Opportunistic Behavior Research Articles

Exploring Modalities Best Suited for Public Private Partnership Concession Agreements in the Education Sector of Zambia

The Zambian public sector has been known to face several challenges in the provision of infrastructure among others education infrastructure. Thus, the introduction of Public Private Partnerships (PPPs). In as much as the education sector of Zambia can benefit tremendously from the PPP initiative, poorly designed PPP concession agreements risk worsening existing educational sector challenges. The objectives of the paper were to establish the extent of application of PPPs in the Zambian education sector, identify the challenges surrounding concession agreements in PPPs in Zambia, and suggest the right modalities that could be applied to PPP concession agreements in the Zambian education sector. Both secondary and primary data was collected to establish that no private sector entity has had or is currently engaged in an ongoing concession with the Government in the procurement of infrastructure for schools. Challenges surrounding concession agreements in PPPs included contract misspecifications, lack of contractual flexibility, opportunistic behaviour by either party, and shielded concession agreement creation and process. In view of the foregoing, right modalities that could be applied to PPP concession agreements in the Zambian education sector include proper risk allocation, adequate concession period, clear allocation of roles and responsibilities, and inclusion of stabilization clauses.

Integrating agency and resource dependency theories: the moderating effect of board size on the relationship between dividends and firm value in Malaysia

PurposeThis paper aims to examine the moderating effects of board size on the relationship between dividends and firm value in Malaysian settings. The theoretical foundations of this research were the integration between agency and resources dependency theories.Design/methodology/approachPanel data are extracted from DataStream and the annual report for the period of 2012 to 2021, and pooled OLS, random effects, and fixed effects analyses were employed to examine the relationship. Breusch–Pagan Lagrange multiplier (LM) test and the Hausman test used to determine the most appropriate between these three analyses (OLS, random effects, and fixed effects). The results are valid even after calculating the robust standard error to mitigate the potential heteroskedasticity and serial correlation.FindingsThe empirical results show that board size positively moderates the relationship between dividends and firm value in all the models tested. The results indicate that a larger board of size can minimize the agency problem (agency theory) because a larger board size can more effectively monitor and control management's opportunistic behavior due to more set of skilled and talented individuals included in the boardroom (resources dependency theory). Additionally, effective monitoring can also lead to the increase in dividend payout to maintain a good reputation among investors and simultaneously increase firm value.Practical implicationThis study contributes to helping the regulators and industry players in Malaysia to improve existing guidelines for determining dividend and board size to increase firm value. The findings may also provide inputs to the policymakers in recommending the optimum dividend and board size that resulting an increase in valuation.Originality/valueBy incorporating agency and resources dependency theory, authors investigate the moderating effect of board size on dividend and firm value relationships in Malaysian markets.

Social capital and procedural formalism

ABSTRACT Differences in the extent of formalism of civil proceedings between common and civil law countries have expanded between 1950 and 2000. We study the role of social capital in this divergence using data on up to 35 countries. We find that higher-trust societies, and those that are less tolerant of opportunistic behaviours, were more likely to reduce the degree of procedural formalism over time, thus making litigation a more efficient means of seeking administration of justice. This result suggests that lowering of formalism may reflect a cultural bias for less formal dispute resolution among parties in high social capital societies.

Stock Liquidity, Corporate Governance and Dividend Payout: Evidence From Tehran Stock Exchange

The main goal of this article is the impact of Corporate Governance and Stock Liquidity on the Dividend payout. In order to test the hypotheses, a sample of companies accepted in the Tehran Stock Exchange was selected between 2016 and 2021, which was analyzed using R software. The research method is multivariate regression using panel data. According to the research findings, there is not a meaningful relationship between Corporate Governance, Stock Liquidity and Dividend payout. Companies finance through debt regardless of the stock liquidity, therefore, stock liquidity does not have a decisive role in financing. Better corporate governance mechanisms apply more supervision, so that these mechanisms prevent the opportunistic behavior of managers and preventing them from hiding and manipulating information. By testing the mutual effect of stock liquidity and the quality of corporate governance, a significant relationship was found with the dividend payout of companies accepted in the Tehran Stock Exchange. The study tries to contribute to the current literature of corporate governance and stock liquidity by providing new evidence on the causal impacts of stock liquidity and corporate governance quality on dividend payout. Also, this study contributes to the literature on stock liquidity, corporate governance quality and dividend payout by exploring the mechanism of corporate governance quality and dividend payout from equity financing and internal financing.

Shared recycling model for waste electrical and electronic equipment based on the targeted responsibility system in the context of China

The formal recycling of waste electrical and electronic equipment (WEEE) has long faced collection difficulties owing to the inadequate recycling system and insufficient collection capacity under China’s fund-based recycling model. The government has introduced the recycling Target Responsibility System (TRS) to motivate producers to develop and share recycling systems, yet without clear incentive mechanisms. In this study, we provide a “1 + N” shared recycling model referring to the theory of the sharing economy, and we propose a credit mechanism with a deposit system and a penalty mechanism for dishonesty to constrain the opportunistic behavior of sharing. In addition, according to the TRS, we design a “reduction-penalty-subsidy” fund policy to incentivize producers and recyclers to achieve recycling targets. On this basis, we apply evolutionary game theory and system dynamics approach to analyze the collaborative mechanism of shared recycling and the incentive effect of the funding policy. Game analysis yields the evolution of shared recycling from the developing stage to the mature stage. The system simulation results indicate that the government’s “penalty” and “subsidy” strategies provide evident incentives for producers and recyclers, respectively, in the developing stage, whereas endogenous dynamics derived from economies of scale under market mechanisms promote the multi-agent collaborative implementation of shared recycling in the mature stage.

Changing value system, shifting geography of opportunity: Trajectory of migrant workers in the garment industry in Beijing

Research on the geography of metropolitan opportunities has focused on a set of opportunities in different urban areas over time to justify policy interventions. The Beijing government implemented large-scale policy interventions to achieve structural industrial changes in order to stop the downward spiral of poverty and segregation in “urban villages.” Beijing has accelerated the redevelopment of urban villages and helped tens of thousands of low-wage migrant workers in garment villages move to surrounding secondary cities or small towns in Hebei Province with better opportunities. However, low-wage migrant workers did not respond linearly to the intervention. This study analyzes the reasons underlying the response of low-wage migrant workers to these policy interventions. First, the antipoverty policy is a geographic exercise, moving low-end industries from a global center to peripheral locations. This study considers why this mobility strategy for improving opportunity has become the arena for opportunistic behavior and conceptualizes the logic of opportunism and the self-worth of low-wage migrant workers in a metropolitan area. Second, the Beijing government is attempting to disperse the low-end informal industries into formal industrial bases in Hebei. Dispersal campaigns inevitably involve circuitous mobility and the outcome of dispersal is inherently unstable. One of the crucial questions in dispersal strategies is scale. Would an upscaled Beijing-Tianjin-Hebei (BTH) City Region or a downscaled “neighborhood effect” better implement the antipoverty strategy? This dispersal strategy can break up the concentration of migrants, but their perceived opportunities remain in Beijing. One of the obstacles to the full implementation of the dispersal strategy is grassroots opposition. This study uses a three-year survey conducted prior to the COVID−19 lockdown to analyze how displaced migrant workers perceive these opportunities in their processual and networked decision-making. Garment villages are important “anchor places” where migrants can mobilize their social capital and facilitate upward mobility outside a dominant institution in Beijing. This study reveals how garment workers replicated informal habitats in more remote locations in Beijing as the old habitats disappeared.

Public procurement and innovation policy in Russia: a perspective of narrative economics

Objective: to identify narratives describing the use of public procurement system for innovation policy implementation and to critically analyze them.Methods: quantitative analysis of the frequency of narratives, qualitative analysis of narratives to identify protomodels, institutions and social context.Results: in the modern Russian economic system, public procurement is used as a tool for implementing the national innovation policy. The analysis of legal acts regulating public procurement of innovative and high-tech goods showed the trends that potentially reduce the variability of procuring entities' actions and the transparency of procurement procedures. Based on the tools of narrative economics, the authors analyzed the attitude of actors (representatives of the state, business and academia) of the Russian innovation system to the existing practice of public procurement in the context of the national innovation policy. As a result, the work presents a typology of public procurement problems, discussed in mass media, for Russia’s innovative development.Scientific novelty: the considered narratives show that, in relation to the Russian innovation system, the public procurement subjects can act in the logic of the “principal-agent” theory, while the tendency to reduce transparency is welcomed by some actors.Practical significance: institutional analysis of the recent changes in public procurement, including the rules governing the procurement of innovative and high-tech products, has revealed the devolution of formalized rules aimed at the implementation of state innovation policy. Together with the increased level of privacy in organizational activities of procuring entities, this carries the risks of not only increasing the level of opportunistic behavior of the public procurement market subjects, but also decreasing confidence in the entire public procurement system.

Information Infrastructure and Environmental, Social, and Governance Performance of the Enterprise: A Quasi-Experimental Analysis

ABSTRACT Information infrastructure development substantially impacts the transformation of enterprises’ decision-making. Based on the “Information Consumption Demonstration City Construction” policy issued by the Chinese Ministry of Industry and Information Technology in 2016, we conducted a quasi-experiment to examine the effects and mechanisms of information infrastructure construction on the enterprise’s environmental, social, and governance (ESG) performance. Overall, information infrastructure construction was shown to substantially improve the ESG performance of these companies and exhibit a strong promoting effect on labor-intensive and state-owned enterprises. Regarding internal mechanisms, the information infrastructure has accelerated the digital transformation of enterprises and improved information efficiency, which is beneficial for suppressing opportunistic behavior. Regarding external mechanisms, information infrastructure development and ESG investment have jointly reduced corporate financing constraints, improving their credit market performance. These findings provide substantial practical evidence for promoting the construction of an information infrastructure from the perspective of enterprise governance transformation.

Opportunistic leadership behavior and its impact on the spiritual elevation of employees (An analytical study of the opinions of a sample of decision makers in the General Company for Pastry Manufacturing in Baqubah

The current research aims to address the weaknesses in opportunistic leadership behaviors and thus stay away from threatening positions that weaken that leadership, and in a way that is consistent with the spiritual highness of the employees in the company under investigation. Based on the above, the main research problem can be clarified, which is “Is there a statistically significant correlation and impact between... Opportunistic leadership behavior and the spiritual elevation of employees in the researched company. In light of the main research problem, a hypothetical model was built that reflects the relationship and impact between the main research dimensions and variables, and thus finding the best appropriate solutions to that problem. The research relied on the descriptive analytical approach, which gives the possibility of using description in forming a framework. Intellectual and theoretical, the study population was represented by the General Company for Pastry Production in Diyala, where the research community reached 250 individuals representing the decision-makers in the researched company. 80 individuals were selected to represent the research sample from the decision-makers in the researched company. The questionnaire form was distributed in a regular manner to all members of the sample, and all members of the sample were retrieved. The distributed questionnaires enriched the research with important information and data from sources and references related to the theoretical side. As for the field side, reliance was placed on a set of statistical tools, including the questionnaire, the arithmetic mean, and the simple and multiple regression coefficient to stabilize the relationship of correlation and impact. The research reached a set of results and recommendations, the most prominent of which is building successful leadership characteristics from By modifying opportunistic behavior that would eliminate the spiritual highness of workers

Configuration analysis of asymmetric trust between infrastructure PPP project participants

PurposeTrust is the glue that holds cooperative relationships together and often exists in an asymmetric manner. The purpose of this study is to explore how to mitigate the issue of losses or increased transaction costs caused by opportunistic behavior in a soft environment where trust asymmetry is quite common and difficult to avoid.Design/methodology/approachThis study focuses on examining asymmetric trust between the government and the private sector in public-private partnership (PPP) projects. Drawing upon both project realities and relevant literature, the primary conditional variables influencing asymmetric trust are identified. These variables encompass power perception asymmetry, information asymmetry, interaction behavior, risk perception differences and government-side control. Subsequently, through the use of a survey questionnaire, binary-matched data from both the government and the private sector are collected. The study employs fuzzy-set qualitative comparative analysis (fsQCA) to conduct a configurational analysis, aiming to investigate the causal pathways that trigger asymmetric trust.FindingsNo single conditional variable is a necessary condition for the emergence of trust asymmetry. The pathways leading to a high degree of trust asymmetry can be categorized into two types: those dominated by power perception and those involving a combination of multiple factors. Differences in power perception play a crucial role in the occurrence of high trust asymmetry, yet the influence of other conditional variables in triggering trust asymmetry should not be overlooked.Originality/valueThe findings can contribute to advancing the study of trust relationships in the field of Chinese PPP projects. Furthermore, they hold practical value in facilitating the enhancement of trust relationships between the government and the private sector.

Trophic niche overlap of deep-sea fish species revealed by the combined approach of stomach contents and stable isotopes analysis in the Central Tyrrhenian Sea

Understanding the trophic ecology of marine ecosystems is a key challenge given that they are subject to anthropogenic pressures that can alter the integrity of the food web. The bathyal zone of the Central Tyrrhenian Sea is characterized by an high level of community biodiversity, heavy anthropogenic pressure and thus represents a fundamental environment for the study of trophic relationships between demersal fish species which live in sympatry, but this basin still remains data deficient. To fill this information gap, we investigated the trophic niche overlap of four deep-sea fish species, Galeus melastomus, Helicolenus dactylopterus, Lepidorhombus boscii, and Trisopterus capelanus, in the Central Tyrrhenian Sea using an integrated approach of stomach content and stable isotopes analysis (δ13C and δ15N). Our analysis revealed that the blackmouth catshark G. melastomus displays a wide trophic niche with considerable overlap with other fish species, as it consumed diverse prey including fish, crustaceans, and cephalopods, thus proving a generalist and opportunistic feeding behavior. The blackbelly rosefish H. dactylopterus exhibits a narrower isotopic trophic niche comprising mainly benthic crustaceans and so suggesting a marked specialism in feeding strategy. The diet of the four-spotted megrim L. boscii showed a marked overlap with that H. dactylopterus, as these species shared a similar benthic habit and relied upon a similar pool of resource. The poor cod T. capelanus showed a diverse diet comprising both prey captured close to the bottom, especially decapod and mysid crustaceans, and bathypelagic prey, mainly Osteichthyes, Myctophidae, and amphipod Hyperiidae, with an intermediate partially segregated isotopic niche width. The combination of stomach content analysis and stable isotopes analysis provided the first characterization of the trophic relationships, shedding light on the trophic niche overlap of these four ecologically important deep sea fish species. The diets of the four investigated species showed similarities in the composition of prey, but also differences which allows them to partially reduce competition. This information may be of crucial relevance for the development of effective management and conservation strategies for the bathyal Mediterranean environment.

Decoding the complexity of the Brazilian pork supply chain

Purpose This research examines the impact of governance structures within the Brazilian pork supply chain on the necessary controls for exportation. Specifically, the goal is to unravel the intricacies of this supply chain and decode its complexity.Design/methodology/approach Using transaction cost economics as a theoretical lens, we surveyed the main bodies responsible for the export and quality assurance sectors of Brazilian organizations that trade and export pork. Our sample comprises 53.5% of the country’s pork exporting companies during the period analyzed.Findings The presence of vertical and horizontal governance structures in the pork export chain stands out. While the vertical structure enables greater control due to command relations, there are trust and cooperation relations in the horizontal structure. This makes it possible to establish mechanisms to control health, quality, safety and traceability in both structures. We also identified each company’s characteristics: formation configuration (if the cooperative, publicly traded company, or other modality), capital stock, location, the average daily slaughter of pigs for export and sows per producer. We conclude that the organizations have concerns related to the food safety programs, as there are programs that seek transparency throughout the process in many supply chain stages.Research limitations/implications Studies that relate the level of orientation to the export market with the occurrence or risk of corrupt and opportunistic behavior and the coordination mechanisms adopted may represent an interesting and important opportunity for studies.Originality/value This study helps to understand the complexity of the Brazilian pork supply chain.

Understanding transaction costs of energy efficiency renovations in the Swedish residential sector

The residential sector has a large potential to reduce its energy use. Improving the energy performance of buildings is one way to realise this potential. For single-family buildings, improving the energy efficiency by energy renovations can produce a net financial gain. However, there are unaccounted barriers that act as impediments for house-owners to undertake energy efficiency measures. This study postulates that transaction costs are such a barrier. Transaction costs are defined as the cost of making an economic exchange on a market in addition to the market price. The purpose is to empirically estimate the magnitude of the transactions costs and its determinants for energy efficiency measures in the residential sector. Specifically, the transaction costs for heat insulation and energy-saving windows in Swedish single-family buildings are assessed. The analysis is based on a unique dataset, constructed from a web-based survey. The results indicate that transaction costs for energy efficiency measures are considerable. The average transaction cost to make additional heat insulation is SEK 18,046 (EUR 1,510) and SEK 21,106 (EUR 1,766) to install energy-saving windows. The determinants of the transaction costs are cognitive limitations, social connectedness, asset specificity and previous experiences. Therefore, to reduce the transaction costs, the complexity of energy efficiency measures must be addressed, potential opportunistic behaviour must be reduced, and financial options expanded.

The effects of contractual and relational governance on public‐private partnership sustainability

AbstractThe study investigates how contractual and relational governance influence partner behaviors and promote sustainability performance of infrastructure public‐private partnerships (PPPs). Survey data from 217 Chinese PPP projects were analyzed using partial least squares structural equation modeling. This study found that both contractual and relational governance have positive effects on PPP sustainability, with contractual governance having a stronger impact. Contractual governance complements relational governance in promoting cooperative behavior, but relational governance does not amplify the effect of contractual governance on opportunistic behavior. The findings highlight the role of contracts in curbing opportunism and promoting collaboration via multiple functions of control, coordination, and adaption, while also revealing the limitations of relational approaches in the context of government‐business relationships and performance ambiguity. This study contributes to the PPP governance literature by uncovering the individual and interactive effects of contractual and relational governance on the economic, social, and environmental aspects of PPP sustainability.

Salmon farming, overfishing and southern sea lion: Not so opportunistic responses of a top predator to human perturbations in the Patagonian Fjords

Pinnipeds are considered generalist predators that prey opportunistically on more abundant prey. Thus, their diet could be affected by natural and anthropogenic stressors, such as declines in native prey and increases in exotic prey such as escaped salmon. Using stable isotopes, we evaluated temporal and spatial variability in the diet of southern sea lion (Otaria flavescens), and assessed its response to seasonal and stochastic variability in native prey and escaped salmon. Demersal fishes (median contribution range = 50–79 %) and escaped salmon (6–44 %) were the most important prey, in all colonies and seasons examined. The median estimated contributions of caged salmon, Munida gregaria and Sprattus fuegensis were consistently lower than 10% in all colonies and seasons. Variability in the relative availability of stocked and escaped salmon, as well as in Merluccius australis and S. fuegensis, showed limited influence on the contribution of these prey to the diet. Thus, although a noticeable response was evident after a large-scale escape of farmed Atlantic salmon that occurred during the study period, the opportunistic behaviour of southern sea lion seems questionable. A better understanding of dietary responses to induced changes in prey availability may have management implications in marine habitats affected by overfishing and farming of exotic species.

ESG, ESG rating divergence and earnings management: Evidence from China

AbstractThe existing studies on the relationship between ESG and earnings management provide mixed evidence and ignore ESG rating divergence. Using a sample of Chinese listed firms from 2009 to 2021, we examine the effect of ESG performance on earnings management under different levels of ESG rating divergence. The results reveal a negative association between ESG performance and earnings management. Meanwhile, among firms with high (low) ESG rating divergence, our results show that the degree of earnings management rises (falls) when the firms engage in ESG practices. Our findings are robust to alternative variable definitions and the Heckman two‐stage selection model. In addition, we exclude alternative explanations and consider the effect of greenwashing. Cross‐sectional analyses show that the moderating effect of ESG rating divergence is significant only among firms with greater CEO power and higher agency costs, suggesting that agency problems are the mechanism by which ESG rating divergence positively moderates the relationship between ESG performance and earnings management. This study advances the existing research on ESG and earnings quality by presenting new empirical evidence and revisits ESG rating divergence through the lens of agency theory, revealing that management could use ESG for opportunistic behavior in the presence of ESG rating divergence. Our study shows that the divergence in ESG ratings can affect the economic consequences of firms' ESG practices, offering insights for future research on ESG and ESG rating divergence and for regulators to improve the regulation of ESG disclosure and rating.

Does Guaranteed Price Regulate the Market Price of Paddy in Sri Lanka? Exploring the Present and Directing the Future

An argument arises that the opportunistic behavior of leading millers controlling the paddy market harms the farmers, small and medium-scale millers, and consumers. Therefore, this study aims to examine the policy-level intervention required to regulate and monitor the supply and prices of paddy to secure producers and to assess the impact of guaranteed prices in regulating the market price of paddy. The study used production, imports, guaranteed prices, and market prices of major three paddy types in five selected districts for 7 years. The one-sample t-test was used for analysis. The results of the study provide new insights for policymakers to revisit strengthening of regulatory mechanisms in the industry to function competitively. Further, the study identified the lapses in the implementation of existing regulatory mechanisms that might be harmful to producers, SMS millers, and consumers. In addition, identified the possibility of policy-level interventions to enhance appropriate regulatory measures under the existing legal provisions to minimize the anti-competitive and opportunistic actions of key players in the industry if any, enabling market forces to operate smoothly while minimizing the impact on the performance of SMS millers.

The bright side of social trust and entrepreneurial finance

A growing number of studies in the past two decades suggest that social trust matters for financing. However, a few recent studies also indicate that social trust may result in systemic biases and opportunistic behavior. First, we show that trust is important for several types of entrepreneurial financing. Second, our results reveal that trust plays an essential role in start-up financing in places with low access to information, low disclosures, and weaker legal protection. However, in countries with stronger legal protections, the effect of trust is either insignificant or negative. Hence, trust takes on the role of a substitute and may not necessarily bring benefits when strong formal institutions are present.

Impact of Chondrites on trace metal distribution in the sapropel S7 (ODP Site 966): Implications for paleoenvironmental and paleoceanographic reconstructions

Organic-rich deposits are valuable paleo-archives, recording significant paleoceanographic changes linked to past climate variations and marine deoxygenation events. The deposition of organic-rich sediments stops when bottom-water reventilation/oxygenation occurs. This impedes organic matter preservation, enabling macro and micro burrowing-organisms to recover and bioturbate the seafloor. In this sense, highly bioturbated sediments require particular attention when sampling is done for geochemical analyses, as sediments can be considerably mixed. While avoiding trace fossils during sampling for geochemical analyses is easy for large traces (e.g. Planolites, Thallasinoides, and Zoophycos), it becomes challenging for smaller and complex traces (< 0.5 cm), as is the case with Chondrites. Chondrites-producers have an opportunistic behavior, being one of the first organisms to colonize the seafloor after an anoxic event. As a result, Chondrites are commonly and sometimes abundantly found in the upper layers of organic-rich sediments, including sapropels and black shales.This study focuses on sapropel S7, which was deposited between ∼198.5 and 191.9 ka at the top of Eratosthenes Seamount and exhibits abundant Chondrites. For this sapropel, we demonstrated that Chondrites-producers can bioturbate significant volumes of organic-rich sediments (over 35%), introducing oxic/dysoxic material downward into anoxic sediments enriched in redox-sensitive trace metals and organic matter. This process can dilute up to 18% the original concentration of redox-sensitive trace metals (e.g. Mo, U and V). This dilution is especially important to consider when calculating trace metals and organic matter burial flux from bulk sediment data. Therefore, Chondrites-producers can play a crucial role in altering the sediment texture and distribution of minerals and organic matter at sub-cm scale, and may thus impact paleoenvironmental and paleoceanographic reconstructions based on geochemical signals. Furthermore, the subsequent redistribution of organic matter and redox-sensitive trace metals (including oligoelements) within the sediment can affect carbon and nutrient cycling, microbial activity, organic matter degradation in deep-marine sediments, and the overall sedimentary biogeochemistry.

Relationship Between Economics of Trust and Transaction Cost: A Brief Exposition

Survival of enterprise to some degree depends on how to manage transaction cost. It is more so in a highly competitive market with competitive products such as technology-based products. In economics, the theory of transaction costs is based on the assumption that people are influenced by competitive self-interest. Transaction cost economy which was developed by Williamson (1981) is based on uncertainty and unpredictability in the world. Asset specificity, organizations that enter into transactions find it expensive to leave them, inherent opportunistic behavior of individuals in an economic transaction making it harder for contractual agreements to be enforced fully after a long period of time. Although the transaction cost has been extensively discussed and used in supply chain management field, no economic theoretical arguments has been advanced as to how transaction cost help improving economic growth. This paper attempts to explain how transaction cost could add to economic growth.