Rating Cooperative and Commercial Bank Bonds: a comparative approach

Abstract ** :  The primary objective of this article is to find whether bonds issued by commercial and cooperative banks are rated similarly or not. We then compare the performance of two quantitative methods, namely seemingly unrelated regressions (SURE) and recursive partitioning algorithm (RPA), at explaining bond ratings based on the same set of quantitative indicators. Using the regression model, cooperative banks' credit risk is more sensitive to the quality and size of assets. For commercial banks, elements relative to debt more clearly stand out. In the RPA model, a subtree for the financial cooperatives is created which provides evidence of some differentiation in the rating process. Also, the RPA model outperforms the parametric method whether performance is measured by the percentage of correct classification or the size of the average rating prediction error.     

A Theoretical Model of the Effects of Public Funding on Saving Decisions by Charitable Nonprofit Service Providers

Why do charitable nonprofit, service‐providing organizations save? What are the tradeoffs between using income to build up cash reserves and serving more clients? Saving may generate income, protect the organization against a drop in donations, and increase the organization's chances of survival. Saving, though, may affect the likelihood that nonprofits receive private and public funding. We model the relationship among private and public income, economic conditions, and nonprofit savings. We find that anticipation of government help during difficult times tends to reduce the amount of saving done by the nonprofit. This effect is strengthened if government officials view unspent donations as indicative of a lack of need. Both these effects provide a strong incentive for nonprofits to spend on current consumption rather than to save for the future, and thus to increase the burden on the public purse.     

论虚拟企业组织

虚拟企业组织是相对于实体组织而言的，它意味着实体企业组织的某些职能的“虚拟化”。虚拟企业组织存在的物质技术基础是计算机网络技术，它属于经济活动的一种混合组织形式，本质上是包买商制度在计算机网络时代的变形。不可能存在“虚拟经济”，因为虚拟企业组织与实体企业组织是相互依存的。     

The Power of Networks: Integration and Financial Cooperative Performance

Abstract ** :  The purpose of this paper is to perform a cross‐country survey of the level of integration of systems of financial cooperatives (FC) and its effect on measures of performance. We develop a classification scheme based on a theoretical framework that builds on published work using transaction cost economics (TCE) to explain integration of large numbers of financial cooperatives into networks. We identify three critical levels of increasing integration we call respectively atomized systems, consensual networks and strategic networks. Further, we test some of the propositions that result from the theoretical framework on an international sample of financial cooperative systems. Based on this analysis we can conclude that: (i) Integration is less (more) important in developing (more developed) countries and for very small (large) financial cooperatives as a determinant of efficiency. However, integration tends to reduce volatility of efficiency and performance regardless of development. (ii) Integration appears to help control measure of managers' expense preferences that tend to affect performance of FC. (iii) Despite high costs of running hub‐like organizations in highly integrated system, these systems economize in bounded rationality and operate at lower costs than less integrated systems.     

Property Right and Organizational Characteristics of Producer‐owned Firms and Organizational Trust

Abstract ** :  We examine how organizational characteristics of producer‐owned firms are correlated with the level of perceived trust among cooperative members, using survey data from a sample of U.S. agricultural cooperatives. Our results indicate trust is correlated with property right and organizational structures previously identified in the literature as significant for cooperative performance. We find that the norm of equality and the homogeneity of member interests are key correlates of organizational trust in producer‐owned firms. We also find that some property right structures that improve organizational trust are counterproductive for member investment incentives .     

Circuit Breakers with Uncertainty about the Presence of Informed Agents: I Know What You Know … I Think

This study conducts experimental asset markets to examine the effects of circuit breaker rules on market behavior when agents are uncertain about the presence of private information. Our results unequivocally indicate that circuit breakers fail to temper unwarranted price movements in periods without private information. Agents appear to mistakenly infer that others possess private information, causing price to move away from fundamental value. Allocative efficiencies in our markets are high across all regimes. Circuit breakers perform no useful function in our experimental asset markets.     

Financial Supervision: Integrated or Specialized?The case of Latin America and the Caribbean

This paper discusses the relative merits of the two approaches of financial regulation and supervision for the case of Latin America and the Caribbean (LAC). In doing so, it reviews the main arguments advanced in the specialized literature in pro and against of each approach. All the theoretical arguments are contrasted with available country experiences from around the world and discussed with a focus on the Latin American and Caribbean countries. A methodology to analyze the efficacy and the efficiency of each approach in meeting the main objectives of financial regulation is also provided. The paper concludes that in the present circumstances, the net benefits of adopting an integrated approach probably exceed the net benefits stemming from the adoption of a specialized approach for most of the countries in the region.     

Organizational Culture, Individual Differences and the Participation System in Cooperativism of Associated Workers in Andalusia, Spain

From a psychosocial perspective, we have attempted to identify the characteristics of the democratic systems of a sample of 36 Andalusian cooperatives of associated workers. In this study it has become evident that those who participate the least in the governments of their organizations are the workers and those with less education. Thus, there is a high degree of association between participation in the governing of the cooperative and the development within it of an appropriate organizational culture. The results of this study have allowed us to empirically deconstruct the concept of cooperative democracy, and this process may have an effect on the improvement of human resource administration in this type of organization.     

Le partenariat public-OSBL dans les services sociaux. Le cas espagnol

The article considers the social services supply in the Spanish area of Valencia. The objective is double. First the authors analyse what describes the partnership between public sector and NPO in this area, by using a systemic conception of the social services sector where three main functions can be identified (financing, production and distribution, and regulation). Secondly they search for theoretical arguments explaining this partnership principle. This second section is mainly based on the NPO approach.     

Implementation of Basel II

In this article Jaime Caruana, Governor of the Bank of Spain and Chairman of the Basel Committee on Banking Supervision, first discusses the current status of the Basel II Accord. Next, he offers his perspective on macroeconomic issues related to the capital framework, focusing especially on pro‐cyclicality. Finally, he discusses three important Basel II implementation issues, namely calibration, validation, and cross‐border supervision.