Mechanical resistance properties of gravel used in subsurface flow constructed wetlands: implications for clogging

Gravel constitutes the filter medium in subsurface flow constructed wetlands (SSF CWs) and its porosity and hydraulic conductivity decrease over time (clogging), limiting the lifespan of the systems. Using gravel of poor quality accelerates clogging in wetlands. In this study, gravel samples from six different wetland systems were compared with regards to their mineral composition and mechanical resistance properties. Results showed that both mineralogy and texture are related to mechanical resistance. Accordingly, gravel with high content of quartz (> 80%) showed a lower percentage of broken particles (0.18-1.03%) than those with lower content of quartz (2.42-4.56% media broken). Although granite is formed by high durability minerals, its non-uniform texture results in a lower resistance to abrasion (ca. 10% less resistance than calcareous gravel). Therefore, it is recommended to use gravels composed mainly of quartz or, when it is not available, limestone gravels (rounded and uniform) are recommended instead. The resistance to abrasion (LAA test) seems to be a good indicator to determine the mechanical properties of gravels used in CWs. It is recommended to use gravels with LAA below 30% in order to avoid a rapid clogging due to gravel crumbling and subsequent mineral solids accumulation.     

Deposit insurance and bank risk-taking: Evidence from internal loan ratings

We analyze the effect of deposit insurance on the risk-taking behavior of banks in the context of a quasi-natural experiment using detailed credit registry data. Using the case of an emerging economy, Bolivia, which introduced a deposit insurance system during the sample period, we compare the risk-taking behavior of banks before and after the introduction of this system. We find that in the post-deposit insurance period, banks are more likely to initiate riskier loans (i.e., loans with worse internal ratings at origination). These loans carry higher interest rates and are associated with worse ex-post performance (i.e., they have higher default and delinquency rates). Banks do not seem to compensate for the extra risk by increasing collateral requirements or decreasing loan maturities. We also find evidence that the increase in risk-taking is due to the decrease in market discipline from large depositors. Finally, differences between large (too-big-to-fail) and small banks diminished in the post-deposit insurance period.     

The transition from products to solutions: External business model fit and dynamics

This article provides empirical evidence and contributes to theory building concerning business model fit and dynamics in the area of solutions business. Business models are seen in this context as going beyond considerations such as offerings and internal processes or even relationships, and as including network and market considerations. Indeed the paper highlights the fact that a business model is not firm-focused, nor dyad-focused, but rather network-, and even market-focused, demonstrating that a business model is not static, but dynamic. Manufacturer and customer continuously shift form and content of their respective business models to adapt both to the needs of the counterpart and to market context. A qualitative case study approach is adopted, with subsequent content analysis. The case study relates to the aerospace industry with focus on a complex engineering firm, one of the largest aircraft manufacturers in the world, its customer — a national airline — and their network partners of various kinds. The data were collected through multiple face-to-face interviews with managers in both companies, as a part and parcel of a network of actors that influences and is influenced by the supplier–buyer relationship. Relationships over time between these firms and network partners are described, highlighting the interplay of products and services related to the provision of solutions. Findings highlight the dynamic nature of business models over the relationship lifecycle between supplier and customer in a complex engineering environment, and the need for reciprocal adjustment of models.     

Neither bad apple nor bad barrel: how the societal context impacts unethical behavior in organizations

Every time another corporate scandal captures media headlines, the ‘bad apple vs. bad barrel’ discussion starts anew. Yet this debate overlooks the influence of the broader societal context on organizational behavior. In this article, we argue that misbehaviors of organizations (the ‘barrels’) and their members (the ‘apples’) cannot be addressed properly without a clear understanding of their broader context (the ‘larder’). Whereas previously, a strong societal framework dampened the practical application of the Homo economicus concept (business actors as perfectly rational and egocentric utility‐maximizing agents without any moral concern), specialization, individualization and globalization led to a business world disembedded from broader societal norms. This emancipated business world promotes a literal interpretation of Homo economicus among business organizations and their members. Consequently, we argue that the first step toward ‘healthier’ apples and barrels is to sanitize the larder, that is, adapt the framework in which organizations and their members evolve.     

Real exchange rate and export performance in Argentina, 2002–2008

Between 2002 and 2008, Argentina experienced a phase of very high and sustained economic growth. During this period, macroeconomic policy aimed to preserve a stable and competitive real exchange rate (SCRER). There is controversy on whether the SCRER policy was a key factor fostering growth and, even more, on whether it helped promote the expansion of tradable activities and exports. We use a methodology to detect episodes of export surges among Argentina’s export industries and find that labor-intensive industries—especially low- and medium-technology manufactures—experienced the highest proportion of export surges within this period. We also find that between 1980 and 2015, the highest proportion of surges in total exports occurred during the 2003–8 period. The performance of export of services was also particularly dynamic during this period. This evidence suggests that the SCRER policy was instrumental for export surges in Argentina during 2002–8.     

Bank profitability and macroeconomic conditions: Are business models different?

The paper investigates the impact of macroeconomic conditions on the profitability of EU banks by testing for differential effects according to the business model. We group banks into three business models using a hierarchical cluster analysis and find that using clusters based on the share of assets invested in loans reveals heterogeneity in the sensitivity of bank profitability to economic growth across business models. Our main result is that GDP growth, credit growth, and the risk-free yield curve influence profitability as expected, but we also find that the effect of GDP growth is only significant for banks that have a high and medium share of assets invested in loans, and not for banks that hold large portfolios of securities. This difference depends on the impact of growth on asset write downs, especially those on loans and, to a lesser extent, on revenues. The results suggest that studies relating bank profitability to macroeconomic conditions should take the heterogeneity of business models into account.     

Bank Disclosure and Market Assessment of Financial Fragility: Evidence from Turkish Banks’ Equity Prices

In this paper we explore whether Turkish banks with worsening indicators of financial fragility were subject to market monitoring during the years leading to the 2000/2001 crisis, and how the quality and timeliness of the disclosure affect market reaction. We find that shareholders reacted negatively to indicators of financial fragility such as increases in maturity mismatches, currency mismatches, and non-performing loans, showing shareholders’ concerns about the impact of financial fragility indicators on future profits. We also find that audited statements that show larger reporting lags, are not informative, pointing to the need of improving their timeliness. Finally, our study suggests that the finding that securities prices react to financial fragility indicators should not be taken as sufficient evidence of banks’ safety and soundness.     

Managing Legitimacy in Complex and Heterogeneous Environments: Sustainable Development in a Globalized World

The sustainability problems with regard to the production, distribution, and consumption of goods and services increasingly challenge the legitimacy of corporations. The literature distinguishes three strategies that corporations commonly employ to respond to legitimacy problems: adapt to external expectations, manipulate the perception of their stakeholders, or engage in a discourse with those who question their legitimacy. We discuss three approaches to determine the appropriate response strategy: one‐best‐way approach, contingency approach, and paradox approach. We argue that in the face of heterogeneous environments with conflicting demands, corporations that follow a paradox approach are likely to be more successful in preserving their legitimacy than those that adopt one of the other two approaches. We develop a theoretical framework for the application of different response strategies and explore the management of paradoxes by way of structural, contextual, or reflective means.     

Resting cladoceran eggs and their contribution to zooplankton diversity in a lagoon of the Upper Paraná River floodplain

Zooplankton produce resting eggs and diapause stages as strategies to promote their survival during periods of adverse environmental conditions, thereby ensuring the community diversity. The goal of this study is to investigate the contribution of these eggs, which were present in the sediment of an isolated lagoon in the Upper Paraná River floodplain, to cladoceran diversity. The species hatching from the resting eggs in the sediment do not occur in the plankton. Sediment samples were collected at six sampling sites in the Osmar Lagoon banks, in September 2004 and June, July, August and September 2005. Zooplankton were sampled in the pelagic region, using a motorized pump (1000 L) and plankton net (68 µm). The pH, water temperature (°C), electrical conductivity (µS cm⁻¹) and dissolved oxygen concentration (mg L⁻¹) also were measured. The resting eggs were counted in the laboratory, being maintained under constant temperature and photoperiod until their analyses. The resting eggs were examined daily until hatching. A higher abundance of these eggs was observed in July, during a period of lower temperature and electrical conductivity, and higher pH and dissolved oxygen concentrations. ANOVA results indicated significant differences in resting egg abundance among the sampling months. Ceriodaphnia reticulata, Macrothrix spinosa, Ilyocryptus spinifer, Ephemeroporus tridentatus and Diaphanosoma sp. hatched from the resting eggs, although they were not observed in the plankton samples. C. reticulata was observed for the first time in this floodplain, with these study results corroborating the hypothesis that resting cladoceran eggs do contribute to zooplankton diversity in the lagoon.