Perceptions of Intentional Wrongdoing and Peer Reporting Behavior Among Registered Nurses

Researchers and practitioners have devoted considerable attention to firms' policies regarding discretionary disclosures. Prior studies argue that firms increase demand for their debt and equity issues and, thus, lower their cost of capital, by providing more informative disclosures. However, empirical research has generally not been able to document significant benefits from increased disclosure.This paper proposes an alternative explanation – firms disclose because it is the socially responsible thing to do. We argue that companies have incentives to engage in stakeholder management by undertaking socially responsible activities and that providing extensive and informative disclosures is one such practice.We examine the relationship between firms' disclosures and measures of social responsibility. We use ratings provided by the Council on Economic Priorities as proxies for the degree of social responsibility adopted by the sample firms. Disclosure rankings provided by the annual Association for Investment Management and Research Corporate Information Committee Reports (AIMR Reports) are used to measure disclosure level.Our results indicate that there is a positive relationship between disclosure level and corporate social responsibility. That is, firms that engage in socially responsive activities provide more informative and/or extensive disclosures than do companies that are less focused on advancing social goals. In addition, we find that socially responsible firms are more likely to provide this increased disclosure through better investor relations practices. These results support our contention that increased disclosure is a form of socially responsible behavior.     

Understanding and managing anti-social behaviour on public transport through value change: The considerate travel campaign

This article explores anti-social behaviour on public transport, regarded as a major problem by most transport authorities in Britain. It has been estimated that a passenger increase of more than 11.5% in Britain could be achieved if public concerns over anti-social behaviour could be allayed. The article starts by noting that combating anti-social behaviour has generally been seen as the remit of police and enforcement officers. However, research carried out for Transport for London indicates that for the majority of the travelling public, the forms of anti-social behaviour, which concerns them is more likely to be low-level behaviour, ranging from groups of young people behaving boisterously to people eating food or talking loudly on mobile phones.Using the ‘problem solving approach’ structure, the article then examines the process by which Transport for London has partially ‘uncoupled’ anti-social behaviour from criminal activities and then treated the two issues as related but distinct. As a result, a series of policing and enforcement initiatives have been introduced to prevent crime, but a different, unique approach has been taken towards controlling anti-social behaviour. Rather than being tackled as a form of low level criminality, anti-social behaviour is viewed as the outcome of clashing values about appropriate behaviour on public transport. Therefore, the answer to anti-social behaviour lies in minimising these values clashes, rather than concentrating on enforcement against perpetrators. The article describes the resulting large-scale media campaign—the Considerate Traveller Campaign, which was launched in 2008 with the aim of increasing tolerance and consideration for others.The article concludes with a summary of the early evaluation of the campaign, which suggests that it is having some positive effect in changing values and argues that in the longer run, it may be possible to amend the behaviour on public transport without relying so heavily on enforcement measures.     

The efficiency of voluntary incentive policies for preventing biodiversity loss

Habitat loss is a primary cause of loss of biodiversity but conserving habitat for species presents challenges. Land parcels differ in their ability to produce returns for landowners and landowners may have private information about the value of the land to them. Land parcels also differ in the type and quality of habitat and the spatial pattern of land use across multiple landowners is important for determining the conservation value of parcels. This paper analyzes the relative efficiency of simple voluntary incentive-based policies in achieving biodiversity conservation objectives. This topic is important not just for biodiversity conservation but for any effort to provide a public good requiring coordination across multiple decision-makers who have some degree of private information. We develop a method that integrates spatially explicit data, an econometric model of private land-use decisions, landscape simulations, a biological model of biodiversity as a function of landscape pattern, and an algorithm that estimates the set of efficient solutions. These methods allow us to simulate landowner responses to policies, measure the consequences of these decisions for biodiversity conservation, and compare these outcomes to efficient outcomes to show the relative efficiency of various policy approaches. We find substantial differences in biodiversity conservation scores generated by simple voluntary incentive-based policies and efficient solutions. The performance of incentive-based policies is particularly poor at low levels of the conservation budget where spatial fragmentation of conserved parcels is a large concern. Performance can be improved by encouraging agglomeration of conserved habitat and by incorporating basic biological information, such as that on rare habitats, into the selection criteria.     

Comparative forecasting: Hindsighting the Czechoslovakian invasion

Two dissimilar information-processing techniques may be used to forecast the same phenomenon. Event-pattern recognition, objective in nature, uses predetermined indicators and is dependent upon selected data flows; the Bayesian method rests more heavily upon subjective interpretation. These two methods may be used to forecast a variety of phenomena—here they are retrospectively tested for their ability to forecast the August 1968 Soviet invasion of Czechoslovakia. Objective and subjective methods may be used to generate combined, or at least cross-validated, forecasts; and the author suggests how—and at what costs—comparative forecasting may be used productively for international political analysis.     

Myopic Corporate Behaviour with Optimal Management Incentives

Existing models in which stock markets lead to corporate 'short-termism' rely on an exogenously imposed objective for top managers. This paper endogenizes both managers' concern for short-term stock prices and the resulting distortions. We show that when the manager can trade on her own account on the stock market in a way that is observable to market participants but which is not verifiable in court, shareholders will choose an incentive contract which induces a bias towards short-term returns. Consistent with recent evidence, the short-term bias is greater when the optimal contract provides low-powered management incentives.     

Earnings Management and Antitrust Investigations: Political Costs Over Business Cycles

This paper examines evidence of earnings management pertaining to regulatory-imposed wealth transfers (i.e., political costs) over business cycles. The sample consists of firms subject to merger-related antitrust investigation under Section 7 of the Clayton Act. Industrial organization literature, together with the political cost hypothesis, suggests that these firms' earnings management incentives may vary over national business cycles. Our results indicate that investigated firms do indeed choose income-decreasing discretionary accruals during expansions but not during recessions, in order to reduce the political costs associated with Clayton Act cases.     

The Greek financial crisis: Growing imbalances and sovereign spreads

We discuss the origins of the Greek financial crisis as manifested in the growing fiscal and current-account deficits since euro-area entry in 2001. We then extend a model typically used to explain risk premia to assess the extent to which credit ratings captured these premia. Next, we estimate a cointegrating relationship between spreads and their long-term fundamental determinants and compare the spreads predicted by this estimated relationship with actual spreads. We find that spreads were significantly below what would be predicted by fundamentals from end-2004 up to the middle of 2005; by contrast, since May 2010, actual spreads have exceeded predicted spreads by some 400 basis points.     

Integration of inventory and transportation decisions in a logistics system

This paper addresses some of the challenges faced by a company which is responsible for delivering coal to its four subsidiaries situated along a river, through river hired or self-owned vessels. We propose to adopt a vendor managed inventory concept that involves establishment of a central warehouse at the port, and apply the Markov Decision Process (MDP) to formulate both ordering and delivery problems, considering different transportation modes, costs, and inventory issues. An efficient algorithm is developed for solving the MDP models. Our computational tests show that the proposed strategy can significantly reduce the overall system costs while maintaining smooth Just-in-Time supplies of coal to the subsidiaries.