Accuracy of Premium Calculation Models for CAT Bonds—An Empirical Analysis

CAT bonds are of significant importance in the field of alternative risk transfer. Because the market of CAT bonds is not complete, the application of an appropriate pricing model is of high relevance. We apply different premium calculation models to compare them with regard to their predictive power. Without taking the financial crisis into account, a version of the Wang transformation model and the linear model are the most accurate ones. In contrast, under consideration of the financial crisis, all analyzed models are approximately equivalent. Furthermore, we find that CAT bond specific information does not improve out‐of‐sample results.     

The gender wage gap in Austria: eppur si muove!

We examine the change of the gender wage gap in Austria between 2002 and 2007 using Juhn et al. (Workers and their wages, AEI Press, Washington DC, pp 107–143, 1991) decomposition. We analyze data from Austrian tax records which we merge with social security records and Austrian micro-censuses of the years 2002 and 2007. We find that the gender wage gap declined from 21 % in 2002 to 18 % in 2007. The main determinant of this decline is the relative improvement of women’s unobserved characteristics. The decline of the gender wage gap is also due to women having attained more formal education and to a convergence of men’s and women’s returns to education. Women’s improved educational attainments were partly offset by a shift in the demand for skilled workers that disadvantaged unskilled workers, most of whom are women, resulting in a moderate decrease of the gender pay gap over these years. Robustness checks confirm our results.     

Location,Marketing, and the Financial Flexibility of Nonprofit Performing Arts Organizations in Second Tier Cities

This article examines the effect of location relative to other marketing factors on the financial flexibility of nonprofit performing arts organizations (PAOs). While product development and promotional and pricing strategies are important marketing factors, locational advantages have become an important strategic asset for the arts industry. Yet very little research has been done on the locational dimensions of this industry. Based on a survey of PAOs in six second tier U.S. statistical metropolitan areas (SMAs), that is, Buffalo, Pittsburgh, Cleveland, Columbus, Cincinnati, and Milwaukee, this article investigates the extent to which location and other marketing mix factors influence the financial flexibility, and thereby success of PAOs. All six SMAs have a population range of 1 million to 2.5 million. The statistical analysis suggests that location and product selection are particularly significant marketing mix factors that contribute positively to financial flexibility, and therefore organizational success of the PAOs in the cities.     

Generic Skills in Audit Education

The academic literature and higher education benchmark statements identify groups of skills that are desirable both for students seeking employment and for employers seeking to recruit students. Professional accounting education pronouncements also stipulate skills that are necessary for an individual to possess in order to act as a competent accountant and auditor. Through a questionnaire survey, this research examines: (i) which of these skills audit and accounting practitioners expect UK universities to teach; (ii) which skills audit and accounting academics believe are important for students to acquire; (iii) which skills audit academics believe that employers require; and (iv) which skills audit academics teach in the UK. Institutional theory is used to develop and interpret this research.     

A comparison of adverse impact levels based on top‐down,multisource, and assessment center data: Promoting diversity and reducing legal challenges

We compared levels of adverse impact (AI) against minorities and women based on three promotional decision methods for 428 associate store managers of a Fortune 500 retailer: top‐down appraisal (TDA), multisource appraisal (MSA), and an assessment center (AC). We found significant effects for race and minority status (favoring whites) but no significant effects for gender across all three methods. Comparisons were analyzed using two definitions of AI (four‐fifths rule and the Fisher Exact Test) with a selection ratio (SR) of .25. No evidence of AI was found against blacks for any of the methods. For Hispanics, AI was found under the four‐fifths rule for the AC. For women, the four‐fifths rule was violated using TDA. Results provide some partial support for the argument that diversity goals are more likely to be met using assessment centers compared to TDA when the preponderance of raters are white men. Our data also suggest that carefully crafted, job‐related, top‐down appraisal, combined with rater training, may be effective in facilitating the promotion of more women and minorities and reducing the probability of legal problems. © 2012 Wiley Periodicals, Inc.     

Segmenting nonprofit stakeholders to enable successful relationship marketing: a review

• When establishing relationships with stakeholders, nonprofit organizations must define appropriate target groups to allocate resources purposively. This paper explicates that link by reviewing the literature on nonprofit stakeholder segmentation and by discussing whether stakeholder segmentation is perceived as a prerequisite of successful relationship marketing by nonprofit researchers.
• We develop two conceptual dimensions of nonprofit stakeholder segmentation: the stakeholders segmented and the segmentation criteria used. A systematic database and journal search yielded 53 papers, categorized according to these two dimensions. The studies are described briefly, and the relevance of the relationship marketing concept is examined and discussed. Several research gaps emerge from this review, leading to propositions for further research.

Copyright © 2014 John Wiley & Sons, Ltd.     

What does the future hold for giving? An approach using the social representations of Generation Y

• Nowadays, not‐for‐profit organizations and charities face the ageing of donors and a growing debate over monetary donation collection methods. They need to find solutions to attract younger generations of donors. Could this be done using the same methods applied to older generations? This present research investigates social representations (SRs) of giving by younger generations to understand how not‐for‐profit organizations and charities should approach them. The study focuses on SRs of a French sample of 276 individuals from Generation Y born between 1979 and 1991. It uses the free association technique. The results show paradoxical representations of giving. Institutionalization of giving is salient as representation of it as a freely consenting act. The paradox relies also in the strong presence of a relationship with others that parallels the gift as an individualistic choice.
• Generation Y individuals appear to be sociable, yet they evoke more sharing and solidarity than charity. Institutionalized forms of giving, particularly via charities and not‐for‐profit organizations, are rejected. These individuals seem to express their individuality through practices that resemble sharing rather than giving. From a managerial point of view, these results shed light on the factors liable to cause members of this generation to give, such as (i) the use of social networks, (ii) appealing to pleasure, festivities and efficiency rather than to guilt and duty, and (iii) encouragement to “work within the not‐for‐profit organization”.

Copyright © 2012 John Wiley & Sons, Ltd.     

Using laboratory experiments to study law and crime

The 19th and 20th centuries produced breakthroughs in physics, chemistry, and the biological sciences. Laboratory research played an important role in the rapid advances made in these fields. Laboratory research can also contribute progress in the social sciences and, in particular, to law and criminology. To make this argument, we begin by discussing what laboratory experiments can and cannot do. We then provide three illustrations of lab experiments that have contributed to understanding of crime and law and discuss how these laboratory data complement those gained through other methods.     

The Role of a Toolkit in Mobilising Women in Local and Regional Development

This paper introduces UK readers to the EuroFEM Toolkit which has been developed with European Union (EU) funding. The Toolkit is a collection of methods and stories taken from women's projects in European member states and is aimed at supporting, encouraging and facilitating women's involvement in every sector of local and regional development. The context for the development of the Toolkit is set within the debate about gender mainstreaming and what this means for local and regional development.     

Measuring sustainability risks: A rational myth?

The objective of this paper is to investigate the rigorousness and reliability of sustainability rating agencies' evaluation of corporate sustainability risks. Using grounded theory, this study conducts a qualitative analysis of 32 semi‐structured interviews with practitioners involved in this activity and shows the trade‐offs and rational myths underlying this evaluation process. The image of rationality and rigorousness projected by sustainability risk measurements is mostly intended to address the increasing institutional pressures for reliable and comparable information, particularly from institutional investors and socially responsible investment decision makers. Nevertheless, risk analysts face serious challenges due to the lack of reliable information, the unpredictability of sustainability risks, the methodological issues related to the measurement process, and the complexity and context‐dependency of risk assessment. These challenges call into question the official and optimistic rhetoric of rating agencies. This study contributes to the literature on sustainability risks and rational myths in organizations. Managerial implications and avenues for future research are also discussed.