The Value Relevance of Financial and Non-Financial Environmental Reporting

Previous literature on the analysis of the relationship between environmental reporting and financial performance shows mixed results, due to the use of a broad variety of research methods and the lack of objective environmental performance measures. This paper adopts a new approach to explore this relationship, analysing the value relevance of different types of financial and non-financial environmental disclosures. Furthermore, the analysis includes two different types of environmental reporting: compulsory and voluntary. This study examines a sample of listed Spanish companies, using a regression model based on the Ohlson equity-valuation framework. Results suggest a significant market valuation of financial environmental disclosures (investments, costs and contingencies), but not of non-financial. Furthermore, our evidence corroborates the increase of the value relevance of compulsory environmental information.     

How long memory in volatility affects true dependence structure

Long memory in volatility is a stylized fact found in most financial return series. This paper empirically investigates the extent to which interdependence in emerging markets may be driven by conditional short and long range dependence in volatility. We fit copulas to pairs of raw and filtered returns, analyse the observed changes in the dependence structure may be driven by volatility, and discuss whether or not asymmetries on propagation of crisis may be interpreted as intrinsic characteristics of the markets. We also use the findings to construct portfolios possessing desirable expected behavior such as dependence at extreme positive levels.     

Is privatization related to corruption? An empirical analysis of European countries

This study analyses the relationship between privatization and corruption in Europe over the period 1995 to 2013, taking into account the problems surrounding the issue of causality. There have been researches into the role of privatization in reducing corruption, but decisions about privatization itself are made by politicians, and so corruption could also affect decision making about privatizations. The empirical findings suggest that perceived corruption decreases as the number of privatization transactions increases, but the effect is contrary when privatizations are a more important in terms of annual revenues. Furthermore, our results indicate that overall, privatizations carried out since the early 1980s have not been effective in reducing corruption in Europe. Indeed, privatizations reforms are more carried out in the less corrupt countries.     

CEO letters: Social license to operate and community involvement in the mining industry

This paper aims to analyse how the discourse of CEO letters and other factors influence community involvement and Social Licence to Operate (SLO) in the mining industry. The analysis is based on qualitative information disclosed in sustainability reports and CEO letters from 32 mining firms. Content analysis was undertaken to obtain data for the study, and then a regression analysis and a multiple correspondence analysis were used to test the hypotheses defined in the study. The results indicate that the CEO discourse influences how a firm expresses the importance of gaining its SLO, the philanthropic activities in which companies become involved and the destinations of the investments in the communities in which they operate. The results also show changes in the discourse between 2011 and 2015, which are, in part, explained by the difficult situation experienced by the sector during this period. The paper contributes to the Corporate Social Responsibility literature by integrating different theories from this field into the SLO framework. The analysis carried out and the results obtained are useful for both CEOs and Sustainability Managers, especially in managing their relationships with the communities where they operate or intend to operate.     

Electoral Experience,Institutional Quality and Economic Development in Latin America

In a panel of 18 Latin American countries from 1900 to 2007, we test the degree to which institutions and geography affect country income. Using a new instrument, we find strong evidence that both institutions and geography are important determinants of country income. However, the penalty for economically unfavourable geography is much smaller than the potential benefits from good institutions. The coefficient estimates do not vary significantly when there are changes in the number of countries included in the analysis; the results for institutions are robust to the inclusion of country-fixed effects.     

Estimating Housing Price: Kriging the Mean

The price of houses and its evolution in recent years is one of the issues that citizens and, of course, political and economic authorities are worried about. In most of the developed countries the mean price (per square meter) of houses in an area is estimated by a simple average of single prices from a sample of houses that does not take into account the spatial correlation among the prices. As an alternative to this classic procedure, in this paper we propose a linear estimator of the mean price of houses, using the kriging estimator, which has been specially designed for the case of spatially correlated data in a given domain. This estimator is the best unbiased linear one and provides a more realistic estimate of the mean price of houses in the urban area we are interested in. Obviously, the modelling of the variogram function is a central point in the global estimation process.     

Drivers of the Adoption of Eco-Innovations in the Pulp,Paper, and Paper Products Industry in Brazil

ABSTRACT

This study analyzes the production of knowledge in the field of eco-innovation, checking its state of the art in order to discuss topics of future research. Specifically, it assesses the pulp, paper, and paper products industry in Brazil in order to examine the drivers of the adoption of eco-innovation strategies. The study is essentially a review of the literature, with a methodology based on exploratory research, and using the documental and bibliographical qualitative method. The empirical research was based on a quantitative approach using the strategy of a cross-sectional survey by means of a self-administered online questionnaire. It was verified that the studies related to eco-innovation are still preliminary and that the subject lacks specific research with empirical data from survey and in-depth case studies. The following topics were checked for studies on innovation in environmental issues on conceptual and theoretical discussion; models and indicators for evaluating the eco-innovation; types; and political arguments for their development, with the proposition of research lines within this context. The results of the empirical research allow us to conclude that factors such as environmental regulation, the use of environmental incentives and innovation, reputation effects, top management support, technological expertise, and environmental formalization in the context of domestic enterprises are crucial to the adoption of eco-innovation. Further, the higher the extent to which companies embrace an environmental and innovative culture, the greater the internalization of eco-innovative practices.     

Peanut exposure during pregnancy,breastfeeding and complementary feeding: perceptions of practices in four countries

Food allergy is an increasing problem worldwide. Allergy to peanuts is a particular concern, given that this is rarely outgrown and may be associated with life‐threatening anaphylaxis. However, it is unclear what factors are responsible for a perceived increase in prevalence rates. One matter on which scientists agree, however, is that exposure to peanuts early in life is significant – although whether early exposure protects or sensitizes to allergy is unclear. There is no significant research that currently records differences in early life exposure either within or between populations. This exploratory study makes a first step in this direction using focus groups conducted in four countries with disparate ‘peanut experiences’ to characterize early exposure in these. The ultimate aim is to help in the development of a survey instrument to attain nationally representative samples of consumers and hence to use the results from this to compare with allergy prevalence data collected in other parts of the European Union‐funded ‘EuroPrevall’ project. The results in this study not only reveal considerable similarities across countries (e.g. in terms of lack of knowledge of guidelines; lack of changes in feeding behaviour during/after pregnancy, feelings that diet variety in children is important) but also one or two interesting and potentially important differences, such as increased consumption in Bulgarian (and some Spanish) breastfeeding mothers because of the ability of peanuts to facilitate lactation. Study limitations and future study intentions are also discussed.     

Peer Group Formation in an Adverse Selection Model

This paper develops an adverse selection model where peer group systems are shown to trigger lower interest rates and remove credit rationing in the case where borrowers are uninformed about their potential partners and ex post state verification (or auditing) by banks is costly. Peer group formation reduces interest rates due to a 'collateral effect', namely, cross subsidisation amongst borrowers acts as collateral behind a loan. By uncovering such a collateral effect, this paper shows that peer group systems can be viewed as an effective risk pooling mechanism, and thus enhance efficiency, not just in the full information set up.