Capital and income financialization: Accounting for the 2008 financial crisis

Financialization is recognised as a key feature of the 2008 financial crisis. We argue that a lesson is the need for an accounting framework which focuses upon financialization allowing it to be monitored and controlled by stakeholders. We argue that financialization has been permitted through the failure of accounting to distinguish distributable income from capital gains/transfers and to distinguish productive from speculative capital. We introduce an accounting presentation (4S accounting) which effectively makes these distinctions. We use a stylized example to illustrate how it should be applied to the financial reporting of banks.     

The Moderating Influence of Country of Origin Information Seeking on Homophily and Product Satisfaction

ABSTRACT

The purpose of the research was to investigate when consumers concurrently select a range of retail products online, what percentage of products need country of origin (COO) identification. Moreover, will COO information seeking positively moderate the relationship between homophily and product satisfaction. Participants were recruited through an online survey platform (MTurk). The results appear to be the first to quantify the number of retail products within a basket that need some form of country of origin (COO) identification. Electronic word of mouth (eWOM, e-reviews) has become an important factor in the purchasing process for consumers. When COO information is unavailable, consumers will search online reviews to determine the COO of products. When reading the e-reviews, consumers will also evaluate the reviewer and the similarities they share. If they are not similar (low in homophily) their satisfaction with the product is low. By contrast, when homophily is high, product satisfaction is high. Specifically, as homophily increases, an individuals' need for COO information seeking has a positive moderating effect on their perceived product satisfaction. Online retailers promoting their products could benefit from sales increases due to their ability to provide COO information at a low cost, which in turn, provides ease, peace of mind and purchase satisfaction for consumers.     

An investigation of hindsight bias in nascent venture activity

We posit that individuals who are actively engaged in activities to develop their own venture will exhibit hindsight bias when recalling their startup experiences. We observe that those who fail to develop their startup activity into an operating business demonstrate substantial hindsight bias concerning the probability of venture formation. In particular, the recalled probability of success, reported after their decision to quit, is lower than the probability of success solicited during the nascent process. We argue that the systematic distortion of the past has important implications for individuals involved in the venturing process. Specifically, we suggest that these individuals are at risk of overestimating their chances of success when starting future nascent activity if they do not correct for their optimistic tendencies. The evidence from this study suggests it is important to recognize that what nascent entrepreneurs believe they experienced, and what they actually experienced, may not be equivalent.     

A Note on Former Soviet Bloc Countries

It is argued that while it is difficult to be critical of GKI, because the picture painted of the former Soviet bloc countries is so broad, the treatment is not sufficiently detailed to be analytically illuminating. Four important weaknesses are identified. The first is the problematic analogy of private plot agriculture on the former state and collective farms with minifundia in Latin America, and the consequent analogy of collective farms with latifundia. The second is the argument that private plot farming was involuting in a Geertzian sense. Thirdly, the GKI redistributive land reform agenda for Russia is questioned and a case is made for privately owned and managed large farms. Finally, GKI are criticized for failing to take account of the limited rural labour supply in Russia.     

The Paradox of Transparency,Short‐Termism and the Institutionalisation of Australian Capital Markets

As the ultimate corporate decision‐makers, directors have an impact on the investment time horizons of the corporations they govern. How they make investment decisions has been profoundly influenced by the expansion of the investment chain and the increasing concentration of share ownership in institutional hands. By examining agency in light of legal theory, we highlight that the board is in fact sui generis and not an agent of shareholders. Consequently, transparency can lead to directors being ‘captured’ by institutional investor objectives and timeframes, potentially to the detriment of the corporation as a whole. The counter‐intuitive conclusion is that transparency may, under certain conditions, undermine good corporate governance and lead to excessive short‐termism.     

An Investigation of the Success of Targeting Newspapers and Efficiency of Advertising in Ireland

ABSTRACT

Segmentation and targeting have been considered a central component of marketing strategy for any organization for decades. This study considers the ability to utilize Irish print media to successfully target a high value segment. The aim of this study is twofold: first, to examine reader profiles of Irish daily papers and, second, to consider the accuracy of claimed target readers. Data from the Joint National Readership Survey was utilized to profile readers of the major newspapers available in Ireland. Results suggest once actual circulation size is taken into account there is unlikely to be any advantage in buying advertising space in a publication that claims to target a specific target reader with a smaller circulation, rather than buying advertising in a large circulation mainstream tabloid.     

Managing the costs of HIV/AIDS: A case study of a South African contract cleaning company

This paper, based on a case study of a South African contract cleaning company in Durban, KwaZulu-Natal, adds to the recent literature on the management of the financial impact of the HIV/AIDS pandemic. After situating the research alongside recent contributions that have examined large enterprises, and small, medium and micro enterprises, the paper provides a profile of the company and its predominantly female workforce. The company's management of costs incurred due to HIV/AIDS is critically assessed from the perspective of financial sustainability, using an AIDS Projection Model developed by Matthews (2007 Matthews, A. 2007. Computational modelling of the impact of AIDS on business. AIDS, 21(Supplement 3): S91–7. [Crossref] , [Google Scholar]). It was found that while continued employment of this workforce is economically sustainable, both from the perspective of the business and the associated provident fund, the costs to employees are far from equitable. The paper therefore recommends the implementation of a holistic HIV/AIDS management programme, including treatment and prevention activities.     

Black Liberation and the Foundations of Social Control

In regards to funding for the civil rights and black power movements in the United States, the major philanthropic foundations pursued their primary goals of social engineering and implementation of reforms designed to establish and maintain social control. They operated in the ultimate interests of the wealthy corporate and financial interests that dominated foundation boards and founders, promoting incremental reforms in order to secure their own long‐term systemic interests.     

Contesting the Indian City: Global Visions and the Politics of the Local

This symposium brings together three empirical studies and one conceptual overview examining the politics of redevelopment in contemporary Indian cities. Collectively these articles seek to redress the relative dearth of concerted attention to the institutional, economic and socio‐spatial changes that are shifting the terrain of urban politics in post‐liberalization India.