FINANCIAL FRAGILITY AND FINANCIAL CRISIS IN MEXICO

The objective of this paper is to show how Mexico’s strategy of financial deregulation and liberalization set the stage for the crisis that the country suffered in December 1994. The theoretical underpinning is Post‐Keynesian, and more precisely, a Minsky‐inspired analytical perspective extended to the open economy. In the first section the authors carry out a theoretical discussion dealing with some Post‐Keynesian theories of the business cycle. A second section is devoted to examining and identifying the stylized facts in the evolution of the Mexican economy, with special emphasis on the interaction between the financial and real variables. In the last section the authors propose a simplified model which shows how and why a strategy of financial deregulation and liberalization may lead to financial fragility and to a crisis.     

Compliance with Mandatory Environmental Reporting in Financial Statements: The Case of Spain (2001–2003)

Corporate, Social, Ethical and Environmental Reporting (SEER) should ideally discharge the accountability of an organisation to its stakeholders. Voluntary reporting has been characterised by a dearth of neutral and objective information such that the advocates of SEER recommend that it be made compulsory. Their underlying rationale is that legally specified disclosure requirements and enforcement mechanisms will enhance the quality of such reporting. This paper sets out to explore how realistic this scenario actually is, in view of the conflicting interpretations in the literature on this subject. To that end, a survey of the reporting patterns of 78 of the largest Spanish companies between 2001 and 2003 examines the extent of their compliance with the ICAC-2002 standard, which obliged them to make environmental disclosures in their financial statements. The results suggest that progressive and improved regulation could increase the volume and quality of SEER disclosures. They also suggest, however, that persistent non-compliance means that the problems associated with voluntary disclosure still exist. Finally, through an impression management perspective, the study reveals, the diverse strategies, ranging from dismissal to concealment, that are employed by companies to avoid transparency. As regulation improves and enforcement expectations rise, it becomes more difficult to dismiss compulsory reporting norms. As a result, some firms engage in more complex concealment strategies to attain corporate legitimacy, depriving stakeholders of regulatory information. The latter point serves to reconcile apparently contradictory explanations in the literature as to whether legitimacy theory might explain partial compliance with SEER regulation. Irene Criado-Jiménez is a Doctoral Candidate at the Departamento de Economía y Administración de Empresas, Universidad de Burgos. Her research interests include accounting for sustainable development and corporate accountability. Manuel Fernández-Chulián is a Doctoral Candidate at the Departamento de Economía y Administración de Empresas, Universidad de Burgos. His research interests include sustainability reporting and full cost accounting. Francisco Javier Husillos-Carqués is Assistant at the Departamento de Gestión de Empresas, Universidad Pública de Navarra and a Doctoral Candidate at the Universidad de Burgos. His research interests include social and environmental reporting and environmental management. Carlos Larrinage-González is Associate Professor at the Departamento de Economía y Administración de Empresas, Universidad de Burgos. His research interests include social and environmental accounting. He writes for interdisciplinary journals in accounting. He has co-edited special issues in European Accounting Review and Accounting, Auditing and Accountability Journal and currently is an Associate Editor of the Revista de Contabilidad-Spanish Accounting Review.     

Efficiency of football teams from an organisation management perspective

The aim of this paper is to assess the efficiency of football. Our contributions to the literature are the use of the resource-based theory and the strategy-structure-performance perspective as the study's framework, efficiency has been considered as the result of the qualities of the productive resources in football teams and efficiency is calculated in every area in the field of play. The results show that the entire team's efficiency is positively related to sporting success and the efficiency of attacking and ball recovery areas is directly related to the sport result and the efficiency of the team as a whole.     

Globalization drives strategic product switching

Using firm-level panel data for Estonia, we analyse the impact of international competition on firm dynamics, considering both firm closedown and product switches. We contribute to the literature in two important ways: first, this is the first paper to study the determinants of exit and product switching in an emerging market; and second, we consider explicitly the role of export opportunities. Our results indicate that globalization does not affect firm exit significantly but it is an important factor explaining why firms choose a different core product. Previous studies on industrial countries have shown that product switching has been a defensive strategy against low-cost imports. In contrast, our results suggest that Estonian firms change their core products as an offensive strategy to take advantage of the export opportunities created by a globalized economy.     

Cost-effectiveness analysis in the Spanish setting of the PEAK trial of panitumumab plus mFOLFOX6 compared with bevacizumab plus mFOLFOX6 for first-line treatment of patients with wild-type RAS metastatic colorectal cancer

Objective: To assess the cost-effectiveness of panitumumab in combination with mFOLFOX6 (oxaliplatin, 5-fluorouracil, and leucovorin) vs bevacizumab in combination with mFOLFOX6 as first-line treatment of patients with wild-type RAS metastatic colorectal cancer (mCRC) in Spain.

Methods: A semi-Markov model was developed including the following health states: Progression free; Progressive disease: Treat with best supportive care; Progressive disease: Treat with subsequent active therapy; Attempted resection of metastases; Disease free after metastases resection; Progressive disease: after resection and relapse; and Death. Parametric survival analyses of patient-level progression free survival and overall survival data from the PEAK Phase II clinical trial were used to estimate health state transitions. Additional data from the PEAK trial were considered for the dose and duration of therapy, the use of subsequent therapy, the occurrence of adverse events, and the incidence and probability of time to metastasis resection. Utility weightings were calculated from patient-level data from panitumumab trials evaluating first-, second-, and third-line treatments. The study was performed from the Spanish National Health System (NHS) perspective including only direct costs. A life-time horizon was applied. Probabilistic sensitivity analyses and scenario sensitivity analyses were performed to assess the robustness of the model.

Results: Based on the PEAK trial, which demonstrated greater efficacy of panitumumab vs bevacizumab, both in combination with mFOLFOX6 first-line in wild-type RAS mCRC patients, the estimated incremental cost per life-year gained was €16,567 and the estimated incremental cost per quality-adjusted life year gained was €22,794. The sensitivity analyses showed the model was robust to alternative parameters and assumptions.

Limitations: The analysis was based on a simulation model and, therefore, the results should be interpreted cautiously.

Conclusions: Based on the PEAK Phase II clinical trial and taking into account Spanish costs, the results of the analysis showed that first-line treatment of mCRC with panitumumab?+?mFOLFOX6 could be considered a cost-effective option compared with bevacizumab?+?mFOLFOX6 for the Spanish NHS.     

Technical efficiency with state-contingent production frontiers using maximum entropy estimators

Although the theory of state-contingent production is well-established, the empirical implementation of this approach is still in an infancy stage. The possibility of finding a large number of states of nature, few observations per state and models affected by collinearity have led some researchers to claim the urgent need to develop robust estimation techniques. In this paper, we investigate the performance of some maximum entropy estimators to assess technical efficiency with state-contingent production frontiers. The methodological discussion and the simulation study provided in the paper reveal some of the potential of these estimators. Small mean squared error loss and small differences between the true and the estimated mean of technical efficiency show that the maximum entropy can be a powerful tool in the estimation of state-contingent production frontiers.