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1 – 10 of 971Pier Paolo Miglietta, Donatella Porrini, Giulio Fusco and Fabian Capitanio
The term “charity hazard” refers to the issue of the crowding out of insurance by co-existing relief programs in the context of different institutional governmental disaster…
Abstract
Purpose
The term “charity hazard” refers to the issue of the crowding out of insurance by co-existing relief programs in the context of different institutional governmental disaster schemes. In this context, the aim of this paper is to verify if the charity hazard phenomenon exists in the Italian agricultural insurance scheme.
Design/methodology/approach
Annual data regarding crop insurance, subsidies and farm structure were extracted from ISMEA, ISTAT and FADN databases. A SYS-GMM dynamic panel model was estimated, considering the 2010–2017 time period and the Italian Regions as units of the analysis.
Findings
The empirical results highlight a negative relation between crop subsidies and the farmers' policies and total premium paid. The disincentive and crowd-out effects of public aid and subsidies on the choice of whether or not to take out an agricultural insurance policy ends up being one of the key factors for the low level of penetration of the agricultural insurance in Italy.
Practical implications
Since the diffusion of agricultural insurance can contribute to the general objective of sustainability and resilience, the implementation of alternative solutions to subsidies could be needed (e.g. the introduction of mandatory insurance against adversities or financial support for a geographically specific insurance tool).
Originality/value
Investigating empirically the determinants of the agricultural insurance policy diffusion among the Italian Regions, this study ensures an original contribution to the scientific progress in the field, demonstrating the existence of charity hazard caused by the public subsidies provision.
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Clarence W. Von Bergen, Martin S. Bressler and Tim Boatmun
Recently, organizational scholars and social scientists began emphasizing the importance of compassion and altruism and called for increased demonstrations of assistance, giving…
Abstract
Purpose
Recently, organizational scholars and social scientists began emphasizing the importance of compassion and altruism and called for increased demonstrations of assistance, giving, empathy and other prosocial conduct toward those in need. Generally, we assume that help is beneficial to those who receive it, and current research on these positive behaviors primarily focuses on the advantages to those who provide it. Despite recent calls for increased levels of aiding the needy and underprivileged, helping may have downsides and adaptive costs to those who receive support that are frequently overlooked. The purpose of the study is to bring to light the potential harm in helping those who lack commitment to improvement, having “skin in the game”.
Design/methodology/approach
In addition to a literature review, the authors present a model to explain how support in response to human pain and suffering can sometimes result in negative effects on aid recipients. The model specifies two mechanisms, including participation of affected beneficiaries of assistance in the actual aid process and duration of help as factors that may expose vulnerable populations to more risk.
Findings
The literature strongly suggests that in some instances, helping can be detrimental, to the point where helping can even result in dependency. The authors do not suggest casting a blind eye to those in need, but rather to provide assistance that leads to self-sufficiency.
Research limitations/implications
Additional research – especially over the long-term – can provide researchers with more detailed results of this approach.
Practical implications
The findings of this paper can serve as a model approach to provide help that does not create dependency.
Social implications
Using this approach could provide the ideal method to address long-term social issues that would break the cycle of dependency.
Originality/value
The authors believe that this approach to helping based upon the two-stage model could become the primary effective method for providing assistance to those in need without creating dependency in the long run.
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Abstract
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Chun-Min Zhang and Zhen-Wei Qian
The purpose of this paper is to investigate the relationship between potential affecting factors and the local communities’ willingness to pay (WTP) for housing earthquake…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between potential affecting factors and the local communities’ willingness to pay (WTP) for housing earthquake insurance (HEI) in the context of ethnic minority communities.
Design/methodology/approach
A literature review was done to identify possible factors affecting WTP for HEI. Fieldwork was conducted in 2017 in Dali Minority Autonomous Prefecture, where the first Chinese HEI was launched in 2015. Interviews were done in two earthquake-prone counties, as the main ethnic minority communities in the area. A total of 536 questionnaires were collected and used as empirical data for testing the impacts mechanism.
Findings
Respondents’ risk perception, risk exposure, self-prevention behaviors, government aid, insurance experience and sociodemographic characteristics were hypothesized as theoretical indicators correlated to WTP for HEI. Empirical analysis results predict that WTP for HEI is significantly influenced by risk perception, insurance experience, government aid, and age and out-migrating labors. It is evident that higher risk perception and more insurance experience lead to stronger desire for HEI coverage. However, dependency on government aid negatively affects WTP for HEI. Moreover, WTP for HEI is negative in relation to age and out-migrating labors. Surprisingly, ethnic-culture factors were not statistically significant to WTP for HEI.
Originality/value
This paper is an attempt to identify and verify factors affecting WTP for HEI, bridging the gap of inadequate research on WTP for HEI in ethnic minority communities.
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Cristian Camilo Fernández Lopera, José Manuel Mendes, Eduardo Jorge Barata and Miguel Angel Trejo-Rangel
At the global level, disaster risk finance (DRF) is playing an increasingly prominent role in the international agendas for climate change adaptation. However, before implementing…
Abstract
Purpose
At the global level, disaster risk finance (DRF) is playing an increasingly prominent role in the international agendas for climate change adaptation. However, before implementing such agendas, it is essential to understand the needs and limitations of DRF in the subnational context where they need to impact. This research aims to gain insights into the perspectives of community and governmental actors in Colombia regarding DRF. Its goal is to promote the specific design of collaborative educational and technical assistance processes that consider their interests in the subject and the cultural diversity of the territories.
Design/methodology/approach
To achieve this, semi-structured interviews were conducted, and the findings were organized to highlight key aspects that help to understand DRF perspectives in the Colombian context.
Findings
It was found that the most significant limitations of implementing DRF include a lack of knowledge on the topic, corruption that encourages a reactive approach and the absence of economic resources. Concerns have emerged regarding the possibility of climate risk insurance becoming a profit-driven enterprise and the potential development of dependency behaviors within community groups, leading to maladaptation and moral hazard. Similarly, the implementation of DRF through foreign funds has raised concerns about the loss of territorial sovereignty and autonomy.
Originality/value
This is one of the first studies that carry out this kind of research and contributes to the formulation of inclusive public policies for DRF in different contexts worldwide.
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Alan Blankley and Dana Forgione
Pressures to contain costs have given private hospitals the economic incentive to reduce provision of charity care services, shifting the burden onto governmental hospitals…
Abstract
Pressures to contain costs have given private hospitals the economic incentive to reduce provision of charity care services, shifting the burden onto governmental hospitals. Budget pressures on governmental units have produced resistance to any further shift in the charity care burden. We observe in a lawsuit (State of Texas vs. The Methodist Hospital) what appears to be a classic moral hazard situation. The government expects a certain (unspecified) level of charity care to be performed in exchange for tax exemption; hospital management allegedly consumes perquisites and overstates reported charity care figures. Both sides use accounting numbers to defend their positions.
Muhammad Rabiu Danlami, Muhamad Abduh and Lutfi Abdul Razak
Islamic banks, despite being Shariah-compliant, have long been criticized for mimicking conventional banks in terms of their products and processes (Khan, 2010; Kuran, 1996)…
Abstract
Purpose
Islamic banks, despite being Shariah-compliant, have long been criticized for mimicking conventional banks in terms of their products and processes (Khan, 2010; Kuran, 1996). However, several Islamic banks do engage in philanthropy (zakat and charity) and risk-sharing financing (mudarabah and musharakah) instruments that better meet their raison d'etre, the fulfillment of Maqasid al-Shariah (Jatmiko et al., 2023). These contracts, however, are more susceptible to moral hazard and adverse selection problems than traditional debt-based finance (Azmat et al., 2015) and may impair Islamic bank stability. This paper explores the relationship between social finance and the stability of Islamic banks, and whether institutional quality moderates this relationship.
Design/methodology/approach
Using hand-collected annual data on social finance from 12 Islamic banks in four countries: Bangladesh, Bahrain, Indonesia and Malaysia, between 2006 and 2019, the authors employ the feasible generalized least squares and the panel-corrected standard errors methods for the analysis. The Stata version 16 software was used to analyze the data for the study.
Findings
The results indicate that mudarabah and musharakah financing raises the stability of Islamic banks. The authors also found that mudarabah and musharakah expose Islamic banks to more risk-taking behavior amidst the conditioning effect of institutional quality. On the other hand, charity induces the stability of Islamic banks, while zakat increases the risk-taking behavior of the banks. Further, when the quality of institutions was used as a moderator, both zakat and charity induced the stability of Islamic banks. The results were robust when liquidity risk was used and partially robust when portfolio risks were employed as measures of stability.
Research limitations/implications
One concern regarding the application of Islamic social finance is that it might be a risky strategy for Islamic banks. In terms of research implications, the available evidence suggests that the use of Islamic social finance instruments is not detrimental to the stability of Islamic banks. Hence, regulators and policymakers should not penalize Islamic banks for using Islamic social finance instruments that help provide financial solutions to the underserved and unserved. In terms of research limitations, the study could not include other relevant Islamic social finance instruments such as waqf and qard al-hassan. Furthermore, data availability restricts the analysis to only 12 Islamic banks in fourcountries. As more Islamic banks in different countries venture into Islamic social finance, and the quantity and quality of information improve, future studies could explore the issue further.
Social implications
The available evidence suggests that the use of Islamic social finance instruments does not worsen the stability of Islamic banks. Given the dominance of sale- and lease-based contracts in Islamic financing (Aggarwal and Yousef, 2000; Šeho et al., 2020), these findings should encourage other Islamic banks to provide financial solutions using other Shariah-compliant contracts including those based on risk-sharing and philanthropy. This would be a better reflection of the Islamic banks’ value proposition as it helps boost social activities that have a high impact on the activities of small businesses, contributing to the real economy and promoting well-being in society.
Originality/value
Previous studies mainly relied on mudarabah, mushakarah and zakat separately as they relate to the performance of Islamic banks. This study explores the impact of social finance which includes charity and zakat to examine their impact on Islamic banks’ stability. Further, the authors use institutional quality as a moderating variable in the relationship between Islamic social finance instruments and the stability of Islamic banks.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2022-0441
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Asian Disaster Preparedness Center (ADPC) was established in 1986. It was restructured in July 2003 to focus on specific technical areas: climate variability and change…
Abstract
Asian Disaster Preparedness Center (ADPC) was established in 1986. It was restructured in July 2003 to focus on specific technical areas: climate variability and change management, urban disaster risk management, public health in emergencies, building national and provincial disaster management systems, and community based disaster risk management (CBDRM), promoting regional cooperation, identifying disaster risk management (DRM) needs in the region and developing strategic solutions. The consolidation enables ADPC's teams to work more effectively with stakeholders and build cross-team inputs into their work. Multiple hazards under this new thematic approach are a key concept along with new areas of importance to DRM that include chemical, biological and radio-nuclear risks, heritage and disaster mitigation, and the role of domestic capital markets in financing improvements in the built environment to create a safer, more disaster-resilient world.
The terms “risk management”, “risk reduction”, “vulnerability reduction”, “capacity building” and “mitigation” began replacing the reactive term “disaster management”, thus making pro-active DRM in Asia part of the development agenda that must deal with the growing variety and intensity of hazards. It was a shift from short-term, reactive, charity-driven responses to long-term, proactive, development initiatives.
Making the right development choices requires coordinated efforts by committed leaders who have the political will and determination to include risk reduction measures in their policies and plans; a corporate sector that will prioritise risk issues and include them into their business plans; scientists who will provide the knowledge and understanding of current and new areas of risk reduction; committed non-government agencies that advocate for risk reduction; educators who are responsible for shaping the awareness of future generations; a mass media that has the power to influence and change behaviour; and informed citizens who make choices about the risks in their lives.
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This article seeks to propose a defined set of Sharīʿah standards and guidelines for the charity account in order to provide clear guidance to Islamic financial institutions…
Abstract
Purpose
This article seeks to propose a defined set of Sharīʿah standards and guidelines for the charity account in order to provide clear guidance to Islamic financial institutions (IFIs) and eventually create a standardised practice in the management of the charity account by IFIs worldwide.
Design/methodology/approach
This article is based on a literature review regarding the origin and concept of the charity account for IFIs. It makes reference to various primary Sharīʿah sources and contemporary Sharīʿah standards pertaining to impermissible income as it relates to the charity account. It also analyses secondary sources of reference, in particular research papers and case studies on the same subject matter.
Findings
This article proposes relevant Sharīʿah standards required for the better functioning and standardisation of the charity account application by IFIs.
Research limitations/implications
This article will help IFIs, standard-setting bodies and regulators to develop a defined charity account framework. It also addresses the gaps discussed in past research and case studies that have not been resolved to date, particularly on the determination and management of charity accounts at the level of IFIs.
Practical implications
The charity account will be better controlled and thus eliminating potential reputational issues arising from collecting and disbursing commitment to donate amounts (CDA).
Social implications
The charity account distribution will be better managed and thus of more benefit to the society and recipients.
Originality/value
This article promotes the idea of standardisation in the practices of charity accounts, especially in terms of sources and disbursement.
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This paper aims to examine the puzzles of “ownership”, the legal and psychological commitment of directors, through the experience of the work of boards at non-profit…
Abstract
Purpose
This paper aims to examine the puzzles of “ownership”, the legal and psychological commitment of directors, through the experience of the work of boards at non-profit organisations.
Design/methodology/approach
An exploration of the literature on charity governance leads to a first-person reflection on the tensions in directing two common types of non-profit organisations.
Findings
In the UK as in other countries, charities are companies, bound by company law as well as regulatory constraints of the non-profit sector. This creates responsibilities of ownership without the material benefits. In contrast to corporate share ownership, a sense of psychological ownership may pre-date appointment as a director, facilitating stewardship behaviour, facilitating stewardship and accountability.
Research limitations/implications
This paper calls for expanded empirical work on boards of non-profit organisations, giving a focused agenda of aspects to highlight the differences between charities and the corporate sector.
Practical implications
The focus on psychological ownership can influence recruitment, induction and organisation of the work of charity boards, helping to ease resource deficits.
Social implications
With pressure mounting in deliver of public services, the charity sector needs to fill growing gaps in provision. The constitution of boards plays a valuable role.
Originality/value
By incorporating psychological ownership in a framework of accountability, this paper points towards both a research agenda and practical considerations for charity boards.
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