R&D projects in pharmaceutical industry are extremely risky and bring benefits in long-run period. Self-interested managers try to avoid risk and underinvest in R&D. In this paper we study the effect of independent directors, insider ownership and scientific connections on R&D investments. Independent directors and insider ownership can mitigate agency problem by additional monitoring and convergence of interests. Scientific collaborations promote technological development and increase R&D. The research reveals the difference of the effects in emerging and developed market.
We estimate efficiency scores for Russian universities based on data set of input and output criteria by using Data Envelopment Analysis. In addition, we use a reputation index as another indicator of a university’s productivity. To construct it, 4000 contexts are analyzed and 13 reputation criteria are found. The threshold procedure is used to aggregate them into a reputation indicator. Factors which lead a university to be efficient are studied.
This article is focused upon the survival of democratic regimes and successfulness of democratization. The dynamical mathematical model is presented in the paper. The model’s departing point is the hypothesis of S.M. Lipset and A. Przeworski that the growth of the welfare leads to a mitigation of the interest groups` conflict over the redistribution of resources. This mitigation is met as a result of interrelated processes of broadening of a «compromise space», which is a range of mutually accepted policies, and of a convergence of different groups` preferences over the redistribution in an area of moderate policies.
The presented model illustrates how social capital (more precisely – its component responsible for trust between strangers) and institutional quality favor the stabilization of democratic regimes through the increase of economic productivity and welfare. According to the predictions of the model, total factor productivity (TFP) – understood as the opportunity of individuals and/or firms to cooperate efficiently – increases the overall wealth of the society given the same stock of human capital. It fosters the consolidation of democracy due to reduction of social tensions and improvement of functioning of democratic mechanism of economic policy elaboration. Following these results the hypothesis of positive impact of TFP on the survival of democracy is formulated.
The hypothesis was tested by means of survival analysis on the quantitative database on episodes of democratization («Regimes in the World»). The survival analysis showed that TFP is a significant and important predictor that lowers the risk of unsuccessful ending of the democratization episode (of the return back to more autocratic regime). The increase in TFP on 10 percentage points is ceteris paribus associated to the decrease of risk of leaving the track of democratization in 1.2-1.4 times. The obtained results are robust to the changes in the model specification or in a list of control variables.
DEA-analysis is performed based on publicly available data on 94 world largest fashion retailers. Standard clusterization of coefficients obtained from DEA-analysis gives clusters that are analyzed with respect to homogeneity and fit to the types of strategic behavior outlined in strategic management.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.