Corporate Social Responsibility Disclosures and Investor Judgments in Difficult Times: The Role of Ethical Culture and Assurance

Journal of Business Ethics - We conduct an experiment with 459 nonprofessional investors to examine whether they evaluate companies differently based on management’s stated purpose for...     

The city,power and economic policy in the UK

This article makes use of recent work on financial markets to refine the analysis of the political power of the City in the policy-making process. It is argued that the distinction between market prices that reflect economic fundamentals, and bubbles, fads and herd behaviour plays a key role in assessing City influence. Further this broad notion of influence stemming from market prices need not operate in the interests of the City. As such City influence should be distinguished from the political power of the City, which more clearly resides in the City's ability to limit external regulation of its activities.     

Agricultural policy reform in the United States: an unfinished agenda

The 1996 Federal Agriculture Improvement and Reform Act (FAIR) contained important breaks with a tradition of crop–by–crop subsidies dating back to the Agricultural Adjustment Act of 1933. Farmers with recorded base acres were given the opportunity (which nearly all accepted) to sign a seven–year 'contract' with the US Department of Agriculture (USDA), under which payments will be continued on the merged base acres on a declining schedule until the year 2002. FAIR is an unfinished agenda. First, the coverage of 'freedom to farm' is only partial, with numerous commodities left out of the decoupling programme. Second, the largest producers will augment their already significant receipts with generous lump sum transfers from USDA. This will further reinforce the concentration of roughly 90 per cent of receipts and payments in the hands of the 100 000 to 200 000 largest producers of field crops. An alternative would be to make payments in times of low marketing receipts which recede when prices are high.     

Export uncertainty in centrally planned economies and administered protection

The paper examines the price decision making process of a state foreign trade organization under threat of antidumping tariffs. Given the peculiar application of the antidumping law to centrally planned economy exporters, the paper formally outlines the parameters guiding the state exporter's price decision and attempts to estimate the degree of uncertainty it faces. The exporter's optimal price is shown to depend on its subjective probability distributions of numerous foreign prices and alternative methodologies for calculating a centrally planned economy exporter's “fair price.”     

PARTIAL EXERCISE OF LOAN COMMITMENTS UNDER ADAPTIVE PRICING

The partial takedown phenomenon associated with bank loan commitments is examined in a dynamic context in which banks adjust commitment prices to client takedown behavior. The optimal takedown is an increasing function of client riskiness and a decreasing function of the time the client plans to remain with its present bank and the cost of switching to a new bank. Since the bank's learning is cumulative, the longer a client remains with its bank the smaller is the commitment price adjustment resulting from an aberrant takedown. The enhanced commitment price certainty, obtained with longevity of the client relationship, helps to explain client reluctance to switch banks. Since the optimal takedown is an increasing function of client riskiness under adaptive pricing, such pricing may serve the added purpose of providing information on client risk.