Exporting to the Federal Republic of Germany

Among Industrialised countries, the Federal Republic is certainly one of the largest markets able to absorb vast quantities of products from the LDCs of South East Asia. However, to open up this sales outlet with its formidable future, it will be necessary to operate an all-embracing marketing strategy.     

Banking Competition and Capital Ratios

Empirical studies provide evidence that bank capital ratios exceed regulatory requirements. But why do banks maintain capital levels above regulatory requirements? We use data for more than 2,600 banks from 10 European countries to test recent theories suggesting that competition incentivises banks to maintain higher capital ratios. These theories also predict that banks that engage in arm's length lending have lower capital ratios, and that shareholder rights and deposit insurance characteristics affect capital ratios. Consistent with these theories, our evidence robustly indicates that competition increases capital holdings. Banks that lend at arm's length exhibit lower capital ratios, whereas banks in countries with strong shareholder rights operate with higher capital ratios. We also show some evidence that generous deposit protection schemes that exclude non‐deposit creditors are associated with higher capital ratios. Our results have important policy implications. First, while the traditional view suggests imposing restrictions on bank activities in order to restrain competition, our analysis indicates the opposite, even after adjusting the regressions for risk‐taking. Second, weak shareholder rights undermine market forces that would otherwise encourage banks to hold higher capital ratios.     

A two-stage subsurface vertical flow constructed wetland for high-rate nitrogen removal.

By using a two-stage constructed wetland (CW) system operated with an organic load of 40 gCOD.m(-2).d(-1) (2 m2 per person equivalent) average nitrogen removal efficiencies of about 50% and average nitrogen elimination rates of 980 g N.m(-2).yr(-1) could be achieved. Two vertical flow beds with intermittent loading have been operated in series. The first stage uses sand with a grain size of 2-3.2 mm for the main layer and has a drainage layer that is impounded; the second stage sand with a grain size of 0.06-4 mm and a drainage layer with free drainage. The high nitrogen removal can be achieved without recirculation thus it is possible to operate the two-stage CW system without energy input. The paper shows performance data for the two-stage CW system regarding removal of organic matter and nitrogen for the two year operating period of the system. Additionally, its efficiency is compared with the efficiency of a single-stage vertical flow CW system designed and operated according to the Austrian design standards with 4 m2 per person equivalent. The comparison shows that a higher effluent quality could be reached with the two-stage system although the two-stage CW system is operated with the double organic load or half the specific surface area requirement, respectively. Another advantage is that the specific investment costs of the two-stage CW system amount to 1,200 EUR per person (without mechanical pre-treatment) and are only about 60% of the specific investment costs of the singe-stage CW system.     

Rational Underdevelopment*

We propose a two‐region two‐sector model of uneven development, where technological change benefits either the lagging or the leading region. In this framework interregional transfers may lead to persistent underdevelopment; by raising wages, transfers reduce the chance of the backward region adopting a new technology and taking off. Due to uncertainty about which region benefits from technological change, the backward region may rationally choose to remain underdeveloped, while the advanced region continues to pay transfers. The model provides a rationale for cases, such as Italy's Mezzogiorno, where the same rich region subsidizes the same poor region on a continuous basis.     

Open-book accounting: Reason for failure of inter-firm cooperation?

Inter-firm accounting techniques such as open-book accounting (OBA) have been described as an important means for effectively managing costs in buyer–supplier relationships and for improving relationship quality. However, disclosing cost data also implies for the supplier the risk that the buyer uses the data during price negotiations to pressure the supplier's profit margin. To date, there is sparse empirical evidence addressing the extent to which cost-data disclosure does affect the supplier's perception of the exchange relationship. This study addresses this gap by investigating the impact of OBA on supplier relationship satisfaction. The findings indicate that OBA may negatively affect supplier relationship satisfaction and thus represents a potential risk to cooperation. The results further suggest that effective safeguards against opportunistic behavior, such as relational social norms, significantly attenuate the negative effect of OBA on supplier relationship satisfaction.     

Prüfungsforschung im deutschen Sprachraum – Bestandsaufnahme, Entwicklungstendenzen und Herausforderungen

National and European regulatory initiatives like the Bologna process frame the conditions for research activities at universities. The changed conditions increase the pressure to publish articles in highly-ranked, mostly international academic journals. It seems likely that expectations of the international research community will affect the applied research methods, the regional focus of the research object and the tendency towards co-authorship. Against this background, the present article conducts a literature review in order to examine the publication activities of German-speaking auditing researchers and discusses further explanations for the observed developments. We examine 308 journal articles by German-speaking auditing researchers between 2000 and 2011. Our analysis documents an increase in the number of articles over time as well as an increase in articles in highly ranked journals. In recent years a higher share of the research applies empirical methods, in particular statistical interference. A dominant topic of the articles is the audit market and environment. Thematic focuses vary over time, partly due to day to day events. The research object remains focused on a European and especially national context in many cases. We present selected key research results and finally discuss challenges for research activities coming along with the described developments.