Credit default swaps and the UK 2008–09 short sales ban

Most studies of the short sales ban of UK financial stocks from September 2008 to January 2009 fail to control for the UK’s worst ever banking crisis and the underlying increase in risk. This paper studies the ban’s impact on the 13 large financials with credit default swaps (CDS) and 20 smaller stocks without CDS. The results reveal that returns of banned stocks Granger cause CDS returns in the pre- and post-ban periods, but causality runs from CDS to stock returns during the ban period. Underlying risk proxied by the CDS probability of default increased during the ban and the immediate pre- and post-ban periods which highlights an endogeneity problem ignored in some studies. This increased risk provides a plausible rationale for why CDS and related equity bid-ask spreads - which increased during the ban period – failed to fall significantly in the post-ban period. Panel regression results indicate that probability of default was an important economic determinant of stock bid-ask spreads during the ban period. Finally, our results suggest that the ban offered direct price support for the smaller non-CDS stocks during the ban period and indirect support for CDS stocks from their pre-ban to their post-ban levels.     

A Partnership Model of Corporate Ethics

The stock market crash of 1987 had a profound effect on corporate Australia and the Australian community in general. The fall-out revealed that some of our most respected business figures had not been as ethical, or even as lawful, as we would have hoped. This impropriety produced in Australia an awakening to business ethics. Whilst many companies endeavoured to introduce ethical practices into their corporations, they perceived ethics as a way of minimising damage to the corporation and in some cases as a means of competitive advantage. What was lost was the reason that one should embark on business ethics; and that is to make the society and corporate Australia a more ethical place in which to exist.This paper proposes a model based on 2 factors: commitment and partnerships, as a means of enabling corporate Australia to refocus attention on the main purpose of being inherently ethical in all that we do. This ethical model requires a commitment to partnerships with all stakeholders both internal and external in an attempt to enhance the level of ethical business practices that are contemplated and pursued within corporate Australia. Whilst the research agenda and the information collected is Australian-based, it is hoped that the ideas contained within this paper will have a wider appeal to corporations in similar cultural settings.     

Board composition and corporate philanthropy

Using agency theory, this study empirically examined the relationship between board composition and corporate philanthropy. Generally, the ratio of insiders to outsiders, the percentage of insider stock ownership, and the proportion of female and minority board members were found to be positively and significantly associated with firms' charitable contributions.Jia Wang received his Ph.D. from the University of Tennessee, Knoxville. He is an associate professor of management at California State University at Fresno. His current research interests include corporate governance and corporate social performance.Betty S. Coffey is an assistant professor of management at Appalachian State University. Her research interests are in the area of corporate social performance and functional level strategic management.     

Great crashes in history: have they lessons for today?

Crashes in asset markets have been common throughout history,while financial crises, defined as crises in the banking system,have in some countries and periods been as common, and in othersmuch more rare. This article examines historical attitudes tothose events, and looks at some of the events themselves. Itis concluded first, that crashes need not inevitably be followedby crises; second, that crashes without crises do not have seriouseffects on the economy; and third, that there is a policy instrument,the lender of last resort, to prevent financial crises fromoccurring even should there be a substantial preceding fallin asset markets. These lessons from history, so it is argued,hold for recent events in South-east Asia and, indeed, applygenerally to any economy. The present can still learn from thepast.     

Unlicensed assistive personnel retention and realistic job previews

There is a rich literature addressing employee turnover and retention. Research demonstrates that realistic job previews increase employee retention by fostering development of realistic job expectations that match job and organization requirements. Realistic job previews use may be an effective strategy to decrease unlicensed assistive personnel turnover and increase retention.$     

The organization of volunteer battalions in Ukraine

When war broke out in Eastern Ukraine in 2014, the government of Ukraine failed to provide adequate defense to maintain its territorial integrity. In the wake of this government failure, several private volunteer efforts arose to meet popular demand for military action against Russian-backed Separatists. These volunteer battalions had to find alternative methods of aligning their incentives with the population wishing to be defended, and alternative methods of aligning the incentives of their leadership and their recruits. The success of these battalions depended on the potential for political careers and favors, the strength of reputation mechanisms in small communities, and the potential for loot and spoils. These factors shaped the size, characteristics, and activities of the volunteer battalions.