Corporate social responsibility,stock prices,and tax policy

We model a market in which some investors get utility from owning shares of firms that engage in corporate social responsibility (CSR). In equilibrium, investors' CSR considerations influence portfolio choices, stock prices, and CSR spending. We study tax policy designed to maximize total giving (individual and corporate) net of government tax breaks and find that its effectiveness is non‐monotonic in the proportion of altruistic investors: with few or many altruistic investors, it has little impact on giving, but, at intermediate levels, effective tax policy intuitively relates the corporate tax rebate rate on giving and the cap on allowable tax savings.     

An analysis of reported driver behaviour in samples of domestic and expatriate Iranians

Objective: Few studies have examined the differences in self-reported driver behaviour between drivers of one nationality who live in their country of origin (domestic drivers) and those who live abroad (expatriate drivers). This study aimed to explore the differences in self-reported driver behaviour among domestic and expatriate Iranian drivers. In addition, we explore the factors associated with self-reported accident involvement including personal injuries in these groups. Methods: A web-based version of the Driver Behaviour Questionnaire (DBQ) measuring self-reported driver errors and violations was distributed to respondents by availability sampling in social networks and by bulk email services. About 1000 individuals living in all provinces in Iran were invited to participate in the survey. We also invited Iranians living in more than 20 countries. A total of 634 domestic Iranians and 135 expatriate Iranians responded to our enquiry. The measure of driving behaviour asked the respondents about violations and error conduct during the last two years on any kind of road. The sample of domestic and expatriate drivers did not differ significantly in gender, age, education and driving hours per day. Domestic drivers were more likely to have experienced an accident in their lifetime. Both samples were relatively young of age (Domestic M integer?=?28.53, SD?=?6.85; Expatriate M integer?=?29.21, SD?=?7.71). Results: The results suggested that emotional violations were more common among the drivers living in Iran. Emotional violations and driver errors were related to self-reported accident involvement among domestic drivers while ordinary rule violations were associated with such accidents in the expatriate group. Conclusions: Iranian expatriate drivers reported less emotional violations than domestic drivers. A potential reason is that road traffic infrastructure and regulation enforcement in high-income developed countries do not facilitate emotional violations. Implications for road traffic safety and methodological limitations of the study are discussed.     

Correlation between gross domestic product,utilization of in vitro fertilization,and pregnancy success rate across the world

Abstract

Background: IVF is now a wide spread procedure globally, and currently 65 countries report annually all or part of their IVF/ICSI cycles, from which the International Committee Monitoring progress in Assisted Reproduction Technology (ICMART) published its report. There is considerable variation in the utilization (number of cycles per population) globally.

Aims: The objectives of this study were to assess whether utilization is related to national wealth, presented as gross domestic product (GDP), and whether the GDP has any effect on success in IVF treatment, mainly delivery and clinical pregnancy rates.

Results: The results demonstrated a significant positive correlation between utilization and GDP (CC = 0.563, p?=?0.00000194), and both utilization and GDP have strong negative correlations to successful outcome of the treatment-clinical pregnancy rate (CC: ?0.460, p?=?0.00015; CC: ?0.399, p?=?0.0012, respectively) and delivery rates (cc = ?0.396, p?=?0.00484; cc = ?0.3, p?=?0.0179, respectively).

Conclusions: Poor nations have less utilization of IVF, probably due to the limited affordability of the treatment, but reassuringly do not seem to have less success in the treatment. Further research is required to fully understand the implications of these correlations and to better design national and international fertility policies.     

A system dynamics model for the assessment of the effects of advertising and sales promotion on profitability

Advertising and sales promotion have significant impact on raising customer awareness. They are tools by which customers become acquainted with new and innovative products and services of the companies. Despite the importance of these tools in increasing sales, it is not easy to evaluate their effect on sales. One of the problems confronted by the marketing managers is the determination of a clear relationship between the effectiveness of advertising and sales promotion on profitability. In this article, considering the relationship between these tools and brand equity, we have attempted to determine the relationship between effectiveness of these two factors and profitability. Next, a system dynamics model for representing the effects of marketing communication tools on company profitability is offered. Finally, using the data from a corporation and the numeric values related to each of the elements in the model, an attempt has been made to determine a number representing the magnitude of the effect of advertising and sales promotion on the corporation＇s revenue and profitability and to draw the respective curves related to the effects of these two factors.     

Discussion of “Earnings Management and the RevelationPrinciple”

Review of Accounting Studies -     

Accounting, Valuation and Duration of Football Player Contracts

Abstract:   FRS 10 requires investments in player contracts by football companies to be capitalized and amortized. Given the high degree of uncertainty associated with such contracts, it is not clear that this treatment is consistent with asset capitalization criteria. The evidence provided in this paper does not support inconclusively this capitalization requirement in that it indicates weak association of investment in player contracts with three measures of future benefits. In particular, the duration of this association is at most two years, which is shorter than the duration implied by the amortization period reported by sample companies. Nonetheless, other findings suggest that market participants seem to agree with the treatment prescribed by FRS 10 . These results should be of interest to practitioner and standard setters who (axiomatically) regard intangibles acquired in an arm's length transaction as assets.     

Strong equilibrium in cost sharing connection games

We study network games in which each player wishes to connect his source and sink, and the cost of each edge is shared among its users either equally (in Fair Connection Games—FCG's) or arbitrarily (in General Connection Games—GCG's). We study the existence and quality of strong equilibria (SE)—strategy profiles from which no coalition can improve the cost of each of its members—in these settings. We show that SE always exist in the following games: (1) Single source and sink FCG's and GCG's. (2) Single source multiple sinks FCG's and GCG's on series parallel graphs. (3) Multi source and sink FCG's on extension parallel graphs. As for the quality of the SE, in any FCG with n players, the cost of any SE is bounded by H(n) (i.e., the harmonic sum), contrasted with the Θ(n) price of anarchy. For any GCG, any SE is optimal.     

Psychology, Behavioral Economics, and Public Policy

Economics has typically been the social science of choice to inform public policy and policymakers. In the current paper we contemplate the role behavioral science can play in enlightening policymakers. In particular, we provide some examples of research that has and can be used to inform policy, reflect on the kind of behavioral science that is important for policy, and approaches for convincing policy-makers to listen to behavioral scientists. We suggest that policymakers are unlikely to invest the time translating behavioral research into its policy implications, and researchers interested in influencing public policy must therefore invest substantial effort, and direct that effort differently than in standard research practices.     

Shareholders and stakeholders: How do directors decide?

This study examines how directors make decisions that involve shareholders and other stakeholders. Using vignettes derived from seminal court cases, we construct an index of directors' shareholderism as a general orientation on this issue. In a survey of the entire population of directors and CEOs in public corporations in one country, we find that directors' personal values and roles play an important part in their decisions. Directors and CEOs are more pro‐shareholder the more they endorse entrepreneurial values—specifically, higher achievement, power, and self‐direction values and lower universalism values. While employee representative directors exhibit a lower baseline level of shareholder orientation, they nonetheless often side with shareholders. Copyright © 2011 John Wiley & Sons, Ltd.     

The global recession issue: Introduction—Part I

This special issue concentrates on the global economic downturn that reached its lowest point in late 2008. Signals of an impending crisis started in 2007 with a wave of insolvent subprime mortgages in the United States, but the seeds were planted years earlier. In its scope, length, and countries affected, this downturn is the worst in over 70 years. It is changing and will continue to change local and global business and economic environments. This issue aims to learn from past mistakes and better understand the new environment. Each part contains five articles and an introduction. Part I has a global perspective; Part II focuses on specific national economies. © 2011 Wiley Periodicals, Inc.