Search results

To study the determinants and effects of “Operational” exchange rate exposure resulting from the mismatch between cost and revenues of the firms by using data on 500 Indian firms.

We conduct detailed empirical analysis of the determinants of firm level exposure and their impact using panel regression techniques and conduct several robustness tests to confirm the validity of these results.

Among other factors, exchange rate volatility appears as a significant determinant of average firm level exposure with the direction of relationship supporting the presence of “Moral Hazard” in firm’s risk-taking behavior. Further large “operational” exposure is associated with significantly lower output growth, profitability, and capital expenditure during episodes of large currency depreciation at the firm level.

This paper leaves several questions to be answered. Further research is called for to explore the nature of distortions in the production process encouraged by exchange rate volatility and their impact on firm level productivity. Looking at the relationship between the use of financial and operational hedges is another fruitful area of future research.

Our results have important implications for policy makers worried about mitigating the impact of exogenous shocks. Implicit and explicit guarantees with regards to the value of exchange rate tend to raise the vulnerability of the economy to exchange rate shocks at same time that they encourage capital expenditures and possibly output growth during “normal” times. Our findings indicate that the policy makers must take into account the incentive effects of their intervention in foreign exchange markets.

Unlike the existing papers in the literature, we use a measure of “operational” currency exposure based on foreign currency revenues and costs of firms. In most of the existing papers the focus is on the mismatch between the currency denomination of assets and liabilities. Little attention has been paid to the currency mismatch between costs and revenues of the firms. Such “operational” mismatches are potentially equally important and deserve attention of policy makers and academics alike.

This study provides evidence on the importance of operational hedges in foreign-exchange risk management, an issue that has been largely ignored in the literature. One possible reason for the absence of empirical evidence in the literature may be related to the difficulty in devising the appropriate measures of a firm's ability to construct operating hedges. We utilize measures of the structure of an MNC's foreign subsidiary network as proxies of the firm's ability to devise operational hedges and examine their relationship to exposure coefficients computed prior to and during the 1997–1998 Asian currency crisis. Our results show that the mean exposure during the Asian crisis period was significantly higher than the pre-crisis period. In addition, the mean of the absolute change in the exposure of MNCs that only operate in the Asian crisis region was significantly higher than that of MNCs without operations in the crisis region. We find a strong relationship between our proxies for ability to construct operating hedges and exchange-rate exposure measures both prior to the crisis and during the crisis. An even stronger association between exposure and measures of the MNC network structure is found for the sub-sample of MNCs that have some operations in the Asian crisis region. Similar results are obtained when the relationship is examined separately for “net importers” (MNCs with positive exposures) and “net exporters” (MNCs with negative exposures). Overall, our results are consistent with the notion that operational hedges significantly reduce a firm's exposure to foreign-exchange risk.

This study contributes to the understanding of the health effects of pesticides exposure and of how pesticides have been and should be regulated.

This study presents literature reviews for the period 2000–2013 on (i) the health effects of pesticides and on (ii) preference valuation of health risks related to pesticides, as well as a discussion of the role of benefit-cost analysis applied to pesticide regulatory measures.

This study indicates that the health literature has focused on individuals with direct exposure to pesticides, i.e. farmers, while the literature on preference valuation has focused on those with indirect exposure, i.e. consumers. The discussion highlights the need to clarify the rationale for regulating pesticides, the role of risk perceptions in benefit-cost analysis, and the importance of inter-disciplinary research in this area.

This study relates findings of different disciplines (health, economics, public policy) regarding pesticides, and identifies gaps for future research.

Traditional tort law does not allow a victim of exposure to a toxic substance to seek damages without evidence of actual loss. Given the difficulty of collecting damages after a long latency period, however, we examine the desirability of granting exposure victims an independent cause of action for medical monitoring at the time of exposure. We show that such a cause of action is not necessary to induce victims to invest in efficient monitoring. It can, however, increase incentives for injurer care, but only at the cost of greater litigation costs. The general reluctance of courts to adopt a cause of action reflects their recognition of this trade-off.

The present study uses data from the National Longitudinal Study of Adolescent Health (Ad Health) to evaluate the effects of exposure to violent victimization in childhood on adolescent delinquency and subsequent adult criminality.

Using Longitudinal Latent Class Analysis (LLCA), the present study investigates whether there are distinct and diverse longitudinal delinquency trajectories among those exposed to violence in childhood.

Findings from the current study indicate that there are three distinct trajectories of delinquency and offending from age 14 to 27 for both males and females exposed to violence in childhood. Further, it appears that violent victimization in childhood bridges the gender gap in delinquency between males and females. Thus, childhood violent victimization, and the fact that females are victimized by parents/caregivers and romantic partners at higher rates than males, might be partially responsible in explaining the narrowing of the gender gap between male and female offending in the recent decades. At the same time, childhood violent victimization also seems to impact males and females in somewhat different ways. Practically, all female victims stop offending by their late 20s, whereas a fairly large proportion of males exposed to violent victimization in childhood steadily continue offending.

Although this study was able to identify the diverse impacts of violence exposure on engagement in subsequent delinquency, it did not examine the unique contributions of each type of violence on adolescent outcomes or the chronicity of exposure to each of these types of violent victimization. We were also not able to measure all types of violence experiences in childhood, such as exposure to parents’ or caregivers’ intimate partner violence.

While early prevention would be the most desirable option for both genders for the most optimal outcome, the retrospective intervention and treatment programs should be gender-specific. For males, they should heavily focus on providing alternative ways to cope with anger, impulse control and frustration, as well as teach empathy, cognitive problem solving skills, verbal communication skills, and tangible life and job skills. For females, most successful intervention and treatment programs may focus on helping the girls through a transition from adolescence to adulthood while providing mental health, medical, and family support services.

The paper uses a unique methodological approach to identify distinct and diverse longitudinal delinquency trajectories. The findings demonstrate how more resilient individuals (in terms of externalizing behaviors) can bring down the mean scores of delinquency even though many other individuals can be severely affected by violence exposure in childhood.

This paper explores the sensitivity of Chinese stock returns to changes in trade-weighted indexes of the renminbi (RMB) and the currencies of China's trading partners from 1999 to 2003. It analyses this exposure elasticity cross-sectionally using accounting variables to proxy for size and costs of financial distress. It finds that internationally oriented Chinese companies have experienced exchange exposure particularly against the yen. It also finds that, against a trade-weighted index, there is no empirical evidence that Chinese firms are engaged in hedging activities. However, when exposures are measured in yen terms, it finds that Chinese firms, particularly exporters, engage in active currency hedging.

Purpose: This study explored technology-mediated abuse (TMA) by looking at the influence of topic exposure via education (in/formal), media (non/fictional), and personal experiences (self/close others) in shaping public knowledge, understandings, and perceptions of TMA.

Methodology: Community-sampled respondents (N = 551; n = 235 men, 263 women; aged 18–81 years, M = 27.42, SD = 12.31) reported their TMA awareness and topic exposure (n = 110; 20% of the total sample indicated prior exposure).

Findings: Results indicated TMA knowledge, understanding, and perceptions varied by prior sources of topic exposure. This suggests that TMA is a crime varying in public awareness and perceived repercussions.

Research limitations: Open-ended responses, although ideal for exploratory studies such as this one, limit the scope and power of quantitative analyses. Future work should test the current study’s conclusions in a generalizable, random sample via closed-item surveys.

Originality/value: Present findings elucidate which societal forces and education types are best suited for helping people understand TMA in all its complexity. Such understanding allows for practical considerations of the comparative in/effectiveness of formal curriculum and media in shaping cognitions regarding TMA victimization.

Very low click-through rates (CTR) raise serious questions about the effectiveness of banner advertisements. However, we believe that the effect of a banner ad is not limited by clicks. Banner ad information itself can be processed by the audience.

We propose that the exposure effect of a banner ad exists even when the banner is not clicked. The results of our experiments strongly support this effect. Analyses also revealed that a non-clicked banner ad can create as strong of an exposure effect as clicked banner ads. Also, audiences that are able to recall the existence of the banner ad on a web page develop stronger implicit memory than those who cannot. Researchers are invited to re-test these interesting findings in various cultures with differing levels of Internet penetration and experience.

The anticorrosion coatings used in marine and atmospheric environment are subjected to many environmental factors. And the aging failure has been puzzling researchers. The purpose of this study is to find the correlation between the initial aging of epoxy coatings and the typical marine atmospheric environmental factors.

The epoxy coatings were subjected to a one-year exposure in three typical marine atmospheres. Meanwhile, principal component analysis, linear regression and Spearman and gray correlation analysis were applied to quantify the environmental characteristics and establish correlations with the coating aging.

The results indicate that the coating will undergo macroscopic fading and chalking upon exposure to the marine atmosphere, while microscopic examination reveals holes, cracks and partial peeling. The adhesion performance and electrochemical properties of the coating deteriorated with prolonged exposure, coating aging mainly occurs with the generation of O-H bonds and the breakage of molecular chains such as C-N and C-O-C. The coating was most deeply aged after exposure to the Xisha, followed by Zhoushan and finally Qingdao. Environmental factors affect the photooxidative aging and hydrolytic degradation processes of coatings and thus coating aging. To further demonstrate the correlation between environmental factors and coating aging, principal component analysis was used. The correlation model between environmental factors and coating aging was subsequently obtained. The correlation model between the rate of coating adhesion loss (E) and the comprehensive evaluation parameter of environmental factors (Z) is expressed as E = 0.142 + 0.028Z. Meanwhile, the Spearman correlation analysis and gray correlation method were used to investigate the impact of each environmental factor on coating aging. Solar irradiation, relative humidity and wetting time have the highest correlation with coating aging, which are all above 0.8 and have the greatest influence on coating aging; wind speed and temperature have the smallest correlation with coating aging, which are about 0.6 and have the least influence on coating aging.

This paper establishes a correlation between typical marine environmental factors and coating aging performance, which is crucial for predicting the service life of other coatings in diverse environments.

This paper aims to examine the interaction effect of regulations (monetary and macro-prudential) in explaining the possible non-linear effect of bank risk exposures (credit risk and insolvency risk) on banking stability in Africa.

The study uses a two-step system generalized method of moments (GMM) estimator for a data set of banks across 54 African countries over the period 2006–2020.

The authors find that the relationships between bank credit risk–bank stability and bank insolvency risk–bank stability are non-linear and characterized by the presence of optimal thresholds, which are 5.3456 for credit risk and 2.3643 for insolvency. Contrary to their positive effects below these optimal thresholds, credit risk and insolvency risk become negatively linked to bank stability in Africa. The authors find that macro-prudential action and monetary policy both have a positive and significant relationship with bank stability. The authors provide evidence to support that the marginal effect of excessive credit risk and insolvency risk on bank stability is reduced when interacted with monetary and macro-prudential regulations, and the impact is significant in strong institutional environment.

Future research should extend data to include developing and emerging economies in the world. Also, policymakers, researchers and practitioners should consider different regulatory and institutional frameworks in explaining the relationship between the thresholds of bank risk exposures and bank stability in the world.

Regulatory authorities should have to deeply reform their financial systems, develop risk-based regulatory framework and effective supervision mechanism relating to appropriate techniques that maintain an optimal and desired level of bank risks and risk-taking behaviours required to ensure a stable banking system.

To the best of the authors’ knowledge, this is the first study to examine how different regulatory frameworks shape the non-linear impact of bank risk exposures on bank stability in Africa.