How the Perceptions of Five Dimensions of Corporate Citizenship and Their Inter-Inconsistencies Predict Affective Commitment

Through a convenience sample of 260 employees, the study shows how employees’ perceptions about corporate citizenship (CC) predict their affective commitment. The study was carried out in Portugal, a high in-group and low societal collectivistic culture. Maignan et al.’s (1999, Journal of the Academy of Marketing Science 27(4), 455–469) construct, including economic, legal, ethical, and discretionary responsibilities was used. The main findings are: (a) contrary to what has been presumed in the literature, the discretionary dimension includes two factors: CC toward employees and toward community; (b) perceptions of CC explain 35% of unique variance of affective commitment; (c) the best predictors are perceptions of economic and legal CC and, mainly, perceptions of discretionary CC toward employees; (d) the perceptions of discretionary CC toward employees are significantly better predictors of affective commitment than are perceptions of economic, ethical, and discretionary CC toward the community; (e) perceived inconsistency of the several CC dimensions is detrimental to employees’ affective commitment. The study questions the four-dimensional model of the CC construct as operationalized by Maignan et al., suggests that culture should be included as a moderating variable in future research, and stresses that affective commitment may decrease when employees perceive that their organizations act upon the several areas of CC inconsistently.     

Why some firms adopt telecommuting while others do not: A contingency perspective

Using a contingency perspective and data from 122 CEOs of Spanish firms, this paper examines what makes a firm likely to adopt telecommuting. We hypothesized that employer adoption of telecommuting would depend on organizational constraints (age and size of the firm), the international composition of the workforce, and the top executives' leadership style. In turn, we argue that firms adopting telecommuting would emphasize outcome‐based control systems. Our empirical evidence showed that telecommuting correlated with small organizational size, a high proportion of international employees, and variable compensation. A contingent reward leadership style at the top moderated the effects of firm age and internationalization on the adoption of telecommuting. © 2009 Wiley Periodicals, Inc.     

Gangs of Chicago: Perceptions of Crime and its Effect on the Recreation Behavior of Latino Residents in Urban Communities

Perception of safety is an important factor affecting the leisure behavior of Latinos residing in urban neighborhoods. Yet research on how fear of crime and fear of gangs in particular affect leisure of ethnic and racial minorities is underdeveloped. The objectives of this study are to examine how gangs operate in recreation spaces in Latino neighborhoods, how gangs affect the use of outdoor recreation environments and how Latinos respond to these issues. The study is based on focus groups conducted with Latino residents in Chicago. Findings indicate gang members are almost constantly present in parks, which serve as spaces for drug use and distribution. Moreover, gangs operate in other areas of the neighborhood making it unsafe to access parks. Participants employ strategies to address the gang problem including avoidance, protective and collective behaviors.     

Estimating liquidity premia in the Spanish government securities market

This paper investigates the presence of liquidity premia in the relative pricing of assets traded on the Spanish government securities market. First, a classification of bonds into four different categories based on their degree of liquidity is proposed. Second, liquidity premia are estimated introducing liquidity parameters in the estimation of the zero-coupon yield curve. Results suggest the existence of a liquidity premium for post-benchmark bonds (both strippable and non-strippable). The size of this premium is relatively small. In the case of pre-benchmark bonds, the lack of liquidity does not seem to be priced. It is also shown that these pricing discrepancies are robust to the impact of taxes on bonds.     

Pricing and static hedging of European-style double barrier options under the jump to default extended CEV model

This paper develops two novel methodologies for pricing and hedging European-style barrier option contracts under the jump to default extended constant elasticity of variance (JDCEV) model, namely: a stopping time approach based on the first passage time densities of the underlying asset price process through the barrier levels; and a static hedging portfolio approach in which the barrier option is replicated by a portfolio of plain-vanilla and binary options. In doing so, both valuation methodologies are extended to a more general set-up accommodating endogenous bankruptcy, time-dependent barriers and the commonly observed stylized facts of a positive link between default and equity volatility and of a negative link between volatility and stock price. The two proposed numerical methods are shown to be accurate, easy to implement and efficient under both the JDCEV model and the nested constant elasticity of variance model.     

On causality in the size-efficiency relationship: the effect of investor cash flows on the mutual fund industry

One of the perceived advantages in mutual fund management is the presence of economies of scale resulting from fund size. This article analyses the impact of mutual fund cash flows on the relation between size and performance, demonstrating that performance determines asymmetric variations in fund assets, particularly in mutual equity funds. Therefore, the more efficient funds generate broad enough cash flow entry that increases the relative size of the fund, leading to an implicit and positive relation between size and performance. So, if the average size over the period sample is used as a measure of size, such a relation would be biased. When the initial size is used, this bias is avoided and, in general, an insignificant relation is found between size and performance. These results are controlled by mutual fund costs using gross returns to estimate performance. The evidence is robust, and shows only weak evidence of a negative relation between size and performance for the balanced funds that is driven by a low positive relation between costs and size; precisely, the contrary that is expected from the hypothesis of the presence of economies of scale.     

Quantifying the impact of economic crises on infant mortality in advanced economies

Policy makers rely on a mix of government spending and tax cuts to address the imbalances in the economy during an economic crisis, by promoting price stability and renewed economic growth. However, little discussion appears to focus explicitly on quantifying the cost of economic crises in terms of human lives, especially the lives of the most vulnerable members of society, infants. Using a statistical approach that is robust to the increases of mortality in outlying years, we quantify the effect that economic crises, periods of prolonged economic recession, have on infant mortality. Moreover, we investigate whether different levels of public spending on health across advanced industrialized democracies can mitigate the impact of crises on infant mortality. We find that economic crises are extremely costly and lead to a more than proportional increase in infant mortality in the short-run. Substantial public spending on health is required in order to limit their impact.     

Fiscal shocks and budget balance persistence in the EU countries from Central and Eastern Europe

This article analyses the time series properties of the fiscal balance in the 10 EU countries from Central and Eastern Europe. The persistence of the fiscal balance is analysed by means of unit root tests that account for possible nonlinearities and structural changes. The linear and nonlinear unit root tests find only mild evidence in favour of the stationarity hypothesis, with asymmetric effects present in a few cases. After controlling for structural changes in the Data Generation Processes (DGPs), the results point to stationarity of the series. Thus, in spite of relatively steady headline figures, the budget balance processes in the EU countries from Central and Eastern Europe exhibit substantial instability.     

Evaluating the economy embedded in the Brazilian ethanol–gasoline flex-fuel car: a Real Options approach

The introduction of the flex-fuel cars in the Brazilian market in 2003 changed considerably the consumer decision-making process. Prior to this date, it was necessary to choose the automobile type only by gasoline or by ethanol fuel; today it is possible to choose a car type with both fuel options. This flexibility generates economic advantages for his owner, but what are the financial benefits of a flex-fuel car in comparison with a car using only gasoline? Geographically, where is the owner of the benefits from this flexibility located? This article presents an empirical application of the Real Options Theory in the analysis of the flex-fuel car option for five geographic Brazilian regions: Northern, Northeastern, Central-Western, Southeastern and Southern. The regional price differences as well as the consumer preferences of these regions were met. For this purpose, historical fuel prices were considered stochastic and following a Mean Reverting Stochastic process. The prediction and option values were generated by a Monte Carlo simulation. The results indicated that the option embedded on the Brazilian flex-fuel car adds considerable value to the owner in all regions and car models considered, with the Southeastern Region receiving most benefits by the flex option.