Social Capital,political empowerment and social difference: a mixed-methods study of an ecotourism project in the rural Volta region of Ghana

Abstract

Claims abound regarding the empowering possibilities of community-based natural resources management (CBNRM). Social capital is seen as a key element towards that end, yet there is a paucity of critical research testing these connections. This study examines two aspects of social capital (cognitive and structural) in a community-based ecotourism (CBE) project in Ghana as they relate to social difference (notably gender and ethnicity) and political empowerment (i.e., access to political involvement, and political efficacy). Quantitative results highlight specific gendered and ethnic differences in political empowerment and social capital that, when combined with qualitative analysis, reveal how those inequities in ecotourism may be rooted in socio/cultural norms. In addition, a novel contribution from this study is that political empowerment seems to be partly mediated by peoples’ access to social capital. This suggests that, regardless of one’s gender and ethnicity, social capital helps to empower individuals. We conclude by describing what an intervention could look like in the context of this CBE project when informed by qualitative feminist as well as quantitative social capital analysis. Doing so we illustrate how a mixed-methods approach to the study of social capital and empowerment may offer important insights towards more equitable CBE.Abbreviations: CBE: Community Based Ecotourism; CBNRM: Community Based Natural Resources Management; NCRC: Nature Conservation Research Centre; FPE: Feminist Political Ecology; PCA: Principal Component Analysis; ANOVA: Analysis of Variance     

The high volume return premium: Cross-country evidence

We examine the high volume return premium across 41 different countries and find it to be a phenomenon found in both developed and emerging markets. The premium is not caused by systematic differences in risk or liquidity. Using Merton's (1987) investor recognition hypothesis as a guide, we find the magnitude of the premium is generally associated with country and firm characteristics hypothesized to affect returns subsequent to a change in a stock's visibility. We also characterize the time-series properties of the premium and consider economic trading strategies.     

Baylor University Roundtable on The Corporate Mission, CEO Pay, and Improving the Dialogue with Investors

A small group of academics and practitioners discusses four major controversies in the theory and practice of corporate finance:

• • What is the social purpose of the public corporation? Should corporate managements aim to maximize the profitability and value of their companies, or should they instead try to balance the interests of their shareholders against those of “stakeholder” groups, such as employees, customers, and local communities?
• • Should corporate executives consider ending the common practice of earnings guidance? Are there other ways of shifting the focus of the public dialogue between management and investors away from near-term earnings and toward longer-run corporate strategies, policies, and goals? And can companies influence the kinds of investors who buy their shares?
• • Are U.S. CEOs overpaid? What role have equity ownership and financial incentives played in the past performance of U.S. companies? And are there ways of improving the design of U.S. executive pay?
• • Can the principles of corporate governance and financial management at the core of the private equity model—notably, equity incentives, high leverage, and active participation by large investors—be used to increase the values of U.S. public companies?

     

Statement of the Financial Economists Roundtable: Bank Capital as a Substitute for Prudential Regulation

The Financial CHOICE Act recently passed by the House proposes to create an “off‐ramp” that would allow banks to escape burdensome prudential regulation if the ratio of their equity capital to their total assets is 10% or more. The Financial Economists Roundtable supports this idea as a means of reducing regulatory costs, but believes some additional safeguards are needed. A capital ratio of 10% may not be high enough to discourage banks from excessive risk taking. A solution is to have two capital requirements for banks choosing the off‐ramp: one absolute (as proposed in the act) and one risk‐based. The FER believes that many banks will prefer this regime to the current burdensome prudential regulation, especially if regulators simplify the setting of risk weights and make them more rule‐based. Regulators setting minimum capital requirements should consider not only a bank’s stand‐alone risk, but also the systemic risk posed by banks, as well as the tendency of accounting measures of income and assets to overstate the economic value of banks’ equity capital. The Financial Choice Act would also eliminate useful elements of ongoing supervision and regulation, not all of which can be addressed by higher capital alone. Furthermore, to facilitate regulatory learning about risks, off‐ramped banks should continue to report the data that regulators use for stress tests, even if they are no longer subjected to the discipline of stress tests. Finally, the act is viewed as too permissive in its treatment of off‐ramped banks that get into trouble. To prevent gaming of regulation, FERC recommends that off‐ramped banks that subsequently fall below the minimum requirements should be required to raise new capital immediately.     

Buyer-Type Effects in Conservation and Preservation Property Values

Properties can be bought by government agencies, land trusts, or private entities for conservation and preservation purposes, such as farmland preservation, wildlife refuges, other conservation, and cultural and historical preservation. There is variation in the dollars paid per acre across properties and across buyer type. An option value model based on future potential land uses is used to explain much of this variation. The data used in our analysis is sales transactions data for conservation and preservation purposes from throughout the United States. We find that much of the value of conservation properties is derived from future potential land uses, including housing, timber, recreation, and conservation. We confirm that public versus private buyers value options differently, which makes sense from a public good point of view, if markets are thin.     

The High-Volume Return Premium

The idea that extreme trading activity contains information about the future evolution of stock prices is investigated. We find that stocks experiencing unusually high (low) trading volume over a day or a week tend to appreciate (depreciate) over the course of the following month. We argue that this high-volume return premium is consistent with the idea that shocks in the trading activity of a stock affect its visibility, and in turn the subsequent demand and price for that stock. Return autocorrelations, firm announcements, market risk, and liquidity do not seem to explain our results.     

Annual Reporting Mechanisms of National Health Service Trusts

This article investigates the role of the annual report and the annual general meeting (AGM) in the context of NHS trusts. The authors report the results of a questionnaire survey of every NHS trust in the UK. Significant variation in the approach taken within a common framework of accountability was found. In general, there seems to be little public demand for trusts' annual reports and attendance at their AGMs was low. The research indicates possibilities of extending annual reporting in the public sector beyond the annual report and AGM and discloses innovative ways that trusts have attempted to overcome the limited interest of stakeholders produced by the traditional reporting mechanisms.     

AN ARGUMENT AGAINST HEDGING BY MATCHING THE CURRENCIES OF COSTS AND REVENUES

One way for multinationals to manage their exposures to foreign currency fluctuations is by matching the currencies of costs and revenues, a practice sometimes referred to as "natural hedging." Proponents of this risk-management technique argue that matching currencies decreases profit variability.
Using the example of a U.S. firm competing with a French firm for sales in France, the authors analyze the desirability of the U.S. firm's matching currencies of costs and revenues by sourcing in France rather than in the U.S. They find that in such settings with limited competition, while matching reduces profit variability, it also causes a reduction in expected profitability–a potential drawback that appears to have been overlooked in previous discussions.
The authors demonstrate that the U.S. firm, by choosing not to match currencies, retains the strategic flexibility to adjust its prices and quantities in order to exploit the competitive cost differentials caused by exchange rate shifts. The expected profit effects of matching depend on the tradeoff between expected cost savings, if any, of sourcing abroad versus the reductions in expected profits due to the loss of strategic flexibility . They argue that the benefits of strategic flexibility associated with sourcing in the U.S. can yield an increase in expected profits that may outweigh the cost savings and hedging benefits of currency matching.