bluuebunny/crossref_metadata_2025_split huggingface dataset:
State‐dominant and non‐state‐dominant ownership concentration and firm performance
Authors: Hess Kurt , Gunasekarage Abeyratna , Hovey Martin 
Published: October 2010

PurposeThis paper aims to investigate the relationship between ownership structure and performance for a comprehensive sample of Chinese listed firms for the years 2000‐2004. In particular, the paper seeks to explore the effect of the dominance of state and private blockholders and control on firm performance. It aims to use a more differentiated approach than previous research on the subject, which has mainly focused on the effects of the pervasive state ownership on firm values. Accordingly, the main theme of the paper intends to relate to the analysis of the effects of private blockholders on firm value.Design/methodology/approachThe paper tests the ownership‐performance relationship for the state and for sub‐samples with predominantly private shareholders. The paper uses both an ordinary least squares and a two‐stage least squares analysis, which treats ownership concentration as endogenous.FindingsThe paper finds evidence that large private blockholdings are to the benefit of firm value for the full sample. Conversely, for smaller samples of companies without or with very low shareholdings by the various state players, there is some evidence that large private block shareholdings might be to the detriment of firm value.Originality/valueThe study contributes to the literature by presenting a more comprehensive treatment of the ownership‐performance relationship of listed firms in China. The main theme of the paper relates to ownership concentration and the effects of private blockholders on the performance of firms, in addition to the endogeneity of ownership. It also contributes by utilising the alternative ownership classification system developed by the National University of Singapore.
Skewness in hedge funds returns: classical skewness coefficients vs Azzalini's skewness parameter
Authors: Eling Martin , Farinelli Simone , Rossello Damiano , Tibiletti Luisa 
Published: October 2010

PurposeRecent literature discusses the persistence of skewness and tail risk in hedge fund returns. The aim of this paper is to suggest an alternative skewness measure, Azzalini's skewness parameter delta, which is derived as the normalized shape parameter from the skew‐normal distribution. The paper seeks to analyze the characteristics of this skewness measure compared with other indicators of skewness and to employ it in some typical risk and performance measurements.Design/methodology/approachThe paper first provides an overview of the skew‐normal distribution and its mathematical formulation. Then it presents some empirical estimations of the skew‐normal distribution for hedge fund returns and discusses the characteristics of using delta with respect to classical skewness coefficients. Finally, it illustrates how delta can be used in risk management and in a performance measurement context.FindingsThe results highlight the advantages of Azzalini's skewness parameter delta, especially with regard to its interpretation. Delta has a limpid financial interpretation as a skewness shock on normally distributed returns. The paper also derives some important characteristics of delta, including that it is more stable than other measures of skewness and inversely related to popular risk measures such as the value‐at‐risk (VaR) and the conditional value‐at‐risk (CVaR).Originality/valueThe contribution of the paper is to apply the skew‐normal distribution to a large sample of hedge fund returns. It also illustrates that using Azzalini's skewness parameter delta as a skewness measure has some advantages over classical skewness coefficients. The use of the skew‐normal and related distributions is a relatively new, but growing, field in finance and not much has been published on the topic. Skewness itself, however, has been the subject of a great deal of research. Therefore, the results contribute to three fields of research: skewed distributions, risk measurement, and hedge fund performance.
Analysis of managerial efficiency in insurance sector in the UAE: an emerging economy
Authors: Rao Ananth , Kashani Hossein , Marie Attiea 
Published: October 2010

PurposeThis study sets out to analyze the efficiency and productivity issues of the insurance sector from both the policymakers' and investors' points of view to insulate the business and financial risks of UAE corporate houses.Design/methodology/approachThe paper uses two inputs of “administrative and general expenses”, and “equity and change in legal reserves”, versus two outputs of rate of “return on investments” and “liquid asset to total liabilities ratio” to assess the allocative efficiency of the companies using DEA. Using the the Malmquist productivity index the efficiency is broken down into technical and scale efficiency to evaluate the performance of the insurers.FindingsWhile the scale of operation of insurers is, by and large, acceptable, there is a considerable degree of managerial inefficiency among the insurers, with the least efficiency in 2000, and higher efficiency in 2004. Further, the insurers on average achieved a mere 0.8 percent annual gain in total factor productivity over the period in question.Research limitations/implicationsThe data set is narrow with 19 insurers in the region, which is the limitation.Practical implicationsThe results have policy implications for the regulators and managerial implications for the existing insurers to face the growing competition in the region.Originality/valueThis is the first study to investigate the productivity changes of insurance sector operations in a developing economy: the UAE in the Middle‐East region. The study findings help the insurers to take appropriate managerial steps to improve the efficiency of their operations.
The concept of the balanced company and its implications for corporate governance
Authors: Talaulicar Till 
Published: October 2010

PurposeThe concept of the balanced company refers to a company that is in good relations with its internal and external constituencies. Establishing such a balanced company largely depends on the corporate governance of the firm. The paper, therefore, aims to develop new insights into the appropriate design of corporate governance that fits with the notion of the balanced company.Design/methodology/approachThe paper is conceptual and integrates various perspectives from stakeholder as well as norm theories to substantiate the appropriate governance system of a balanced company.FindingsThe proposed system of corporate governance rules that the interests of multiple stakeholders have to be considered and adequately balanced when corporate decisions are made. In this system, the interest of the enterprise provides the ultimate criterion to evaluate corporate decisions rather than the interest of one single group of constituencies. Corporate decisions have accordingly to serve the interest of the enterprise and to ensure its sustainable creation of value. This requires a principle based balancing of competing interests when the stakes of diverse constituencies collide.Originality/valueThe paper explicates the notion of the interest of the enterprise, explores the corresponding responsibilities of the board, and explains how competing interests of various constituencies have to be balanced.
Balancing trust and control in organizations: towards a process perspective
Authors: Jagd Søren 
Published: October 2010

PurposeThe purpose of this paper is to show that conceptualizing trust and control as interactively related processes, as opposed to more static conceptualizations of the two concepts and the relations between them, adds importantly towards understanding the challenges involved in balancing of trust and control in organizations.Design/methodology/approachThe paper examines recent literature on the conceptualization of the relation between trust and control in and between organizations.FindingsThe literature review shows that trust and control has been conceptualized as either substituting or complementing each other. Further, it is found that the complementary/substitution debate calls for an explicit conceptualization of the relation between trust and control as an interactive process, in contrast to earlier conceptualizations of trust and control as two relatively static and isolated concepts.Practical implicationsWhile the static perspective on trust and control made the problem of finding a balance between trust and control a once and for all decision the process perspective introduced here implies that balancing trust and control is an ongoing process of balancing and rebalancing. The implication for management is that the problem of balancing trust and control becomes an issue that deserve ongoing attention.Originality/valueThe paper adds to the discussion on the relation between trust and control by showing that the process perspective reframes the problem of balancing trust and control. More generally, by demonstrating the importance of the process perspective on the trust and control interrelation, the paper calls for the wider use of a process perspective for researching the trust‐control nexus.
An ethical justification of profit maximization
Authors: Koch Carsten 
Published: October 2010

PurposeThe purpose of this paper is to investigate whether profit maximizing behaviour can be defended from an ethical point of view, and what possible restrictions should be made on following this interest.Design/methodology/approachThe main structure of the paper is as follows. First, it states the problem. Second, it considers which ethical theory is relevant for evaluating the situation at hand, and argues that rule‐consequentialism is the most appropriate one, but that some constraints in the form of, e.g. protecting human rights must be used as a supplement. Third, it analyses the consequences of profit seeking and profit maximization, and argue that these have a number of beneficial effects. The methodology and approach is one of critical argumentation.FindingsProfit maximization as a firm goal has traditionally been meet with suspicion in the literature on business ethics, being seen as either immoral or amoral. It is argued herein that this practice should be evaluated according to rule‐consequentialist ethics, but supplemented with elements that are more of a deontological ethical character. When seen from this point of view, profit maximization may be seen as ethical. This requires, however, that a number of institutional and other requirements are fulfilled.Research limitations/implicationsIn stead of arguing, or taking as a premise, that profit maximization is inherently unethical, researchers should argue which ethical point of view should be used to evaluate such a goal, and then argue whether business practices are ethical or not. In addition, business ethics literature should incorporate basic insights from economic theory.Originality/valueThe paper provides new insights in the ethical nature of profit maximization as the main corporate value. More generally, we argued that, given it is in the owner's perceived interest(s), it is ethically justifiable for executives to take profit maximization as their ultimate goal in running their businesses, as long as they do not violate law, norms or social customs.
Balancing values and economic efficiency in the public sector!
Authors: Storm Pedersen John , Dahl Rendtorff Jacob 
Published: October 2010

PurposeThe paper discusses the balance between values and economic efficiency in the public sector in comparison with the private sector. The argument is that the public sector, hence the public welfare service institutions, can learn much from the private service sector, hence the private service firms with regard to the relation to values, ethics, corporate social responsibility (CSR) and efficiency in order to improve the balance between values and efficiency in the public sector.Design/methodology/approachThe paper discusses the concept of balance in relation to the development of the management of private service companies as a useful alternative to new public management (NPM). It discusses this with regard to three issues: the evolution of the management of private companies; what can the public sector, hence the public welfare institutions, learn from the evolution of management of private companies? How would it be possible for governments to work for an alternative to NPM, on the basis of the experiences of management of private companies, improving the balance between values and economic efficiency in the public sector?FindingsIt is argued that a deadlock in the development of efficiency management in the public sector, hence in the public welfare service institutions, is created. It is argued, furthermore, that this deadlock to a great extent, paradoxically, is created because of the focusing on NPM for almost two decades as the most important tool to develop efficiency management in the public sector. Finally, it is argued that the experiences in private companies regarding how to find a proper balance between values, ethics, CSR and economic efficiency can be very helpful in developing a strategy within the public sector to unlock the deadlock regarding the development of efficiency management. That is why the experiences of management of the private services companies can become a constructive alternative to the experiences of NPM in the public sector at the level of welfare institutions.Research limitations/implicationsThere would be potential for more research on CSR, business ethics and values‐driven management in relation to the public sector.Originality/valueThe paper offers new insight into the relation between values, CSR and management models in the private and in the public sector.
Mine over matter? Health, wealth and forests in a mining area of Orissa
Authors: Pattanayak Subhrendu , Saha Shubhayu , Sahu Pravash , Sills Erin , Singha Ashok , Yang JuiChen 
Published: October 2010

PurposeThe purpose of this paper is to investigate whether mining can serve as a pathway for economic development despite the environmental externalities. The extensive literature on the “resource curse” phenomenon at the national level generally finds that economic dependence on mineral resources is associated with lower levels of economic growth. This paper shows that further insight can be obtained by studying micro‐level resource curse because of heterogeneity in institutions, natural resources and economic behaviors.Design/methodology/approachThe paper empirically tests the resource curse hypothesis with data from a stratified random sample of 600 households in 20 villages in the mining district of Keonjhar, Orissa. Household surveys were used to collect data on demography, forest dependence, health and household economics. Using geographical information system (GIS), the household data were integrated with secondary spatial data on land cover and location of mines to construct multiple measures of exposure to iron ore mines.FindingsMicroeconometric models demonstrate the multi‐faceted nature of the relationships between mine exposure, forest resources and human welfare. Households closer to mines experience higher incidences of many illnesses, rank lower on indicators of human development and own fewer production assets. They also derive fewer forest benefits because forests are more degraded and less accessible in villages closer to mines.Originality/valueThis analysis remains timely because of on‐going violent conflicts and concern over negative impacts on the welfare of rural populations in the mining areas of India, which is consistent with the notion of a resource curse. The paper's findings on the magnitude of negative impacts can inform the policy discourse (e.g. benefits sharing schemes) related to mining‐led growth.
Some lessons for economists from the financial crisis
Authors: Willett Thomas 
Published: October 2010

PurposeThe purpose of this paper is to discuss implications of the global crisis for economic and financial research and policy.Design/methodology/approachThe paper reviews many recent studies on the crisis and offers the author's views on some of the most important lessons to be drawn from the crisisFindingsThe review counters views that the crisis reflected a basic failure of economics, but agrees that it undercuts some particular theories and approaches to economics. More attention needs to be given to imperfections in the operation of both markets and governments, drawing on insights from behavioral and neuro economics and finance and political economy analysis and recognizing the importance of limited information and uncertainty about correct models. The creation of perverse incentive structures explain a large part of the financial excesses that led to the crisis. Financial considerations need to be integrated much more closely with macroeconomic analysis and financial risk analysis needs to pay more attention to economic considerations. Useful insights can be drawn from many different theories and approaches and we should not expect any one theory to have all the answers. The excesses observed in the advanced economies do not imply that there are not enormous benefits to be gained from further financial liberalization in emerging market economies, but they do show that great care must be taken in establishing strong supervision of such liberalizations and highlight many of the dangers to look out for.Originality/valueThe paper offers a guide to the literature for those interested in learning more about the causes and effects of the crisis and policy responses and offers a number of suggestions for fruitful research topics and policy strategies.
Public services satisfaction and single‐family house prices in the USA
Authors: Larsen James E. , Blair John P. 
Published: October 2010

PurposeThe purpose of this paper is to empirically test whether residents' satisfaction with seven general purpose public services are capitalized in single‐family house prices. The public services investigated are: fire protection, paramedic services, police protection, trash removal, snow removal, street maintenance, and neighborhood parks.Design/methodology/approachThe seven service satisfaction measures, derived from a public opinion survey, are grouped into three variables based on the city department responsible for providing the service and included in a hedonic regression of single‐family house transactions that occurred in Dayton, Ohio.FindingsAll three satisfaction variables are positively related to house price, providing evidence that intra‐jurisdictional differences in the nature of public services are capitalized through market processes.Social implicationsThe strength of the satisfaction measures in the regression model suggests that efforts to improve citizen satisfaction may be an important component of local efforts to stabilize urban neighborhoods and improve property values.Originality/valueThe present study is the first to use transaction prices rather than assessed values to analysis multiple general public services simultaneously. Because almost all previous studies investigate multiple jurisdictions the present study is also fairly unique as it focuses on different locations within a single jurisdiction. The use of survey responses regarding resident satisfaction with public services represents an advance on previous measures of public service provision because it potentially reflects underlying motivations of buyers and sellers very directly.
Factors affecting affordable housing cost in Saudi Arabia
Authors: Assaf Sadi A. , Bubshaitr Abdulaziz A. , Al‐Muwasheer Fawaz 
Published: October 2010

PurposeThe purpose of this paper is to discuss the main factors that affect the construction cost of affordable housing in Saudi Arabia.Design/methodology/approachA survey of 14 consultants, 16 contractors and five real estate investors was performed. The survey included 34 different factors affecting the construction cost of affordable houses and their degree of importance. The severity of those factors was measured by the level of importance and ranked according to the severity index for consultants, contractors and real estate investors and a combination of all respondents.FindingsThere is an agreement (correlation) by each group and the overall ranking by all participants. It was concluded that inadequate labor availability, material standards, design quality and design changes are the most severe factors with relatively high overall scoring.Originality/valueThe paper provides a holistic approach that considers all factors affecting affordable housing in Saudi Arabia and the interplay between them. It will serve as a guide to the focus areas to be considered in policy development aiming at improving conditions in the construction industry for affordable housing programs.
Structural and temporal changes in the housing market and hedonic housing price indices
Authors: Shimizu Chihiro , Takatsuji Hideoki , Ono Hiroya , Nishimura Kiyohiko G. 
Published: October 2010

PurposeAn economic indicator faces two requirements. It should be reported in a timely manner and should not be significantly altered afterward to avoid erroneous messages. At the same time, it should reflect changing market conditions constantly and appropriately. These requirements are particularly challenging for housing price indices, since housing markets are subject to large temporal/seasonal changes and occasional structural changes. The purpose of this paper is to estimate a hedonic price index of condominiums of Tokyo, taking account of seasonal sample selection biases and structural changes in a way it enables us to report the index in a manner which is timely and not subject to change after reporting.Design/methodology/approachThe paper proposes an overlapping‐period hedonic model (OPHM), in which a hedonic price index is calculated every month based on data in the “window” of a year ending this month (this month and previous 11 months). It also estimates standard hedonic housing price indexes under alternative assumptions: no structural change (“structurally restricted”: restricted hedonic model) and different structure for every month (“structurally unrestricted”: unrestricted hedonic model).FindingsResults suggest that the structure of the housing market, including seasonality, changes over time, and these changes occur continuously over time. It is also demonstrated that structurally restricted indices that do not account for structural changes involve a large time lag compared with indices that do account for structural changes during periods with significant price fluctuations.Social implicationsFollowing the financial crisis triggered by the US housing market, housing price index guidelines are currently being developed, with the United Nations, International Monetary Fund, and Organization for Economic Co‐operation and Development leading the way. These guidelines recommend that indices be estimated based on the hedonic method. We believe that the hedonic method proposed here will serve as a reference for countries that develop hedonic method‐based housing price indices in future.Originality/valueIn the many studies involving conventional housing price indices, whether those using the repeat‐sales method or hedonic method, there are few that have analyzed the problem of market structural changes. This paper is the first to construct a large database and systematically estimate the effect that changes in market structure have on housing price indices.