Financial Ownership,Diversification and Firm Profitability in Japan

The Japanese system of corporate governance andin particular the role played by banks andother financial institutions have been thesubject of considerable research andcontroversy in recent years. We estimate theimpact of equity ownership by financialinstitutions on firm performance in Japan for1986–1991, a period that precedes many of theproblems of the ensuing decade. We find thatwhile ownership by financial institutions isassociated with unprofitable diversification,such ownership is, on balance, positivelyassociated with firm profitability. Someimplications of these findings for Japan'sunique system of governance are discussed.     

Procedural Control of the Bureaucracy, Peer Review, and Epistemic Drift

Regulatory peer review—in which independent scientistscomment on the technical underpinnings of proposed regulations—isa recently pursued form of political control of the bureaucracy.This article situates regulatory peer review in the contextof both the history of technical advice to government and theprincipal-agent perspective often used to explain the presenceof administrative procedures. Much of the academic discussionof attempts to influence bureaucratic decision making has utilizedprincipal-agent theory. We introduce two novel concepts to accommodateregulatory peer review into the principal-agent framework. Thefirst is "technocracy" where the preferences of technical expertsdisplace public preferences. The second is "epistemic drift,"a change in embodied knowledge that contributes to departuresfrom the policy intentions of an enacting coalition of policymakers. In addition to introducing these concepts, we arguethat regulatory peer review is more complex than other administrativeprocedures and that its efficacy critically depends on the detailsof its implementation. We hypothesize that regulatory peer reviewwill cause nongovernmental participants in regulatory conflictsto devote more effort to creating research and other epistemicresources. But we also hypothesize that, just as courts havebecome more politicized with their role in regulatory policy,peer review and regulatory science will become increasinglypoliticized as well.     

Adolescent Life Stress and the Cortisol Awakening Response: The Moderating Roles of Attachment and Sex

This longitudinal study investigated how past versus current life stresses relate to adolescents' cortisol awakening response (CAR), an index of hypothalamic–pituitary–adrenal activity. Ninety‐nine adolescents reported previous year life stress at ages 12 and 18. At the second assessment, participants also provided self‐reports of parent and peer attachment and 3 days of cortisol samples. Current stress was associated with heightened CAR for both males and females, whereas past stress was associated with attenuated CAR for males. Attachment to peers buffered the relationship between past stress and attenuated CAR for all adolescents; attachment to parents was a buffer for male adolescents only. Results demonstrate the protective roles of adolescent relationships and highlight sex differences in biopsychosocial development across adolescence.     

DOWNSIZING AND JOB INSECURITY

This article offers an explanation of why firms' downsizing patterns may vary substantially in magnitude and timing, taking the form of one‐time massive cuts, waves of layoffs, or zero layoff policies. The key element of this theory is that workers' expectations about their job security affect their on‐the‐job performance. In a situation where firms face adverse shocks, the productivity effect of job insecurity forces firms to balance laying off redundant workers and maintaining survivors' commitment. The cost of ensuring commitment differs between firms with different characteristics and determines whether workers are laid off all at once or in stages. However, if firms have private information about their future profits, they may not lay off any workers in order to signal a bright future, boosting worker's confidence. (JEL: J21, J23, D21, D82)     

Transparency in Structural Research

Abstract

We propose a formal definition of transparency in empirical research and apply it to structural estimation in economics. We discuss how some existing practices can be understood as attempts to improve transparency, and we suggest ways to improve current practice, emphasizing approaches that impose a minimal computational burden on the researcher. We illustrate with examples.     

Pricing risk in prostitution: Evidence from online sex ads

Journal of Risk and Uncertainty - The movement of many human interactions to the internet has led to massive volumes of text that contain high-value information about individual choices pertaining...     

Cognitive Neuroscience, Neurobiology and Affect Regulation: Implications for Clinical Social Work

The purpose of this article is to review and consider the ways in which recent advances in cognitive neuroscience and neurobiology inform a biopsychosocial perspective for understanding and intervening with at-risk families. Specifically, our focus is on the ways in which such work contributes to our understanding of affect regulation as an important determinant and consequence of early interactive experience. In turn, this knowledge can be employed both in primary prevention and in later intervention with families whose well being has been compromised by affect dysregulation.