Institutional Investor Ownership and Corporate Pension Transparency

We examine the association between institutional ownership and defined benefit (DB) pension decisions. We find that institutional ownership is negatively associated with pension underfunding, opportunistic increases in the expected rate of return assumption in the presence of underfunding, and significant ownership of the firm's own stock in the DB plan portfolio. Furthermore, these relations are stronger when institutional ownership is concentrated, when institutions are nontransient investors, or when institutions are relatively large. These results suggest that institutional investors are monitoring firm pension decisions, particularly those institutions with stronger monitoring incentives or resources.     

New development: Procurement and policy outcomes—a bridge too far?

This article furthers the discussion in the March 2015 (Vol. 35, No. 2) issue of Public Money &; Management on ‘Public procurement policy and practice— international lessons and debates’. In particular, it illustrates some of the major difficulties in achieving the required policy outcomes through the procurement processes. The numerous ‘failures’, particularly in the defence acquisitions area, are of ongoing concern both in terms of ‘blow-outs’ in costs and, more unfortunately, in achieving strategic defence capability and overall policy outcomes in required timeframes. Can current public sector reforms and observed better practice provide any encouragement for, discipline on, participants to achieve the required results or is it all just too difficult?     

The validity and value of peer assessment using adaptive comparative judgement in design driven practical education

This paper presents the response of the technology teacher education programmes at the University of Limerick to the assessment challenge created by the shift in philosophy of the Irish national curriculum from a craft-based focus to design-driven education. This study observes two first year modules of the undergraduate programmes that focused on the development of subject knowledge and practical craft skills. Broadening the educational experience and perspective of students to include design based aptitudes demanded a clear aligning of educational approaches with learning outcomes. As design is a complex iterative learning process it requires a dynamic assessment tool to facilitate and capture the process. Considering the critical role of assessment in the learning process, the study explored the relevance of individual student-defined assessment criteria and the validity of holistic professional judgement in assessing capability within a design activity. The kernel of the paper centres on the capacity of assessment criteria to change in response to how students align their work with evidence of capability. The approach also supported peer assessment, where student-generated performance ranks provided an insight into not only how effectively they evidenced capability but also to what extent their peers valued it. The study investigated the performance of 137 undergraduate teachers during an activity focusing on the development of design, processing and craft skills. The study validates the use of adaptive comparative judgement as a model of assessment by identifying a moderate to strong relationship with performance scores obtained by two different methods of assessment. The findings also present evidence of capability beyond the traditional measures. Level of engagement, diversity, and problem solving were also identified as significant results of the approach taken. The strength of this paper centres on the capacity of student-defined criterion assessment to evidence learning, and concludes by presenting a valid and reliable holistic assessment supported by comparative judgements.     

The evolution of preferences and competition: a rationalization of Veblen's theory of invidious comparisons

Abstract. We examine how preferences evolve by natural selection in a competitive environment similar to that characterizing much of our evolutionary past. We find that the evolutionarily stable preferences in this context exhibit a concern not only for absolute payoffs but also for relative payoffs, and that this intensifies the degree of competition relative to what obtains when players consider only absolute payoffs. We argue that this has consequences for the equilibrium population size. We argue that the premise of this analysis is consistent with the available anthropological evidence, and that the prediction is broadly consistent with the findings of experimental game theory. JEL Classification: C70 Evolution des préférences et concurrence: une rationalisation de la théorie des comparaisons désobligeantes de Veblen. Les auteurs examinent comment les préférences évoluent par sélection naturelle dans un environnement concurrentiel qui ressemble à celui qui a caractérisé notre passéévolutionnaire, c’est‐à‐dire, un environnement de chasseurs et de cueilleurs. On découvre que les préférences évolutionnairement stables dans ce contexte révèlent un intérêt non seulement pour les résultats en termes absolus mais aussi pour les résultats en termes relatifs, et que cela intensifie le degré de concurrence par rapport à ce qui se passerait si les joueurs prenaient en compte seulement les résultats en termes absolus. En travaillant contre l’espèce si l’on peut dire, la sélection naturelle des préférences réduit les niveaux d’équilibre des populations en deçà de ce qui aurait prévalu si les préférences n’avaient pas évolué. Le postulat de base sur lequel cette analyse se fonde est compatible avec les résultats des travaux anthropologiques et les prédictions sont compatibles avec les résultats des travaux en théorie des jeux expérimentale.     

How Organizational Policies Influence Bystander Likelihood of Reporting Moderate and Severe Sexual Harassment at Work

Little is known about the causal effect of sexual harassment policies on sexual harassment outcomes at work. Based on schema theories of social cognition, organizational policies related to sexual harassment should have a greater impact on responses to moderate, versus severe, forms of sexual harassment. In Study 1, 219 undergraduate students were shown a fictitious company website describing one of three company policies on sexual harassment (a zero-tolerance policy, a standard harassment policy, or no policy), and were then assigned to read about a moderate or severe instance of sexual harassment they ostensibly observed at the organization. Results indicated participants in the zero-tolerance policy condition were more likely to intend to formally report the harassment to their organization than those in the other conditions. This effect was especially strong for the moderate, or more ambiguous, sexual harassment scenario. Study 2 replicated and extended Study 1 using 101 Human Resources professionals and actual policy statements from an organization. Results again indicated that a zero-tolerance policy leads to the highest estimates of bystander reporting, especially for instances of moderate sexual harassment. Implications for practice include a caution against using minimal or compulsory harassment policies in place of salient zero-tolerance policies.