Risk aversion and skewness preference

Empirically, co-skewness of asset returns seems to explain a substantial part of the cross-sectional variation of mean return not explained by beta. This finding is typically interpreted in terms of a risk averse representative investor with a cubic utility function. This paper questions this interpretation. We show that the empirical tests fail to impose risk aversion and the implied utility function takes an inverse S-shape. Unfortunately, the first-order conditions are not sufficient to guarantee that the market portfolio is the global maximum for this utility function, and our results suggest that the market portfolio is more likely to represent the global minimum. In addition, if we do impose risk aversion, then co-skewness has minimal explanatory power.     

The Diffusion of Local Differentiated Waste Disposal Taxes in the Netherlands

The diffusion of a novel taxing scheme (among Dutch municipalities over the period 1998–2005) is studied in which the waste disposal tax is increasing in the amount of waste a household produces. Inspection of the rise and spread of this tax shows that it is contagious: the probability of introduction is increasing in the number of neighboring municipalities that have already introduced this taxing scheme. A possible rationale is that the tax encourages the dumping of waste in neighboring municipalities. These municipalities may then introduce a similar tax to prevent dumping (spillover effect). Using panel data and a recently developed spatial probit approach (Elhorst et al. in J Appl Econom 32:422–439, 2017), it is possible to distinguish this spillover effect from time-specific effects. The results indicate the presence of strong spillovers.     

Interprofessional conflict, accommodation, and the flow of capital: The ASB vs The securities industry and its lawyerS

In an earlier paper, Martens and McEnroe (1991) found that the Auditing Standards Board (ASB) substantially rewrote major sections of the exposure draft (ED) of Statement on Auditing Standards (SAS) No. 54 to accommodate the wishes of a special interest group, the legal profession. This study involves a similar examination of the development of SAS 72, from its status as an ED to its release as an official auditing promulgation. Specifically, an analysis is made of the positions existing in the ED for SAS 72, the comments submitted to the ASB, and the changes made to the final SAS in light of those comments. The results indicate that the ASB once again accommodated the desires of a special interest group; in this case, the securities industry and its lawyers. A reason for the accommodation is proposed in the context of certain sociological theories of the professions. It is suggested that the ASB, acting as an agent of capital, was convinced that a less restrictive standard was necessary in order to facilitate the role that underwriters play in the flow of investment capital.     

Branding HIV/AIDS communication: the social marketing campaigns of MTV and Viacom

• Based on an ethnographic study of the production and reception of HIV/AIDS public service campaigns by MTV and Viacom, this paper examines the role of branding in HIV/AIDS education promotion. A main premise of the paper is that audiences for HIV/AIDS social marketing campaigns are now less addressed in terms of the classic HIV/AIDS prevention categories of ‘general public’ and ‘risk groups’ and are increasingly viewed as ‘market segments’ implicated in the campaigns in relation to the techniques of branding. Drawing on examples from research conducted amongst audiences in the North of England, the findings highlight the differing audience understandings of the branded consumer objects and icons of HIV awareness. Using a cultural materialist perspective, concerned with the relationship between the campaigns and social relations, this paper examines the process of corporate-sponsored HIV/AIDS campaigns. The findings underscore how social marketing campaigns are increasingly being related to as branded media objects and icons, closely tied to people's material experience and understandings of the aesthetics framing these branded objects and icons. The paper argues that identification and engagement with the campaigns is most evident amongst participants who shared the consumer values and the marketing discourses used by marketing managers and producers of the public service announcements.

Copyright © 2009 John Wiley & Sons, Ltd.     

“The Unbearable Lightness of Cleaning”: Representations of Domestic Practice and Products in Good Housekeeping Magazine (UK): 1951–2001

In this paper we begin to open the black box that constitutes the organisation of domestic cleaning and consumption in the latter half of the twentieth century. We focus specifically on change and continuity in the manner in which cleaning practices and cleaning products are represented in the UK woman's magazine Good Housekeeping, in the late modern period. After a discussion of the modern history of cleanliness, we proceed with a rationale for why this magazine was chosen for our analysis, followed by a summary of our methodology. We then argue that three phases of representation may be delineated in the time period we investigated. The first phase, which is apparent in the 1951 and 1961 issues, we have named “pride in domestic practice” and it covers a period when, what we call “the women's lobby”, speaks in a uniform voice about the tasks of the housewife and the purpose of domestic cleaning. The second phase, manifest in the 1971 and 1981 issues, is termed “domestic dreaming”, and it heralds a period when Good Housekeeping calls its readership to dream about the potentials of a transformed consumer culture. The third phase, which is evident in some respects in 1981, but which is more clearly present in 1991 and 2001, we have called “modern advising in a late modern world”. During this period, Good Housekeeping settles into a new role as a modern advisor of cleaning products and practices within the context of a world that poses significant complexities. Our discussion also focuses on how three values of cleanliness; that associated with germs, aesthetics and efficiency/ease are present in the magazine. Our analysis is contextualised in relation to the cultural silencing of cleanliness in this period and related to social and cultural changes associated with feminism and consumer culture.     

The case of market and system failures in services innovation

This paper reviews and analyses the rationale for an innovation policy in services. It focuses on the relevance of the various categories of market and system failures, on the basis of economic arguments and some empirical evidence at EU level. Results show that market and system failures affect service innovation, so that there are no economic reasons supporting any discrimination of policy actions against service activities. Moreover, some of the market and system failures may be even more relevant in the field of services than of goods, although differences between categories of services should be also taken into consideration.     

Globalisation, the global village and the civil society

Human dynamics, institutional change, political relations and the global environment have become increasingly intertwined. The development of multicultural societies has certainly not been without its problems. The re-emergence of extremist political parties, the segregation of cultures and ethnic conflict, illustrate the problematic side of socio-cultural integration at the local level. We argue that socio-cultural factors not only change as a result of globalisation, but also can be causes, as well as challenges to the process of globalisation itself. We describe how the recent introduction of the MGI and KOF globalisation indices can be used to empirically address to what extent globalisation affects social phenomena. Overall, while the rigidity of national boarders slackens, to speak about a global community is misleading. National borders still exist and the nation-state still matters. The fact is that they have to co-exist with civil society. The institutions of global civil society place limits upon the government and function as a sort of check on various forms of government, especially the authoritarian and absolutist varieties.     

It’s time for a true and fair view

The standard unqualified United States audit report states that the firm’s financial statements present fairly, in all material respects, the financial position of the company at year end, the results of operations, and its cash flows, in conformity with generally accepted accounting principles (GAAP). The United Kingdom counterpart states that the company accounts give a true and fair view (TFV). The focus on conformity with GAAP in the US has created a rule-dominated audit arena which, in effect, means that if the audited financial statements are in accordance with GAAP, the auditor will find them acceptable. We offer modified audit report terminology that substitutes “true and fair view” for “present fairly”. Although Rutherford [J. Business Financial Accounting 12 (1985) 483], Houghton [Accounting Organizations Soc. 12 (1987) 143], and Karan (2002) have cited problems with the TFV language, especially in its interpretation, we find the phrase superior to “present fairly” and propose an operational definition for its application.