Operative Social Undertaking

It is a kind of social undertaking, which, through independent management, makes the market configuration resource and market subjects provide services, meet residents' various demand.     

Mixed Type of Social Undertaking

Mixed type of social undertaking has both public welfare attribute and product attribute, through direct investment, discount credit, financial allowance, preferential policy and so on supporting measures, and with its large-scale often     

Fraud Risk in Emerging Markets

David L. Stulb, joint leader of Ernst ＆ Young＇s global Fraud Investigations ＆ Dispute Servicespractice, said,“Major fraud and corruption scandals attract headlines around the world, dramatically affecting corporate and market values. With the fear of fraud greatest in emerging markets, and with 20% of all companies having been victims of fraud, the consequences for those companies that continue to underestimate the risk could be severe.” at the launch of the 9th Global Fraud Survey, Fraud Risk in Emerging Markets.     

Pure Public Welfare Social Undertaking

The undertaking, which the government, in order to realize the whole social members' basic social rights and meet their basic social demand, provides the whole nationals with basic public products and service according to law and regulations, the government must ensure to invest it increasingly, not to seek for any operational benefit, and increase its level and quality continuously.     

How Much of Bank Credit Risk Is Sovereign Risk? Evidence from Europe

We examine European banks' exposures to systematic and country‐specific sovereign risk. We organize our investigation around a multifactor affine credit risk model estimated on credit default swap data of different maturities. During the 2008–15 period, about one third of banks' credit risk is sovereign. However, banks strongly differ both in the magnitude and type of their sovereign exposures. Measures of indirect exposures, such as bank size and return on equity, capture these cross‐sectional differences better than measures of direct exposures. Furthermore, the properties of the distress risk premiums turn out to be important to understand the effect of sovereign risk on bank funding costs.     

What Is Systemic Risk?

The traditional view of risk in a financial system is that it is the summation of individual risks within the system. However, the financial crisis that started in 2007 has driven home that this view of risk is inadequate. It is the interactions of financial institutions and markets that determine the systemic risks that drive financial crises. We identify four types of systemic risk. These are (i) panics—banking crises due to multiple equilibria; (ii) banking crises due to asset price falls; (iii) contagion; and (iv) foreign exchange mismatches in the banking system.     

Modern Risk Management and Banking Supervision

On June12,2006,Chairman Ben S.Bernankemade a remark on modern risk managementand banking supervision at the Stonier Graduate Schoolof Banking,Washington D.C.He said that contemporary banking organizationsare exposed to a diverse set of market and nonmarke…     

Do Large Blockholders Reduce Risk?

The conventional assumption in the asset pricing literature is that the identity of a company's owners is largely irrelevant, but studies of companies with “blockholders”—shareholders with large positions in a particular company—provide grounds for questioning this assumption. Unlike the well‐diversified investors of modern portfolio theory, blockholders have strong incentives to monitor corporate performance and, when necessary, to exert control over ineffective managements and boards. The findings of many studies support the idea that blockholders have a positive effect on rates of return. The authors of this article report the findings of their recent investigation of whether blockholders might also have a positive effect on shareholder value by reducing the risk of the companies in which their holdings are concentrated. After distinguishing between companies with individual as opposed to corporate blockholders, and those with one share, one vote as opposed to those with dual‐class shares, the authors find that ownership of large positions by individuals—but not corporations—was associated with lower systematic risk (when using both Fama‐French multiple factor and CAPM models). At the same time, they find that the firm‐specific risk of such companies was higher, but “biased” toward positive outcomes—that is, smaller downsides with larger upsides. What's more, this upward shift in performance and risk‐profile was achieved at least partly through increases in productivity as reflected in higher profit margins, profitability, profit per employee, and operating leverage, and lower costs of goods sold, SGA, and cash holdings. By contrast, in the case of blockholders in companies with dual‐class share structures, all of these positive associations with blockholders were either significantly weaker, or reversed. That is, whereas the presence of individual blockholders appears to increase productivity and value under a one share, one vote governance regime, blockholders in companies with dual‐class structures were associated with higher systematic risk and reduced productivity and value.     

Why Does Implied Risk Aversion Smile?

Implied risk aversion estimates reported in the literature arestrongly U-shaped. This article explores different potentialexplanations for these "smile" patterns: (i) preference aggregation,both with and without stochastic volatility and jumps in returns,(ii) misestimation of investors’ beliefs caused by stochasticvolatility, jumps, or a Peso problem, and (iii) heterogeneousbeliefs. The results reveal that preference aggregation andmisestimation of investors’ beliefs caused by stochasticvolatility and jumps are unlikely to be the explanation forthe smile. Although a Peso problem can account for the smile,the required probability of a market crash is unrealisticallylarge. Heterogeneous beliefs cause sizable distortions in impliedrisk aversion, but the degree of heterogeneity required to explainthe smile is implausibly large. (JEL: G12, G13)     

Risk Preferences Regarding Multiple Fatalities and Some Implications for Societal Risk Decision Making—An Empirical Study

Risk preferences related to accidents or other situations involving the possibility of multiple fatalities were studied in 87 persons in Sweden belonging to two separate groups with professional or educational knowledge of risk‐ and crisis‐management issues. Use was made of a tradeoff method, the results obtained consisting of von Neuman–Morgenstern utility functions over the range of 0–1000 fatalities. Most of the utility curves for the number of fatalities were found to be convex, implying the majority of subjects to display risk‐seeking behaviour. Implications of the findings for societal risk decision making are discussed, along with prospective areas of application and the possibilities of considering other dimensions than the number of fatalities.     

A Study of the Risk Society on Subjects＇ Responsibility of Local Government Financing Platform＇s Risk

风险社会理论作为西方研究风险问题的主导范式,有别于我国目前风险管理的“技术-科学”研究路径。依托风险社会理论,在确定地方政府融资平台的风险主体及其利益诉求的基础上,探寻政府、平台公司和银行与风险成因之间的关联,指出了平台风险在各主体间的分配不均衡状况,提出风险治理要尊重公民及公民组织的治理主体地位,根据治理意愿与治理能力明确各主体差异化的治理责任,推动主体间的合作治理。     

Corporate Social Responsibility,Corporate Performance,and Pay-Performance Sensitivity—Evidence from Shanghai Stock Exchange Social Responsibility Index

Based on annual data of listed companies on Shanghai Stock Exchange (SSE) through 2009–2013, this article examines three hypotheses: first, whether a firm’s taking corporate social responsibility (CSR) affects corporate performance; second, whether corporate governance and a firm’s age positively moderate the relationship between CSR and performance; and third, whether CSR positively moderates the magnitude/direction of linkage between a firm’s performance and top management/director compensation (pay-performance sensitivity, PPS). Three proxies for CSR engagement are constructed by a firm’s inclusion in the SSE Social Responsibility Index. Empirical evidence generally shows that firms engaging in CSR tend to obtain superior performance in terms of higher profitability. However, firm’s age and sound corporate governance have little additional benefit on the effect of a firm engaging in CSR on performance. Finally, greater CSR engagement is associated with larger PPS. Principal outcome does not shift under two-stage estimation and propensity score matching (PSM) to correct for sample self-selection of CSR engagement.     

Do Female Executives Prioritize Corporate Social Responsibility?

How do female executives view corporate social responsibility (CSR)? Previous studies have reported mixed findings on the relationship between female executives and CSR. We select a sample of Chinese listed firms and use propensity score matching to construct a new sample of firms and evaluate the gender transition (from male to female) of chief executive officers or board chairpersons (executives) who are randomly assigned to firms (i.e., the gender transition of executives is regarded as an exogenous event). Subsequently, we use a difference-in-differences approach to identify the pure effect of female executives on CSR. Our results indicate that female executives are more likely to encourage CSR reporting. Moreover, we suggest that the mechanism behind female executives prioritizing CSR is altruism preference rather than risk aversion preference.     

Does Idiosyncratic Risk Matter for Individual Securities?

This paper investigates the relationship between idiosyncratic risk and returns for individual securities within a generalized autoregressive conditional heteroskedascticity (GARCH)‐in‐mean framework. We demonstrate that, on average, 15% of stocks exhibit a significant relationship between returns and risk, of which 9% are positive. These proportions vary over time and with model specifications. Some characteristics influence the probability of a positive and a negative relationship, while others appear to affect only one, but not the other. This evidence implies that the factors that explain a positive connection between idiosyncratic risk and returns are different from the factors that explain a negative connection.     

Rational Risk Perception: Utopia or Dystopia?

Societal conflicts with regard to risk management are common. The public has different beliefs than many experts and administrators with regard to such issues as the citing of a repository for spent nuclear fuel or whether genetically modified organisms should be allowed to enter the human food chain. As a result, political tensions arise and there may be a skew allocation of resources for risk mitigation. The question raised in the article is if a consensus society is possible and desirable. If views converge on high risk beliefs, the cost would be very high as well. If views converge on low risks, some hazards could be neglected and environmental damage considerable, as used to be the case in the Former Soviet Union and other socialist countries which lacked a free press. A consensus society is neither possible nor desirable. No party has access to the final truth with regard to risks and hazards; diversity is an asset.     

Management of Land Resource Put under Social Supervision

Recently the Ministry of Land Resources promised to the public that from March 1,2004, the executive affairs of the land resources management system will be open to the     

A Commentary on “Measuring Systemic Risk”

This is a short commentary on the papers presented on the “Measuring Systemic Risk” panel at the 2010 FDIC Bank Research Conference.     

The Olympic Games and the Development of Social undertakings

Sociologically, the Olympic Games belongs to the entire society where every citizen should be a beneficiary from the Olympic economy. The humanistic themes and