Interdependencies between Leverage and Capital Ratios in the Banking Sector of the Czech Republic

In this paper we discuss the implications of the Basel III requirements on the leverage ratio for the banking sector in the Czech Republic. We identify the potential binding constraints from regulatory limits and analyze the interactions among leverage and capital ratios over the country’s economic cycle (during the period 2007-2014). The historical data confirm stronger capital ratios of the banks and an overall solid leverage level with only 5% of the total historical observations being lower than the regulatory recommendations. By analyzing the components of ratios, we conclude that the banks are focusing more on the optimization of risk weighted assets. Strong co-movement patterns between leverage and assets point to the active management of leverage as a means of expanding and contracting the size of balance sheets and maximizing the utility of the capital. The analysis of correlation patterns among the variables indicates that the total assets (and exposure) in contrast to Tier 1 capital are the main contributors to the cyclical movements in the leverage. The leverage and the total assets also demonstrate a weak correlation with GDP, but a strong co-movement with loans to the private sector

Drama and discounting in the relational dynamics of corporate social responsibility

Employing theoretical resources from Transactional Analysis (TA) and drawing from interviews with managers dealing with social or environmental issues in their role, we explain how CSR activity provides a context for dramas in which actors may ignore, or discount aspects of self, others, and the contexts of their work as they maintain and reproduce the roles of Rescuers, Persecutors and Victims. In doing so, we add to knowledge about CSR by providing an explanation for how the contradictions of CSR are avoided in practice even when actors may be aware of them. Specifically, we theorise how CSR work can produce dramatic stories where adversity is apparently overcome, whilst little is actually achieved at the social level. We also add to the range of psychoanalytic tools used to account for organisational behaviours, emphasising how TA can explain the relational dynamics of CSR

Politicising government engagement with corporate social responsibility: “CSR” as an empty signifier

Governments are widely viewed by academics and practitioners (and society more generally) as the key societal actors who are capable of compelling businesses to practice corporate social responsibility (CSR). Arguably, such government involvement could be seen as a technocratic device for encouraging ethical business behaviour. In this paper, we offer a more politicised interpretation of government engagement with CSR where “CSR” is not a desired form of business conduct but an element of discourse that governments can deploy in structuring their relationships with other social actors. We build our argument through a historical analysis of government CSR discourse in the Russian Federation. Laclau and Mouffe's (Hegemony and socialist strategy: Towards a radical democratic politics,Verso Books, London, 1985) social theory of hegemony underpins our research. We find that “CSR” in the Russian government’s discourse served to legitimise its power over large businesses. Using this case, we contribute to wider academic debates by providing fresh empirical evidence that allows the development of critical evaluation tools in relation to governments’ engagement with “CSR”. We find that governments are capable of hijacking CSR for their own self-interested gain. We close the paper by reflecting on the merit of exploring the case of the Russian Federation. As a “non-core”, non-western exemplar, it provides a useful “mirror” with which to reflect on the more widely used test-bed of Western industrial democracies when scrutinising CSR. Based on our findings, we invite other scholars to adopt a more critical, politicised stance when researching the role of governments in relation to CSR in other parts of the world

Government intervention and financial sector development

Ye

Crafting the market for bottled water : a social praxeology approach

Purpose – This paper aims to account for the crafting of the constellation of brand and consumer values around an everyday product, that of bottled water. This paper situates the exponential growth of this market in its historical and cultural context, paying particular attention to the fostering of the “social conditions of possibility” for this product in the French market. The socio-historical context and the interplay of stakeholders to the respondents’ understanding and uses of bottled water, highlighting the importance of a range of factors that made this market and product resonate with their requirements, are linked. Design/methodology/approach – This account responds to the call for more engagement with social theory in marketing and consumer research (Brownlie and Hewer, 2011). It also connects with recent scholarly pleas for a displacement of the consumer from the center of our analytic attention (Askegaard and Linnet, 2011; Holt, 2012). It does so by using the social praxeology approach associated with Pierre Bourdieu to study the affirmation and sedimentation of the practices surrounding the consumption of bottled water in France. Findings – Influential institutional actors invoked discourses of purity, nature and health, juxtaposing these with the risks of tap water consumption. These were cemented by the influence of pediatricians who encouraged changes in family drinking habits which translated into long-term shifts in consumer behavior. By contrast to studies of different contexts, our respondents were greatly enamored by the materiality of the products themselves, using these in innovative ways for aesthetic pursuits. The social praxeology approach uncovers how brand and consumer value have been constructed in the French bottled water market. Research limitations/implications – This study is based on the historical development and growth of the market for bottled water in France. It would be a valuable exercise to investigate other contexts to determine whether the strategies of symbolic competition, especially the use of expert intermediaries rich in cultural capital that can be identified, are reflected elsewhere. Practical implications – Bottled water producers will have to confront the issue of the resource-intensiveness of their products. This feature stands in marked contrast to the symbolic capital and points of differentiation that producers have weaved around bottled water. Such contradictions will be exposed by actors in other fields (e.g. the environmental movement). This can be expected to have an impact on the consumption and viability of this market in future. Originality/value – This paper uses a philosophical framework – social praxeology – to chart the development, affirmation and exponential growth of the bottled water market. Via a combination of historical re-construction and empirical research, it highlights the interactive relationships between government, producers and consumers, uncovering brand and consumer value creation

Conversion of D-Fructose into Ethyl Lactate Over a Supported SnO₂–ZnO/Al₂O₃ Catalyst

The study is directed to the search of a simple effective catalyst for ethyl lactate obtained from fructose as renewable raw material. A series of SnO2-containing oxides prepared by impregnation of alumina were characterized by several techniques in order to determine their textural and acid-base properties. The transformation of a 13% fructose solution in 98% ethanol over SnO2/Al2O3 catalysts using autoclave rotated with 60 rpm at 160 °C for 3 h was studied. It was found that doping SnO2/Al2O3 samples with ZnO improves selectivity towards ethyl lactate. The supported SnO2-ZnO/Al2O3 catalyst provides 100% fructose conversion with 55% yield of ethyl lactate at 160 °C. A possible scheme of fructose transformation into ethyl lactate on L-acid IVSn4+ sites is discussed