Is There a Culture of Violence in Colombia?

During the past decade, economic factors have been given a prominent role in explaining political violence. The example of Colombia shows that economic factors can explain the ubiquitous nature of violence in that country only in the context of a socio-culturally rooted propensity to use violence. The study draws on relevant published research to identify evidence of a culture of violence in Colombia and discusses the structural conditions that allow or cause such a culture to arise. It is shown that violence in Colombia cannot be explained without taking into account cultural factors that are in turn dependent on other explanatory factors, including economic ones.

The Impact of the Sarbanes-Oxley Act on the Cost of Going Public

This paper examines the impact of the Sarbanes-Oxley Act (SOX), a legal framework intended to increase transparency and accountability of listed companies, on the cost of going public in the US. We expect SOX to increase the direct cost of going public, but decrease the underpricing because of reduced asymmetric information. Our main results corroborate these hypotheses. First, we find an increase in the cost of going public of 90 bp of gross proceeds. Second, we record a reduction in underpricing of 6 pp, which is related to a reduced offer price adjustment. This supports our hypothesis that SOX represents a mechanism to reduce asymmetric information.