Materialism and Life Satisfaction: The Role of Stress and Religiosity

Materialism has been a topic of interest to consumer researchers for decades. This article explores the effect of materialism on individuals' life satisfaction using a large sample from Malaysia, a country with cultural diversity within a collectivist mainstream culture. The results suggest that the effects of materialism on life satisfaction could be indirect, mediated by stress and moderated by religiosity. The study helps to explain the mechanisms that account for the negative relationship between materialism and life satisfaction reported in previous studies conducted in many countries; it provides a blueprint and directions for further research.     

Pensions as Psychological Contracts: Implications for Work Outcomes

Drawing on psychological contract theory, we develop predictions regarding the moderating influence of the meaning employees assign to their marginal quit costs, as well as on the role of stayer perceptions and saver effects, on various work outcomes under a defined-benefit pension. Results show pension incentives can have favorable or unfavorable effects depending on whether employees perceive them as supportive relational contracts or as low-trust transactional contracts. Implications for research and policy are discussed.     

Noneconomic Engagement and International Exchange: The Case of Environmental Treaties

We examine the role of noneconomic partnerships in promoting international economic exchange. Since far-sighted countries are more willing to join costly international partnerships such as environmental treaties, environmental engagement tends to encourage international lending. Countries with such noneconomic partnerships also find it easier to engage in economic exchanges since they face the possibility that debt default might also spill over to hinder their noneconomic relationships. We present a theoretical model of these ideas and then verify their empirical importance using a bilateral cross-section of data on international cross-holdings of assets and environmental treaties. Our results support the notion that international environmental cooperation facilitates economic exchange.     

Corporate Fraud and Business Conditions: Evidence from IPOs

We examine how a firm's incentive to commit fraud when going public varies with investor beliefs about industry business conditions. Fraud propensity increases with the level of investor beliefs about industry prospects but decreases when beliefs are extremely high. We find that two mechanisms are at work: monitoring by investors and short‐term executive compensation, both of which vary with investor beliefs about industry prospects. We also find that monitoring incentives of investors and underwriters differ. Our results are consistent with models of investor beliefs and corporate fraud, and suggest that regulators and auditors should be vigilant for fraud during booms.     

Stronger Risk Controls,Lower Risk: Evidence from U.S. Bank Holding Companies

We construct a risk management index (RMI) to measure the strength and independence of the risk management function at bank holding companies (BHCs). The U.S. BHCs with higher RMI before the onset of the financial crisis have lower tail risk, lower nonperforming loans, and better operating and stock return performance during the financial crisis years. Over the period 1995 to 2010, BHCs with a higher lagged RMI have lower tail risk and higher return on assets, all else equal. Overall, these results suggest that a strong and independent risk management function can curtail tail risk exposures at banks.     

On the High‐Frequency Dynamics of Hedge Fund Risk Exposures

We propose a new method to model hedge fund risk exposures using relatively high‐frequency conditioning variables. In a large sample of funds, we find substantial evidence that hedge fund risk exposures vary across and within months, and that capturing within‐month variation is more important for hedge funds than for mutual funds. We consider different within‐month functional forms, and uncover patterns such as day‐of‐the‐month variation in risk exposures. We also find that changes in portfolio allocations, rather than in the risk exposures of the underlying assets, are the main drivers of hedge funds' risk exposure variation.     

The Relationship Between Sociodemographics and Concern About Food Safety Issues

This study reviews the relationship between sociodemographic variables and food safety, and assesses how sociodemographic variables relate to three different food hazards in the food chain—pesticides, Salmonella, and fat. Our results revealed that women and blacks were more likely to have high levels of concern about food safety than were men and whites. Also, the level of concern increased with age. A respondent's percived vulnerability to that risk may explain differences across risks.