This study investigates the relationship between foreign direct investment, institutional quality, economic freedom, and entrepreneurship in emerging markets. The research compares the capacity and appetite for business creation among high-income, low-income and emerging countries. The results are based on a panel study of data, from 2004 to 2009 for 87 countries, using as its source "The World Bank Entrepreneurship Snapshots" to look at the connection between business creation, institutional quality, market freedom and foreign direct investment (FDI). The findings reveal a strong positive relationship between institutional quality and business generation in all three of the above categories. Meanwhile, institutional quality and how this develops remains significant to business creation at least two years after a business is incubated, underscoring its importance as a contributory factor for creating an environment conducive to entrepreneurship. The freedom to create businesses and invest has a marked impact on business generation in emerging countries, while the influence of international trade appears more important as a spur to the genesis of business in low-income countries. Results also show that regulation of the free market has a short-term effect on business creation. Finally, there is a direct and significant relationship between FDI and business development in emerging countries. The effect of FDI is also felt for at least two years after the foreign investment. This result is consistent with "the spillover theory of entrepreneurship" (Acs et al, 2009;Görg and Strobl, 2002;Ayyagari et al, 2010).
1. Additional straw or grain was supplied to hens during rearing in floor pens with litter floors. During lay, hens were housed in pens with partly-littered partly-slatted floors. The effects on foraging behaviour and feather pecking were studied and feather damage was scored at 17, 30 and 42 weeks of age. 2. Supply of grain in the litter during rearing caused an increase in ground scratching. Ground pecking also tended to increase. Supply of straw had no significant effect on the observed behaviours. 3. Feather damage in the laying period was significantly reduced by providing grain during rearing. A similar tendency was found for groups that received straw during rearing. On the basis of the behavioural observations it was concluded that this better plumage cover was caused by less feather pecking. 4. The frequency of pecking at food was decreased during rearing by the supply of grain. This could not be explained solely on the basis of a lower food intake. Apparently the efficiency of pecking at food had changed as well. Behavioural data from the laying period suggest that this change was of a more permanent character. 5. The incentive value of the ground and the substrate covering it might be increased by the supply of grain during the rearing period. This causes foraging-related behaviours like scratching and pecking to be directed to the ground. The hens' perception of incentive stimuli for pecking is apparently influenced by experience during rearing. 6. To prevent birds redirecting their ground pecks to the feathers of other birds, not only the peckability/scratchability of the ground seems to be important but also other aspects like nutritive value or taste.
PurposeWe investigate the relationship between chief executive officer (CEO) compensation and a firm's financial performance in the insurance industry to determine CEO pay policies that are more effective in promoting specific financial corporate goals.Design/methodology/approachConsidering different components of executive pay, we investigate the latter’s relationship with the corporate performance of the insurance industry using the generalized method of moments (GMM) model developed for dynamic panel estimation. Our data encompasses the periods before and after the 2008 financial crisis.FindingsWe observe that after the crisis the insurance industry experienced a major change in executives’ compensation packages. While CEOs’ compensation was primarily based on bonuses pre-crisis, the average size of the bonus was reduced to one-third of the level, stock awards and nonequity incentives were doubled and option awards increased almost 70 percent in the post-crisis period. It is also evident that the work experience of CEOs and the firm's financial performance play a significant role in determining CEO compensation. As the CEO becomes more experienced, stock awards and option awards replace cash bonus.Originality/valueThe paper finds supporting evidence for the agency-related problem in the insurance industry and the convergence of interest hypothesis, suggesting that a firm's market valuation rises as its managers own an increasingly large portion of the firm. To align the interest of owners with that of management, managers should be converted into owners via stock ownership. The paper addresses a topical issue regarding pay and performance and the effect of the financial crisis in the insurance industry.
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