An Investigation of the Components of Moral Intensity

While there is considerable interest in the topic of business ethics, much of the research moves towards measuring components with a view to predicting ethical behaviour. To date there has not been a satisfactory definition of business ethics, nor has there been any real attempt to understand the components of a situation that may influence an individual's assessment of that situation as ethical or otherwise. Using Jones's (1991) construct of moral intensity as a basis for investigation, this paper presents some exploratory analysis on the context within which ethical decisions are assessed. The findings reveal that individuals differ in their assessments of the same situation and often use a number of complex reasons to explain whether a situation poses an ethical problem for them. These findings are discussed within a framework of measurement issues and future directions for research.     

Subsidies and Corporate Governance – An Agency Approach

The literature on subsidies conceives state aids as always beneficial to the aid‐receiving firm. However, the picture changes if agency problems are assumed between the managers and owners of the firm. In this case, subsidies may run counter not only to the desired result of the aid grantor but also to the interests of firm owners. Managers may divert subsidies into their own pockets, thereby deflating firm value. Copyright © 2014 John Wiley & Sons, Ltd.     

Changing Routine: Reframing Performance Management within a Multinational

This paper seeks to extend the literature on how change occurs in organizational routines by examining the link between routines and schemata and showing the cognitive and motivational factors involved. Using an in‐depth analysis of a Japanese multinational, we develop an account of how a newly‐implemented centralized performance management routine is interpreted by managers at two subsidiaries. We show how different performances of subroutines emerge into a new ostensive pattern of a routine, and how the cognitive and motivational aspects of individual agency are manifested in this process and how they affect the espoused organizational schema.     

International Financial Flows in Low‐Income Countries

For a sample of low‐income countries, we analyse the behaviour of international financial flows during three periods: (i) the 2003–2007 global boom; (ii) the 2008–2009 crisis; and (iii) the 2010–2012 recovery phase. In particular, we examine aid‐adjusted net financial inflows, debt inflows, foreign direct investment inflows and official reserve outflows. We highlight the role of country characteristics in explaining the cross‐country variation in international financial flows during these different phases.     

Up in Smoke? The Impact of Smog on Risk Perception and Satisfaction of International Tourists in Beijing

This research explored the perceptions of on‐site international tourists towards the smog in Beijing. A scale measuring the degree of tourists' concern about smog conditions was developed. The links among smog concern, risk perception, trip satisfaction and destination loyalty were tested with a structural equation model. Direct relationships were found for the hypothesized effects of smog concern on risk perception and satisfaction. Further, the influence of risk perception on reducing satisfaction as well as the role of satisfaction in forming revisit intention (loyalty) was identified. The broad concerns of this study are applicable across all key Chinese tourism cities visited by international tourists. Copyright © 2015 John Wiley & Sons, Ltd.     

Tourists' Perception of Authenticity in Indigenous Souvenirs in Taiwan

This study contributes to a body of knowledge concerning tourists' perception of authenticity for indigenous souvenirs in Taiwan. Researchers evaluated, designed, and produced souvenir cups chosen to represent Taiwan's indigenous Paiwan culture. Markers, designs, and materials were researched and selected in order to examine tourists' perceptions of authenticity. Tourists were asked to evaluate the cups and to explain their perceived authenticity and willingness to purchase. The findings suggest that tourists perceive modern design combined with indigenous markers to be more authentic than traditional design. The apparent traditionalism of aboriginal souvenirs does not determine the degree of authenticity. Tourists' perception is specifically grounded in the visuality of the souvenir and their willingness to purchase is also associated with authenticity in design.     

POSITIVE ALPHAS,ABNORMAL PERFORMANCE,AND ILLUSORY ARBITRAGE

Jensen’s alpha is well known to be a measure of abnormal performance in the evaluation of securities and portfolios where abnormal performance is defined to be an expected return that exceeds the equilibrium risk adjusted rate. It is also well known that in estimating Jensen’s alpha, a nonzero value can be obtained by using incorrect factors or not employing time varying betas. This paper makes two additional contributions to the performance evaluation literature. First, we show that a stronger statement is true regarding the meaning of a nonzero Jensen’s alpha. In fact, a nonzero Jensen’s alpha represents an arbitrage opportunity. Second, we show that even if the correct factors and time varying betas are used, a nonzero Jensen’s alpha can result if the estimate is conditioned on the wrong information set in the presence of an asset price bubble. We call this illusory arbitrage. Both facts are relevant to interpreting the existing empirical literature evaluating the performance of mutual and hedge funds.     

Exposure of the human population to BSE infectivity over the course of the BSE epidemic in Great Britain and the impact of changes to the Over Thirty Month Rule

The Over Thirty Month Rule (OTMR) was introduced in 1996 as a measure to reduce the exposure of the population to the BSE agent by limiting the age of animals that could be slaughtered for food. This study was carried out as part of the process of reviewing the OTMR that is currently being carried out by the UK Food Standards Agency (FSA). Data on the infectivity of bovine tissues, the development of infectivity through the incubation period and the cattle to human species barrier are reviewed. All the possible routes by which infective material could be included in food for human consumption, including contamination with infected tissues in the abattoir, embolism following slaughter, dorsal root ganglia in meat, mechanically recovered meat and failure of SRM controls are evaluated over the period of the BSE epidemic. It is estimated that the exposure from one fully infected animal slaughtered for food at the present time would be about 27 bovine oral ID₅₀ units, this compares to a peak value of about 1900 early in the epidemic. At present the exposure is primarily due to dorsal root ganglia, but over the course of the epidemic the main contributor to total infectivity is estimated to have been mechanically recovered meat (MRM). However, it is also shown that the potential exposure to infectivity due to MRM in any one meal would have been very small, casting doubt on whether this could have been an effective source of infection. By combining these estimates with estimates of numbers of infected animals by incubation period and year it is estimated that a total of some 54 million bovine oral ID₅₀ units would have been consumed from 1980 to date, reaching a peak of about 11 million units in 1993, but falling rapidly following the introduction of SBO ban and the OTMR. In 2001 it is estimated that the exposure for the whole UK population is only 2.5 bovine oral ID₅₀ units. The study has helped demonstrate that current exposure to BSE infective material in the UK is very low, and would remain very low if the OTMR was amended or abolished.