Niranjan Chipalkatti, Massimo DiPierro, Carl Luft and John Plamondon
In 2009, effective the second-quarter, the financial accounting standards board mandated that all banks need to disclose the fair value of loans in their 10-Q filings in addition…
Abstract
Purpose
In 2009, effective the second-quarter, the financial accounting standards board mandated that all banks need to disclose the fair value of loans in their 10-Q filings in addition to their 10-K filings. This paper aims to investigate whether these disclosures reduced the level of information asymmetry about the riskiness of bank loan portfolios during the financial crisis.
Design/methodology/approach
The paper examines the impact of these disclosures on the bid-ask spread of a panel of 246 publicly traded bank holding companies. The spread serves as a proxy for information asymmetry and the ratio of the fair value of a bank’s loan portfolio to its book value is a proxy for the credit and liquidity risk associated with the same. The reaction to the first-quarter filing serves as a control to assess the reaction at the time of the second-quarter filing.
Findings
There is a significant negative association between bid-ask spread and the ratio indicating that the fair value information was useful in reducing information asymmetry during the financial crisis. A pattern was observed in the information dissemination related to the fair value of loans that is consistent with the literature that documents a delayed investor reaction to complex financial information.
Originality/value
Investors may use the fair value information to better assess the risk profile of a BHC’s loan portfolio. Also, loan fair values provide managers with data to better implement stress test models and determine optimal capital buffers.
Details
Keywords
THE Deutsche Versuchsanstalt für Luft‐fahrt—known for short as the D.V.L.—at Berlin‐Adlershof, is the central establishment for aeronautical research in Germany. Hitherto the…
Abstract
THE Deutsche Versuchsanstalt für Luft‐fahrt—known for short as the D.V.L.—at Berlin‐Adlershof, is the central establishment for aeronautical research in Germany. Hitherto the D.V.L. had as its special prerogative the testing of aircraft and aero‐engines for certificates of airworthiness. Since April 1, 1933, the Inspection Department has passed under the authority of the “Reichsamt für Flugsicherung” (Air Security Board), but it has not actually been separated from the D.V.L., continuing to have its premises at the D.V.L. establishment. (Further details of the Inspection Department are given later.)
The aim of this chapter is to argue that charisma is a collective representation, and that charismatic authority is a social status that derives more from the “recognition” of the…
Abstract
Purpose
The aim of this chapter is to argue that charisma is a collective representation, and that charismatic authority is a social status that derives more from the “recognition” of the followers than from the “magnetism” of the leaders. I contend further that a close reading of Max Weber shows that he, too, saw charisma in this light.
Approach
I develop my argument by a close reading of many of the most relevant texts on the subject. This includes not only the renowned texts on this subject by Max Weber, but also many books and articles that interpret or criticize Weber’s views.
Findings
I pay exceptionally close attention to key arguments and texts, several of which have been overlooked in the past.
Implications
Writers for whom charisma is personal magnetism tend to assume that charismatic rule is natural and that the full realization of democratic norms is unlikely. Authority, in this view, emanates from rulers unbound by popular constraint. I argue that, in fact, authority draws both its mandate and its energy from the public, and that rulers depend on the loyalty of their subjects, which is never assured. So charismatic claimants are dependent on popular choice, not vice versa.
Originality
I advocate a “culturalist” interpretation of Weber, which runs counter to the dominant “personalist” account. Conventional interpreters, under the sway of theology or mass psychology, misread Weber as a romantic, for whom charisma is primal and undemocratic rule is destiny. This essay offers a counter-reading.
Details
Keywords
THE Deutsche Luftfahrtschau, or as it is more generally known, the Hanover Air Show, is held every two years by the Bundesverband der Deutschen Luft‐ und Raumfahrtindustrie e.V…
Abstract
THE Deutsche Luftfahrtschau, or as it is more generally known, the Hanover Air Show, is held every two years by the Bundesverband der Deutschen Luft‐ und Raumfahrtindustrie e.V. (Federal Association of the German Air and Spacecraft Industries). This year's Show will be held from April 29 to May 8 at the Hanover Langenhagen Airport and will be held at the same time as the Hanover Fair.
THE Deutsche Luftfahrtschau, or as it is more generally known, the Hanover Air Show, held every two years by the Bundesverband der Deutschen Luft‐ und Raumfahrtindustrie e.V…
Abstract
THE Deutsche Luftfahrtschau, or as it is more generally known, the Hanover Air Show, held every two years by the Bundesverband der Deutschen Luft‐ und Raumfahrtindustrie e.V. (Federal Association of the German Air and Spacecraft Industries). This year's Show will be held from April 26 to May 5 at the Hanover Langenhagen Airport and will be held at the same time as the famous Hanover Fair.
Learning organizations are one of many current buzz words used by persons concerned with the demands faced by all for change ‐ both radical and transformative change and…
Abstract
Learning organizations are one of many current buzz words used by persons concerned with the demands faced by all for change ‐ both radical and transformative change and incremental change. At the heart of any change process is the individual. We know from extensive studies in many fields what some of the essential requirements are for creating the conditions for adult learning, and an adult’s subsequent ability to adapt and change. One of the most critical and often overlooked requirements for adult learning is a learning context which is safe and supportive for and of the learned. Trust is also critical along with other essential requirements. Ontogogy is another appeal to examine the context of any learning required related to quality improvement, or any other change of innovation.
Details
Keywords
No matter what the organization's activity, or country, the better the decisions of its managers and leaders, the more likely that the organization will thrive.
Using the case of the Deepwater Horizon blowout in the Gulf of Mexico in 2010, I argue that the catastrophe was less an example of a low probability-high catastrophe event than an…
Abstract
Using the case of the Deepwater Horizon blowout in the Gulf of Mexico in 2010, I argue that the catastrophe was less an example of a low probability-high catastrophe event than an instance of socially produced risks and insecurities associated with deepwater oil and gas production during the neoliberal period after 1980. The disaster exposes the deadly intersection of the aggressive enclosure of a new technologically risky resource frontier (the deepwater continental shelf) with what I call a frontier of neoliberalized risk, a lethal product of cut-throat corporate cost-cutting, the collapse of government oversight and regulatory authority and the deepening financialization and securitization of the oil market. These two local pockets of socially produced risk and wrecklessness have come to exceed the capabilities of what passes as risk management and energy security. In this sense, the Deepwater Horizon disaster was produced by a set of structural conditions, a sort of rogue capitalism, not unlike those which precipitated the financial meltdown of 2008. The forms of accumulation unleashed in the Gulf of Mexico over three decades rendered a high-risk enterprise yet more risky, all the while accumulating insecurities and radical uncertainties which made the likelihood of a Deepwater Horizon type disaster highly overdetermined.