Using technology to improve the management of development impacts on biodiversity

The mitigation hierarchy (MH) is a prominent tool to help businesses achieve no net loss or net gain outcomes for biodiversity. Technological innovations offer benefits for business biodiversity management, yet the range and continued evolution of technologies creates a complex landscape that can be difficult to navigate. Using literature review, online surveys, and semi-structured interviews, we assess technologies that can improve application of the MH. We identify six categories (mobile survey, fixed survey, remote sensing, blockchain, data analysis, and enabling technologies) with high feasibility and/or relevance to (i) aid direct implementation of mitigation measures and (ii) enhance biodiversity surveys and monitoring, which feed into the design of interventions including avoidance and minimization measures. At the interface between development and biodiversity impacts, opportunities lie in businesses investing in technologies, capitalizing on synergies between technology groups, collaborating with conservation organizations to enhance institutional capacity, and developing practical solutions suited for widespread use.     

Estimation of physical intensity models for default risk

The estimation of physical intensity processes in the context of default risk is investigated here. Using data from Moody's Corporate Bond Default Database, a term structure of default probabilities for different rating classes is constructed each year from 1970 to 2001. Two specifications used for modeling the dynamics of the (risk‐neutral) intensity process in the bond‐pricing literature are then examined empirically: the Ornstein–Uhlenbeck and square‐root cases. The results reveal that the Ornstein–Uhlenbeck case is not an adequate modeling alternative with a rejection of this specification in five out of seven credit classes and nonsignificant mean reverting behavior for all credit classes. The square‐root case obtains better results with four credit classes out of seven for which this specification cannot be rejected and significant mean reversion parameters in many cases. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 29:95–113, 2009     

A regime-switching term structure model with observable state variables

The paper proposes in a regime-shift framework, an arbitrage-free term structure model based on the target and Fed Funds Rates. Empirical observations suggest that a three-state regime-shift environment associated with FOMC monetary actions is justified. Then, a closed-form solution for zero-coupon bonds is derived where regime-shift risk is priced. The solution is flexible enough to incorporate additional state variables.     

Default Risk in Corporate Yield Spreads

An important research question examined in the credit risk literature focuses on the proportion of corporate yield spreads attributed to default risk. This topic is reexamined in light of the different issues associated with the computation of default probabilities obtained from historical default data. We find that the estimated default risk proportion in corporate yield spreads is sensitive to the ex ante estimated term structure of default probabilities used as inputs. This proportion can become a large fraction of the spread when sensitivity analyses are made with respect to the period over which the probabilities are estimated and the recovery rates.     

Who are Advisory Services Leaving Out? A Critical Reflection on ‘Hard to Reach’ Farmers

Although the Common Agricultural Policy of the European Union has broadened its objectives to integrate social issues, several hard-to-reach groups of farmers and workers continue to be ignored by advisory services and associated policies. Connecting with these groups has a strong potential to increase the economic and social cohesion of European agricultures. We interviewed over 1,000 farmers across Europe and identified features of these groups that are often overlooked by advisory services. We critically reflected on the social cohorts omitted from advisory services and how they could be better reached; they include farm labourers, new entrants or ‘career changers’, and later adopters. We clarify the different types of advisors in the advisory landscape, distinguishing between those who are linked to or independent from sales of inputs or technologies. We make concrete recommendations about how to engage advisors with hard-to-reach groups, with approaches suited to different national contexts of Agricultural Knowledge and Innovation Systems (AKIS); thus contributing to the ‘AKIS dimension of National Strategic Plans of the next Common Agricultural Policy, 2023–2027. We argue for the more effective use of advances in the social sciences through a better understanding of advice as social interaction which can bolster the inclusiveness of public policies.     

A Bi-Directional Examination of the Relationship Between Corporate Social Responsibility Ratings and Company Financial Performance in the European Context

Research focusing on the relationship between measures of Corporate Social Responsibility (CSR) and company financial performance has led to mixed results in the North American context. In addition, the ethical attitudes and approaches toward CSR investments of both companies and rating agencies are not necessarily the same in Europe and the United States. In this study, we use CSR ratings issued by a major European CSR ratings agency (Vigeo) to examine in a bi-directional manner the relationships between CSR ratings and financial performance in the European context. By bi-directional, we mean an examination of the relationship between prior CSR ratings and subsequent accounting and financial performance and reciprocally, the impact of accounting and financial performance of year N ? 1 on CSR ratings of year N. Our principal findings are: (1) the greater the market capitalization of a company, the higher the Vigeo rating, (2) the higher the risk of the company, the lower the Vigeo rating, and (3) the greater the stock market return of a company, the lower the Vigeo rating. Based on these findings, we propose (1) a concept of “political visibility” pursuant to which enterprises of a greater size are exposed to greater pressure to conform to norms of socially acceptable behavior, (2) a concept of “priorities” in which enterprises that have resolved their most urgent financial needs have a greater ability to invest in CSR, (3) a concept of “rating downgrading” which reveals the sanctioning role of the rating agency from an ethical standpoint.     

How Does Investor Sentiment Affect Stock Market Crises? Evidence from Panel Data

We test the impact of investor sentiment on a panel of international stock markets. Specifically, we examine the influence of investor sentiment on the probability of stock market crises. We find that investor sentiment increases the probability of occurrence of stock market crises within a one‐year horizon. The impact of investor sentiment on stock markets is more pronounced in countries that are culturally more prone to herd‐like behavior, overreaction and low institutional involvement.     

Environmental and Business Communities of Practice: Graduate Students Comparing Community‐Relevant Language

The theory of communities of practice has found much acceptance in the organizational and social sciences literature. Although applied frequently to assess or explain phenomena, it has seen little research to identify the presence of barriers between communities of practice, or even just differences between such entities. Using members of the environmental and business communities, the following study identifies different communities of practice based on their linguistic repertoire. It also shows that members of one community can identify the linguistic content of another community's linguistic repertoire, with attention to business and environmental management. The research not only offers credence to the theory of communities of practice based on their linguistic repertoire, but it also offers avenues for further research in the use of language as a means of identity and segregation in various forms of institutional contexts. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.