School of Social Sciences

Abstract. A large body of accounting research in the past has documented the existence of non linearity in the return-earnings relation and also the fact that stock prices lead earnings which means that information reflected in stock prices is more value relevant than the past series of earnings. The aim of this paper is to examine the “prices leading earnings” assumption, as well as the existence of non-linearity on the earnings-return relation in the Hellenic capital market, as means of reducing the downward bias in ERCs.

Abstract The relationship between earnings figures and stock returns has been a topic of international research since decades. The purpose of this paper is to investigate the above relationship in the context of the Greek capital market. Previous studies resulted in controversial results regarding the usefulness of models which were using earnings levels or earnings changes as the explanatory variable.

Abstract Over the last five years, few issues have proven more controversial in empirical economics than the so-called convergence hypothesis. This paper considers the issue of convergence across Greek regions, using time series techniques. Our empirical results support the popular view prevailing in Greece about the existence of dualism across the Southern and Northern regions of Greece.

Research on the productivity effects of unionism over the last two decades has been lively, offering new insights to the theoretical and empirical relationship between these two labor market aggregates. Partly inspired by the controversial work of Freeman and Medoff (1979 and 1984), numerous empirical studies have examined the extent and direction of the union

Abstract Manufacturing price markup equations are estimated for 15 OECD countries using annual data. The specification is based on a CES production function where the markup depends on demand, competitors' prices and uncertainty. We test for cointegration using the Pedroni panel tests and a panel version of the Johansen test, and find evidence for unique cointegrating vectors. Estimation of the long-run parameters is performed with a pooled mean group method, leaving the short run heterogeneous dynamics unconstrained.

ABSTRACT This paper tests for the influence of political instability on UK economic growth between 1961 and 1997. We construct six variables that quantify political instability and examine the effect on growth. The results suggest that there is a strong link. GARCH-M models reveal negative effects of instability on growth and positive effects on growth uncertainty. Uncertainty in itself does not affect growth.

Abstract: We study the link between elections, fiscal policy and economic growth. The set-up is a general equilibrium model of endogenous growth and optimal fiscal policy, in which two political parties can alternate in power. The party in power chooses jointly how much to tax and how to allocate its total expenditure between productive and non-productive activities.

Abstract This paper investigates the long-run relationship between trade unionism and economic growth using a panel data set comprising of 18 OECD economies. Much of the existing evidence on the effects of unionism on productivity derives from microeconomic studies, with little attention to the dynamics of this relationship and the economy-wide effects.

Increasing competition in the European Union (EU) and world markets affects the Greek manufacturing sector. Capital structure is essential for the survival, growth and performance of a firm. There has been a growing interest worldwide in identifying the factors associated with debt leverage. However, nothing has been done so far in contrasting small and medium sized enterprises (SMEs) and large sized enterprises (LSEs) on these aspects. SMEs are very important in the Greek manufacturing sector for employment and growth. Empirical studies show that capital structure and the factors affecting it vary with firm size. In this paper we investigate the determinants of capital structure of Greek manufacturing firms and formulate some policy implications that may improve the financial performance of the sector. Our study utilizes panel data of two random samples, one for SMEs and another for LSEs. The findings show that profitability is a major determinant of capital structure for both size groups. However, efficient assets management and assets growth are found essential for the debt structure of LSEs as opposed to efficiency of current assets, size, sales growth and high fixed assets, which were found to affect substantially the credibility of SMEs. In an era of increasing globalization, the findings imply that Greek SMEs should focus their efforts on (a) increasing their cash flow capacity through better assets management and achievement of higher exports and (b) ensuring good bank relations, but at the same time, turn to alternative forms of financing. Greek LSEs should adopt strategies that will lead to the improvement of their competitiveness and securing new forms of financing. Government policy measures aiming at structural changes and economic efficiency should be designed clearly depending upon its targets: SMEs need policies that will encourage information exchange and co-operation in local and foreign markets and use of e-business, as well as, financial assistance. On the other hand, LSEs should be supported by policies aimed at new high-technology investments, entrance of new firms and foreign investments in the country, tax alleviation and increase of R&D and training expenditures. The upgrading and transparency of the capital market in Greece is expected to improve the capital structure of Greek manufacturing firms.