Assessing corporate governance quality: substance over form

After the 2008 global financial crisis and corporate scandals, assessing and improving corporate governance quality (CGQ) is essential. This paper proposes a different approach to evaluate CGQ, to overcome the conceptual and methodological limits of the previous rating systems. It tries to go beyond the objectives of the existing models by suggesting an alternative operating model, (aligned with the new CG guidelines) that provides a concise index for monitoring and decision-making. Using a Fuzzy Expert System (FES), the authors propose a formalized model that: (1) represents all the factors (structural and behavioral) that affect the quality of corporate governance in terms of practical and objective decision-making procedure; (2) is a flexible and useful management tool for supporting the “Board review” and assessing the increase in CGQ associated with particular decisions; (3) supervisors can use to assess CG adequacy by replacing or integrating the experts’ opinions with interviews/questionnaires filled in by directors and managers or through direct observation, as recently suggested by EBA/ESMA. This paper highlights the importance of behavioral features and group dynamics in corporate governance and represents them in an integrated model together with other structural and organizational elements.     

The impact of corporate social performance on the cost of debt and access to debt financing for listed European non-financial firms

This study addresses the controversial issue of how non-financial performance affects the cost of debt capital and access to it. The relationship between corporate social performance and two measures of debt cost (accounting-based and market-based) and the measure of debt access are analysed by means of a multi-theoretical framework combining economics with social theories. By observing a sample of listed European non-financial firms over an 8-year period from 2005 to 2012, we find a negative relationship between corporate social performance and interest rate. Consistent with this result, we find a positive relationship between corporate social performance and debt rating. Thus, corporate social performance has a positive role in reducing the cost of debt capital. Moreover, firms with better corporate social performance are more attractive to lenders in terms of leverage allowance. Overall, our findings provide deeper insight into the reasons why companies should improve their corporate social performance.     

LEGAL STANDARDS,ENFORCEMENT, AND CORRUPTION

Stricter laws require more incisive and costlier enforcement. Because enforcement activity depends both on available tax revenue and the honesty of officials, the optimal legal standard of a benevolent government is increasing in per capita income and decreasing in officials' corruption. In contrast to the “tollbooth view” of regulation, the standard chosen by a self‐interested government is a non‐monotonic function of officials' corruption, and can be either lower or higher than that chosen by a benevolent regulator. International evidence on environmental regulation shows that standards correlate positively with per‐capita income, and negatively with corruption, consistent with the model's predictions for benevolent governments. (JEL: D73, K42, L51)     

Firms,Destinations, and Aggregate Fluctuations

This paper uses a data base covering the universe of French firms for the period 1990–2007 to provide a forensic account of the role of individual firms in generating aggregate fluctuations. We set up a simple multisector model of heterogeneous firms selling to multiple markets to motivate a theoretically founded decomposition of firms' annual sales growth rate into different components. We find that the firm‐specific component contributes substantially to aggregate sales volatility, mattering about as much as the components capturing shocks that are common across firms within a sector or country. We then decompose the firm‐specific component to provide evidence on two mechanisms that generate aggregate fluctuations from microeconomic shocks highlighted in the recent literature: (i) when the firm size distribution is fat‐tailed, idiosyncratic shocks to large firms directly contribute to aggregate fluctuations, and (ii) aggregate fluctuations can arise from idiosyncratic shocks due to input–output linkages across the economy. Firm linkages are approximately three times as important as the direct effect of firm shocks in driving aggregate fluctuations.     

Lower urinary tract symptoms/benign prostatic hyperplasia and erectile dysfunction: from physiology to clinical aspects

Abstract

Erectile dysfunction, prostatic hyperplasia and lower urinary tract symptoms hare important pathogenetic links. Endothelial dysfunction and hormonal alterations represent the main aspects. The present article examines the anatomical, physiological, and pathophysiological characteristics of this association, finalizing the text to an interpretation of the clinical management of these patients based on these functional considerations.     

Treatment of lower urinary tract symptoms/benign prostatic hyperplasia and erectile dysfunction

Abstract

This article summarizes years of challenging research on erectile dysfunction (ED), a condition that has an important social and cultural relevance. Preclinical and clinical research progress has led to new therapeutic approaches to ED in patients with different comorbidities and particularly in those with low urinary tract symptoms (LUTS)/benign prostatic hyperplasia (BPH). These goals were possible only by combined work of specialists and researchers of different and intertwined medical disciplines. Currently, tadalafil (5?mg/d) is the best choice; other phosphodiesterase-5 inhibitors (PDE5i) are not included among options, despite the growing evidence of therapeutic effects. Different regimens of tadalafil may be prescribed based on patient needs, severity of LUTS/BPH – ED profile, and clinical experience. An integrated approach is necessary to choose for a combined therapy with PDE5i and α-blockers following urological and cardiac counseling in terms of outcomes and adverse effects.     

A Mediational Model Explaining the Connection Between Religiosity and Anti-Homosexual Attitudes in Italy: The Effects of Male Role Endorsement and Homosexual Stereotyping

This study aimed to better understand the relationship between religiosity and anti-homosexual attitudes in Italy by examining the mediation effects of male role endorsement and homosexual stereotyping. A sample of 5,522 Italian residents (age range = 18–74) was drawn from a cross-sectional national representative survey carried out in 2011. Measures included general religiosity, male role endorsement, homosexual stereotyping, social acceptance of homosexuality, and homosexual rights endorsement. Structural equation modeling was used to test the mediational effects of male role endorsement and homosexual stereotyping on the relationship between general religiosity and attitudes toward lesbians and gay men. Results showed that both male role endorsement and homosexual stereotyping partially mediated the relationship. In a model where religiosity and both mediators positively explained anti-homosexual attitudes, male role endorsement was the strongest mediator. Endorsement of gender role beliefs and homosexual stereotyping may thus exacerbate the connection between religiosity and anti-homosexual attitudes among Italians.     

Regional foods and rural development: The role of product qualification

Qualification schemes have become popular tools for supporting regional foods, yet little is understood about the impacts they have on the rural development contribution of such foods. Qualification processes may stimulate new networks and community actions, but they may also be incompatible with strategies of extended territorial development because of their foundation in theories of competitive advantage. To explore these issues, the evolution is traced of three cases of regional food production, where local actors pursue the opportunity to qualify products under EEC Regulation 2081/92. The results reveal, in practice, the different experiences that can evolve under the same qualification mechanism, and also how the consequences for rural development can vary. The paper concludes with analysis of factors influencing the involvement and behaviour of actors in regional food qualification, and what these infer for the rural development approach pursued.     

CONGESTION MODELS AND WEIGHTED BAYESIAN POTENTIAL GAMES

Games associated with congestion situations à la Rosenthal (1973) have pure Nash equilibria. This result implicitly relies on the existence of a potential function. In this paper we provide a characterization of potential games in terms of coordination games and dummy games. Second, we extend Rosenthal's congestion model to an incomplete information setting, and show that the related Bayesian games are potential games and therefore have pure Bayesian equilibria.