We find that investor sentiment should affect a firm's employment policy in a world with moral hazard and noise traders. Consistent with the model's predictions, we show that higher sentiment among US investors leads to: (1) higher employment growth worldwide; (2) lower labor productivity, as the...

We study the role of bilateral political relations in explaining variations in the equity portfolio allocation of foreign institutional investors. Using a large micro sample at the fund-firm-year level, we find that when the relations between two countries become more distant, institutional...

Purpose – The purpose of this paper is to show that the environmental income drives economic growth of a large open country.Design/methodology/approach – The authors detect that the relative environmental income has double effect of “conspicuous consumption” on the international...

By reviewing the history of “ecological transformation” theory for world economy growth, this research analyzes a relationship between oil price and food price in US dollar value in the context of green economy transition with a big question mark on globalization or anti-globalization. The...

This paper unbundles institutions protecting domestic and foreign creditors' rights. We estimate a negative relation between the degree of domestic rights protection and the external stock of private nonguaranteed debt in 85 developing countries. A supply-side explanation is that strong domestic...