Has the CSR engagement of electrical companies had an effect on their performance? A closer look at the environment

Even though electrical companies attain a top ranking in the publication of CSR reports, they are often accused of 'green‐washing' due to their bad environmental reputation. The current economic crisis is testing their real CSR commitment more than ever, especially when this goes beyond its economic consequences. Based on a worldwide sample of electrical companies, we are going to study why companies are being socially responsible. We wish to know if it is due to the impact on the firms' performance or whether there are other motives (legitimation, improving their reputation) that lead companies to carry out these practices. We will also consider if it changes across the kind of CSR action considered. The results show that there is an economic justification beyond the socially responsible behaviour of the electrical companies. Additionally, most kinds of CSR action (community, diversity, corporate governance, product responsibility) are also carried out looking for economic rewards. However, the CSR actions oriented to the environment are mainly motivated by their need to improve their image and reverse their negative impact. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Ranking Crop Yield Models: A Comment

This comment discusses key specification issues that may have affected the performance and, therefore, the ranking of parametric models that were compared in a recent AJAE article. A procedure to obtain the most flexible parametric model specification possible, given the particular probability distribution function on which the model is based is presented. These specifications also allow for standardized and, therefore, more valid comparisons across parametric models that are based on different probability distributions. Finally, the comment cautions against generalization of the rankings in that AJAE article and recommends that these more flexible specifications be adopted in future comparisons and applications.     

Stochastic covariance and dimension reduction in the pricing of basket options

This paper presents a tailor-made method for dimension reduction aimed at approximating the price of basket options in the context of stochastic volatility and stochastic correlation. The methodology is built on a modification to the Principal Component Stochastic Volatility (PCSV) model, a stochastic covariance model that accounts for most stylized facts in prices. The method to reduce dimension is first derived theoretically. Afterwards the results are applied to a multivariate lognormal context as a special case of the PCSV model. Finally empirical results for the application of the method to the general PCSV model are illustrated.     

Towards the global adoption of XBRL using International Financial Reporting Standards (IFRS)

XBRL is a language based on XML for the electronic communication of business information. It is designed to improve the exchange, aggregation and analysis of corporate data requiring disclosure, through a unique tagging structure that provides interoperability. But, the proliferation of a multitude of XBRL taxonomies, based on different accounting principles, can risk the objectives of standardization, comparability and re-usability of the information that is sought with XBRL. It is therefore essential to develop global accounting standards as a unique foundation on which the XBRL taxonomies can be established, so that it becomes possible to compare the financial information originating from various countries. Along these lines, the International Financial Reporting Standards (IFRS-GP) taxonomy was created to establish a common ground for international firms and create a platform that would enhance the benefits of XBRL. This paper examines whether the IFRS-GP taxonomy, at its current state, adequately covers European companies' dissemination practices and strengthens the benefits of XBRL. Our results provide implications for the evaluation of the effectiveness of the IFRS-GP taxonomy and shed light on directions that may lead to the improvement of this taxonomy.     

Female Leadership and Organizational Climate in a University Institute

This paper addresses the case of the Professional Institute of the Southern Region （IPRES）, an institute of higher education in the State University of Morelos, with the aim of showing the measurement results of organizational climate before and after the change of the principal to know some internal features and describe the organizational climate of workers＇ perception in a transition stage; besides, the influence of the current director＇s leadership is analyzed in the achievement of organizational goals and how the perception of organizational climate or working environment can be affected by female leadership is also dealt with. In Mexico, there are more and more women running various organizations, including those belonging to the field of education, and universities are no exception. On the other hand, the type of leadership being exercised can promote or hinder the proper performance of the institute and may be a factor of distinction and influence the behavior of those who integrate it; therefore, knowing how it works provides feedback about the processes that determine organizational behavior and the working environment.     

The role of FDI in structural change: Evidence from Mexico

Foreign direct investment (FDI) flows to Mexico are substantial and play an important role in the Mexican economy since the mid-1990s. These investments reflect the activities of multinational firms that shape to some extent the economic landscape and sectoral structure in this host country. We illustrate that there is considerable variation in the amounts of FDI and structural change within the country and across time. Based on this, the paper's main purpose is to analyse whether there is a significant impact of FDI on structural change. We conduct an empirical analysis covering the period 2006–16. We use the fixed-effects estimator where the unit of observation is a Mexican state for which we calculate structural change from the reallocation of labour between sectors. The results suggest that (if any) there is a positive effect from FDI on growth-enhancing structural change. This effect depends critically on the lag structure of FDI. Moreover, there is some evidence that the positive effect (a) arises from FDI flows in the industry sector and (b) is present for medium and low-skilled labour reallocation.     

The bias of the least squares estimator over interval constraints

We show that the interval constrained least squares estimator for a regression model is in general bias. The bias and some of its properties are given when the regression residuals are normally distributed.     

A multivariate stochastic volatility model with applications in the foreign exchange market

The main objective of this paper is to study the behavior of a daily calibration of a multivariate stochastic volatility model, namely the principal component stochastic volatility (PCSV) model, to market data of plain vanilla options on foreign exchange rates. To this end, a general setting describing a foreign exchange market is introduced. Two adequate models—PCSV and a simpler multivariate Heston model—are adjusted to suit the foreign exchange setting. For both models, characteristic functions are found which allow for an almost instantaneous calculation of option prices using Fourier techniques. After presenting the general calibration procedure, both the multivariate Heston and the PCSV models are calibrated to a time series of option data on three exchange rates—USD-SEK, EUR-SEK, and EUR-USD—spanning more than 11 years. Finally, the benefits of the PCSV model which we find to be superior to the multivariate extension of the Heston model in replicating the dynamics of these options are highlighted.