The Differential Impact of IFRS Adoption on Aspects of Seasoned Equity Offerings in the UK and France

We examine the potential for IFRS to influence the market for SEOs in the UK and France. The divergence between the UK domestic accounting standards and IFRS is minor (low-divergence firms) whereas domestic accounting standards in France differ materially from IFRS (high-divergence firms); however, both countries have similar legal enforcement and institutional settings that might confound the effect of IFRS adoption. We argue that IFRS adoption serves to mitigate information asymmetry and improve accounting quality. Accordingly, we find that, following IFRS adoption, earnings management activities decrease among high-divergence firms prior to issuing SEOs. As a result of the lower levels of earnings management and information asymmetry, we predict and find that the market reaction to issuing SEOs improves significantly for high-divergence firms following IFRS. Given that equity financing becomes less costly, we find that the propensity to issue new SEOs increases among high-divergence firms after IFRS adoption. We find no similar changes among low-divergence firms. The results persist after running a matched-sample analysis and controlling for potential self-selection bias.     

Trade skirmishes safeguards: A theory of the WTO dispute settlement process

I propose a framework within which to interpret and evaluate the major reforms introduced to the GATT system in its transition to the WTO. In particular, I examine the WTO Agreement on Safeguards that has amended the GATT escape clause (Article XIX), and the Dispute Settlement Body (DSB) that resembles a court of law under the WTO. Using this framework, I interpret the weakening of the reciprocity principle under the Agreement on Safeguards as an attempt to reduce efficiency-reducing trade skirmishes. The DSB is interpreted as an impartial arbitrator that announces its opinion about the state of the world when a dispute arises among member countries. I demonstrate that the reforms in the GATT escape clause should be bundled with the introduction of the DSB, in order to maintain the incentive compatibility of trade agreements. The model implies that trade agreements under the WTO lead to fewer trade skirmishes but this effect does not necessarily result in higher payoffs to the governments. The model also implies that the introduction of the WTO court, which has no enforcement power, can improve the self-enforceability of trade agreements.     

Correction to: Brand credibility and customer‑based brand equity: a service recovery perspective

Journal of Financial Services Marketing -     

Can financial literacy reduce anxiety about life in old age?

This study examines the role of financial literacy in reducing anxiety about life in old age. We hypothesize that financial literacy increases preparedness for old age through better savings and investment decisions, leading to the accumulation of more assets and earning more income, which enhances financial capacity and reduces anxiety. Using data from a nationwide panel survey in Japan, we provide evidence that financial literacy can reduce anxiety about life in old age by making people capable of accumulating more assets and earning more income. Moreover, the interaction of financial literacy with age and spouse reduces anxiety, while living with children increases anxiety about life during old age. We check the robustness of our results using an alternative measure of financial literacy, changing composition of the sample, controlling for residents’ geographical dispersion, and testing for endogeneity bias. The major findings remain unchanged after considering these factors.     

Ten years after UNCOD

Ten years ago the United Nations Conference on Desertification (UNCOD) formally recognized an intricate process of land degradation that had been plaguing mankind for thousands of years. The term desertification was given to this process. In earlier times man adapted to desertification by moving to better places. This is rarely possible today and communities are more often forced to suffer the consequences — in the worst cases, starvation and uncontrolled migration into camps and urban slums. UNEP is charged with following up the implementation of UNCOD's Plan of Action to Combat Desertification. This article looks at UNCOD and gives an overview of what UNEP has been doing — and plans to do — to combat desertification.     

Does living in the vicinity of heritage tourism sites influence residents’ perceptions and attitudes?

Abstract

This study investigates whether the perceptions and attitudes of residents living within the vicinity of heritage tourism sites differ from those living further afield. It examines residents’ attitudes toward tourism development; community attachment; environment and culture attitudes; economic gain; and involvement, alongside the moderating role of distance from heritage tourism sites. In doing so, it investigates how the aforementioned factors influence residents’ perceptions of tourism development in their city. Data was collected from inhabitants of Kashan and Tabriz, two historic cities couched within Iran’s growing heritage tourism sector, and analyzed using partial least squares - structural equation modeling. The findings demonstrate significant differences between the perceptions of tourism impacts, economic gain, environmental and cultural attitudes, and involvement between residents living within the vicinity of heritage tourism sites and those living further afield. However, these findings contradicted the hypotheses; identifying higher positive perceptions, environmental and cultural attitudes, economic gain, and involvement for residents living far from heritage tourism sites. Further, the findings did not support the moderating role of distance for the effects of influencing factors on residents’ perceptions. Therefore, this study proffers significant theoretical contributions and practical implications with regards to developing sustainable tourism in Iran.     

Desertification in Africa

This article looks at desertification — both on a global scale and as it relates to Africa. Desertification is defined here as the diminution or destruction of the biological potential of the land, and is caused basically by overuse of inherently fragile productive systems. After distinguishing between desertification and drought (two closely related ecological hazards), the author goes on to outline the terrible effects of desertification and the impact it has on the world population's ability to feed itself. Finally, recommendations to halt and reverse desertification are looked at together with attempts to mobilize the resources needed to face this global problem.     

Psychographic clustering of blood donors in Egypt using Kohonen's self‐organizing maps

• Blood donation has historically been marketed as one of the purest examples of altruistic or pro‐social behavior. The recruitment of blood donors is, however, a challenge as transfusion centers worldwide strive to attract and retain blood donors. This study uses self‐organizing maps (SOM) to examine the effect of various psychographic and cognitive factors on blood donation in Egypt. SOM is a machine learning method that can be used to explore patterns in large and complex datasets for linear and nonlinear patterns. The results show that major variables affecting blood donation are related to altruistic values, perceived risks of blood donation, blood donation knowledge, attitudes toward blood donation, and intention to donate blood. The study also shows that SOM models are capable of improving clustering quality while extracting valuable information from multidimensional data.

Copyright © 2009 John Wiley & Sons, Ltd.     

A non-nested test of the new classical neutrality proposition for Canada

This paper uses a non-nested testing technique to test the neutrality proposition of the new classical economics. A new classical model and an alternative model are estimated and tested against each other. The test results indicate that the alternative model rejects the new classical model, and that the neutrality proposition cannot be supported empirically.