Managerial quality remains low in firms in developing countries. In the context of the Indian garment industry, this column shows that manager characteristics matter for productivity. It argues that firms might not know what constitutes good management or how valuable it is, and that they could benefit from screening and management training in these qualities.

Patrick Bolton, Tao Li, Enrichetta Ravina, Howard Rosenthal, 30 July 2019

The majority of shares in publicly traded companies in the US are held by institutional investors, who collectively have a large say on the broad objectives of these corporations. This column shows that there is a systematic correlation between the type of institutional investor and their shareholder voting ideology. The two key dimensions of ideology are social responsibility and management discipline.  

John Van Reenen, 23 March 2018

Competition can foster productivity by eliminating unproductive firms out of the market. John Van Reenen discusses the impact of management quality on productivity - and how this is influenced by market forces. This video was published by the CORE Project.

Arnaldo Camuffo, Alessandro Cordova, Alfonso Gambardella, 06 January 2018

Entrepreneurs often predict future revenues using rules of thumb. The column argues that by testing precise hypotheses, 'scientist-entrepreneurs' would be less likely to invest in failures. A randomised controlled trial among Italian start-ups showed that this technique increased average returns for entrepreneurs. Used more generally, the precision effect may help screen out bad business ideas at an early stage.

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We would like to invite you to participate in the 24th EBES Conference - Bangkok, Thailand which will bring together many distinguished researchers from all over the world. Participants will find opportunities for presenting new research, exchanging information, and discussing current issues.

Although we focus on Europe and Asia, all papers from major economics, finance, and business fields - theoretical or empirical - are highly encouraged. The deadline for abstract submissions is October 31, 2017.

Harald Hau, Yi Huang, Gewei Wang, 17 October 2016

Business book writers claim that management quality of some type matters when creating successful firms. But this conventional wisdom has largely defied serious empirical analysis. This column looks at statistical evidence on the productivity response of Chinese firms to minimum wage shocks, and finds that better-managed firms adapt better to adverse competitive shocks. This suggests that management quality matters for this type of adaptability

Marco Becht, Andrea Polo, Stefano Rossi, 20 July 2016

Many corporate acquirers impose losses on their shareholders. Conflicted or overconfident CEOs and boards embark on acquisitions that are not in the best interest of the owners of the firm. The governance tool of shareholder voting can represent a potential solution. This column shows that in the UK, where bids for relatively large targets require mandatory shareholder approval, shareholders gain when the transaction is conditional on a vote and lose when it is not. The evidence suggests that the vote puts a constraint on the amount the CEO can offer for the target.

Dalia Marin, 23 June 2016

Income inequality is less severe in Germany than in the US. Part of this is due to CEO pay in the US growing faster than in Germany. This column offers some novel explanations for these observations. From the mid-1990s, Germany began offshoring managerial tasks to Eastern Europe, reducing demand for German managers. In addition Germany offshored skill-intensive jobs to Eastern Europe, reducing the skill premium.

Matthieu Crozet, Emmanuel Milet, 14 December 2015

Industrial classifications tend to depict the economy as a collection of separate sectors, and arbitrary lines are consequently drawn between these sectors. This column argues that this way of thinking ignores the complexity of production processes and management strategies, creating a divide between ‘manufacturing’ and ‘services’ which is stronger than it should be. In fact, manufacturing firms often produce and sell services to third parties – known as ‘servitisation’. Economic policies that fail to take into account the dual aspect of the activities of manufacturing firms may prove inadequate. 

Oriana Bandiera, Andrea Prat, Raffaella Sadun, 12 February 2015

The hypothesis that family firms are good for growth has come under scrutiny in recent years. This paper presents novel evidence on fundamental differences in behaviour between family and professional CEOs. Family managers tend to work at least 9% less than non-family ones, which is driven by their preferences for leisure and work. Family CEOs are typically wealthier and thus increase their consumption of leisure, which is a normal good. However, this behaviour may have adverse effects on family owned firms since hours worked by CEOs are strongly related with productivity. Given the ubiquity of family-run firms, this can impact the entire economy.

Nicholas Bloom, Renata Lemos, Raffaella Sadun, John Van Reenen, 07 December 2014

Schools with greater autonomy often perform well, but there is disagreement over whether this is due to better management or cherry-picking of students. Based on interviews with over 1,800 head teachers, this column finds that management quality is strongly correlated with pupil performance. Autonomous schools have better management, and this result does not appear to be driven by pupil composition or other observable factors. However, autonomy for head teachers is not enough – accountability to school governors is also needed.

Alex Edmans, 25 July 2014

Happy workers might well be more productive than unhappy ones, but high worker satisfaction could also be a sign that workers are overpaid or underworked. This column examines the link between worker satisfaction and future stock returns in 14 countries. In most but not all countries, employee satisfaction is associated with higher future stock returns. Abnormal returns to companies with high worker satisfaction are significantly increasing in the flexibility of their countries’ labour markets.

Hiromi Ishizuka, 10 July 2014

Japan has one of the highest labour market gender gaps among the advanced economies. This column examines the current status of gender diversity in management in Japan, China, and South Korea. Despite some pronounced differences, economic gender gaps are large in all of the three countries. But overall, gender diversity in management in Japan is slowly beginning to emerge.

Masayuki Morikawa, 19 June 2014

Headquarters play important strategic roles in modern companies, but downsizing of headquarters is often advocated as a cost-cutting measure. This column presents evidence from Japanese firm-level data that the size of headquarters is positively associated with firms’ overall productivity. Moreover, the benefits of ICT are greater for companies with relatively large headquarters. Downsizing headquarters to cut costs may thus be harmful for long-term company performance.

Masayuki Morikawa, 26 August 2014

Headquarters play important strategic roles in modern companies, but downsizing of headquarters is often advocated as a cost-cutting measure. This column presents evidence from Japanese firm-level data that headquarters size is positively associated with firms’ overall productivity. Moreover, the benefits of ICT are greater for companies with relatively large headquarters. Downsizing headquarters to cut costs may thus be harmful for long-term company performance.

Amanda Goodall, John McDowell, Larry Singell, 31 January 2014

Much of human knowledge is produced in the world’s university departments, yet little is known about how these hundreds of thousands of departments are best organised and led. This column explores the association between the personal research output of a department head and the department’s subsequent performance. Results suggest that if a department wants to improve its reputation in the world, then the chair should be a highly cited researcher.

Fadi Hassan, Gianmarco Ottaviano, 30 November 2013

The long-lasting stagnation in Italy has often been explained by the country’s lost of competitiveness, but focus on total factor productivity has been scarce. This column discusses the effect of capital and labour misallocation on the productivity slowdown. Such misallocation could not result from labour rigidity, but could be due to limited ICT investment and penetration. Rigid non-meritocratic management practices can greatly affect ICT exploitation, and subsequently – overall productivity growth.

Imran Rasul, Daniel Rogger, 19 November 2013

Around the world, civil service reform is viewed as necessary to deliver public services effectively and to foster development. However, evidence is thin on how the management of bureaucrats affects the provision of public services. This column presents new evidence from Nigeria linking completion rates of government projects to bureaucractic management practices. Greater autonomy is associated with higher completion rates, whereas performance monitoring and incentive schemes seem to backfire. The most effective private-sector management practices may not be suited to public sector bureaucracies.

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