Essays on Corporate Governance and the Quality of Disclosed Earnings: Across Transitional Europe

A growing body of empirical research examines the structure and effectiveness of corporate governance systems around the world. An important insight from this literature is that corporate governance mechanisms address the excessive use of managerial discretionary powers to get private benefits by expropriating the value of shareholders. One possible way of expropriation is to reduce the quality of disclosed earnings by manipulating the financial statements. This lower quality of earnings should then be reflected by the stock price of firm according to value relevance theorem. Hence, instead of testing the direct effect of corporate governance on the firm’s market value, it is important to understand the causes of the lower quality of accounting earnings. This thesis contributes to the literature by increasing knowledge about the extent of the earnings management – measured as the extent of discretionary accruals in total disclosed earnings - and its determinants across the Transitional European countries. The thesis comprises of three essays of empirical analysis of which first two utilize the data of Russian listed firms whereas the third essay uses data from 10 European economies. More specifically, the first essay adds to existing research connecting earnings management to corporate governance. It testifies the impact of the Russian corporate governance reforms of 2002 on the quality of disclosed earnings in all publicly listed firms. This essay provides empirical evidence of the fact that the desired impact of reforms is not fully substantiated in Russia without proper enforcement. Instead, firm-level factors such as long-term capital investments and compliance with International financial reporting standards (IFRS) determine the quality of the earnings. The result presented in the essay support the notion proposed by Leuz et al. (2003) that the reforms aimed to bring transparency do not correspond to desired results in economies where investor protection is lower and legal enforcement is weak. The second essay focuses on the relationship between the internal-control mechanism such as the types and levels of ownership and the quality of disclosed earnings in Russia. The empirical analysis shows that the controlling shareholders in Russia use their powers to manipulate the reported performance in order to get private benefits of control. Comparatively, firms owned by the State have significantly better quality of disclosed earnings than other controllers such as oligarchs and foreign corporations. Interestingly, market performance of firms controlled by either State or oligarchs is better than widely held firms. The third essay provides useful evidence on the fact that both ownership structures and economic characteristics are important factors in determining the quality of disclosed earnings in three groups of countries in Europe. Evidence suggests that ownership structure is a more important determinant in developed and transparent countries, while economic determinants are important determinants in developing and transitional countries.

The role of sustainable agriculture and renewable-resource management in reducing greenhouse-gas emissions and increasing sinks in China and India

This paper contains an analysis of the technical options in agriculture for reducing greenhouse-gas emissions and increasing sinks, arising from three distinct mechanisms: (i) increasing carbon sinks in soil organic matter and above-ground biomass; (ii) avoiding carbon emissions from farms by reducing direct and indirect energy use; and (iii) increasing renewable-energy production from biomass that either substitutes for consumption of fossil fuels or replaces inefficient burning of fuelwood or crop residues, and so avoids carbon emissions, together with use of biogas digesters and improved cookstoves. We then review best-practice sustainable agriculture and renewable-resource-management projects and initiatives in China and India, and analyse the annual net sinks being created by these projects, and the potential market value of the carbon sequestered. We conclude with a summary of the policy and institutional conditions and reforms required for adoption of best sustainability practice in the agricultural sector to achieve the desired reductions in emissions and increases in sinks. A review of 40 sustainable agriculture and renewable-resource-management projects in China and India under the three mechanisms estimated a carbon mitigation potential of 64.8 MtC yr(-1) from 5.5 Mha. The potential income for carbon mitigation is $324 million at $5 per tonne of carbon. The potential exists to increase this by orders of magnitude, and so contribute significantly to greenhouse-gas abatement. Most agricultural mitigation options also provide several ancillary benefits. However, there are many technical, financial, policy, legal and institutional barriers to overcome.

Repercusión económica de la certificación medioambiental ISO 14001

Este trabajo ha sido realizado bajo el marco de objetivos del Grupo de Investigación de Excelencia CREVALOR reconocido por la Diputación General de Aragón.

Tropical river fisheries valuation: background papers to a global synthesis

This report is a compilation of five regional reviews that document the global status of tropical rivers and inland fisheries in three continents: Latin America, Africa and Asia. It explores the role of ‘valuation’ methods and their contribution to policy-making and river fishery management. From the compilation, the best estimate of the global value of inland fisheries for those three continents is US$ 5.58 billion (gross market value), which is equivalent to 19 percent of the current value of annual fish exports from developing countries (US$ 29 billion) for 2004. The compilation shows that there is a general shortage of information on inland fisheries, especially derived from conventional economic valuation methods, though information from economic impact assessment methods and socio-economic and livelihood analysis methods is more widely available. The status of knowledge about the impact of changes in river management on the value of tropical river fisheries is weak and patchy. Although the impacts of large dams on the hydrology, ecology and livelihood support attributes of tropical rivers are well-recognized, there have been only few valuation studies of these issues. The document highlights the need for further valuation studies of tropical river and inland fisheries in developing countries. It underlines how vital it is for policy-makers and other stakeholders to understand the importance of these natural resources in order to make appropriate decisions concerning their role in development policy and illustrates why capacity building in valuation should become a major priority for agencies concerned with fisheries management and policy-making.

The Annual Economic Survey of Federal Gulf Shrimp Permit Holders: Report on the Design, Implementation, and Descriptive Results for 2006

This technical memorandum documents the design, implementation, data preparation, and descriptive results for the 2006 Annual Economic Survey of Federal Gulf Shrimp Permit Holders. The data collection was designed by the NOAA Fisheries Southeast Fisheries Science Center Social Science Research Group to track the financial and economic status and performance by vessels holding a federal moratorium permit for harvesting shrimp in the Gulf of Mexico. A two page, self-administered mail survey collected total annual costs broken out into seven categories and auxiliary economic data. In May 2007, 580 vessels were randomly selected, stratified by state, from a preliminary population of 1,709 vessels with federal permits to shrimp in offshore waters of the Gulf of Mexico. The survey was implemented during the rest of 2007. After many reminder and verification phone calls, 509 surveys were deemed complete, for an ineligibility-adjusted response rate of 90.7%. The linking of each individual vessel’s cost data to its revenue data from a different data collection was imperfect, and hence the final number of observations used in the analyses is 484. Based on various measures and tests of validity throughout the technical memorandum, the quality of the data is high. The results are presented in a standardized table format, linking vessel characteristics and operations to simple balance sheet, cash flow, and income statements. In the text, results are discussed for the total fleet, the Gulf shrimp fleet, the active Gulf shrimp fleet, and the inactive Gulf shrimp fleet. Additional results for shrimp vessels grouped by state, by vessel characteristics, by landings volume, and by ownership structure are available in the appendices. The general conclusion of this report is that the financial and economic situation is bleak for the average vessels in most of the categories that were evaluated. With few exceptions, cash flow for the average vessel is positive while the net revenue from operations and the “profit” are negative. With negative net revenue from operations, the economic return for average shrimp vessels is less than zero. Only with the help of government payments does the average owner just about break even. In the short-term, this will discourage any new investments in the industry. The financial situation in 2006, especially if it endures over multiple years, also is economically unsustainable for the average established business. Vessels in the active and inactive Gulf shrimp fleet are, on average, 69 feet long, weigh 105 gross tons, are powered by 505 hp motor(s), and are 23 years old. Three-quarters of the vessels have steel hulls and 59% use a freezer for refrigeration. The average market value of these vessels was $175,149 in 2006, about a hundred-thousand dollars less than the average original purchase price. The outstanding loans averaged $91,955, leading to an average owner equity of $83,194. Based on the sample, 85% of the federally permitted Gulf shrimp fleet was actively shrimping in 2006. Of these 386 active Gulf shrimp vessels, just under half (46%) were owner-operated. On average, these vessels burned 52,931 gallons of fuel, landed 101,268 pounds of shrimp, and received $2.47 per pound of shrimp. Non-shrimp landings added less than 1% to cash flow, indicating that the federal Gulf shrimp fishery is very specialized. The average total cash outflow was $243,415 of which $108,775 was due to fuel expenses alone. The expenses for hired crew and captains were on average $54,866 which indicates the importance of the industry as a source of wage income. The resulting average net cash flow is $16,225 but has a large standard deviation. For the population of active Gulf shrimp vessels we can state with 95% certainty that the average net cash flow was between $9,500 and $23,000 in 2006. The median net cash flow was $11,843. Based on the income statement for active Gulf shrimp vessels, the average fixed costs accounted for just under a quarter of operating expenses (23.1%), labor costs for just over a quarter (25.3%), and the non-labor variable costs for just over half (51.6%). The fuel costs alone accounted for 42.9% of total operating expenses in 2006. It should be noted that the labor cost category in the income statement includes both the actual cash payments to hired labor and an estimate of the opportunity cost of owner-operators’ time spent as captain. The average labor contribution (as captain) of an owner-operator is estimated at about $19,800. The average net revenue from operations is negative $7,429, and is statistically different and less than zero in spite of a large standard deviation. The economic return to Gulf shrimping is negative 4%. Including non-operating activities, foremost an average government payment of $13,662, leads to an average loss before taxes of $907 for the vessel owners. The confidence interval of this value straddles zero, so we cannot reject, with 95% certainty, that the population average is zero. The average inactive Gulf shrimp vessel is generally of a smaller scale than the average active vessel. Inactive vessels are physically smaller, are valued much lower, and are less dependent on loans. Fixed costs account for nearly three quarters of the total operating expenses of $11,926, and only 6% of these vessels have hull insurance. With an average net cash flow of negative $7,537, the inactive Gulf shrimp fleet has a major liquidity problem. On average, net revenue from operations is negative $11,396, which amounts to a negative 15% economic return, and owners lose $9,381 on their vessels before taxes. To sustain such losses and especially to survive the negative cash flow, many of the owners must be subsidizing their shrimp vessels with the help of other income or wealth sources or are drawing down their equity. Active Gulf shrimp vessels in all states but Texas exhibited negative returns. The Alabama and Mississippi fleets have the highest assets (vessel values), on average, yet they generate zero cash flow and negative $32,224 net revenue from operations. Due to their high (loan) leverage ratio the negative 11% economic return is amplified into a negative 21% return on equity. In contrast, for Texas vessels, which actually have the highest leverage ratio among the states, a 1% economic return is amplified into a 13% return on equity. From a financial perspective, the average Florida and Louisiana vessels conform roughly to the overall average of the active Gulf shrimp fleet. It should be noted that these results are averages and hence hide the variation that clearly exists within all fleets and all categories. Although the financial situation for the average vessel is bleak, some vessels are profitable. (PDF contains 101 pages)

Um estudo sobre a relação entre ações preferenciais e valor de mercado das empresas brasileiras de capital aberto

O mercado de capitais brasileiro se caracteriza pela alta concentração de poder nas mãos de poucos acionistas controladores. No Brasil, a existência de ações preferenciais sem direito a voto enseja o surgimento de conflito de agência entre acionistas controladores e acionistas minoritários, agravado pelo fato de que o controle pode ser exercido com uma participação relativamente pequena sobre o total de ações emitidas pelas companhias. A concentração de propriedade permitiria a possibilidade de expropriação dos direitos dos minoritários. Diversos estudos empíricos vêm sendo realizados ao longo dos últimos anos com o objetivo de avaliar a influência da estrutura de propriedade das ações sobre o valor de mercado das companhias. Nesse contexto, o presente trabalho pretende trazer novas contribuições, com ênfase na participação de ações preferenciais na estrutura de propriedade. Neste trabalho, usando uma amostra de empresas de capital aberto negociadas na BM&FBOVESPA, a partir de teste de diferença de médias, rejeita-se a hipótese de igualdade de valor entre empresas que só possuem ações ON em sua estrutura de propriedade, em relação às que possuem ambos os tipos, ON e PN. Em continuidade, usando modelos de regressão linear, encontra-se relação negativa estatisticamente significativa entre valor de mercado das empresas e variável utilizada para caracterizar a estrutura de propriedade, especificamente, a diferença entre o percentual de participação dos acionistas não controladores no total de ações PN e o percentual de participação dos acionistas controladores no total de ações PN.

Fatores Condicionantes do Valor de Mercado das Empresas Negociadas na BM&FBOVESPA

Um dos temas mais estudados na área de finanças corporativas é a determinação de fatores que influenciem o valor de mercado das companhias. Outro tema, também bastante comum, é a relação entre proprietários e agentes. Ambas as questões se entrelaçam porque, em tese, agentes podem orientar suas decisões em benefício próprio, contrariando os interesses dos proprietários, o que, em última análise, impactaria negativamente no valor das empresas. No Brasil, face às características próprias de controle e propriedade das companhias, o conflito de interesses passa a englobar também as relações entre controladores e minoritários. Uma rápida análise da literatura existente irá constatar que são muitas as variáveis consideradas. A tentativa de tratá-las num único modelo esbarra nas correlações muito elevadas que as referidas variáveis possuem entre si. Este estudo pretendeu lançar um novo olhar sobre o problema, utilizando Análise Fatorial para contornar estas dificuldades. Partindo de uma amostra com 114 empresas, foi possível identificar dois fatores aos quais se relacionam as nove variáveis consideradas no trabalho. Os fatores, nomeados Negociabilidade e Governança Corporativa, respondem por mais de 2/3 da variabilidade dos dados. As coordenadas dos fatores, divididas em altas e baixas, combinadas em pares, permitiu a caracterização de quatro quadrantes, pelos quais as empresas se distribuem. Através da utilização de teste não paramétrico de diferenças de médias, foi possível rejeitar a hipótese nula de igualdade do valor médio de mercado das empresas entre os quatro quadrantes. Os resultados encontrados são explicados pelos valores assumidos pelas variáveis para as empresas de cada quadrante.

Los grupos de empresas en los sectores y subsectores cotizados: la banca y cajas de ahorro

El sector Bancario y de Caja de Ahorros está compuesto por diversas entidades, y la mayoría son entidades cotizadas, pero mucha de estas entidades forman entre si grupos financieros o también denominados conglomerados financieros. Un conglomerado financiero existe cuando un grupo de compañías controladas por la misma entidad, las actividades de las entidades que lo forman se encuentran en el área financiera, pero hay al menos dos actividades distintas dentro el entrono financiero. Una vez que hemos delimitado el tipo de grupo empresarial que tenemos, pasamos a realizar un análisis fundamental, elemento que permite determinar el valor de la empresa. Usamos ratio tales como el ratio PER (Price Earning Ratio), el BPA (Beneficio Por Accion) o el Precio/Cash-Flow que nos permite emitir un valor de cotización. En España, encontramos 3 principales grupos financieros, estos son el BBVA, el Santander y CaixaBank, los cuales tienen valores de cotización distintos, mostrándonos que el BBVA, por cotización, es el mejor grupo financiero español. Mientras que si hubiésemos hecho un análisis contable, diríamos que el mejor sería el grupo Santander. Lo cual nos lleva a hacer una apreciación general, no tiene porque basarte solo en la información contable, sino que hay que tener también en cuenta elementos externos que puedan afectarnos. Trabajo realizado en Castellano.

How much does the fishery at Apo Island benefit from spillover of adult fish from the adjacent marine reserve?

The contribution of the no-take marine reserve at Apo Island, Philippines, to local fishery yield through “spillover” (net export of adult fish) was estimated. Spatial patterns of fishing effort, yield, and catch rates around Apo Island were documented daily in 2003−2004. Catch rates were higher near the reserve (by a factor of 1.1 to 2.0), but fishing effort was often lowest there. Higher catch rates near the reserve were more likely due to spillover than to low fishing intensity. Lower fishing effort near the reserve may have been due to 1) weather patterns, 2) traditional importance of other fishing grounds, 3) high variability in catch rates, 4) lower market value of target species, and 5) social pressures. The yield taken near the reserve was only 10% of the total yield, but the actual spillover contribution was probably much less than this. This study is one of the few to estimate the spillover contribution to overall yield and to document the responses of fishermen to spil

Gear modifications for fishing octopus, Octopus vulgaris, on live-bottom and adjacent flat bottom habitats in coastal waters off North Carolina

The Common Octopus, Octopus vulgaris, is an r-selected mollusk found off the coast of North Carolina that interests commercial fishermen because of its market value and the cost-effectiveness of unbaited pots that can catch it. This study sought to: 1) determine those gear and environmental factors that influenced catch rates of octopi, and 2) evaluate the feasibility of small-scale commercial operations for this species. Pots were fished from August 2010 through September 2011 set in strings over hard and sandy bottom in waters from 18 to 30 m deep in Onslow Bay, N.C. Three pot types were fished in each string; octopus pots with- and without lids, and conch pots. Proportional catch was modeled as a function of gear design and environmental factors (location, soak time, bottom type, and sea surface water temperature) using binomially distributed generalized linear models (GLM’s); parsimony of each GLM was assessed with Akaike Information Criteria (AIC). A total of 229 octopi were caught throughout the study. Pots with lids, pots without lids, and conch pots caught an average of 0.15, 0.17, and 0.11 octopi, respectively, with high variability in catch rates for each pot type. The GLM that best fit the data described proportional catch as a function of sea surface temperature, soak time, and station; greatest proportional catches occurred over short soak times, warmest temperatures, and less well known reef areas. Due to operating expenses (fuel, crew time, and maintenance), low catch rates of octopi, and high gear loss, a directed fishery for this species is not economically feasible at the catch rates found in this study. The model fitting to determine factors most influential on catch rates should help fishermen determine seasons and gear soak times that are likely to maximize catch rates. Potting for octopi may be commercially practical as a supplemental activity when targeting demersal fish species that are found in similar habitats and depth ranges in coastal waters off North Carolina.

Ecological and economic consequences of hypoxia: Topic 2 Report for the Integrated Assessment on Hypoxia in the Gulf of Mexico

In this report we have attempted to evaluate the ecological and economic consequences of hypoxia in the northern Gulf of Mexico. Although our initial approach was to rely on published accounts, we quickly realized that the body of published literature deahng with hypoxia was limited, and we would have to conduct our own exploratory analysis of existing Gulf data, or rely on published accounts from other systems to infer possible or potential effects of hypoxia. For the economic analysis, we developed a conceptual model of how hypoxia-related impacts could affect fisheries. Our model included both supply and demand components. The supply model had two components: (1) a physical production function for fish or shrimp, and (2) the cost of fishing. If hypoxia causes the cost of a unit of fishing effort to change, then this will result in a shift in supply. The demand model considered how hypoxia might affect the quality of landed fish or shrimp. In particular, the market value per pound is lower for small shrimp than for large shrimp. Given the limitations of the ecological assessment, the shallow continental shelf area affected by hypoxia does show signs of hypoxia-related stress. While current ecological conditions are a response to a variety of stressors, the effects of hypoxia are most obvious in the benthos that experience mortality, elimination of larger long-lived species, and a shifting of productivity to nonhypoxic periods (energy pulsing). What is not known is whether hypoxia leads to higher productivity during productive periods, or simply to a reduction of productivity during oxygen-stressed periods. The economic assessment based on fisheries data, however, failed to detect effects attributable to hypoxia. Overall, fisheries landings statistics for at least the last few decades have been relatively constant. The failure to identify clear hypoxic effects in the fisheries statistics does not necessarily mean that they are absent. There are several possibilities: (1) hypoxic effects are small relative to the overall variability in the data sets evaluated; (2) the data and the power of the analyses are not adequate; and (3) currently there are no hypoxic effects on fisheries. Lack of identified hypoxic effects in available fisheries data does not imply that effects would not occur should conditions worsen. Experience with other hypoxic zones around the globe shows that both ecological and fisheries effects become progressively more severe as hypoxia increases. Several large systems around the globe have suffered serious ecological and economic consequences from seasonal summertime hypoxia; most notable are the Kattegat and Black Sea. The consequences range from localized loss of catch and recruitment failure to complete system-wide loss of fishery species. If experiences in other systems are applicable to the Gulf of Mexico, then in the face of worsening hypoxic conditions, at some point fisheries and other species will decline, perhaps precipitously.

Impact of hatchery releases on the recreational fishery for Pacific threadfin (Polydactylus sexfilis) in Hawaii

The Pacific threadfin (Polydactylus sexfilis) is considered one of the premier Hawaiian food fishes but even with catch limits, seasonal closures, and size limits, catches have declined dramatically since the 1960s. It was identified as the top candidate species for stock enhancement in Hawaii, based on the decline in stocks, high market value, and importance of the fishery. In the stock enhancement program for Pacific threadfin, over 430,000 fingerlings of various sizes were implanted with coded wire tags and released in nursery habitats along the windward coast of Oahu between 1993 and 1998. Because few Pacific threadfin were present in creel surveys conducted between 1994 and 1998, Oahu fishermen were offered a $10 reward for each threadfin that was caught (for both hatchery-reared and wild fish). A total of 1882 Pacific threadfin were recovered from the reward program between March 1998 and May 1999, including 163 hatchery-reared fish, an overall contribution of 8.7% to the fishery. Hatchery-reared fish accounted for as high as 71% of returns in the release areas. Hatchery-reared fish were recovered on average 11.5 km (SD=9.8 km) from the release site, although some had moved as far away as 42 km. Average age for recovered hatchery-reared fish was 495 days; the oldest was 1021 days. Cultured Pacific threadfin juveniles survived and recruited successfully to the recreational fishery, accounting for 10% of fishermen’s catches on the windward side of Oahu. Recruitment to the fishery was highest for the 1997 release year; few juveniles from earlier releases were observed. Presence of a few large, fully developed females in the recreational fishery suggested that hatchery-reared fish can survive, grow, and reproductively contribute to the population. Implementation of an enhancement program that is focused on juveniles and perhaps large females, as part of an integrated fishery management strategy, could speed the recovery of this fish population.

On acid sulfate soils of the coastal aquaculture ponds of Bangladesh

With the stimulus of the very high international market value of penaeid shrimp, new pond areas for shrimp farming are rapidly being added in Bangladesh. Unfortunately, this expansion is occurring with the loss of some natural mangrove forests and with soils and sediments that are far from ideal for aquaculture. In this study, two representative shrimp farming areas were surveyed and pH, in profile depth, was recorded. It was found that the shrimp farming areas of the Chakaria Sundarban are more acidic than those of the Khulna-Satkhira region due to the acid sulfate soils.

Report of Catch Assessment Survey of Lake Albert – Albert Nile conducted in July 2012

A Catch Assessment Surveys (CAS) with the overall objective of generating information on the fish production and commercial value of the fisheries of Lake Albert and Albert Nile system was implemented by the National Fisheries Resources Research Institute (NAFIRRI) in collaboration with the Department of Fisheries Resources (DFR), Local Government staff (FOs) and BMU members at selected landing sites on Lake Albert (12 landing sites) and Albert Nile (26 landing sites) in July 2012. A total 622 and 313 boat days on Lake Albert and Albert Nile respectively were sampled for a period of 9 days. Results indicate an annual landing of 151,600 and 5,900 tonnes (t) of fish with an estimated beach value of 122.5 and 14 Billion (UShs) from Lake Albert and Albert Nile respectively. Over 80% of the catch from Lake Albert comprised the small pelagic species; Neobola bredoi (Muziri) and Brycinus nurse (Ragoogi) followed by Nile perch (6%). However, due to low market value of the small fishes and the high prices attached to Nile perch for industrial processing and export market, the contribution of the latter to beach value rose to 34% of the total. The contribution of the light fishery based on small pelagic species (B. nurse and N. bredoi) are insignificant on Albert Nile. Even if the small pelagic species may be present in the river system, a light fishery based on these two is yet to be developed. Proportionally, Albert Nile still remain a multispecies fishery with over 20 fish species harvested commercially. Interestingly, the Albert Nile fishery still remains primitive with simple crafts and gears (mainly dugout canoes, traps, and gillnets). This could suggest that the more developed the system becomes the higher the level of transformation in its fisheries leading to simplification, characterized by reduction in multispecies nature and dominance of few species. Illegal gears especially undersized gillnet of mesh size less than 4 inches were the most dominant in the Lake Albert and Albert Nile fisheries. They captured large quantities of immature fish particularly when used to target Nile perch, Bagrus, Nile tilapia, and large Barbus spp. Their impact when used to target the smaller species (Ragoogi, Angara & Ngasia) is yet to be evaluated. A specific study to analyze selectivity and impacts of these nets is a recommended. However, the dominance of 1.5” mesh sizes especially on Albert Nile to target Angara, Ngassia and Barbus, is definitely destructive to their fisheries and should be checked forthwith. In addition, there is an emerging fishing method locally referred to as “Salsio or Luzira” whereby fishers stay on the lake from 3 days up to 2 weeks without returning to the landing site. They carry with them food and salt for processing the catches on the lake, and in the case of Albert Nile on make shift shelters on islands and in the game park. They normally use gillnets of 3-3½ inch mesh size and caught mainly Nile perch & Bagrus (Pethi & Munama). On return they land several tons of fish. Most of these Catches are not captured in the estimates presented in our analyses since we target daily fishing boats. The possible impacts of this fishing method should be studied and appropriate action recommended.

New evidences on the distribution of predatory pelagic sharks in the tuna grounds of the Indian Ocean

Since the commencement of the exploitation of oceanic tuna resources of the Indian Ocean seventeen years ago, the hooked rates for the tuna species have declined in many areas of the Ocean but there are no evidences of such a trend in the case of the sharks. As a result, the percentage composition of sharks in the longline catches and the percentage of the tuna catch damaged by sharks show an increase. Hence there is an urgent need for innovation of the existing longline gear in order to increase the fishing efficiency for hooking the tuna species with a corresponding reduction in its efficiency for hooking sharks. At the beginning of this fishery, hooked sharks were discarded at sea, at a later stage the liver and fins were taken and the carcass discarded and presently the sharks are also brought along with the tuna catch. Though the shark meat has a very low market value it is brought in order to cover up for the declining tuna catches. Thus it has become very necessary to increase the demand for shark meat by developing products or by-products utilizing shark meat and ensuring the successful continuity of the tuna longline fishery. The pattern of distribution of shark species in the time grounds of the Pacific, Indian and Atlantic Oceans and also the predation of hooked tunas by sharks were discussed earlier (Sivasubranianiam 1963, 1964 and 1966). Some contribution to these studies is made in this paper based on new data become available.