Marco Casari, Andrea Ichino, Moti Michaeli, Maria De Paola, Ginevra Marandola, Vincenzo Scoppa, 05 February 2019

Although differences in social capital have been linked to a variety of outcomes, we know little about why it varies in the first place. Using experimental data from high schools in the north and south of Italy, this column argues that migration is one possible explanation. It finds that civic students in the south are more likely to emigrate when the local share of civic peers is either low or high compared to when it takes an intermediate value, while the opposite happens for uncivic students. Migration thus causes a ‘civicness drain’. 

Rajna Gibson Brandon , Matthias Sohn, Carmen Tanner, Alexander Wagner, 05 November 2018

Corporate fraud and managerial deception have been pervasive and value-destroying in recent decades. This column analyses whether investors form views about a CEO’s honesty based on his or her previous actions, and how this affects investment decisions. A CEO who has resisted, at personal cost, engaging in earnings management is perceived as being more committed to honesty, which appeals to pro­-social investors. Pro-self investors, on the other hand, value honesty when it comes to information regarding investment returns.

Jan Hanousek, Anastasiya Shamshur, Jiri Tresl, 18 September 2017

Bribery and corruption still present a significant cost to many countries today. This column examines how the efficiency of Eastern European private firms is affected by the level of corruption in their operating environment. An environment of high corruption has an adverse effect on firm efficiency, with ‘honest’ firms – typically foreign-owned and/or with female CEOs – penalised even more.

Daniel Houser, John List, Marco Piovesan, Anya Samek, Joachim Winter, 23 February 2015

Dishonesty is a pervasive and costly phenomenon. This column reports the results of a lab experiment in which parents had an opportunity to behave dishonestly. Parents cheated the most when the prize was for their child and their child was not present. Parents cheated little when their child was present, but were more likely to cheat in front of sons than in front of daughters. The latter finding may help to explain why women attach greater importance to moral norms and are more honest.

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