Towards a fair degrowth-society: Justice and the right to a ‘good life’ beyond growth

A critical scrutiny is presented of the ethical assumptions of growth and degrowth theories with respect to distributive justice and the normative conditions for a ‘good human life’. An argument is made in favor of Sen's and Nussbaum's ‘capabilities approach’ as the most suitable theoretical framework for addressing these questions. Since industrialization economic growth has played a key-role as an attraction pole, around which issues of social justice, political stability, and welfare protection seemed to gravitate. Accordingly, it is considered as a necessary condition for both intragenerational and intragenerational justice. These assumptions have been subjected to substantial critique by degrowth-thinkers, according to which economic growth is rather a threat than a condition for intragenerational and intergenerational justice. However, a theoretical underpinning of these assumptions is missing so far. In the paper I analyze the ethical and moral assumptions in both approaches by focusing on the theories of justice that are implicitly laid down as a background for their arguments (welfarism, resourcism, and the capabilities-approach). In a detailed analysis of the main critical points formulated by degrowth advocates I take the capabilities approach perspective and show why it can offer a more adequate normative underpinning for the conceptualization of a degrowth society.     

Regulatory risk and auditors’ reporting conservatism: Evidence from Chinese comment letters

We study how auditors respond to regulatory risk that arises when their clients receive comment letters from Chinese stock exchanges. Our results show that auditors are more likely to issue modified or conservative—but not excessively conservative—audit opinions to the recipients of comment letters. This reporting conservatism is especially pronounced when the regulatory risk perceived by auditors rises, such as when comment letters contain more questions, when more comment letters are issued, when the auditors must give opinions on specific issues, or when comment letters involve more auditor issues. Comment letters have been issued in China since 2013, but did not have to be disclosed until 2015. We find no significant difference in the impact of comment letters on auditor conservatism between pre- and post-disclosure periods. Further, the size of auditor firms has no significant effect on the impact of comment letters in post-disclosure periods. We interpret our results as supporting the regulation risk hypothesis.     

Toward the NGO-involved schooling: a study on teachers’ risk perceptions and teachings

This paper focuses on revealing the ambivalent situations in teachers’ risk perceptions and teachings. Three ambivalent situations are found. The first is that, although the teachers reported that collective-related risks are more important than personal-related risks, they are less active in gathering knowledge regarding collective-related risks. The second situation is that, although teachers try to supplement their teaching materials with more risk phenomena, this may just be in response to their occupational needs, rather than due to their moral reflexivity. The third ambivalent situation is that the competitive and individualized environment seems to limit the teachers’ risk teaching. Based on these findings and other research, the author states that NGO-involved schooling might be a significant strategy to face the challenge of world risks in the neoliberal world.     

‘Ordinary science intelligence’: a science-comprehension measure for study of risk and science communication,with notes on evolution and climate change

This paper describes the ‘ordinary science intelligence’ scale (OSI_2.0). Designed for use in the empirical study of risk perception and science communication, OSI_2.0 comprises items intended to measure a latent capacity to recognize and make use of valid scientific evidence in everyday decision-making. The derivation of the items, the relationship of them to the knowledge and skills OSI requires, and the psychometric properties of the scale are examined. Evidence of the external validity of OSI_2.0 is also presented. Finally, the utility of OSI_2.0 is briefly illustrated by its use to assess standard survey items on evolution and global warming: when administered to members of a US general population sample, these items are more convincingly viewed as indicators of one or another latent cultural identity than as indicators of science comprehension.     

Perceived risk and the earthquake insurance purchase decision: a commentary on a paper by Lennart Sjöberg

Sjöberg in his 1994 report entitled 'Perceived risk vs. demand for risk reduction' has argued that 'risk perception' involves two separable components: the probability that an event will occur and the consequences of this event. Based on three empirical studies, Sjöberg concluded that one of these two factors is far more important than the other: that the perceived severity of consequences is a better predictor of demand for mitigation than the perceived probability of harm or risk. This paper focuses on the second of the three reported studies involving the adoption of home insurance in Sweden. The empirical analysis reported here, based on survey research in California, supports the conclusion that perceived probability of occurrence continues to be an important factor in the decision to purchase voluntary hazards insurance.     

Experiencing risk: the effect of the experiential life-skills centre ‘Warning Zone’ on children’s risk perception

This study examined the psychological effects of the Warning Zone experiential life-skills centre on risk perception. The aim of Warning Zone is to educate children about dangers and risks they may encounter in everyday life, with a view to preventing injury. To evaluate changes in risk perception, a quasi-experimental study was undertaken in which children’s risk perception was measured before, after, and one month after the Warning Zone experience. This research also examined children from different types of schools, in order to assess socio-economic factors. Children’s risk perception increased significantly after Warning Zone, and this significant increase was retained one month later. Differential effects of Warning Zone were found between children from different school types, as were pre-existing differences in risk perception between these groups. Children from more deprived backgrounds had better understanding of risks prior to their visit to Warning Zone and a month later had better retained the message of Warning Zone about risks. We conclude that Warning Zone is effective at raising children’s perceptions of risk.     

‘Slow-burn’ spillover and ‘fast and furious’ contagion: a study of international stock markets

‘Fast and furious’ contagion across capital markets is an important phenomenon in an increasingly integrated financial world. Different from ‘slow-burn’ spillover or interdependence among these markets, ‘fast and furious’ contagion can occur instantly. To investigate this kind of contagion from the US, Japan and Hong Kong to other Asian economies, we design a research strategy to capture fundamental interdependence, or ‘slow-burn’ spillover, among these stock markets as well as short-term departures from this interdependence. Based on these departures, we propose a new contagion measure which reveals how one market responds over time to a shock in another market. We also propose international portfolio analysis for contagion via variance decomposition from the portfolio manager’s perspective. Using this research strategy, we find that the US stock market was cointegrated with the Asian stock markets during four specific periods from 3 July 1997 to 30 April 2014. Beyond this fundamental interdependence, the shocks from both Japan and Hong Kong have significant ‘fast and furious’ contagion effects on other Asian stock markets during the US subprime crisis, but the shocks from the US have no such effects.     

Accounting activism and Bourdieu's ‘collective intellectual’ – Reflections on the ICL Case

The aim of this paper is to reflect upon the practice of accounting academics as ‘collective intellectuals’ – inspired by the actions and conception of Pierre Bourdieu. While accounting researchers have drawn upon Bourdieu's theoretical contributions on habitus, field and capital, little attention has been paid to his later, more critical ideas and practice of intervention post 1995. As a result, accounting research has yet to discover Bourdieu's work on the ‘collective intellectual’ and, thus, consider its contribution to our understanding of how accounting academics can participate in a form of activism against neoliberalism that would not be in contradiction with professional norms of rigorous research. Rather, activism could enhance academic research.Central to this paper is a reflection on a case of intervention involving a diverse collection of academics and activists who came together to launch a coordinated response to a large-scale industrial disaster in Scotland in 2004. The collective in question took various interventionary steps to campaign for a Public Inquiry into the disaster and seek justice and accountability for workers past and present. These steps are analysed with respect to the methods adopted and the work and practice of Bourdieu's collective intellectual.     

Regulators as ‘agents’: power and personality in risk regulation and a role for agent‐based simulation

We critically examine how evidence and knowledge are brokered between the various actors (agents) in regulatory decisions on risk. Following a précis of context and regulatory process, we explore the role power and personality might play as evidence is synthesised and used to inform risk decisions, providing a review of the relevant literature from applied psychology, agent‐based simulation and regulatory science. We make a case for the adoption of agent‐based tools for addressing the sufficiency of evidence and resolving uncertainty in regulatory decisions. Referring to other environmental applications of agent‐based decision‐making, we propose how an agent model might represent power structures and personality characteristics with the attending implications for the brokering of regulatory science. This critical review has implications for the structuring of evidence that informs environmental decisions and the personal traits required of modern regulators operating in facilitative regulatory settings.     

Looking for leaders: ‘Balancing’ innovation,risk and management control systems

Using the concept of institutional leadership we explore how leaders balance creativity and product innovation against administrative arrangements such as risk management and management control. Using two case companies we produce distinct contrasts to this balance with neither showing the ambidexterity needed to ‘secure’ (Selznick, 1957) the value of innovation and exploration and develop risk management and control systems for exploitative activities. One case company stuck to its past trajectory of innovation, ignoring risk management and control; the second case company had systems for its exploitative operations but was struggling to maintain any value of innovation and exploration. Nevertheless, one over-riding similarity in both organisations was that the leadership of the risk systems and management controls was with the engineers; accountants were not to be seen.     

Q method can identify diverse perspectives on ‘helpful’ information on cancer clusters and inform risk communication generally

Communication by state public health agencies about cancer clusters is complicated by divergent official and citizen beliefs about causation (e.g. chance versus environmental pollution). We use Q method, rarely applied in the risk field, to explore disparate perspectives on what people deem helpful and unhelpful in background (not site-specific) information about cancer clusters. Q method identified five unique perspectives, with low inter-factor correlations: Cancer Causation, Best Information, Cancer Frequency, Study Success, and Empathy/Competence. Besides discussing implications of these perspectives for improving communication about cancer clusters, we use this case to illustrate Q method’s more general ability to represent variability in attitudes about risk and risk information and to improve risk communication.     

‘Living on the edge’: using cognitive filters to appraise experience of environmental risk

Individuals respond to an experience of risk, both in attitudinal and behavioural terms as a result of how that experience is interpreted and appraised. Experience of local flooding can in theory, inform individuals’ attitudes towards climate change. This trend however, is not observed in all cases and is highly dependent on the local, situational context. This paper postulates that the variation observed in attitudinal and behavioural responses by farmers to climate change following experiences of local flooding can, in part, be explained by the Cognitive Filters of Experience Appraisal Model introduced in this paper. The model is developed firstly through a review of the existing literature concerning appraisal (cognitive and experience). Secondly, the model is framed by empirical research via fifteen face to face interviews with farmers in Gloucestershire, England, who have all directly experienced flooding in recent years. The study is exploratory in nature, and the qualitative data serve as contextualised accounts of the different patterns of experience appraisal. The paper contributes to existing literature by developing current understandings of experience appraisal as well as providing qualitative detail to an area which has generally only been researched quantitatively. The model of experience appraisal which is put forward could be applied to multiple contexts of environmental risk.     

Determinants of risk behaviour: effects of perceived risks and risk attitude on farmer’s adoption of risk management strategies

The importance of risk perception and risk attitude for understanding individual’s risk behaviour are independently well described in literature, but rarely combined in an integrated approach. In this study, we propose a model assuming the choice to implement certain risk management strategies to be directly driven by both perceptions of risks and risk attitude. Other determinants influence the intention to apply different risk strategies mainly indirectly, mediated by risk perception and risk attitude. This conceptual model is empirically tested, using structural equation modelling, for understanding the intention of farmers to implement different common risk management strategies at their farms. Data are gathered in a survey completed by 500 farmers from the Flanders region in Belgium, investigating attitudes towards farming, perceived past exposure to risk, socio-demographic characteristics, farm size, perceptions of the major sources of farm business risk, risk attitudes and the intention to apply common risk management strategies. Our major findings are: (i) perception of major farm business risks have no significant impact on the intention of applying any of the risk strategies under study, (ii) risk attitude does have a significant impact. Therefore, rather than objective risk faced and the subjective interpretation thereof, it is the general risk attitude that influence intended risk strategies to be implemented. A distinction can be made between farmers willing to take risk, who are more inclined to apply ex-ante risk management strategies and risk averse farmers who are less inclined to implement ex-ante risk management strategies but rather cope with the consequences and diminish their effects ex-post when risks have occurred.     

Optimal time to sell a stock in the Black–Scholes model: comment on ‘Thou shalt buy and hold’, by A. Shiryaev,Z. Xu and X.Y. Zhou

We reconsider the problem of the optimal time to sell a stock studied by Shiryaev et al. (2008 Shiryaev, A, Xu, Z and Zhou, XY. 2008. Thou shalt buy and hold. Quant. Finan., 8: 765–776. [Taylor & Francis Online], [Web of Science ®] , [Google Scholar]) (following in this issue of Quantitative Finance) using path integral methods. These methods allow us to confirm the results obtained by these authors and extend them to the entire parameter region. We also obtain the full distribution of the time t_m at which the maximum of the price is reached for arbitrary values of the drift.     

New development: Parliamentary ‘watchdogs’ taking a higher profile on government programme performance and accountability?

The ‘Holy Grail’ of decades of public sector reform has been the public availability of readily-understandable, reliable and meaningful performance information about government activities and programmes. Maps have been drawn; processes have been developed; some actual progress has been made in a number of countries; but the end is not in sight. Put simply, particularly in Westminster government-type systems, it remains the case, at least in broad terms, that the government is responsible for policy; the public service for administration and service delivery; and the parliament for oversight and review. In reality, the situation has become more complicated with the growth of the ‘information economy’, internationalization, the greater involvement of the private sector in government activities generally and changing public views and expectations of government, not least in respect of trust and confidence in politicians and public institutions. At the very least, it is still a situation of ‘work-in-progress’ trying to catch up with the changing national and international environment.