Cultural Values and Risk and Benefit Perceptions: An Examination of the Mediating Roles of Trust and Knowledge Hubris

This thesis examines the process by which cultural value predispositions influence perceptions of risks and benefits of energy policies, specifically focusing on High Voltage Power Line (HVPL) installations and Hydraulic Fracturing (fracking). For HVPL installations I examine the role of (dis)trust in three groups associated with the HVPL debate – the government, environmental groups, and the energy industry – in determining risk and benefit perceptions of HVPL installation. Findings indicate that cultural value predispositions guide policy elites’ perceptions of trustworthiness. Further, this trust, in turn, guides perceptions of risks and benefits of HVPL installations, partially mediating the effects of cultural value predispositions on risk and benefit perceptions. For fracking, I introduce the concept of knowledge hubris and examine the cultural value-based origins of knowledge hubris and the resulting role knowledge hubris plays in predicting risk and benefit perceptions associated with fracking. Further, I compare the role of knowledge hubris in risk and benefit assessments between a sample of the general public and local policy elites. Results indicate that the origins of knowledge hubris are similar between local policy elites and the general public. However, the influence of this knowledge hubris on risk and benefit perceptions of fracking is different between the two groups

Mitigations to Reduce the Law of Unintended Consequences for Autonomy and Other Technological Advances

The United Nations states that Earths population is expected to reach just under 10 billion people (9.7) by the year 2050. To meet the demands of 10 billion people, governments, multinational corporations and global leaders are relying on autonomy and technological advances to augment and/or accommodate human efforts to meet the required needs of daily living. Genetically modified organisms (GMOs), Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR) gene-edited plants and cloning will be utilized to expand human food supply. Biomimetic implants are expected to improve life expectancy with 3D printed body parts. Human functioning will be extended with wearables and cybernetic implants continuing humanitys path toward transhumanism. Families will be strengthened with 3 parent households. Disease will surely be eradicated using the CRISPR-CAS9 genetic engineering revolution to design out undesirable human traits and to design in new capabilities. With autonomous cars, trucks and buses on our roads and on-demand autonomous aircraft delivering pizzas, medical prescriptions and groceries in the air and multi-planet vehicles traversing space, utopia will finally arrive! Or will it? All of these powerful, man-made, technological systems will experience unintended consequences with certainty. Instead of over-reacting with hysteria and fear, we should be seeking answers to the following questions - What skills are required to architect socially-healthy technological systems for 2050? What mindsets should we embody to ameliorate hubris syndrome and to build our future technological systems with deliberation, soberness and social responsibility

Learning, hubris and corporate serial acquisitions

Recent empirical research has shown that, from deal to deal, serial acquirers' cumulative abnormal returns (CAR) are declining. This has been most often attributed to CEOs hubris. We question this interpretation. Our theoretical analysis shows that (i) a declining CAR from deal to deal is not sufficient to reveal the presence of hubris, (ii) if CEOs are learning, economically motivated and rational, a declining CAR from deal to deal should be observed, (iii) predictions can be derived about the impact of learning and hubris on the time between successive deals and, finally, (iv) predictions about the CAR and about the time between successive deal trends lead to testable empirical hypotheses.

Auditor’s perceptions of CEOs overconfidence in Egypt : a quasi-experimental study

Purpose: This study aims to explore auditor’s perceptions of CEOs overconfidence in Egypt as one of the emerging countries. Design/methodology/approach: A quasi-experimental study is used on a sample comprises of 101 practicing auditors at public accounting firms in Egypt to assess (i) CEO overconfidence in a case scenario, (ii) the quality of earnings that would be provided by this overconfident CEO, and (iii) how overconfident CEO would be considered when they are assessing fraud risk, audit risk, audit effort and audit fees. Findings: The results suggest that not all the auditors in the sample were able to discover the same degree of overconfidence personal traits in a case scenario, and it was done by the sense, and they generally agree that overconfident CEO are more likely to provide lower earnings quality. Accordingly, they raise their assessment for audit fees as a result of an increase in fraud risk, audit risk, and audit effort. Practical implications: This study has significant implications for accounting and auditing professionals, market participants and regulators; where auditors should consider the overconfidence of the CEO during the audit process, market participants should consider managerial overconfidence when they are making investment decisions. Moreover, this study highlights the gap between auditing standards and the professional practice; which requires regulators to consider personal overconfidence traits as an indicator of financial reporting risk. Originality/value: This study helps in filling a gap in the literature; where auditor’s perceptions of CEOs overconfidence have not been fully investigated in emerging economies.peer-reviewe

Corporate serial acquisitions: An empirical test of the learning hypothesis

Recent empirical papers report a declining trend in the cumulative abnormal return (CAR) of acquirers during an M&A program. Does this necessarily imply that acquiring CEOs are infected by hubris and are not learning from previous mistakes? We first confirm the existence of this declining trend on average. However, we find a positive CAR trend for CEOs likely to be infected by hubris, which is significantly different from the negative trend found for CEOs who are more likely to be rational. We also explore the time between successive deals and find empirical evidence to suggest that many CEOs learn substantially during acquisition programs.

"Old Wine in a New Bottle: Subprime Mortgage Crisis—Causes and Consequences"

This paper seeks to explain the causes and consequences of the United States subprime mortgage crisis, and how this crisis has led to a generalized credit crunch in other financial sectors that ultimately affects the real economy. It postulates that, despite the recent financial innovations, the financial strategies—leveraging and financial risk mismatching—that led to the present crisis are similar to those found in the United States savings-and-loan debacle of the late 1980s and in the Asian financial crisis of the late 1990s. However, these strategies are based on market innovations that have heightened, not reduced, systemic risks and financial instability. They are as the title implies: old wine in a new bottle. Going beyond these financial practices, the underlying structural causes of the crisis are located in the loose monetary policies of central banks, deregulation, and excess liquidity in financial markets that is a consequence of the kind of economic growth that produces various imbalances—trade imbalances, financial sector imbalances, and wealth and income inequality. The consequences of excessive risk, moral hazards, and rolling bubbles are discussed.

A Risk Management Model for Merger and Acquisitio

In this paper, a merger and acquisition risk management model is proposed for considering risk factors in the merger and acquisition activities. The proposed model aims to maximize the probability of success in merger and acquisition activities by managing and reducing the associated risks. The modeling of the proposed merger and acquisition risk management model is described and illustrated in this paper. The illustration result shows that the proposed model can help to screen the best target company with minimum associated risks in the merger and acquisition activity