Credit ratings quality: The perceptions of market participants and other interested parties

The global credit crunch of 2008 and related sub-prime mortgage crisis of 2007 have made credit ratings agencies (CRAs) the focus of international attention. In particular, the quality of ratings information and the responsibilities CRAs owe to financial markets have come under intense scrutiny. Specifically, commentators, politicians, and regulators have expressed concern at the involvement CRAs might have had in creating global financial instability. However, the term ratings quality remains largely absent from the academic literature.This paper constructs a measurement instrument to capture ratings quality provided by CRAs, and assesses differences in perceptions of ratings quality amongst four stakeholder groups in public debt markets. Two macro-constructs of ratings quality are identified, labelled Technical Qualities and Relationship Qualities. The two macro-constructs are measured by ten micro-attributes, labelled: Cooperation; Independence; Internal Processes; Issuer Orientation; Methodology; Reputation; Service Quality; Shared Values and Norms; Transparency; and Trust. Each micro-attribute is operationalised into individual items, and then empirically tested using data obtained in the UK from 121 issuers, 75 non-debt issuing financial managers, 90 investors, and 120 other interested parties.The data suggest that ratings quality involves, in order of importance: the CRA's reputation; those values and norms of the CRA shared by users; the methodologies employed by the CRA; the independence of the CRA; and internal processes within the CRA. Multivariate analysis of variance finds no statistically significant variation between the groups for Technical Qualities factors. However, issuers rate Relationship Qualities and its micro-attributes of Trust, Issuer Orientation, and Service Quality higher than other market participants; a finding that reflects the dyadic relationship between the issuer's treasurer and lead analyst of the CRA. The paper concludes with a number of policy-relevant issues.     

The Role of Website Quality on PAD,Attitude and Intentions to Visit and Recommend Island Destination

This study investigates the effect of website stimuli on positive attitude and intentions to visit and recommend, through three emotional responses (pleasure, arousal and dominance). The model was tested regarding three island‐related websites. Findings show the role of emotions as mediators between website quality attitude and intentions. Arousal and dominance are revealed to be more important in the formation of a positive attitude than pleasure. Visual appeal and ease of use, followed by information, seem to be the most important components in forming a perception of the islands' website quality. Copyright © 2014 John Wiley & Sons, Ltd.     

Customer Preferences for Frontline Employee Traits: Homophily and Heterophily Effects

Although previous research has underscored the significance of the personality traits of frontline employees (FLEs) in employee service behaviors, knowledge about customer preferences for FLE personality traits is lacking. This study responds to this gap in the literature, empirically assessing customers’ preferences for FLE personality traits. The main research objective is to investigate whether and how these preferences vary with the customer's own personality. The study proposes and tests a conceptual framework that reconciles two opposing theoretical perspectives—homophily and heterophily. The existing research in interpersonal psychology has only given limited support to the heterophily effect, whereas it has consistently evidenced the homophily effect. Moderator analyses indicate these effects are largely invariant across customer and service characteristics. Notwithstanding this, post hoc tests show that the level of preferred FLE traits is positively related to the level of customer traits. Equity theory helps explain these seemingly conflicting results.     

Covered interest arbitrage profits: The role of liquidity and credit risk

We study the profitability of Covered Interest Parity (CIP) arbitrage violations and their relationship with market liquidity and credit risk using a novel and unique dataset of tick-by-tick firm quotes for all financial instruments involved in the arbitrage strategy. The empirical analysis shows that positive CIP arbitrage deviations include a compensation for liquidity and credit risk. Once these risk premia are taken into account, small arbitrage profits only accrue to traders who are able to negotiate low trading costs. The results are robust to stale pricing and the nonsynchronous trading occurring in the markets involved in the arbitrage strategy.     

Knowledge,beliefs and attitudes of squash venue operators relating to use of protective eyewear

Sports venues are in a position to potentially influence the safety practices of their patrons. This study examined the knowledge, beliefs and attitudes of venue operators that could influence the use of protective eyewear by squash players. A 50% random sample of all private and public squash venues affiliated with the Victorian Squash Federation in metropolitan Melbourne was selected. Face-to-face interviews were conducted with 15 squash venue operators during August 2001. Interviews were transcribed and content and thematic analyses were performed. The content of the interviews covered five topics: (1) overall injury risk perception, (2) eye injury occurrence, (3) knowledge, behaviors, attitudes and beliefs associated with protective eyewear, (4) compulsory protective eyewear and (5) availability of protective eyewear at venues. Venue operators were mainly concerned with the severe nature of eye injuries, rather than the relatively low incidence of these injuries. Some venue operators believed that players should wear any eyewear, rather than none at all, and believed that more players should use protective eyewear. Generally, they did not believe that players with higher levels of experience and expertise needed to wear protective eyewear when playing. Only six venues had at least one type of eyewear available for players to hire or borrow or to purchase. Operators expressed a desire to be informed about correct protective eyewear. Appropriate protective eyewear is not readily available at squash venues. Better-informed venue operators may be more likely to provide suitable protective eyewear.     

Larry Moss and the Struggle Against Racism by the Whately Professors of Political Economy

In this note, we highlight an important consideration of Larry Moss's life's work, the continual struggle within economics against racism. Larry initiated and supported the symposium on eugenics published by the American Journal of Economics and Sociology in July 2005. He edited the volume Social Inequality, Analytical Egalitarianism and the March Toward Eugenic Explanations in the Social Sciences in August 2008. These constitute obvious signs of Larry's concern.
He conjectured that the Trinity College Dublin political economists who held the Whately professorship should be thought of as a school. Such a school was in fact identified in 1850 by an outsider who pointed to their shared opposition to racial explanations within an institutional setting. That shared opposition allowed them to speak against the narrow interests of the rulers of the country. Of course, other political economists of the time, Mill in particular, were also emphatic in their anti-racism. Thus, not only do we need to take up Larry's challenge to describe the Trinity College school but we must also seek its connections with the Scottish-English group of anti-racists.     

卫生技术评估：澳大利亚的反映

本文分为三部分。第一部分主要是描述性的,列出了在澳大利亚应用卫生技术评估（HTA）的主要机构。首先,讨论了医疗用品管理局（Therapeutic Goods Administration,TGA）对HTA的应用。     

Developing pandemic communication strategies: Preparation without panic

Communication in the media regarding a potential avian influenza epidemic can serve to accurately and effectively inform the public OR misinform and contribute to unnecessary public panic and subsequent undesirable responses. Governments have time to develop communication strategies and specific messages that can effectively convey desired information at different stages of the anticipated pandemic. Effective social marketing incorporates the concepts of formative research, audience segmentation, and consumer focus. Based on the findings from earlier research on public awareness and understanding of bird flu, the collaborators of the project developed evidence-based advertising messages for two primary time-points in pandemic preparation and tested in a series of focus groups; modified them based on the findings; and then re-tested the final campaign. These findings provide important recommendations for the development of future social marketing campaigns in the event of pandemics or other public health crises.