New Nonlinear Approaches for the Adjustment and Updating of a SAM

Many structural relationships should be taken into account in any reasonable adjustment and updating process. These structural relationships are mainly represented by ratios of different types, such as technical coefficients or the proportion of the cell value in relation to its row or column total. We believe that in many cases (either because of lack of information or when the time elapsed for the estimation of a social accounting matrix is not long enough to allow for any significant structural change) the updating process should try to minimize the rela- tive deviation of the new coefficients from the initial ones in a homogeneous way. This homogeneity would mean that the magnitude of this relative deviation is similar among the elements of each row or column, therefore avoiding the concentration of the changes in particular cells of the SAM. In this work, we propose some new adjustment criteria in order to obtain a more homogeneous relative adjustment of the structural coefficients. These criteria combine the adjustment method proposed by Matuszewski et al. (1964) with other deviation functions. Each of the adjustment criteria proposed leads to a nonlinear optimization problem which is reformulated as a linear program. We test the usefulness of this proposal by comparing its results with the ones obtained by more standard approaches and we are able to show that these approaches tend to produce a less homogeneous pattern of coefficient adjustment, under certain circumstances, than the ones we put forward.     

The legal implications of workplace smoking policies

Smoking in the workplace has become a difficult and complex legal issue. Both smoking and nonsmoking employees have used various legal bases in their attempts to enforce their rights. An analysis of the reported legal decisions indicates that the trend is in favor of limiting the rights of smokers. As nonsmokers become more aggressive in their demands for a smoke-free environment, it will become increasingly important for employers to be well apprised of the legal implications associated with smoking in the workplace.     

The Role of Foreign Shareholders in Disciplining Financial Reporting

We investigate the role of foreign shareholders in improving the quality of accounting information provided by firms domiciled in countries with low de facto institutional quality. Using a sample of firms from four South European countries (Greece, Italy, Portugal and Spain) for which we observe detailed ownership evolutions over the period 2002–2007, we find that increases in foreign ownership lead to increases in financial reporting quality but only if the foreign shareholders are domiciled in countries with strong investor protection mechanisms. Further, we find that the improvement in financial reporting quality is more pronounced in the case of foreign institutional investors. Finally, our results hold before and after the introduction of the International Financial Reporting Standards (IFRS) in 2005.     

The relation between segment disclosure and earnings quality

We investigate the relation between segment disclosure and earnings quality. Using a US sample for the period 2001–2006, we find a positive relation between earnings quality and the quantity of segment disclosures. We use lead-lag tests to examine the flow of causality, and our results show that current segment disclosure is positively related to prior levels of earnings quality, while current earnings quality scores are not related to prior levels of segment disclosure. Thus, the causality flows from earnings quality to segment disclosure. Our results hold for both business and geographic segment disclosure.     

Market and Model Credit Default Swap Spreads: Mind the Gap!

Structural models of default establish a relation across the fair values of various asset classes (equity, bonds, credit derivatives) referring to the same company. In most circumstances such relation is verified in practice, as different financial assets tend to move in the same direction at similar speed. However, occasional deviations from the theoretical fair values occur, especially in times of financial turmoil. Understanding how the dynamics of the theoretical fair values of various assets compares to that of their market values is crucial to a number of market participants. This paper investigates whether a popular structural model, the CreditGrades approach proposed by Finger (2002) , Stamicar and Finger (2005) , succeeds in explaining the dynamic relation between equity/option variables and Credit Default Swap (CDS) premia at individual company level. We find that CDS model spreads display a significant correlation with CDS market spreads. However, the gap between the two is time varying and widens substantially in times of financial turbulence. The analysis of the gap dynamics reveals that this is partly due to episodes of decoupling between equity and credit markets, and partly due to shortcomings of the model. Finally, we observe that model spreads tend to predict market spreads.     

Reorganizing an existing volunteer fire station network in Germany

Volunteer fire departments have been founded to ensure public safety in case of fire and to provide support for professional firefighters. Most of the current stations date back to the beginning of the 19th century. Today, volunteer fire departments face numerous challenges, such as reduced number of following young volunteers or decreasing public budgets. We quantify these effects and identify different alternatives, such as relocating or closing of stations to minimize the impact on rescue service supply. Based on comprehensive case studies in Bochum, Germany it is apparent that these recommendations provide an excellent toolset for a prospective planning approach.     

Gender fluidity across the world: a Multilevel Item Response Theory approach

The concept of gender identity refers to the intrinsic self-identification of personal femaleness and maleness. Starting from 1970s, in the framework of gender studies, a theoretical and conceptual demarcation between sex and gender has been proposed. The term “gender” starts being referred to social and cultural constructions of masculinities and femininities, not to the state of being male or female. Recent studies on gender identity suggest that the binary notion of gender identity is changing, recognizing that there are different views on how gender may be performed or experienced. The purpose of our research is to provide accounts of gender code transformation around the world and identify differences in feelings, attitudes, beliefs and behaviors associated with gender across different identity profiles. Using a web-based survey, 1,600 respondents were recruited by a snowball sampling procedure. Based on the intersections of the responses given by participants on three basic dimensions (biological sex, gender self-identification and sexual orientation) the individuals have been categorized into nine groups. To comply with the aims of this study, a two-parameter Multilevel Item Response Theory model has been employed as an appropriate statistical tool for considering both person and item effects on the response data and assessing the effect of group membership on the overall variability.     

HRM practices used to promote pro-environmental behavior: a UK survey

To date, the extent to which UK organizations use human resource management (HRM) practices to promote pro-environmental behavior through workplace HRM policies and initiatives is under-researched within the literature. Therefore, this paper presents results of a survey investigating current HRM practices used to promote pro-environmental behavior in a sample of 214 UK organizations representing different sizes and industry sectors. Overall, findings indicated that HRM practices are not used to a great extent to encourage employees to become more pro-environmental. The most prevalent practices used within organizations incorporated elements of management involvement supporting the idea that managers are the gatekeepers to environmental performance. Although organizations indicated that some HRM practices were more effective than others at encouraging pro-environmental behavior in their staff, only a very small percentage of organizations actually conducted any form of evaluation; organizations consequently lack clear evidence as to whether their HRM practices actually result in employee behavior change. Practical implications and future research directions are discussed.