The implementation mechanisms of voluntary food safety systems

The recent food scares have been the motivation for voluntary programmes on food safety being promoted by public authorities and voluntarily implemented by food operators. In this article, we take into account the nature of the contamination risk to investigate the complementarities between private and public mechanisms for those voluntary systems to be implemented by a firm. We show two main results. First, when the firm directly markets its products to consumers a strong mandatory threat is a sufficient condition to implement voluntary systems whatever the risk of contamination. In contrast, when the mandatory threat is weak voluntary systems should be more implemented in industries where the risk of food contamination is low (pesticide residue) than in industries where the risk of contamination is high (pathogenic contamination). Second, when the risk of food contamination is low and the firm is embedded in a supply chain where the retailer can impose its own safety system, a well-designed penalty contract will induce a voluntary implementation whatever the mandatory threat.     

农村公共产品农户自愿供给的理论与现实解释——社会关系的视角

运用微观经济学的效用理论,同时借鉴Franz Van Dijk和Franz Van Winden等构建的关于社群关系与地方性公共产品私人供给的模型,对社会关系是影响农户自愿参与农村公共产品供给的集体行动的关键因素进行理论解释。并通过中国农村公共道路供给的典型案例解析,说明以血缘、亲缘和地缘为初始禀赋的农村社会关系是农户克服集体非理性,参与农村社区公共产品供给的驱动力。     

Do voluntary disclosures of bad news improve liquidity?

Can managers improve market liquidity and lower the cost of capital by providing voluntary earnings guidance? This study examines the impact of profit warnings on market liquidity and finds that voluntary disclosure of bad news actually improves market liquidity. By conducting an empirical study over the period 1995–2010 on NYSE, NASDAQ and AMEX listed firms, we find that firms that issue profit warnings show enhanced market liquidity during the post-announcement period. We show that profit warnings reduce information asymmetry and lower bid-ask spreads and increase trading volumes. These results are invariant to daily (short run) and monthly (long run) data after controlling for firm specific attributes. The results have major corporate policy implications. By voluntarily disclosing negative earnings guidance by managers, firms will experience significant improvement in market liquidity, thereby lowering the cost of capital. Our results are even more profound for firms that release bad news with extremely negative stock market impact. In other words, voluntary disclosure of bad news is good for market liquidity.     

Anticipating a new conservation bureaucracy? Land and power in Indonesia’s Essential Ecosystem Area policy

As an emerging policy in Indonesia, “Essential Ecosystem Areas” (EEA) is being established as an instrument to expand protections for conservation areas at sites beyond the classical domain of the conservation bureaucracy. The policy impetus is from recent global research identifying high conservation values located outside of formally designated conservation areas. EEA policy provides a foundation for justifying conservation practices at sites based on high biodiversity indicators, but which might not have previously held formal protections. This policy instrument is particularly unique in Indonesia because it is envisioned to support initiatives that emerge voluntarily, even in areas that might not have been historically thought of as conservation areas. This is unusual because it applies to all land categories, including private and public lands. In this article, we introduce the EEA policy and identify the potential applications it might have, considering the possibilities for future conservation area management in Indonesia. In particular, we identify some key principles for researchers and practitioners to follow when assessing EEA implementation. Our organizing framework consists of several elements based on existing land and power characteristics, which we connect to the institutions that might emerge amidst these new policy arrangements. We apply the land and power framework to two emerging EEA sites in Sulawesi to anticipate the extent to which the policy suggests a future trajectory for conservation management, or whether conservation policy will remain tied to existing rigid bureaucratic structures. Findings from the two cases point to the continued primacy of the centralized conservation bureaucracy, indicating that EEA sites are being negotiated through the classical approach for administering conservation areas.     

Voluntary employer changes and salary attainment of managers

The nature of the relationship between a manager's voluntary employer changing and salary attainment remains unclear. A possible, but relatively unexplored, reason for past inconsistency of findings may be that the effect of changing employer has not been examined in terms of the frequency of changes. Therefore, this study sought to verify the relationship between frequency of voluntary employer changes and salary attainment of middle managers. The hypothesis that was tested predicted that the relationship would be of inverted-U shape. Data from a survey of MBA degree holders in Taiwan supported the hypothesis, such that salary attainment was highest among managers with a moderate number of employer changes and lower among managers with low or high inter-firm moves. This revises the notion of the boundaryless career by suggesting that the over-utilization of voluntary employer changes may evoke obstacles to salary attainment.     

Administration of recoveries in individual insolvency: case studies of two UK banks

Against a background of greater competition, market saturation and falling margins over the past decade UK banks have sought greater efficiencies in credit and risk assessment procedures, especially with personal lending products. In the same way they have attempted to reduce costs associated with the monitoring and collection of bad debts. Failure to monitor debt recoveries adequately, however, can lead to further pressure on profits. This paper uses a case study approach to outline key strategies adopted by two major banks in respect of formal insolvency, the ‘tip’ of a considerable debt recovery ‘iceberg’. The paper illustrates the reactions and changing administrative practices of banks, as unsecured creditors, and draws on empirical research that has charted the effect of the Insolvency Act 1986 as regards individual debtors. The collection of bad debts presents banks with risks, heightened by adverse selection and moral hazard problems greater than those applicable to credit risk assessment. However, while the ‘downside risk’ equates with the debt write-off plus transaction costs the ‘upside potential’ has elements of both tangible and intangible benefit. The paper goes on to review specific centralization and outsourcing policies against the critical risks in insolvency. It also suggests that the bargaining power of major creditors, including banks, is increased through these activities, to the possible detriment of smaller creditors and of debtors.