Reflections on teaching business ethics

The start of the twenty-first century witnessed a number of company scandals and ethical breaches that have brought to the forefront community feelings of anguish and disgust towards large companies in addition to spawning more legislation aimed at avoiding a repeat of these collapses. The question that arises is whether the past measures (including legislation) have worked, given the recent Global Financial Crisis (GFC) as it has raised more questions than it has answered. Against this backdrop, we need to consider whether business ethics can be taught to a person irrespective of their age? Should we as community members, customers, shareholders of today give up on the current senior managers who are mostly representatives of the baby boomers and concentrate on increasing ethical awareness of our current undergraduate students (at least of Generation Y and Z)? If we proceed with this argument as being both valuable and also possible, the next step is to consider the ways by which to teach business ethics to a group of students and this aim is the focus of the chapter.

Determinants of capital structure of A-REITS and the global financial crisis

This paper contributes to the capital structure literature by investigating the determinants of capital structure of Australian Real Estate Investment Trusts (A-REITs) over the period 2006-2009. By using a panel approach and a Global Financial Crisis (GFC) dummy variable, our analysis incorporates the Global Financial Crisis (GFC) shock which appears to have affected the market after December 2007. We find that A-REIT size, profitability, tangibility, operating risk and number of growth opportunities impact similarly to many previous studies of international entities upon the degree of leverage. We also find mixed support for prevailing capital structure theories of Pecking Order, Trade-off and Agency Theory, but find that Market Timing Theory can be rejected over our sample period. With specific focus after onset of the GFC, we find that the relationship between capital structure and our independent variables is somewhat distorted. Consequently, the postulations of theory also become distorted whereby changes to capital structure come about because of the primary goal to survive, rather than managerial opportunism.

The direct costs of raising external equity capital for US REIT IPOs

Purpose – The purpose of this paper is to investigate the total direct costs of raising external equity capital for US real estate investment trust (REIT) initial public offerings (IPOs).

Design/methodology/approach – The study provides recent evidence on total direct costs for a comprehensive dataset of 125 US REIT IPOs from 1996 until June 2010. A multivariate OLS regression is performed to determine significant factors influencing the level of total direct costs and also underwriting fees and non-underwriting direct expenses.

Findings – The study finds economies of scale in total direct costs, underwriting fees and non-underwriting expenses. The equally (value) weighted average total direct costs are 8.33 percent (7.52 percent), consisting of 6.49 percent (6.30 percent) underwriting fees and 1.87 percent (1.22 percent) non-underwriting direct expenses. The study finds a declining trend of total direct costs for post 2000 IPOs which is attributed to the declining trend in both underwriting fees and non-underwriting direct expenses. Offer size is a critical determinant for both total direct costs and their individual components and inversely affects these costs. The total direct costs are found significantly higher for equity REITs than for mortgage REITs and are also significantly higher for offers listed in New York Stock Exchange (NYSE). Underwriting fees appear to be negatively influenced by the offer price, the number of representative underwriters involved in the issue, industry return volatility and the number of potential specific risk factors but positively influenced by prior quarter industry dividend yield and ownership limit identified in the prospectus. After controlling for time trend, the paper finds REIT IPOs incur higher non-underwriting direct expenses in response to higher industry return volatility prior to the offer.

Originality/value – This paper adds to the international REIT IPO literature by exploring a number of new influencing factors behind total direct costs, underwriting fees and non-underwriting direct expenses. The study includes data during the recent GFC period.

Initial public offerings of energy companies

This study analyses 158 energy company initial public offerings (IPOs) in Australia from January 1994 to December 2010, including the period of the global financial crisis (GFC). The study finds that energy company IPOs had an average 22.0 % underpricing and that those IPOs that sought to raise more equity capital and engaged underwriters had lower underpricing. There is also evidence that suggests energy company IPOs that offered options to their underwriters had higher underpricing returns, effectively cancelling the lower underpricing effect of the underwriting itself. The energy IPOs that raised equity capital after the 2007/8 global financial crisis do not appear to have offered on average, significantly different underpricing returns to their investors compared to those energy IPOs that raised capital prior to this GFC period. The findings of this study offer insights for issuers who seek to lower underpricing, for underwriters involved in the capital raising and for investors who are looking to invest in Australian energy company IPOs.

International housing market analysis based on housing commencements

Additions to the aggregate housing stock are a broad measure of the state of an economy and overall level of confidence in a particular region over a designated period. This is due to the direct and indirect effect (e.g. employment in the housing construction industry) upon on the local economy and is linked to the confidence of local households in the future direction of housing investment, the level of housing affordability by households as related to employment levels and the relationship between supply and demand in each region. Another consideration is the ability of the government to monitor and successfully intervene in the operation of the household market (e.g. mortgage interest rates) with the intent of restricting an over-supply situation which may take years to fully recover. The analysis in this section examines new housing commencements for Scotland, Australia, USA and Canada over an extended time period with the specific focus placed on the periods before, during and after the high profile global financial crisis in 2007-2008. The graph in Figure 1 was adapted from data sourced from The Scottish Government (2013) and covers the 15-year period between 1998 and 2012. With the exception of 1999 there were been relatively few years with substantial additions to the housing market. However, the effect of the GFC can clearly be observed post 2007 although by 2012 there was relatively change from the previous year.

Rating downgrade and the price impact of CDS spread on stock return

We investigate the time-varying informativeness of credit default swap (CDS) trading on stock returns for 302 US firms from July 2004 to August 2010. Using the Acharya and Johnson (2007) measure, we find that CDS trading becomes informative for an increasing number of firms as we approach the global financial crisis (GFC). Firm numbers gradually decline post-GFC, but remain high compared to the pre-GFC period. furthermore, CDS trading imposes the largest conditional price impact on firms that are recently downgraded, regardless of rating levels. Interestingly, this holds during and after the GFC, but not before. We offer two implications. First, despite post-GFC outcry against the CDS market, our results suggest it exhibits enhanced price discovery during the GFC. Second, our findings support criticism that, in the lead-up to the GFC, rating agencies are slow in downgrading firms. However, if downgrade decisions made during and after the GFC induce informed trading in the CDS market, this necessarily implies that during the midst of the GFC, rating agencies have got their act together.

Risk management, optimal

Individuals continually confront a discrepancy between ever expanding and changing wants and the means that they have at their disposal, time, and income, to satisfy them. One of the consequences is the need to make constrained choices between alternatives that have uncertain outcomes. Risk is a different concept from uncertainty. Individual optimal risk management means reducing, eliminating, or fully bearing risk, after conducting a “cost-benefit” analysis. In practice, however, cognitive biases mean that many decisions are not economically rational, necessitating paternalistic government and judicial interventions. Systemic, or whole financial system collapse risk is, optimally managed using well-designed macroprudential regulatory tools. The source of this type of risk is the inherent dynamics of the financial system over the course of the business cycle, interacting with credit market negative externalities, often as in the case of the GFC, spawned by government regulatory failure

Financialisation of official development assistance

Official Development Assistance is a significant global enterprise. Organsiations engaged in funding and implementing ODA (the bilateral donors, multilateral organsiations such as the World Bank and IMF) have unprecedented political and economic influence over a large number of sovereign developing countries. This paper analyses if, and how financialisation impacts on development aid, and implications for effective aid policy agendas, drawing on and linking critical debate on finacialisation, and ODA. Subsequent to the Global Financial Crisis (GFC) and the persistence of the European Monitory Crisis (EMC), specific needs of developing countries became increasingly sub-ordinated to political and ideological power relations between ‘real’ economics and financial economics otherwise known as financialisation. The paper finds ‘financialisation’ as the ideological, political and economic catalyst for economic growth potentially confusing long-term development to combat poverty, and a short term need to overcome the lack of financial capacity in developing recipient countries. Sustainable economic development requires developing countries to forsake the pursuit of financialisation and to re-delineate their national finance, trade and investment regimes, and re-state it in a balanced manner as to take into account their unique economic development needs rather that the donor agencies’ demands and to advance their own ‘real’ economies.

Principles of contemporary corporate governance

Now in its third edition, Principles of Contemporary Corporate Governance offers comprehensive coverage of the key topics and emerging themes in corporate governance in the private sector. It explains both the principles of corporate governance systems and their real-world application in an authoritative and engaging manner. This fully updated edition includes a new chapter on shareholder activism and covers developments in the areas of corporate governance in the European Union, reporting, credit rating agencies, executive remuneration and board diversity. It addresses the impact of the GFC on corporate governance and the theoretical and economic aspects of governance, and further includes comparative sections, written by specialist contributors, on corporate governance in China, Indonesia, Japan and South Africa. Principles of Contemporary Corporate Governance is an indispensable resource for academic researchers, practitioners wanting a deeper understanding of the underlying principles of corporate governance and students of business and law studying corporate governance.

Occupational class differences in suicide: evidence of changes over time and during the global financial crisis in Australia

BACKGROUND: Previous research showed an increase in Australian suicide rates during the Global Financial Crisis (GFC). There has been no research investigating whether suicide rates by occupational class changed during the GFC. The aim of this study was to investigate whether the GFC-associated increase in suicide rates in employed Australians may have masked changes by occupational class.

METHODS: Negative binomial regression models were used to investigate Rate Ratios (RRs) in suicide by occupational class. Years of the GFC (2007, 2008, 2009) were compared to the baseline years 2001-2006.

RESULTS: There were widening disparities between a number of the lower class occupations and the highest class occupations during the years 2007, 2008, and 2009 for males, but less evidence of differences for females.

CONCLUSIONS: Occupational disparities in suicide rates widened over the GFC period. There is a need for programs to be responsive to economic downturns, and to prioritise the occupational groups most affected.

Validação da triagem de macroprolactinemia utilizando precipitação com polietilenoglicol e ensaio quimioluminescente

A prolactina(PRL) humana circula em múltiplas formas de diferentes tamanhos moleculares, das quais três são detectadas na cromatografia por filtração em gel(CFG): Little ou monomérica(mPRL), Big( bPRL) e Big-Big ou macroprolactina( bbPRL ou macroPRL). Em pessoas normais, a principal forma é a mPRL(85 a 90% do total) com uma pequena proporção de macroPRL. Em algumas pessoas, porém, ocorre uma maior quantidade de macroPRL, um fenômeno denominado Macroprolactinemia, que se sabe estar presente entre 10-25% dos soros hiperprolactinêmicos. É importante a sua identificação para evitar investigação e tratamento desnecessário. O método padrão para sua detecção é a cromatografia por filtração em gel( CFG); porém, a precipitação com polietilenoglicol( PEG) é um método de triagem simples, confiável e de baixo custo. Os testes com PEG originais foram feitos com o ensaio imunofluorimétrico( IFMA) Delfia para PRL. Objetivo: Validar um teste sensível e específico para a triagem de macroPRL baseado no ensaio de PRL quimioluminescente Immulite DPC. Resultados e métodos: Analisamos amostras séricas de 142 pessoas de ambos sexos. Baseado nessas amostras de rotina, dosamos a PRL seguida da precipitação com PEG e cálculo da recuperação de PRL( %R de PRL). Destes soros, 88 foram submetidos a cromatografia com filtração em Gel. Foi definido um ponto-de-corte para a presença de macroPRL, baseado numa curva ROC, ao comparar-se os resultados do teste de precipitação com PEG e os da CFG. O ponto-de-corte foi definido em 60%, com o achado de um teste com sensibilidade de 88,9% e especificidade de 98,6%. Correlacionou-se a dosagem de mPRL com a presença de macroPRL na cromatografia. Conclusão: Validamos um teste de triagem para macroPRL baseado no ensaio quimioluminescente DPC Immulite com sensibilidade de 88,9% e especificidade de 98,6 % para a porcentagem de recuperação PRL de 60%. O achado de uma valor de mPRL menor ou igual a 20 depois da precipitação com PEG vai suportar este diagnóstico. A prevalência( 20,4%) de macroPRL encontrada em nosso estudo, utilizando a metodologia proposta, é semelhante à encontrada na literatura.

Biochemische Untersuchungen des Lichtsammlerprotein (LHCP) im Komplex mit seinem Chaperon, dem plastidären Signalerkennungspartikel cpSRP

Das Lichtsammlerprotein (light harvesting chlorophyll a/b-binding protein, LHCP) ist das Apoprotein des Haupt-Lichtsammelkomplexes (LHCII) und stellt das häufigste Membranprotein der Erde dar. Nicht nur aufgrund seiner Abundanz, sondern auch wegen seiner speziellen Translokation als stark hydrophobes Membranprotein durch hauptsächlich wässrige Milieus von cytosolischen Ribosomen bis in die Thylakoidmembran der Chloroplasten ist der Biogeneseweg dieses Proteins von besonderem Interesse. LHCP ist kernkodiert und wird nach seinem Import in Chloroplasten als Transitkomplex mit dem stromalen Signalerkennungsprotein (cpSRP) zur Thylakoide geleitet. Der cpSRP-Komplex besteht aus dem cpSRP43 mit Chaperonfunktion für das LHCP sowie dem Co-Chaperon cpSRP54, welches eine entscheidende Rolle in der stromalen Zielführung des Transitkomplexes spielt. Sowohl die Proteinkonformation des LHCP während seiner Biogenese als auch der in vivo Faltungsablauf während der Thylakoidinsertion sind noch völlig unklar. Mithilfe der Elektronen-paramagnetischen Resonanz (EPR-)Spektroskopie sollte in dieser Arbeit der Faltungszustand des LHCP im Transitkomplex mit dem cpSRP oder in Teilkomplexen davon ermittelt werden.rnKopplungen von cpSRP43 und LHCP bestätigten, dass das Chaperon als Minimaleinheit zur quantitativen Solubilisierung des Membranproteins genügt. Gelfiltrationschromatographische (GFC-) Untersuchungen solcher Komplexe wiesen jedoch mit einem apparenten MW von ≥ 600 kDa ein sehr hochmolekulares Laufverhalten auf. Variierende Proteinstöchiometrien im Komplex zeigten in densitometrischen Auswertungen eine undefinierte Aggregation. Zusätze von Agenzien zur Vermeidung unspezifischer Wechselwirkungen wie z.B. Detergentien oder auch Salzzugabe zeigten keinen Einfluss auf die Aggregate. Volllängen-Transitkomplexe dagegen wiesen trotz unterschiedlichem Angebot von Einzelproteinen reproduzierbar definierte Stöchiometrien auf. Diese zeigten eine LHCP:cpSRP43-Stöchiometrie von 1,25. Dennoch hatten diese Komplexe mit einem apparenten MW von > 300 kDa einen mindestens dimeren Assemblierungsgrad. Eine Voraussetzung für eindeutige EPR-spektroskopische Distanzmessungen zwischen definierten Positionen im LHCP ist jedoch dessen monomolekularisiertes Vorliegen im Chaperonkomplex. Die Darstellung von ternären Transitkomplexen mit einem zu erwartenden apparenten MW von ~175 kDa war auch durch Zusatz verschiedener Proteinaggregationshemmer nicht möglich. Transitkomplexe mit einer verkürzten Version des cpSRP54 zeigten schließlich eine definierte 1:1-Komplexstöchiometrie bei gleichzeitiger polydisperser Komplexzusammensetzung. Es konnten ~60% dieser sogenannten 54M-Transitkomplexe nach GFC-Daten und densitometrischer Auswertung als potentiell ternär eingeschätzt werden. Darüber hinaus gelang es solche Ansätze durch GFC-Fraktionierung zusätzlich von oligomerisierten Spezies aufzureinigen. Dennoch zeigten die Präparate vor GFC-Fraktionierung ein (noch) zu hohes Aggregationssignal im Hintergrund und nach Fraktionierung ein zu schwaches Signal, um eine eindeutige Aussage der EPR-Daten zuzulassen. Dennoch bietet dieses ausgearbeitete Komplexbildungsprotoll in Verbindung mit der Verwendung von verkürztem cpSRP54 eine solide Basis, um weitere Versuche zu EPR-Messungen an cpSRP-gebundenem LHCP durchzuführen. rn

Data compilation of ESOP

The work in this sub-project of ESOP focuses on the advective and convective transforma-tion of water masses in the Greenland Sea and its neighbouring areas. It includes observational work on the sub-mesoscale and analysis of hydrographic data up to the gyre-scale. Observations of active convective plumes were made with a towed chain equipped with up to 80 CTD sensors, giving a horizontal and vertical resolution of the hydrographic fields of a few metres. The observed scales of the penetrative convective plumes compare well with those given by theory. On the mesoscale the structure of homogeneous eddies formed as a result of deep convection was observed and the associated mixing and renewal of the intermediate layers quantified. The relative importance and efficiency of thermal and haline penetrative convection in relation to the surface boundary conditions (heat and salt fluxes and ice cover) and the ambient stratification are studied using the multi year time series of hydro-graphic data in the central Greenland Sea. The modification of the water column of the Greenland Sea gyre through advection from and mixing with water at its rim is assessed on longer time scales. The relative contributions are quantified using modern water mass analysis methods based on inverse techniques. Likewise the convective renewal and the spreading of the Arctic Intermediate Water from its formation area is quantified. The aim is to budget the heat and salt content of the water column, in particular of the low salinity surface layer, and to relate its seasonal and interannual variability to the lateral fluxes and the fluxes at the air-sea-ice interface. This will allow to estimate residence times for the different layers of the Greenland Sea gyre, a quantity important for the description of the Polar Ocean carbon cycle.

A Brief Story about the Operators of the Generalized Fractional Calculus

2000 Mathematics Subject Classification: 26A33, 33C60, 44A20