Target-Bequest Investment and Insurance Fund

We propose a new type of investment fund, a Target-Bequest Fund (TBF), for which the manager of the fund invests to maximize the probability of reaching a bequest goal, specified by the investor. We assume the fund pays dividends at a rate proportional to the value of the fund, with the proportion also specified by the investor. In addition to considering this basic fund, we propose two extensions. The first extension is to impose a no-borrowing constraint. Indeed, unless the investment fund is a hedge fund, it will likely not allow the manager to invest more in the risky asset than is available in the fund, so this constraint is a realistic one. The second extension is to allow the fund manager to buy life insurance to help reach the bequest goal. We consider both extensions in the special case for which the proportional dividend rate is less than or equal to the riskless rate of return. Our focus is to obtain explicit solutions in a simplified market and insurance setting to give actuaries implementing this fund design some rules-of-thumb for investing in a financial market and buying life insurance in more realistic settings. We fully expect these rules-of-thumb to be generally valid in those more realistic settings.     

Theory and practice of corporate finance: Evidence and distinctive features in Latin America

We survey 290 LATAM firms on capital budgeting, cost of capital and capital structure issues. We analyze the results and compare them to those of other studies. We interpret differences according to special features characterizing both emerging markets and SME. We observe that LATAM firms make use of standard capital budgeting techniques, but give special weight to liquidity and capital rationing considerations. They rely less on cost of capital formal estimations; rather, they use investors' requests as their primordial input. Finally, surveyed firms are less leveraged, and inclined toward stressing the role of internal financing and minimizing payment commitments.     

Work-related suicide in Victoria, Australia: a broad perspective

While unintentional work-related injury is increasingly recognised as important and preventable, population studies of the full range of work related suicides have received less attention. The objective of this study is to investigate the epidemiology of work-related suicide in Victoria, July 2000-December 2007. The study draws on a database of all work-related deaths reported to the Victorian Coroner, inclusive of broadly defined work-relatedness. Inclusion criteria for work-related suicide were at least one of: suicide means was work related, work stressors were identified in police reports to the Coroners or the Coroner's finding, the suicide method involved another person's work (e.g. rail suicide, heavy vehicle) or the suicide location was a workplace. Cases still open for investigation were excluded. Of 642 work-related suicides, 55% had an association with work stressors; 32% jumped or lay in front of a train or heavy vehicle; 7% involved a work location and 6% involved work agents. Work stressor cases identified included business difficulties, recent or previous work injury, unemployment/redundancy or conflict with supervisors/colleagues (including workplace bullying). Work-related suicide is a substantial problem, for which few detailed population wide studies are available. Further research is required to understand the contribution of work stressors and effective interventions.     

Translating European regulatory approval into healthcare uptake for biosimilars: the second translational gap

ABSTRACT

With 15 biosimilar molecules in 9 different molecular classes and currently marketed under 23 distinct brands, the European pathway for regulatory approval of biosimilars has been demonstrably tried and tested. The gap that now remains is the translation from regulatory assessment and approval to incorporation of biosimilars within our healthcare systems in Europe. Despite many efforts by regulators to reach out to clinicians, there remains a translational gap for biosimilars which need to be incorporated in healthcare pathways and understood by clinicians and patients. Only by bridging this gap will biosimilars fully play their role in healthcare for Europe.     

Bioregional planning in central Georgia, USA

Human influences in the five-county region around Fort Benning, Georgia, USA, have been long and intense. Only 4% of the native longleaf pine (Pinus palustris) forest remains intact. Besides the loss of species, habitats, and ecosystem services associated with longleaf pine forests, the environmental concerns of the region include air, water, and noise pollution. The mix of federal and private ownership in this region leads to complicated land-management issues that will likely become even more difficult as the city of Columbus continues its projected growth along the northern border of Fort Benning. To understand how anthropogenic developments affect the environment, we are developing a Regional Simulator (RSim) to project future developments and their impacts on environmental conditions. Using RSim, we can identify the potential effects of growth on noise and air pollution, water-borne nutrients, and habitats for focal species. Noise impacts are already large in the areas of current and projected urban growth for the region. This knowledge of potential futures allows options for environmental protection to be considered. A key lesson from this analysis is that regional simulation models are a cost-effective way to assess the long-term environmental implications of anthropogenic growth and development.     

Trade credit and bank credit: Evidence from recent financial crises

This paper studies the effect of financial crises on trade credit for a sample of 890 firms in six emerging economies. Although the provision of trade credit increases right after a crisis, it contracts in the following months and years. Firms that are financially more vulnerable to crises extend less trade credit to their customers. We argue that the decline in aggregate trade credit ratios is driven by the reduction in the supply of trade credit that follows a bank credit crunch, consistent with the “redistribution view” of trade credit provision, whereby bank credit is redistributed via trade credit from financially stronger firms to weaker firms.     

Temporary employment and segmentation in the Spanish labour market: An empirical analysis through the study of wage differentials

We aim to add empirical evidence to the already studied field of wage differentials between temporary and permanent workers in Spain. Our goal is to find out which determinants of wage differentials are relevant when explaining such differences. Furthermore, the endogeneity of such feature (the type of contract) is controlled for. The same exercise is done with two data sets: the ECHP and the Structure of Earnings Survey. Results show that wage differentials between temporary and permanent workers are explained by the differences in the distribution of personal and job characteristics in both groups, but not by differences in the rewards for those characteristics. These results remain mostly unchanged during the second part of the 1990s, using information from five waves of the ECHP, and are robust to different changes in the econometric specification.JEL Classification: J31, J41The authors would like to thank the participants in the 3rd Summer School of Labour Economics (organised by IZA in Amersee, Munich), in a seminar in the University of Alcalá and in another seminar in the European University Institute in Florence and especially Alison Booth, Luis Toharia, Juan F. Jimeno, Juan José Dolado and two anonymous referees for their helpful comments and suggestions. Florentino Felgueroso kindly helped us with the handling of data. The usual disclaimer applies. The ECHP is being used on behalf of the contract reference ECHP/15/00 between the University of Alcalá and EUROSTAT.     

The value of Care National Vocational Qualifications: what impact do NVQs have on Care organisations in Hertfordshire?

NVQs have been available in Britain since 1986, yet take-up by employers falls short of that aimed for in the Government’s National Training and Education Targets. This study explored the value of the Care NVQ to employers. Employers associated with The University of Hertfordshire Care NVQ assessment centre were approached to determine their perceptions of the impact of the Care NVQ on quality of care, recruitment and retention in their organisations. These employers reported a number of improvements to workers’ knowledge, awareness, performance and in the quality of care delivered which counter the view that NVQs just accredit existing competence.     

Inverting the Pyramid of Values? Trends in Less-Developed Countries

The authors discuss the consistency of transnational companies in their home, as well as in less developed host countries, concerning ethics, values and social responsibility. Ethical behavior offers good reputation, credibility and tradition to the corporation. It leads to corporate social, environmental and economic responsibilities, cooperating to the desired sustainability. This paper analyzes the inversion of values that corporate governance systems have suffered. The meaning and implication of the corporate social responsibility is investigated and discussed. A “pyramid of values” is built upon individual ethical values at the basis. Over them, the organizational ethical values should indicate the limits of operations, so that the corporate social responsibility can be sustained, in the top. The authors comment that ethical values no longer lead the organization. Its communication with the stakeholders, specifically through reports, has been gradually replacing the code of ethics and corporate values. These reports have taken the basis of the pyramid leading the organizations to socially irresponsible and unethical behavior. They do not guarantee transparency or communicate the needs of the society. It appears that transnational companies do not behave the same way in their home country as they do in host countries, particularly in less developed regions like Latin America and Africa. Lack of communication and transparency may induce employees to unethical decisions and transform the reporting system into a marketing instrument. In order to guarantee compliance with the codes, transparency and ethical responsibility, communication within the organization is essential.