Pricing corporate bonds in Brazil: 2000 to 2004

This paper analyzes the factors that influence the issuing price of debentures in Brazil in the period from year 2000 to 2004, applying a factor model, in which exogenous variables explain return and price behavior. The variables in this study include: rating, choice of index, maturity, country risk, basic interest rate, long-term and short-term rate spread, the stock market index, and the foreign exchange rate. Results indicate that the index variable, probability of default and bond's maturity influence pricing and points out associations of long-term bonds with better rating issues.     

Does Sustainability Investment Provide Adaptive Resilience to Ethical Investors? Evidence from Spain

Although sustainable and responsible investment (SRI) has quite recently become a hot research topic, scarcely any systematic research has been paid to the performance of this non-conventional approach to investment during the financial crisis that emerged in mid-2008 when the resilience of the financial markets was sorely tested. Such real-world resilience in practice is the subject of the current research which tests whether environmental, social and governance screens provides ethical investors with adaptive resilience in bull and bear market conditions by focussing on the SRI equity index of one of the most active markets in Europe in terms of ethical investment, the FTSE4Good-Ibex in Spain. Multivariate Generalized Autoregressive Conditional Heteroskedasticity (M-GARCH) analysis indicates that ethical investors in the equity market examined with evidence that greater resilience in severe business cycle shocks could be attributable to SRI by companies. Although limited to a single country study, the results have implications for investors seeking resilience in crisis: when individual values and beliefs towards sustainability tie with personal investment strategy, the end result is adaptive financial resilience, social well-being and environmental defence.     

The Effect of the Chinese Economy on Mexican Maquiladora Employment

During the last five years the maquiladora industry of Mexico has seen a slowing of the rapid growth experienced during the 1990s. The maquiladora expansion has been linked to U.S. foreign direct investment. Additionally, China has become a major receptor of U.S. investment for the production and export of manufacturing goods. This study estimates the impact of the industrial activity of the United States and China on employment demand in the maquiladora industry of the northern border states of Mexico. Using data on industrial activity, real hourly wages, and the real exchange rate as a proxy of Mexican competitiveness, a bounds test cointegration analysis is developed. The results show that the variables affecting external demand have impacted the maquiladora employment trend negatively, while wage differentials and the exchange rate tend to encourage maquiladora activity.     

Developing learning capabilities through a quality management program

This study examines the development of learning capabilities through the implementation of a quality management program in services, based on a case study of transplantation management. The findings show how the introduction of an online system, based on a quality management program, underpinned the knowledge-building capacity of the organization. The results contribute to service literature by addressing how a quality management program links to organizational learning process directly and through building-up organizational knowledge. The implementation of a quality management program allows knowledge building through identification and socialization of tacit knowledge and combination of explicit knowledge. The development of learning capabilities fostered by the introduction of this program occurs under conditions that contribute to the building-up of organizational knowledge. Organizational learning is enhanced during this implementation through an incremental process that detects errors and corrects behavior and/or alters organizations premises, standards and values. This organizational learning helps to upgrade the overall process.     

Effectiveness of interventions to prevent motorcycle injuries: systematic review of the literature

Globally, 49% of deaths from traffic crashes occur among vulnerable road users, including pedestrians, bicyclists, and motorcyclists. Approximately, a quarter of those killed are motorcyclists. The authors carried out a systematic review of the literature to evaluate the effectiveness of interventions to prevent motorcycle crashes and the associated morbidity and mortality. The studies included in this review provide evidence for the effectiveness of helmet use, protective clothing, training, and penalties for alcohol consumption and speeding in preventing injury and death to motorcyclists. The use of helmets is effective, especially if it is universally required by law for drivers and passengers. Training to obtain a license also has positive effects but not when it is totally voluntary. There is limited but consistent evidence that strengthening laws for penalties related to alcohol consumption or speeding has an impact on risk. Traffic calming interventions could help reduce crashes in urban areas. In jurisdictions where there is limited regulation or adherence to effective measures, such as the use of helmets, efforts should be directed primarily at expanding such practices. In other areas, efforts can focus on approaches based on alternative effective measures or on more innovative interventions adapted to local conditions.     

Why So Small? Explaining the Size of Firms in Latin America

On average, Latin American firms are small with respect to world patterns, both in terms of the quantity of assets they control and the amount of employment they generate. We examine data on firm size from developed and developing countries around the world to assess the influence of demand, supply and institutional factors on the size of the largest firms in each country. We find that, besides the size of the economy and the level of income per capita, the key determinants of the size of firms are trade openness, stock market capitalisation and physical infrastructure. Our simulations suggest that if the gaps with respect to the best Latin American performer were closed in each of these three areas, firm size in the countries of the region would – on average – reach world patterns.     

The complex reality of biodiversity conservation through Natural Protected Area policy: Three cases from the Yucatan Peninsula,Mexico

The federal policy of Natural Protected Areas has become the main instrument for conserving biodiversity in Mexico. Established in territories representative of different ecosystems but also of cultural diversity, protected areas in Mexico have historically been created and managed with a centralized rationale, creating several conflicts with local communities over the use of natural resources. The country's approach to protected areas perfectly illustrates the complexities, difficulties and challenges entailed in biodiversity conservation. This paper develops a critical analysis of this policy instrument in Mexico, and analyzes three Natural Protected Areas in the Yucatan Peninsula: The Calakmul Biosphere Reserve, the Celestún Biosphere Reserve, and the Otoch Ma’ax Yetel Kooh Natural Protected Area. The case studies serve as examples of the most common difficulties that arise in Mexican Natural Protected Area policy: (1) uncoordinated public policies; (2) the usual conflict between environmental authorities and local people over the management of natural resources; and (3) the exclusion of local people's perspectives, values and beliefs in conservation policy development and implementation.