The Arrow–Pratt approximation to the risk premium is only valid for small risks. In this paper we consider a second approximation, based on risk-neutral probabilities and which…
Abstract
Purpose
The Arrow–Pratt approximation to the risk premium is only valid for small risks. In this paper we consider a second approximation, based on risk-neutral probabilities and which requires no greater information than the Arrow–Pratt approximation, that works well for both small and large risks.
Design/methodology/approach
The paper is theoretical in nature, although it also provides illustrative numerical simulations.
Findings
The new approximation proposed here appears to be significantly superior to Arrow–Pratt for approximating the true value of the risk premium when the risk is large. It may also approximate better even for relatively small risks.
Originality/value
As far as we are aware, there are no other known approximations for the risk premium when the risk involved is large.
Details
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Ngoc Dung Tran, Phuong Hoa Dinh, Dinh Hoang Uyen Nguyen and Van Vinh Nguyen
This paper aims to investigate “corporate governance” of the English East India Company (EIC) in the late 17th century through a case study of the Tonkin factory (1672–1697).
Abstract
Purpose
This paper aims to investigate “corporate governance” of the English East India Company (EIC) in the late 17th century through a case study of the Tonkin factory (1672–1697).
Design/methodology/approach
The paper draws upon British primary materials relating to the Tonkin factory to examine and analyze the EIC’s style of management in Tonkin (Vietnam) and Bantam (Java). Qualitative and comparative methods are applied to the analysis of reports, records and letters written by EIC staff.
Findings
The paper finds that the EIC faced principal-agent problems as it had difficulties administering its distant agents and subsidiaries in the 17th century. London was strategically weakened, both by the limiting power of regional headquarters and by its use of experienced factors. Before 1682, London failed to temper the Bantam Council’s influence, and there were serious internal conflicts and power struggles between English Tonkin employees seeking to improve their positions. After 1686, London successfully forced Madras to adopt a noninterventionist stance in Tonkin’s business, but it faced the problem of “adverse selection.”
Originality/value
This paper provides evidence from the Tonkin factory (1672–1697) to show the EIC’s governance in the perspective of the agency theory.
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Michael Burgess, the Associate Librarian who serves as the Chief Cataloger at California State College, San Bernardino, came to the attention of the library community on 11…
Abstract
Michael Burgess, the Associate Librarian who serves as the Chief Cataloger at California State College, San Bernardino, came to the attention of the library community on 11 October 1983, when he entered record number 10,000,000 into the OCLC database. However, writing under the pseudonymn of R. Reginald, which he has used since 1968, he has edited two major reference books published by Gale Research, among dozens of other published books and articles. R. Reginald also owns the Borgo Press, which specializes in current affairs bibliographies and science fiction, and which operates out of Burgess' San Bernardino home.
In 1899 the medical practitioners of Dublin were confronted with an outbreak of a peculiar and obscure illness, characterised by symptoms which were very unusual. For want of a…
Abstract
In 1899 the medical practitioners of Dublin were confronted with an outbreak of a peculiar and obscure illness, characterised by symptoms which were very unusual. For want of a better explanation, the disorder, which seemed to be epidemic, was explained by the simple expedient of finding a name for it. It was labelled as “beri‐beri,” a tropical disease with very much the same clinical and pathological features as those observed at Dublin. Papers were read before certain societies, and then as the cases gradually diminished in number, the subject lost interest and was dropped.
IN 1971 there were 1,207 scaffolding accidents, 14 of them fatal. This revelation was made by Mr. Dudley Smith, M.P., Parliamentary Under‐Secretary of State at the Department of…
Abstract
IN 1971 there were 1,207 scaffolding accidents, 14 of them fatal. This revelation was made by Mr. Dudley Smith, M.P., Parliamentary Under‐Secretary of State at the Department of Employment, in his recent speech at the Scaffolding Training Centre. In view of his further comments, and the fact that many construction companies operate work study departments, much of what he had to say is worth more publicity than it has so far received.
Balakrishnan Muniapan and Sony Jalarajan Raj
This chapter explores the concept of ‘dharma’ (duty orientation) and ‘karma’ (action orientation) of corporate social responsibility (CSR) from Vedantic…
Abstract
Purpose
This chapter explores the concept of ‘dharma’ (duty orientation) and ‘karma’ (action orientation) of corporate social responsibility (CSR) from Vedantic (Vedanta) viewpoints. Islam, Buddhism and Christianity have received wider attentions in the CSR literatures from philosophical and religious perspective. However, Vedanta is yet to be explored in the context of CSR. This chapter therefore is timely and fills the gap in the CSR literature.
Design/methodology/approach
In this chapter, the authors employ hermeneutics, a qualitative research methodology which involves the study, understanding and interpretation of religious texts of Vedanta particularly the ‘dharma’ and ‘karma’ in the context of CSR.
Findings
In a nutshell, the Vedanta provides an inside-out approach to CSR, which is development of the individual leader’s self-conscience. The leaders and the role they play in corporations are crucial in ensuring transparency, good conduct and governance towards the ultimate aim of achieving CSR.
Originality/value
This chapter analyses the Vedantic perspectives on communication in establishing CSR objectives. It investigates the problems and prospects of Vedantic style of communicating CSR.
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George K. Amoako, Ruby Melody Agbola, Robert K. Dzogbenuku and Evans Sokro
Issues concerning society are everybody's business. Therefore, individuals, larger or smaller groups, formal or informal entities, public or private firms, governmental or…
Abstract
Issues concerning society are everybody's business. Therefore, individuals, larger or smaller groups, formal or informal entities, public or private firms, governmental or non-governmental organisations who are key stakeholders of society must always aspire to champion societal concerns. Society's welfare should be everybody's business. Corporate social responsibility (CSR) in a broad sense can be viewed as the relationship of organisations with society as a whole, and the need for organisations to align their values with societal expectations (Atuguba & Dowuona-Hammond, 2006). In reality, it is a set of standards by which organisations can impact their environment with the potential of creating sustainable development (Helg, 2007). It is critical that society educates everyone to be responsible. From all societal actors, universities are the ones educating the future elites of a country. What they teach and do not teach may make or break a nation's future and well-being. As noted by Dashwood and Puplampu (2010), there is a greater need for crafting a sustainable, strategic and mutually beneficial set of responsible actions in embracing the right approaches to CSR. According to them, such actions should emanate from a genuine recognition of, and attention to, economic, traditional, historical, as well as business arguments from the perspectives of the stakeholders and interest groups.
This paper aims to provide an account of how Islam regulates the processes and interactions in areas of the economy and trade. It seeks to provide insights on business ethics and…
Abstract
Purpose
This paper aims to provide an account of how Islam regulates the processes and interactions in areas of the economy and trade. It seeks to provide insights on business ethics and social responsibility from the perspective of the Islamic religion.
Design/methodology/approach
A survey of literature on the two issues business ethics and social responsibility is carried out. The various arguments advanced here rest on the teachings of the holy book of Islam (The Quran) and the teachings of the Prophet of Islam (Mohammed).
Findings
For Muslims, ethics in business may only be obtained if one has complete faith in God. From the perspective of the Quranic revelations, it is apparent that Islam has given the solution for ethical problems and the religion of Islam teaches about good morals and ethics in a business life.
Research limitations/implications
The paper can be enhanced and extended further to examine the reality of business ethic conduct and social responsibility in Muslim countries.
Practical implications
The existence of irregularity in the spheres of honesty and transparency (i.e. information), and the existence of uncontrolled greed have led to the deterioration of morals in business dealings. The world has an opportunity to share information and learn.
Originality/value
The paper provides good information on the two issues of business ethics and social responsibility particularly from the view point of Islam. This is very important since the provided insights will add to the body of knowledge in those areas in business. The originality of the paper is based on the careful interpretation of some Quranic verses and the teachings of the Prophet Mohammed. It can be a good source of information for persons who have business dealings in Muslim countries.