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As with previous crises, EU-wide risk-sharing has also been demanded during the Covid-19 pandemic. Yet, this crisis did not unfold in a political vacuum. Instead, public backing for EU-wide risk-sharing might have been informed by past crises experiences. Building on the idea of experienced reciprocal risk-sharing, we assume that the willingness to share risks is greater when a crisis-ridden country has also shown solidarity before, whereas readiness to cooperate may be mitigated by non-solidarity-oriented behaviour in the past. We test this assumption based on a survey experiment carried out in eleven EU countries in 2020. Our findings suggest that, when people are given information about whether another country has acted in solidarity in the past, this influences their willingness to support risk-sharing in the present. However, we also find evidence that respondents' preferences outside the experimental setting do not always match their country's recent history of reciprocal risk-sharing. [ABSTRACT FROM AUTHOR]

Low income households in agrarian developing economies face considerable livelihood risks, which have negative impacts on welfare. A growing literature focuses on internal constraints on development, which can negatively affect saving and investment behavior. Here I propose that internal constraints may also hinder risk management. Specifically, I present a theoretical model that explores how fairness preferences may create an internal constraint on risk sharing, particularly in a context of wealth inequality, and thereby also affect demand for formal insurance. To test this theory, I utilize a lab experiment, conducted in Ghana, to investigate the impact of wealth inequality on utilization of risk‐management tools, interpersonal risk sharing and formal insurance, and explore how fairness preferences may mediate this effect. I find that inequality reduces risk sharing and increases demand for insurance. Moreover, I find suggestive evidence that fairness preferences create an internal constraint on risk sharing under inequality. [ABSTRACT FROM AUTHOR]

While share pledging is a widespread leveraged financing practice in global stock markets, its potential impact on firms' exposure to market risk remains a topic of concern. In the context of the Chinese market, this study investigates the relationship between insiders' share pledging pressure and stock liquidity risk, with a particular focus on stock liquidity commonality. Using data from Chinese firms listed between 2009 and 2022, we find a positive correlation between heightened share pledging pressure and increased stock liquidity commonality. To precisely capture the margin call pressure arising from share pledging, we introduce an innovative method that considers both the price at which shares are pledged and their subsequent price dynamics. This relationship persists after addressing endogeneity concerns. Furthermore, we find that firms under significant share pledging pressure often resort to earnings manipulation, which exacerbates stock liquidity commonality. The findings underscore the significance of understanding the risks and impacts of share pledging in terms of liquidity risk. Insiders who utilize share pledging as a financing channel face a delicate balance between the benefits of expanded funding sources and the risks of losing control due to sustained stock price declines. This study provides valuable insights for investors, policymakers, and regulatory authorities in managing the potential liquidity risks associated with share pledging activities in the Chinese market. [ABSTRACT FROM AUTHOR]

In many developing countries, poor households face multiple shocks that disrupt their consumption patterns and lead to an increased welfare loss. Consequently, households adopt coping mechanisms that negatively impact their overall well-being. While social safety nets have been implemented to protect vulnerable households, it is essential to assess their overall effectiveness, both in terms of their impact and their potential to replace the harmful coping strategies adopted by households. Therefore, the primary objective of this study is to examine the impact of cash transfers provided by the Benazir Income Support Program (BISP) on the consumption patterns of households in Pakistan, with a particular emphasis on how these transfers provide consumption insurance to ultra-poor families encountered with idiosyncratic and covariate shocks. The study analyzes both food and non-food expenditure to gain insights into the effectiveness of the program in providing economic security to vulnerable households. Using three rounds of the BISP survey (2011–2013–2016), the empirical analysis is done by employing regression discontinuity design (RDD), difference-in-difference (DID) technique, and ordinary least squares method. Using the DID approach, we find that from 2011 to 2016 the overall food and non-food consumption of BISP beneficiaries have increased considerably and these results are highly significant as well. However, the estimates for RDD are not significant for the years 2013 and 2016. We also observed households' consumption behavior in the presence of shocks and found that in the wake of idiosyncratic shocks, poor households can protect their consumption through informal transfer mechanisms by securing loans from family, friends, and landlords. However, this mechanism collapses when households encounter covariate shocks. Furthermore, BISP cash transfers are primarily effective in mitigating the impact of employment loss, loss of livestock, and the rise in food prices and remain inadequate in providing insurance against major other shocks encountered by the targeted poor households. The results indicate that BISP has the potential to substitute informal coping strategies used by the poor, it requires substantial transfers to offer comprehensive consumption insurance to the poorest of the poor in Pakistan. [ABSTRACT FROM AUTHOR]

Objectives Methods Results Conclusions Our objective was to assess the numbers of eligible people living with HIV attending one HIV clinic and receiving statins, the factors increasing the likelihood of statin prescription, the knowledge and involvement of primary care in cardiovascular risk prevention in people living with HIV, and the barriers to and drivers of shared care between general practitioners (GPs) and an HIV centre.This was a retrospective case note review identifying cardiovascular risk, medications, and communication between the HIV clinic and GPs via an electronic survey of GPs identifying their knowledge about statin indications in people living with HIV.In total, 62% of GPs were unaware of the indication for statins in people living with HIV aged >40 years. A total of 33% of patients received statins, rising to 61% of patients with independent indications for statins. 92% of all statin prescriptions were provided by the GP. Statins were recommended in 25% of clinic letters but were not prescribed in 72% of these cases. There was discordance between antiretrovirals prescribed by the HIV clinic and those documented on the GP record in 60% of cases and in 40% of non‐antiretroviral medications.Our results indicate that GPs can engage people living with HIV in cardiovascular risk reduction measures but may not consider HIV a cardiovascular risk. Written communication alone is insufficient to improve safe patient care. Shared HIV care needs bidirectional shared medical records. Ongoing work needs to ensure that HIV is recognized as an independent cardiovascular risk factor. [ABSTRACT FROM AUTHOR]

Based on the perspective of the firm life cycle, this study constructs a complex bank-firm network system model under the influence of four technology financial policies (special funds, tax incentives, loan subsidies, and risk sharing) by depicting the behaviours of scientific innovation firms and banks. It examines the impact of the technology financial policies on the systemic risk of the bank-firm network system. Furthermore, this study examines the implementation effects of different technology financial policies at the three stages of start-up, growth, and maturity of scientific innovation firms. Based on the study, loan subsidies are the most effective of all four technology financial policies; however, the strength of the loan subsidies should be controlled in order to avoid excessive bank-firm credit exposure. Moreover, the study finds that policy support for scientific innovation firms is most effective during the start-up stage. [ABSTRACT FROM AUTHOR]

Introduction: The 21-point Brain Care Score (BCS) is a novel tool designed to motivate individuals and care providers to take action to reduce the risk of stroke and dementia by encouraging lifestyle changes. Given that late-life depression is increasingly recognized to share risk factors with stroke and dementia, and is an important clinical endpoint for brain health, we tested the hypothesis that a higher BCS is associated with a reduced incidence of future depression. Additionally, we examined its association with a brain health composite outcome comprising stroke, dementia, and late-life depression. Methods: The BCS was derived from the United Kingdom Biobank baseline evaluation in participants with complete data on BCS items. Associations of BCS with the risk of subsequent incident late-life depression and the composite brain health outcome were estimated using multivariable Cox proportional hazard models. These models were adjusted for age at baseline and sex assigned at birth. Results: A total of 363,323 participants were included in this analysis, with a median BCS at baseline of 12 (IQR: 11-14). There were 6,628 incident cases of late-life depression during a median follow-up period of 13 years. Each five-point increase in baseline BCS was associated with a 33% lower risk of incident late-life depression (95% CI: 29%-36%) and a 27% lower risk of the incident composite outcome (95% CI: 24%-30%). Discussion: These data further demonstrate the shared risk factors across depression, dementia, and stroke. The findings suggest that a higher BCS, indicative of healthier lifestyle choices, is significantly associated with a lower incidence of late-life depression and a composite brain health outcome. Additional validation of the BCS is warranted to assess the weighting of its components, its motivational aspects, and its acceptability and adaptability in routine clinical care worldwide. [ABSTRACT FROM AUTHOR]

Faster regulatory approval processes often fail to achieve faster patient access. We seek an approach, using performance-based risk-sharing arrangements, to address uncertainty for payers regarding the relative effectiveness and value for money of products launched through accelerated approval schemes. One important reason for risk sharing is to resolve differences of opinion between innovators and payers about a technology's underlying value. To date, there has been no formal attempt to set out the circumstances in which risk sharing can address these differences. We use a value of information framework to understand what a performance-based risk-sharing arrangements can, in principle, add to a reimbursement scheme, separating payer perspectives on cost-effectiveness and the value of research from those of the innovator. We find 16 scenarios, developing 5 rules to analyze these 16 scenarios, identifying cases in which risk sharing adds value for both parties. We find that risk sharing provides an improved solution in 9 out of 16 combinations of payer and innovator expectations about treatment outcome and the value of further research. Among our assumptions, who pays for research and scheme administration costs are key. Steps should be undertaken to make risk sharing more practical, ensuring that payers consider it an option. This requires additional costs to the health system falling on the innovator in an efficient way that aligns incentives for product development for global markets. Health systems benefits are earlier patient access to cost-effective treatments and payers with higher confidence of not wasting money. Innovators get greater returns while conducting research. • Accelerated regulatory approvals often fail to provide early access because of uncertainty about value. Performance-based risk-sharing arrangements (PBRSAs) have been used in some circumstances to achieve access, but many payers and innovators are resistant to using them. Value of Information approaches allow analysis of when risk sharing may help provide early access but, to date, have not addressed PBRSA use to resolve differences of opinion between innovators and payers about a technology's value. • We use a Value of Information framework to understand what a PBRSA can add to a reimbursement scheme, separating payer perspectives on cost-effectiveness and on the value of research from those of the innovator. We find 16 scenarios, developing 5 rules to analyze these 16 scenarios, identifying situations in which risk sharing adds value for both parties. We show that PBRSAs can address differences of opinion between payers and innovators about underlying value in 9 out of 16 scenarios. • Incentives should be aligned to make PBRSA choices efficient. Key requirements are that (1) innovators pay for both evidence generation costs and for the administration of PBRSAs, (2) prices could go up or down after evidence collection, and (3) innovators face penalties if they do not undertake and complete agreed research. Health systems benefits are earlier patient access to cost-effective treatments and payers having higher confidence of not wasting money. Innovators get greater returns while conducting research. [ABSTRACT FROM AUTHOR]

This study investigates how credit information sharing conditions debt financing to boost the profitability of 20 listed enterprises on the Ghana Stock Exchange between 2003 and 2013. We employ robust least squares and simultaneous bootstrapping models in a panel setting. Our findings show that the impact of debt financing on profitability increases when it is subject to information sharing and takes the shape of short, long, and total debts. In the worst-case situation, contingent debt financing reduces the negative impact of debt financing on profitability. Therefore, authorities must adopt laws and legislation that deepen, widen, and strengthen credit information sharing to offset the negative impact of information asymmetry on loan financing and business profitability. [ABSTRACT FROM AUTHOR]

Reading is a key gateway to learning, enabling independent access to a range of educational materials. Thus, reading difficulties leave a child particularly vulnerable to academic problems in later schooling and beyond. However, while there is good awareness of children with word reading difficulties within the education system, much less is known about the children who struggle to comprehend texts despite having adequate word reading skills. In this registered report, we investigated the later education and occupational outcomes of 947 children initially identified as having poor reading comprehension at 8–9 years from the Avon Longitudinal Study of Parents and Children, compared to peers not identified as having a specific reading difficulty (n = 4,516) and those with word reading weaknesses (n = 1,383). We observed that children with comprehension weaknesses (a) were less likely than typical readers to meet U.K. national educational targets as they progressed through education, with more marked differences for mathematics and science than English; (b) had poorer qualifications at the point of leaving compulsory education, which were comparable to children with word reading weaknesses; and (c) were the group at greatest risk of being out of employment, education and training at age 20. However, there was considerable variability in outcomes, with much of the risk shared with socio-demographic factors. The results address an important gap in knowledge regarding the functional consequences of reading comprehension difficulties in mid-childhood and inform discussions concerning the need for identification and targeted support in classroom settings. Educational Impact and Implications Statement: Some children struggle with reading comprehension beyond what would be expected based on their word reading skills, yet comparatively little targeted support is available for these children. In this study, we used a large U.K. sample to show that comprehension weaknesses are associated with poorer performance in national assessments at ages 10–11, 13–14, and 15–16 years, with outcomes comparable to children with word reading weaknesses. Children with comprehension weaknesses were also more likely to be out of education and employment at age 20, and much of this risk was shared with socio-demographic factors. The findings inform discussions over the need and nature of support required for reading comprehension weaknesses in the classroom. [ABSTRACT FROM AUTHOR]

Copyright of Shipin Kexue/ Food Science is the property of Food Science Editorial Department and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of NTU Management Review is the property of NTU Management Review and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

India's knowledge economy thrives on innovation, but financing such ventures requires alternatives to traditional tangible asset-based collateral. This paper explores the potential of intellectual property (IP) as a viable option. While challenges in valuation and enforcement exist, IP holds significant value. It is argued that IP acts as a two-pronged signal for lenders. Strong IP portfolios indicate a borrower's creditworthiness, while the potential loss of valuable IP discourages defaults. However, India's regulatory framework presents hurdles. Streamlining legal procedures, empowering financial institutions to assess IP value, and establishing centralised registries for recording security interests are crucial first steps. Risk mitigation strategies are equally important. Government-backed risk-sharing programmes and promoting IP insurance can incentivise banks and protect all parties. Finally, educating businesses about IP financing opportunities unlocks this avenue for securing funding. By addressing these challenges, India can create a robust environment for IP-based collateral, thereby fuelling economic growth and technological progress. [ABSTRACT FROM AUTHOR]

Many health insurance markets are organized by principles of regulated competition. Regulators of these markets typically apply risk equalization (aka risk adjustment) and risk sharing to mitigate risk selection. Risk equalization and risk sharing can have various positive and negative effects on efficiency and fairness. This paper provides a comprehensive framework for ex-ante evaluation of these effects. In a first step, we distinguish 22 potential effects. In a second step, we summarize and discuss quantitative measures used for evaluating risk equalization and risk sharing schemes in academic research. To underline the relevance of our work, we compare our framework with an existing framework that was previously used in the Dutch regulated health insurance market. We conclude that this framework is incomplete and uses inappropriate measures. To avoid suboptimal policy choices, we recommend policymakers (1) to consider the entire spectrum of potential effects and (2) to select their measures carefully. [ABSTRACT FROM AUTHOR]

With the increase in cell and gene therapy (CGT) clinical trials in recent years has come a subsequent increase in the number of contract development and manufacturing organizations (CDMOs). Successful transition from development and early-phase clinical trials to commercialization of a CGT product often depends on selecting the best-suited CDMO. However, many CGT companies are small biotech companies that lack expertise in the field or do not have experience selecting and transferring a process to a CDMO. Given the interest in this topic, a roundtable with CGT developers and CDMO members at the 2023 annual meeting of the International Society of Cell and Gene Therapy Paris discussed these critical aspects of product development, including technical expertise, risk sharing and timing of partnerships. Here, we'll analyze the considerations discussed by the panel and elaborate on other factors crucial for CGT development. [ABSTRACT FROM AUTHOR]

This study focuses on how consumer subsidy (COS) and manufacturer subsidy (MAS) influence a focal risk‐averse manufacturer's technology sharing, who balances between risk pooling effect and competition effect along with new entry for decision. When consumers' uncertain valuations are highly positively (or negatively) correlated for the manufacturers' products, the higher COS and the higher MAS can (or cannot) enhance the manufacturer's technology sharing because the risk pooling effect is strong (or weak), but the competition effect is weak (or strong). Only when the risk pooling effect dominates the competition effect, COS is more conducive than MAS to promoting technology sharing. [ABSTRACT FROM AUTHOR]

Special purpose acquisition companies (SPACs) are one of the most celebrated investment vehicles in recent years. Relative to traditional IPOs, SPACs are much more cash-strapped and speculative. Resultantly, the scope for SPACs remains sparse for certain segments of the financial system notwithstanding the SPAC euphoria surrounding the financial markets: one notable exception is Islamic banking and finance. The Islamic banking business model is based upon the ethical ontologies and epistemologies – informed by the divine sources of Quran and Sunnah: the Shariah – operating with the mandate to promote socio-economic justice through a fair redistribution of wealth while embargoing speculative trading or investments and adopting a risk-sharing model between economic agents. Unsurprisingly, – owing to the speculative nature of SPACs – the Islamic finance industry remains reluctant to participate in the SPAC-mania despite the frenzy engulfing global securities markets. This work addresses the misaligned incentives inherent in a conventional SPAC structure and proposes alternative SPAC structure terms i.e., the iSPAC, which potentially mitigates the noted misaligned incentives and offers less dilutive SPAC terms to shareholders. Specifically, iSPAC structure terms address the issues of speculation (gharar), information asymmetry, and transparency in the pre-IPO phase, which may lead to adverse selection and moral hazard. Equally, the proposed structure reconciles post-IPO operational and investment-related risks such as the treatment of proceeds, interest rate (riba), opportunity costs, and management costs in consort with unethical behavior i.e. cashing-out opportunities that may lead to uneven redistribution of wealth thereby, widening the socio-economic voids in the society. [ABSTRACT FROM AUTHOR]

This paper applies KMV modified model to construct a local governments' debt risk index by using the local governments' financial revenue and expenditure data and the data of Chinese A-share listed companies, and studies the relationship between local government debt risk and enterprise innovation. The results show that the increased risk of local government debt can encourage enterprises to increase R&D investment, which is more significant when the enterprises are politically connected, the provincial officers have a longer tenure, the provinces are more market-oriented, and the enterprises get more refunds of taxes. This paper provides empirical evidence for the state theory, which suggests that competition for political promotion among local officials can make the goal of personal political promotion of officials agree to intend to maximize social welfare. [ABSTRACT FROM AUTHOR]

Abstract Many health insurance markets are organized by principles of regulated competition. Regulators of these markets typically apply risk equalization (aka risk adjustment) and risk sharing to mitigate risk selection. Risk equalization and risk sharing can have various positive and negative effects on efficiency and fairness. This paper provides a comprehensive framework for ex-ante evaluation of these effects. In a first step, we distinguish 22 potential effects. In a second step, we summarize and discuss quantitative measures used for evaluating risk equalization and risk sharing schemes in academic research. To underline the relevance of our work, we compare our framework with an existing framework that was previously used in the Dutch regulated health insurance market. We conclude that this framework is incomplete and uses inappropriate measures. To avoid suboptimal policy choices, we recommend policymakers (1) to consider the entire spectrum of potential effects and (2) to select their measures carefully.

The application of blockchain technology solves the trust problem between core enterprises (CEs), small and medium-sized enterprises (SMEs), and commercial banks, facilitating CEs and commercial banks to provide guarantee for SMEs and finance them, respectively. This study considers a three-level supply chain composed of a manufacturer, a distributor, and a capital-constrained retailer, and explores the operational strategies of blockchain platform finance (BPF), a supply chain finance mode enabled by blockchain technology. First, optimal decision solutions are obtained through decision and parameter sensitivity analyses. Second, by comparing the BPF and SME independent finance (SIF) modes, we obtain the applicable BPF mode conditions; for instance, when the retailer's initial capital is low and the production cost is high, BPF is the better option for the manufacturer, distributor, and retailer compared to SIF. Third, we find that risk sharing improves the financing efficiency of the BPF mode. This study provides a theoretical basis for decision makers to implement blockchain supply chain finance at three levels: joint financing and operation decision-making, financing mode selection, and financing efficiency improvement. [ABSTRACT FROM AUTHOR]

Informal risk sharing within social networks and formal financial contracts both enable households to manage risk. We find that financial contracting reduces participation in social networks. Specifically, increased crop insurance usage decreased local religious adherence and congregation membership in agricultural communities. Our identification utilizes the Federal Crop Insurance Reform Act of 1994 that doubled crop insurance usage nationally within a year, although changes in usage varied across counties. Difference-in-difference and Spatial First Difference tests confirm that households substituted insurance for religiosity. This substitution was associated with reductions in crop diversification and crop yields, indicating an increase in moral hazard. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The hallmark of full risk sharing is that agents' marginal utilities of expenditure (MUEs) have a simple factor structure; a Pareto weight is divided by an aggregate price. Take logarithms and full risk-sharing can be easily tested using panel data with two-way fixed effects. The catch is that we don't directly observe MUEs, and must infer these using data on consumption expenditures. The standard approach to this inference problem is to assume some form of homothetic utility, in which case the MUE is a function of total expenditures and a single price index, and all demands have unit price elasticities. This approach works well when the shocks being tested affect agents' budgets without changing prices; i.e., when the shocks are idiosyncratic. But "covariate" shocks may change relative prices, in which case the standard risk-sharing tests which assume that no demands are inelastic will deliver apparently perverse results.What is the class of utility structures that allow one to test risk-sharing using only panel data on expenditures and two-way fixed effects, and does this class included non-homothetic preferences which are consistent with more realistic demand responses to changes in relative prices? We obtain this class, which happens to be semi-parametric and nests the usual homothetic specification, but which allows for highly flexible Engel curves, with $n$ parameters corresponding to the income elasticities of $n$ goods. We provide a simple algorithm to infer both these parameters and the agents' MUEs. We compute these using panel data from Uganda, and show that risk-sharing tests of covariate shocks using our computed MUEs deliver sensible results while the standard tests do not.

Economic suffering prompted by the Covid-19 pandemic, coming on the heels of earlier 2008 global-financial and 2015 migration crises, revived debate on citizen support for European fiscal integration policies. Such support can be expected to reflect not only individual-level characteristics but also the extent of crisis exposure in subnational regional contexts where individuals live and work. Unfortunately, existing studies of public support have said little about such regional contexts. This study hence explores how regional-level experience with 'polycrisis' affects support for EU fiscal capacities, combining regional-level crisis measures with a 2020 survey experiment on European citizens' preferences towards fiscal capacity instruments in 5 European countries (DE, ES, FR, IT, NL). This allows tests of whether individual support for various European fiscal capacities reflect regional differences in covid suffering, growth losses after the 2008 global financial crisis, and migration spikes from the 2015 migration crisis. We expect and find that citizens in regions more heavily impacted by the pandemic, financial crisis, and (albeit less so) migration crisis – measured separately and as a composite – tend to more readily support European fiscal integration capacity that is redistributive between countries, financed through progressive taxation, refrains from budgetary conditionality, and is lenient towards reform non-compliance. [ABSTRACT FROM AUTHOR]

The essence of credit guarantee financing (CGF) is the risk sharing between the guarantor and financial institution. Inspired by the case of the CGF of Evergrowing Bank, this study aims to explore the risk compensation strategies and guarantee decisions for guarantors under CGF and provide decision support for the efficient operation of the supply chain CGF. Considering three kinds of risk compensation contracts, namely cost-sharing, revenue-sharing, and quantity-flexibility, the Stackelberg game method is used to construct the supplier CGF model under the retailer's financial constraints. The results show that additional contract parameters, interest rate, debtor's initial capital, and implicit bankruptcy cost are the main factors affecting the credit guarantee coefficient decision. Besides, we find optimal additional contract parameters that can optimize the profits of supply chain members and complete the contract parameter design. The quantity-flexibility contract is the most effective strategy for the supplier to compensate for guarantee risk. However, the retailer's choice of additional contract depends on the initial capital or implicit bankruptcy cost. The main innovation of this study is that it endogenizes the credit guarantee decision and explores the details of the risk compensation contract. Further, the impact of implicit bankruptcy cost on CGF decision is also mentioned for the first time in supply chain finance. Our findings lead to recommendations for the optimal credit guarantee scheme and contract design of compensation for guarantee risk in the supply chain. [ABSTRACT FROM AUTHOR]

We argue that risk sharing motivates the bankwide structure of bonus pay. In the presence of financial frictions that make external financing costly, the optimal contract between shareholders and employees involves some degree of risk sharing whereby bonus pay partially absorbs negative earnings shocks. Using payroll data for |$1.26$| million employee-years in all functional divisions of Austrian, German, and Swiss banks, we uncover several empirical patterns in bonus pay that are difficult to rationalize exclusively with incentive theories of bonus pay but that support an important risk sharing motive. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Background: Rare diseases pose immense challenges for healthcare systems due to their low prevalence, associated disabilities, and attendant treatment costs. Advancements in gene therapy, such as treatments for Spinal Muscular Atrophy (SMA), have introduced novel therapeutic options, but the high costs, exemplified by Zolgensma® at US$2.1 million, present significant financial barriers. This scoping review aimed to compare the funding approaches for rare disease treatments across high-performing health systems in Australia, Singapore, South Korea, the United Kingdom (UK), and the United States (US), aiming to identify best practices and areas for future research. Methods: In accordance with the PRISMA-ScR guidelines and the methodological framework by Arksey and O'Malley and ensuing recommendations, a comprehensive search of electronic databases (Medline, EMBASE, and Cochrane) and grey literature from health department websites and leading national organizations dedicated to rare diseases in these countries was conducted. Countries selected for comparison were high-income countries with advanced economies and high-performing health systems: Australia, Singapore, South Korea, the UK, and the US. The inclusion criteria focused on studies detailing drug approval processes, reimbursement decisions and funding mechanisms, and published from 2010 to 2024. Results: Based on a thorough review of 18 published papers and grey literature, various strategies are employed by countries to balance budgetary constraints and access to rare disease treatments. Australia utilizes the Life Saving Drugs Program and risk-sharing agreements. Singapore depends on the Rare Disease Fund, which matches public donations. South Korea's National Health Insurance Service covers specific orphan drugs through risk-sharing agreements. The UK relies on the National Institute for Health and Care Excellence (NICE) to evaluate treatments for cost-effectiveness, supported by the Innovative Medicines Fund. In the US, a combination of federal and state programs, private insurance and non-profit support is used. Conclusion: Outcome-based risk-sharing agreements present a practical solution for managing the financial strain of costly treatments. These agreements tie payment to actual treatment efficacy, thereby distributing financial risk and promoting ongoing data collection. Countries should consider adopting and expanding these agreements to balance immediate expenses with long-term benefits, ultimately ensuring equitable access to crucial treatments for patients afflicted by rare diseases. [ABSTRACT FROM AUTHOR]

AbstractShared housing in the private rental sector (PRS), where people rent with non-family, is becoming more significant across many countries. However, from a housing justice lens, it is unclear whether housing policies and regulations based on normative understandings of households are equipped to effectively support shared housing renters. Through a case study of Australia, which operates on a ‘consumer protection’ model of rental regulation, we ask how current Australian rental regulations enable or restrict housing justice for people in shared housing in the PRS. We conduct a critical discourse analysis of consumer-oriented tenancy information published by Australian state governments and identify explicit or implicit risks in the text that may be experienced by shared housing renters. Results indicate that risks in relation to finance, eviction, and disputes are variously not acknowledged within the text or responded to with warning, guidance, or stated inability to help. We argue that the unfair distribution of risk in shared households, coupled with the severity of the consequences, constitutes a form of housing injustice. We suggest how the consumer protection framework of rental regulation could be amended to advance housing justice and assist shared housing renters. [ABSTRACT FROM AUTHOR]

This paper investigates an optimal reinsurance problem for an insurance company with self-exciting claims, where the insurer's historical claims affect the claim intensity itself. We focus on a claim-dependent proportional reinsurance contact, where the term "claim-dependent" signifies that the insurer's risk retention ratio is allowed to depend on claim size. The insurer aims to maximize the expected utility of terminal wealth. By utilizing the dynamic programming principle and verification theorem, we obtain the optimal reinsurance strategy and corresponding value function in closed-form from the Hamilton–Jacobi–Bellman equation under an exponential utility function. We show that the claim-dependent proportional reinsurance is optimal among all types of reinsurance under the exponential utility maximization criterion. In addition, we present several analytical properties and numerical examples of the derived optimal strategy and provide economic insights through analytical and numerical analyses. In particular, we show the optimal claim-dependent proportional reinsurance can be considered as a continuous approximation of the step-wise risk sharing rule between the insurer and the reinsurer. [ABSTRACT FROM AUTHOR]

Conspicuous consumption, specialised consumption of high visibility but without apparent economic benefit, is reducing investment in productive assets and thus hindering economic development in low-income countries. In previous research, the phenomenon was commonly explained by status-seeking and herding behaviour. Our study follows a novel angle in testing the role of risk sharing, assuming that investment into social status is perceived to increase access to informal credits in times of crises. We conduct a random-effects hurdle model along a lab-in-the-field experiment along a sample of 197 wheat farmers in Uzbekistan, a country characterised by high levels of risk and uncertainty. Within our experimental setup, both risk attitude and real-life risk management decision are found to be significant determinants of conspicuous consumption. Our findings support the notion of a complex decision-making process with risk sharing as one important motivator. Providing first empirical evidence on the topic, our findings have implications beyond our narrowly defined study case: We argue that strengthening options of formal risk-sharing tools might remove one of the motivators for conspicuous consumption; thus, it could improve the economic welfare of low-income households worldwide by allowing for more productive investment of scarce financial resources. [ABSTRACT FROM AUTHOR]

Centralized insurance can be found in both the private and public sectors. This paper provides a microeconomic study of the risk‐sharing mechanisms in these markets, where multiple policyholders interact with a centralized monopolistic insurer. With minimal assumptions on the risk preferences of the market participants, we characterize Pareto optimality in terms of the agents' risk positions and their assessment of the likelihoods associated with their loss tail events. We relate Pareto efficiency in this market to a naturally associated cooperative game. Based on our theoretical results, we then consider a model of flood insurance coverage via an illustrative example. The lessons drawn from our theoretical results and this example lead to important policy implications for the existing National Flood Insurance Program in the United States. [ABSTRACT FROM AUTHOR]

In risk-based auditing, data-driven analyses are often used to automatically detect process deficiencies. This introduces a challenge: the number of deficiencies is too large to inspect manually. Current approaches addressing this challenge neglect integrating the risk dimension or rely on auditors to manually integrate it. This study aims to increase the effectiveness of such data-driven analysis approaches by including the risk dimension when presenting process deficiencies for further inspection. We investigate how the deficiency type and the affected control activity are associated with perceived risk. We run a discrete choice experiment with 58 auditors interpreting deficiencies that occur in a procure-to-pay or an order-to-cash process and find that (1) deficiencies of type "missing" or deficiencies related to asset-decrementing activities are perceived as the riskiest, (2) the control activity contributes 75 percent of the risk perception, and (3) external and internal auditors share a similar risk perception. [ABSTRACT FROM AUTHOR]

Online mutual aid (MA) is a novel form of ex‐post risk sharing empowered by InsurTech to provide critical illness coverage without involving an insurer. In this paper, we first provide a rigorous examination of the underpinning theory and analyze MA model's cost‐effectiveness. In addition, we theoretically investigate the condition for MA's actuarial fairness among all participants. Our numerical illustration also shows that current MA plans lack the consideration of actuarial fairness as they differentiate members only by gender and age group of large bandwidths. Last, our empirical analysis confirms the existence of adverse selection due to the lack of actuarial fairness. [ABSTRACT FROM AUTHOR]

The escalating complexity and sophistication of cyber threats necessitate advanced solutions that not only counteract these threats but also proactively adapt to the evolving needs of diverse stakeholders involved in digital infrastructures, such as telecom operators, cloud service providers, and end-users in sectors like healthcare and finance. This research addresses a crucial gap by focusing on a systemic, AI-powered approach to stakeholder needs analysis in cybersecurity. By aligning closely with stakeholder requirements, the proposed framework aims to offer dynamic, responsive cybersecurity solutions that enhance the resilience of digital infrastructures against evolving cyber threats. This research systematically maps the landscape of stakeholder needs in cybersecurity across different sectors through qualitative methods like interviews and focus groups, supplemented by data from the CyberSecDome project's pilot cases and open calls. Requirements for an AI-driven framework are then formulated based on these data to identify patterns and predict stakeholder needs. The analysis reveals critical challenges faced by stakeholders, including limited threat intelligence sharing, insufficient automation in incident response, and regulatory hurdles related to data protection laws and evolving cybersecurity legislation. There is a strong interest in leveraging AI for enhanced intrusion detection, real-time threat intelligence sharing, and privacy-preserving information exchange. [ABSTRACT FROM AUTHOR]

Information security outsourcing has become an emerging trend in the operations of information security, but the relation between information assets of firms and attack modes of hackers have failed to be considered. Through building a game-theoretic model, this article analyzes security outsourcing of two firms who share their information resource with each other and are confronted with opportunistic attacks and targeted attacks. We find that in the case of security decisions in-house, the firms may obtain a lower expected cost and the hacker may derive a lower expected benefit under targeted attacks than under opportunistic attacks, even though targeted attacks are widely deemed to be more harmful to the firms. When outsourcing security operations to a MSSP (Managed Security Service Provider), we reveal that under targeted attacks the MSSP can reap a higher expected benefit and the hacker can still derive a lower expected benefit. Finally, we examine the effects of key security elements and find some interesting results. In particular, the MSSP may or may not benefit from the degree of resource sharing, and the hacker may suffer from its learning ability. [ABSTRACT FROM AUTHOR]

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This study investigates the distinctive modeling of regret utility when compared with common utility. I also introduce the interplay between common utility and regret utility. Using this model, I examine the differences in decision making, which encompasses issues such as risk sharing and principal–agent dilemmas. Regret utility is set so that its risk aversion shows common utility's prudence (i.e., downside risk aversion). This paper reveals, both qualitatively and quantitively and with a concrete model, that regret utility leads to a more balanced and optimal ratio of agent payouts to outputs compared with common utility, meaning when major outputs are kept by principal, there are relatively larger agent payouts, and when major outputs are kept by the agent, there are relatively smaller agent payouts. This means that regret makes a more balanced distribution, and regret utility is more conservative (not biased). In addition, preliminary empirical research was performed in which people were asked risk preference or averseness questions, and their risk averseness was calculated by using the CRRA (Constant Relative Risk Aversion) utility function. The regret condition leads to a more conservative attitude. Furthermore, the regret model can be used in other areas, like in conservative investment portfolio optimization. [ABSTRACT FROM AUTHOR]

In the psychological and sociological framework of risk, we establish a static and dynamic equilibrium model for risk‐sharing institutional evolution. Particularly, through a comparative study of marine insurance development in China and Europe, we address a wide set of research questions concerning why China and Europe relied on different social organizations for risk sharing. [ABSTRACT FROM AUTHOR]

We study a business cycle model of the international monetary system featuring a time-varying demand for safe dollar bonds, greater risk-bearing capacity in the United States than the rest of the world, and nominal rigidities. A flight to safety generates a dollar appreciation and decline in global output. Dollar bonds thus command a negative risk premium, and the United States holds a levered portfolio of capital financed in dollars. We quantify the effects of safety shocks and heterogeneity in risk-bearing capacity for global macroeconomic volatility, US external adjustment, and policy transmission, as of dollar swap lines. (JEL E32, E43, E44, E52, F44, G11, G15) [ABSTRACT FROM AUTHOR]

People often make less risky decisions for themselves than others. We examined how people allocated risks (i.e., determining the ratio of uncertain outcomes to certain outcomes) between themselves and others. We also investigated gain (vs. loss) domain and social value orientation as predictors of risk allocations. The results of three experiments demonstrated that participants were more likely to share their risks equally between themselves and others than distribute risk unequally. In the gain (vs. loss) domain, participants allocated fewer risks to themselves and more risks to the other person for unequal risk allocations. Compared to proselfs, prosocials were more likely to allocate risks equally. We also found stronger domain effects on unequal risk allocations for proselfs than for prosocials. Therefore, our findings clarify the effects of risk distribution, domain, and social value orientation on interpersonal allocation decisions and highlight equal risk distribution between oneself and others. [ABSTRACT FROM AUTHOR]

The inf-convolution of risk measures is directly related to risk sharing and general equilibrium, and it has attracted considerable attention in mathematical finance and insurance problems. However, the theory is restricted to finite sets of risk measures. This study extends the inf-convolution of risk measures in its convex-combination form to a countable (not necessarily finite) set of alternatives. The intuitive meaning of this approach is to represent a generalization of the current finite convex weights to the countable case. Subsequently, we extensively generalize known properties and results to this framework. Specifically, we investigate the preservation of properties, dual representations, optimal allocations, and self-convolution. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the risk-resistant role of environmental, social and governance (ESG) performance in the capital market, focusing on an organizational standpoint. Furthermore, it aims to offer management decision advice to companies seeking protection against stock market risks. Conclusions obtained through this research have the potential to enrich the economic consequences of ESG performance, provide practical implications for enhancing corporate ESG performance, improving corporate information quality and stabilizing capital market development. Design/methodology/approach: Based on the data of Chinese A-share listed companies from 2009 to 2020, this study examines the risk-resistant function of ESG performance in the capital market. The impact of ESG performance on management behavior is analyzed from the perspective of organizational management and the three mechanisms of pre-event, during the event and post-event. Findings: This paper demonstrates that companies that effectively implement ESG practices are capable of effectively mitigating risks associated with stock price crashes. Heterogeneity analysis reveals that the inhibitory effect of ESG performance on stock price crash risk is more pronounced in nonstate-owned enterprises and enterprises with higher levels of marketization. After controlling for issues such as endogeneity, the conclusions of this paper are still valid. The mechanism analysis indicates that ESG performance reduces the risk of stock price crash through three paths of organizational management: pre-event, during the event and post-event. That is, ESG performance plays the role of restraining managers' opportunistic behavior, reducing information asymmetry and boosting investor sentiment. Originality/value: This paper provides new insights into the relationship between ESG performance and stock price crash risk from an organizational management perspective. This study establishes three impact mechanisms (governance effect, information effect and insurance effect), offering a theoretical basis for strategic corporate decisions of risk management. Additionally, it comprehensively examines the contextual differences in the role of ESG performance, shedding light on the specific domains where ESG practices are influential. These findings offer valuable insights for promoting stable development in the capital market and fostering the healthy growth of the real economy. [ABSTRACT FROM AUTHOR]

Integrated project delivery (IPD) has gained significant attention as an effective alternative to traditional project delivery models. Profit distribution is a crucial aspect of IPD projects, influencing their overall success. This study aims to investigate the key factors impacting profit distribution to offer strategic guidance for project management practices. The study employs a comprehensive bibliometric analysis to establish an updated research framework in this domain. Through this analysis, 24 articles with highly relevant and extensively cited sources are identified for further examination. Grounded theory is subsequently applied to distill the findings. This process yields a foundational theoretical framework that delineates the factors influencing profit distribution in IPD projects, namely, contribution, resource-based input, effort level, and risk sharing. Additionally, a textual analysis of ten burst words is conducted to discern research trends and identify future areas of study. This research contributes to the existing literature by addressing gaps and providing a roadmap for future IPD investigations. A theoretical framework of influencing factors in profit distribution in IPD projects is developed based on the literature. The findings not only enhance understanding of profit distribution dynamics in IPD projects but also guide the implementation and optimization of IPD practices. [ABSTRACT FROM AUTHOR]

The asset side of Islamic banks has two different portfolios running side by side, namely risk-sharing (PLS) and non-risk sharing (non-PLS) financing. The segregation of PLS and non-PLS financing has gathered some attention recently owning to its relative importance for sustainable economic output. This study attempts to analyze the impact of decomposed Islamic financing modes (PLS and non-PLS) with a particular focus on their impact on real economic activity. In addition, we moderated the relationship with asset quality of aggregate Islamic banking sector. Quarterly data from 2014 to 2021 have been sourced from datasets of the Islamic financial service board (IFSB), the International Monetary Fund (IMF), World Bank, and Central banks' data streams. Eleven countries have been selected based on the highest local and global share in global Islamic financial assets. Panel data regression model has been used in this study. The findings indicate that PLS financing is a weaker driver to channelize funds. However, industrial production output is significantly affected by non-PLS financing. Further the results suggest, Islamic finance–output nexus found to have a stronger relationship in the presence of higher asset quality of Islamic banks. The results show that firms mostly rely on non-PLS financing, due to reduced asymmetry and higher transparency in non-PLS contracts compared to PLS modes. The results have implications for governing bodies of Islamic financial system in boosting risk-sharing contracts and firms to limit agency conflicts arising from fluctuating cost of financing. [ABSTRACT FROM AUTHOR]

We investigate the impact of political uncertainty on the relationship between foreign equity portfolio flow and the cost of capital. Using panel data from 40 countries from 2001 to 2016, our results show that the year before a national election is associated with a higher cost of capital. Further analyses show that the relationship between international equity portfolio flow and the cost of capital is sensitive to political uncertainty. In line with the institutional quality channel, we find that checks and balances interact with political uncertainty to reduce the negative effects of political uncertainty on the cost of capital. The results are consistent with the hypothesis that foreign investors strategically reduce their equity portfolio investment to the recipient country before a national election which reduces risk-sharing between domestic and foreign investors. [ABSTRACT FROM AUTHOR]