A multiobjective decision support system for multiresource forest management

A multiobjective and/or multiperson decision support system for analyzing multiresource forest management problems is developed in this paper. The procedure includes formulating the problem in a multiobjective and group decision making framework, and solving it using two solution techniques which consist of a distance-based compromise programming (CP) and a cooperative game theoretic approach of the Nash equilibrium type. The problem consists of five forest resources management objective functions to be maximized. Solving the problem using the two solution techniques enables determining a satisfactory compromise solution of the five forest resource management objectives. Sensitivity analysis of the two techniques shows compromise programming to be more sensitive to changes in the weight and the p-parameter of the technique while the cooperative game theoretic approach is relatively robust with respect to changes in the worst utility set.     

Profitability and opportunity of conservation agriculture in acid savannah grasslands of Laos

In north-eastern Laos, the savannah grasslands of the Plain of Jars cover vast areas of potentially cultivable land. However, soil acidity, low inherent fertility, and the absence of alternatives to tillage represent significant constraints to the development of sustainable smallholder agriculture. Our objective was to evaluate the potential for conservation agriculture (CA) to enhance soil productivity and farming system profitability. A three-year rotation of rice/maize/soybean was tested under three fertilization levels and four agricultural systems: one conventional tillage-based (CT) system and three CA systems based on no-tillage with cover crops. After four cropping seasons, our results show that, compared with CT, CA systems led to similar-to-higher grain production, similar-to-higher profits, higher opportunity of livestock system intensification, and higher labour productivity regardless of fertilization levels. While CA represents a relevant alternative to current practices, our results suggest that its contribution to the emergence of a sustainable smallholder agriculture is conditioned by broader institutional transformations, including the enrolment of local manufacturers and traders for deploying no-till implements and seed market channels for cover crops, long-term public support to maintain active research and technical mentoring to farmers, and possibly the integration of ecosystem services in agricultural policy.     

Optimal Sure Portfolio Plans

This paper is a sequel to the author's "Certainty Equivalence in the Continuous-Time Portfolio-cum-Saving Model" in Applied Stochastic Analysis (eds. M. H. A. Davis and R. J. Elliot), where a model of optimal accumulation of capital and portfolio choice over an infinite horizon in continuous time was considered in which the vector process representing returns to investment is a general semimartingale with independent increments and the welfare functional has the discounted constant relative risk aversion (CRRA) form. A problem of optimal choice of a sure (i.e., nonrandom portfolio plan can be defined in such a way that solutions of this problem correspond to solutions of optimal choice of a portfolio-cum-saving plan, provided that the distant future is sufficiently discounted. This has been proved in the earlier paper, and is in part proved again here by different methods. Using the canonical representation of a PII-semimartingale, a formula of Lévy-Khinchin type is derived for the bilateral Laplace transform of the compound interest process generated by a sure portfolio plan. With its aid. the existence of an optimal sure portfolio plan is proved under suitable conditions, and various causes of nonexistence are identified. Programming conditions characterizing an optimal sure portfolio plan are also obtained.     

Are Investors Sensitive to the Quality and the Disclosure of Financial Statements?

This paper investigates the influence of Swiss firms' disclosurepolicy and of their financial analysts' coverage on stock priceabnormal reactions to the publication of the annual reports.It first shows that, after controlling for the number of analysts,the absolute abnormal returns are significantly and positivelyaffected by the rating measure used as a proxy of the informationalquality of annual reports. It furthermore emphasises asymmetryin the relationship between stock price abnormal reactions andtwo informational variables, namely the quality of the firm'sdisclosure policy and its financial analysts' coverage. It appearsthat while positive abnormal returns are significantly and positivelyrelated to the rating variable, negative abnormal returns areonly affected by the number of financial analysts. The inverserelationship between abnormal negative returns and the financialanalysts' coverage supports the fact that competition amonganalysts reduces investors' adverse selection problem. Finally,the study evidences a non-linear relationship between ratingand positive abnormal returns which is meaningful for the "good"and "very good type" firms and thus emphasises the signalingrole played by a firm's financial disclosure policy.     

Structural modeling, including temporal dimensions as an aid to study complex system governabilities and to foresee unforecastable alternative futures

To describe evolutions of phenomena, we have to design some kind of models of the studied field. Systems analysis offers a possible way in this respect. Structural modeling is the simplest available technique. Very often, structures of the real world are actually complex and not simply hierarchized. Moreover, we have to take into account the time-related dimensions in order to develop more realistic structural models. Thus some mechanical aid is required to explore the intricate mesh of interacting things. We described a coherent set of programs, and the input-output data language is called STRINGDALE (Structural Modeling Data Language, E added for euphony).Complex systems too often cross the threshold of internal instability, which should not prevent defining their governability in accordance with given policies. Here also the help of the computer is very fruitful in searching for internal stresses and conflicts behind their evolution. Last but not least, conservative results are inevitably obtained when studying a system modeled by a steady structure closed on itself. Inherently, a system is comparatively closed on itself, although always interacting with the outside environment. We propose to model this environment by a discrete set of random foreseeable events that affect system evolution when they occur. We show how strategies of governability are modified when taking into account these probabilistic events.     

Are Investors Sensitive to the Quality and the Disclosure of Financial Statements?

This paper investigates the influence of Swiss firms'disclosure policy and of their financial analysts'coverage on stock price abnormal reactions to thepublication of the annual reports. It first showsthat, after controlling for the number of analysts,the absolute abnormal returns are significantly andpositively affected by the rating measure used as aproxy of the informational quality of annual reports.It furthermore emphasises asymmetry in therelationship between stock price abnormal reactionsand two informational variables, namely the quality ofthe firm's disclosure policy and its financialanalysts' coverage. It appears that while positiveabnormal returns are significantly and positivelyrelated to the rating variable, negative abnormalreturns are only affected by the number of financialanalysts. The inverse relationship between abnormalnegative returns and the financial analysts' coveragesupports the fact that competition among analystsreduces investors' adverse selection problem. Finally,the study evidences a non-linear relationship betweenrating and positive abnormal returns which ismeaningful for the ``good' and ``very good type' firmsand thus emphasises the signaling role played by afirm's financial disclosure policy.     

Relationships between corruption,political orientation,and income inequality: evidence from Latin America

This research sheds light on the analysis of the impact of corruption and political orientation on income distribution in Latin America. Although it has been theoretically demonstrated that corruption worsens the income distribution, the empirical evidence has yielded ambiguous results based on biased estimates not considering a measurement error in the estimation of inequality. This article fills this gap by correcting the previous measurement error bias in the fixed-effects estimation. Additionally, political orientation and its relationship with income inequality are also investigated. The sample covers 18 Latin American countries between 1996 and 2012. Results reveal that corruption increases income inequality.     

Are liquidity and corporate control priced by shareholders? Empirical evidence from Swiss dual class shares

Stadard asset pricing models generally exclude corporate control and liquidity considerations as joint explanatory factors of the stock price formation process. This empirical study investigates their influence on Swiss Bearer and Registered share prices issued by the same firm. It is shown that the statistical properties of both shares' returns differ without implying profitable arbitrage opportunities. A multifactor model of the ‘premium’ between Bearer and Registered stock prices is then proposed and tested. The results show that the freely negotiable equity book value, the existence of dominant shareholder positions and ownership transfer regime changes are significant variables in explaining the dual class share price differential.