Near and dear? The role of location in CSR engagement

Research summary : Building on economic geography and institutional theory, we develop and test theory relating geographic variables to the strength of corporate social responsibility (CSR) engagement and the cost of equity capital. For a large sample of U.S. firms over the period 1998–2009, we find strong and robust evidence that firms located in areas characterized by high levels of local CSR density score higher in CSR engagement. In addition, firms located close to major cities and financial centers exhibit higher CSR engagement compared to firms located in more remote areas. Moreover, the effect of CSR engagement on reducing equity financing costs is even greater for firms in high CSR density areas than for firms in low CSR density areas. Managerial summary : Does the location of CSR engagement by firms affect the strength of CSR engagement by their neighbors? Does the geography of engagement have an impact on financial performance? Our findings show that a firm's CSR engagement increases in areas where there is dense CSR engagement and when it is located near large cities. In these areas, norms, values, and knowledge related to CSR are transmitted to firms through face‐to‐face meetings and frequent social interactions with groups such as peers, labor unions, news media, universities, and community organizations, which tend to be concentrated in large cities. Our findings further highlight that CSR engagement reduces equity financing costs for firms in areas where CSR is widely practiced. Copyright © 2015 John Wiley & Sons, Ltd.     

Spatial pricing in international trade: Some limited evidence

Zusammenfassung Regionale Preisdifferenzierung im internationalen Handel. Ein empirischer Befund. — In diesem Aufsatz wird versucht, die Bedeutung regionaler Preisdifferenzierung im internationalen Handel zu ermitteln, wobei die Frachtraten in der Seeschiffahrt und die f.o.b.-Durchschnittswerte für kanadische Exporte von Zeitungspapier, Aluminium-Barren, raffiniertem Kupfer und Asbestfasern verwendet werden. Die Daten umfassen mehrere Jahre. Die Ergebnisse der Regressionen zeigen, da? die Exporteure aller vier Produkte die Frachtkosten bis zu einem gewissen Grade absorbieren, und zwar wohl besonders h?ufig bei Zeitungspapier und Kupfer.

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Résumé La détermination des prix spatiaux au commerce international: Quelques preuves limitées. — Cette étude essaie d’évaluer l’importance de la détermination des prix spatiaux au commerce international en utilisant le fret maritime et les valeurs par unité franco bord concernant les exportations canadiennes pour le papier à imprimer, les lingots d’aluminium, le cuivre, et les fibres d’amiante. La base des données comprend plusieurs années. Les résultats de la regression indiquent que les exportateurs des quatre produits analysés absorbent partiellement le fret s’ils forment les prix mais il semble que la pratique est plus prépondérante concernant les prix de papier à imprimer et de cuivre.

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Resumen Política de precios espacial en el comercio international : cierta evidencia empírica limitada. — En este trabajo se intenta evaluar la importancia de una política de precios espacial en el comercio international utilizando tarifas de carga marítima y valores unitarios fob de las exportaciones canadienses de periódicos, lingotes de aluminio, cobre (tipos refinados) y fibras de asbesto. El banco de datos abarca varios a?os. Los resultados de las regresiones indican que una parte de la absorción de la carga ocurre en la política de precios para los cuatro bienes, mas en la práctica parece no prevalecer en la politica de precios para periódicos y cobre.

     

Lifecycle‐based donor performance analysis

With charities of all sizes now having the ability to collect and store very large quantities of data about their donors on in‐house database systems, detailed donor performance analyses have an increasingly essential role to play in the effective planning and management of fundraising. If, however, such activities are to support fully the work of fundraisers then it is important that they are undertaken from the perspective of the fundraiser rather than of the specialist data analyst. This paper introduces an approach to donor performance analysis that is founded on what is termed a ‘donor lifecycle model’. The aim of this is to provide a formal analysis methodology that provides end results that can be more easily interpreted by nonspecialists and so more effectively used in support of the efficient planning of fundraising programmes. Copyright © 2000 Henry Stewart Publications     

Macroeconomics and Undergraduate Agricultural Economics

This paper focuses on macroeconomics in undergraduate agricultural economics curricula. We briefly review some of what leaders in the agricultural economics and economics professions, macroeconomics teachers, and textbook authors say about what is important, what should be taught and learned in modern undergraduate macroeconomics courses. We also report on a survey of faculty of agricultural economics departments who have responsibility for undergraduate instruction in 50 U.S. agricultural economics undergraduate programs. The surveys provide information on the current status of economics courses in their programs and the relative importance of different macroeconomic subjects to students in undergraduate agricultural economics.     

Model uncertainty and liquidity

Extreme market outcomes are often followed by a lack of liquidity and a lack of trade. This market collapse seems particularly acute for markets where traders rely heavily on a specific empirical model such as in derivative markets like the market for mortgage backed securities or credit derivatives. Moreover, the observed behavior of traders and institutions that places a large emphasis on “worst-case scenarios” through the use of “stress testing” and “Value-at-Risk” seems different than Savage expected utility would suggest. In this paper, we capture model-uncertainty using an Epstein and Wang [Epstein, L.G., Wang, T., 1994. Intertemporal asset pricing under Knightian uncertainty. Econometrica 62, 283–322] uncertainty-averse utility function with an ambiguous underlying asset-returns distribution. To explore the connection of uncertainty with liquidity, we specify a simple market where a monopolist financial intermediary makes a market for a propriety derivative security. The market-maker chooses bid and ask prices for the derivative, then, conditional on trade in this market, chooses an optimal portfolio and consumption. We explore how uncertainty can increase the bid–ask spread and, hence, reduces liquidity. Our infinite-horizon example produces short, dramatic decreases in liquidity even though the underlying environment is stationary. We show how these liquidity crises are closely linked to the uncertainty aversion effect on the optimal portfolio. Effectively, the uncertainty aversion can, at times, limit the ability of the market-maker to hedge a position and thus reduces the desirability of trade, and hence, liquidity.     

The impact of the global economic crisis on sovereign wealth funds

This paper analyses the effects of the recent global economic crisis upon sovereign wealth funds (SWFs). Since mid-2007, SWFs have experienced significant portfolio losses, a decline in fund inflows, and enhanced scrutiny from their own governments. SWFs have been utilised for sovereign stabilisation programs and have helped finance troubled Western banks. SWFs and the IMF have also created a set of best practices known as the Santiago Principles. From these developments, many SWFs have moved to relatively shorter investment time horizons and more liquid holdings, revamped their transparency and management, experienced a temporary improvement in their images, begun to hold controlling stakes in major Western corporations, and have improved their coordination with institutional investors and other SWFs. Going forward, these changes, alongside the relatively strong post-crisis asset position held by SWFs in comparison to other asset vehicles, make SWFs well-positioned to play an even more prominent role in global finance.     

Functional marketing plan development in department store retailing

Retailers are now implementing the types of formal marketing planning programs that have long characterized consumer goods firms. The functional marketing plans that are developed tend to be a year or less in duration. The primary responsibility for developing the plans resides with the general merchandise manager. The planning efforts of the retailing executive, in spite of their short term nature, do reflect an awareness of the importance of understanding the strengths and weaknesses of competitors and of the need to spell out issues involving profit planning, sales promotion planning, merchandise addition/deletion decisions, and issues involving inventory/physical distribution. A variety of marketing plans are developed. Separate plans are developed by merchandise lines in many organizations. The authors wish to express their appreciation to The Conference Board for permission to use the questionnaire, with modifications, underlying research for The Marketing Plan, Report No. 801, The Conference Board, 1981, as the basis for formulating the questionnaire used in this research     

Agenda formation and accounting standards setting: lessons from the standards setters

There are many studies on lobbying of accounting standards, but the technical agenda of regulators is taken as ‘given’ and why a particular topic was admitted to the agenda is not investigated. Agenda formation is important as control of the agenda determines which topics get regulated and the form of the regulatory response. A few studies have explored agenda formation across regulatory institutions but are largely silent on the role of individual decision makers and technical staff. However, the standards setters have sought to explain their agenda processes. This paper reviews statements by the members of accounting standards setting agencies about their experiences of agenda formation. It identifies insights gained from standard setters and makes some suggestions for future research.     

Longevity and Life‐cycle Savings*

We add health and longevity to a standard model of life‐cycle saving and show that, under plausible assumptions, increases in life expectancy lead to higher savings rates at every age, even when retirement is endogenous. In a stationary population these higher savings rates are offset by increased old age dependency, but during the disequilibrium phase, when longevity is rising, the effect on aggregate savings rates can be substantial. We find empirical support for this effect using a cross‐country panel of national savings rates.