Risky Positions Research Articles

Navigating through cyberattacks: The role of tax aggressiveness

This research investigates the impact of cyberattacks on tax aggressiveness using a difference-in-differences analysis with a matched sample. We find that firms experiencing cyberattacks are more likely to have lower cash effective tax rates and greater discretionary book-tax differences. We further show that cyberattacks have a greater impact on corporate tax aggressiveness when firms are more exposed to financial distress. Additional analyses show tax aggressiveness increases less when firms are in states with enactments of notification laws and firms with ex ante higher cybersecurity investment. Our aggregate results suggest that firms take more tax risky positions in response to greater financial distress and information asymmetry, which are attributed to the consequences of cyberattacks.

Multi-period portfolio choice under loss aversion with dynamic reference point in serially correlated market

This paper explores a novel multi-period portfolio decision model for loss-averse investors with dynamically adapted reference points in a market with serially correlated returns. We demonstrate that the optimal policy is a piecewise linear function of the deviation between current wealth and reference level, and its slopes are a path-dependent function of the historical returns, in sharp contrast to the constant slopes generated by the simplified model that ignores the diminishing sensitivity and assumes independent returns. This distinctive characteristic significantly departs from the conventional V-shaped pattern of the risky position, leading to a more intricate nonlinear functional mapping. Our study underscores the potential pitfalls of relying on the simplified model and offers valuable insights for investors and practitioners seeking to formulate effective portfolio strategies under realistic market conditions. Furthermore, our simulation analysis indicates that the predictability of returns, coupled with a slight degree of diminishing sensitivity, may amplify the disposition effect. Lastly, we establish that the new policy also effectively addresses the multi-period mean-conditional-value-at-risk (CVaR) portfolio optimization problem in the context of correlated returns, thereby expanding the practical applications of our findings.

Provincial Financing During the First Regional Reform. The Arkhangelsk Version

Provincial institutions created by Peter I in 1710 were designed to ensure fiscal mobilisation, large-scale and maximum possible collection of material resources for the needs of warfare and the simultaneous reform of the armed forces. The first Russian governors had extensive administrative powers but, at the same time, they were under the strict financial control of the highest governing bodies: the Senate, its divisions, and the monarch himself. The governors were deprived of legal opportunities to spend at least some of the money collected through the provincial cash desks to ensure the functioning of their apparatus. It was not only about paying salaries to the ranks of provincial administrations, maintaining administrative buildings in working order, and purchasing consumables for office work. There was no money for more substantial expenditures: payment for the travel of numerous commissioners from the centre to the provinces, for the travel of their officials within the provinces, for the fees for the accommodation of these agents, for the expenses of their maintenance, for the payment of various kinds of state works, for the transportation of recruits and material supplies to the centre, i. e. everything that constituted the very essence of the functioning of local authorities. In this paradoxical situation, the main support could only be obtained from the zemstvo self-government bodies. The long-known practice of state bodies of local power being maintained by the population of the uyezd was replenished in the Petrine era with new elements. Lay fees covered the expenses of crown agents sent from the centre to the region and helped pay for some government work within the province. However, the peculiarities of the legislation of the era put the governors and their employees, who shifted the financial burden on the zemstvo, into a risky position. They could be accused of bribery and “unspecified fees” that undermined the solvency of the taxed population. Never previously published documents on Arkhangelsk province discovered by the author of the article reveal the complete picture of the financial support of the township communities of the Dvina uyezd for the activities of the provincial administration in 1711–1713 and the complex vicissitudes of relations between the central and local crown authorities and secular organisations. The documents were archived during the investigation of the case of the Arkhangelsk vice-governor A. A. Kurbatov and reflect one of the investigative episodes of 1716.

Portfolio Choice with Endogenous Donations - Modeling University Endowments

University endowments differ from other institutions in that donation income and spending rates are of equal importance to asset allocation decisions. Our paper develops an optimal endowment framework with endogenous donations income through a feedback dependence based on investment performance. We investigate both substitution and wealth effects due to incomplete markets and nonlinear donation risk. Looking at empirical data on actual US endowment practices, we validate our donations processes. Large endowments take riskier positions. However, this effect weakens with increasing donation risk, documenting another form of the substitution effect empirically. Spending rates are time varying and determined by relative investment opportunities and the corresponding interaction with endowment size.

Concerns of parents of students with autism spectrum disorders (ASD) towards the safety of COVID-19 Vaccination in Saudi Arabia (SA)

Background: Although previous scientific studies have confirmed that vaccinations are safe and do not result in harm to students with and without disabilities, some parents of students with autism spectrum disorders (ASD) had concerns that vaccines might cause potential medical issues for their children. These concerns may have an impact on these parents’ decision to vaccinate their students against COVID-19. Therefore, this study aims to explore and understand the concerns of parents of students with ASD about the safety of the COVID-19 vaccination and to what extent these concerns can diminish the willingness of parents of students with ASD to vaccinate their children against COVID-19 in Saudi Arabia (SA). Methods: a qualitative design was adapted through a developed semi-structured interview. Participants included eight parents of students aged 12 years and over with ASD, who were enrolled in two male state-funded institutions that provide educational services to those with developmental disabilities, including ASD in Riyadh, SA. The study was conducted between 17th of September and the 15th of November 2022. Results: The results indicated that parents had several concerns regarding the safety of the COVID-19 vaccines. However, their concerns have not diminished their willingness to vaccinate their children. To increase parents’ knowledge and relieve their concerns, several recommendations should be applied such as strict penalties being imposed on parents who refuse to have their children vaccinated, because they put their children in a risky position and the authorities in this matter and using the media to convince the community of the importance of the vaccine and the necessity of addressing it. Conclusion: The current study emphasized the need to provide more care and support for parents with children with disabilities. An urgent intervention should be provided for children with ASD because they are more likely to be at a higher risk of COVID-19 illness due to the increased prevalence of underlying health conditions, suboptimal vaccination rates, and systemic inequities. Keywords: COVID-19, vaccines, autism, Saudi Arabia

Cigarette Gifting Among Nonsmokers in China: Findings From the International Tobacco Control China Survey.

Cigarette gifting is commonly practiced in China and has contributed to the social acceptability and high prevalence of cigarette smoking in the country. As a result, nonsmokers in China are particularly susceptible to smoking. While previous studies have examined cigarette gifting behaviors among smokers, little is known about cigarette gifting among nonsmokers. This study aimed to examine the percentage and correlates of giving and receiving cigarettes as gifts among adult nonsmokers in China. We analyzed nonsmokers (N = 1813) aged ≥18 years using data from the International Tobacco Control China Wave 5 Survey. Descriptive statistics summarized the characteristics of those who gave and received cigarettes as gifts. Multivariable logistic regression models were used to identify factors associated with the two behaviors. Among nonsmokers, 9.9% reported giving cigarettes as gifts to family or friends in the last 6 months. A higher level of knowledge about smoking harms was associated with lower adjusted odds of gifting cigarettes. Nonsmokers aged 25-39 years, with middle income, positive attitude toward cigarette gifts, exposure to anti-smoking information, and exposure to smoking promotion, and those who reported receiving cigarettes as gifts from family or friends were more likely to give cigarettes as gifts. A total of 6.6% of nonsmokers reported receiving cigarettes as gifts in the last 6 months. High education, neutral or positive attitude toward cigarette gifts, exposure to anti-smoking information, exposure to smoking promotion, and having smoking friends were associated with receiving cigarettes as gifts. It is concerning that Chinese cultural norms that support cigarette gifting have extended to giving nonsmokers cigarettes as gifts. Effective anti-smoking messages are needed. Changing the norms around cigarette gifting and increasing knowledge about smoking harms should help reduce cigarette gifting among nonsmokers. Easy access to cigarettes received as gifts, along with the wide acceptance of smoking in China, places Chinese nonsmokers in a risky position. More educational campaigns targeting nonsmokers to proactively prevent them from smoking are called for. The ineffectiveness of existing anti-smoking information highlights the need for more effective anti-smoking messages. That attitude toward cigarette gifts is the strongest predictor of giving cigarettes as gifts suggests the need for interventions to reverse the positive attitude about cigarette gifting to decrease the popularity of this activity.

Interest Rate and Bank Risk-Taking: The Role of Income Diversity

This research examines the impact of interest rates on the risk-taking appetite of banks in Egypt and how income diversity influences their risk-taking. Furthermore, it contributes to the literature by investigating the association between the interacting effect of interest rate and income diversity shares on bank risk-taking. The sample includes 22 banks operating in Egypt spanning from 2011 to 2020. For the analysis, the cross-sectional time-series generalized least squares regression (GLS) approach is employed. The results reveal that low-interest rates exacerbate bank risk-taking. In addition, larger income diversity restricts the risk-taking behavior of banks. Importantly, the results show that banks with higher levels of income diversity push for less risky positions during the low-interest rate period. Hence, the results provide valuable insights into the importance of the moderating role of income diversity strategies. The results are robust to different proxies of bank risk-taking. The policy implications from this research indicate that bank managers and regulators in Egypt as well as in similar emerging economies shall promote income diversity strategies to ensure the safety and soundness of the banking system at times of low-interest rates.

Prepare for Clery Act compliance review, audit

A Clery Act violation can place your institution in a costly, risky position. To help you anticipate and navigate a Clery compliance audit for your institution, you'll want to review the suggestions offered by Leslie M. Gomez, Esq., Vice Chair, Institutional Response Group at Cozen O'Connor, and Steven J. Healy, Chief Executive Officer of Margolis Healy, in a session of the Legal Issues in Higher Education Conference hosted by the University of Vermont.

The Nexus between Uncertainty Avoidance Culture and Risk-taking Behaviour in Entrepreneurial Firms’ Decision Making

Abstract Purpose: The concerted effect of national culture and risk-taking behaviour of individuals on decision-making has not been given much attention in the literature. This paper, thus, attempts to investigate how the two variables, separately and jointly, affect the decision-making of firms. Methodology: The review pursues systematic literature review methodology. The keywords constituted in a series of search queries include risk-taking, or risk-taking behaviour, risk taking propensity, risk aversion, uncertainty avoidance, uncertainty avoidance national culture, fear of unknown or future, and uncertainty avoidance culture and risk-taking. The review of the studies addresses more than thirty-five countries over the years 1975–2021. Findings: The review result re-boosts the existing negative relationship between a high uncertainty avoidance culture and risk-taking behaviour. When the level of risk-taking is increased, the effect of uncertainty avoidance culture gets decreased, which thereof helps to reduce resistance to change in firms. The latter institutes a greater fear of failure, lower level of ambition, and less tolerance for ambiguity that result in low risk-taking appetite. Their concurrent effect is realized in various decision-making contexts including firms’ entry and investment decisions, customer buying decisions, self – versus group decisions, and policy decisions. Value Added: As a result, firms may need to consider the risk-taking behaviour and uncertainty avoidance culture of employees for certain jobs, consumers for marketing, managers for an international assignment in risky positions, and of individual countries for business expansion. The study claims to have added significant value to the practical and theoretical discourse of uncertainty avoidance national culture and risk-taking behaviour in business decision-making scenarios.

Determining the Relationship between Social Media Addiction and Sleep Quality of Students, Faculty of Sports Sciences

Purpose: In this study, to determine the social media addiction and sleep quality level of students; The aim of this study was to examine the relationship between sleep quality and social media addiction. Methods: This study was planned as a descriptive relational study. The study was carried out in the Faculty of Sports Sciences of a university. A total of 208 students studying at the faculty of sports sciences formed the sample of the research. In data collection; A personal information form, prepared by researchers and questioning socio-demographic characteristics, Social Media Addiction Scale and Pittsburgh Sleep Quality Index were used. Independent two-sample t-test and One-Way Anova were used for normally distributed data. The results were evaluated at 95% confidence interval and p<0.05 significance level. Results: When the sociodemographic characteristics of the students were examined, the mean age was 20.88 ± 2.40, 47.1% of them were female, 52.9% were male, 29.3% of their mothers were primary school graduates, 51.0% of them were female. it was determined that their fathers were high school graduates, 38.5% described their income as medium, 41.8% perceived their health as good, and 58.2% lived in the city for the longest time. It was found that the students’ social media addiction total score average was 69.11 ± 16.19 and the average sleep quality score was 10.97 ± 3.39. Conclusions: In line with the results of the study, it was seen that the students included in the sample were in a risky position in terms of social media addiction, and their sleep quality was also quite bad. It was found that there was a significant relationship between students’ social media addiction and their sleep quality. It was concluded that the students had worse sleep quality as the level of social media addiction increased.

ЦИФРОВАЯ ТРАНСФОРМАЦИЯ КАК ФАКТОР РАЗВИТИЯ ВЗАИМОДЕЙСТВИЯ ГОСУДАРСТВА И БИЗНЕСА

The article is devoted to the systematization and disclosure of the essence of new trends in the process of interaction between the state and society, due to digital transformation. At the same time, the authors consider both positive trends, which bring a whole range of new opportunities for all participants, and negative ones, which entail some risky positions. The issue of the essence of digital transformation in the context of the bilateral development of government and business structures has been updated. In addition, the paper reveals the content of the concept of “digital transformation” as a key trend in modern technological development, which transparently reveals the forms of interaction between the state and the business community. Attention is focused on the influence of digital conditions on individual processes of such interaction, which determine promising directions in the development of the regional digital space.

The effects of bank competition, financial stability and ownership structure: evidence from the Middle East and North African (MENA) countries

PurposeThis study aims to show the relationship between competition, financial stability and ownership structure of banks in the Middle East and North African (MENA) countries.Design/methodology/approachThis study uses the generalized method of moments (GMM) estimators to generate research results. This study uses an unbalanced panel dynamic data set. It covers the period 2011 to 2017 in MENA banks.FindingsThis study implies that there is a significant and positive relationship between market power and the financial stability of banks in MENA countries. It explains a competitive market focus on credit risk, which turns them risky. From the bank’s ownership view, Islamic banks are in a less risky position which means Islamic banks are more stable than other ownership structures. On the other hand, government specialized institute displays their poor financial stability and risky from other ownership structures. Unfortunately, there is no significant impact of ownership structure on competition unless Islamic banks prove that they (Islamic banks) perform better in market power.Practical implicationsThe empirical findings of this study suggest that MENA banks should improve the process of managing and monitoring the non-performing loan (loan segment business). It reduces the level of credit risk, which leads to achieving more profit. It also recommends that loan quality should improve immediately in this region for declining financial disruption. Based on the ownership structure, policymakers and stakeholders should adjust their risk and financial stability. Notably, the stakeholders can focus on Islamic banks in this region as this type of ownership structure showing superiority over other ownership structures.Originality/valueThis study is based on the latest data set and produced outcomes by using a GMM estimator. It also uses multiple measures of competition and risk variables to get robust results. Moreover, to the best of the knowledge, this study is the pioneer to examine the competition, risk (financial stability) and ownership structure of banks in the MENA countries.

Influence of the Glass Cliff Phenomenon on the Effectiveness of Women Senior Managers in Organisational Development in Kenya.

This study sought to understand the influence of the glass cliff phenomenon on the effectiveness of women senior managers in organisational development. Specifically, the study examined the influence of promotion processes on the effectiveness of women senior managers. Using a descriptive survey design, registered and active non-governmental organisations in Nakuru County participated in the study focusing on women senior managers. A self-administered questionnaire, both open and closed-ended questions, was used in collecting data. Quantitative data collected was sorted and cleaned, and the analysis was undertaken through the use of the Statistical Package for Social Science (SPSS) software. Pearson correlation and Chi-square tests were used to determine the influence between the study variables. On the other hand, thematic analysis was used to analyse qualitative data. The study established that there is a positive relationship exists between promotion processes and the effectiveness of women senior managers (r=0.619; p<0.05). Furthermore, the chi-square results indicated a statistically significant association between promotion processes and the effectiveness of women senior managers (χ2=36.905; p=0.000). The study concludes that women are promoted into senior management positions where the organisation is failing. Women are not promoted into risky positions as compared to their male counterparts, but contextual gender factors such as patriarchy contribute to the women feeling that their positions are risky. This study recommends that a comparative study should be conducted to compare the influence of the glass cliff phenomenon on the effectiveness of women senior managers in developed and developing countries.

The concept of product market positioning

The purpose of the article was to reveal the concept of positioning in the market and its main components by identifying the main strategic advantages and properties of this approach. In addition, the article notes the basic rules for positioning the product and highlights the importance of using the positioning map in controlling the position of the product. The article considers the history of the concept of positioning, defines the features of the approaches and definitions of various authors, as well as the analysis of the selection of its criteria. The authors of the article explain the essence of the positioning process, justify the conditions for choosing a positioning strategy.Methodology - The authors used a comparative method of analyzing various positioning strategies and strategic branding, as well as a structural and functional approach in assessing the versatile risky positions of products in the market, in presenting individual positioning processes and describing their stages.Originality / value of the research. The results of the study provide new systematized knowledge that contributes to the further development of the scientific foundations of strategic positioning, increasing the level of scientific research, as well as expanding practical application.Findings - The authors summarize the theoretical and methodological aspects of strategic positioning, based on the systematization of existing practices, the author's interpretation of the concept of "positioning" is given, an author's algorithm is proposed for the actions of companies to develop and implement a positioning strategy based on the need to plan brand development and mandatory analysis of the competitive environment through the definition of attributes and images of competing companies.

Protecting pegged currency markets from speculative investors

AbstractWe consider a stochastic game between a trader and a central bank in a target zone market with a lower currency peg. This currency peg is maintained by the central bank through the generation of permanent price impact, thereby aggregating an ever‐increasing risky position in foreign reserves. We describe this situation mathematically by means of two coupled singular control problems, where the common singularity arises from a local time along a random curve. Our first result identifies a certain local time as that central bank strategy for which this risk position is minimized. We then consider the worst‐case situation the central bank may face by identifying that strategy of the strategic investor that maximizes the expected inventory of the central bank under a cost criterion, thus establishing a Stackelberg equilibrium in our model.

Structural health monitoring of bridge spans using Moment Cumulative Functions of Power Spectral Density (MCF-PSD) and deep learning

This article proposes a new parameter in evaluating mechanical behaviors of defected bridge spans. It is Moment Cumulative Function of Power Spectral Density (MCF-PSD) based on changes in shape of power spectrum and trained via cumulative function of spectral moment value by deep learning model. This new parameter allows evaluating stiffness attenuation along time, thereby helps to forecast the workability of bridge span. It can identify risky positions in not only a bridge span but also various spans of the same bridge, which proves its sensitivity to the structure’s behavior change over time. This study reveals that training MCF-PSD using cumulative function algorithm has gained outstanding results in comparison with previous studies in structural quality assessment. Therefore, it fulfills criteria of evaluating the damage level in a structure and also fosters new development of defect diagnosis and forecast. Conclusions from this study show that the change of this function is the basis to evaluate difference among measurement positions in the same span or among different spans of the same bridge and behaviors at different positions in the same span. Therefore, MCF-PSD is more sensitive than other parameters in evaluating the structure’s stiffness attenuation.

Risk-taking and performance of government bond mutual funds

This paper investigates the risk exposures of government bond mutual funds and how risk-taking behavior affects fund performance. Government bond mutual funds often outperform their respective benchmark bond indexes before but not after adjusting for bond market risk factors. We show that the risk-taking behavior of fund managers helps to explain the different performances of government bond funds with and without controlling for the risk factors. Our results suggest that risk-taking leads to higher returns relative to benchmarks in normal risk periods but lower returns in high risk periods, suggesting that fund managers consistently take risky bets in fund management. We further show that the risk-taking of government bond funds is persistent and that investors typically have no ability to differentiate between the skill and risk components of fund performance. These findings suggest why fund managers have incentives to take consistently risky positions.

Board gender diversity, power, and bank risk taking

Having female board members brings ethical/societal perspectives and new resources to decision making. However, there is lack of evidence on whether it mitigates bank excessive risk-taking; hence, this paper addresses this question. It complements the normative corporate governance literature by combining agency theory and approach/inhibition theory of power from social psychology. For a sample of 195 U.S. commercial banks during 2002–2018, banks invest in more risky assets when female directors perceive the positive rewards of risky investments (in banks that have larger regulatory capital ratios and/or are well-capitalized) and when power shifts away due to CEO equity ownership. On the other hand, banks invest in less risky positions when female directors perceive the penalties inherent in a risky investment during the financial crisis. This paper provides novel evidence on the effect of gender diversity, as a governance mechanism, on risk taking in a social-psychology context. It offers insights on the effect of gender diversity on bank riskiness.

A preliminary studies to assess public knowledge of beach safety in east coast Malaysia.

Rip currents are one of the coastal hazards that put Malaysian beachgoers in a risky position. Most of the drowning accidents that occur at beaches worldwide are closely associated with this phenomenon. Research on rip currents is needed to build an effective measuring tool to overcome these issues. However, to date, research on rip currents is mainly focused on its physical aspects, commonly concentrating on the processes that influence and relate to the rips’ generation. As an effort to minimize the negative consequences exerted by the rips, there is an urgent need to enhance the rip-related research in the social sciences field. Comprehensive research that includes all fields might produce more beneficial and reliable information. Therefore, this study intends to examine the level of public understanding of rip currents and beach safety knowledge of the Teluk Cempedak Beach. A questionnaire comprising 5 sections and 31 questions was developed as the primary tool in this study. A total of 60 beachgoers have been surveyed for this preliminary study through a questionnaire to investigate their demographic profile, frequency of visiting the beach, swimming ability, and their knowledge of rip currents and beach safety. The results show that the beachgoers have poor knowledge of rip currents. Conversely, they are observed to have higher beach safety knowledge. Also, the findings help in filling the research gaps of this study in terms of the instrument used for the data collection procedure. Above all, an extension of this study may contribute to the development of beneficial tools in assessing public knowledge on beach safety and rip currents throughout Malaysian beaches.Supplementary informationThe online version contains supplementary material available at (10.1007/s11069-021-04613-z).

MONITORING AND EVALUATION OF THE LEVEL OF DEVELOPMENT OF THE EUROPEAN REGIONAL SECURITY COMPLEX

Intensification of destabilizing processes in the world economy, increasing the impact of global challenges and the spread of uncertainty in the conditions of economic activity actualize scientific research to ensure a high level of economic security of countries and regions. This in turn requires a thorough systematic analysis and assessment of the level of security and the state of the security environment based on the development of appropriate methodological tools. Taking it into account, the presented research is aimed at developing a system for monitoring and assessing the level of security development of the countries of the European region, based on the tools of multidimensional assessment and construction of complex integrated indicators. The article is aimed to development of the system for monitoring and assessing the EU security level, which consists of comprehensive assessment of the formation of security development factors, construction of the security level integrated indexes, which allowes to classify the EU countries according to the security level, to identify the features and intensity of the influence of the different determinants on the security level formation, to establish the peculiarities of the EU countries distribution within the regional security space. The object of the study is the regional security complex of the EU, based on the monitoring system – 24 indicators, which are systematized by nature (economic, sociodemographic, environmental) and direction of impact (incentives, disincentives), which are assessed for the period 2010–2019. The results show a high assessment of the integrated level of security in countries such as Ireland, Sweden, Denmark, Austria, Cyprus, Finland, Slovakia, the Netherlands, Luxembourg and Germany; Ireland, the Czech Republic, Hungary, Lithuania, and Denmark have the highest security positions in terms of the economic component of the security level, Cyprus, Slovenia, Ireland, Luxembourg and Slovenia in terms of socio-demographic, and Sweden, Austria, Denmark, Finland and Portugal in terms of environmental security. The reduced impact of the economic security component factors, maintaining a moderate impact of the socio-demographic security component factors, the increasing influence of the environmental factors are determined. Statistical analysis of the distribution of the EU countries by security level in 2010–2019 confirmed the tendency to equalize the level of security development of the EU countries within the regional security complex, to reduce the level of variation of integrated assessments of security levels, to increase the share of countries with high levels. Building a matrix of positioning of the EU countries by the integrated level of security and the intensity of its dynamics allowed to divide the countries and zones of relative security and danger, and to determine that the most risky positions are in Italy, Bulgaria and Romania. The practical significance of the results of the study lies in the possibility of applying the proposed system of monitoring the level of security in the development and implementation of regional security strategy of the EU development, which will more effectively monitor changes, prevent risks and threats, prevent negative consequences.