Probability Updating and the Market for Directors’ and Officers’ Insurance

Over the past decade, much attention has been given to the topics of corporate governance and corporate risk management. One increasingly important insurance product associated with each of these issues is directors’ and officers’ (D&O) liability insurance. Given the interconnectedness that exists between D&O insurance, corporate risk management, and corporate governance, we exploit industry‐specific D&O data to explain how industries most associated with the corporate scandals of the early 2000s adjusted demand patterns during periods of certainty and uncertainty. The rich data set coupled with dramatic changes in the marketplace allows for the testing of insurance demand patterns and enables us to offer insight into the market's response to a unique type of loss shock. The results of this study suggest evidence in favor of demand‐side probability updating, whereby those industries most associated with the corporate scandals of the early 2000s adjusted the demand for D&O insurance during periods of greater uncertainty.     

Evolving communication patterns in response to an acquisition event

This study uses network data of worker behavior to analyze changes in worker communication patterns during the first three years post‐acquisition. The findings suggest that new communication routines develop slowly and are not entirely enduring even when a transformative event, such as an acquisition, occurs. Communication across firms initially increases as workers change their routines. However, over time this communication peaks and then falls as workers develop common ground. Communication across firms was greater when workers' tasks were interdependent. Overall, this study demonstrates that communication routines persist even after an organizationally transforming event. It illustrates the importance of both the formal and informal organization as well as the promise of using social network methods and communication log data to study social phenomena of strategic interest. Copyright © 2011 John Wiley & Sons, Ltd.     

The Influence of Personality Traits on the Processing of Visual and Verbal Information

The purpose of this research is to investigate individuals' preferences for visual as opposed to verbal information and to explore how those preferences relate to processing style personality traits. In comparison to individuals with other processing style personality traits, individuals with a high need for cognition prefer to process verbal information while individuals with a high need for affect prefer to process visual information. Linking processing style personality traits with preferences for visual/verbal information increases our theoretical understanding and practical applicability of personality traits.     

Sixty years at Cornell

The School of Hotel Administration at Cornell University has been teaching and researching for over 60 years. Joan S. Livingston, the Executive Editor of the Cornell Hotel and Restaurant Administration Quarterly, describes the activities of the school.     

Planning,Changing Landscapes and Tourism in Singapore

The paper discusses approaches to certain forms of official planning, the values which underpin them and implications for tourism, with particular reference to Singapore and its natural and cultural resources. Government efforts to mould nature and culture through planning, in accordance with visions of its preferred states, are reviewed and some concerns about the extent of interference and the results are revealed. The landscapes created may be excessively ordered and lacking in spontaneity, with doubts about authenticity, features that adversely affect their sustainability as visitor attractions. Insights are thus afforded into underlying imperatives and the linkages which connect planning, environmental and social policies, political ideologies, and tourism in relatively newly independent states and more widely.     

The mortuary as a source of injury data: progress towards a mortuary data guideline for fatal injury surveillance

To help bridge the obstacle of inadequate injury fatality data in low and medium income countries (LMICs) a simple cost effective system for mortuary surveillance of fatal injuries is being developed in consultation with the WHO. This will inform, direct and monitor injury prevention (IP) interventions and policies in LMICs. This article uses CDC's 'attributes of a successful surveillance system' to describe the process, the barriers and solutions in development of this mortuary data guideline. The consultative process utilised generated feedback from key stakeholders including forensic pathologists, Ministry of Health officials and injury prevention experts. An International Advisory Group was also convened to guide the guideline development. These assisted the adjustment of the proposed guideline to maximise flexibility, acceptability and stability; whilst minimising resource implications. Representativeness and the securing of government support perhaps remain the most significant challenges. Consultation with the advisory group and the wider stakeholders has been effective in developing a widely acceptable, user-friendly, low resource data form to gather useful data. Further strategies to overcome barriers need to be developed over the course of the pilot study and this should be done in consultation with the advisory group and stakeholders.     

Hybrid Choice Models: Progress and Challenges

We discuss the development of predictive choice models that go beyond the random utility model in its narrowest formulation. Such approaches incorporate several elements of cognitive process that have been identified as important to the choice process, including strong dependence on history and context, perception formation, and latent constraints. A flexible and practical hybrid choice model is presented that integrates many types of discrete choice modeling methods, draws on different types of data, and allows for flexible disturbances and explicit modeling of latent psychological explanatory variables, heterogeneity, and latent segmentation. Both progress and challenges related to the development of the hybrid choice model are presented.     

The Great Forgotten Issue: Vindicating Ethics in the European Qualifications Framework (EQF)

Various international authorities have insisted on the importance of ethical learning in higher education for would-be professionals, including students of Business Administration. As the process of creating the European Higher Education Area gathers pace, first steps have been taken to explicitly incorporate ethics in the common European Qualifications Framework (EQF). However, the authors of this study show how in the course of the EQF development process, the consideration given to ethical qualifications has been curtailed and subjected to serious limitations. In this article, the authors review the historical development and the main elements of the EQF. Then, they analyze the gradual elimination of ethics within the EQF. Finally, they highlight the implications of this gradual elimination and propose avenues for further research. Manuel Guillén is Senior Lecturer in Management, at the University of Valencia (Spain). Prof. Guillén earned his PhD in Management with a specialization in ethics and strategic management integration. He has been a Visiting Scholar at the University of St. Thomas, Minnesota (USA), at the University of Notre Dame, Indiana, USA, and guest Visiting Student at IESE Business School doctoral program, in Barcelona. He has presented some of his research at the top conferences in the field and has published in business ethics and management journals. Since 1997 he has taught Business Ethics courses in different business schools, institutions, and companies. Joan Fontrodona is an Associate Professor of Business Ethics and Academic Director of the Center for Business in Society at IESE Business School. He is member of the Academic Board of EABIS, Chairman of EBEN-Spain, and Member of the Executive Committee of ASEPAM, the Spanish Local Network of the Global Compact. He has published several books and papers on business ethics, corporate social responsibility, philosophy, and management. Alfredo Rodríguez-Sedano holds a PhD in Philosophy and a PhD in Business Administration. He is Professor of Sociology at the Education Department of the University of Navarre (Spain). He is also Visiting Professor at the Catholic University of the West (El Salvador). He has been Visiting Professor at the University of Andes (Chile) and Regular Professor at the Catholic University of Sacred Conception (Chile). He has published 16 books, 12 book chapters, and 15 articles on different subjects in the fields of management, philosophy, and education.     

Impact of public involvement in research on quality of life and society: a case study of research career trajectories

This case study illustrates the research career trajectory of two lay researchers after they joined a Big Lottery funded study to explore loneliness and isolation among older people living in a town in the north of England, UK. The two lay researchers were of pensionable age themselves and engaged in all aspects of the research process as full members of the research team. Following research methods training and their substantive input into study design, they engaged fully in an approach of peer‐interviewing of other older adults as the main study method. Following this initial exposure to undertaking research, these exemplars of public involvement in research went on to be involved in other research as co‐researchers at a local and national level. Initially the paper sets out the lay researchers' personal backgrounds and expectations from involvement in research. The impact of their involvement in research on their quality of life and that of their community is presented. Latterly, the societal impact of the lay researcher's involvement is examined. The difference they made to the initial study design and conduct is described first followed by their development as substantial research resources for other studies and community initiatives. Overall the impact of these lay researchers has been significant and the paper provides an example of how involvement in research can impact on individuals and communities to great effect.     

REINVESTED EARNINGS ON DIRECT FOREIGN INVESTMENT

Reinvested earnings on direct foreign investment are accounted for differently in A System of National Accounts 1968 and the System of National Accounts 1993. In this paper these treatments are compared in relation to the connection between national income accounting and macroeconomic theory. For this purpose, macroeconomic modelling is represented by an attempt to extend the closed-economy Cambridge model of growth and distribution to a two-country trading world.