EXCHANGE RATE SYSTEMS AND INVESTOR PREFERENCES

This paper investigates whether or not floating exchange rates add an undesirable level of risk to international investment positions. For investors holding currencies, we find that fixed exchange rates are preferred to floating exchange rates, which supports the often-argued case that floating exchange rates do excessively increase the riskiness of investment. However, in the more realistic case of investors holding foreign securities, we find that floating exchange rates are preferred to fixed exchange rates; that is, we find that floating exchange rates have not added an undesirable level of risk to international investment positions.     

Occupational stress and biomechanical risk in a high fashion clothing company

Psychosocial discomfort may amplify job-related risk factors. The aim of this study is to evaluate job stress in a high fashion clothing company with upper limb biomechanical overload due to repetitive and forceful manual activities. Biomechanical risk was analyzed and in part reduced using the OCRA Check list. A total of 518 workers (433 females and 85 males) were investigated to determine anxiety (by STAI 1 and 2), occupational stress (using the Italian version of the Karasek Job Content Questionnaire) and perception of symptoms. Final biomechanical assessment did not reveal high risk jobs, except for cutting. Although the perception of anxiety and job insecurity was within the normal range, all the workers showed a high level of job strain (correlated with the perception of symptoms) due, probably, to very low decision latitude. It was suggested that job strain may increase the perception of symptoms. Moreover, the result of this study indicates that musculoskeletal overload has to be further analyzed since its low level is not in agreement with the level of discomfort due to the repetitive tasks.     

Intrinsic and extrinsic effects on behavioral tax biases in risky investment decisions

Individuals often do not take taxes correctly into account, which results in distorted or unexpected investments. We shed further light on the discussion of such behavioral tax perception biases by analyzing intrinsic and extrinsic effects on investment decisions. We study two dimensions: (1) the influence of emotions and perceived risk (individual dimension, intrinsic effects) and (2) the influence of available tax information by varying tax complexity and salience (tax system dimension, extrinsic effects). In our laboratory experiment, we construct the payoff structure such that the subjects are confronted with exactly the same choices in net terms in a situation with or without a capital gains tax. This design allows us to identify pure tax perception biases. We show that both dimensions are able to explain tax perception biases. In particular, we find evidence that perceived risk is lower and consequently willingness to take risk is higher with a capital gains tax (with full loss offset provision) than without taxation. Furthermore, this positive effect on risky investment is higher in a situation with a rather low level of tax information in which tax complexity is high and tax salience is low.     

Mutual-Fund Benchmarking and Market Bubbles: A Behavioral Approach

Dynamics of equity risk premium is not directly measurable on the market. Numerous studies and empirical research analyse its volatility also considering the time span, concluding that the dynamics of equity risk premium over time is inversely proportional to the economic cycle. This study analyses the passive role that, implicitly, would place institutional investors in such a context. In reality, savings management is delegated to a small number of professional operators (institutional investors), as opposed to pure theoretical models in which every person can act directly on the market thus ensuring unlimited price elasticity. Institutional investors should be rational and completely informed so that they can assume an anticyclical position on the market. Thus, supply and demand should quickly smooth over emerging price pressures and avoid price bubbles. We analyse one possible explanation for this situation not to occur, namely, that professionals suffer from operational limits that prevent them from doing their job in the best possible way. Using empirical evidence from the Italian Stock Exchange (Comit Index), we conclude that three factors reduce the freedom of institutional investors to manage their portfolios – the market target size, the fund structure, and the benchmarking – and discuss some implications for each of them.     

水务市场BOT项目的运作与风险分析

该文从中国水务市场现状分析入手,着重对水务市场投资中BOT项目的运作与风险进行分析,并对于水务市场的投资者远期可选择的发展方向和业务拓展领域提出建议。     

Determinants of Portfolio Efficiency Losses in US Self-directed Pension Accounts

This empirical study evaluates the magnitude of efficiency losses of household portfolio choices in self-directed pension accounts (SDAs). It uses data from the Survey of Consumer Finances (SCF). The determinants of the magnitude of efficiency losses across household investors are investigated in detail. The findings of this study lend empirical support to the belief that the magnitude of efficiency losses for household investors differs with the different demographic characteristics and investment propensities. In particular, household investors with long-investment horizons, with more autonomy of choices in their SDAs, or with the tendency to select high levels of portfolio risk in SDAs are more vulnerable to efficiency losses. Factors to predict the levels of portfolio risk maintained by household investors in their SDAs are also explored.     

A Comparison of Actual and Perceived Sexual Risk Among Older Adults

Sexual risk among older adults (OAs) is prevalent, though little is known about the accuracy of sexual risk perceptions. Thus, the aim was to determine the accuracy of sexual risk perceptions among OAs by examining concordance between self-reported sexual risk behaviors and perceived risk. Data on OAs aged 50 to 92 were collected via Amazon.com’s Mechanical Turk. Frequency of sexual risk behaviors (past six months) were reported along with perceived risk, namely, sexually transmitted infection (STI) susceptibility. Accuracy categories (accurate, underestimated, overestimated) were established based on dis/concordance between risk levels (low, moderate, high) and perceived risk (not susceptible, somewhat susceptible, very susceptible). Approximately half of the sample reported engaging in vaginal (49%) and/or oral sex (43%) without a condom in the past six months. However, approximately two-thirds of the sample indicated they were “not susceptible” to STIs. No relationship was found between risk behaviors and risk perceptions, and approximately half (48.1%) of OAs in the sample underestimated their risk. Accuracy was found to decrease as sexual risk level increased, with 93.1% of high-risk OAs underestimating their risk. Several sexual risk behaviors are prevalent among OAs, particularly men. However, perception of risk is often inaccurate and warrants attention.     

FROM HONEYMOON TO DIVORCE: INSTITUTION QUALITY AND FOREIGN INVESTORS' OWNERSHIP CONSOLIDATION IN CHINA

In China, joint ventures (JVs) between foreign investors and Chinese local firms were the most popular form of foreign affiliates before 2001. Over time, with policy space to operate as foreign wholly owned (WOs), many foreign investors in JVs chose to consolidate ownership and turned JVs into their WOs. Here, we examine how institution quality affects foreign investors' JV‐to‐WO ownership consolidation odds. For each province‐year, we construct an institution quality index from the business and judicial quality indicators, and further compute a relative quality index to highlight provincial variations. Using more than 43,000 JVs operating in China's 30 provinces over 1998–2007, we find that increases in institution quality decrease the odds of foreign investors to divorce their Chinese local partners. The odds for foreign investors in JVs to consolidate ownerships are significantly higher if they operate in provinces with relatively weaker institution quality. The odds of foreign investors' JV‐to‐WO decision vary with JVs' local firms being state‐owned enterprises (SOEs) and non‐SOEs, with foreign investors' origins from Hong Kong, Macao, and Taiwan (HMT) and other regions (Foreign), and with foreign investors' initial equity positions. Our results are not driven by foreign direct investment policy shocks, and are robust to alternative measures of institution quality. (JEL F23, L23)     

The Association Between the New Rural Cooperative Medical System and Health Care Seeking Behavior Among Middle-Aged and Older Chinese

The new rural cooperative medical system (NCMS) is the primary form of social insurance in rural China. This study aims to explore how the NCMS influences the health care seeking behaviors of middle-aged and older Chinese, considering the family and community contexts. A series of multi-level (three-level) models using data from the first wave of the China Health and Retirement Longitudinal Study (CHARLS) are used. We find that the presence of NCMS coverage has a statistically significant association with seeking inpatient and outpatient care but not physical checkups among middle-aged and older rural Chinese: Rural residents insured by NCMS were more likely to seek inpatient and outpatient care than people who were not insured. Other factors at the individual level (such as self-perceived health and number of doctor-diagnosed chronic diseases), the family level (such as living arrangements and household expenditures), and the community level (such as the presence of township hospitals within the community) are also significant predictors of health care seeking behaviors.     

China’s flexible overseas food strategy: food trade and agricultural investment between Southeast Asia and China in 1990–2015

Using the UN Comtrade database and multiple sources of agricultural investment data, this paper outlines the emerging patterns of food trade and agricultural investment between Southeast Asian countries and China. The paper shows that China has adopted a flexible overseas food strategy. First, China has increased food export and shifted its food trade with Southeast Asia from a dependent relationship towards a complementary relationship at the regional level in recent years. Second, China tends to adapt to the existing conditions of food production and trade in Southeast Asian countries instead of fundamentally altering them. Finally, Chinese overseas agricultural investment is less driven by domestic food demand but more oriented for profit making, and this gives it flexibility in diversifying investment. An adequate understanding of China’s flexible food strategy in bilateral and multilateral relationships holds implications for global food security.     

THE IMPACT OF FINANCIAL RESTRUCTURING AND CHANGES IN CORPORATE CONTROL ON INVESTMENT AND EMPLOYMENT IN THE U.S. PETROLEUM INDUSTRY

This article investigates the effects of changes in market conditions and the financial structure of domestic petroleum firms on employment and investment in offshore oil leases. Important theoretical issues include the extent to which managerial power in firms has been challenged by intervention from financial markets and institutional investors and the effects of changes in financial control on employment and inventory investment. A pooled cross-section time series data set was assembled for forty large oil companies for 1978–1989. A dynamic analysis of company employment levels and investment in offshore oil leases in the Central Gulf of Mexico reveals that falling oil prices and lower domestic oil consumption reduced spending on offshore leases. Some support was found for the agency theory's claim that lower free cash flow reduced spending on offshore leases in the late eighties. Support was also found for an executive defense strategy (Useem 1993), where petroleum company managers reduced lease spending and employment as an adaptation to changes in market fundamentals and external threats from capital markets and institutional investors.     

Adolescents' Perceptions of Parental Behaviors as Predictors of Adolescent Self–Esteem in Mainland China

Parents' child–rearing behaviors have been identified as major sources of influence on the self–esteem of adolescents from Western societies and Chinese adolescents in Hong Kong. The pattern of relationships found in samples of Hong Kong adolescents has been similar to the pattern found among samples of U.S. adolescents, but contrary to what might be expected in collectivistic societies such as mainland China. The purpose of this study, therefore, was to test specific dimensions of parenting behaviors as possible predictors of adolescents' self–esteem in mainland China. Self–report data were acquired for this study from 480 adolescents who attended secondary schools located in Beijing. Results indicated that patterns of socialization between parents and adolescents in mainland China were similar to those found in the United States, although explanations for these results may differ from those characteristic of the United States and other Western societies. Reasoning, monitoring, and autonomy–granting behavior by Chinese parents were positive predictors, whereas punitiveness was a negative predictor of Chinese adolescents' self–esteem (both males and females). Contrasting with patterns commonly found in the United States was the finding that parental support was not a predictor of Chinese adolescents' self–esteem.     

Information Seeking about Global Climate Change among Adolescents: The Role of Risk Perceptions, Efficacy Beliefs and Parental Influences

Global climate change is likely to have significant impacts on public health. Effective communication is critical to informing public decision making and behavior to mitigate climate change. An effective method of audience segmentation, the risk perception attitude (RPA) framework has been previously tested with other health behaviors and classifies people into 4 groups on the basis of their perceptions of risk and beliefs about personal efficacy. The 4 groups - indifference (low risk, weak efficacy), proactive (low risk, strong efficacy), avoidance (high risk, weak efficacy), and responsive (high risk, strong efficacy) - are hypothesized to differ in their self-protective behaviors and in their motivations to seek information. In this paper, we extend the RPA framework in two ways. First, we use it at the household level to determine whether parental classifications into the 4 groups are associated with their teenage children's classification into the same 4 groups. Second, we predict adolescent information-seeking behaviors on the basis of their and their parents' membership in the 4 RPA groups. Results (N = 523 parent-adolescent pairs) indicated that parental membership in the 4 RPA groups was significantly associated with children's membership in the same 4 groups. Furthermore, the RPA framework was a significant predictor of adolescent information-seeking: those in the responsive and avoidance groups sought more information on climate change than the indifference group. Family communication on global warming was positively associated with adolescents' information-seeking. Implications for interventions are discussed.     

The value of being precise

This study investigates how individuals assess imprecise information. We focus on two essential dimensions of decision under uncertainty, outcomes and probabilities, and their respective precision. We believe the precision of information is highly relevant in the investment setting, as reflected in the well-known “home (familiarity) bias”, and the outcome and probability dimensions, separately or jointly, may affect investors’ knowledge of uncertainty and perceived risk of the investment options, and subsequently affect investors’ choices. To test this conjecture, we conducted three experiments. Our results show that 1) participants demonstrate a pattern of preference for precision and aversion of extreme vagueness and associate vagueness with higher perceived risk and lower investment (experiments one and two); 2) participants prefer vague outcome information to vague probability information (experiment two); 3) familiarity indeed positively affects the precision of estimated values, but this association is stronger for the outcome dimension than for probabilities (experiment three). Our results confirm that precision in information, especially in the outcome dimension has an impact on investors’ resource allocation choices.     

Temporary Migration and The Spread of STDs/HIV in China: Is There A Link?1

Using data from the literature and a specially designed community‐level survey, this article examines the link between temporary migration and the spread of HIV/STDs in China. The results suggest that temporary migrants not only are overrepresented among people with STD/HIV risk‐taking behaviors, but also account for disproportionately more STD patients and persons infected with HIV. It is imperative that STD and AIDS prevention intervention and education programs in China target temporary migrants. More research is needed that focuses on the underlying mechanisms by which the process of temporary migration renders migrants vulnerable to STD/HIV risk‐taking behaviors.     

Investor happiness

We study investor happiness in a panel survey of brokerage clients at a UK bank. When investors anticipate future happiness, they set their return aspirations according to personal portfolio risk, objectives, investment horizon, confidence, and other individual characteristics. They are accurate in their forecasts, only rarely are investors unhappy with outcomes they predicted they would be happy with, and vice versa. However, determinants of experienced happiness only partially correspond to the ones found for anticipated happiness. In particular, relative performance plays an important role investors do not anticipate. Having outperformed other people contributes to investor happiness, as does active trading success.     

"MEN I MESS WITH DON'T HAVE ANYTHING TO DO WITH AIDS":

Pivotal in HIV/STD intervention and prevention is how individuals perceive risk. This article discusses how ethnotheory can be used to understand the underpinnings of risk perception from the subject's perspective. Ethnotheory's theoretical and methodological character extends present models used to explain sex-related HIV behaviors and provides insights into risk perception useful for the development of effective intervention strategies. Four detailed ethnographic excerpts from low-income African American and Mexican American men and women illustrate how people form perceptions of risk and how information gained through ethnotheory is useful in the design of culturally relevant interventions.     

The Politics of Investment and Growth in Egypt: Experimenting with a New Approach

‘Improve the investment climate!’ is the dominant advice for governments wishing to achieve substantial increases in productive private investment. However, national‐level investment‐climate approaches have been criticised for not paying adequate attention to context and feasibility. This article experiments with a new approach which focuses on sectors and on relationships between policy‐makers and investors, and shows how their common interest helped to overcome obstacles to investment and growth in Egypt. Such public‐private relationships can be abused but they have provided effective transitional arrangements for enhancing investment and inducing a new growth dynamic.     

How SES May Figure in Perceptions of Zika Risks and in Preventive Action

abstract

The present study intended to determine how the socioeconomic status (SES) of citizens and public health communications help explain citizens’ risk perception and actions taken during Zika virus outbreaks in 2016. We used data from a nationally representative study conducted in March 2016 by the Associated Press–National Opinion Research Center to analyze 831 American adult responses regarding Zika. We found that respondent risk perception and actions taken diminished as SES level rose. Risk perception was also found to mediate preventive actions’ associations. To quell the global spread of emerging infectious diseases (EIDs) like Zika, health organizations worldwide must understand how SES contributes to Zika (and other future EIDs) risk perception and preventive action. A more compelling form of public health communications must be developed that takes into account the impact made on future outbreaks and infections by these higher-SES “risk assessments.”     

Introduction: New Dynamics of Chinese Migration to Europe

This introduction provides a presentation of the articles in this special issue by framing the contributions in the context of new dynamics related to Chinese migration studies and the ongoing discussions of the impact of China’s powerful economic position. The articles offer new empirical insights to develop new understandings of recent migration and mobilities between China and Europe. By focusing on the changing socio-economic composition of Chinese migrants in Europe towards highly skilled professionals and investors, changes in Chinese entrepreneurship, increasing Chinese political engagement and activism, and new migration from Europe to China by Chinese descendants, these contributions reflect the importance of developing new theories to better grasp the causes and effects of China’s new global economic and political position for Chinese migration. The selected articles identify promising directions for future work on the global discussions of the impact of China as a diaspora state and ensuing policy implications.