MORAL HAZARD AND CAPITAL STRUCTURE DYNAMICS

We base a contracting theory for a startup firm on an agency model with observable but nonverifiable effort, and renegotiable contracts. Two essential restrictions on simple contracts are imposed: the entrepreneur must be given limited liability, and the investor's earnings must not decrease in the realized profit of the firm. All message game contracts with pure strategy equilibria (and no third parties) are considered. Within this class of contracts/equilibria, and regardless of who has the renegotiating bargaining power, debt and convertible debt maximize the entrepreneur's incentives to exert effort. These contracts are optimal if the entrepreneur has the bargaining power in renegotiation. If the investor has the bargaining power, the same is true unless debt induces excessive effort. In the latter case, a nondebt simple contract achieves efficiency—the noncontractibility of effort does not lower welfare. Thus, when the noncontractibility of effort matters, our results mirror typical capital structure dynamics: an early use of debt claims, followed by a switch to equity‐like claims. (JEL: D820, L140, O261)     

Discrimination that Travels: How Ethnicity Affects Party Identification for Southeast Asian Immigrants*

Objectives. The critical importance of party identification as a determinant of vote choice is well documented. Given the increasing diversity of the population in the United States, it is critical that we understand the process of socialization into the political system for immigrant groups. It is especially important that we should be able to distinguish differences in socialization within a group. Methods. Using a framework developed by Cain, Kiewiet, and Uhlaner (1991) , we use newly available data to test their assertions about the development of party identification in Asian‐American immigrants. Results. Looking at a sample of foreign‐born Asian Americans, we find that critical differences can exist within groups. Conclusions. The differences within groups have an important effect on the development of party identification for those immigrants.     

Post-traumatic stress disorder and health-related quality of life in female victims of intimate partner violence

The association between post-traumatic stress disorder (PTSD) and health-related quality of life (QOL) in female victims of intimate partner violence (IPV) was examined. The Short-Form Health Survey (SF-36) was used to evaluate health-related QOL. IPV victims with PTSD (IPV/PTSD+; n = 18), IPV victims without PTSD (IPV/PTSD-; n = 22), and a non-abused control group (NA; n = 30) were compared. Multiple Analyses of Covariance (covarying for socioeconomic status and age) indicated that the three groups scored significantly differently on health-related QOL, and the IPV/PTSD- group was significantly more impaired than the NA group. IPV/PTSD+ subjects were significantly more impaired than IPV/PTSD- subjects on physical functioning, mental health, vitality, role limitations due to emotional health, and social functioning. Multiple regression analyses indicated that PTSD severity was a significant statistical predictor of SF-36 mental health composite scores (but not of physical health composite scores), after controlling for depressive symptomatology and extent of physical and psychological abuse.     

Insurance exposure and investment risks: Management and regulatory implications

By exposing itself to greater risks on invested funds the company can also increase its expected returns. Because there are risks involved with both the insurance and investment operations, a major problem for an insurance company is to determine just how the two types of risks are to be balanced. In an earlier paper the authors dealt with the relationships among growth in premiums written, insurance loss and investment return. In this paper the questions are revisited from a policyholder and regulatory point of view, and suggestions are made concerning the reaction of the firm under various postures the management may take towards risk.     

Responding to the 2015 CMS Proposed Rule Changes for LTC Facilities: A Call to Redouble Efforts to Prepare Students and Practitioners for Nursing Homes

In July of 2015, the Federal Register published for public comment proposed rule changes for nursing homes certified to receive Medicare and/or Medicaid. If the final rules are similar to the proposed rules, they will represent the largest change in federal rules governing nursing homes since the Nursing Home Reform Act which was part of OBRA 1987. The proposed changes have the potential to enhance the quality of care and quality of life of nursing home residents. Many of the proposed changes would directly affect the practice of social work and would likely expand the role for nursing home social workers. This article discusses the role that members of the National Nursing Home Social Work Network (NNHSW Network) played in developing and submitting a response to CMS. The article provides the context for the publication of the proposed rules, describes the process used by the NNHSW Network to develop and build support for comments on these rules, and also includes the actual comments submitted to CMS. Social work education programs and continuing education programs throughout the country will continue to have an important role to play in helping to prepare social work students and practitioners for a career in long-term care.     

Predation of artificial bird nests in suburban gardens of KwaZulu-Natal,South Africa

As urbanization increases, the identification of nest predators becomes important for avian conservation and management of urban wildlife communities. We investigated bird nest predation using artificial nests in urban areas of the KwaZulu-Natal (KZN) Province of South Africa. From June 2013 through February 2014 we installed seventy-five artificial nests in 25 suburban gardens in the Ethekwini and Msunduzi municipalities of KZN. Euplectes spp. nests were used and baited with two quail-sized, hand-made, silicon eggs. These were placed in residential gardens and monitored by camera traps for 2-weeks in winter, spring and summer respectively. Generally bird nesting occurs throughout the year in KZN’s subtropical climate, with some avoidance during the autumn season. Therefore, experiments were not conducted during autumn, as fresh nests were not available for use. Overall the rate of predation on artificial nests was 25 % (n = 19), with vervet monkeys Ceropithecus aethiops pygerythrus predating 20 % (n = 17) of the nests while domestic cats Felis catus predated 3 % (n = 2) of nests. Nest predation was significantly higher in the winter season, with 79 % of depredations occurring in winter (n = 15), 16 % in spring (n = 3) and 5 % in summer (n = 1), and in areas with less canopy cover. Our results suggest that vervet monkeys may have a negative impact on nesting birds in urban environments, however, in order to assess the rate of predation experiments on natural nests coupled with information on fledgling success is deemed necessary to investigate avian population declines.     

Hadeda Ibis (<Emphasis Type="Italic">Bostrychia hagedash</Emphasis>) urban nesting and roosting sites

Hadeda Ibis (Bostrychia hagedash) have increased in population size and expanded in range in South Africa possibly as a result of increased use of exotic trees for nesting and roosting in urban areas. We investigated the urban nesting and roosting sites of the Hadeda Ibis by measuring tree height and species used by Hadeda Ibis for nesting and roosting in Pietermaritzburg, KwaZulu-Natal, South Africa. We expected Hadeda Ibis nests and roosts to have habitats, like wetlands, to be within 10 km of the roost or nest tree. Hadeda Ibis nest and roost locations were mapped using ArcGIS and available resources (grasslands, wetlands, plantations, other natural water sources) 10 km around each roost and nest tree were determined. Results showed that Hadeda Ibis use exotic trees for nesting and roosting in urban areas more than indigenous trees. This may be because exotic trees are more available in urban environments, particularly those trees that have ornamental value. Hadeda Ibis did not nest and roost closer to expected resources. Although previously associated with wetlands, Hadeda Ibis in urban environments were not close to natural water sources. This can be explained by swimming pools providing accessible drinking water and well watered lawns providing suitable foraging habitat therefore allowing them to roost and nest in this urban habitat.     

The essence of being connected: the lived experience of mothers with young children in newer residential areas

Parenthood is a significant life transition and a time of increased social support need. In newer residential areas, a lag in social infrastructure and family relocation can influence potential isolation of families with young children. This qualitative study explored the lived experiences of being connected to local communities for mothers with children aged 0–5 years. Family insights were obtained through in-depth interviews with 12 mothers who were primary caregivers, homeowners and living in newer residential areas in outer suburban Perth, Western Australia. For mothers with young children, being connected to the local community appears to be shaped from their past and present lived experience as well as future aspirations. Connectedness evolves and may develop more slowly in newer communities where social relationships and networks are often recently formed. ‘Interaction’, ‘knowing what's going on’ and ‘help is nearby if you need it’ were identified as the essential themes of connectedness for mothers and families in this study. Belonging was identified as an incidental theme as not all mothers who felt connected felt like they belonged. The findings provide insight for professionals and agencies working with families with young children as well as planners of newer residential areas.     

Comparison of Adolescents' Reports of Sexual Behavior on a Survey and Sexual Health History Calendar

Assessing sexual risk is critical for human immunodeficiency virus (HIV) and sexually transmitted infection (STI) prevention with adolescents. This article compares sexual risk reports from two self-administered instruments, a standard survey and a sexual health history calendar (SHHC), among racially diverse youth (n = 232) ages 14 to 21 seeking services at a public health clinic. Agreement between methods was assessed using Lin's concordance correlation coefficients (CCC) and Bland-Altman plots. Lin's CCC showed poor to moderate agreement between instruments on reports of sexual partners in the past 3 (0.47), 6 (0.55), and 12 (0.49) months. While individual sexual partner questions were refused a total of 179 times on the survey, youth reported having sexual partners during the same time period on the SHHC in most (77.1%) of these instances. Poor agreement was also found for condom use frequency (CCC = 0.17), with youth's frequency of condom use on the SHHC differing from that reported on the survey for more than half (55.6%) of the months they were sexually active. While lack of objective sexual behavior measures limits conclusions about the accuracy of reports, the ways in which youth's responses varied across instruments may offer insight into the complexity of adolescent sexual risk taking as well as have important implications for development of HIV/STI preventive interventions.