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Long-term Nature (long-term + nature)
Selected AbstractsCREATING VALUE IN PENSION PLANS (OR, GENTLEMEN PREFER BONDS)JOURNAL OF APPLIED CORPORATE FINANCE, Issue 4 2003Jeremy Gold Pension funds are typically one-half to two-thirds invested in equities because equities are expected to outperform other financial assets over the long term, and the long-term nature of pension fund liabilities seems well suited to absorbing any short-term return volatility. What's more, U.S. GAAP currently makes it possible to take credit in advance for the higher anticipated earnings on equity investments without acknowledging their inherent risk. But by allowing the higher expected returns from stocks to reduce a company's current pension expenses, the accounting treatment conflicts with some very basic principles of finance (in particular, the idea that investors must earn higher returns on riskier investments just to "break even"), conceals systematic biases in the actuarial analysis, and gives managers considerable latitude to manipulate the bottom line. The authors suggest a startlingly different approach. They argue that pension assets should be invested entirely in duration-matched debt instruments for two reasons: (1) to capture the full tax benefits of pre-funding their pension obligations and (2) to improve overall corporate risk profiles by converting general stock market risk into firm-specific operating risk, where corporate managers should have a comparative advantage and can generate real value. Investing exclusively in bonds would take better advantage of the tax-exempt status of pension plans and greatly reduce fund management costs, while at the same time helping o shore up fund quality and sharpening corporate executives' focus on their real operating assets. [source] The experiences and perceived changes of Chinese ex-mental patients attending a holistic psychiatric rehabilitation programme: a qualitative studyJOURNAL OF PSYCHIATRIC & MENTAL HEALTH NURSING, Issue 6 2008A. L. LUK The paper reports a study on the subjective experiences and perceived personal changes of Chinese ex-mental patients attending a psychiatric holistic rehabilitation programme. The programme adopted a self-help group approach in which holistic aspects of physical, psycho-social and spiritual needs are emphasized. There are different rehabilitation programmes for chronic mental patients. However, spiritual element is not consciously included in most of these programmes. Furthermore, few studies document the changes of participants attending psychiatric rehabilitation adopting self-help and holistic care principles. A qualitative approach using an in-depth interview was adopted. A total of 20 members from the programme, which was about one-sixth of all the regular group members were recruited. All interviews were audiotaped and transcribed. Data were coded, categorized and developed to different themes using content analysis. Totally, there were 52 themes developed from the data. However, only 13 themes on experiences in the group and nine themes on the perceived personal changes were reported. By attending the programme, participants had positive feelings and gained many positive learning opportunities when interacting with peers. Interacting with group counsellors was also very beneficial to them. Though there were only some improvements physically, there were clear perceived positive changes in the psychological, social and spiritual dimensions. These findings are consistent with those found in the quantitative measures reported previously. The subjective experiences of the participants were positive and they perceived positive personal changes after joining the group. The findings support the effectiveness of the long-term nature of self-help group. Furthermore, the holistic programme helps members rediscover meaning and purpose of life and the religious practices in the group can be regarded to be a protective factor to stress not only to those believers but also to the non-believers. [source] PRICING IN AN INCOMPLETE MARKET WITH AN AFFINE TERM STRUCTUREMATHEMATICAL FINANCE, Issue 3 2004Virginia R. Young We apply the principle of equivalent utility to calculate the indifference price of the writer of a contingent claim in an incomplete market. To recognize the long-term nature of many such claims, we allow the short rate to be random in such a way that the term structure is affine. We also consider a general diffusion process for the risky stock (index) in our market. In a complete market setting, the resulting indifference price is the same as the one obtained by no-arbitrage arguments. We also show how to compute indifference prices for two types of contingent claims in an incomplete market, in the case for which the utility function is exponential. The first is a catastrophe risk bond that pays a fixed amount at a given time if a catastrophe does not occur before that time. The second is equity-indexed term life insurance which pays a death benefit that is a function of the short rate and stock price at the random time of the death of the insured. Because we assume that the occurrence of the catastrophe or the death of the insured is independent of the financial market, the markets for the catastrophe risk bond and the equity-indexed life insurance are incomplete. [source] Resilience of Native Plant Community Following Manual Control of Invasive Cinchona pubescens in GalápagosRESTORATION ECOLOGY, Issue 2010Heinke Jäger As invasive plant species are a major driver of change on oceanic islands, their control is an important challenge for restoration ecology. The post-control recovery of native vegetation is crucial for the treatments to be considered successful, but few studies have evaluated the effects of control measures on both target and non-target species. To investigate the efficiency of manual control of Cinchona pubescens and its impacts on the sub-tropical highland vegetation of Santa Cruz Island, Galápagos, vegetation was sampled before and up to two years after control was carried out in permanent sampling plots. Manual control significantly reduced Cinchona density. Due to regeneration from the seed or bud bank, follow-up control is required, however, for long-term success. Despite heavy disturbance from tree uprooting, herbaceous angiosperms were little affected by the control actions, whereas dominant fern species declined in cover initially. Most native, endemic, and other introduced species regained their pre-control levels of cover 2 years after control; some species even exceeded them. The total number of species significantly increased over the study period, as did species diversity. The native highland vegetation appeared to be resilient, recovering to a level probably more characteristic of the pre-invasion state without human intervention after Cinchona control. However, some introduced species seemed to have been facilitated by the control actions, namely Stachys agraria and Rubus niveus. Further monitoring is needed to confirm the long-term nature of vegetation change in the area. [source] |