Business Commons^™

The New Global Financial Regulatory Order: Can Macroprudential Regulation Prevent Another Global Financial Disaster?, Behzad Gohari, Karen E. Woody

Karen Woody

This Article posits that the success of macroprudential regulation will depend on four factors. First, the economic philosophy of the central banker in charge of the domestic institution with jurisdiction over macroprudential regulation will prove crucial in the implementation of adopted regulation. If, like Chairman Greenspan, the banker is averse to the exercise of the Central Bank's regulatory oversight authority, then no amount or volume of policy or regulation will prevent or mitigate systemic risks and the accompanying shocks. Second, a sufficiently deep level of international cooperation is required to mitigate regulatory arbitrage, without being so broad that the ensuing …

Financial Institutions And The Taxi-Cab Industry: An Exploratory Study In Canada, John D. Obradovich, Amarjit Gill, Nahum Biger, Leo-Paul Dana, Ansari Mohamed

John Obradovich

A current challenge taxicab owner/operators face in Canada is the lack of financing for taxicabs. This article examines business opportunities and lending risk; it also provides risk management strategies for financial institutions to manage the risk of lending to the taxi-cab industry. Members of the boards of directors and shareholders from the Canadian taxicab industry, and lenders from financial institutions that do not provide financing to taxicab owner/operators, were interviewed. Board members and shareholders were asked about their perceptions regarding business opportunity, risk, and their willingness to provide collateral for taxicab loans. Lenders of financial institutions were asked about their …

Amp Bridging Finance And Behavioral Scholarship On Agent Risk Sharing And Risk Taking, Geoffrey P. Martin, Luis R. Gomez-Mejia Prof, Robert M. Wiseman

Geoffrey P Martin

Summary Of Yuji Ijiri Lectures, Tepper School Of Business, Shyam Sunder

Shyam Sunder

No abstract provided.

An Invitation To Accounting - Time And Risk, Shyam Sunder

Shyam Sunder

No abstract provided.

Social Norms, Risk And Financial Reporting, Shyam Sunder

Shyam Sunder

No abstract provided.

Norms, Organization, Risk In Financial Reporting, Shyam Sunder

Shyam Sunder

No abstract provided.

Critical Success Factors For Human Resource Audits, Chris Andrews

Dr Chris Andrews

Extract: The critical success factors for HR Auditing follow a pattern that is not specific to human resources, but is also not well understood by many human resource practitioners. Commitment to auditing as the evaluation mechanism, audit planning, team selection, HR standard negotiation, evidence-based fieldwork, well rounded reports and audit follow up are my critical success factors for HR auditing.

The Aggregate Impacts Of Tournament Incentives In Experimental Asset Markets, Debapriya J. Paul, Julia Henker, Sian Owen

Julia Henker

Existing studies of the aggregate impacts of tournament incentives find that asset price bubbles in experimental markets are larger and do not dissipate with experience when participants trade under tournament incentives. However, these results potentially overstate the real-world impacts of tournament incentives for two reasons. First, they examine tournaments in a restrictive single-asset market setting, which constrains the risk-taking options available to traders. Second, by purely conferring additional rewards for good relative performance, the tournament contracts used ignore the risk-moderating role played by penalties that are also written into or implicit in real-world counterparts. We address these gaps by examining …

Risk, Trade, Recovery And The Consideration Of Real Options: The Imperative Coordination Of Policy, Marketing, And Finance In The Wake Of Catastrophe, Mark R. Manfredo, Clifford J. Shultz

Clifford J Shultz

Recovery from societal and market catastrophe is a daunting process requiring multi-function, systemic, and long-term efforts. Humanitarian aid and donor assistance rarely are sufficient. Trade and other forms of direct investment in devastated markets offer another kind of recovery-assistance. Risks encountered in recovering economies however can deter firms wishing to invest. A real options framework is applied to examine the financial feasibility of trading with recovering economies; the framework is applied to the countries of the war-disintegrated, former Yugoslavia. The real options framework considers the value of managerial flexibility in the presence of risks. Implications for policy, marketing management and …

Measuring Risk In Business And Economics: Possiblity Of Loss Or Dispersion Of Outcomes, Shyam Sunder

Shyam Sunder

No abstract provided.

Project Finance: Transactional Evidence From Australia, Michael Regan

Michael Regan

The international project finance market is experiencing a period of significant change. The new Basel III capital adequacy rules will make it harder for banks to provide long-term project finance, and alternative sources of finance such as the shadow banking sector, fund managers, sovereign wealth funds, and institutional investors will take time to bridge the financing gap. In the meantime, it is difficult to source project finance for tenors beyond seven years, risk premiums are higher, and finance is difficult to source. Recent innovations in the form of the European Investment Bank’s Project Bond Initiative, and the ASEAN Infrastructure Fund …

Bank Risk And National Governance In Asia, Barry Williams

Barry Williams

Does national governance quality impact on bank risk?

Role Of Accounting In Managing Risk, Shyam Sunder

Shyam Sunder

No abstract provided.

Incentivizing Credit Rating Agencies Under The Issuer Pay Model Through A Mandatory Compensation Competition, Robert J. Rhee

Robert Rhee

Credit rating agencies are important institutions of the global capital markets. If they had performed properly, the financial crisis of 2008-2009 would not have occurred. This article offers the simplest fix proposed thus far, and it is contrarian. This Article accepts the central role of rating agencies in the regulation of bond investments, the realities of a duopoly, and the issuer-pay model of compensation. The status quo is the baseline. The role of regulation should be to create the conditions necessary to induce competition. This article proposes that a small, recurring portion of revenue earned by the largest rating agencies …

Social Risk And Female Entrepreneurs In Kerala, India: A Preliminary Assessment, Roshni Narendran

Roshni Narendran

The aim of this paper is to highlight the concept of social risk in the literature of female entrepreneurship. In most studies, entrepreneurial risk is considered to be related to monetary concerns, but sociological risks are overlooked. The risks associated with social challenges will be discussed in this paper. First, a conceptual model is developed with the help of the literature review. This conceptual model is further explained with the help of a qualitative analysis that was carried out in the state of Kerala. This South Indian state is renowned for the high social status enjoyed by women; therefore, it …

A More Realistic Approach To Directors' Duties, Michelle M. Harner

Michelle M. Harner

Expectations for what fiduciary duties can achieve in the corporate context are unrealistic. This segment of the law—and the alleged deficiencies therein—are blamed for corporate scandals, securities fraud, failed business plans, and even a company's insolvency. Risk is, however, inherent in business, and human beings are flawed. Fiduciary duty law cannot change these basic facts. To the extent we think it can, we will continue to be disappointed and frustrated. This essay considers recasting (and to a greater extent codifying) directors’ duties in a positive frame to help foster better director oversight. It does not suggest that codifying greater clarity …

Risk Within The Foundation Of Australian Supply : A Cross-Sectoral, Cross-Regional Perspective, Lee Styger Sydney Business School

Lee Styger

Supplier capability and customer engagement trends have changed considerably in recent times. Once robust supply networks have been eroded and capacity reduced, OEM engagement patterns have changed that now often preclude existing suppliers in favour of new, alternative suppliers. In 2010 and 2011 a series of supply focus groups and key interviews with customers indicated that OME’s have typically focused attention on Tier 1 and Tier 2 supplier and lost visibility of lower level suppliers, by outsourcing the management and responsibility of the lower level suppliers to their Tier 1 and Tier 2 suppliers. The outsourcing of management and responsibility …

Towards A Conceptual Model Of User Acceptance Of Location-Based Emergency Services, Anas Aloudat, Katina Michael

Professor Katina Michael

This paper investigates the introduction of location-based services by government as part of an all-hazards approach to modern emergency management solutions. Its main contribution is in exploring the determinants of an individual’s acceptance or rejection of location services. The authors put forward a conceptual model to better predict why an individual would accept or reject such services, especially with respect to emergencies. While it may be posited by government agencies that individuals would unanimously wish to accept life-saving and life-sustaining location services for their well-being, this view remains untested. The theorised determinants include: visibility of the service solution, perceived service …

The Future Prospects Of Embedded Microchips In Humans As Unique Identifiers: The Risks Versus The Rewards, Katina Michael, M.G. Michael

Professor Katina Michael

Microchip implants for humans are not new. Placing heart pacemakers in humans for prosthesis is now considered a straightforward procedure. In more recent times we have begun to use brain pacemakers for therapeutic purposes to combat illnesses such as epilepsy, Parkinson’s Disease, and severe depression. Microchips are even being placed inside prosthetic knees and hips during restorative procedures to help in the gathering of post-operative analytics that can aid rehabilitation further. While medical innovations that utilise microchips abound, over the last decade we have begun to see the potential use of microchip implants for non-medical devices in humans, namely for …

How Do You Define Success?, Connie I. Reimers-Hild

Connie I Reimers-Hild, PhD, CPC

What exactly is success? Many of the books, blogs and other for-profit resources available on success would have us believe that success is making it big in terms of money, power and fame. If you happen to have an executive title or big paycheck, you must be successful, right? This type of success is largely associated with external motivation and gratification. What is the cost of getting “to the top” or “making it big?” Sometimes, we forget to consider the tradeoffs associated with perceived success, or we only hear about the positive elements of money, fame and status. Rarely do …

Information Systems Procurement Process Risk And Control: Insights From A Public Sector Organization, Shan Chi Gary Pan, Manjari Mehta, Poh Sun Seow

Gary PAN

This case highlights the specific risks and issues that may be encountered in the information systems (IS) procurement process in a country where bribery and corruption are more common. PSO is a large Indian public sector organization involved in energy-related business. Being financially deprived, PSO relied on government funding to build its infrastructures. Besides the funding support, PSO also inherited the bureaucratic structure and the corruption practices. Lately, PSO was involved in several IS infrastructure and applications upgrading projects and wanted to review its IS procurement process. Does PSO understand the process risks in public IS procurement? Does PSO have …

Determination Of Consumer Context In An Online Transaction Process For A High Risk Purchase, Robert G. Grant, Rodney J. Clarke, Elias Kyriazis

Robert Grant

This paper showcases/discusses a method of analyzing consumer website behavior that enables real-time purchase context identification. Such analysis will enable online vendors to serve content that is relevant to the consumer’s needs, addressing the apparent utility deficit that websites have for complex product transactions. The use of communication theory is a key component of a value co-creation process that leverages the data derived from website interactivity by analyzing the meaning of consumer activity on a website. Such an approach offers insights into the effect of information accessed by consumers in real time, enabling a responsive system for serving information in …

Book Review: The Basics Of Information Security: Understanding The Fundamentals Of Infosec In Theory And Practice, Katina Michael

Professor Katina Michael

Dr Jason Andress (ISSAP, CISSP, GPEN, CEH) has written a timely book on Information Security. Andress who is a seasoned security professional with experience in both the academic and business worlds, categorically demonstrates through his book that underlying the operation of any successful business today is how to protect your most valuable asset- “information”. Andress completed his doctorate in computer science in the area of data protection, and presently works for a major software company, providing global information security oversight and performing penetration testing and risks assessment.

Public Private Partnerships: What Does The Future Hold?, Michael Regan, Jim Smith, Peter Love

Michael Regan

Internationally, Public and Private Partnerships (PPPs) are being used across a wide variety of economic and social infrastructure projects in more than 85 countries. PPPs are a procurement methodology that brings a rigorous risk-weighted approach to major projects using a competitive bid process and private sector expertise and innovation. PPPs are achieving a number of significant improvements in major project procurement and improved public service delivery.This paper considers the prospects of PPPs from the perspective of government clients and their promoters of PPPs and whether current volatility and uncertainty in the capital markets in Australia will affect the feasibility of …

Impact Of Disasters On Firms In Different Sectors: Implications For Supply Chains, Nezih Altay, Andres Ramirez

Nezih Altay

Disasters keep damaging infrastructure, disrupting supply chains and affecting firm profitability. There is an urgent need for better understanding of disaster impact on supply chains but very few publications address this issue. This exploratory study takes an indirect approach and investigates disaster impact on firms in various industry sectors. This approach allows us to take full advantage of large secondary data bases of firm and disaster data in order to analyze the impact of over 3,500 disasters on more than 100,000 firm-year observations over 15 years. Our results indicate that disasters impact all sectors within a supply chain. We found …

Achievement, Test Scores And Relative Wages, John H. Bishop

John H Bishop

[Excerpt] This article examines the causal connections between these two phenomena: changes in the academic achievement of high school graduates and changes in the payoff to college. Four specific questions are addressed. The questions and the answers generated by our examination of the data are outlined below[...]

The Short-Term Dynamics Of Information Risk, Thomas Henker, Shah A. H. Shah-Idil, Jianxin Wang

Thomas Henker

We introduce an informational approach (IA) for exploring association between variables, an alternative to the prevalent parametric, thus restrictive, regression analysis. The IA uses data to (non-parametrically) construct the joint distribution of variables. Then, it uses theory to develop restrictions on the joint distributions. These restrictions will typically be orderings of functions of conditional distributions induced by the joint distribution. Finally, it attempts refuting the restrictions. We implement IA examining the relation between trading sizes and spreads, a main concern. Following insights and results of Milgrom (1981), Feldman (2004), and Feldman and Winer (2004), we use NYSE data and kernel …

Trust And Investments Across Cultures, Thomas D. Berry, Omur Suer

Thomas D Berry

Existing Knowledge, Knowledge Creation Capability, And The Rate Of New Product Introduction In High-Technology Firms, Ken G. Smith, Christopher J. Collins, Kevin D. Clark

Christopher J Collins

[Excerpt] A field study of top management teams and knowledge workers from 72 technology firms demonstrated that the rate of new product and service introduction was a function of organization members' ability to combine and exchange knowledge. We tested the following as bases of that ability: the existing knowledge of employees (their education levels and functional heterogeneity), knowledge from member ego networks (number of direct contacts and strength of ties), and organizational climates for risk taking and teamwork.