The impact of a ready‐made state: East Germans in comparative perspective

To understand the impact of reunification upon Germans, we must make before and after comparisons across time, and also across central Europe. The first section shows that from the perspective of comparative Communist regimes, east Germans have been doubly advantaged, in former times because of belonging to a relatively prosperous part of the Soviet bloc and since reunification as subjects of a ‘ready‐made state’ with democracy and a wealthy social market economy. Analysis in the second section of the impact of reunification on west Germans shows that a significant proportion feel less satisfied than before, whereas the opposite is the case for east Germans. The third section introduces comparisons with Austria. Like the Federal Republic, it has enjoyed the advantages of democracy and a market economy, but without the trauma of division and reunification.     

Foundation Ownership and Financial Performance: Do Companies Need Owners?

A curious ownership structure is found in Northern Europe—foundations that own and operate business companies. The foundations are non-profit entities, they have no members and no owners, and they cannot be dissolved. In many cases, these entities control more than 50% of the votes in successful international companies. Obviously, this structure completely blocks the market for corporate control, but it also violates other basic principles of agency theory and corporate finance. Nevertheless, we present evidence that a sample of foundation-owned companies listed on the Copenhagen Stock Exchange are at least as efficient as other listed companies in terms of risk adjusted stock returns, accounting returns and Tobins Q. Thus, they question whether profit-seeking ownership is a necessary condition for competitive enterprise.JEL Classification: D23, G34, L31     

Appropriately Upset? Emotion Norms and Perceptions of Crime Victims

Victims who express less emotion in response to a crime are perceived as less deserving, less sympathetic, and they have less punishment assigned to the offender who committed the crime. This study considers the extent to which emotion norms underlie perceptions of victims who testify. Two studies investigate the circumstances in which emotional reactions to a crime are seen as "unusual" and whether a more general emotion norm underlies responses to victim testimony. We test a "victim-role" norm against a "proportionality" norm by crossing the severity of victim's emotional response (severe or mild) with the seriousness of a crime (serious or less serious). Results across two studies lend greater support to the notion that people expect victims to match the intensity of their emotional response to the seriousness of the event (i.e., a proportionality rule), although we also find instances in which expectations of the victim are not strong. Gender of the victim exhibited small and contingent effects. We discuss the relevance of emotion norms to legal settings.