Corporate Risk Management under Information Asymmetry

This paper examines the financial and operational hedging activities of US pharmaceutical and biotech firms that are subject to a high level of information asymmetry stemming from R&D investments during 2001–2006. We find evidence in support of the information asymmetry hypothesis à la Froot, Scharfstein and Stein (1993) that hedging helps mitigate the under‐investment problem. Specifically, we find that the use of financial derivatives is associated with greater firm value and that the value enhancement is larger for firms subject to greater information asymmetry and better growth opportunities. There is a synergy between financial hedging and operational hedging where the latter is used to counter product development risk. The results are robust with respect to alternative performance measures, industry‐specific growth measures, and the endogeneity problem. Our work is differentiated from existing studies that examined commodity‐based industries without addressing information asymmetry.     

基于中国传统文化的高校思想政治教育工作研究

中国传统文化蕴含着丰富的育人理念及方法,其注重先“修己德”、“内省”而后“化人”的修身理念,有助于大学生道德情操和人格塑造的培养.文章以传统文化中育人思想为切入点,着重论述其在高校思想政治教育工作中的价值,并就如何运用开展思想政治教育工作进行了探讨.     

论我国体育产业经营中的风险管理与控制

本文根据风险理论结合体育行业特点,对体育产业中所存潜在风险的类型、原因进行了分析,提出了体育产业经营管理中风险的管理与控制机制。旨在对于我国今后体育产业的长足发展提出建设性意义。     

路网环境下危险品运输的风险控制及应急保障机制研究

研究了我国路网环境下交通特点、危险品运输特点及危险品紧急事件的风险特征,剖析了危险品运输的致灾因子,提出了路网环境下危险品运输的风险控制一般模式、技术框架和应急保障机制建议,为我国具有特殊性和复杂性的路网环境下危险品运输安全监管提供可借鉴的思路。     

INCOME INEQUALITY AND POLITICAL POLARIZATION AND FRACTURALIZATION:AN EMPIRICAL INVESTIGATION OF SOME EUROPEAN COUNTRIES

This paper investigates the relationship between economic inequality and the distribution of votes among political parties, namely political polarization and fracturalization. Economic inequality is captured by the Gini index, whereas new measures of political polarization and fracturalization are offered. This is the first paper to calculate political polarization and fracturalization indices by a methodology previously used for ethnic, religious and linguistic polarization and fracturalization. Empirical analysis uses data for 17 European countries and for three decades, 1980s, 1990s and 2000s. It is shown that increased income inequality increases political party polarization and reduces fracturalization and that political party polarization decreases with increased GDP per capita.     

Does the Welfare State Destroy the Family? Evidence from OECD Member Countries

We study the effect of the size of the welfare state on demographic trends in OECD member countries. Exploiting exogenous variation in public social spending, due to varying degrees of political fractionalization (i.e., the number of relevant parties involved in the legislative process), we show that an expansion in the welfare state increases fertility, marriage, and divorce rates with a quantitatively stronger effect on the marriage rate. We conclude that the welfare state supports family formation in the aggregate. Further, we find that the welfare state decouples marriage and fertility, and therefore alters the organization of the average family.     

The Effect of the Alternation in the Ruling Party on Three-Factor Risks and Returns in ETF: The Case of Presidential Elections in Taiwan

This study discusses the effect of alternation in the ruling party in presidential elections on three-factor risks and returns of the three main exchange-traded funds (ETFs) in Taiwan, which has an unclearly defined international status and whose citizens have the right to vote directly for the president. We find that after the ruling party has been determined, in the period between Election Day and inauguration day, both the stock market and ETFs show a slight rise in prices. This suggests that most investors are initially optimistic after the election results have been announced. Meanwhile, the reverse book-to-market risk value deteriorates significantly. These results indicate that political uncertainty increases the risk premium of market factors and reverse book-to-market factors for some ETFs.     

Performative global finance: bridging micro and macro approaches with a stratified perspective

Theories of performativity can enhance the study of global finance. Taking everyday financial practices seriously, they emphasise the potentially structuring effects and disciplinary nature of finance, and foreground the performative role of economics, financial models, and formulas. It has remained largely overlooked to date that the literature on the performativity of finance can be divided into two distinct approaches. ‘Microperformativity’ is the more actor-oriented approach, beginning its analysis with the exploration of agencements and their practices, or the examination of the social history of mathematical formulas in finance. ‘Macroperformativity’, in contrast, takes its point of departure from the social structure of finance itself, often in relation to national, international, or global power structures. Neither approach provides for an intermediary concept that more explicitly links the micro and macro level. Nor does either approach give adequate analytical consideration to social conflicts and power struggles. To fill these gaps, the paper applies poststructural hegemony theory to reconceptualise performativity as an articulatory logic which accounts for the transition of a particularity towards a universality within a framework of stratified hegemony. Framed accordingly, the concept of performativity accounts more strongly for the social and political processes, ruptures, contestations and contradictions in global finance.     

Career Risk

The author defines asset manager career risk as the risk that asset owners terminate an existing manager due to an extended period of underperformance relative to a benchmark or peer group even though the manager has skill (defined here as positive information ratio). The author shows that myopic loss aversion gives rise to career risk even for skilled asset managers and that the current industry practice of quarterly or annual performance evaluations puts even the most skilled asset managers at risk of undue termination. The author also investigates how a reduction of tracking error leads to a reduction of career risk even though this comes at the expense of lower long-term performance. Finally, the author computes the minimum evaluation period needed to reduce career risk for asset managers of different skill levels.     

Moving out or living on a mound? Jointly planning a Dutch flood adaptation project

All over the world spatial flood risk management policies are on the rise. This paper analyses the planning process for the Overdiepse polder, a so-called “Room for the River” project in the Netherlands. After high water in the 1990s, the Dutch government changed its flood risk management policy. While before 2000 it leaned heavily on dikes to separate water from land, after that year spatial measures to “let the water flow” were introduced. This required the integration of two formerly separated policy domains: flood risk management and land use planning. In the densely populated and economically highly developed Netherlands, returning space to the river unavoidably impacts on the lives and livelihoods of those who live and work along the rivers. Therefore, such spatial measures to decrease flood risk have to be negotiated with various stakeholders. The planning process towards making the Overdiepse polder suitable for temporary water storage deserves more in-depth analysis. We describe and analyze the development of relationships between key actors in the planning process, with a focus on planning practices rather than on assumptions about the existence of certain types and qualities of relationships. We conclude, among others, that citizen involvement can, under specific socio-political and institutional conditions, build trust among stakeholders and increase local legitimacy for interventions by government agencies. However, it should not be idealized as “self-governance” or assumed to be part of a unidirectional change in water interventions towards new relationships between actors.