Is a loosely specified regulatory intervention effective in disciplining management commentary? The case of performance indicator disclosure

This paper offers a contribution to the call for research on the effectiveness of regulatory interventions governing management commentary disclosure. Specifically, we focus on the mandatory requirement concerning performance indicator disclosure introduced by the Modernisation Directive (2003/51/EC). In keeping with other regulators, the European legislator opted to implement a regulatory approach based on a rule with loose specifications. To understand the effects of this Directive, we have investigated the Italian context, in which neither the national legislator nor the standard setter have supported companies with detailed specifications or guidelines aimed at integrating the European provision. We have compared companies’ disclosure practices before and after the adoption of the Directive, investigating the number of disclosed indicators and also their modalities of presentation, as they are considered essential to guaranteeing the quality of this disclosure. Our results document that a mandatory intervention, even if based on loose specifications, is associated with an increase in disclosure practices. Nevertheless, such regulation does not seem able to guarantee high quality disclosure practices. In fact, before and after the regulation, companies primarily disclose common financial measures. Moreover, the usefulness of such disclosure is undermined by a limited compliance with the international guidelines concerning the modalities of presentation. These results reveal some weaknesses in the European approach to performance indicator regulation. In general, the EU legislator fails to explain the purpose and the objective of performance indicator disclosure and does not take into account the differences between financial and non-financial indicators. Furthermore, it does not provide firms with clear guidelines concerning the presentation modalities.     

Information security governance: pending legal responsibilities of non-executive boards

The study shows that a structural conflict of interest in non-executive boards exists due to missing corporate governance structures and a lack of awareness for legal issues with regard to information security risks. Non-executive boards receive information on strategic security threats as a part of their oversight function to fulfill investor interest in transparency. At the same time, they act as representatives of company stakeholders and have an interest to counteract to information security risks based on the stakeholder’s risk disposition. If not properly structured by corporate governance rules, these different interests may lead to regulatory aberrations on non-executive board level. The study analyses a Deutsche Telekom AG case where non-executive board members, employees, and journalists fell victim to a spying scandal subject to the German telecommunications secrecy law in 2005–2006. The analysis demonstrates how the handling of information security on non-executive board level bears governance risks as well as legal risks that are insufficiently addressed in corporate governance research. The paper contributes to avoid a reproduction of events in the future, by suggesting the principle of a segregation of duties on non-executive boards as well as providing an overview of relevant legislative requirements that clarify tasks of non-executive board members with regard to information security. The study therefore helps protecting corporations and their stakeholders from similar consequences of missing corporate security governance.     

TEACHING SUPPLY CHAIN MANAGEMENT THROUGH GLOBAL PROJECTS WITH GLOBAL PROJECT TEAMS

In this article, we describe the Global Project Coordination Course, a course in which project teams composed of three students from each of two overseas universities execute company‐sponsored projects dealing with global supply chain management issues. The $75,000 to $100,00 contributed in total by the three to four sponsoring companies funds all course expenses. We assess the benefits and challenges of the use of cross‐cultural project teams with diverse educational backgrounds. We conclude that the course provides a unique and effective vehicle for furthering students' knowledge of Supply Chain Management and Information Systems, improving understanding of “soft” issues, and training students to work in diverse, global, cross‐cultural project teams.     

Private Ownership versus Institutional Ownership: Exclusion Pricing of Initial Public Offerings

The authors examine the literature with respect to the pricing of initial public offerings and focus upon the relationship of pricing to the structure and conduct of the investment banking industry. Using a data base of all share offerings undertaken in the United States over a two and a half year period, the authors find that there is considerable evidence for the proposition that large, prestigious, and well capitalised investment banks tend to price their share offerings at a higher absolute level than those not meeting such characteristics. Using classical statistical methods, the authors find that the pricing strategy of investment banks is connected to their affiliation with investment funds and unit trusts. The motives for such pricing strategies, the authors argue, lie with the affiliation of investment banks with investment funds, suggesting that the pricing of new share offerings may be a means of excluding retail investors from participating in the strong returns such issues exhibit. The authors raise legal and regulatory implications of their findings in the context of the general consolidation observed within the investment banking industry. This revised version was published online in July 2006 with corrections to the Cover Date.     

Economic Impact of Accelerated Cleanup on Regions Surrounding the U.S. DOE's Major Nuclear Weapons Sites

The regional economic impacts of the U.S. Department of Energy's accelerated environmental cleanup plan are estimated for the major nuclear weapons sites in Colorado, Idaho, New Mexico, South Carolina, Tennessee, and Washington. The analysis shows that the impact falls heavily on the three relatively rural regions around the Savannah River (SC), Hanford (WA), and Idaho National Engineering and Environmental Laboratory (ID) sites. A less aggressive phase-down of environmental management funds and separate funds to invest in education and infrastructure in the regions helps buffer the impacts on jobs, personal income, and gross regional product. Policy options open to the federal and state and local governments are discussed.     

Vulnerable young people and substance misuse: expanding on the risk and protection‐focused approach using social psychology

This paper critically reviews recent research exploring risk and protective factors for the development of problematic substance use in populations of young people. Specific populations of young people who are most vulnerable to developing problematic patterns of use are identified, and alterations to methods of data collection which would improve the ability of local authorities to monitor these populations and more efficiently target them for early preventative interventions are highlighted. It is argued that social‐psychological research techniques and approaches should be used to complement a risk and protection‐focused approach in order to improve the design and evaluation of interventions, and provide decision‐aids for practitioners when assessing the needs of vulnerable young people. Examples are provided to demonstrate the utility of social psychology in this regard, and the paper concludes with specific recommendations for future research and services. Copyright © 2009 John Wiley & Sons, Ltd.     

LEGISLATING LOVE: The Effect of Child Support and Welfare Policies on Father–child Contact

Reducing non-marital childbearing and making nonresidential fathers take greater responsibility for their children were identified as goals of numerous policy changes since the 1980s. Child-support award rates for children born to unmarried parents have been quite low historically, leading lawmakers to focus on increasing both award and payment rates for this group. Nonmarital fathers are also much less likely to have contact with their children. Although evidence suggests that policy efforts increase child support awards and receipt, the link between child support policies, child support outcomes, and father-child contact has received less attention. This paper uses data from the Survey of Income and Program Participation on children born between 1985–1997 to investigate the relationship between child-support award and receipt and the amount of contact that fathers have with their non-residential children. Since it is likely that both of these behaviors are, in part, determined by unobservable characteristics of the father, we estimate an instrumental variables Tobit model. The model is identified by our assumption that child support policy variables can impact child support awards and payments, but father-child contact cannot be directly legislated. Our results suggest that there are unintended, but desirable effects of child support establishment and collection. Policies to collect child support not only increase financial resources to families, but through their impact on payments increase visitation and contact between these children and their fathers. The estimated impact of receiving child support on contact is more than 27 days per year.An earlier version of this paper was presented at the Annual Meetings of the American Economic Association, Washington DC, January 2003 and the Annual Meetings of the Association of Public Policy and Management, November 2003. Support from NICHD Grant # HD30944 is gratefully acknowledged. We would like to thank Suzann Eshleman for excellent computer programming and James Scully for providing us with data on genetic testing laws.     

Characteristics of female perpetrators and victims of dating violence

Although many researchers have explored the topic of dating violence, limited attention has been paid to female perpetrators. Very little research has examined variables that facilitate aggression for females in dating relationships. In an effort to investigate distinct types of violent behavior, the present study separated females who experience dating violence into three categories (bi-directional aggression, perpetrator-only, and victim-only) and compared them with a control group not previously exposed to interpersonal violence. The purpose of this study was to examine variables that discriminate violent females from non-violent females. Variables that were hypothesized to be associated with aggressive behavior and investigated in the current study were interparental aggression, self-esteem, love attitudes, and alcohol use. Three hundred female college students responded to multiple self-report questionnaires examining psychological correlates of dating violence. Females in the bi-directional aggression group were more likely to have witnessed their father abuse their mother and scored significantly lower on a measure of self-esteem than non-violent controls. Females in the control group demonstrated higher scores on a measure of mature and selfless love style than did the victim or perpetrator-only participants. There were no significant group differences regarding general alcohol consumption. Implications for prevention and intervention are presented and discussed.     

Statistical modeling for Bayesian extrapolation of adult clinical trial information in pediatric drug evaluation

Children represent a large underserved population of “therapeutic orphans,” as an estimated 80% of children are treated off‐label. However, pediatric drug development often faces substantial challenges, including economic, logistical, technical, and ethical barriers, among others. Among many efforts trying to remove these barriers, increased recent attention has been paid to extrapolation; that is, the leveraging of available data from adults or older age groups to draw conclusions for the pediatric population. The Bayesian statistical paradigm is natural in this setting, as it permits the combining (or “borrowing”) of information across disparate sources, such as the adult and pediatric data. In this paper, authored by the pediatric subteam of the Drug Information Association Bayesian Scientific Working Group and Adaptive Design Working Group, we develop, illustrate, and provide suggestions on Bayesian statistical methods that could be used to design improved pediatric development programs that use all available information in the most efficient manner. A variety of relevant Bayesian approaches are described, several of which are illustrated through 2 case studies: extrapolating adult efficacy data to expand the labeling for Remicade to include pediatric ulcerative colitis and extrapolating adult exposure‐response information for antiepileptic drugs to pediatrics.