Capital structure,product market competition and firm performance: Evidence from South Africa

This paper investigates the relationship between capital structure and firm performance, paying particular attention to the degree of industry competition. The paper applies a novel measure of competition, the Boone indicator, to the leverage-performance relationship. Using panel data consisting of 257 South African firms over the period 1998–2009, this paper examines the effect of capital structure on firm performance and investigates the extent to which the relationship depends on the level of product market competition. The results suggest that financial leverage has a positive and significant effect on firm performance. It is also found that product market competition enhances the performance effect of leverage. The results are robust to alternative measures of competition and leverage.     

The economics of crime in the urban ghetto

Summary and Conclusion A central conclusion of this paper which explores the economic aspects of crime in the urban ghetto is that it is premature to conclude that an unambiguous relationship between employment opportunities and crime exists. This is not to be considered a repudiation of prior findings of a statistical association between unemployment rates, labor force participation rates, other economic variables, and crime. It is merely a statement of caution when viewing these findings within an analytical perspective devoid of a characterization of the institutional structure of crime and employment in urban ghettos.     

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.     

Bundling and Unbundling in Public–Private Partnerships: Implications for Risk Sharing in Urban Transport Projects

Public–private partnership (PPP) projects may be organized in a variety of ways, depending on the level of integration of the so‐called Special Purpose Vehicle. Based on the analyses of four major PPP light rail projects in Spain, this article outlines two fundamentally different models of organizing the Special Purpose Vehicle in PPP projects; moreover, the article examines the central principles of these two different models of organizing the private sector Special Purpose Vehicle and their implications for risk sharing and project management in large‐scale infrastructure PPP projects.     

Marketing a new African God: Pentecostalism and material salvation in Ghana

• Pentecostalism is an American creation that has been exported to various parts of the world. Its message of hope is produced and promoted by churches that are led by religious entrepreneurial salespeople who create value for customers through the use of marketing techniques that facilitate the blending of the local and the global; the sacred and the profane. Its success in Africa has been attributed to the African penchant for connecting every human experience to the religious. Using the marketing strategic framework of target market and four Ps as an organization tool, we draw on a year-long ethnography in Kumasi, Ghana, to suggest that Pentecostalism in Ghana is marketed as an effective route to material success without risk to postmortem salvation. While the effective blend of the sacred and the profane allows for open public discourse, it fails to deliver on its promise of economic salvation for the poor. In fact, it causes the condition of the poor to deteriorate even further through application of its fundamental requirement: give and God will bless you according to the extent of your giving. We conclude that the new African Pentecostalism and its open embrace of contemporary consumption and materialism have arrested local religiosity and imposed an “economic imperialism” that impregnates every human experience with a commercial character.

Copyright © 2010 John Wiley & Sons, Ltd.     

Catastrophe Risk Bonds

Abstract

This article examines the pricing of catastrophe risk bonds. Catastrophe risk cannot be hedged by traditional securities. Therefore, the pricing of catastrophe risk bonds requires an incomplete markets setting, and this creates special difficulties in the pricing methodology. The authors briefly discuss the theory of equilibrium pricing and its relationship to the standard arbitrage-free valuation framework. Equilibrium pricing theory is used to develop a pricing method based on a model of the term structure of interest rates and a probability structure for the catastrophe risk. This pricing methodology can be used to assess the default spread on catastrophe risk bonds relative to traditional defaultable securities.     

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...     

Labour Markets and Flexibility in the 1990s: The Europe-USA opposition revisited

Economists' contest on labour market flexibility has quickly pivoted around the stylised trade off between more flexibility and growth on the one hand and increased inequality of income on the other, the welfare implications of this trade off being too often assumed rather than verified. This article uses the essays collected in the Special Issue on Labour Markets and Flexibility in the 1990s of the International Review of Applied Economics to challenge the terms of this trade off as well as the related welfare assumptions. Some of the most popular tenets in the literature are assessed in the light of the evidence and the arguments put forward by the authors contributing to the Special Issue, in particular, the notion that the European labour market is rigid, the contention that more flexibility is imposed by international competition, or that labour market regulation weakens both employment and output growth, the belief that the main welfare cost of flexibility is increased inequality of earnings or the fear that flexibility may be primarily 'female'.