This study employs the Porter hypothesis framework to test the moderating role of production cost in the relationship between resource-efficiency actions and financial performance for German small and medium-sized enterprises (SMEs). For this purpose, we employ the 2012, 2018, and 2021 Flash Eurobarometer surveys to analyze how consistently SMEs adopt resource-efficiency actions, and the impact of these actions on their performance and costs. We also conduct a generalized method of moments regression analysis (GMM). Among the seven resource-efficiency actions proposed, (...) saving water had a significant positive (negative) influence on financial performance in 2012, 2021, and (2018). Saving energy and using renewable energy had a positive and significant (insignificant) effect on financial performance in 2018, 2021, and (2012). Finally, selling scrap material to other companies had a positive and significant impact in all years. Furthermore, increased production costs negatively moderate the relationship between eco-efficiency action scores and financial performance. The results indicate that the “strong” version of the Porter hypothesis is not supported: It only holds when the implementation of eco-efficiency actions reduces production costs and increases financial performance. (shrink)

This study was an attempt to examine the using intelligent systems to manage risks and reduce financial risks using artificial intelligence in large companies. The data collected from the data is collected from the stock organization and the stock Securities of Iran. Moreover, the data is collected from 17 companies for ten years and the data was collected through the variance formula and then the results were examined using the SSPS method. Variance formula is σ µ 2= xi- 2 (...) /n ( ( )) ∧ ∧ ∑. The data is completely obtained from a reliable and correct source, which is related to the Department of Statistics of Iran’s Stocks and Securities. After categorizing and classifying the collected information and data, it is processed and analyzed, and the results and findings of this study are stated. In order to examine the research questions, appropriate tests (Shefe tests) were used to analyze the data. The analysis of data revealed that the findings of this study reveal that Shatran, Arya, Shebandar, Famili are profitable among other stocks. Other stocks are loss because of high cost of raw materials and sanction of Iran. Moreover, companies could not export their products. Plus, the purchase power of the people in the country decreases because of the inflation of the country, so the companies could not buy anything. On the one hand, liquidity power of people, on the other hand, less export lead to the decrease of cash flow, liquidity power of companies and firms and could not sell their products. It can be concluded that those stocks are loss and have high risk. (shrink)

This case study details how and why integrating storytelling, empathy, and inclusive practice shifted QSuper, a large Australian finance organisation, from minimal awareness to moral awareness then moral capability in the delivery of services to Indigenous customers. During the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry, QSuper were recognised for their exemplary service with Indigenous customers (Hayne, Interim report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth (...) of Australia, 2018; _Transcript of Proceedings, 13 August_, Commonwealth of Australia, 2018). This position was in stark contrast to the inaccessible service offerings of other financial organisations where some used predatory practices to sell unethical financial products to Indigenous Australians (Hayne, Interim report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, 2018; Hayne, Final report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, 2019a). Storytelling garned from visiting customers in remote communities and other meaningful activities involving inclusive practice to facilitate ethical decision-making in finance is different to standard functionalist finance approaches (Schinckus, Int Rev Financ Anal 40:103–106, 2015). Two empathetic questions asked within QSuper complementing the storytelling, were: “What is the right thing to do by the customer?” and “How would I feel if this were my mother?” Exploration into the lived reality of moral capacity is important based on the Commission finding many of the 490,000 finance staff do not know how to provide ethical services to vulnerable customers, in particular remote Indigenous customers (Australian Bureau of Statistics. Labour force, Australia, detailed. ABS. Retrieved from https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia-detailed /latest-release, 2021; Hayne, Final report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, 2019a). Furthermore, there is minimal literature on the role of Indigenous storytelling to heighten moral awareness in the finance industry which was found to lead to better ethical outcomes. (shrink)

The author examines the existence of unethical behaviour of the employees of financial institutions. This paper is based on studies carried out with the aid of the ‘mystery shopper’ method in Warsaw. Based on the survey, the author wanted to check whether a client is well informed about the real costs of credit and whether a client is asked for an opinion about credit insurance. The outcomes have been compared with the findings of Robert Rogowski published in ʿThe moral (...) dimension of the economic crisis’. (shrink)

What are the ethical obligations of the sellers of financial products to their customers? Stockbrokers in the U.S. have a legal and ethical requirement to recommend only “suitable” investments to their customers. This is a fairly weak standard. Currently, there are proposals to raise the standard to a fiduciary one in which the recommendations would have to be in the best interests of the clients. Brokers sell solutions to financial problems. Similar to an auto mechanic or a (...) doctor, the product often consists of both the professional advice and its implementation. There are numerous conflicts of interest between brokerage firms and their customers in that the products that pay the highest commissions may not be the best ones for the customers. The societal perspective adds complications, however. Society depends on modern financial markets to raise capital for productive enterprises and to spread risk. Issuers of financial products need distribution channels for their products just like the producers of any other products. Commissions create powerful incentives for the distribution channels, but at the same time produce conflicts of interest—a type of ethical pollution. Just as our society tolerates some pollution as a byproduct of other useful activities, it may be useful to tolerate some of these financial conflicts of interest. The nature of the relationship should govern the ethical standard. Those selling advice, regardless of how they label themselves, should adhere to a best-interest fiduciary standard. More limited relationships should be limited to the mandate involved in the relationship. (shrink)

Does anyone have a monopoly on God? Can religion be bought or sold? Why do we pay priests? How do we limit religious conflicts? And should states get involved in matters of faith? "Faithonomics" shows that religion should be analyzed as a market similar to those for other goods and services, like bottled water or haircuts. It is about religion today, but Brekke shows us that there have always been religious markets, all over the world, regulated to a greater or (...) lesser degree. He argues that state "control" over religious markets is often the cause of unforeseen and negative consequences. Many of today's problems like religious terrorism or rent-seeking by religious political parties, are easier to understand if we think like economists. Religious markets work best when they are relatively free, and religious organizations should be left to sell their products without unnecessary restrictions. We have no good reason to grant any one of them special privileges, political or financial."--book jacket front flap. (shrink)

The Prudent Investor Rule creates a potential ethical dilemma for investment advisors selling over-the-counter financial products issued by their firms. The "opportunity" to defraud investors using complex, over-the-counter derivative securities designed for client-specific risk management is much higher than for exchange traded securities. This paper emphasizes the ethical responsibility held by trustees and their organizations to eliminate potential conflict of interests through internal control and monitoring. Independent evaluations of the performance of investment advisors and independent appraisals of (...) complex over-the-counter securities are important in reducing the risks of conflicts of interest. Recent lessons learned from the corporate ethics crisis and requirements of the 2002 Sarbanes Oxley Act would suggest that conflict of interest must be eliminated with third party validation of derivative pricing. By performing due diligence and validation, the trustee is able to satisfy the requirements under the Prudent Investor Rule. (shrink)

The study aimed to investigate the impact of behavioral biases on herding for Islamic financial products with the mediation of shariah literacy. An adopted questionnaire from several published studies was used to collect data. The data were collected from 410 respondents and were analyzed with SmartPLS. The results for the direct impact showed that self-attribution, illusion of control, and information availability have a positive and significant impact on herding for Islamic financial products while shariah literacy showed (...) an insignificant impact on herding. The results for mediation showed that previously significant and positive impact turned to insignificant when shariah literacy was introduced as mediating variable between the illusion of control, self-attribution, information availability, and herding. From a theoretical perspective, this study would contribute to the existing body of knowledge of financial decision making from shariah literacy point-out. On the other hand, the findings of this study may be useful for investors to avoid herding in the Islamic financial markets. The authors synthesize the contribution made by behavioral finance studies in extending the knowledge of herding behavior in Islamic financial products with a mediating role of shariah literacy. The key limitation of the study includes data that were collected from three districts of Punjab, Pakistan. (shrink)

Ex-vivo tissue engineering is an emerging medical technology. Its aim is to regenerate tissues and organs and to restore them to full physiological activity. Some clinical trials with human tissue engineered products have been conducted and others will follow. These trials not only have to confirm the therapeutic value of the HTEP, they also have to provide insight in its regenerative activity, its safety and long-term effects. The development of these trials is aggravated by the complexity of the tissue (...) engineering process and product. This paper investigates how this complexity influences the ethical conduct of clinical trials with HTEPs. We focus on the value and validity of the trial, the risk-benefit ratio and the protection of the trial participant. We argue that trials with HTEPs need a robust methodology. The risk-benefit ratio of a new HTEP must be determined and compared with available efficacious therapies. This requires the identification and minimisation of risks associated with tissue engineering. Finally a process as complex as tissue engineering presents serious challenges for the informed consent process, and for the protection of the trial participant during and after the trial. (shrink)

We argue that although halal certification could potentially reduce the high transaction costs related to buying Islamic financial products, in practice these costs are just replaced by transaction costs relating to the certification itself. It takes considerable time (2–3 months) and money (USD 122.000) to obtain a halal certification. Partially, this is because the market is highly concentrated and non-contestable. About 20 individual Sharia scholars control more than half the market, with the top 3 earning an estimated USD (...) 4.5 million in fees per year. Moreover, this market seems plagued with problems, most notably a strong incentive for excessively lenient certification, lack of consensus on what is considered halal and sub-standard governance practices. We discuss solutions to these problems and conclude that a neutral non-profit government entity should assume the role of halal certifiers. (shrink)

In this paper we propose an Ontology of Commercial Exchange (OCE) based on Basic Formal Ontology. OCE is designed for re-use in the Industrial Ontologies Foundry (IOF) and in other ontologies addressing different aspects of human social behavior involving purchasing, selling, marketing, and so forth. We first evaluate some of the design patterns used in the Financial Industry Business Ontology (FIBO) and Product Types Ontology (PTO). We then propose terms and definitions that we believe will improve the representation (...) of contractual obligations, sales processes, and their associated documents. A commercial exchange, for instance, involves mutual agreement to reciprocate actions, such as transferring money, performing a service, or transferring goods. (shrink)

The Avant-Garde: Race Religion War tells an unprecedented story of radical cultural production in the modern era. Rejecting the idea that the avant-garde is only about art and insisting that it is much more than a European phenomenon, Mike Sell redefines the historical, geographical, ideological, disciplinary and theoretical boundaries of avant-garde studies.

The paper uses the example of the failure of bankers and financial managers to understand the risks of dealing in structured financial products, before the financial collapse, to investigate how people respond to crises. It focuses on whether crises cause people to challenge their habitual frames by the application of moral imagination. It is proposed that the structure of financial products and their markets triggered the use of heuristics that contributed to the underestimation of (...) risks. It is further proposed that such framing heuristics are highly specialised to specific contexts and are part of a wider set of heuristics that people carry in their cognitive ‘adaptive toolboxes’. Consequently, it is argued, when a crisis occurs, the heuristics are not challenged, but are simply put away, and other more appropriate heuristics are put to use until a sense of normality returns, and the use of the old heuristics is resumed. (shrink)

With the rapid economic growth and increased national income year by year, individuals and families have an increasingly greater demand for financial products. Banks’ sales of financial products have become a new economic profit growth point for major banks. Based on consumers’ psychological perception, the influencing factors of consumers’ behavior in purchasing bank financial products are studied. The influencing factor model path of consumer purchase behavior is constructed to find out the factors affecting consumers’ (...) purchase of bank financial products and formulate appropriate promotion strategies according to the influencing factors. Through the research methods of literature analysis, small-scale in-depth interview, questionnaire surveys, and statistical analysis, this exploration selects four variables: independent variable, mediator, control variable, and dependent variable. They are influencing factors of purchasing bank financial products, consumers’ willingness to buy bank financial products, consumers’ personal characteristics and consumers’ behavior of purchasing bank financial products. Meanwhile, based on 196 valid questionnaires, regression analysis is carried out through a regression model. The results show that the three influencing factors of consumers’ purchase of bank financial products–perceived convenience, risk value of bank financial products, and satisfaction with the purchase communication process significantly impact consumers’ purchase of bank financial products. They can put forward specific promotion suggestions for banks. This exploration aims to study the optimization of bank financial product promotion strategy from the perspective of consumer psychological perception to provide a reference for subsequent related research. (shrink)

This study is based on the situation of Taiwan listed companies as derivative financial products from 2015 to 2017, analyzing the relationship between the hedging of derivative financial products and characteristics of enterprises and the factors that affect the hedging decision-making of companies. It is found that even after the announcement of Taiwan’s No. 34 and No. 36 bulletins, there are still some problems that are needed to improve in the disclosure of derivative financial product (...) investment information by Taiwan’s listed companies, at least in the disclosure of the reasons for this conduct which is still insufficient. In this study, two-stage regression analysis method is applied to empirical analysis, and it is found that hedging activities are related to corporate characteristics, such as expected financial crisis costs, corporate size, equity issues, growth investment opportunities, and information asymmetry. In the investment of derivative financial products, enterprises should evaluate their own financial characteristics as a reference for the risk avoidance decision. At the same time, it is necessary to investigate different natures of hedging tools used in appropriate risk categories, so as to fully achieve the hedging effect and maximize the hedging benefits. This study also found that companies with higher growth investment opportunities, larger size, and higher financial crisis costs will tend to use derivative financial products for hedging. As for the impact of other industries, it is found that the electronic and electrical machinery industries are more active than other industries in hedging behaviors of undertaking derivative financial products’ transaction. (shrink)

The paper uses the example of the failure of bankers and financial managers to understand the risks of dealing in structured financial products, before the financial collapse, to investigate how people respond to crises. It focuses on whether crises cause people to challenge their habitual frames by the application of moral imagination. It is proposed that the structure of financial products and their markets triggered the use of heuristics that contributed to the underestimation of (...) risks. It is further proposed that such framing heuristics are highly specialised to specific contexts and are part of a wider set of heuristics that people carry in their cognitive ‘adaptive toolboxes’. Consequently, it is argued, when a crisis occurs, the heuristics are not challenged, but are simply put away, and other more appropriate heuristics are put to use until a sense of normality returns, and the use of the old heuristics is resumed. (shrink)

The european steel crisis is due to the steel production overcapacity in regard of a decline in demand, leading to a fierce price competition, with prices 15 to 20 % lower than in the USA and Japan. Measures were taken by the Commission of the European Communities and by the steel companies, consisting of imposing or proposing selling prices, limiting the deliveries, reducing import from third countries, closing down obsolete capacities, increasing productivity. Moreover, most governments have granted financial (...) aid.In the second half of 1980, the market situation has deteriorated rapidly, which fact has led the Council of the European Communities to adopt Art. 58 of the ECSC-Treaty and to set obligatory production quotas. This has proved not to be sufficient. There is a strong tendency within the Commission towards a drastic reduction of overcapacity,as well as a decrease in state aid, the latter being considered as only allowed temporarily as a means of achieving the necessary restructuring and capacity reduction.It can be expected that, given the dramatic market situation, these measures wilt effectively be put into practice in the period to come. At the same time, voluntary agreements concerning production and prices are being discussed among steel producers. (shrink)

We live in a world that increasingly is designed by engineers. So it is worth asking what are engineers doing when they design. There is no simple universal answer to this question, and my strategy for answering it both acknowledges the impossibility of a simple answer, while also identifying and elaborating some important elements to engineering realities. I start with the simple posit that engineering a reality is about controlling aspects of that reality through designed artifice. I then “complexify” this (...) simple idea by examining one company’s multiple contributions to engineering realities. Ometric Corporation was birthed out of the USC NanoCenter in the fall of 2004. The company makes spectrometric equipment that allows for “real time in line” analysis—and control—of materials. Markets that Ometric is focusing on include pharmaceuticals, food and energy. But Ometric lives in an engineer’s reality, while simultaneously working to engineer realities. It must survive financially, initially by selling the ideas behind its innovations to venture capitalists, and then by selling products to markets that may or may not currently exist. Ometric is the product of the University of South Carolina’s efforts to turn its intellectual property into gold for the University. Ometric, thus, is part of a larger effort to re-engineer the University and its relationship to industry. My examination of Ometric, then, identifies some key ways that “control through designed artifice” is a complex, and yet prevalent and powerful force in the construction of our realities. (shrink)

James Stacey Taylor urges academics to become qualitatively better at what we do in terms of scholarship. For while it will inevitably slow down our rush to publish our work for financial or careerist gains, the quality of published research will improve significantly as a result.In Part I, Taylor focuses on some details of a few salient philosophical discussions concerning the moral limits of markets, including the discussion of the Asymmetry Thesis—that there are some things that can legitimately be (...) given away, but which it would necessarily be wrongful to buy or sell—and how, among others, Michael Sandel's, Debra Satz's, and Elizabeth Anderson's respective works in the field have been misunderstood due to poor scholarship. This mis-ascription has caused confusion in the philosophical literature on markets and morals. As a result, Taylor argues, some scholars misattribute to these authors a view which ‘almost nobody holds’ (p. 29).In Part II, Taylor seeks to remedy the problem of poor scholarship as it ‘derails’ productive philosophical discussion: Higher educational research ought not to answer to market demands, but instead ought to answer to academic ones. (shrink)

Due to the pandemic and the suspension of in-person school classes, there was an interruption in the meals served to approximately 40 million students who benefited from the Brazilian National School Feeding Program (PNAE). This article describes two case studies, comparing the strategies adopted by two municipalities for maintaining school feeding during the Covid-19 pandemic in the northern region of the state of Rio de Janeiro, Brazil, and discuss possible impacts of these strategies on food and nutrition security. These municipalities (...) together cover about 81% of the population in the region. In July 2020, we conducted interviews with PNAE municipal managers, following a qualitative approach. We discuss the results in relation to existing Brazilian guidance on food and nutrition security. The municipalities have developed distinct strategies to overcome operational obstacles and maintain PNAE goals, such as distributing food kits and making cash transfers to students’ families. The main determinants of these strategies are financial availability, the relationship between municipal teams and school communities, and the pre-pandemic PNAE logistics and management. Depending on the strategy and duration of the pandemic, the impacts on food and nutrition security can be wide-ranging, affecting food quality and local farmers who sell products to PNAE. It is necessary to acknowledge that this is not a short-term pandemic and find ways to perform school feeding in accordance with PNAE criteria. (shrink)

The concept of the society of consumption says that in this type of society everything is “for sale” if there is a consumer for this. That means that one can sell not only products and services but people, ideas and values as well. On the other hand, people face many global risks. Confronted by risks, they have become equal regardless of their origins, education or financial status. Anxiety about future and awareness of fragility of a human life causes (...) people to be more likely to indulge themselves with different pleasures. They want to “have fun before they die”. The media, advertisements and medicine offer a variety of products and services that are to make one`s life better and to bring more pleasure and happiness to them. Contemporary hedonism is, after all, different in the sense that it does not avoid pain and suffering. People are willing to suffer in the name of the future pleasure. Will this race to satisfy whims and desires end someday? Will the fast defeat the carnival? Is there a place for reflection and altruism? These are some questions that this paper examines. (shrink)

The product market competition has become a global challenge for business organizations in the challenging and competitive market environment in the influx of the COVID-19 outbreak. The influence of products competition on organizational performance in developed economies has gained scholars’ attention, and numerous studies explored its impacts on business profitability. The existing studies designate mixed findings between the linkage of CSR practices and Chinese business firms’ healthier performance in emerging economies; however, the current global crisis due to the coronavirus (...) has made product market completion fierce, which ultimately affects business firms’ performance. This study focuses on this logical global challenge, investigates the rationale, and examines product-market completion impact on firms’ performance operating in the Chinese markets. The study collected data from the annual reports of Chinese business organizations with A-share listing and registered with the database of China Stock Markets and Accounting Research. The study employed a Generalized Method of Moment technique and investigated the connection between product market competition and Chinese firm performance. The empirical analysis of this study highlights the conclusion that market competition positively and significantly affected business firms’ performance. This study specified that product market competition play a dynamic and indispensable role in achieving healthier firm performance in the Chinese markets. This study provides valuable insights on practical implications and future research directions for the scholars to draw interesting results with new study models. (shrink)

Advocates for re-localizing food systems often encourage consumers to support local farmers and strengthen local food economies. Yet, local food systems hinge not only on consumers’ willingness to buy local food but also on whether farmers have the social support networks to address diverse challenges during food production and distribution. This study characterizes the challenges and support systems of farmers selling to local markets in Québec, Canada, across multiple growing seasons using a mixed-methods research design. We sent an online (...) questionnaire to 1046 farmers and conducted follow-up interviews with 15 of the 133 respondents. Our findings show that farmers relied on an average of four support actor groups, particularly employees, customers, and other farmers. Actors played distinct roles in terms of the importance, frequency, and formality of interactions, providing immediate and long-term support through formal and informal relationships across multiple spatial scales (farm, local community, and regional/international). Our thematic analysis showed that support actors helped farmers in four key domains: (1) Knowledge sharing and emotional support; (2) Labour and workforce; (3) Material and financial aid; and (4) Consumer education and business promotion. Farmer associations provided resources to tackle various challenges, acting as bridges across multiple support actor groups. Yet, our results suggest that political desires to encourage local food systems are in some cases poorly matched with resources to address specific types of challenges farmers face. Specifically, overlooking the role of diverse social support actors in helping farmers build food production and distribution capacity could undermine efforts to foster localization. (shrink)

The development of product innovations in small and medium enterprises is determined mainly by their financial capabilities. These enterprises usually encounter financial problems when it comes to the introduction of product innovations. Therefore, managers should manage the company’s finances in the way that will enable them using all available means to solve these problems. This means that they ought to use external financial resources to a greater extent (not only in the form of loans). The article focuses (...) on the financial conditions for the development of product innovations in small and medium enterprises, while other forms of innovation are omitted. Product innovations are given the highest priority by mentioned companies. The analysis covered the years 2010-2017. The case study allowed to present changes in this most important form of activity for enterprises in the SME sector during the analyzed periodFor the purpose of this paper, large companies have also been included in the study in order to extend the comparative base.. In the article there were used data published by GUS, NBP, PARP, Eurostat. The article presents the following thesis: The innovative activity of Polish enterprises takes mainly the character of product innovations, which often require large financial outlays. Two hypotheses were used to verify the thesis: HPT1: The increase in the outlays of enterprises on technical progress and on research and development works (R&D) leads to companies' own the development of product innovations. HPT2: The resources are the main source of financing for product investments. Due to the greater capacity of large companies to spend on R&D, they are more active in product innovation than small companies, whose financial resources are significantly limited. Broader implementation of product innovations in SMEs requires wider access to finance and greater involvement of many participants. In order to be able to take advantage of all possible opportunities to renew the production programme, the company should ensure appropriate internal and external integration in the management of the process. (shrink)

Whereas previous studies have criticized low-quality products for inadequate safety, this paper considers only safe products, and it examines the ethics of designing and selling low-quality products. Product quality is defined as suitability to a general purpose. The duty that companies owe to consumers is summarized in the Consumer-Oriented Process principle: “to place an increase in the consumer’s quality of life as the primary goal for producing products.” This principle is applied in analyzing the primary (...) ethical justifications for low-quality products: availability and applicability. Finally, a low-quality product should be designed afresh, not by altering an existing high-quality product. (shrink)

Whereas previous studies have criticized low-quality products for inadequate safety, this paper considers only safe products, and it examines the ethics of designing and selling low-quality products. Product quality is defined as suitability to a general purpose. The duty that companies owe to consumers is summarized in the Consumer-Oriented Process principle: “to place an increase in the consumer’s quality of life as the primary goal for producing products.” This principle is applied in analyzing the primary (...) ethical justifications for low-quality products: availability and applicability. Finally, a low-quality product should be designed afresh, not by altering an existing high-quality product. (shrink)

Product-harm crises can trigger product recalls or product discards, which is very likely to cause secondary pollution to the environment. Also, these crises may harm customers’ health and threaten firms’ survival. To foster low-carbon economy and green development in such complex systems, this paper studies the internal mechanism of the product crisis and its impact on the firm value. It proposes a two-stage model to avoid the endogeneity of product-harm crises. In the first stage, this paper assesses the effect of (...) firms’ leverage on their capacity to produce higher quality products. In the second stage, this paper conducts the impact of these crises on stock prices. Then, it depicts the financial effects of product-harm crises over time, and analyzes the differences of such effects based on brand equity. Results show that book leverage can positively impact firms’ capacity to produce high-quality products. In addition, the market’s response to product-harm crises is significant at 1% level, and with the increase in severity, the market reaction is more prominent. Furthermore, its negative effect is persistent for a firm experiencing a severe crisis. Luckily, brand equity can mitigate this negative impact. These findings provide some ways to improve product performance and firm value in the green context. (shrink)

With the development of the globalization of science and technology, innovation has become an important driving force for regional economic development. As a core element of regional innovation, financial R&D resources have also become a key element to enhance national innovation capabilities and national economic competitiveness. National and regional innovation capabilities have a direct impact. There are also many deep-seated problems behind the world-renowned achievements, such as irrational industrial structure, insufficient independent innovation capabilities, low resource utilization efficiency, and the (...) service quality and efficiency of financial institutions for the transformation of total factor productivity. These problems extremely restrict the efficiency upgrade and further development of our country’s total factor productivity. This study uses the DEA-Malmquist index model to measure the efficiency of fiscal R&D resource allocation in 28 provinces and regions in China in the past 10 years and uses Mapinfo12.0 software to analyze regional differences in the efficiency of fiscal R&D resource allocation in China from a spatial perspective. During the year, the overall R&D resource allocation efficiency of 28 provinces and autonomous regions in China has shown an upward trend. The efficiency of fiscal R&D resource allocation and the concentration of financial factors have had a positive impact on total factor productivity, transform and upgrade factors, increase total factor productivity, and provide empirical evidence for building a strong country. (shrink)

ABSTRACTMobilizing Foucault’s genealogy, this article investigates how an “ethics event”—the involvement by some sell-side financial analysts in the United States and United Kingdom across the past two decades in corporate governance—emerged. It is found that the complex relations formed between specific historical precedents, normative discourses, and fields of power rendered certain issues in financial markets morally problematic and constructed analysts’ corporate governance work as a potential solution. Contributing to research in finance ethics, this article develops a novel perspective (...) to conceptualize the rise of ethically relevant practices in financial markets, focusing on how ethical problems and their solutions are outcomes of discursive construction and power relations. This article also revises our understanding of the boundary between technical norms and moral norms in financial markets. When ethical crises occur, it is argued, transforming technical practices and revising the technical norms adopted by financial professionals has the potential to tackle ethical concerns. (shrink)

A product harm crisis undermines a firm’s reputation as well as its managers’ career outlook. To shake off the stigmatization resulting from the PHC and regain a firm’s legitimacy among stakeholders, managers usually face an ethical dilemma as they choose to be transparent about the crisis’ financial implications or to obfuscate them to neutralize the negative impact of the PHC. We find evidence that managers engage in income-increasing earnings management when their firms experience PHCs. Moreover, while income-increasing earnings management (...) in PHCs reduces the likelihood of customer loss and CEO forced turnover in the short run, such behavior can be deemed opportunistic and unethical as it carries long-run negative consequences in terms of a higher likelihood of accounting restatement and weaker future operating performance. Finally, managers in firms that are subject to stricter external monitoring and managers in firms with proactive ethical policies are less likely to engage in upward earnings management in PHCs. (shrink)

This study treats firm productivity as an accumulation of productive intangibles and posits that stakeholder engagement associated with better corporate social performance helps develop such intangibles. We hypothesize that because shareholders factor improved productive efficiency into stock price, productivity mediates the relationship between corporate social and financial performance. Furthermore, we argue that key stakeholders’ social considerations are more valuable for firms with higher levels of discretionary cash and income stream uncertainty. Therefore, we hypothesize that those two contingencies moderate the (...) mediated process of corporate social performance with financial performance. Our analysis, based on a comprehensive longitudinal dataset of the U.S. manufacturing firms from 1992 to 2009, lends strong support for these hypotheses. In short, this paper uncovers a productivity-based, context-dependent mechanism underlying the relationship between corporate social performance and financial performance. (shrink)

Financial products and options are frequently complex and difficult for consumers to understand, which, alongside positively oriented sales pitches and predatory practices, may lead to uninformed and hazardous financial decisions. While several legal reforms have been implemented to improve consumers’ understanding of financial products, these modifications have only achieved mixed results. An ongoing challenge is the passive nature of such modifications, giving rise to confirmation bias—noticing the information which confirms one’s belief about a product, while (...) ignoring or not paying enough attention to the potential risks. The aim of this study was to test an implementable form of public policy to help older adults successfully navigate these financial decisions. We tested whether a self-evaluation worksheet, involving an active manipulation of financial content, would significantly impact older adult participants’ responses in an experimental reverse mortgage scenario. Forty community-dwelling, healthy older adults were randomized to one of two conditions: Control Condition and Manipulation Condition. In addition to completing a comprehensive neuropsychological examination, participants were administered the Reverse Mortgage Task. Results indicated that a simple yet active manipulation—imparting accurate and understandable information regarding a complex financial product that must be further manipulated—led to the following among participants in the Manipulation Condition: declines in mood; superior understanding of the financial product; and reduced intention of purchasing the financial product. In order for older adults to be well informed about reverse mortgages, policies must be put in place to ensure that adequate and accurate information has been not only provided but also actively processed by the individual. (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)

Financial and prosocial biases in favor of attractive adults have been documented in the labor market, in social transactions in everyday life, and in studies involving experimental economic games. According to the taste-based discrimination model developed by economists, attractiveness-related financial and prosocial biases are the result of preferences or prejudices similar to those displayed toward members of a particular sex, racial, ethnic, or religious group. Other explanations proposed by economists and social psychologists maintain that attractiveness is a marker (...) of personality, intelligence, trustworthiness, professional competence, or productivity. Evolutionary psychologists have argued that attractive adults are favored because they are preferred sexual partners. Evidence that stereotypes about attractive people are causally related to financial or prosocial biases toward them is weak or nonexistent. Consistent with evolutionary explanations, biases in favor of attractive women appear to be more consistent or stronger than those in favor of attractive men, and biases are more consistently reported in interactions between opposite-sex than same-sex individuals. Evolutionary explanations also account for increased prosocial behavior in situations in which attractive individuals are simply bystanders. Finally, evolutionary explanations are consistent with the psychological, physiological, and behavioral changes that occur when individuals are exposed to potential mates, which facilitate the expression of courtship behavior and increase the probability of occurrence of mating. Therefore, multiple lines of evidence suggest that mating motives play a more important role in driving financial and prosocial biases toward attractive adults than previously recognized. (shrink)

While various strategic business issues related to product design have been explored by academicians and practitioners, one issue has largely been ignored: how do financial markets assess and evaluate companies’ product design? The purpose of this article is to examine this issue, especially when it comes to the assessments and evaluations made by the most essential actors of contemporary financial markets: investment analysts and institutional investors. I develop propositions concerning the product design-related evaluative schemes and heuristics used by (...) the financial market actors in evaluating companies as investment opportunities. I illustrate my propositions with examples from, e.g., the mobile phone industry as well as with interview excerpts from interviews with investment analysts and institutional investors. Propositions are provided both for assessments of companies’ individual end products (‘design as the end product’ perspective) and for assessments of companies’ design capabilities (‘design as a capability’ perspective). In essence, the propositions highlight that the evaluative schemes used by financial market actors are partly rational, yet involve biases and are likely to lead to overvaluation and undervaluation of certain kinds of product designs by certain kinds of companies. Thus, even from the perspective of profit-maximization, many of the evaluative schemes of the financial market actors are, at most, quasi-rational. Moreover, the evaluative schemes of the financial market actors may motivate company managers to pursue certain kinds of product design rather than others—and may even lead to self-reinforcing (vicious or virtuous) circles of certain kinds of product designs being advocated. (shrink)

The disposition effect refers to the tendency of investors to sell winners too early and hold on to losers too long, which is one of the most documented and robust decision biases. However, few studies have looked beyond demographic and social factors on the disposition effect. The current study investigated the association between financial self-efficacy (one’s belief about their personal capability in ultimate financial goals achieving), versatile cognitive style (an individual’s capability in deploying the experiential or rational mode (...) in ways that are contextually appropriate), and the disposition effect. A total of 285 employees from finance-related business completed anonymous questionnaires regarding financial self-efficacy, rational-experiential inventory, and the disposition effect. Our findings revealed that financial self-efficacy was significantly and positively associated with versatile cognitive style and the disposition effect. Further, versatile cognitive style partially mediated the relationship between financial self-efficacy and the disposition effect. Our findings provide valuable guidance for individual investors to make financial decisions based on their characteristics. (shrink)

Adding to contemporary debates about the relationship between financialization and neoliberalism, this article investigates their entanglement at the level of subjectivity. Primarily, the article argues that financialization and neoliberalism are converging to produce a new form of subjectivity, post-profit homo œconomicus, an always indebted but credit-seeking enterprise. The value of this approach, the article demonstrates, is that it provides theoretical tools capable of grasping the differential production of subjectivity across the uneven and unequal striations of contemporary neoliberal society, from precarious (...) workers of the gig economy to financial sector elites. The article examines two figures who have become central to public and academic debates about neoliberalism and financialization – the low-waged, precarious worker and the indebted student – to consider how neoliberal subjectivity is produced and distributed unevenly. It concludes that within these fragmentary socioeconomic positions are different instantiations of always indebted but credit-seeking human capital. (shrink)

In the beginning of the 1970s, Michel Foucault dismisses the terminology of ‘exclusion’ for his projected analytics of modern power. This rejection has had major repercussions on the theory of neoliberal subject-formation. Many researchers disproportionately stress how neoliberal dispositifs produce entrepreneurial subjects, albeit in different ways, while minimizing how these dispositifs sometimes emphatically refuse to produce neoliberal subjects. Relying on Saskia Sassen’s work on financialization, I argue that neoliberal dispositifs not only apply entrepreneurial norms, but also suspend their application for (...) groups that threaten to harm the population’s profitability. Neoliberal dispositifs not only produce entrepreneurial subjects, but also surplus populations that are expelled from the overall population to maintain its productivity. Here, the concept of ‘exclusion’ is appropriate if understood in Agamben’s sense of an inclusive exclusion. The surplus population is part of neoliberal dispositifs, but only as the element to be abandoned. (shrink)

The goal of this experimental project was to investigate lay peoples’ perceptions of epistemic authority (EA) in the field of finance. EA is defined as the extent to which a source of information is treated as evidence for judgments independently of its objective expertise and based on subjective beliefs. Previous research suggested that EA evaluations are biased and that lay people tend to ascribe higher EA to experts who advise action (in the case of medical experts) or confirm clients’ expectations (...) (in the case of politicians). However, there has been no research into biases in lay evaluations of financial experts and this project is aimed to fill this gap. Experiment 1 showed that lay people tended to ascribe greater authority to financial consultants who gave more active advice to clients considering taking out a mortgage. Experiment 2 confirmed the action advice effect found in Experiment 1. However, the outcomes of Experiments 2 and – particularly – 3 suggested that this bias might also be due to clients’ desire to confirm their own opinions. Experiment 2 showed that the action advice effect was moderated by clients’ own opinions on taking loans. Lay people ascribed the greatest EA to the advisor in the scenario in which he advised taking action and where this coincided with the client’s positive opinion on the advisability of taking out a loan. In Experiment 3 only participants with a positive opinion on the financial product ascribed greater authority to experts who recommended it; participants whose opinion was negative tended to rate consultants who advised rejecting the product more highly. To conclude, these three experiments revealed that lay people ascribe higher EA to financial consultants who advise action rather than maintenance of the status quo, but this effect is limited by confirmation bias: when the client’s a priori opinion is salient, greater authority is ascribed to experts whose advice confirms it. In this sense, results presented in the present paper suggest that the action advice effect might be also interpreted as a specific manifestation of confirmation bias. (shrink)

Before the Doi Moi reforms in 1986, Viet Nam’s economy was devastated by 30 years of warfare with two major military powers, France and the US, ending in 1975. In the subsequent 10 years, Viet Nam suffered from failing economic experiments, including agricultural cooperatization, “industry-commerce rehabilitation,” price-wage-currency reform, among others, under the centrally planned mechanism (Wood 1989), as well as the international isolation and a US trade embargo when its troops entered Cambodia to overthrow the Khmer Rouge (Riedel and Turley (...) 1999). Its per-capita gross domestic product (GDP) declined to USD 97 in 1989 whereas the ratio of external debt to GDP reached 330%. 1 The economy languished and became one of the poorest in the world (VGP 2016). (shrink)

This research addresses equity in geographic access to financial services. As financial products and services continue to become more accessible and affordable, many low‐ to moderate‐income Americans remain unbanked and underbanked, relying instead upon informal, alternative financial service providers, including check cashing outlets and payday lenders. While geographic access to affordable financial products and services assists in the successful asset building strategies of economically vulnerable households, concerns that access to financial services is uneven (...) persist. This article uses geographic information systems and spatial binary logistic regression analysis to test the hypothesis that sociodemographic characteristics and mortgage lending variables have a predictive relationship on the presence of financial deserts—census tracts where check cashing outlets are more prevalent than banks—in southeastern Pennsylvania. Results of comparison of means and regression analysis reveal that these tracts are associated with higher than average population density, lower levels of median household income, a higher proportion of Black and Latinx residents, and higher levels of mortgage application denial. This article contributes to the ongoing debate over the emergence of a two‐tiered or dual financial service delivery system, whereby financial products and services are bifurcated based on socioeconomic status and geography. (shrink)

In the mid-1980s, social scientists compared outcome measures of related drug studies, some funded by private companies and others by nonprofit organizations or government agencies. The concept of a “funding effect” was coined when it was discovered that study outcomes could be statistically correlated with funding sources, largely in drug safety and efficacy studies. Also identified in tobacco research and chemical toxicity studies, the “funding effect” is often attributed, implicitly or explicitly, to research bias. This article discusses the meaning of (...) scientific bias in research, examines the strongest evidence for the “funding effect,” and explores the question of whether the “funding effect” is an indicator of biased research that is driven by the financial interests of the for-profit sponsor. This article argues that the “funding effect” is merely a symptom of the factors that could be responsible for outcome disparities in product assessment. Social scientists should not suspend their skepticism and choose as a default hypothesis that bias is always or typically the cause. (shrink)

The potential for financial conflicts of interest (COIs) to damage the credibility of scientific research has become a significant social concern, especially in the wake of high-profile incidents involving the pharmaceutical, tobacco, fossil-fuel, and chemical industries. Scientists and policy makers have debated whether the presence of financial COIs should count as a reason for treating research with suspicion or whether research should instead be evaluated solely based on its scientific quality. This paper examines a recent proposal to develop (...) criteria for evaluating the credibility of research without considering its source of funding. It concludes that proposals of this sort are likely to be either ineffective or impractical in many cases. Nevertheless, this does not imply that all research funded by those with an interest in the outcome must be placed under a cloud of suspicion; there are conditions under which research is at much more serious risk of being corrupted than in other cases, and attention to these conditions can guide productive responses to financial COIs. (shrink)

One powerful argument against self-ownership is that it degrades personhood by leading individuals to view themselves and others as mere instrumental goods, alienable commodities to be exchanged in markets like other products and services. In general terms, this line of criticism (called the “commodification argument”) maintains that a direct and causal relationship exists between certain legal institutions (self-ownership) and certain attitudes (instrumentalism) and that the undesirability of the latter justifies restrictions on the former. In this article, I will critically (...) examine Margaret Jane Radin’s book Contested Commodities (1996), which presents a well-developed, compelling version of the commodification argument. I will advance three central points over the course of the article: first, the purported causal connection between self-ownership and instrumentalism is either weak or nonexistent; second, the commodification argument does little independent moral work, tending instead to be parasitic on arguments against economic, racial, and gender inequality; and third, what independent moral work it does do seems to be directed not so much at self-ownership as at liberal neutrality. I will conclude by showing that the weaknesses of Radin’s diverse defenses of the commodification argument cast doubt upon the anticommodificationist enterprise as a whole. (shrink)

This paper is an examination of the role of trust in the previous seven papers in this issue of the Journal. Trust and trustworthiness are briefly characterized; their importance in business itself and in business ethics is briefly described; and each paper is discussed in relation to how trust figures in the ethical issues it raises. The overall discussion brings out the need for further work on the nature of trust and on the elements in business, such as transparency, that (...) apparently help to sustain it. (shrink)

This article makes first use of a set of databases that are authoritative, independent, and consistent to examine an old research question: do firms hurt their financial performance by damaging stakeholder interests? The databases are US government on-line listings of fines for environmental breaches, unsafe workplaces, fraudulent accounting standards, and product recalls. These measures are assumed to proxy for signals to stakeholders of the environmental, social, and governance (ESG) risks in transacting with the firm and appear to have fewer (...) biases than conventional measures of stakeholder standards. Using a sample of all non-financial S& P 500 firms during the most recent 1998-2003 full cycle in the market, after controlling for firm-specific differences, sales margins of firms fell by 0.8% if they announced a product recall and by 0.4% if cited by OSHA for an unsafe workplace; and shareholder return was significantly reduced by an EPA or SEC prosecution. This study links the risk of transaction uncertainty, information signaling theory, and the resource-based view of the firm to company financial performance. Results support the normative assumption that a firm's sales margin will be damaged by unethical treatment of stakeholders as evidenced by ESG breaches, presumably because risk-averse customers and suppliers are alert to signals of counterparty risk. (shrink)

Richard A. Posner's two books on the financial crisis focus on possible macroeconomic (Keynesian) causes of it, neglecting legal causes that would have had only microeconomic effects, yet could have been responsible for the crisis. Specifically, Posner accepts too readily the conventional wisdom that banks? leverage levels, hence their capital cushions, were deregulated; this ignores Basel I, Basel II, and the Recourse rule, which internationally and (in the last case) in the United States minutely regulated not only leverage levels (...) but the composition of banks? assets. These regulations penalized banks for making business loans in comparison to mortgage loans, and it further penalized them for keeping mortgage loans rather than selling them for securitization and then buying back the ?senior? tranches of the resulting mortgage-backed securities. These regulations may explain the overconcentration of mortgage risk in the banks, and thus the financial crisis. (shrink)