Managing Uncertainty through Profit Sharing Contracts from Medieval Italy to Silicon Valley

Organizational innovation is essential to economic development. But, the way successful societies have organized new ventures has been remarkably similar in both past and present. The commenda organizations of medieval Italy shared many characteristics with modern startups that are financed by venture capital. Profit share contracts; limited liability and periodic reevaluations are cases in point. Agency contracts in both types of ventures are designed to absorb the high uncertainty inherent to these enterprises through risk sharing. Uncertainty prohibits a unique ex ante ranking order of investment projects and prompts investors to look for hidden human capital. Equity finance is better equipped to even out unexpected losses and gains that are inherent to uncertainty than debt finance.     

The social experience of physically disabled Australian university students

Research on the university experience of disabled students has focused on barriers in learning and teaching, while the social world of university has as yet gained little attention as a distinctive object of study. Here we examine social experience and socially imposed restrictions through the lenses of social capital and self-concept. A qualitative study investigated the formation of social capital and changes in self-concept amongst physically disabled Australian university students. Data were collected through semi-structured interviews and analysed using a grounded theory approach. The study found weak social attachments at university, but stronger attachments outside. Self-concept did not appear to be structured in any direct way by university-generated social capital, partly as a consequence of its weakness.     

Stock investors’ preference for short-term vs. long-term bonuses

Bonuses in the finance sector may be based on too short time intervals for environmental and social factors to be taken into account in investment decisions. We report two experiments to investigate whether investors prefer short-term to long-term bonuses. In Experiment 1 employing 27 undergraduates, preferences were measured for four short-term certain bonuses, evenly distributed across a time interval, and one certain long-term bonus at the end of the time interval. A majority chose the short-term bonuses, and in order for the long-term bonus to be equally preferred it had to be about 40% higher than the four added short-term bonuses. Experiment 2 employing another 36 undergraduates introduced outcome uncertainty that more accurately reflects the choices stock investors face. The participants again choose between a long-term bonus and four distributed short-term bonuses. It was shown that uncertainty made more participants prefer the long-term bonus to the added short-term bonuses than when the outcome was certain. A smaller increase of the long-term bonus of about 20% was now required to make it equally attractive as the four added short-term bonuses.     

Testing the validity of social capital measures in the study of information and communication technologies

Social capital has been considered a cause and consequence of various uses of new information and communication technologies (ICTs). However, there is a growing divergence between how social capital is commonly measured in the study of ICTs and how it is measured in other fields. This departure raises questions about the validity of some of the most widely cited studies of social capital and ICTs. We compare the Internet Social Capital Scales (ISCS) developed by Williams [2006. On and off the ’net: scales for social capital in an online era. Journal of Computer-Mediated Communication, 11(2), 593–628. doi: 10.1111/j.1083-6101.2006.00029.x] – a series of psychometric scales commonly used to measure ‘social capital’ – to established, structural measures of social capital: name, position, and resource generators. Based on a survey of 880 undergraduate students (the population to which the ISCS has been most frequently administered), we find that, unlike structural measures, the ISCS does not distinguish between the distinct constructs of bonding and bridging social capital. The ISCS does not have convergent validity with structural measures of bonding or bridging social capital; it does not measure the same concept as structural measures. The ISCS conflates social capital with the related constructs of social support and attachment. The ISCS does not measure perceived or actual social capital. These findings raise concerns about the interpretations of existing studies of ‘social capital’ and ICTs that are based on the ISCS. Given the absence of measurement validity, we urge those studying social capital to abandon the ISCS in favor of alternative approaches.     

The Slaughtered and the Survivors: Collaboration Between Social Economy Organizations as a Key to Success in Times of Financial Crisis

The objective of this study is to analyze the aspects that allowed a critical part of Social Economy Organizations (SEOs) to survive a recession period, especially participation in collaborative networks. The financial stress of an SEO will depend on the resources and capabilities available to the organization. To analyze the financial stress of Spanish SEOs, we defined a sample of 714 SEOs. Approximately half of these organizations suffered from financial stress in the analyzed period (2009–2012). The results obtained in this study reveal the existence of three factors that distinguish organizations under financial stress: (a) a high dependence on government funding; (b) changes in the relationship between staff and volunteers; and (c) a lack of access to markets. The combination of these three elements results in an unsustainable situation for the organization. The development of a collaborative profile increases the SEO’s probability of surviving the adverse manifestations of its environment.     

A Stochastic Model to Assess the Effect of Meat Inspection Practices on the Contamination of the Pig Carcasses

The objective of meat inspection is to promote animal and public health by preventing, detecting, and controlling hazards originating from animals. With the improvements of sanitary level in pig herds, the hazards profile has shifted and the inspection procedures no longer target major foodborne pathogens (i.e., not risk based). Additionally, carcass manipulations performed when searching for macroscopic lesions can lead to cross‐contamination. We therefore developed a stochastic model to quantitatively describe cross‐contamination when consecutive carcasses are submitted to classic inspection procedures. The microbial hazard used to illustrate the model was Salmonella, the data set was obtained from Brazilian slaughterhouses, and some simplifying assumptions were made. The model predicted that due to cross‐contamination during inspection, the prevalence of contaminated carcass surfaces increased from 1.2% to 95.7%, whereas the mean contamination on contaminated surfaces decreased from 1 logCFU/cm² to ?0.87 logCFU/cm², and the standard deviations decreased from 0.65 to 0.19. These results are explained by the fact that, due to carcass manipulations with hands, knives, and hooks, including the cutting of contaminated lymph nodes, Salmonella is transferred to previously uncontaminated carcasses, but in small quantities. These small quantities can easily go undetected during sampling. Sensitivity analyses gave insight into the model performance and showed that the touching and cutting of lymph nodes during inspection can be an important source of carcass contamination. The model can serve as a tool to support discussions on the modernization of pig carcass inspection.     

Odd-Burr generalized family of distributions with some applications

We study a new family of continuous distributions with two extra shape parameters called the Burr generalized family of distributions. We investigate the shapes of the density and hazard rate function. We derive explicit expressions for some of its mathematical quantities. The estimation of the model parameters is performed by maximum likelihood. We prove the flexibility of the new family by means of applications to two real data sets. Furthermore, we propose a new extended regression model based on the logarithm of the Burr generalized distribution. This model can be very useful to the analysis of real data and provide more realistic fits than other special regression models.     

Utilization of Mixed Distributions in the Calculation of Polarization: The Case of Spain

Social Indicators Research - This study analyzes the evolution of salary polarization in the Spanish labor market. The paper proposes the use of mixed distributions to examine the consequences of...