Does Cultural Difference Affect Investment–Cash Flow Sensitivity? Evidence from OECD Countries

We investigate the influence of national culture on corporate investment–cash flow sensitivity. We conjecture that national culture shapes managerial perceptions of information asymmetry and agency problems, thus impacting the investment–cash flow relationship. We document empirical evidence in support of our claim. By linking the investment–cash flow sensitivity to cultural differences, our findings show that, while collectivism has an attenuating influence, uncertainty avoidance, power distance and masculinity have a reinforcing effect on the relationship between cash flow and investment. Our results hold for a sample of 205,268 firm‐years across 24 OECD countries between 1990 and 2017, and are robust after accounting for alternative statistical approaches, sample compositions and measures of cultural dimensions, along with controls for institutional and governmental factors. In addition, by decomposing cash flow into uses and sources of funds in a dynamic multi‐equation model, where firms make financing and investment decisions jointly subject to the constraint that sources must equal uses of cash, we find that national culture shapes how firms react to changes in cash flow.     

Social License to Operate in Crowdfunding Campaigns

Organizations and individuals need to engage their communities to gain the social license to operate (SLO). In crowdfunding, SLO is reflected in funding by the members of communities of interest around crowdfunding campaigns. Thus campaign creators’ success relies on obtaining SLO from their communities. This article examines how crowdfunding campaign creators engage their communities to gain and maintain SLO to secure funding for their campaigns. Content analysis of 68 successful and unsuccessful Kickstarter campaigns shows how successful campaign creators build their communities by the use of weak ties and have abundant relational and episodic engagement with their communities to obtain SLO. The results also show how successful campaign creators practice dialogic engagement to maintain their SLO over time. This study expands public relations to crowdfunding by framing crowdfunding as a community engagement practice and operationalizing SLO as tangible funding.     

Salvage therapy trial for erectile dysfunction using phosphodiesterase type 5 inhibitors and vitamin E: Preliminary report

We report our initial experience with salvage therapy for low responders to PDE-5 inhibitors by adding vitamin E. Of 89 patients with ED who visited our clinic between January 2004 to August 2006, 9 were unable to obtain a full response to a PDE-5 inhibitor and included in the present study. After providing informed consent, each was given 300 mg per day of α-tocophenol at least 1 month and completed IIEF-5 questionnaires to assess its efficacy while also taking a PDE-5 inhibitor. With α-tocophenol administration, the average IIEF-5 score increased from 13.8 ± 3.2 to 17.1 ± 3.6. Four of seven patients who completed the questionnaire each time showed improved IIEF-5 scores, with a maximum elevation of 9 points. Further, eight of the nine patients experienced favourable subjective changes, the majority being increased penile rigidity. The present clinical trial results are, to our knowledge, the first known to show the effects of vitamin E for enhancing the efficacy of a PDE-5 inhibitor.     

Pricing American put option on zero-coupon bond under fractional CIR model with transaction cost

The motivation of this study is to evaluate the American put option on zero-coupon bond, when the interest rate model is governed by a fractional CIR (FCIR) interest rate model. Since the existence of fractional Brownian motion, leading to create the arbitrage, we employ the transaction cost for eliminating the arbitrage. We first of all apply the Leland's hedging strategy for a self-financing portfolio that contains an American option and zero-coupon bond and derive a formula for the transaction cost. We perform the least-square Monte Carlo (LSM) method for pricing American option under the proposed interest rate model.