Opportunistic financial reporting around municipal bond issues

Understanding how government officials exercise discretion over financial reporting is essential for citizens, regulators, and researchers to interpret and monitor financial performance. I examine two measures of discretion in governmental financial statements: abnormal accruals in full accrual financial statements, and other financing sources and uses in modified accrual financial statements. Using a unique dataset of hand-collected financial data from California, I document empirically that municipal governments pursue a break-even income in both sets of financial statements, and that they focus particularly on avoiding deficits. Further, I find evidence that municipalities employ discretionary accruals but not other financing sources and uses to a greater extent before issuing bonds. Prior to bond issuance, officials facing deficits use less discretion. The results highlight the multidimensional and sometimes conflicting incentives government officials face, and the reporting strategies they use as they weigh the expected costs and benefits of using accounting gimmicks to report favorable bottom lines.     

The recognition and valuing of patient knowledge: a way forward

The health care that patients receive, particularly in acute care settings, is mainly based in biomedical knowledge. The scientific method of investigating health conditions has directly contributed to the development of this knowledge. This has made a significant contribution to increased survival rates, reduced recovery periods and extending the duration of life. The influence of consumerism on health‐care management has led to an expectation of increased patient involvement when making decisions about their treatment options. This assumes that the provision of information helps improve patients' understanding of the diagnosed health condition and assists them to make ‘good’ decisions. Accordingly, there is a greater focus on providing information to patients. The information provided to patients mostly involves explanation about the biomedical aspects of their health condition. However, patients also desire information about how the health condition will affect their everyday life. We call the understanding of the implications of this information ‘everyday knowledge’. Provision of this information can assist patients by helping them realize their expectations and providing reassurance to both patients and their significant others. Unfortunately, everyday knowledge that assists patients to understand and manage their daily life has not been as systematically researched or examined. While biomedical knowledge has been extensively developed and promoted through funding regimes, everyday knowledge has not benefited from the same support. The interactions in health‐care settings are influential in the generation and use of knowledge. Practises that encourage sensitivity by health professionals to each patient's situation need to be identified and implemented. An increased focus on the inclusion of everyday knowledge alongside biomedical knowledge is likely to enhance the relevance of the information that patients currently receive.     

Trust in management: the role of employee voice arrangements and perceived managerial opposition to unions

This study examines the relationship between employee voice arrangements and employees' trust in management using data from the 2007 Australian Worker Representation and Participation Survey of 1,022 employees. Drawing on social exchange theory and employee relations literature, we test hypotheses concerning the relationships between direct and union voice arrangements, perceived managerial opposition to unions and employees' trust in management. Consistent with our predictions, after controlling for a range of personal, job and workplace characteristics, regression analyses indicated that direct voice arrangements were positively related to employees' trust in management. Union voice arrangements and perceived managerial opposition to unions were negatively related to trust in management. The article concludes by highlighting the study's implications for management practice and avenues for further research.     

Optimal borrowing constraints and growth in a small open economy

Chinese high growth has been accompanied by government restrictions on international borrowing (capital controls). In this paper, we ask: are such restrictions a useful policy tool to facilitate growth? We provide a theory of borrowing constraints on households as a tool to correct a learning-by-doing externality. Borrowing constraints operate as a policy tool through two channels: (i) increasing labor supply and (ii) reallocating labor towards traded goods. We find that welfare gains are closest to that of the First-Best Planner allocation when the externality is not too large. We compute the sequence of optimal constraints along the growth path and show how the use of this policy tool contributes to repressed wages, current account balance, and slow real exchange rate appreciation.     

Social Entrepreneurship: The Role of Institutions

A relatively small segment of business, known as social entrepreneurship (SE), is increasingly being acknowledged as an effective source of solutions for a variety of social problems. Because society tends to view “new” solutions as “the” solution, we are concerned that SE will soon be expected to provide answers to our most pressing social ills. In this paper we call into question the ability of SE, by itself, to provide solutions on a scope necessary to address large-scale social issues. SE cannot reasonably be expected to solve social problems on a large scale for a variety of reasons. The first we label the organizational legitimacy argument. This argument leads to our second argument, the isomorphism argument. We also advance three other claims, the moral, political, and structural arguments. After making our arguments, we explore ways in which SE, in concert with other social institutions, can effectively address social ills. We also present two examples of successful ventures in which SEs partnered with governments and other institutions.     

The economic burden of psoriasis with high comorbidity among privately insured patients in the United States

Objective: To evaluate the impact of comorbidities on healthcare resource use (HRU), and direct and indirect work-loss-related costs in psoriasis patients.

Methods: Adults with psoriasis (≥2 diagnoses, the first designated as the index date) and non-psoriasis controls (no psoriasis diagnoses, randomly generated index date) were identified in a US healthcare claims database of privately-insured patients (data between January 2010 and March 2017 were used). Psoriasis patients were stratified based on the number of psoriasis-related comorbidities (0, 1–2, or ≥3) developed during the 12?months post-index. All outcomes were evaluated during the follow-up period, spanning the index date until the end of continuous health plan eligibility or data cut-off. HRU and costs per-patient-per-year (PPPY) were compared in psoriasis and non-psoriasis patients with ≥12?months of follow-up.

Results: A total of 9,078 psoriasis (mean age?=?44?years, 51% female) and 48,704 non-psoriasis (mean age?=?41?years, 50% female) patients were selected. During the 12?months post-index, among psoriasis vs non-psoriasis patients, 71.0% vs 83.0% developed no psoriasis-related comorbidities, 26.3% vs 16.0% developed 1–2, and 2.6% vs 1.0% developed ≥3 psoriasis-related comorbidities. Compared to non-psoriasis patients, psoriasis patients had more HRU including outpatient visits (incidence rate ratios [IRRs]?=?1.52, 2.03, and 2.66 for 0, 1–2, and ≥3 comorbidities, respectively [all p?p?p?p?Conclusions: HRU and cost burden of psoriasis are substantial, and increase with the development of psoriasis-related comorbidities.     

The Fish River SDI: New hope for industrial regeneration in the Eastern Cape?

This article reports on a case study of the Fish River Spatial Development Initiative which is spatially focused on the cities of Port Elizabeth and East London in the Eastern Cape Province. Major elements of the SDI, including the two industrial development zones which form part of it, are discussed The SDI is characterised as a nationally driven initiative which aims to create ‘sustainable ‘jobs by increasing the profile of Port Elizabeth and East London as international investment destinations, and thereby attracting large, new export‐oriented investment projects to the region. It is argued that even if the Fish River SDI succeeds in attracting such investment, it is only likely to lead to a once‐off increase in investment and employment rather than sustained industrial regeneration in the region. To ensure such industrial regeneration requires a regional industrial strategy which builds the capacity for learning and innovation in the region.     

The impact of the Saldanha Steel Project on the West Coast economy

This article reports the results of a study which evaluated whether the erection of the steel plant at Saldanha/Vredenburg supports the main objectives of the SDI programme and has resulted in sustainable growth for the region. It investigates the reasons for locating the steel plant here and factors which may affect the long‐term economic success of the plant. It also records the experiences of business people in the region on the impact of the investment on the area's economy to date and their perceptions of its likely impact in the future. From a national perspective, it asks whether the growth in foreign exchange earnings and the extension of a waning industry's lifespan is enough to justify public sector investment in the infrastructure at Saldanha Bay. On a local level, it probes and reports on the extent to which the erection of the steel mill spurred further growth via an enlarged set of activities, higher average productivity, higher savings, and improved actual and expected prospects for earning income.     

An Integrated Approach to Assessing,Managing and Monitoring Campsite Im pacts in Warren National Park,Western Australia

The social and ecological impacts of camping were examined in Warren National Park, Western Australia. The main objective was to apply an integrated approach to assessing campsite degradation and feed this information into a management and monitoring strategy for campsites in the park. Biophysical data were used to establish a campsite profile, providing baseline information that enabled comparison of heavy-use formal campsites with low-use informal campsites. High-use formal campsites were more severely impacted than the low-use, informal campsites. Formal sites were also larger, had experienced more tree damage and erosion, had greater soil compaction, less vegetation cover and tree seedlings, less coarse woody debris, higher riverbank degradation and more walk trails radiating from the campsite. Additionally, the low-use, informal sites had also been degraded by recreation use. Potential indicators were identified, using a social survey that enabled identification of the standards of social and resource conditions in the Warren National Park. Desired conditions were then compared to existing conditions at the campsites and relevant managerial preferences acceptable to visitors were identified in the social survey. Most of the management preferences were considered very or extremely important influences on the quality of the visitor experience.