Limits‐to‐arbitrage,investment frictions,and the investment effect: New evidence

This study comprehensively reexamines the debate over behavioral and rational explanations for the investment effect in an updated sample. We closely follow the previous literature and provide several differences. Our tests include five prominent measures of corporate investment and corporate profitability in q‐theory and recent investment‐based asset pricing models. Both classical and Bayesian inferences show that limits‐to‐arbitrage tend to be supported by more evidence than investment frictions for all investment measures. When idiosyncratic volatility and cash flow volatility are used in measuring investment frictions, the inference is more favorable for the rational explanation.     

Futures-thinking and identity: Why “Futures Studies” is not a field, discipline, or discourse: a response to Ziauddin Sardar's ‘the namesake’

The term we use to describe the study or research of the future or futures is indeed important, and “futures studies” is preferable, although there is considerable dispute as to who and what is involved. Even more important is the far deeper problem of defining the “we” and what “we” in fact do. Futures studies not only considers wickedly complex problems, but it is itself a wicked entity, with many puzzles and contradictions. To illustrate, a taxonomy of 12 types of futurists, first articulated in 1985, is revisited, with special emphasis on the relative handful of Synoptic Generalists, the larger category of Specialized Futurists, the still larger entity of Futurized Specialists, and the largest entity of Closet Futurists who think about futures-often in a leading-edge way-but do not identify at all with futures studies, or are seen as futurists. Most contributors to Futures and other futures journals, as well as listees in the 2000 Futurist Directory, appear to have a secondary “futurist” identity at best. The fuzzy entity of “futures studies” is thus quite unlike any field or discipline, because it is easily entered by specialists who identify with the entity weakly, while many of the most important futures-thinkers are outside the entity. Instead of denying this paradox, the reality should be acknowledged, and an alterative paradigm for “futures studies” should be seriously considered.     

An alternative measure of the “world market portfolio”: Determinants, efficiency, and information content

The world market portfolio plays an important role in international asset pricing, but is unobservable in practice. We first propose a framework for constructing a market proxy that corresponds to the “market portfolio” of financial theory. We then construct this proxy, analyze its determinants and test its efficiency and explanatory power over the period 1975-2007 with respect to the return generating processes of a broad asset universe. We show that its major determinants are traded assets and that it is not efficient. However, it is significant for explaining individual asset returns over an asset universe that includes stocks, bonds, money markets and commodities. The explanatory information is incremental to what is available in traded asset prices and the significance of this information is robust with respect to diversified portfolios generated by factor analysis and to characteristic-sorted portfolios as well as to various model specifications, including the single-index model, the Fama-French (1992) three factor model for stocks, and various specifications of multi-index models hedged and unhedged for foreign currency risk.     

‘In the end, we have the Gatling gun, and they have not’: Future prospects of indigenous knowledges

Charles Taylor argues the superiority of Western technology demonstrates the epistemological superiority of Western science over indigenous knowledges. I argue Taylor's “might makes right” argument lacks deductive and inductive cogency, begs significant questions against indigenous knowledges, and confounds military subjugation with philosophical refutation. Polycentric global epistemology represents one possible future of indigenous knowledges. It consists of a variety of dialogues between mutual epistemological “others”. Participants ask, “how may this or that knowledge practice be brought into the service of human well-being?” It admits all varieties of knowledge practices ranging from rational argument and experimentation to dance, song, and ritual performance. It establishes a trading zone for mutual sharing, borrowing, and learning as well as collaborative projects.     

Bank Competition: Measurement,Decision‐Making,and Risk‐Taking

This paper investigates whether greater competition increases or decreases individual bank and banking system risk. Using a new text‐based measure of competition, and an instrumental variables analysis that exploits exogenous variation in bank deregulation, we provide robust evidence that greater competition increases both individual bank risk and a bank's contribution to system‐wide risk. Specifically, we find that higher competition is associated with lower underwriting standards, less timely loan loss recognition, and a shift toward noninterest revenue. Further, we find that higher competition is associated with higher stand‐alone risk of individual banks, greater sensitivity of a bank's downside equity risk to system‐wide distress, and a greater contribution by individual banks to downside risk of the banking sector.     

Re-framing a ‘subfusc’ Institute: Building on the past for the future at Chartered Accountants’ Hall, London, 1965–1970

The study which follows traces the circumstances surrounding the rebuilding of Chartered Accountants’ Hall, London, from ca. 1965 to 1970, in order to show how the Institute of Chartered Accountants in England and Wales consciously utilised the architecture of its remodelled headquarters for status-building purposes and for adjusting public perceptions of its role in society. It proceeds by outlining the Hall's prehistory, dealing with the earlier use of architectural effect by the Institute to build its status when Chartered Accountants’ Hall was first built in 1893. Setting the Hall's extension in the context of post-World War II Britain and a rapidly expanding Institute, it details the practicalities associated with the rebuilding; it also outlines the architectural climate of the times and reveals the architect's design ideas and use of architectural metaphors and iconography for status building and related purposes. The study makes clear the role of key individuals within the Institute in forwarding the project, as well as emphasising the unique, creative contribution of the architect. It also offers some refinements to the findings of Macdonald (1989) and McKinstry (1997) concerning the role and use of professional headquarters as status symbols.     

Land, conflict, identity in India’s north-east: negotiating the future

Even a peripheral examination of major conflicts across the world reveals that these revolve around one critical natural resource: land. Whether in the Middle East, Ireland or closer home in Jammu and Kashmir, the battle is between those who believe in a boundary authorized by a particular political dispensation and those who believe that their ethnic and sub-nationalistic or nationalistic claims surpass such barriers. The North East of India, that little wedge of land protruding above Bangladesh, jutting into and flanked by Tibet/China, Myanmar and Bhutan, is a fascinating example of how mindsets and attitudes combined with intensely competitive and unbending views of history and geography make ethnic and demographic problems extremely difficult to resolve. Patronage by the Central Government, which is resented, and the physical and emotional distance from the mainland have combined to produce a strange psyche of dependence, bitterness and alienation in the region. Despite the seeming lack of answers for the future, it is evident that the region has to build on its natural advantage in terms of abundant natural resources. Greater degrees of autonomy with extensive powers to village “republics”, based on tradition, but with a definite change towards gender sensitivity and representation, can show the way forward.