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Post-Privatisation OwnershipStructure and Productivity in Russian
Co-operative banks are widely seen as sustainable alternatives to profit-driven banking. However, while most banks struggle to meet the stringent capital requirements of regulators, co-operative banks are in particular need of cautious capital-related decisions given their little ability to accommodate profit-driven equity investors. In fact, co-operative banks’ single greatest source of capital is their annual surplus.This paper first highlights that capital protection rules related to Hungarian co-operative banks are more liberal than those of other European co-operatives. This is followed by an analysis of Hungarian co-operative banks’ decisions on the distribution of annual surplus among their members. In doing so, the annual reports of 99 co-operative banks representing 73% of all Hungarian co-operatives are used, complemented with confidential data on the ownership structure of each co-operative.The study shows that a co-operative with a low number of members and a high amount of average subscribed capital per member is likely to distribute high dividends. This phenomenon is explained by the different nature of co-operatives according to the number of members. This result not only sends an alarming message to policy makers in Hungary and possibly elsewhere, but also contributes to the peculiarities of co-operative corporate governance.
In this paper, I examine the Hungarian government bond market’s liquidity developments in recent years. First, I explain the importance of market liquidity for central bankers. I identify the most significant economic shocks and their impacts on the market by using various market indicators. The changes in the Hungarian pension system strongly affected the ownership structure of the government bond market, and raised the amount held by non-residents. A simple yield decomposition shows that while during the crisis of 2008–2009, the Hungarian sovereign bond yields were enhanced principally by the increase of the credit and liquidity risk premia, the crisis of 2011–2012 might increase credit risk premium, but increase liquidity risk premium less significantly.
Authors:Pavol Ochotnický, Nick Wilson, Marek Káčer, and Martin Alexy
The paper tests the impact of gender diversity and educational attainment of owners and company directors on the performance of private firms in the Slovak economy. The paper demonstrates that in retail trade the gender diversity both in owners and company directors within a company leads to higher total factor productivity and partially lower propensity to fail. However, in other industries the companies with higher proportion of females in the ownership structure or among company directors tend to be less efficient and grow less. Although there is evidence that higher proportion of females self-select into lower risk sectors and occupations, our main results hold after controlling for it. In terms of educational attainment, the companies with higher proportions of owners or company directors with university education are more productive and grow more in terms of turnover, but there is no evidence that default of companies is related to educational attainment. We suggest that education is unique and superior resource and it generally benefits the companies by having higher proportion of educated owners and/or directors.
Private pension funds were thought to be an important pillar of old-age provision when they were introduced throughout (Emerging) Europe. As different as these funds are in different countries with regards to their regulation, their ownership structure and operation, none were immune to the sub-prime led financial crisis. The Hungarian private pension funds are unique amongst the defined contribution (DC) funds. With their decade old recent history, they are maturing to the payout period in a few years’ time; however, their demise appears ever more realistic by means of political decision. This makes uncovering their investment policy during the crises very timely. Examining such a period is of importance in shedding light on the behaviour of traditional financial concepts in periods of stress. In this paper, we assess the optimality of diversification, hedging and short sales decision possibilities of the Hungarian pension funds in the equity investments environment. Was the net asset value (NAV) erosion suffered by the Hungarian private pension funds a result of their investment decision? We examine this question of diversification through a hypothetical simulation of model investment portfolios. Our results show that international diversification yields better risk-adjusted returns only in case of perfect hindsight of future market movements. The high correlation of the stock indices globally in times of crises limits the benefits of diversification.
Authors:Martin Meyer, Mariette Du Plessis, Tania Tukeva, and Jann-Timour Utecht
Summary This paper compares the inventive output of two science systems in small European countries. More specifically, we examine patented inventions of Finnish and Flemish university researchers. The comparison includes inventive output as such and its concentration on organizations, inventors, and corporate owners as well as foreign assignations and the degree to which individual inventors have retained the ownership of the patents. While there are commonalities between the Finnish and Flemish systems in terms of patent concentration on key institutions and corporate assignees, there are also pronounced differences with respect to the ownership structure of academic patents, which was expected in light of the different intellectual property regulations. Our observations seem to suggest that the total inventive output of a research system is not a function of the prevailing intellectual property system but rather in correspondence to overall national inventiveness thereby pointing to more general (national, cultural) drivers of academic inventive activity. From a methodological viewpoint, this research illustrates that tracing university-owned patents alone would leave considerable technological contributions of academics unidentified - also in countries where universities own the rights to their researchers’ patents. Another finding with potential methodological implications is that patents are highly concentrated on institutions. If such a distribution law applies to large countries as well, analysts could cover most of the national academic patent output by an intelligent selection of universities.