The Role of Financial,Macroeconomic, and Non-financial Information in Bank Loan Default Timing Prediction

We assess the use of bank loan information in predicting the timing to default. We use unique data on defaults in small and medium enterprises maintained by the Central Bank of Portugal which includes financial accounting and macroeconomic indicators, as well as non-financial information. The findings are indicative of the incremental predictive ability of non-financial information over and above macroeconomic and financial accounting information in the baseline, industry, and in- and out-of-sample models. Specifically, total credit secured by firms is, as expected, negatively and significantly related to default. Gross domestic product is negatively and significantly related to default, and benchmark market rate is positively and significantly associated with default. The findings also reveal that firms which are operated by partners, which have stronger financial support from partners, and which possess operational assets exhibit lower hazards of default. The study indicates that non-financial information and macroeconomic indicators assessed alongside financial accounting data can significantly improve the forecasting performance of default models.     

Killing for Money and the Economic Theory of Crime

There is a large literature on the economics of crime and punishment, yet surprisingly little attention is paid to the receipt of money for crime. “Contract killing” is surprisingly neglected not only by economists but also by social scientists in general. In this paper, I look at the case not of professional gangster “hitmen” but of individuals who have found themselves in a position where they wish to have a killing carried out. This discussion does not condone the practice any more than an economic analysis of suicide is an inducement to individuals to kill themselves. To the lay reader, the cases where an individual feels the need to pay for killing may seem to be such that rationality is not a likely form of behaviour. However, the economics of crime has adopted the use of the rationality postulate as a heuristic for all types of crime.     

POVERTY AND INCOME INEQUALITY IN LATIN AMERICA DURING THE 1980s

On average, poverty and income inequality increased in Latin America during the 1980s. Forty-six percent of the increase in poverty took place in the cities of Brazil alone, though part of this reflects the migration of poor rural inhabitants to urban areas. There is strong evidence that both income inequality and poverty mirrored the economic cycle, rising during recession and falling during recovery. Economies that grew (e.g. Colombia, Costa Rica) performed better with respect to poverty and income inequality than those that stagnated. In particular, countries that failed to stabilize effectively (e.g. Brazil, Peru) experienced substantial increases in poverty. Educational attainment has the greatest correlation with both income inequality and the probability of being poor. From a policy standpoint, there is a clear association between the provision of education, lessening of income inequality, and poverty reduction.     

Predictors of Templestay Satisfaction: A Comparison Between Korean and International Participants

The present study aims to determine the underlying factors critical to the overall satisfaction (Templestay satisfaction) of local and foreign participants in South Korean Buddhist temple stay programs (hereafter, Templestay). A two-step multivariate procedure was performed where the data were first subjected to a factor analysis followed by structural equation model. The findings are congruent with three out of five research hypotheses. Moreover, the empirical evidence showed that there are no differences in reporting of Templestay satisfaction between Korean and international participants. Nevertheless, being with nature, self-growth, and relaxation are underlying factors that define satisfaction for Koreans. For international participants, being with nature and relaxation are significant. The study reveals that learning experience is a poor predictor of Templestay satisfaction. The practical implication of this research is that Templestay managers should focus on the factors that have the highest importance for obtaining Templestay satisfaction for both Korean and international visitors.     

虚拟会议一定是明确的——如何定义新型会议活动的战略价值

过去会议人士使用虚拟会议只是一次性的,今天,他们要把虚拟会议技术融入策略性管理中,成为其中的一部分。根据MPI基金会和全球战略会议管理公司Maxvantage最近进行的调查结果显示,部分公司每年安排了上百场的虚拟会议。这份研究结果通过网上问卷调查和定性访谈的方式得出,展示出业内专家对于虚拟会议定义的一致性,但是其在各...     

Shareholder Theory and Kant’s ‘Duty of Beneficence’

This article draws on the moral philosophy of Immanuel Kant to explore whether a corporate ‘duty of beneficence’ to non-shareholders is consistent with the orthodox ‘shareholder theory’ of the firm. It examines the ethical framework of Milton Friedman’s argument and asks whether it necessarily rules out the well-being of non-shareholders as a corporate objective. The article examines Kant’s distinction between ‘duties of right’ and ‘duties of virtue’ (the latter including the duty of beneficence) and investigates their consistency with the shareholder theory. The article concludes that it is possible within the ethical framework of shareholder theory for managers to pursue directly the happiness of non-shareholders. Furthermore, shareholders have a duty to hold management to account for the moral consequences of the firm’s activities on non-shareholding stakeholders.     

From filthy to healthy and beyond: finding the boundaries of taboo destruction in sex toy buying

ABSTRACT

The liberalisation of Western society has led to the destruction of certain taboos, but on the individual level, taboo destruction may be curtailed by opposing conventions. This study investigates the boundaries of taboo destruction in relation to buying products that were once considered as taboo but are increasingly subject to liberalisation, namely, sex toys. Adopting an exploratory mixed-method approach, which combines a consumer survey with expert interviews, this study establishes a framework suggesting that self-protection and status maintenance are the core forces behind individual-level taboo construction. Additionally, consumers may voluntarily construct taboos regarding sex toys as the controlled violation of a taboo is associated with sexual excitement. Implications about how the results diverge from societal taboo destruction, on which sex toy retailing is currently built, are discussed.     

Small & Medium Gold & Fashion Enterprises (SMEs) in Arezzo,Italy: Competitive Challenges and Strategic Implications

ABSTRACT

This paper provides some empirical evidence on organizational characteristics and strategies of firms in the Italian gold and fashion industries. The analysis is based on a data set of three SME clusters in Arezzo (a city and province in Tuscany, Italy, southeast of Florence) which led us to the identification of two main alternative strategies which can be implemented when facing the new global competition: a firm-centered brand strategy and an outsourcing strategy (a supply alliance with co-branding possibilities with one or more large Italian firms). We analyzed the resources and competencies of firms that adopted different export marketing strategies and further explored the relationship between strategic choices and performance of participating firms (measured in terms of growth, innovation, and export capabilities). The results show that the choice of a strategy is strongly influenced by the ability of SMEs to respond to changes in consumer behavior and competition, and that some variables significantly affect performance. Both strategies can be effective, and in some cases it is suggested to follow the middle of the road competitive approach: combining the two strategies, exporting own brand directly to the end markets and collaborating with a large firm in order to achieve a sustainable and significant competitive advantage.     

Psychophysiological Responses to Background Brand Placements in Video Games

Researchers have typically employed cognitive and affective measures to study the effectiveness of brand placements in video games. A psychophysiological approach to measuring effectiveness has been sorely lacking and is necessary to help both academics and practitioners further their understanding of how brand placements work. The current study measures individuals’ orienting responses in terms of increased skin conductance and decreased heart rate upon exposure to brands in video games. Results indicate that game players register background advertisements subconsciously even though they may not be able to explicitly recall them later. There were no differences between gamers and nongamers in the recall and recognition of brands from the video game. Furthermore, brands with preexisting favorable attitudes automatically received further processing, suggesting orienting response is an indicator of initial perception rather than further elaboration.