Template-Type: ReDIF-Article 1.0 Author-Name: Arnab Bhattacharya Author-Name: Binay Bhushan Chakrabarti Title: An Examination of Adverse Selection Risk in Indian IPO After-Markets using High Frequency Data Abstract: Using Volume-synchronized Probability of Informed trading (VPIN), we examine the evolution of ex-post adverse selection risk in the IPO aftermarket of a sample of 70 Indian firms. We find that adverse selection risk is highest on IPO listing day, and gradually reduces over the subsequent weeks. We observe that the degree of IPO underpricing is negatively related to ex-post adverse selection risk in the IPO aftermarket, suggesting that information production induced through IPO underpricing is able to mitigate adverse selection problems in IPO aftermarket. We also find that the ex-post adverse selection risk is related to various IPO, firm and liquidity characteristics. Keywords: NA, Initial Public Offerings (IPOs), adverse selection risk, probability of informed trading, underpricing Classification-JEL: G12, G14 Pages: 01-49 Volume: 2014 Issue: 3 Year: 2014 File-URL: http://www.vse.cz/ijes/15 File-Format: text/html Handle: RePEc:prg:jnljes:v:2014:y:2014:i:3:id:15:p:01-49 X-File-Ref: http://www.vse.cz/RePEc/prg/jnljes/references/15 Template-Type: ReDIF-Article 1.0 Author-Name: Gabriella Donatiello Author-Name: Marcello D’Orazio Author-Name: Doriana Frattarola Author-Name: Antony Rizzi Author-Name: Mauro Scanu Author-Name: Mattia Spaziani Title: Statistical Matching of Income and Consumption Expenditures Abstract: The purpose of this paper is to evaluate the possibility of applying statistical matching on two different data sources to create an integrated database with detailed information on households income and consumption expenditures in Italy. The data to integrate are those of EU-SILC (EU Statistics on Income and Living Condition) 2012, with income reference year 2011, and the HBS (Household Budget Survey) 2011. This paper explores which are the matching approaches more suitable with the final objective and provides insights concerning some important steps of the integration process. In order to avoid the statistical matching under the conditional independence assumption (CIA) it is evaluated the usage of the available auxiliary information (household monthly income) and the main results are also presented. Keywords: NA, Statistical matching, Survey data integration, Income, Consumption Classification-JEL: C14, C15 Pages: 50-65 Volume: 2014 Issue: 3 Year: 2014 File-URL: http://www.vse.cz/ijes/16 File-Format: text/html Handle: RePEc:prg:jnljes:v:2014:y:2014:i:3:id:16:p:50-65 X-File-Ref: http://www.vse.cz/RePEc/prg/jnljes/references/16 Template-Type: ReDIF-Article 1.0 Author-Name: H. Y. Sun Title: Longitudinal Evidence of Firm Size Effect on Wage Premium and Wage Differential in Korean Labor Market Abstract: This study analyzes the firm size effect on wage determinant mechanism and wage differential between large firms and small firms. The empirical methodology, based on Fixed Effect estimation, Probit estimation and Oaxaca-Blinder decomposition estimation, be utilized to measure wage determinant factors exclude unobservable characteristics heterogeneity and permits to obtain endowment or discrimination proportion of wage gap. Firm size wage premium mostly be attributed to efficiency wage, compensation wage differential, skill complementarity, monitoring cost, prevent union organization, rent sharing and internal market. However, there are no completely explanatory for firm size wage premium. Estimated results suggest that more educated employees are easily to find in large firms, it is consistent with the hypothesis that higher wages paid by large firms can be explained by efficiency theory. Endowment differential is main reason for wage gap between large firms and small firms. Employees have lower turnover rate in large firms than small firms. This phenomenon can be explained by internal labor market theory which means employees have higher probability of promotion and higher costs of turnover in large firms. Keywords: NA, Firm-size wage differential, Korean Labor and Income Panel Study, wage decomposition Classification-JEL: C38, J31, J40 Pages: 66-85 Volume: 2014 Issue: 3 Year: 2014 File-URL: http://www.vse.cz/ijes/17 File-Format: text/html Handle: RePEc:prg:jnljes:v:2014:y:2014:i:3:id:17:p:66-85 X-File-Ref: http://www.vse.cz/RePEc/prg/jnljes/references/17 Template-Type: ReDIF-Article 1.0 Author-Name: Ming-Cheng Wu Author-Name: Yu-Ju Chen Author-Name: Bi-Ying Shih Title: An Exploratory Analysis of Cash Holdings and Pay-Performance Sensitivity before and after IFRS Adoption Abstract: This paper documents an association between firms’ cash holdings and CEO’s pay performance sensitivity. Controlling whether CEOs are both president, firm size, leverage, auditor specialization and the ratio of independent board, we find that firms with more cash holdings are more likely to constrain executives’ pay-performance sensitivity than firms with less cash holdings do. Empirical evidence also shows a increasing pay-performance sensitivity after adopting IFRS in China. The changes of the fair value for investment property are recognized from the equity to income statement may influence executives contract. After using propensity score matching research design, we further find that decreasing sensitive compensation due to firms with great corporate cash holdings is more pronounced after IFRS adoption than before IFRS adoption. The results support alignment hypothesis, which argues that managers with high incentive compensation will engage to making risky decisions which may harm firms’ value in the future. Therefore, compensation committee should redesign managers’ compensation contract for limiting their risk-taking behavior. Compare with pre-IFRS period, firms maintaining sufficient liquidity are more likely to decrease CEOs’ incentive compensation for avoiding them pursuing real activities manipulation during post-IFRS period. Keywords: NA, precautionary saving theory, alignment theory, mandatory IFRS adoption, cash holdings, pay-performance sensitivity, PPS Classification-JEL: G30, G32, G34 Pages: 86-102 Volume: 2014 Issue: 3 Year: 2014 File-URL: http://www.vse.cz/ijes/18 File-Format: text/html Handle: RePEc:prg:jnljes:v:2014:y:2014:i:3:id:18:p:86-102 X-File-Ref: http://www.vse.cz/RePEc/prg/jnljes/references/18 Template-Type: ReDIF-Article 1.0 Author-Name: Wei-Bin Zhang Title: Population Change with Endogenous Birth and Mortality Rates, Wealth Accumulation, and Renewable Resource Change Abstract: This paper is concerned with dynamic interactions between population change, wealth accumulation, and resource dynamics. Our model synthesizes economic mechanisms of some well-known models within a compact framework. Wealth accumulation is built on the Solow growth model. Dynamics of birth and mortality rates are influenced by the Haavelmo population model and the Barro-Becker fertility choice model. Resource change is modelled on the basis of some growth models with renewable resources. The available time is distributed between work time, leisure time and time of children fostering. We synthesize these dynamic forces in a compact framework by applying an alternative utility function proposed by Zhang. The two-sector model describes a dynamic interdependence between population change, wealth accumulation, and resource dynamics with endogenous time distribution in a perfectly competitive market. We simulate the model to demonstrate existence of equilibrium points and motion of the dynamic system. We also examine effects of changes on the motion of the economic system in the propensity to have children, the propensity to consume goods, the propensity to consume resources, the resource capacity, human capital, and time required for children fostering. Keywords: NA, propensity to have children, mortality rate, birth rate, renewable resource, wealth accumulation Classification-JEL: J13, O41, Q20 Pages: 103-129 Volume: 2014 Issue: 3 Year: 2014 File-URL: http://www.vse.cz/ijes/19 File-Format: text/html Handle: RePEc:prg:jnljes:v:2014:y:2014:i:3:id:19:p:103-129 X-File-Ref: http://www.vse.cz/RePEc/prg/jnljes/references/19