Vessel and voyage determinants of tanker freight rates and contract times

The behavior of shipping freight (charter) rates and the timing of shipping contracts affect the transportation costs of charterers and the operating cash flows of shipowners. Although the literature has established macroeconomic determinants of shipping freight rates, there has been no systematic investigation of microeconomic determinants of freight rates and the delivery time of chartered ships (the laycan period) in the tanker market. Therefore, the aim of this paper is to investigate the importance of vessel and contract specific factors in the determination of tanker freight rates and laycan periods in shipping contracts. Individual tanker shipping contracts from January 2006 to March 2009 are used to estimate freight rates and laycan periods using a system of simultaneous equations. The estimation results suggest that the duration of the laycan period is an important determinant of the shipping freight rate and vice versa. Other determinants of freight rates include the vessel's hull type, fixture deadweight utilization ratio, vessel age, and voyage routes. Determinants of the laycan period include the former determinants as well as the Baltic Dirty Tanker Index and its volatility.     

Boldly going where no brain has gone: Futures of evolutionary cognitive neuroscience

Evolutionary cognitive neuroscience (ECN) is a new discipline that employs methodology from cognitive neuroscience to study, in vivo, the proximate mechanisms of putative evolved psychological/cognitive adaptations. The formalized discipline is less than five years old, but has already generated a plethora of research as well as extended our understanding of the evolved nature of the mind/brain. Here we briefly recapitulate the antecedents to an evolutionarily informed cognitive neuroscience, attempt to fit ECN into a broader evolutionary psychology framework that seeks to account for evolved adaptations to recurrent problems faced by our ancestors, and discuss the futures of this newly formed discipline by expounding on methodological techniques and theoretical accounts that may pervade our future. We believe, as the Nobel laureate Nikko Tinbergen has suggested, that a complete understanding of the evolved nature of behavior and cognition (i.e., evolved cognitive adaptations) can only come from investigations at both the proximate and ultimate levels and, thus here, we attempt to cast ECN as the proximate sister discipline to evolutionary psychology. When taken together these two disciplines have the potential to uncover how and why the mind works.     

Nature or nurture: What determines investor behavior?

Using data on identical and fraternal twins’ complete financial portfolios, we decompose the cross-sectional variation in investor behavior. We find that a genetic factor explains about one-third of the variance in stock market participation and asset allocation. Family environment has an effect on the behavior of young individuals, but this effect is not long-lasting and disappears as an individual gains experience. Frequent contact among twins results in similar investment behavior beyond a genetic factor. Twins who grew up in different environments still display similar investment behavior. Our interpretation of a genetic component of the decision to invest in the stock market is that there are innate differences in factors affecting effective stock market participation costs. We attribute the genetic component of asset allocation—the relative amount invested in equities and the portfolio volatility—to genetic variation in risk preferences.     

Re‐Examining the Technical Efficiency of Australian Banks: A Bootstrap DEA Approach

This study re‐examines both pure technical and scale efficiency of Australian banks using bootstrap data envelopment analysis (DEA). The aim is to improve the choice of variables of the core profit efficiency model which is commonly used in earlier Australian banking efficiency studies. After we introduce the “interest income” over “net interest income” variable in the core profit efficiency model, the proportion of fully pure technical efficient banks decreased to 23% which is significantly lower than 81% which was reported in a recent study. This research argues that the main issue that has contributed to this difference is that improving the choice of variables significantly increases the discriminatory power of efficiency estimates. Additionally, emphasising on statistical properties of efficiency estimates, this study employs bootstrap DEA to provide confidence intervals and bias corrected estimates of pure technical efficiency scores of the sample banks. The bootstrap results show the importance of incorporating sample variation and bias in estimating efficiency scores. Earlier Australian banking efficiency studies ignored such issues. The new findings from the sample banks could have important implications for the banking industry in Australia.     

A study of service quality in rural ICT renters of Iran by SERVQUAL

The development of rural telecommunication services in Iran has been a major and national concern during the past few years. Towards the national planning and in a giant movement, 10 000 centers have been established in rural areas. Because of the novelty of such centers, the authors try to measure the service quality of the rural ICT centers using the SERVQUAL model. The results can be used towards the betterment of the services. Five hypotheses including tangibility, accountability, guarantee, empathy and reliability of service were examined. Twenty four ICT centers were selected in Rasht city as sample. Considering common sense or perception, 63% of the subjects evaluated the quality of services as average. In terms of quality, empathy was ranked as the ideal dimension followed by tangibility, certainties, trust, and guarantee, respectively. However, the least appropriate dimension of quality was given to accountability. In terms of expectation, the highest percentage of individuals, that is, 92% believed that quality of services was important, and believed that among the components of quality indices from the most to the least important items were: reliability, tangibility, accountability, guarantee, and empathy consecutively. This research showed that the SERVQUAL model can be used for determine the quality of services offered by Tele-centers in rural areas.     

Political Views and Corporate Decision Making: The Case of Corporate Social Responsibility

This paper conducts an empirical analysis of the relationship between corporate social responsibility (CSR) and political beliefs in the United States. By analyzing the 2004 presidential election results of communities in which corporate headquarters are located, we establish a correlation between the political beliefs of corporate stakeholders and the CSR ratings of their firms. Companies with a high CSR rating tend to be located in Democratic, or “blue” states and counties, while companies with a low CSR rating tend to be located in Republican, or “red” states and counties.     

The disclosure policy of the firm in an efficient market

This study analyzes the information content of the financial reports of the management-controlled firm in an efficient market. The firm's disclosure fulfills two roles: it is the basis of the principal-agent contract—stewardship role, and it is an input to the market price informativeness (decision making) role. Optimal disclosure is derived as the outcome of the firm's owner-manager-potential buyer game. The seller and the buyer maintain principal-agent relationships with the manager, who alone observes verifiable and unverifiable information on the value of the firm. The market's price of the firm, as well as the manager's compensation, depend on the firm's reports. The firm's owner directs the manager to report verifiable information, at least, (due to the threat of coalition forming) and stewardship information, at most. The market's reaction to the financial reports depends on the information available to the market prior to their release.     

Corporate Reporting on the Internet in Australia: An Exploratory Study

This paper documents a research study on corporate reporting on the Internet by Australian companies. The findings suggest that while corporate reporting on the Internet is emerging in Australia, current practice does not utilise the full potential of the Internet to disclose information to stakeholders. Only limited evidence was found of changes in the reporting practices of companies resulting from opportunities for innovation in information dissemination offered by this technology.     

Analysing tourist satisfaction at a mature and multi-product destination

The current study examines the meaning of ‘home’ and ‘away’ among visiting friends and relatives (VFR) tourists, utilising the multidimensional model suggested by Uriely [(2010). ‘Home’ and ‘away’ in VFR tourism. Annals of Tourism Research, 37(3), 857–860] to assess the VFR experience. Despite recent conceptualisations that emphasise the intersection of tourism and everyday life in various ways, as is prominently exemplified in VFR tourism, this empirical investigation provides evidence as to the limitations of this perspective. Specifically, the findings of this study indicate that when staying at friends and relatives, VFR tourists may feel at ‘home’ in terms of familiarity with place, but they also often experience feelings of ‘away’, in the sense of the loss of privacy and the limited situational control involved in this situation. As a result, the study points to the need to understand tourism, in general, and VFR, in particular, as complex phenomena in which elements of both ‘extraordinary’ and ‘everydayness’ coexist. The conclusion also discusses the marketing implications of the study and provides suggestions for future research.