Capitalizing R&D expenses versus disclosing intangible information

We study how to improve the value-relevance of financial information for intangible-intensive firms by investigating two alternatives: capitalizing research and development (R&D) expenses and disclosing intangible information. Using patent counts/citations to proxy for intangible intensity, we find that the incremental value-relevance of disclosing patent counts/citations is greater than that of capitalizing R&D expenses for the high-patent group and vice versa for the low- or medium-patent group. Investors favor the disclosure of patent information for firms with more successful innovations. Since disclosing intangible information may lead to appropriation by rivals, we find that, for the high-patent group, the incremental value-relevance of disclosing patent counts/citations is more pronounced for firms in industries with stronger protection of intellectual property. Overall, our results suggest that disclosing R&D outputs can improve the value-relevance of financial statements for firms rich in intangibles and the incremental benefits of such disclosure will be greater in industries with strong protection of intellectual property.     

Financial liberalization and banking efficiency: evidence from Turkey

This paper examines the banking efficiency in a pre- and post-liberalization environment by drawing on the Turkish experience by using DEA. The paper also investigates the scale effect on efficiency. Our findings suggest that liberalization programs were followed by an observable decline in efficiency. Another finding of the study is that the Turkish banking system had a serious scale problem during the study period. The second part of our analysis relied on econometric methods and found that one major reason for such system-wide efficiency decline has been the growing macroeconomic instability of the Turkish economy in general and financial sector in particular.

The effect of flight distance on fuel mileage and CO2 per passenger kilometer

In this study, the effect of distance on fuel mileage (fuel burn per nautical mile) and CO₂ intensity, based on a large amount of actual flight data, is discussed for narrow-body commercial aircraft performing domestic flights for flight distances of between ～200 and ～800 NM, in Turkey. For twenty-nine domestic routes, the average CO₂ intensity is calculated to be 88 gr/pa-km, with an 80% load factor, ranging from between 112 gr/pa-km (207 gr/pa-NM) for the shortest route and 78 gr/pa-km (145 gr/pa-NM) for the longest route. An overall runway-to-runway analysis reveals that the average flight fuel consumption increases by 5.1 kg for each additional nautical mile. The discussion is extended to cover wind effect, through westbound and eastbound flights, on fuel consumption. The average fuel mileage of the eastbound flights, above 30 kft, is found to be 11.2% lower than those for the westbound flights. A sensitivity analysis is also carried out to reveal the effects of three main flight performance parameters, namely, cruise altitude, cruise speed and aircraft mass on the cruise CO₂ intensity.     

Antecedents of Corporate Entrepreneurship in SMEs: Evidence from an Emerging Economy

Corporate entrepreneurship (CE) research has reached a certain degree of consensus around five core internal antecedents that enable CE, but consensus remains focused on large‐sized firms in Western economies. Using institutional theory, we argue that contextual factors may undermine the viability of internal antecedents in emerging economy contexts. Our qualitative study shows that the organization of the internal environments for CE among service sector Kenyan SMEs is much more interactive and complex than currently presented in the literature. Specifically cultural and contextual factors appear to influence the extent to which the antecedents are able to produce CE activity. Our findings provide a more fine‐grained depiction of the internal environment for CE in emerging economy SMEs.     

Civilizational futures: Clashes or alternative visions in the age of globalization?

This article underlines the existing similarities between Samuel Huntington's civilizational approach hypothesis and the fundamentals of political Islam. The similarity pertains to the argument related to the gradual weakening of nation-states, which also constitutes the main theme of the globalization debate. The civilizational approach and political Islam signify new efforts to reach a much larger political community and organization in world politics. Both of them argue that the formation of new political actor(s) is replacing the old nation-states across religious and cultural affinities. The terrorist organization Al-Qaeda is trying to legitimize its political violence by manipulating the weakness of the nation-states and the utopia of the formation of a much more comprehensive political community and political organization through Islam. Huntington's clash of civilizations thesis indirectly provides a base for Al-Qaeda's rhetoric and a certain type of justification for its terror activities, since the theory argues for the inevitability of the conflict between civilizations, regardless of their political regimes (liberal or totalitarian) with civilizations being determined by their cultural and religious differences—a theme that is used by the ideologues of political Islam.     

An extension to the classical mean–variance portfolio optimization model

Abstract

The purpose of this study is to find a portfolio that maximizes the risk-adjusted returns subject to constraints frequently faced during portfolio management by extending the classical Markowitz mean–variance portfolio optimization model. We propose a new two-step heuristic approach, GRASP & SOLVER, that evaluates the desirability of an asset by combining several properties about it into a single parameter. Using a real-life data set, we conduct a simulation study to compare our solution to a benchmark (S&P 500 index). We find that our method generates solutions satisfying nearly all of the constraints within reasonable computational time (under an hour), at the expense of a 13% reduction in the annual return of the portfolio, highlighting the effect of introducing these practice-based constraints.     

Ecological ideals,sustainable tourism and the heritage concept of an eco-village: the case of Arcosanti,USA

Arcosanti in Arizona, USA, is a yet-to-be completed ecological settlement which reflects the major ideas of Paolo Soleri, an Italian architect and philosopher, on an alternative type of city. Based on field research using interviews, participatory observation and the survey method it examines the relationship between tourism and eco-settlements, using Arcosanti as a case study, in order to discuss current approaches to sustainable tourism and to examine visitor profiles, perceptions, and attitudes. The data indicates that ecological settlements such as Arcosanti can be an attractive tourist destination and it is clear that although Arcosanti had started life as an urban experiment based on ecological and alternative ideas, today it is a place that attracts many visitors. Regardless of whether Arcosanti can be categorized as an eco-village or eco-city, its valuable attractiveness results from Paolo Soleri and his tangible/intangible heritage that contributes an income via sustainable tourism. The study concludes that Arcosanti is an excellent case which offers the promise that ecological settlements can have significant potential for sustainable tourism.     

Having a share in creating a peaceful world: teaching students to become tolerant

The occurrence of terrible incidents and situations all over the world where people are dying or suffering, due to political, economic, or cultural reasons have a great impact not only on students but on all human beings. It is therefore feasible for educators to take an active role to overcome or at least to diminish the negative effects of the situations mentioned above by including human rights education in their curriculum. For these reasons, the aim of this study is to identify the perceptions of students in a multicultural setting through the content topic of human rights to meet the language objectives of the course and also to raise tolerance awareness. The researchers obtained data through interviews, paragraphs, and the teacher’s diary based on observations and content analysis is used to analyse the qualitative data while triangulation research method is used to support the validity of the results. Results of the current study demonstrate that the course had various positive effects on the students and the objectives were met concerning language together by raising more awareness towards tolerance through the content topic of human rights.

     

Does the Riskiness of R&D Outweigh Its Benefits? The Perspective of US Private Lenders

We investigate the relationship between R&D investments and loan spread. Prior research documents that R&D is associated with greater future benefits and risks, suggesting that the valuation of R&D depends on a tradeoff between the two. Some research finds that bondholders consider that the benefits of R&D outweigh its risks: R&D is negatively associated with bond yields. This is surprising given that debt holders are more concerned about downside risk due to asymmetric payoffs. Using data on private debt from the US, we find an overall positive association between loan spread and R&D intensity, suggesting that the riskiness of R&D appears to outweigh its benefits for private lenders. Furthermore, an asymmetric payoff structure implies that the risks of R&D for lenders increase with default risk. Consistent with this argument, we find a positive association between R&D and loan spread for firms that are smaller, with high default‐risk ratings, unrated (no public debt), or in industries with weaker legal protection. Unrated firms are in the most R&D‐intensive group and make up nearly 60% of the firms with private debt. Consequently, studies that exclude unrated firms are likely to present an incomplete picture of the perspective of debt holders on R&D.     

Financial Depth and the Asymmetric Impact of Monetary Policy

This paper investigates the importance of financial depth in evaluating the asymmetric impact of monetary policy on real output over the course of the US business cycle. We show that monetary policy has a significant impact on output growth during recessions. We also show that financial deepening plays an important role by dampening the effects of monetary policy shocks in recessions. The results are robust to the use of alternative financial depth and monetary policy shock measures as well as to two different sample periods.