Ministers as strategic political leaders? : Strategic political steering after NPM reforms in Finland

This study explores strategic political steering after the New Public Management (NPM) reforms, with emphasis on the new role assigned to Government ministers in Finland. In the NPM model, politicians concentrate on broad, principal issues, while agencies have discretion within the limits set by politicians. In Finland, strategic steering was introduced with Management by Results (MBR), but the actual tools for strategic political steering have been the Government Programme, the Government Strategy Portfolio (GSP) and Frame Budgeting. This study addresses these tools as means of strategic steering conducted by the Cabinet and individual ministers within their respective ministries. The time frame of the study includes the two Lipponen Cabinets between 1995 and 2003. Interviews with fourteen ministers as well as with fourteen top officials were conducted. In addition, administrative reform documents and documents related to strategic steering tools were analysed. The empirical conclusions of the study can be summarised as follows: There were few signs of strategic political steering in the Lipponen Cabinets. Although the Government Programmes of both Cabinets introduced strategic thinking, the strategic guidelines set forth at the beginning of the Programme were not linked to the GSP or to Frame Budgeting. The GSP could be characterised as the collected strategic agendas of each ministry, while there was neither the will nor the courage among Cabinet members to prioritise the projects and to make selections. The Cabinet used Frame Budgeting mainly in the sense of spending limits, not in making strategic allocation decisions. As for the GSP at the departmental level, projects were suggested by top officials, and ministers only approved the suggested list. Frame Budgeting at the departmental level proved to be the most interesting strategic steering tool from ministers viewpoint: they actively participated in defining which issues would need extra financing. Because the chances for extra financing were minimal, ministers had an effect only on a marginal share of the budget. At the departmental level, the study shows that strategic plans were considered the domain of officials. As for strategies concerning specific substances, there was variation in the interest shown by the ministers. A few ministers emphasised the importance of strategic work and led strategy processes. In most cases, however, officials led the process while ministers offered comments on the drafts of strategy documents. The results of this study together with experiences reported in other countries and local politics show that political decision-makers have difficulty operating at the strategic level. The conclusion is that politicians do not have sufficient incentive to perform the strategic role implied by the NPM type of reforms. Overall, the empirical results of the study indicate the power of politics over management reforms.

The determinants of fair value measurements of banks: International evidence

The purpose of this study is to investigate the accounting choice decisions of banks to employ Level 3 inputs in estimating the value of their financial assets and liabilities. Using a sample of 146 bank-year observations from 18 countries over 2009-2012, this study finds banks’ incentives to use Level 3 valuation inputs are associated with both firm-level and country-level determinants. At the firm-level, leverage, profitability (in term of net income), Tier 1 capital ratio, size and audit committee independence are associated with the percentage of Level 3 valuation inputs. At the country-level, economy development, legal region, legal enforcement and investor rights are also associated with the Level 3 classification choice. Lastly, ‘secrecy’, the proxy for culture dimensions and values, is found to be positively associated with the use of Level 3 valuation inputs. Altogether, these findings suggest that banks use the discretion available under Level 3 inputs opportunistically to avoid violating debt covenants limits, to increase earnings and manage their capital ratios. Results of this study also highlight that corporate governance quality at the firm-level (e.g. audit committee independence) and institutional features can constrain banks’ opportunistic behaviors in using the discretion available under Level 3 inputs. The results of this study have important implications for standard setters and contribute to the debate on the use of fair value accounting in an international context.

The determinants of fair value measurements of banks: International evidence

The purpose of this study is to investigate the accounting choice decisions of banks to employ Level 3 inputs in estimating the value of their financial assets and liabilities. Using a sample of 146 bank-year observations from 18 countries over 2009-2012, this study finds banks’ incentives to use Level 3 valuation inputs are associated with both firm-level and country-level determinants. At the firm-level, leverage, profitability (in term of net income), Tier 1 capital ratio, size and audit committee independence are associated with the percentage of Level 3 valuation inputs. At the country-level, economy development, legal region, legal enforcement and investor rights are also associated with the Level 3 classification choice. Lastly, ‘secrecy’, the proxy for culture dimensions and values, is found to be positively associated with the use of Level 3 valuation inputs. Altogether, these findings suggest that banks use the discretion available under Level 3 inputs opportunistically to avoid violating debt covenants limits, to increase earnings and manage their capital ratios. Results of this study also highlight that corporate governance quality at the firm-level (e.g. audit committee independence) and institutional features can constrain banks’ opportunistic behaviors in using the discretion available under Level 3 inputs. The results of this study have important implications for standard setters and contribute to the debate on the use of fair value accounting in an international context.

Discursive Matrixes of Motherhood : Cultivating Decency and Emotion in Finnish and French Mother-talk

Discursive Matrixes of Motherhood examines women's discourse on their experiences of new motherhood in Finland and France. It sets out from two culturally prevalent turns of speech observed in different social forums: in conversations amongst mothers with tertiary education and in the print media. The pool of data includes: 30 interviews, 8 autobiographically inspired novels and 80 items from women's magazines. With instruments loaned from the toolbox of rhetorical analysis, the recurrence of certain expressions or clichés is analyzed with regard to the national, cultural, biographical, political and daily contexts and settings in which the speaking subjects are immersed. "Staying at home is such a short and special time", the first expression under scrutiny, caught the sociological eye because of its salience in Finland and because it appeared as contradictory with a core characteristic of the Finnish context:long family leave. The cliché was found to function as a discursive micromechanism which swept mothers' 'complaints' under the proverbial carpet. Proper emotions and decency in mother-talk thereby appear as collective achievements. An opposite phenomenon - that of the scaling up of rewards procured by children - was also discerned in the data. Indeed, the French expression "Profiter de mon enfant" ["making the most of my child"/"enjoying my child"] is interpreted as a crystallization of a hedonist ethos of motherhood in everyday language. Secondly, the recurrence of this utterance is analyzed in the light of a requisite located in child-rearing expert literature: that of pleasure that women should take in mothering. Hence, one of the rules found to structure the discursive matrixes of motherhood is the laudability and audibility of enjoyment and conversely the discretion and discouragement of 'complaints'. The cultivation of decent matches between certain categories of emotions and certain categories of individuals also appears as a characteristic of discursive matrixes. One of the methodological findings relates to the fact that such matches may be constituted as sociological objects through the identification of recurrent discursive crystallizations in a given culture. Ideal matches may crystallize in turns of speech and mismatches can be managed through clichés. Becoming a mother entails an immersion in such a particular economy of speech. Key words: mothers, motherhood, transition to parenthood, family, emotions, morality, bonds, rhetorical analysis, discourse analysis, media analysis, France, Finland, comparative sociology

Detecting Earnings Management Using Neural Networks

Detecting Earnings Management Using Neural Networks. Trying to balance between relevant and reliable accounting data, generally accepted accounting principles (GAAP) allow, to some extent, the company management to use their judgment and to make subjective assessments when preparing financial statements. The opportunistic use of the discretion in financial reporting is called earnings management. There have been a considerable number of suggestions of methods for detecting accrual based earnings management. A majority of these methods are based on linear regression. The problem with using linear regression is that a linear relationship between the dependent variable and the independent variables must be assumed. However, previous research has shown that the relationship between accruals and some of the explanatory variables, such as company performance, is non-linear. An alternative to linear regression, which can handle non-linear relationships, is neural networks. The type of neural network used in this study is the feed-forward back-propagation neural network. Three neural network-based models are compared with four commonly used linear regression-based earnings management detection models. All seven models are based on the earnings management detection model presented by Jones (1991). The performance of the models is assessed in three steps. First, a random data set of companies is used. Second, the discretionary accruals from the random data set are ranked according to six different variables. The discretionary accruals in the highest and lowest quartiles for these six variables are then compared. Third, a data set containing simulated earnings management is used. Both expense and revenue manipulation ranging between -5% and 5% of lagged total assets is simulated. Furthermore, two neural network-based models and two linear regression-based models are used with a data set containing financial statement data from 110 failed companies. Overall, the results show that the linear regression-based models, except for the model using a piecewise linear approach, produce biased estimates of discretionary accruals. The neural network-based model with the original Jones model variables and the neural network-based model augmented with ROA as an independent variable, however, perform well in all three steps. Especially in the second step, where the highest and lowest quartiles of ranked discretionary accruals are examined, the neural network-based model augmented with ROA as an independent variable outperforms the other models.

Una aproximación a los límites de la discrecionalidad del legislador

Resumen: Los actos de alcance general que emiten los diversos poderes del Estado –emanados de un legislador concebido latu sensu– pueden ser visualizados de dos maneras. Por un lado, se los puede considerar como emanados de un legislador que no tiene límites en su discrecionalidad; por el otro, como emanados de un legislador que se halla sujeto, en su discrecionalidad, a importantes limitaciones, de carácter inmutable y de plena actualidad. El presente trabajo destaca y ejemplifica las insuficiencias de las doctrinas de la no limitación de la discrecionalidad del legislador, y pone en primer plano los elementos iniciales para limitar esa discrecionalidad en la enseñanza tomista.

Las reformas económicas y la modernización del Estado

Resumen: El presente artículo trata conjuntamente acerca de los contenidos y la estrategia para la Modernización del Estado que se desprende de las recientes experiencias en cuanto a la aplicación de las Reformas Económicas de los años 80s y 90s, como así también de los últimos desarrollos de nuevas áreas de investigación como la Economía Institucional y la Teoría del Capital Social. Desde este punto de vista para diseñar una Estrategia de Modernización del Estado es esencial una visión estratégica de las actividades que el Estado debe realizar, delegar o incentivar. Asimismo las orientaciones fundamentales pasan por la existencia de consensos sobre políticas de largo plazo, la independencia del funcionamiento, un correcto diseño de reglas en lugar de conductas discrecionales, un balance entre subsidiariedad y participación, el logro de la excelencia de la función pública y de la lucha contra la corrupción.

O Congresso Nacional e a política externa brasileira : posicionamento dos senadores frente às negociações para a formação da ALCA (1994-2005)

Analisa o posicionamento dos integrantes do Congresso Nacional frente às negociações para a formação da Área de Livre Comércio das Américas (ALCA), a concentrar sua atenção sobre o Senado Federal, com eventuais incursões pela Câmara dos Deputados. O período por nós delimitado compreende, respectivamente, o lançamento da proposta pela integração continental, ocorrida na I Cúpula das Américas, nos EUA, em 1994, até o ano de 2005, em que se evidenciou a paralisação do processo negociador. Dois fatores estimularam-nos a realizar esta tarefa. Primeiro, colocar à prova a tese, disseminada pelo senso comum, de que o Parlamento não demonstra interesse por questões ou assuntos internacionais. Segundo, fornecer uma contribuição à escassa bibliografia disponível a respeito da relação entre os congressistas e a produção da política externa brasileira de integração regional, em particular. Apesar de não ignorarmos o papel predominante do Poder Executivo na formulação e condução da política externa nacional, e nem a comprovada carência de mecanismos participativos e decisórios formais à disposição do Parlamento para atuar nas diferentes facetas deste plano, procuramos aferir em que medida a atividade parlamentar se restringe ou não, na prática, ao seu exercício constitucional de aprovar ou rejeitar matérias sobre política exterior, conforme nos aponta o senso comum. O caráter polêmico das negociações e dos debates ocorridos no Brasil a respeito da conformação da ALCA, ao longo de mais de uma década, levou-nos a questionar qual teria sido o posicionamento dos congressistas com relação ao assunto, ou seja, se teriam manifestado interesse em se envolver mais intensamente com a questão, ou se reservado a debatê-la somente na ocasião em que fosse submetida, na forma de um acordo, à sua apreciação. A elaboração do presente trabalho orientou-se pela pretensão em alcançar respostas para duas perguntas formuladas por nós: a ausência de mecanismos formais de participação parlamentar nas negociações sobre a ALCA teria refletido um suposto desinteresse dos senadores pela questão? Em que medida esta referida ausência não teria impelido o Parlamento a buscar influenciar o processo por outros meios, ou até mesmo fomentado demandas pela ampliação de seu papel constitucional no tratamento de questões externas? Para tentar responder a tais perguntas, servimo-nos especialmente dos apanhamentos taquigráficos dos pronunciamentos realizados pelos senadores; de proposições elaboradas pelos congressistas e de atas e notas tquigráficas de audiências públicas promovidas por Comissões do Congresso Nacional.

Institutional designs to face the dark side of total allowable catches

Setting total allowable catches (TACs) is an endogenous process in which different agents and institutions, often with conflicting interests and opportunistic behaviour, try to influence policy-makers. Such policy-makers, far from being the benevolent social planners many would wish them to be, may also pursue self-interest when making final decisions. Although restricted knowledge of stock abundance and population dynamics, and weakness in enforcement, have effects, these other factors may explain the reason why TAC management has failed to guarantee sustainable exploitation of fish resources. Rejecting the exogeneity of the TAC and taking advantage of fruitful debate on economic policy (i.e. the rules vs. discretion debate, and that surrounding the independence of central banks), two institutional developments are analysed as potential mechanisms to face up to misconceptions about TACs: long-term harvest control rules, and a central bank of fish.

The State of Coral Reef Ecosystems of the United States and Pacific Freely Associated States: 2005

Executive Summary: For over three decades, scientists have been documenting the decline of coral reef ecosystems, amid increasing recognition of their value in supporting high biological diversity and their many benefits to human society. Coral reef ecosystems are recognized for their benefits on many levels, such as supporting economies by nurturing fisheries and providing for recreational and tourism opportunities, providing substances useful for medical purposes, performing essential ecosystem services that protect against coastal erosion, and provid-ing a diversity of other, more intangible contributions to many cultures. In the past decade, the increased awareness regarding coral reefs has prompted action by governmental and non-governmental organizations, including increased funding from the U.S. Congress for conservation of these important ecosystems and creation of the U.S. Coral Reef Task Force (USCRTF) to coordinate activities and implement conservation measures [Presidential Executive Order 13089]. Numerous partnerships forged among Federal agencies and state, local, non-governmental, academic and private partners support activities that range from basic science to systematic monitoring of ecosystem com-ponents and are conducted by government agencies, non-governmental organizations, universities, and the private sector. This report shares the results of many of these efforts in the framework of a broad assessment of the condition of coral reef ecosystems across 14 U.S. jurisdictions and Pacific Freely Associated States. This report relies heavily on quantitative, spatially-explicit data that has been collected in the recent past and comparisons with historical data, where possible. The success of this effort can be attributed to the dedication of over 160 report contributors who comprised the expert writing teams for each jurisdiction. The content of the report chapters are the result of their considerable collaborative efforts. The writing teams, which were organized by jurisdiction and comprised of experts from numerous research and management institutions, were provided a basic chapter outline and a length limit, but the content of each chapter was left entirely to their discretion. Each jurisdictional chapter in the report is structured to: 1) describe how each of the primary threats identified in the National Coral Reef Action Strategy (NCRAS) has manifested in the jurisdiction; 2) introduce ongoing monitoring and assessment activities relative to three major categories of inquiry – water quality, benthic habitats, and associated biological communities – and provide summary results in a data-rich format; and 3) highlight recent management activities that promote conservation of coral reef ecosystems.

The cross layer RMPA handover: a reliable mobility pattern aware handover strategy for broadband wireless communication in a high-speed railway domain

Enhancing the handover process in broadband wireless communication deployment has traditionally motivated many research initiatives. In a high-speed railway domain, the challenge is even greater. Owing to the long distances covered, the mobile node gets involved in a compulsory sequence of handover processes. Consequently, poor performance during the execution of these handover processes significantly degrades the global end-to-end performance. This article proposes a new handover strategy for the railway domain: the RMPA handover, a Reliable Mobility Pattern Aware IEEE 802.16 handover strategy "customized" for a high-speed mobility scenario. The stringent high mobility feature is balanced with three other positive features in a high-speed context: mobility pattern awareness, different sources for location discovery techniques, and a previously known traffic data profile. To the best of the authors' knowledge, there is no IEEE 802.16 handover scheme that simultaneously covers the optimization of the handover process itself and the efficient timing of the handover process. Our strategy covers both areas of research while providing a cost-effective and standards-based solution. To schedule the handover process efficiently, the RMPA strategy makes use of a context aware handover policy; that is, a handover policy based on the mobile node mobility pattern, the time required to perform the handover, the neighboring network conditions, the data traffic profile, the received power signal, and current location and speed information of the train. Our proposal merges all these variables in a cross layer interaction in the handover policy engine. It also enhances the handover process itself by establishing the values for the set of handover configuration parameters and mechanisms of the handover process. RMPA is a cost-effective strategy because compatibility with standards-based equipment is guaranteed. The major contributions of the RMPA handover are in areas that have been left open to the handover designer's discretion. Our simulation analysis validates the RMPA handover decision rules and design choices. Our results supporting a high-demand video application in the uplink stream show a significant improvement in the end-to-end quality of service parameters, including end-to-end delay (22%) and jitter (80%), when compared with a policy based on signal-to-noise-ratio information.

O poder de polícia: um estudo sobre as percepções dos policiais militares do Estado do Rio de Janeiro sobre o poder de polícia

Este trabalho tem por objetivo apresentar uma discussão sobre o poder de polícia materializado na prática policial cotidiana dos policiais da Polícia Militar do Estado do Rio de Janeiro. Para desenvolver o tema poder de polícia foi imprescindível abordar os elementos que o constituem, que são: a discricionariedade da atividade de polícia, os termos do mandato de polícia, as formas de controle da ação policial e os aspectos da autonomia e subordinação da força policial.

Demanda e controle no trabalho e hipertensão arterial: validade dimensional e meta-análise

O modelo demanda e controle de Karasek, elaborado na década de 1970, postula que os trabalhadores expostos a situações de alta exigência no trabalho, decorrente da combinação entre altas demandas psicológicas e baixo controle sobre o processo de trabalho, tem maior risco de apresentar eventos em saúde relacionados ao estresse, em particular doenças cardiovasculares. Os objetivos desta tese incluíram: avaliar propriedades psicométricas do instrumento Demand-Control-Support Questionnaire (DCSQ) e conduzir uma meta-análise dos estudos publicados sobre a associação entre alta exigência no trabalho e hipertensão arterial. Três artigos foram elaborados. O primeiro artigo avaliou a validade dimensional e consistência interna da versão brasileira do instrumento DCSQ, quando aplicado a trabalhadores de um hospital e nove restaurantes no Rio de Janeiro. O segundo artigo comparou as propriedades psicométricas do DCSQ no contexto dos trabalhadores de hospital no Brasil e na Suécia. O terceiro artigo apresentou uma meta-análise dos estudos de associação entre alta exigência no trabalho e hipertensão arterial. Os resultados evidenciaram que o instrumento DCSQ tem estrutura tridimensional e equivalente nas versões brasileira e sueca (original), representada por demandas psicológicas, uso de habilidades e autonomia para a decisão. O modelo de melhor ajuste excluiu a dimensão apoio social no trabalho e o item trabalho repetitivo (uso de habilidades). A meta-análise revelou que os estudos foram heterogêneos, a população-alvo foi restrita a países da Europa, EUA e Japão, sem evidência de associação entre alta exigência no trabalho, demanda e controle, e hipertensão arterial.

Non-conventional advertising on TV

Non-Conventional ways of advertising TV Networks and advertisers have come up with in order to tackle proliferation of the media and discretion of the viewer from the TV experience.

Controle político da burocracia no presidencialismo de coalizão

O propósito da tese é analisar em que circunstâncias presidentes brasileiros recorrem a mecanismos de controle político sobre a burocracia pública. O argumento central é que o recurso presidencial a nomeações políticas, decretos regulamentares detalhados e criação de órgãos públicos centralizados na Presidência deverá variar em função de fatores políticos e características das coalizões de governo. Por meio de nomeações políticas, presidentes podem monitorar o comportamento de servidores públicos sob a influência indesejada de ministros do gabinete. Com decretos regulamentares detalhados podem reduzir a autonomia decisória de servidores públicos na interpretação de leis vagas. Por fim, por meio da criação de órgãos públicos centralizados na Presidência, podem gerar condições mais favoráveis ao futuro controle da burocracia pública. O propósito da tese será desdobrado em três problemas de pesquisa, com desenhos orientados para variáveis. O primeiro, desenvolvido no primeiro capítulo, aborda como a heterogeneidade política da coalizão afeta o controle presidencial sobre a burocracia pública por meio de nomeações políticas. O segundo problema, discutido no capítulo seguinte, analisa como a rotatividade ministerial e a demanda pela implementação interministerial de uma mesma lei afetam o grau de detalhamento de decretos regulamentares. Por fim, o terceiro problema de pesquisa, abordado no último capítulo, avalia como a composição heterogênea dos gabinetes afeta a criação de burocracias centralizadas na Presidência da República. Por meio de métodos estatísticos, foram estimados modelos de regressão linear multivariada a fim de analisar os determinantes 1. das nomeações políticas e 2. do grau de detalhamento dos decretos regulamentares, bem como modelos de regressão logística binária para avaliar a probabilidade de centralização presidencial na criação de órgãos públicos. A politização da burocracia federal tende a aumentar quando o conflito entre parceiros da coalizão é maior, uma alternativa presidencial às orientações ministeriais indesejadas sobre a burocracia pública. Decretos regulamentares tendem a ser mais detalhados quando ministérios são mais voláteis e quando há implementação interministerial, uma alternativa presidencial à autonomia da burocracia pública. Por fim, a centralização tende a crescer quando o conflito de políticas entre presidente e ministros é maior, uma saída às orientações ministeriais nocivas às preferências do presidente.