bluuebunny/crossref_metadata_2025 huggingface dataset:
The role of outcome focus within subject positions tied to shareholder value
Authors: Chakhovich Terhi
Published: November 2010

Purpose

This paper seeks to elaborate on how subject positions promoting shareholder value are infused with an outcome focus.

Design/methodology/approach

The study employs Foucault's perspectives on government and the interrelations between objectivity and subjectivity in the analysis of in‐depth case data gathered in one shareholder value‐oriented‐listed company and one non‐listed company.

Findings

The outside financial market discipline that objectifies shareholder value‐oriented company executives makes them subjects in their own organisation, allowing them to redirect discipline onwards and thereby objectify their subordinates. The non‐listed company executives, due to the relatively closed governance structure of their company and the lack of outside ownership, are not subject to such continuous outside discipline; they lack the same access to the means to create tangible outcomes within their organisations. The subject positions promoting shareholder value are focused on outcomes, whereas the non‐listed company subject positions are focused on processes.

Research limitations/implications

The subject positions of actors within different types of non‐listed companies and listed companies without a shareholder focus form a target for future studies.

Originality/value

The study contributes to the literatures on manager subject position formation and shareholder value. These contributions are achieved by uncovering a novel consequence of subject position formation and by revealing a mechanism by which outcome focus is tied with shareholder value.
The effect of building society demutualisation on levels of efficiency at large UK commercial banks
Authors: Webb Robert , Bryce Cormac , Watson Duncan
Published: November 2010

Purpose

This paper aims to investigate the effect of UK building society demutualisation on levels of efficiency at the largest five commercial banks in the UK.

Design/methodology/approach

This research utilises data envelopment analysis (DEA) within a rarely adopted windows framework to analyse efficiency. The study also incorporates a novel risk proxy in the profit‐orientated approach to determine DEA input/output which proves a useful innovation to the methodology.

Findings

The overall aggregate results suggest that converting building societies outperformed their bank counterparts in all areas of efficiency and that scale efficiency dominates pure technical efficiency. Interestingly, the results also indicate that the level at which institutions continue to find economies of scale had increased when compared to previous research.

Originality/value

The period of building society demutualisation offers an empirical opportunity to examine deregulation upon market participants. It is felt that this study offers academics, regulators and participants within the financial services environment an insight into the efficiency impact of deregulation.
Assessing effectiveness and compliance of banking boards
Authors: Carretta Alessandro , Farina Vincenzo , Schwizer Paola
Published: November 2010

Purpose

This paper aims to develop a model to assess the effectiveness and compliance of bank boards, taking into account their unique characteristics, financial industry standards and regulations.

Design/methodology/approach

The literature on the roles and effectiveness of boards and directors in the financial industry is reviewed.

Findings

The main finding in the literature suggests that evaluating the effectiveness of a board must include characteristics of the entire board as well as individual contributions of directors.

Practical implications

Banking boards, more than in the past, must proactively evaluate their effectiveness and compliance with existing rules.

Originality/value

The paper proposes a model for assessing the effectiveness and compliance of boards and directors of banking organizations, considering their characteristics, financial industry standards and regulations.
Shari'asupervision of Islamic financial institutions
Authors: Nathan Garas Samy , Pierce Chris
Published: November 2010

Purpose

The governance structure of Islamic financial institutions (IFIs) implements Islamic canon law (Shari'a) into business transactions throughShari'asupervision processes. This paper aims to defineShari'asupervision and examineShari'asupervisory councils (both within and outside the Central Bank),Shari'aconsulting firms,Shari'aadvisors, andShari'aSupervisory Boards (SSB). It also discusses the importance of the hierarchical position of SSBs and evaluates their objectives and functions.

Design/methodology/approach

The paper reviews a wide range of theoretical literatures especially recent proceedings of relevant conferences in the Gulf Cooperation Council (GCC) countries along with the standards of the Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI). A framework for understanding the role of the SSB is developed suggesting a set of objectives and functions for the SSB.

Findings

The paper finds a lack of standardization among the IFIs concerning the position of the SSB within the corporate hierarchy. Moreover, the SSB is found to control the IFIs activities more than the other types ofShari'asupervision such asShari'aconsulting firms andShari'aadvisors.

Research limitations/implications

The research focuses exclusively on the GCC countries and excludes the other Middle East and Far East countries whereShari'asupervision might have different forms.

Social implications

The research provides guidelines for IFIs in defining the SSB role in their governance structure and recommends the SSB among the other forms ofShari'asupervision (Shari'aconsulting firms andShari'aadvisors) in controlling the IFIs activities.

Originality/value

This study contributes to the literature gap about the governance of IFIs. It is one of the first studies that provide a conceptual foundation for the SSB role in the governance structure of IFIs.
Understanding non‐work relationships in developmental networks
Authors: Marcinkus Murphy Wendy , Kram Kathy E.
Published: November 2010

Purpose

The purpose of this study is to explore the different contributions of work and non‐work relationships that comprise individuals' developmental networks to career success.

Design/methodology/approach

A multi‐method approach provides a rich understanding of how work and non‐work developmental relationships combine to support individuals' careers. Survey data were analyzed from 254 working adults who were also part‐time MBA students. Semi‐structured interviews were conducted with 37 participants.

Findings

Quantitative results indicate that non‐work developers provide more overall support than work developers. Support from non‐work developers is positively associated with career satisfaction and life satisfaction. In contrast, support from work developers is positively associated with salary level and career satisfaction. Qualitative data indicate differences in the sub‐functions and quality of support offered by work versus non‐work relationships, particularly in terms of role modeling.

Research limitations/implications

Developmental relationships from different domains emphasize different sub‐functions of support and differentially affect career outcomes. While broad functions – career support, psychosocial support, and role modeling – are identifiable across domains, non‐work relationships provide some distinct sub‐functions from work relationships.

Practical implications

Practicing managers should develop and maintain developmental networks that extend beyond the boundaries of their current organization. Human resource professionals will want to consider how well their initiatives encourage individuals to enlist a variety of potential developers into their networks.

Originality/value

The findings indicate that non‐work relationships are a critical part of developmental networks and individuals' career success.
Career management tactical innovations and successful interorganizational transitions
Authors: Power Sally J.
Published: November 2010

Purpose

The purpose of this paper is to identify the major variables that should be studied when exploring the relationship of innovations in career management tactics and successful or unsuccessful interorganizational transitions.

Design/methodology/approach

This study takes a conceptual stance, using the careers and diffusion of innovation literature to identify the major variables.

Findings

Two innovations and two major refinements in career management tactics suggested by contemporary career concepts are identified, personal criteria for transition success are described, and likely barriers to accepting these tactical innovations are hypothesized. Other factors likely to affect transition success are also revealed by analyzing a conceptual model of interorganizational transition success.

Originality/value

The paper introduces the idea that the use of new career management tactics might be related to interorganizational transition success or the lack of it. It proposes one method of developing quantitative data about how personal career management may be changing, as well as providing normative data about perceptions of successful and unsuccessful interorganizational transitions. In addition, a survey based on these concepts would uncover the primary perceptual barriers to the adoption of the new career tactics by employees.
Restless and confused
Authors: Brotheridge Céleste M. , Lee Raymond T.
Published: November 2010

Purpose

The purpose of this study is to examine the nature of the emotions experienced by targets of bullying in the workplace.

Design/methodology/approach

A sample of 180 employees in Canada took part in a cross‐sectional self‐report survey study.

Findings

The study found that, for men, in the presence of belittlement and work being undermined, verbal abuse was negatively associated with confusion, suggesting an active coping strategy. In contrast, for women, in the presence of belittlement and work being undermined, verbal abuse was positively associated with confusion, suggesting a passive coping strategy.

Research limitations/implications

Although this study's cross‐sectional methodology provided a static snapshot of the emotions of bullying, it may be informative to capture emotions as they arise in response to specific episodes and forms of bullying as well as in response to repeated acts of bullying.

Practical implications

Workers should be offered resources for understanding and coping constructively with their emotions, training in interpersonal sensitivity to become more aware of and responsive to others' feelings, and the opportunity to work in respectful workplace climates.

Originality/value

Specific emotions were examined that are associated with exposure to different forms of bullying, and the career‐related implications of these findings are discussed.
Regulatory focus at work
Authors: Brenninkmeijer Veerle , Demerouti Evangelia , le Blanc Pascale M. , Hetty van Emmerik I.J.
Published: November 2010

Purpose

The purpose of this study is to examine the moderating role of regulatory focus in the job demands‐resources model.

Design/methodology/approach

A questionnaire survey was conducted among 146 teachers in secondary education. It was expected that detrimental effects of job demands (i.e. workload, interpersonal conflict) on emotional exhaustion would be more pronounced among individuals with a strong prevention focus (oriented towards safety and security). Favorable effects of job resources (i.e. autonomy, social support) on motivational outcomes were expected to be more pronounced among individuals with a strong promotion focus (oriented towards growth and development).

Findings

The hypotheses regarding the moderating role of prevention focus were confirmed, but the moderating effect of promotion focus appeared to be exactly opposite to expectations. The effect of job resources on motivational outcomes was more pronounced for individuals with a weak promotion focus.

Originality/value

To the best of one's knowledge, this is the first study to examine the role of regulatory focus in the job demands‐resources model. The study shows that regulatory focus is important in explaining individual responses to job demands and resources and may therefore be a relevant factor in career development.
Recasting public relations roles: agents of compliance, control or conscience
Authors: Sison Marianne D.
Published: November 2010

Purpose

The purpose of this paper is to reconceptualize public relations roles, particularly the organizational conscience role, by examining practitioner involvement in organizational value setting.

Design/methodology/approach

Australian communication practitioners were interviewed to ascertain practitioner involvement in organizational value setting. The interview results were subjected to a multiple perspective analysis, which was used to develop a new framework for public relations roles.

Findings

The research found that most respondents were involved in organizational value setting, albeit at the implementation stage. The results also showed the potential for practitioners to extend their involvement to a more leadership‐oriented critical inquiry role. Based on this analysis, this paper proposes three agency roles: agency of corporate compliance, agency of concertive control, and an agency of critical conscience.

Research limitations/implications

The small sample of Australian respondents and the novel approach used to analyse public relations roles require further research. The results offer new ways for practitioners to enact the conscience role through dialectical inquiry.

Practical implications

The paper includes implications for embedding dialectical inquiry in public relations roles, and for integrating leadership into the technician‐manager role typology.

Originality/value

The paper examines practitioner involvement in organizational value setting through a multiple perspective lens and introduces a new public relations roles framework.
What makes for trusting relationships in online communication?
Authors: Bekmeier‐Feuerhahn Sigrid , Eichenlaub Angelika
Published: November 2010

Purpose

Trust is an ability that characterises human beings as social creatures. It is becoming a key variable in a society strongly influenced by online communication, and in the important field of PR as well. The present study aims to investigate the possibilities of creating trust in online communication when face‐to‐face interaction, which is usually considered to be a crucial element of communication, is missing. This is an empirical study of the factors that promote or hinder the expectation of trust and the willingness to trust.

Design/methodology/approach

The research question is derived from attribution theory and postulates that the assigning of an interlocutor's similarity to or dissimilarity oneself influences the development of trust. Since online communication is a purely verbal exchange, various language styles were experimentally tested to determine whether they would create in the receiver a perception of similarity to or dissimilarity from the sender of the message, so that the receiver would then attribute trustworthiness to the sender.

Findings

The study shows that similarity in language code preference creates the perception of personal similarity and influences the attribution of trustworthiness to the interlocutor.

Research limitations/implications

The results are only relevant for the first stage in the process of building trust.

Practical implications

The experimental results are useful in making an innovative contribution to the development of socio‐technical communication strategies in online communication and suggest further scientific research into the determining factors in online communication and their practical implementation

Originality/value

The current study investigates a field that has been relatively unexamined until now. Its originality is in developing a hypothetical approach from attribution theory and in its experimental design.
The influence of organizational conditions on public relations practitioners' dissent
Authors: Kang Jin‐Ae , Berger Bruce K.
Published: November 2010

Purpose

This study sets out to understand the extent to which public relations practitioners use dissent tactics in the face of organizational unethical decisions, and to examine how organizational environment facilitates such dissent.

Design/methodology/approach

A web‐based survey was conducted with the assistance of the research team of the Public Relations Society of America (PRSA). A systematic random sample of 6,126 practitioners was drawn from the 2008 PRSA membership directory.

Findings

The results reaffirmed that “assertive confrontation” was the most frequently adopted tactic to resist an unethical organizational decision. Practitioners were more likely to confront management in an organization where top leaders do not support or exhibit ethical behavior. When an organization does not have an ethics code, practitioners were more likely to agitate others to oppose the unethical decision. Selective use of information and sabotage tactics were adopted when an organization does not value open communication.

Research limitations/implications

The study was limited to practitioners in the USA, and the response rate was very low (4.02 percent).

Originality/value

As one of the grounding studies in public relations dissent, this research contributes to better understanding how public relations practitioners make an effort to promote organizational ethics by resisting unethical organizational decisions. The study also sheds light on the characteristics and nature of dissent in public relations, an important but little explored area in the field.
Macro social determinants of black police force size
Authors: Chamlin Mitchell B. , Sanders Beth A.
Published: November 2010

Purpose

Consistent with both conflict and economic theories of crime control, recent research indicates that there is a linear, positive association between the racial composition of cities and black employment as law enforcement officers. The purpose of this paper is to distinguish between these competing explanations for variations in the racial make‐up of police departments and examine the nonlinear effects of the relative population size of blacks on black police force size for a sample of US cities.

Design/methodology/approach

The paper specifies and estimates four OLS regression equations to assess the linear and nonlinear effects of the percentage of blacks on black police force size for a sample of US cities.

Findings

As predicted by economic theory, the percentage of blacks exhibits a positive, nonlinear relationship with black police force size. Thus, it would appear that as their relative population size increases, blacks are able to translate their numerical advantage into pressure resources to secure coveted positions in law enforcement.

Research limitations/implications

While the demonstration of a significant, nonlinear relationship between the percentage of blacks and black police force size lends substantial credence to economic theory, it reveals nothing about the manner in which numerical advantage is converted into political clout and, ultimately, employment in law enforcement (or other municipal agencies). Clearly, if a better understanding this process us ti be gained, measures need to be identified and devised for the casual mechanisms that mediate the influence of the relative population size of blacks on black police force size.

Originality/value

This paper represents the first attempt to distinguish between economic and conflict explanations for variations in black police force size among municipalities.
Effective leaders and leadership in policing: traits, assessment, development, and expansion
Authors: Schafer Joseph A.
Published: November 2010

Purpose

Police leaders and leadership remain understudied within existing criminal justice scholarship. Using data derived from police supervisors participating in the Federal Bureau of Investigation (FBI) National Academy program, the purpose of this paper is to examine effective leaders and leadership. Specific consideration is given to the traits and habits of effective and ineffective leaders, the assessment of leadership efficacy, the development of leaders, and the barriers to the expansion of more effective leaders and leadership in contemporary policing.

Design/methodology/approach

Surveys were administered to over 1,000 police supervisors. Respondents ranked the traits and habits of effective and ineffective leaders, methods to evaluate leadership efficacy, and barriers to the expansion of more effective leaders and leadership. Though a convenience sample, the supervisors represent a diverse mix of police agencies of various sizes and types from around the world.

Findings

Ratings suggest respondents saw effective and ineffective leaders as expressing nearly opposite sets of traits and habits. Efficacy was most strongly linked with integrity, work ethic, communication, and care for personnel; ineffective leaders were characterized as failing to express these traits. Respondents cast leadership development as a process best‐achieved through a mixture of training/education, experience, and feedback. Surprisingly, the most highly‐rated barriers to the expansion of effective leaders and leadership practices were not fiscal, but cultural, structural, and political.

Research limitations/implications

Findings suggest key policy implications for police organizations and the policing profession. Many highly‐rated traits and habits may be linked with personality traits; this could complicate the capacity of leadership development initiatives to enhance these behaviors. Results suggest development programs need to do more than simply expose students to a diverse set of theories and perspectives of leadership; mentoring and guided experience were also rated as helpful. Major barriers to the expansion of effective leadership were not issues easily or quickly overcome, complicating the long‐term prospects of enhancing the quality of leadership within policing.

Originality/value

Given the paucity of systemic and large‐scale studies of police leadership, the findings offer important parameters to guide future research efforts. Though some results validate what might be assumed about police leadership, that validation is largely absent from the extant literature. The results provide a starting basis to guide subsequent research assessing the outcomes, evaluation, and development of police leaders.
The feasibility and practicability of police training
Authors: Smets Lotte , Pauwels Christina
Published: November 2010

Purpose

Although there is an international consensus concerning how police investigative interviews should be adequately and reliably conducted, daily police interview practices are still rather poor. It is hypothetically assumed that this may be caused by unsatisfactory interview training programmes. The purpose of this paper is to focus on a new type of interviewing training, the individual coaching project, where interpersonal interview competences are being defined and optimised.

Design/methodology/approach

Building upon previous studies, this paper reflects the outcome of an elaborate process concentrated on exploring new investigative interview training opportunities. In addition the interviewer's perceptions of feedback and mentoring were evaluated in order to study the feasibility and practicability of the individual coaching project.

Findings

Results showed that 72 per cent of the participating interviewers were very eager about their project participation. Almost all interviewers thought the coaching project was very worthwhile and instructive, and believed they really developed and optimised their interview skills.

Originality/value

The present paper innovatively contributes to the current discussion concerning investigative interviewing and training by concentrating and defining the role and necessity of ongoing feedback. Moreover this paper concentrates on the content of this new training project, which can be of high interest for the daily police interview practices.
An examination of police use of force utilizing police training and neighborhood contextual factors
Authors: Lee Hoon , Jang Hyunseok , Yun Ilhong , Lim Hyeyoung , Tushaus David W.
Published: November 2010

Purpose

The purpose of this paper is to examine police use of force using individual, contextual, and police training factors, expanding prior research by including multiple police agencies in the sample, thus producing research findings that can be more easily generalized.

Design/methodology/approach

The data for the current study were derived from several primary sources: the Interuniversity Consortium for Political and Social Research (ICPSR). Census, Uniform Crime Reports (UCR), Bureau of Labor Statistics (BLS), and 1997 Law Enforcement Management and Administrative Statistics (LEMAS).

Findings

Among individual level variables, age and arrestee's resistance were significant explanatory factors. Violent crime rate and unemployment rate were significant factors as the neighborhood contextual variables. Finally, in‐service training was a significant organizational‐level explanatory factor for levels of police use of force.

Originality/value

The paper bridges the gap in research between contextual factors and police use of force. It also deepens our understandings of the association between organizational factors and use of force by incorporating police training into the analytical model.
Measuring public perceptions of the police
Authors: Maguire Edward R. , Johnson Devon
Published: November 2010

Purpose

The purpose of this paper is to test Mastrofski's six‐dimensional conceptualization of perceived service quality of the police.

Design/methodology/approach

The paper draws on data collected from a mail survey of residents in a suburban Virginia (USA) community and uses confirmatory factor analysis to test the six‐dimensional model of service quality.

Findings

The six‐dimensional model does not fit the data. Instead a one‐factor model fits the data, suggesting that public perceptions of police service quality are a one‐dimensional construct.

Research implications

Further research is necessary on two fronts. First, research should seek to determine whether the findings are consistent across different community contexts and types of samples. Second, research on related perceptual constructs, including procedural justice and legitimacy, should explore measurement properties in more detail.

Originality/value

This is one of few studies to examine the construct validity of public perception measures in police research.
Improving service provision through better management and measurement of customer satisfaction in facilities management
Authors: Tucker Matthew , Pitt Michael
Published: November 2010

Purpose

The purpose of this paper is to investigate the application of a customer performance measurement system (CPMS) to demonstrate how facilities management (FM) organisations can enhance their existing processes for measuring the customer satisfaction of their service provision.

Design/methodology/approach

Customer performance measurement in FM is the process of capturing, measuring, and improving the satisfaction of FM customers. A generic CPMS was developed that FM organisations can adopt to improve their existing service provision. The CPMS was developed using a mixed methods approach was adopted. An instrumental case study was used to test the CPMS. The case study represented what was deemed as a typical FM organisation in the UK. The effectiveness of the CPMS application was first validated internally by the instrumental case study. A series of collective case studies were then used to validate the CPMS externally, by testing a series of other FM companies in the UK to provide further understanding of the potential application of the CPMS.

Findings

The findings suggest that by adopting a strategic model that incorporates a balance of quantitative and qualitative methods to gain customer satisfaction of FM service provision, can enhance an FM organisation's existing processes of gaining customer satisfaction.

Originality/value

Although there are many studies researching performance measurement in FM, there is a lack of knowledge on the application of customer performance measurement. This paper contends that there is a need to develop a mixed methods system that is not limited to gaining quantitative findings of customer satisfaction, but also gains wider qualitative findings that investigate customer expectations and perceptions of FM service provision. Generic customer satisfaction benchmarks in the UK FM industry were also established, and formed a crucial component of the CPMS.
Globalisation and corporate real estate strategies
Authors: Too Linda , Harvey Michael , Too Eric
Published: November 2010

Purpose

The purpose of this paper is to examine the impact of globalisation on corporate real estate strategies. Specifically, it seeks to identify corporate real estate capabilities that are important in a hypercompetitive business climate.

Design/methodology/approach

This paper utilises a qualitative approach to analyse secondary data in order to identify the corporate real estate capabilities for a hypercompetitive business environment.

Findings

Globalisation today is an undeniable phenomenon that is fundamentally changing the way business is conducted. In the light of global hypercompetition, corporate real estate needs to develop new capabilities to support global business strategies. These include flexibility, network organization and managerial learning capabilities.

Research limitations/implications

This is a conceptual paper and future empirical research needs to be conducted to verify the propositions made in this paper.

Practical implications

Given the new level of uncertainty in the business climate, that is, hypercompetition, businesses need to develop dynamic capabilities that are harder for competitors to imitate in order to maintain what is considered a “momentary” competitive advantage. The findings of this paper are useful to guide corporate real estate managers in this regard.

Originality/value

This paper is original in two ways. First, it applies the strategic management concept of capabilities to corporate real estate. Second, it links the key challenge that businesses face today, i.e. globalisation, to the concept of capabilities as a means to maintain competitive advantage.
Diversification, hedging, and “pacification”
Authors: Powers Michael R.
Published: November 2010

Purpose

The purpose of this paper is to explore the roles of diversification, hedging, and a third risk‐reduction process – “pacification” – in risk finance.

Design/methodology/approach

After briefly reviewing the concepts of diversification and hedging, a simple mathematical model is offered for reducing the standard deviation of a portfolio of traditional “insurance” and/or other financial risks.

Findings

The findings show that: neither diversification nor hedging, by itself, can guarantee a reduction of a portfolio's standard deviation; diversification and hedging, taken together, are still insufficient to guarantee a reduction of a portfolio's standard deviation; but either diversification or hedging, taken together with pacification, is sufficient to guarantee a reduction of a portfolio's standard deviation.

Originality/value

The paper provides a simple mathematical model for diversification and hedging, and also quantifies a further risk‐reduction process (pacification).
An intergenerational cross‐country swap
Authors: Padovani Miret , Vanini Paolo
Published: November 2010

Purpose

The purpose of this paper is to address the issue of intergenerational and international sharing of longevity and growth risks. Current research on worldwide demographic changes highlights the importance of longevity risk on financial markets and the need to devise optimal hedging vehicles.

Design/methodology/approach

The paper presents a potential financial innovation between two countries at different stages of economic development and with different long‐term challenges. This 30‐year‐long swap is structured in such a way to capture the different timing of needed funds of the two countries and the funding capabilities of each generation: the more developed economy requires funds in the future to cover expenses for its ageing population, while the developing economy needs funds today to pay for educational, technological, and other infrastructural services. To price the swap, the paper applies an exponential‐utility‐based pricing method and defines an interval of prices allowing a contract to be agreed upon.

Findings

Via the exponential‐utility‐based pricing method, the paper shows how the bid‐ask spread varies with respect to the governments' risk and time preferences.

Originality/value

The paper is believed to be the first to illustrate the structuring and pricing of a long‐term longevity swap between two countries at different stages of economic development and to discuss practical challenges derivative structures would face if they were to implement such a strategy.
Estimation of a Cox process for credit spreads with semi‐stochastic intensity
Authors: Corelli Angelo
Published: November 2010

Purpose

The paper aims to present a framework for modeling defaultable securities and credit derivatives which allows for dependence between market risk factors and credit risk.

Design/methodology/approach

The default event is modeled using the Cox process when the stochastic intensity represents the credit spread. A method of one‐sided risk approach is used in that default is modeled through a random intensity of the default time.

Findings

The paper proposes a modified Cox model for defaultable interest rate term structure when the forward rate volatilities functions depend on time to maturity, on the instantaneous defaultable spot rate and on the entire forward curve. The Cox process describes the default event and its intensity denotes the credit spread.

Research limitations/implications

A method of one‐sided risk approach sacrifices some generality. Recursive models are better to reach the latter.

Practical implications

The main feature of the framework is that it reduces the technical issues of modeling credit risk to the same issues faced when modeling the ordinary term structure of interest rates. Results show a clear maturity‐dependent path.

Originality/value

A main application of this model is pricing of claims in which the credit rating of the defaultable party enters explicitly. An implementation is given in a simple one factor model in which the affine structure gives closed form solutions.
US financial reform law: key changes for private fund managers under the US Investment Advisers Act and changes to certain investor eligibility qualifications
Authors: Holton Thomas John , Raymond Paul B. , Stefanak Curtis
Published: November 2010

Purpose

The purpose of this paper is to explain certain SEC and state registration, disclosure, and recordkeeping requirements for US and non‐US investment advisers and fund managers as defined in the Dodd‐Frank Wall Street Reform and Consumer Protection Act of 2010.

Design/methodology/approach

The paper explains SEC and US state registration requirements; the elimination of the “private adviser” exemption; the creation of new, narrower adviser registration exemptions; reporting and recordkeeping requirements relating to private funds; information and confidentiality provisions for private funds; the SEC's authority to make rules and regulations defining technical, trade, and other terms used in the amendments set forth in the Act; provisions of the “Volcker Rule” concerning banking entities' ownership interests in hedge funds and private equity funds; the adjustment of the “qualified client” test for inflation; the definition of an “accredited investor”; and disqualifications from using Regulation D.

Findings

The Act will require many US and non‐US investment advisers and fund managers to register with the SEC under the Investment Advisers Act of 1940, particularly those advisers that have previously relied on the “private adviser” exemption from SEC registration, which has been eliminated by the Act. The Act will also impose new disclosure and recordkeeping requirements on many investment advisers, including some who are not required to register with the SEC.

Originality/value

The paper provides expert guidance from experienced financial services lawyers.
US Financial Reform Law: key changes for non‐US advisers and certain investors in hedge and private equity funds
Authors: Godfrey Anne Marie , Holton Thomas John , Raymond Paul B. , Stefanak Curtis
Published: November 2010

Purpose

The purpose of this paper is to to summarize Advisers Act registration implications for non‐US advisers that now rely on the “private adviser” exemption from Advisers Act registration and to summarize the principal changes affecting investors in funds managed by non‐US advisers contained in the Dodd‐Frank Wall Street Reform and Consumer Protection Act of 2010.

Design/methodology/approach

The paper explains the elimination of the “private adviser” exemption and the creation of the narrower “foreign private adviser” and other exemptions from Adviser Act registration, reporting and recordkeeping requirements relating to private funds; the Dodd‐Frank Act's provisions for information sharing by the SEC and the confidentiality of private fund information; the “Volcker Rule's” limitation of investment by banking entities and non‐bank financial companies in hedge funds and private equity funds; changes in the definition of “accredited investor”; and the future adjustment of the “qualified client” test for inflation.

Findings

The Dodd‐Frank Act will require many investment advisers and fund managers with their principal offices and places of business outside the USA to register with the SEC and to observe, with respect to US clients, the full spectrum of SEC regulations that apply to registered investment advisers. The Act will also impose new disclosure and recordkeeping requirements on many non‐US advisers.

Originality/value

The paper provides expert guidance from experienced financial services lawyers.
Enhanced protection of investors and other changes to securities regulations
Authors: Martin David B.H. , Gay Brandon K.
Published: November 2010

Purpose

The purpose of the paper is to summarize and discuss selected investor‐protection and other related enhancements to federal securities regulation contained in the Dodd‐Frank Wall Street Reform and Consumer Protection Act.

Design/methodology/approach

The paper discusses the following investor protections and related enhancements: enhanced whistleblower incentives and protections; expanded SEC investor‐protection administrative functions including the establishment of an Office of the Investor Advocate, the appointment of an Ombudsman, and the establishment on a permanent basis of an Investor Advisory Committee; expanded enforcement authority against aiders and abettors of securities violations; evaluation of the existing standards of care employed by broker‐dealers and investment advisers; a narrowing of exemptions from registration under the Securities Act, including by directing the SEC to enact rules to disqualify “bad actors” from relying on Rule 506 of Regulation D and adjusting the definition of “accredited investor” for purposes of the SEC's rules under the Securities Act; an exemption for certain small companies from the auditor attestation requirements of Sarbanes‐Oxley; provisions to increase the oversight and accountability of credit rating agencies; and steps to bolster the regulatory oversight of the municipal securities market, including by creating a new class of regulated intermediaries – “municipal advisors”

Findings

The Dodd‐Frank Act leaves many critical issues to be fleshed out through further SEC rulemaking and in the implementation phase, including: procedures regarding whistleblower information submitted to the SEC; the actual role of the Office of the Investor Advocate; whether the SEC will adopt a broker‐dealer fiduciary‐duty standard of care; additional texture on rules disqualifying bad actors from relying on Rule 506 of Regulation D; adjustments to net worth requirements related to accredited investor status; rules on disclosure of credit ratings in registration statements; and qualification standards for municipal advisors.

Practical implications

Public companies and other persons affected by the Dodd‐Frank Act should: keep abreast of key developments in the rulemaking phase; possibly participate in the rulemaking process: develop realistic strategies to respond to the proposed rules; develop compliance action plans; and review whistleblower‐related compliance policies and procedures.

Originality/value

The paper provides expert guidance from experienced securities and financial services lawyers.
Dodd‐Frank beefs up SEC and CFTC enforcement
Authors: Bayless David , Kornblau David L.
Published: November 2010

Purpose

The purpose of the paper is to summarize key provisions in the Dodd‐Frank Wall Street Reform and Consumer Protection Act Affecting SEC and CFTC Enforcement.

Design/methodology/approach

The paper summarizes provisions on new SEC causes of action, including greater power to bring aiding‐and‐abetting claims and authorization to bring cases based on “control person” liability; other new SEC powers, including broader monetary penalty authority in administrative proceedings, a collateral bar that bars a person from any part of the securities business, codification of the SEC's extraterritorial enforcement jurisdiction, and expansion of nationwide service of process to federal court cases; monetary incentives and protections for whistleblowers; increased SEC funding; and CFTC enforcement powers, including a fraud liability provision, expanded liability for manipulation or providing false or misleading information, prohibition of various practices, authority to establish business conduct requirements, nationwide subpoena power, and the ability to seek various sanctions.

Findings

Dodd‐Frank has ramped up the enforcement mandates of the SEC and the CFTC more than at any time since the agencies were created. Their jurisdictional reach is broader, the causes of action they can bring have increased, and the remedies have expanded.

Practical implications

Public companies, regulated entities, and hedge funds, as well as their officers, directors, and employees, should brace themselves and prepare for a significant increase in enforcement activity by both the SEC and the CFTC.

Originality/value

The paper provides expert guidance from experienced financial services lawyers.
Supreme Court holds that §10(b) of the Exchange Act applies only to domestic securities transactions
Authors: Frischer Harry , Dropkin Charles E. , Scullion Jennifer R. , Spinogatti Richard L.
Published: November 2010

Purpose

The purpose of this paper is to explain the June 24, 2010 decision of the US Supreme Court in Morrison v. National Australia Bank Ltd concerning the territorial scope of the Securities Exchange Act of 1934 (“Exchange Act”).

Design/methodology/approach

The paper describes the complaint, the reasoning of the earlier lower court decision, the reasoning of the Supreme Court decision, and the practical effects of the Supreme Court decision.

Findings

Addressing the territorial scope of the Exchange Act for the first time, the Court rejected the widely applied “conduct” and “effects” tests and instead prescribed a new “transactional” test. Finding no affirmative indication that §10(b) of the Act applies extraterritorially; the Court found that its application depends on whether the purchases and sales of securities were made specifically in the USA, and not upon the place where a deception may have originated.

Originality/value

The paper provides expert guidance from financial services lawyers.
FinCEN and regulators issue joint guidance on obtaining beneficial ownership information, potentially expanding certain financial institutions' USA PATRIOT Act obligations
Authors: Santangelo Betty , Stokes Amber
Published: November 2010

Purpose

The purpose of this paper is to describe guidance (“the Guidance”) issued by the Financial Crimes Enforcement Network (“FinCEN”), the Federal Banking Regulators and the Securities and Exchange Commission on obtaining beneficial ownership information for certain accounts and customer relationships.

Design/methodology/approach

The paper summarizes the principal content of the Guidance, including the importance of customer due diligence (CDD) policies as the cornerstone of a Bank Secrecy Act/Anti‐Money‐Laundering program, the need for a CDD program to identify and verify the beneficial owners of an account, steps that should be included in CDD procedures to protect against heightened risks related to the beneficial owners of an account, enhanced due diligence that is appropriate for accounts that pose heightened risk, the suggestion in the Guidance to implement CDD policies and procedures on an enterprise‐wide basis, and requirements for private bank account and correspondent bank account due diligence programs.

Findings

The Guidance appears to expand certain concepts previously applied to banks by the Federal Banking Regulators to other financial institutions, including broker‐dealers, futures commission merchants, mutual funds, insurance companies, and money services businesses. It also appears to expand concepts set forth in Rule 312 of the PATRIOT Act beyond private banking and correspondent banking.

Originality/value

The paper provides expert guidance from experienced financial services lawyers.
In Rule 12b‐1 overhaul, SEC proposes dramatic changes to mutual fund distribution arrangements
Authors: Greene Nathan J.
Published: November 2010

Purpose

The purpose of this paper is to explain the SEC's proposal to establish a new framework for mutual fund distribution charges by replacing Rule 12b‐1 with a new Rule 12b‐2 combined with an amended Rule 6c‐10.

Design/methodology/approach

The paper discusses the background of ongoing distribution charges permitted under Rule 12b‐1; explains the SEC's proposal to establish a hard cap to the percentage rate of the charges that can be deducted from funds over time and to require fund boards of directors to make annual determinations of the reasonableness, fairness, and effectiveness of front‐end sales loads and ongoing sales charges; provides a summary of the new cap; explains the proposed disclosure changes, fee externalization alternative, and timetable and compliance dates; discusses various commercial and legal issues to consider in light of the proposal.

Findings

Long uncomfortable with a registered mutual fund's use of its own assets to pay for the distribution of its shares, the SEC is proposing a completely new approach.

Originality/value

The paper provides expert guidance from experienced financial services lawyers.