Use of Poset Theory with Big Datasets: A New Proposal Applied to the Analysis of Life Satisfaction in Italy

The aim of this work is to propose a tool for measuring a complex concept, and to apply it to big sets of data measured on ordinal and/or dichotomous scales. An important field of application are subjective data, that are often based on opinions or personal evaluations. Many national and international surveys employ this kind of data, measured among thousand of individuals. Thanks to the use of the “average rank” as a synthetic measure of a complex concept, we believe that poset theory could be a very useful approach for dealing with ordinal data avoiding the use of scaling procedures. Because classic poset approaches are at their best when applied to few data at a time, our idea is based on a procedure for sampling units from a big population using a simple criterion to summarize the resulting values appropriately. Applying the central limit theorem enables a comparison of the results obtained from different groups using statistical tests on the means. We used our Height of Groups by Sampling (HOGS) method to compare the average rank among groups that are defined by one or more socio-demographic variables influencing the level of the complex concept we wish to measure. The application of the HOGS procedure to life satisfaction in Italy generated convincing results, revealing significant differences between regions, genders and levels of formal education. We compared the results given by HOGS with the non linear principal component analysis and obtain an easy readable output with convincing precision and accuracy; we are confident that the HOGS procedure can be applied to many other concepts investigated in the social sciences.     

Strengthening Purity: Moral Purity as a Mediator of Direct and Extended Cross-Group Friendships on Sexual Prejudice

The present research investigated whether enhanced perceptions of moral purity drive the effects of intergroup cross-group friendships on the intentions to interact with homosexuals. High-school students (N = 639) reported their direct and extended cross-group friendships with homosexuals as well as their beliefs regarding the moral character of the sexual minority. Participants further reported their desire to interact with homosexuals in the future. Results showed that both face-to-face encounters and extended contact with homosexuals increased their perceived moral purity, which in turn fostered more positive behavioral intentions. Results further revealed the specific role of moral purity in this sense, as differential perceptions along other moral domains (autonomy and community) had no mediation effects on behavioral tendencies toward homosexuals. The importance of these findings for improving intergroup relations is discussed, together with the importance of integrating research on intergroup contact and morality.     

Social Capital and Self Perceived Health Among European Older Adults

There is increasing interest among researchers in the effects of social capital on the health of older adults. One of the key policy question for an ageing population concerns how do we identify the factors that influence health. Very recently, an increasing interest on social capital as a key determinant for health has developed and, surprisingly, not much is known for the European population. This paper analyzes the association between social capital and self-perceived health among older adults in Europe using a mixed effects logistic model. Social capital is considered in its two components—bonding and bridging—in order to understand if the relations inside or outside an individual inner circle have a different association with health. Our results give empirical support to the role of individual social capital in preventing a poor self-perceived health. This means that social capital, especially the bridging component of it, can be one of the key factors of ageing in good health and should be fostered by policy makers in order to give an answer to one of the most compelling challenge of our century: population ageing.     

Living Near to Attractive Nature? A Well-Being Indicator for Ranking Dutch,Danish, and German Functional Urban Areas

While nature is widely acknowledged to contribute to people’s well-being, nature based well-being indicators at city-level appear to be underprovided. This study aims at filling this gap by introducing a novel indicator based on the proximity of city-residents to nature that is of high-amenity. High-amenity nature is operationalized by combining unique systematic data on people’s perceptions of what are the locations of attractive natural areas with data on natural land cover. The proposed indicator departs from the usual assumption of equal well-being from any nature, as it approximates the ‘actual’ subjective quality of nature near people’s homes in a spatially explicit way. Such indicator is used to rank 148 ‘cities’ in the Netherlands, Denmark, and Germany. International comparability of the indicator is enhanced by the use of a definition of cities as functional urban areas (FUAs), which are consistently identified across countries. Results demonstrate that the average ‘nearness’ of FUA populations to high amenity nature varies widely across the observed FUAs. A key finding, that complements insights from existing city-level indicators, is that while populations of FUAs with higher population densities may live relatively far from nature in general, they also live, on average, closer to high-amenity nature than inhabitants of lower density FUAs. Our results may stimulate policy-debates on how to combine urban agglomeration with access to natural amenities in order to account for people’s wellbeing.     

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.     

The role of the board in shaping foundations’ strategy: an empirical study

This paper investigates the relationships of the choice of philanthropic strategy with board capital (diversity and networks), board activities (board processes, internal board committees, and board effectiveness), and CEO leadership. Using a sample of 110 Italian foundations, the research shows that board processes have the strongest positive association with an evolved strategic approach to philanthropic institutional grant-giving, while board diversity and strong CEO leadership are associated with the strategic approach only under certain conditions. In particular, good governance processes (e.g., training the board, self-evaluation of trustees, setting the stage for effective board and committee meetings, implementing control software, and steering meetings to improve the board’s analysis) are positively associated with evolved strategic approaches to philanthropy (e.g., signaling other funders for the best grantees, improving the performance of grant recipients, and advancing selected social fields’ state of knowledge and practice).     

Do auditors’ perceptions actually help fight against fraudulent practices? Evidence from Tunisia

The purpose of this paper is focused on investigating empirically how Tunisian Auditors perceive their status regarding fraud fighting issue. In this respect, a set of auditor-associated mental representations will be expressed in terms of their respective roles as relevant governance models (legal versus ethical ones), via the cognitive mapping technique. The findings reveal that corporate governance can be globally depicted within these particular representations, indicating the supremacy of the legal governance approach over the ethical one with regard to the Tunisian case. .     

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.     

Minority and majority private equity investments: firm performance and governance

This paper adds to the literature on the determinants of the effects of private equity (PE) investments. Using an original dataset of 191 target firms in Italy, we study the effects on performance and governance of the stakes acquired by the PE investor. We employ a difference-in-differences approach and compare target and control firms sharing similar characteristics and performance in the years preceding the deal. We find that PE investment has a positive effect on profitability, sales, and employment; these effects are larger for minority investments. We argue that this signals effective governance that follows from complementing rather than substituting incumbent managers in minority investments.     

Dual class shares,board of directors’ effectiveness and firm’s market value: an empirical study

This study aims to identify whether a relationship exists between the controlling shareholders’ voting power and outside directors’ effectiveness in maximizing firms’ financial performance. We analyze a panel data with 3057 observations for the 2000–2012 period using a random effects model, logit and probit regressions, and the two-stage model of Heckman in the Brazilian stock market. Our findings show that firms whose controlling shareholders use dual class shares to leverage their voting power have less independence from the board and worse financial performance and market value. Further, the percentage of outside directors tends to be ineffective in increasing the firm’s value, and in changing the firm’s chief executive officer (CEO) when (1) the controlling shareholder’s voting power is leveraged, or (2) when the CEO assumes a position on the board of directors simultaneously. We interpreted that these results are in line with the arguments in favor of the existence of a new agency cost, which is related to the undue obedience of board members to authority, such as the largest controlling shareholder or the CEO in Brazilian listed firms.