Practical methods for measuring and managing operational risk in the financial sector: A clinical study

This paper analyzes the implications of the advanced measurement approach (AMA) for the assessment of operational risk. Through a clinical case study on a matrix of two selected business lines and two event types of a large financial institution, we develop a procedure that addresses the major issues faced by banks in the implementation of the AMA. For each cell, we calibrate two truncated distributions functions, one for “normal” losses and the other for the “extreme” losses. In addition, we propose a method to include external data in the framework. We then estimate the impact of operational risk management on bank profitability, through an adapted measure of RAROC. The results suggest that substantial savings can be achieved through active management techniques.     

Family life in grocery stores – a study of interaction between adults and children

Today the family is seen as a unit for food choice and consumption. The influence of family members on food choice comprises several stages that can be carried out both in the private home and in the public sphere, such as the grocery store. This makes the grocery store a context in which ordinary family life can be observed. The aim was to study families and the interaction between children and adults in the grocery store, focusing on young people's involvement in food shopping. Hidden observation and family interview methods were used. A total of 338 people were observed in seven different grocery stores in Stockholm during the summer and autumn of 2003. Seven family interviews, involving a total of 29 persons, were conducted in Uppsala in the spring of 2003. In the interviews, parents reported avoiding shopping for food together with children as they experienced it as stressful and exhausting. The observations showed that family life in the grocery store comprises not only the food purchase, but also bringing up children and consumer education. Young people's involvement in the food purchase varied depending on their age and the specific product. The different behaviour observed may be interpreted as reflecting the variation in ways of bringing up children at home. Another conclusion is that a public place such the grocery store facilitates pedagogical situations and can work as a tool for informal education.     

Entrepreneurial orientation in family firms: the case of the hospitality industry

Research increasingly shows interest in the motives and characteristics of entrepreneurs in the tourism and hospitality industry. Small and medium-sized family firms dominate this industry. Learning from the concept of entrepreneurial orientation and family business research, this explorative study aims at analysing entrepreneurial behaviours and their effect on performance as perceived by owner-managers of hospitality family businesses. The authors conduct narrative in-depth interviews to understand the managers' meaning of entrepreneurship and performance, and discuss the results in the light of existing entrepreneurship literature. Results indicate that family firms in hospitality and tourism are peculiar, and their embeddedness in the destinations and regions outlines their entrepreneurial behaviour against Schumpeter's definition of growth-oriented entrepreneurship.     

How Do Firms Choose Between Intermediary and Supplier Finance?

This paper examines firms’ short‐term financing choices between intermediated loans and trade credit. I test two sets of empirical hypotheses: 1) hypotheses concerning the cross‐sectional differences in the level of intermediary finance for firms that use different levels of trade credit and 2) hypotheses concerning the dynamics of trade credit growth. I find strong evidence that for firms with high agency costs, the use of trade credit facilitates access to conventional bank loans. The evidence is consistent with theories based on the signaling role of trade credit provision and suppliers’ liquidation advantage.     

Union Organizing as a Mobilizing Strategy: The Impact of Social Identity and Transformational Leadership on the Collectivism of Union Members

This article investigates the effect of union organizing as a mobilizing strategy on the collectivism of union members. We examine the impact of a worker's social identification with fellow members and the transformational leadership qualities of the local union representative. We employ regression analysis with tests of mediation to analyse the survey responses of c. 1,000 rank and file members of a major professional union, collected in July 2004 during a mobilization campaign. Social identification and transformational leadership were associated with members' union loyalty and willingness to work for the union. Social identification acted as a mediating variable in both cases.     

Intolerable nuisances: some laboratory evidence on survivor curve shapes

The fraction of a user population willing to tolerate nuisances of size x is summarized in the survivor curve S(x); its shape is crucial in economic decisions such as pricing and advertising. We report a laboratory experiment that, for the first time, estimates the shape of survivor curves in several different settings. Laboratory subjects engage in a series of six desirable activities, e.g., playing a video game, viewing a chosen video clip, or earning money by answering questions. For each activity and each subject we introduce a chosen level \(x \in [x_{\min }, x_{\max }]\) of a particular nuisance, and the subject chooses whether to tolerate the nuisance or to switch to a bland activity for the remaining time. New non-parametric techniques provide bounds on the empirical survivor curves for each activity. Parametric fits of the classic Weibull distribution provide estimates of the survivor curves’ shapes. The fitted shape parameter depends on the activity and nuisance, but overall the estimated survivor curves tend to be log-convex. An implication, given the model of Aperjis and Huberman (SSRN, doi:  10.2139/ssrn.1672820, 2011), is that introducing nuisances all at once will generally be more profitable than introducing them gradually.