The Song Empire had a larger population, a higher agricultural output, a more efficient infrastructure, and a more extensive monetary system than any previous empire in Chinese history. As local jurisdictions during the eleventh century became entangled in empire-wide economic relations and trans-regional commercial litigation, imperial officials sought to reduce the bewildering movement of people, goods, and money to an immanent cosmic pattern. They reasoned that because money and commerce brought to imperial subjects the goods they required to survive, money (...) and commerce must be beneficent, and because they were beneficent, they must conform to the immanent pattern of the moral cosmos, as did everything else that was enduringly sustaining of life and wellbeing. And because money and commerce conformed to the moral cosmos, officials attempted to understand their workings by analogy with other phenomena that sustained human life, such as the flow of water and the circulation of vital essences through the human body. During the 1030s and 1040s, officials and scholars believed that knowledge of the cosmic pattern lay within their grasp, and that this knowledge would allow them to align culture with nature, and the present with hallowed antiquity. By the 1080s, however, this intellectual optimism had been defeated by irreconcilable disagreements about financial and economic policy. The failure of the attempt to understand finance by natural analogy draws attention to the underlying ideological insistence on moral learning as the basis for political power, and to the very limited range of economic discourse that has been preserved in eleventh-century texts. (shrink)

Historically, there has been little agreement between advocates of radical financial reform and socialist theoreticians. However, in the new circumstances of the twenty-first century, a productive synthesis of these two traditions might be possible. Drawing on the franchise model of credit creation elaborated by Robert C. Hockett and the dysfunctions created by the extreme concentration of private financial institutions, this article outlines a reform agenda that would both democratize finance and facilitate the flow of funds into valuable forms (...) of investment that are currently starved for resources. If the new institutions envisioned in this proposal were able to take root and expand, they could ultimately facilitate a transition to socialism, defined as the subordination of the market to democratic politics. (shrink)

The primary claim of this paper is that intellectual conflicts of interest (COIs) exist but are of lower ethical priority than COIs flowing from relationships between health professionals and commercial industry characterized by financial exchange. The paper begins by defining intellectual COIs and framing them in the context of scholarship on non-financial COIs. However, the paper explains that the crucial distinction is not between financial and non-financial COIs but is rather between motivations for bias that flow (...) from relationships and those that do not. While commitments to particular ideas or perspectives can cause all manner of cognitive bias, that fact does not justify denying the enormous power that relationships featuring pecuniary gain have on professional behaviour in term of care, policy, or both. Sufficient reason exists to take both intellectual COIs and financial COIs seriously, but this paper demonstrates why the latter is of higher ethical priority. Multiple reasons will be provided, but the primary rationale grounding the claim is that intellectual COIs may provide reasons to suspect cognitive bias but they do not typically involve a loss of trust in a social role. The same cannot be said for COIs flowing from relationships between health professionals and commercial industries involving financial exchange. The paper then assumes arguendo that the primary rationale is mistaken and proceeds to show why the claims that intellectual COIs are more significant than relationship-based COIs are dubious on their own merits. The final section of the paper summarizes and concludes. (shrink)

This study fills an important gap in the literature by providing causal evidence of the impact of relaxing financial constraints on corporate social responsibility (CSR). To isolate this causal link, we examine the enactment of anti-recharacterization laws in some U.S. states, an exogenous shock that has strengthened creditor rights and eased financial constraints of the treated firms. Our difference-in-difference analysis suggests that relaxing financial constraints leads to higher CSR. This evidence is more pronounced in financially constrained firms, (...) firms with more analyst dispersion and increased volatility of cash flows. We also find that the most impacted firms are those with increased post-shock debt financing. In sum, our evidence suggests that easing access to external finance drives corporate goodness, in particular in firms that value external financing. (shrink)

This study investigates financial correlates of corporate philanthropy in Fortune 1000 companies using structural equation modeling. The results suggest that cash flow (one of the most discretionary types of organizational slack) has a significant impact on a firm’s cash donations to charitable causes, but monetary donations do not affect firm financial performance. These findings support the accepted view of corporate philanthropy as a discretionary social responsibility and the traditional thinking about firm giving in the business and society literature—that (...) doing well enables doing good. Contrary to some contemporary thinking, the findings imply no significant effect on profits from corporate generosity. (shrink)

The majority of people show persistent poor performance in reasoning about “stock-flow problems” in the laboratory. An important example is the failure to understand the relationship between the “stock” of CO2 in the atmosphere, the “inflow” via anthropogenic CO2 emissions, and the “outflow” via natural CO2 absorption. This study addresses potential causes of reasoning failures in the CO2 accumulation problem and reports two experiments involving a simple re-framing of the task as managing an analogous financial budget. In Experiment 1 (...) a financial version of the task that required participants to think in terms of controlling debt demonstrated significant improvements compared to a standard CO2 accumulation problem. Experiment 2, in which participants were invited to think about managing savings, suggested that this improvement was fortuitous and coincidental rather than due to a fundamental change in understanding the stock-flow relationships. The role of graphical information in aiding or abetting stock-flow reasoning was also explored in both experiments, with the results suggesting that graphs do not always assist understanding. The potential for leveraging the kind of reasoning exhibited in such tasks in an effort to change people's willingness to reduce CO2 emissions is briefly discussed. (shrink)

Despite the enormity of the financial losses flowing from the 2008 financial crisis and the outrageousness of the conduct that led up to it, almost no individual involved has been prosecuted for criminal conduct, much less actually gone to prison. What this chapter argues is that the failure to punish those in management for their role in this misconduct stems from a misunderstanding of the need to prove that they personally knew of this wrongdoing and harbored an intent (...) to defraud. But not only would negligence be a sufficient legal and moral basis for imposing terms of imprisonment in these cases, mere causal responsibility would also be enough, for causal responsibility has embed in it all we need to find those causally responsible morally responsible too, and once some basis for moral responsibility is established, the imposition of terms of imprisonment is both legally permitted and morally just. (shrink)

This article analyzes the Turkish central bank's “managed uncertainty” policy after the global financial crisis. During 2010–14, the central bank intentionally generated uncertainty around short-term interest rates, using the level of predictability faced by financiers as a tool to buffer the domestic economy from volatile capital flows. How did the central bank implement this unconventional policy? Building on interview data and public texts, the article argues that the surge in capital inflows after the crisis sourced a debt-led, financialized (...) economic growth model and deepened Turkey's reliance on external financing. The central bank could diverge from the financial sector's policy preferences despite Turkey's increased foreign capital dependence because the availability of low-cost, ample, private funding opportunities temporarily expanded policymakers’ room to maneuver. However, operating vis-à-vis an unsustainable growth regime, the central bank had to revert to orthodoxy in 2014 due to declining investor confidence and capital flight. This article contributes to the literature on the structural power of finance by demonstrating how finance derives its structural power from funding financialized growth, not productive investments. It also shows that financial structural power varies based on the source and cost of external financing beyond the degree of foreign capital dependence. (shrink)

Money markets are at the heart of financialized capitalism, as those markets that provide the funding liquidity needed for credit creation and leveraged trading. How have these markets evolved, grown, and become critical for larger financial flows? To answer this question, I distinguish an early period of financial globalization marked by regulatory arbitrage, offshoring, deregulation, and informal trading practices from a period of regime-consolidation marked by formal institutionalization. Concentrating on repo markets as the key funding sources for (...) market-based banking, I demonstrate that new institutional arrangements for these markets were initiated by private sector associations, but supported and authorized by public authorities. Bond trader groups codified new contractual arrangements and these were validated via reforms of bankruptcy codes and changes in central banks’ policy frameworks in the United States and European Union. Through these modifications and re-articulations in institutional conditions, transactions and large exposures on money markets became routine affairs—for shadow banking actors like money market funds as well as for commercial banks. The article concludes by discussing the continuity of regime-consolidation efforts after the transatlantic financial crisis and hypothesizes that they reveal “neo-patrimonial” features. (shrink)

Owing to the adverse impact of the COVID-19 pandemic on world economies, it is expected that information flows between commodities and uncertainties have been transformed. Accordingly, the resulting twisted risk among commodities and related uncertainties is presumed to rise during stressed market conditions. Therefore, investors feel pressured to find safe haven investments during the pandemic. For this reason, we model a mixture of asymmetric and non-linear bi-directional causality between global commodities and uncertainties at different frequencies through the information flow (...) theory. Consequently, we utilise the complete ensemble empirical mode decomposition with adaptive noise and the Rényi effective transfer entropy techniques to establish the dynamic flow of information. The intrinsic mode functions from the CEEMDAN are carefully extracted into multi-frequencies through cluster analysis to reconstruct the series into high, medium, and low frequencies in addition to the residue. We utilise daily data from December 31st, 2019, to March 31st, 2021, to provide insights into the COVID-19 pandemic. The correlation coefficients and variances demonstrate that the high frequency which measures the short-term dynamics is the dominant frequency, suggesting short-lived market fluctuations relative to real economic growth for institutional investors. Moreover, outcomes from the multi-frequency entropy indicate a negative bi-directional causality of information flow between global commodities and uncertainties, especially in the long term. Generally, the findings present pertinent inferences for portfolio diversification, policy decisions, and risk management schemes for global commodities and markets volatilities. We, therefore, advocate that market volatilities act as effective hedges for global commodities, and they clearly act as balancing assets rather than substitutes in the long-term dynamics of the COVID-19 pandemic. Investors who delayed in investing within financial markets of commodities and market volatilities are likely to minimise their portfolio risks. (shrink)

This study examines the relationship between corporate commitment to business ethics and financial reporting quality. We posit that companies with a higher level of ethical commitment exhibit better quality financial reporting than those with a lower level of ethical commitment. Consistent with our prediction, we find that companies with a higher level of ethical commitment are engaged in less earnings management, report earnings more conservatively, and predict future cash flows more accurately than those with a lower level (...) of ethical commitment. We also find that corporate commitment to business ethics has perpetuating effects on future financial reporting quality. (shrink)

In this chapter we consider economic systems, and in particular financial systems, from the perspective of the physics of complex systems (i.e. statistical physics, the theory of critical phenomena, and their cognates). This field of research is known as econophysics—alternative names are ‘financial physics’ and ‘statistical phynance.’ This title was coined in 1995 by Eugene Stanley, and since then its researchers have attempted to forge it as an independent and important field, one that stands in opposition to standard (...) (‘Neo-Classical’) economic theory. Econophysicists argue that the empirical data is best explained in terms flowing out of statistical physics, according to which the (stylized) facts of economics are best understood as emergent properties of a complex system. However, some economists argue that the methods used by econophysics are not sufficient to prove the existence of underlying complexity in economic systems. The complexity claim can nonetheless be defended as a good example of an inference to the best explanation rather than a definitive deduction. (shrink)

This study provides novel evidence of the impact of corporate social responsibility (CSR) on investment sensitivity to cash flows. We posit that CSR affects investment–cash flow sensitivity (ICFS) through information asymmetry and agency costs, commonly viewed as the two channels through which investment responds to the availability of internal cash flows. We find that CSR performance leads to a decrease in ICFS. We further find that ICFS decreases (increases) when CSR strengths (concerns) increase. Finally, we find that the (...) effect of CSR on ICFS is driven by the areas Community, Diversity, and Human Rights. In sum, the findings of this study stress the relevance of CSR—in particular, of CSR activities that extend beyond compliance behavior and reflect what is desired by society—in reducing market frictions and improving firms’ access to financial capital. (shrink)

The purpose of this study is to extend prior research on this topic by investigating whether the impact of ownership concentration moderates the link between corporate social performance and financial performance. This study uses a set of unique, hand-collected pollution control data to measure CSP, based on a sample of Taiwanese listed companies during the period from 1996 to 2006. The results of the empirical analysis provide firm support for the idea that the divergence between control rights and the (...) cash flow rights of controlling owners negatively moderates the link between social and short- and long-run FP. (shrink)

The purpose of the study is to reveal theoretical and methodological approaches to optimizing the formation of cash flows of enterprises. The article presents an analysis of the process of integrating the optimization of the company's cash flows into the overall sequence of their management, as well as the conditions for the application of complex measures for subsequent financial recovery. The scientific novelty of the obtained results lies in the development and refinement of theoretical provisions, schemes for (...) optimizing cash flows and determining the directions for evaluating the optimization of cash flows. As a result, the main directions of optimization of cash flows are identified. As a result, it is revealed that the optimization process is formed on the basis of a logical sequence, the process of implementing management decisions regarding the optimization of the cash flows of the enterprise is justified. (shrink)

Sustainability is concerned with the impact of present actions on the ecosystems, societies, and environments of the future. Such concerns should be reflected in the strategic planning of sustainable corporations. Strategic intentions of this nature are operationalized through the adoption of a long-term focus and a more inclusive set of responsibilities focusing on ethical practices, employees, environment, and customers. A central hypothesis, that we test in this paper is that companies which attend to this set of responsibilities under the term (...) superior sustainable practices, have higher financial performance compared to those that do not engage in such practices. The target population of this study consists of the top 100 sustainable global companies in 2008 which have been selected from a universe of 3,000 firms from the developed countries and emerging markets. We find significant higher mean sales growth, return on assets, profit before taxation, and cash flows from operations in some activity sectors of the sample companies compared to the control companies over the period of 2006–2010. Furthermore, our findings show that the higher financial performance of sustainable companies has increased and been sustained over the sample. Notwithstanding sample limitation, causal evidence reported in this paper suggests that, there is bi-directional relationship between corporate social responsibilities practices and corporate financial performance. (shrink)

The aim of this paper is to propose a new perspective on the difficulty and meaning of ethical work for financial controllers. This is achieved by drawing on concepts from Michel Henry’s phenomenology of life in the field of business ethics. The French philosopher Michel Henry is distinguished by his identifying two modes of appearing: ‘intentionality’ and ‘affectivity’ . Henry suggests that relying only on abstract representations constitutes a specific ideology that causes individuals at work to ignore the actual (...) experience of being affected, and hinders the appearance of life to guide their actions, in turn hindering ethics. Empirical illustrations are provided by a case study that explores the practices of management accountants in a travel retail corporation. By observing the empirical practices of management accountants, a body of professionals whose role is largely dependent on information technology, abstraction and technical expertise to trace organisational flows and transactions, we shed light on the difficult ethical issues associated with their role of surveillance and control of other managers’ work. The case study illustrates a wide range of everyday working practices among management accountants. Some convey the impression that they lack empathy and consideration for other individuals, while others engage in close cooperation and ethical practices despite the constraining configuration of their role. A significant result of this research is that it illustrates and interprets, based on Henry’s phenomenology, a wide range of working practices. Consistent with Henry, we argue that the source of business ethics lies beyond professional standards, codes and values. (shrink)

Is there a unique way to de-idealize models? If not, how might the possible ways of reducing the distortion between models and reality differ from each other? Based on an empirical case study conducted in financial markets, this paper discusses how a popular valuation model (the Discounted Cash Flow model) idealizes reality and how the market participants de-idealize it in concrete market situations. In contrast to Cartwright's view that economic models are generally over-constrained, this paper suggests that valuation models (...) are under-constrained. This serves as the reason why the relaxation of simplifying assumptions and concretization do not work as methods of de-idealization. The paper finds that financial market participants de-idealize models using commentary that takes the form of judgment. As a conclusion, a hypothesis is formulated that proposes that the more underdetermined the model is the bigger role narrative and other pragmatic elements play in the process of model application. (shrink)

In the article the effect of disbalances in the movement of financial resources on the national financial systems is formalized. For ensuring the corresponding monitoring objectives the financial sustainability indicators developed by the IMF and the World Bank have been used, as well as the integral indicator of financial resource disbalances, which serve as statistical units for measuring the financial situation and sustainability of the financial sector of the country. For the overwhelming majority of (...) the studied countries, the hypothesis about the negative impact of disbalances in the flow of financial resources on the stability of their financial sectors, regardless of the general economic conditions of these countries' development, was confirmed. At the same time, such a hypothesis was denied for a group of developing countries. Conditions-destabilizers of financial sectors’ stability of the countries under the influence of financialization of their economies, which should be considered the object of regulatory measures in financial markets, are defined. These include the level of market integration into the global financial space, which determines the tendency to systemic risks transmission and the degree of markets’ development that affects their volatility. (shrink)

This study analyzed the sensitivity between fund flow and fund performance with Korean funds, whether there would be a difference in the sensitivity between environmental, social and governance funds and non-ESG funds, and whether there was a difference in sensitivity according to the type of past fund performance. The main results of the analysis are as follows. First, the analysis of the fund flow–performance correlation of Korean funds revealed that they had a negative correlation and the ESG did not affect (...) fund flow. Analysis of the difference in sensitivity between fund flow and performance volatility revealed that there was a negative correlation regardless of the performance measuring method and ESG. Finally, the comparison of fund flow and performance sensitivity according to the type of past fund performance revealed that despite consistent asymmetry, there was little difference in sensitivity asymmetry between ESG funds and non-ESG funds. The results reveal that, unlike the expectation that investors in Korean ESG funds would focus more on non-financial properties like the purpose of investment than on profit, they attach the same importance to fund performance. (shrink)

In this paper, I will argue for the relevance of certain distinctive features of messaging systems, namely those in which data can be sent and received asynchronously, can be sent to multiple simultaneous recipients and is received as a “potentially infinite” flow of unpredictable events. I will describe the social technology of the stock ticker, a telegraphic device introduced at the New York Stock Exchange in the 1860s, with reference to early twentieth century philosophers of synchronous experience, simultaneous sign interpretations, (...) and flows of discrete events. Then, I will show how the ticker’s data flows developed into the 1990s-era technologies of message queues and message brokers, which distinguished themselves through their asynchronous implementation of ticker-like message feeds sent between otherwise incompatible computers and terminals. These latter systems’ characteristic “publish/subscribe” communication pattern was one in which conceptually centralized flows of messages would be “published,” and for which “subscribers” would be spontaneously notified when events of interest occurred. This paradigm—common to the so-called “message-oriented middleware” systems of the late 1990s—would re-emerge in different asynchronous distributed system contexts over the following decades, from “push media” to Twitter to the Internet of Things. (shrink)

In this paper, I will argue for the relevance of certain distinctive features of messaging systems, namely those in which data can be sent and received asynchronously, can be sent to multiple simultaneous recipients and is received as a “potentially infinite” flow of unpredictable events. I will describe the social technology of the stock ticker, a telegraphic device introduced at the New York Stock Exchange in the 1860s, with reference to early twentieth century philosophers of synchronous experience, simultaneous sign interpretations, (...) and flows of discrete events. Then, I will show how the ticker’s data flows developed into the 1990s-era technologies of message queues and message brokers, which distinguished themselves through their asynchronous implementation of ticker-like message feeds sent between otherwise incompatible computers and terminals. These latter systems’ characteristic “publish/subscribe” communication pattern was one in which conceptually centralized flows of messages would be “published,” and for which “subscribers” would be spontaneously notified when events of interest occurred. This paradigm—common to the so-called “message-oriented middleware” systems of the late 1990s—would re-emerge in different asynchronous distributed system contexts over the following decades, from “push media” to Twitter to the Internet of Things. (shrink)

In this paper, I will argue for the relevance of certain distinctive features of messaging systems, namely those in which data can be sent and received asynchronously, can be sent to multiple simultaneous recipients and is received as a “potentially infinite” flow of unpredictable events. I will describe the social technology of the stock ticker, a telegraphic device introduced at the New York Stock Exchange in the 1860s, with reference to early twentieth century philosophers of synchronous experience, simultaneous sign interpretations, (...) and flows of discrete events. Then, I will show how the ticker’s data flows developed into the 1990s-era technologies of message queues and message brokers, which distinguished themselves through their asynchronous implementation of ticker-like message feeds sent between otherwise incompatible computers and terminals. These latter systems’ characteristic “publish/subscribe” communication pattern was one in which conceptually centralized flows of messages would be “published,” and for which “subscribers” would be spontaneously notified when events of interest occurred. This paradigm—common to the so-called “message-oriented middleware” systems of the late 1990s—would re-emerge in different asynchronous distributed system contexts over the following decades, from “push media” to Twitter to the Internet of Things. (shrink)

In this paper, I will argue for the relevance of certain distinctive features of messaging systems, namely those in which data can be sent and received asynchronously, can be sent to multiple simultaneous recipients and is received as a “potentially infinite” flow of unpredictable events. I will describe the social technology of the stock ticker, a telegraphic device introduced at the New York Stock Exchange in the 1860s, with reference to early twentieth century philosophers of synchronous experience, simultaneous sign interpretations, (...) and flows of discrete events. Then, I will show how the ticker’s data flows developed into the 1990s-era technologies of message queues and message brokers, which distinguished themselves through their asynchronous implementation of ticker-like message feeds sent between otherwise incompatible computers and terminals. These latter systems’ characteristic “publish/subscribe” communication pattern was one in which conceptually centralized flows of messages would be “published,” and for which “subscribers” would be spontaneously notified when events of interest occurred. This paradigm—common to the so-called “message-oriented middleware” systems of the late 1990s—would re-emerge in different asynchronous distributed system contexts over the following decades, from “push media” to Twitter to the Internet of Things. (shrink)

This study provides novel evidence of the impact of corporate social responsibility (CSR) on investment sensitivity to cash flows. We posit that CSR affects investment–cash flow sensitivity (ICFS) through information asymmetry and agency costs, commonly viewed as the two channels through which investment responds to the availability of internal cash flows. We find that CSR performance leads to a decrease in ICFS. We further find that ICFS decreases (increases) when CSR strengths (concerns) increase. Finally, we find that the (...) effect of CSR on ICFS is driven by the areas Community, Diversity, and Human Rights. In sum, the findings of this study stress the relevance of CSR—in particular, of CSR activities that extend beyond compliance behavior and reflect what is desired by society—in reducing market frictions and improving firms’ access to financial capital. (shrink)

Minsky proposed classifying firms in three categories: hedge finance units which borrow no more than they are able to service in interest and principal out of operating cash flows, speculative finance units which are overleveraged to the point where they can service interest on their debt out of operating cash flows, but cannot repay the principal, and thus must continually roll over their existing debt, and Ponzi finance units, whose operating cash flows are inadequate even to service (...) interest on their debt. In Minsky’s financial instability hypothesis protracted prosperity leads endogenously to firms overleveraging themselves and transforming a market dominated by hedge finance into one dominated by speculative and Ponzi finance. Since Ponzi finance units are forced to sell off assets to service their existing interest payments, once the market is sufficiently dominated by Ponzi finance units, this creates an oversupply of assets offered for sale, and the resulting debt deflation causes a financial crisis and drastic shortage of liquidity. It appears this crisis state can be brought about by a deceptively low critical mass of Ponzi and speculative finance units. This paper uses a large 2002–2009 quarterly data set of all publicly traded North American firms and foreign firms traded on North American exchanges, a total of 8,905 stocks. Financial ratios are used to classify these firms in each quarter according to Minsky’s FIH categories. Market value is used to weight the categories, and average betas are computed as measures of volatility. Results provide dramatic support for the FIH. The FIH is then reinterpreted in terms of Austrian business cycle theory, which depends on inflationary credit expansion to drive the unsustainable prosperity. According to Minsky’s FIH, unsustainable prosperity emerges endogenously as long periods of economic expansion make borrowers and lenders alike more willing to engage in investment activities for which they fail to see the inherent risk. It becomes clear that this process is amplified and exacerbated by credit expansion. Minsky’s FIH helps flesh out some of the missing dynamics of the malinvestment liquidation phase of ABC theory, and the two views turn out to be surprisingly complementary. (shrink)

In a departure from the traditional studies of corporate philanthropy that focus on board composition, advertising, and social networks, the authors investigate the financial correlates of corporate philanthropy. The research design controls for firm size and industry while observing firms from a variety of industries. The sample contains matched pairs of generous and less generous corporate givers. The authors find, as hypothesized, a positive relationship between a firm''s cash resources available and cash donations, but no significant relationship between corporate (...) philanthropy and firm financial performance, regardless of whether corporate philanthropy is measured as cash payouts or the aggregate contributions that charities actually receive, and regardless of whether financial performance is gauged using accounting measures or market measures. Whereas the link between available resources and corporate philanthropy is well accepted in the literature on corporate social responsibility, it has been rarely tested and never so definitively found as in this research. (shrink)

In this paper, we discuss the development and piloting of a new methodology for illuminating the socio-material constitution of data objects and flows as data move between different sites of practice. The data journeys approach contributes to the development of critical, qualitative methodologies that can address the geographic and temporal scale of emerging knowledge infrastructures, and capture the ‘life of data’ from their initial generation through to re-use in different contexts. We discuss the theoretical development of the data journeys (...) methodology and the application of the approach on a project examining meteorological data on their journey from initial production through to being re-used in climate science and financial markets. We then discuss three key conceptual findings from this project about: the socio-material constitution of digital data objects, ‘friction’ in the movement of data through space and time and the mutability of digital data as a material property that contributes to driving the movement of data between different sites of practice. (shrink)

This paper investigates the effect of corporate social responsibility (CSR) on firm value and seeks to identify the source of that value, by disaggregating the effects on forecasted profitability, long-term growth and the cost of capital. The study explores the possible risk (reducing) effects of CSR and their implications for financial measures of performance. For individual dimensions of CSR, in general strengths are positively valued and concerns are negatively valued, although the effect is not universal across all dimensions of (...) CSR. We show that these valuation effects are principally driven by CSR performance associated with better long run growth prospects, with an additional minor contribution made by a lower cost of equity capital. (shrink)

Although entrepreneurial success is usually attributed to astute financial management in the growth of economic capital, entrepreneurs may also utilize additional sources of inner guidance, creating both tangible and intangible value. This article framed one such source as spiritual capitalism, the juxtaposition of personal spirituality and marketplace dynamics. The soul's currency, or love, is characterized as a manifestation of flow in the entrepreneurial start-up process, which elicits spiritual congruence, harmonious relationships and personal fulfilment. Personal experiences as a Wall Street (...) investment banker and entrepreneur are discussed in exploring methods of leveraging inner guidance and appropriately pursuing material abundance. Participants discussed the demarcation between traditional and spiritual entrepreneurship, and exercises demonstrated how to: identify and value spiritual assets, create spiritual capital, mitigate inhibitors to flow, and harness inner guidance. (shrink)

The current financial crisis demonstrated, once again, the need for deep reforms of the international monetary and financial architecture. This article argues that reforms under way are insufficient, as they are partial in scope and rely excessively on an ad hoc body, the G20. It thus calls for an international architecture that meets two basic criteria. First, it should be comprehensive. This means that a broad range of reforms should be undertaken: better macroeconomic policy coordination; regulatory reform, including (...) cross-border capital flows; ample countercyclical IMF and development financing with limited conditionality; global monetary reform; and the creation of an international debt court. Second, inclusive institutions should stand at the center of the new architecture, structured as a multilayered network of global, regional, and national financial institutions. (shrink)

This investigation proposes a conceptual framework for measurement necessary for an analysis of household finance and economic development. The authors build on and, where appropriate, modify corporate financial accounts to create balance sheets, income statements, and statements of cash flows for households in developing countries, using an integrated household survey. The authors also illustrate how to apply the accounts to an analysis of household finance that includes productivity of household enterprises, capital structure, liquidity, financing, and portfolio management. The (...) conceptualization of this analysis has important implications for measurement, questionnaire design, the modeling of household decisions, and the analysis of panel data. (shrink)

Since the 1970s Western governments have sought to defend selective urban areas from terrorist attack through a plethora of measures aimed at territorially controlling space both physically and technologically where the disruption to the orderly flow of commerce, or other activities, is minimized. Drawing on recent historical accounts, this paper seeks to track the changes to the landscape of Britain’s financial heart, the City of London, from the 1990s to the current day, as its leaders and security agents have (...) sought to defend the area from terrorist attack through the construction of what is commonly referred to as the “ring of steel.”. (shrink)

It is generally assumed that common stock investors are exclusively interested in earning the highest level of future cash-flow for a given amount of risk. This view suggests that investors select a well-diversified portfolio of securities to achieve this goal. Accordingly, it is often assumed that investors are unwilling to pay a premium for corporate behavior which can be described as socially-responsible.Recently, this view has been under increasing attack. According to the Social Investment Forum, at least 538 institutional investors now (...) allocate funds using social screens or criteria. In addition, Alice Tepper Marlin, president of the New York-based Council on Economic Priorities has recently estimated that about $600 billion of invested funds are socially-screened (1992). (shrink)

This paper projects the decision making dilemma faced by managers when assessing moral consequences associated with planning proposals. A case is made for viewing the results of moral behavior as a capital asset. Accepting the idea that moral business behavior proportionally influences the firm's goodwill value, the author advances the recommendation that current U.S. accounting practices become involved with determining the moral wellness of the firm. The suggestion is made that stocks and flows are useful concepts in the development (...) of a financial information system that incorporates benefits associated with morally accepted behavior. As a necessary part of the going concern operational strategy, a case is made for the preservation and advancement of the firm's moral capital. Overall, the intent of this paper is to offer a proposal which links moral behavior with financial decision making. (shrink)

This article analyzes the global causes of the contemporary crisis and the possibilities to eliminate the most acute problems that have generated this crisis. It analyzes both the negative role of the world financial flows and their important positive functions including the ‘insurance’ of social guaranties at the global scale. In connection with the outcome of the crisis it analyzes the conditions of possible transformations of the world system and the possibility of various global scripts of its near (...) future. It gives a characteristic of the coming ‘epoch of new coalitions’; it gives some futuristic prognosis. (shrink)

Media outlets, industry researchers, and policy-makers are today busily extolling new robotic advances that promise to transform agriculture, bringing us ever closer to self-farming farms. Yet such techno-optimist discourse ignores the cautionary lessons of past attempts to mechanize farms. Adapting the Social Construction of Technology framework, we trace the history of efforts to replace human labor with machine labor on fruit, nut, and vegetable farms in California between 1945 and 1980—a place and time during which a post-WWII culture of faith (...) in the beneficence of technoscience applications to agriculture reached an apex. The degree to which and forms whereby mechanization gains momentum hinges on whether, how, and among whom a technological frame for mimicking human capabilities and supplanting workers coalesces. These frames, we find, vary considerably across crops, reflecting complex interactions of biology, farmer and farm worker behavior, industry supply chains, agricultural research and development, financial flows, and beliefs about labor, race, gender, and immigration. To tease out these complex dynamics, we draw directly from archival evidence to follow the development of cultivation and harvest machines through four cases spanning a spectrum of outcomes—tomatoes, nuts, peaches, and lettuce. In comparing across these cases, we find that although agricultural engineers, scientists, and their boosters framed mechanization as a triumphal narrative of progress in ‘human vs. nature’ conflicts, this techno-optimist rhetoric camouflaged deeper ‘human vs. human’ conflicts, particularly among agribusiness, farmers, and farm workers. We conclude with several insights that this historical study brings to the study of agricultural automation today. (shrink)

The concept of transnationalism, despite a variety of earlier uses, has recently been used to describe the sociological phenomenon of cross-border migrants considering more than one place ‘home’. This can be in terms of identity and belonging, cultural expression, family and other social ties, visits, financial flows, organising working life in more than one nation-state or transnational political projects. In this paper I discuss the theory and practice of transnationalism to assess the practical, explanatory and normative strength of (...) the concept. I then introduce three different forms of cosmopolitan approaches and assess whether transnational migrants' practices contribute to a cosmopolitan outlook and active global citizenship. I show that the extent to which transnationalism contributes to various forms of global citizenship varies according to the different conceptualisations of transnationalism and cosmopolitanism. In conclusion I draw out the implications of these differences for the future protection of the rights of migrants. (shrink)

While the academic separation of policing and regulation is still largely operative, points of convergence are more significant than ever in the digital age, starting with concomitant debates about algorithms as a new figure of power. From the policing of illegal activities to the regulation of legal ones, the algorithmization of such critical social ordering practices has been the subject of growing attention. These burgeoning discussions are focused on one common element: big data surveillance. In accordance with such similarities and (...) paralleled developments in policing and regulation, the article aims to further bridge the gap between literatures to respond to the calls for studying big data surveillance across institutional domains and social fields. To do so, it is focused on one case study that articulates algorithmic policing and regulation domains, in-between security and economic fields. This is the fight against illicit finance, i.e. ‘the global action against the financial flows that fuel crime and terrorism’. To what extent does big data surveillance make a difference in the main global policy of crime-fighting and financial regulation? Drawing on a fieldwork in a large North American bank, the present article takes stock of the algorithmic overlap between policing and regulation. It argues that the final result is policing and regulation of neither too much nor too little, which gives rise to automated and everyday mass surveillance while remaining as far removed from regulatory and crime-fighting ambitions as it is from dystopian visions of big data and algorithmic drama. (shrink)

Information is a very important factor in various fields of activity of the contemporary people. In any economic activities as well as in the activities of the economic entity the information is used for decision-making. The information may be economic, legal, scientific and otherwise, but in order to manage economic processes the most important is economic information. The greatest part of this information is provided by accounting both financial and management. In every company as in a separate accounting unit, (...) a lot of economic transactions and events occur over the year, constantly recording the movement of money, the amount of revenue and costs. Periodically, in the activities of enterprises, institutions or organizations it is necessary to summarise all the available economic information and calculate performance results, to show the remains of assets, equity and liabilities. Financial statements of the company in the market economy conditions is the main source of information about the assets, liabilities, capital, profits and cash flows. Accumulated and grouped financial information of companies, institutions, or organizations in the form of financial statements periodically, but not less often than at the end of the financial year, is is presented to all users who are interested in it, since the annual financial accounts must be provided by all companies, enterprises or organisations with legal status. Many Lithuanian authors, dealing with financial statements, note that the current forms used for financial statements do not provide sufficient information to meet the users‘ needs in constant competitive conditions and, therefore, there are a lot of discussions how these statements could be improved. When analysing financial accountability, problematic aspects of assessment of financial statements elements are faced. Both Lithuanian and foreign authors pay little attention to the assessment analysis of financial statement elements, because for businesses both in Lithuania and abroad it is rather complicated to assess properly the elements of the financial statements by assessment methods available in the literature in such a way that they would reflect the state of the company truly and correctly. This time, however, the figures in the financial statements is one of the most important sources of information for economic state assessment of companies, enterprises or organisations and for business management solutions. Accounting professionals and other users, when analysing the financial statements, may form opinions and draw conclusions about the profitability of the core business of the analysed entity, the ability to cover its short-term and long-term liabilities, as well as about long-term and short-term assets, product manufacturing and sales situation and changes during the reporting period, and relying on these data decide on the reliability of the company, development and investment opportunities. (shrink)

The suppression of trade barriers and liberalization of financial flows inherent to the expansive dynamic of globalization have not extended to international flows of workers. To impede the free movement of workers, restrictive migratory policies have been implemented, and borders have been fortified with walls and fences. In the face of this widespread phenomenon, this chapter presents an alternative consisting of three steps. First, it is noted that in the current migratory context, borders play a key role (...) in reproducing inequalities between countries. Next, it is argued that given the incompatibility of this function with global justice, it is necessary to seek some remedy to put an end to the suffering caused by this structural injustice, a suffering that is endured by an immense number of people unlucky enough to have been born on the wrong side of a border. After presenting a conception of borders that, unlike walls, would enable the movements of people, finally, a scenario is proposed in which the rights of political membership would be reassigned in a cosmopolitan manner and in which borders would usually remain open. Although this does not entail a radical suppression of the aforementioned injustice, its implementation would contribute to not only its reduction but also to the compensation of victims. (shrink)

continent. 1.1 (2011): 22-25. The Author gratefully acknowledges the financial support of CAPES (Coordenação de Aperfeiçoamento do Ensino Superior), Brazil. From the multifarious subdivisions of semiotics, be they naturalistic or culturalistic, the realm of semiotics of value is a ?eld that is getting more and more attention these days. Our entire political and economic systems are based upon structures of symbolic representation that many times seem not only to embody monetary value but also to determine it. The connection between (...) monetary and linguistic exchanges is self-evident: the former requires the latter and develops in direct relation to it. Creative experimentation and design of digital systems of value exchange are blossoming on the web. Dr. Gilson Schwartz, an economist turned media theorist and professor at the University of São Paulo, adopted the concept of Iconomics, originally created by Michael Kaplan, an author concerned with the linguistics of economic value. Empowering local communities and unlocking new levels of value creation and representation via digital technologies are the main goals of Dr. Schwartz’s projects, aiming at the re-designing of our relationship to the economic value of imagination and the social control of property. Schwartz is Assistant Professor at the School of Communication and Arts of the University of São Paulo, a former Chief Economist at BankBoston, Brazil and Advisor to the President of the National Social and Economic Development Bank (BNDES). FURTHER READING: Kaplan, Michael. “Iconomics: The Rhetoric of Speculation.” Public Culture . 15.3 (2003): 477-493. Renata Lemos-Morais: You have recently produced and directed a short documentary about Creative Currencies in Latin America. Could you tell us a bit about its process and its findings? Gilson Schwartz: The “Creative Currencies” project is a work-in-progress platform which unfolds as an action research agenda connected both to the production of audiovisual content and the development of social currency software. The initiative dates back to 2003 when I led an experimental project supported by the Presidency of Brazil. At that time, we issued paper currency in a small, touristic village in the Northeast Region which stimulated local cultural projects. But it was only in 2009 that the Central Bank of Brazil acknowledged “social currencies” as a legitimate economic agenda, calling for more debate at the I Financial Inclusion Forum. This year, the monetary authorities organized a second forum that also opened the room to discussions on mobile payment systems and new perspectives on poverty alleviation via State subsidies. The Ministry of Culture funded the “Creative Currencies” project in 2009-2010 and our next stage in this discovery process is to be supported by the National Social and Economic Development Bank (BNDES). In short, there is genuine interest among public officials in different areas and public funding for social currencies is on the rise in Brazil. However, after all these years we are still at a very early stage of research and practice. Some of the most successful initiatives (such as Banco Palmas) actually evolved out of local monetary creation to become correspondent banking operations for commercial banks and other financial groups. After eight years of price stability and social inclusion, Brazil stands out as a major opportunity for social experimentation, even the Grameen Bank is now entering the Brazilian market and many NGOs are geared towards different forms of entrepreneurialism in the base of the pyramid, riding solidarity economic models, microfinance and microcredit for local development. It is yet to be seen, however, whether these developments are just one more stage of “bankarization”, that is to say, an extension of regular banking services or actually a new form of social and symbolic self-determination at the local level. So far, the Central Bank of Brazil is open to new forms of credit and local finance as long as they are strictly territorial and very close to barter among the poor. In other words, whether the process of monetary creation could be made to fit an open source paradigm is yet to be seen. Community banking and social currencies might as well end up as just another channel for access to and use of banking services. The “Creative Currencies” project aims at promoting the discussion of more fundamental issues, such as the limits of central banking, the prospects for local financial development and the possibility of creating and managing financial icons as cultural assets. The purpose of this project is to produce short documentaries that will bear testimony to this evolving regulatory framework while inducing more discussion about the fundamental iconomic issues concealed in the process of money and wealth creation. RLM: What new potential is there in applying digital technologies to currency creation? GS: Globalization is a result of the virtualization of money, that is, the overcoming of illusions such as the “gold standard”. Money is an icon created by institutions, not on supposedly natural or material foundations but out of political and financial interests. The “dollar standard” is an outstanding evidence of this phenomenon and Kaplan´s paper, the first to use the expression “iconomics”, insists on the rhetoric and semiotic effects associated to a supposedly scientific model of money creation and management. This is a fundamental change that was perceived and discussed much before the digitalization of the world by unorthodox economists such as John Maynard Keynes since the early 20th century. The digitalization of global financial flows accelerated this immateriality and the creation of the Euro was yet another evidence of the political foundations of currencies. The banking establishment, however, is keen on the idea that scientific formulae hold the key to sound money creation. Keynesianism has been repeatedly associated to “inflationism” while the supposedly sound monetary policies of the Orthodoxy serve well the political and financial interests of a technocratic elite. Corporate media also serve this fictitious depiction of the monetary process despite the cyclical bust of monetary rules and financial regulations. The internet, however, has created numerous opportunities for the disintermediation in industries such as film, music and commodities. There is no reason to doubt that the financial industry can also be transformed by Peer-to-Peer (P2P) infrastructures. Money is media as well. Credit is but confidence. Once people realize that the distributed computing power of networks can also be the platform to weave new monetary and credit operations, there is room for grassroots emancipation out of the established owners of monetary institutions. So far, however, there has been a privatization of monetary management and there is not a clear path or model for the emergent (P2P) property democratization that is inherent to the internet. Digital assets, however, clearly have an inherent potential to escape central control and proprietary regulatory frameworks. RLM: How are social networks transforming the ways in which we exchange value? Do you believe that online influence and reputation might be translated into a new kind of currency? GS: The foundation for social currencies as envisaged by solidarity economics is the territory. Authorities are willing to concede local monetary creation as long as it is restricted to poor neighborhoods, as a proxy to barter. In this relevant but limited context, reputation, personal knowledge and informal ties form the matrix of local or “proximity” finance which are expected to keep credit and leverage to a sustainable level. Anything beyond that should and would lead to an integration of local finance into the established banking system. However, inasmuch as the internet promotes virtual territories and reputation is now subject to all sorts of digital manipulation and stardom becomes an everyday cultural process among teenagers and elders alike, the territorial “foundation” is substituted for more complex patterns of solidarity, cooperation and exchange that reach beyond the physical territory and even the “human.” Digital assets embody knowledge, technology, cultural and educational values that are exchanged at a global scale beyond the control of democratic States (Chinese-like intervention is the exception, not the rule). Hacktivism is unstoppable and so is monetary hacktivism. Especially in the Third World, mobile communications fast became conveyors of money transfers and other appropriation strategies. Banking and telecom sectors already battle for the control of these emerging markets and, as a matter of fact, have so far contributed to the containment of these processes. Governments serve these moguls and have usually adopted a wait-and-see attitude. If open source hardware and grassroots social movements combine to challenge these proprietary battles, then social networks may evolve into new forms of social capital and thus form the ground on which to design and implement social currencies. The global financial crisis, as well as the dollar demise, are an event of such a proportion that social networks may open the path for emancipator subjects to seize the opportunity. RLM: What are some of the social experiments that you think are revolutionizing the way in which value is exchanged? GS: There is a broad evolution of economic systems towards the valuation of intangible assets such as knowledge, reputation and sustainability. There are many examples of local as well as global events that call the traditional systems of exchange into question, from carbon credits to educational bonuses, digital barter frameworks and locally based solidarity and fair trade networks. These emerging examples, no matter how different in nature or scale, represent a challenge to the traditional value creation schemes and theories which are based on use and exchange value, supply and demand. This is not to say that utility and labour or scarcity are to be totally dismissed, but there is now an emerging perception that value is also a function of behavioral codes, symbolic patterns and the energy of institutional frameworks. The plasticity of digital platforms is relevant insofar as intellectual property becomes the central source of value creation. But when you discuss the property rights of public goods such as the environment or basic social rights (of minorities or localities), then a new paradigm seems to emerge. RLM: Are gaming and online storytelling digital practices that might have an impact on the way new currencies are created and developed? GS: “Play money” has been one of the early and most intriguing phenomena associated to the diffusion of virtual worlds. These virtual currencies have also been prone to “boom and bust” dynamics, speculation and pure theft (Second Life scams were common and led to “intervention” by the owners of the game). Storytelling is a major source of value, that is, the value of attention and the markets for audience. There are plenty of private monies created and managed by corporate entertainment groups, telecom operators (via mobile virtual network operators) and marketing frameworks. The casino economy, as already depicted by Keynes and other unorthodox economists, is always storytelling about future states of the world, confidence building and leverage of animal spirits. The novelty of current events is not the fictitious nature of any form of capital, but the potential for digital democratization of controls over the imaginary nature of value creation. But this is just a potential, a possibility, a figment that more often than not is appropriated by centralized and opaque private powers. The game industry is a testbed for new connections between storytelling and money creation. RLM: Monetary value was originally connected to the scarcity of precious metals, such as gold. Our entire monetary system seems therefore to function according to a logic of scarcity. Do you believe it is possible to reverse this logic into a logic of abundance? GS: The gold standard was a fiction itself, the “scarcity” is always produced by institutions that regulate confidence and access to credit. The key issue is not to fabricate abundance, but to question the institutions which produce scarcity out of any standard, gold or whatever. Central banks are at the service of private banks in the creation and management of scarcity. RLM: The promise that nanotechnology holds for our future is one of radical abundance (or so say transhumanists). The possibility of creating any kind of material substance through nanoengineering seems each day more feasible. What would this possibility entail in terms of systems of value exchange? GS: Nanotechnology, environmental concerns and grassroots appropriation of distributed knowledge are the frontiers of a new horizon of energy creation and management. Social groups in charge of managing scarcity for the sake of wealth and power concentration must be held accountable for the destruction of our future. Once this key political conundrum is accounted for, new systems of value exchange and even a non-mercantile society will come into existence. Revolutionary theorists such as Marx envisaged transformation via the extreme clash of contradictions between capital and labour. This approach has never led to a change in the systemic logic of scarcity for the sake of social control. We are once again facing the threshold of large scale societal change, but the outcome of the current crisis should come from our imagination, not from yet another paradox of abundance and scarcity. As long as we remain attached to the materiality of value, the illusion of freedom will but reinforce the massive manipulation of necessity. RLM: What do you think is the role of crowdfunding in this context? GS: Crowdsourcing as well as crowdfunding are examples of the peer to peer opportunities that come along with distributed computer power. However, the power structure behind wealth and scarcity creation may or may not be changed by crowd management. But it should not be taken at face value, so to speak. The stock market of course is an early form of crowdfunding without calling into question the proprietary framework of the companies offering their investment projects to the market. Any market is a form of crowdsourcing, that is to say, of distributed forms of supply and demand matchmaking. The wealth of networks, however, depends on the contractual ecosystem, the institutional framework, the channeling of social imagination, not on the purely quantitative distribution of bids and offers. I see economics as supply, demand and code. Once you have access to the code, once openness becomes part of the game, then there is a chance of crowd behavior becoming collective intelligence and sustainable imagination. RLM: Is the development of digital currencies headed towards a pluralistic ecology in which many micro currency systems co-exist, or is it penetrating the mainstream monetary system? If it is affecting the mainstream financial system, what would be its effect in the long-term? GS: The same issue is at stake both at local and global levels. The global system is, as a matter of fact, an unstable ecosystem of “micro currencies” whereas the dollar has so far exerted an overwhelming influence. Local currencies and private monies coexist with national currencies only to the extent that the Central Bank admits, for instance, that grassroots monetary emissions remain territorial and strictly connected to poverty. However, the question of how new developments in digital technologies and nanotechnologies might alter not only our current monetary systems but also our understanding of value in itself, is still an open question. (shrink)

This article attempts to make some sense of what is happening to the role of money and the economy in our lives and in our communities. It shows that the picture provided by the discipline of economics makes no sense at all. Corporations and national economies have become wealth extractors as opposed to wealth creators. Only about 3% of daily financial flows around the globe have any meaningful connection to the production and distribution of goods and services or (...) to direct productive investments. Free trade is restricted to the flows of goods and services, but it is forced trade to people and communities. Such flows ought to serve them, but under free trade they are permitted to do more harm than good. These developments have transformed the role of money and the economy into wealth extraction or what may be regarded as antimoney and an antieconomy. The implications are far reaching, and require urgent attention if the present human, social, and environmental crises are not to be intensified. (shrink)