bluuebunny/crossref_metadata_2025 huggingface dataset:
The ‘Unbearable Lightness’ of the Economic Approach to Economic Behavior in the Social Setting: Rational Action and the Sociology of the Economy
Authors: Zafirovski Milan
Published: March 2003

This article entails endeavours to properly conceive the theoretical‐methodoÃlogical relations between sociology of the economy or economic sociology and the economic approach to human behaviour or rational action theory. These endeavors are induced by recent proposals for an economic approach to economic sociology and other conflations between the two disciplines. Such proposals exemplify the tendency of rational action theorists to dissolve economic (and all) sociology into their universalist ‘theory of everything’. Many economic sociologists display a bona fide attitude toward such extensions of the economic approach albeit these can be essentially incongruous with a sociological perspective on the economy as advanced by their discipline. The article allows for the possibility that the economic approach to economic sociology is unsustainable in epistemological terms. This would imply epistemologically non‐rational grounds for the attraction of economic sociologists to the economic approach to human behaviour.
Genetically Based Handicap
Authors: Holland Alan
Published: March 2003

It is unclear what we should make of a policy designed to ‘eradicate’ genetically based handicap, and in particular whether it constitutes discrimination against people with a genetic handicap. After brief reference to the legal position, four arguments are examined which purport to justify differential treatment of handicapped lives either before conception or before birth: the argument from genetic ‘error’, the argument from parental responsibility, the argument from social consequences and the argument from impersonal harm. Weaknesses are detected in each of these arguments, and the conclusion is drawn that, although differential treatment of handicapped lives is sometimes justified, there are some circumstances in which it does amount to discrimination.
The Origin and End of Modernity
Authors: Trainor Brian
Published: March 2003

In this article, I suggest that post‐modernism is in essence a return, under radically different circumstances and with a cultural inheritance from the modernist era (especially the ‘modernist’ principle of freedom of the individual), to a kind of (post‐modernist) medievalism. The view that the ‘trend of our times’ is towards a ‘post‐modern medievalism’ is based mainly upon a consideration of the decline of the nation‐state, the replacement of ‘absolute’ with a kind of ‘moderated’ national sovereignty and the fact that the nations and regional assemblies of Europe are beginning to look increasingly like the duchies and baronies of feudal Europe.
Killing and Relevantly Similarly Letting Die
Authors: Davson‐Galle Peter
Published: March 2003

Winston Nesbitt has argued that the usual examples appealed to as supporting the view that killing is no worse than letting die are misleading in that the comparison cases are not set up properly to tap our intuitions. Making various adjustments to the cases he judges killing to be intuitively worse than letting die and suggests that such a result is meta‐ethically appropriate to one view of the point of ethics. I contest each of these claims.
The Missing Link between Virtue Theory and Business Ethics
Authors: Morse John
Published: March 2003

In arguing against the view that the ethical standards for business are separate from normal interpersonal standards, virtue theory has been applied to business ethics in a limited manner. Previous virtue theorists have argued that this separation need not occur because the virtues for succeeding in business are congruent with civic and personal virtues. However, they have neglected the fact that virtue theory stresses that virtues are formed to fulfil certain desires, ends, and purposes of the person. Since ends are formed within a community, business and corporations should view themselves as members of the community which contributes to the ethical development of its individuals. Hence, I argue that business cannot have a separate standard of ethical behaviour than that of its community, because its goals are means which are subordinate to the ultimate goal of individual and community flourishing.
What Kinds of People Should We Create?
Authors: Hudson James
Published: March 2003

The advent of genetic engineering will give people the power to design the members of the succeeding generation, and thus will render practical the issue how such a power ought to be exercised. Here I address that issue in a general way. I point out that the aim of making future people better adapted to the modern social environment is implicitly circular, since the natures of the people themselves will determine the nature of the social environment. I claimthat the human property the enhancement of which would do most to enrich experience is intelligence; accordingly increased intelligence should be a primary aim of genetic designers. The tendency to feel pain should be attenuated, as positive motivation is substituted for negative (to some extent). People should be designed so as to be motivated more by reason than by any non‐rational drives (though rational motivation may still involve pleasure andpain). The sex drive, having outlived its usefulness, will probably be replaced by some other source of pleasure. As a side effect of these changes in people, the arts and social sociences will be transformed beyond recognition. [1]
How to Argue Against Active Euthanasia
Authors: Boonin David
Published: March 2003

Most arguments against active euthanasia, as do most arguments in applied ethics generally, take place within the framework of what can broadly be referred to as a modern, as opposed to an ancient, approach to moral theory. In this paper, I argue that this fact works to the disadvantage of opponents of active euthanasia, and that if there is a successful argument against active euthanasia, it will be of the latter sort. In Part I, I attempt to clarify thedistinction between modern and ancient approaches with which I am concerned. In Part II, I attempt to show that any argument against active euthanasia that is of the first sort is bound to fail. In Part III, I propose an argument against active euthanasia of the second sort that I believe has a better chance for success. In Part IV, I consider some objections that can be raised against this argument and attempt to show how they can be overcome.
Embryos, Individuals, and Persons: An Argument Against Embryo Creation and Research
Authors: Tollefsen Christopher
Published: March 2003

One strategy for arguing that it should be legally permissible to create human embryos, or to use of spare human embryos, for scientific research purposes involves the claim that such embryos cannot be persons because they are not human individuals while twinning may yet take place. Being a human individual is considered to be by most people a necessary condition for being a human person. I argue first that such an argument against the personhood of embryos must be rationally conclusive if their destruction in public places such as laboratories is to be countenanced. I base this argument on a popular understanding of the role that the notion of privacy plays in abortion law. I then argue that such arguments against personhood are not rationally conclusive. The claim that the early embryos is not a human individual is not nearly as obvious as some assert.
Boy Trouble: Some Problems Resulting from ‘Gendered’ Representation of Glasgow’s Culture in the Education of Women Artists and Designers
Authors: Patrick Adele
Published: March 2003

This essay is written as Glasgow celebrates its (unilaterally ‐ nominated ) year as UK City of Visual Arts and anticipates its year as UK City of Design and Architecture in 1999. In it I will suggest that women's participation in art and design (education) in Glasgow can be read as both problematic and political, pioneering and yet historically and currently contingent on ‘binary oppositions’
Grounds for Design: The Improvement of School and College Grounds
Authors: Ker Margeret
Published: March 2003

A number of national initiatives have encouraged the development of school and college grounds as an improved resource for recreational and educational purposes. This report outlines art and design activities which have been taking place at St Andrew's College, promoting interaction with the immediate environment and encouraging the use and improvement of existing resources by students, staff and visitors. It also provides examples of work carried out in partnership with artists, architects and industry and how this has assisted liaison with schools in the process of change through the development of their grounds. It concludes that our future lies in encouraging a greater concern for and a deeper understanding of nature through design education, therefore, it is essential that young children have stimulating outdoor environments in which to grow and learn
Modernism and Postmodernism in Contemporary Korean Art: Implications for Art Education Reform
Authors: Mason Rachel , Park Jeong‐Ae
Published: March 2003

This paper reports the findings of research into cross‐cultural influences on Korean contemporary art and the artists’ aesthetic and cultural values and beliefs. Findings were that predominant Western influences during the Korean modern period have been American‐Abstract Expressionism and Minimalism, but that these trends have been acculturated rather than assimilated; that Korean Modern Art continues to dominate the Korean fine art world since it is practised by very established artists and master‐craftsment; and the work of the younger less‐established artists who are absorbing postmodern values, is more representational and eclectic stylistically, and sets out to convey messages and meanings about social problems in contemporary Korean life. The growing concern with Korean cultural identity is interpreted, in part, as a response to the demands of the international art market, but is represented through the artists’ use of traditional Korean content and processes, or pursuit of Korean metaphysical/philosophical ideals.
What do Children Think about the Drawing Process?
Authors: Pillar Analice Dutra
Published: March 2003

This study presents young children’s hypotheses about the process of drawing, i.e., it deals with the construction of knowledge in drawing from the child’s perspective. Using both a longitudinal and an exploratory design, the author followed the processes of production and ‘reading’ of drawings developed by six young children, aged 2 to 6, for three years. The author relates constructive studies about children’s drawings with their ideas in each stage of drawing. The results indicate that children conceive of drawing as an object in which action and thought are related.
Forms of Life and the Life of Forms: Clay Figurines in Women’s Art
Authors: Cruz Angelica Lima
Published: March 2003

From the end of the XIX century until the second half of the XX century, there is a ‘hidden‐stream’ world of women’s popular art in traditional clay work of the Barcelos region – Galegos parishes. At a time when mainstream aesthetic values in fine art are undergoing fundamental change, research into this tradition could contribute to the current status of knowledge of aesthetic value in general, particularly with regard to evaluating the aesthetic in hidden‐stream art forms, and the reasons for the negative value attached to female art production. This paper documents and records visually clay figurines of these women artisans, determines how the ceramic tradition is passed on in the community, and reveals the artisans’ views of its meaning, significance, and aesthetic worth. From a feminist perspective, the research will inquire into the aesthetic and other concerns of the women artisans and ascertain their audiences and their reasons for valuing or not valuing the work. Male and female responses to the products of a traditionally female ceramic occupation will be compared. There is a need to document processes of informal and continuous training made available for those who might wish to participate in the future, and to determine the extent to which this heritage is dependent on gender divisions in Portuguese society undergoing a process of change.
Practice‐based Doctorates and Questions of Academic Legitimacy
Authors: Candlin Fiona
Published: March 2003

Over the last six years there has been a massive increase in the number of students studying for practice‐based doctorates in Art and Design. It is now possible to do a practice‐based PhD in over forty departments, although what is expected from doctoral students varies considerably across institutions. In 1997 the United Kingdom Council for Graduate Education (UKCGE) addressed the variance between practice‐based doctorates in the report Practice‐Based Doctoratesin the Creative and Performing Arts and Design. This paper examines the recommendations made by the report and asks to what extent does it acknowledge art as a legitimate research practice within the university. The UKCGE report recommends that all practice‐based PhDs have a substantial theoretical and
A Toe in the Water: Introducing Exhibitions on Video with Young People at the Whitechapel Art Gallery
Authors: Herne Steve , McLaren Janice
Published: March 2003

This paper focuses on the production of introductory videos for gallery exhibitions through collaborations between young people, professional artists and gallery staff. Fundamental to this process is the quality of encounter young people involved have with original works of art, artists and gallery staff. Their enquiries about the work on show and critical response is valued by the gallery and its diverse audiences for its unique and individual perspective. Students are invited to explore and familiarise themselves with the work prior to articulating their ideas and views on video within the exhibition spaces. Recorded footage is then edited to a professional standard and shown in the gallery during the run of each show. The videos are also posted out to local schools, marketed as peer‐led introductions to each exhibition, in order to offer up questions and ideas to students and teachers prior to their gallery visit. A commissioned, external evaluation of the videos, against their stated aims and objectives, was undertaken by Goldsmiths College's Art in Education team.
Women in Art: The Last Taboo
Authors: Hopper Gill
Published: March 2003

The intention of this paper is to explore traditions and current trends in art with particular reference to the depiction of female experiences such as pregnancy, abortion, birth and motherhood. The inclusion and exclusion of such images in art history over time and across societies reflects prevailing attitudes, whilst affirming various stereotypical and gendered constructions developed and sustained within those societies. These constructions in turn relate to criteria defined by class, access to education and notions of femininity.

Work by artists which feature aspects of these experiences (particularly childbirth), is considered taboo by many in a Western society which continues to render the essentially female experience as private, invisible and stigmitised and confuses the natural with the sexual.

The work of undergraduate art students, inspired by the artwork of women artists who make explicit or are influenced by essentially female experiences, is discussed and attempts made to connect their work to the issues outlined.
How Teachers Use Computers in Instructional Practice ‐ Four Examples in American Schools
Authors: Wang Li Yan
Published: March 2003

As the age of electronic images began, rapid social change and the proliferation of new technologies immediately affected almost all aspects of our lives. Especially in the art world, computers are making new and unique aesthetic experiences possible and changing the way in which art is conceived, created, and perceived. A new world has opened for artists, educators, and their students. Technology development seems to require the teaching profession to make changes at an unprecedented rate. However, despite the predictions made by enthusiastic technologists in the early 1980s, computer technology has not revolutionised education. With limited examples of how computer technologies are currently used in American K‐12 art classrooms, art teachers at times were unfairly blamed for not embracing new technology. This paper challenges the assumption that teachers are reluctant to change or to embrace the new possibilities of integrating computers in art teaching and learning. It calls for more and better research that is grounded in real art classroom settings. By providing experiences of four Ohio K‐12 art educators, this paper aims to offer contextual information and useful insights on strategies for the productive integration of computers into art teaching in contrast to the body of literature that speculates upon how computers should or might be useful in teaching art.
Boundary Conditions for Ratios with Positively Distributed Components
Authors: McLeay Stuart
Published: March 2003

This paper describes the statistical properties of the ratio of two positively distributed variables where the numerator is a component of the denominator and where, therefore, the ratio has implicit boundaries of 0 and 1. Johnson's bounded distribution (the SB) is suggested as a model for ratios of this type, and is derived in this paper as a ratio of lognormal variates. An empirical analysis of bounded financial ratios of UK companies confirms the goodness of fit.
The Cost of Bond Covenant Restrictions on the Disposition of Assets
Authors: Pashley Mary M. , Krishnaswamy C.R. , Gilbert Erika W.
Published: March 2003

The cost of bond covenants restricting the dispositions of assets are examined in this study. Using an option pricing framework, it is shown that the cost of compliance could be high if restrictions are placed on the sale of common stock holdings. Similar results can be obtained by using a simple cash flow approach when calculating the effect on restrictions on the sale of depreciable assets. These costs somewhat offset the tax advantages of debt.
From T‐Bills to Stocks: Seasonal Anomalies Revisited
Authors: Chen Carl R. , Chan Anthony
Published: March 2003

This paper employed eleven data series which consist of stocks, bonds, bills, equity premiums, term premiums, and various default premiums to investigate whether January seasonality reported in existing literature is robust across different states of the economy as this has important trading implications. For the periods 1926–1990, small stocks, small stock premiums, low grade bonds, and default premiums (spread between high grade, low grade and government bonds) reveal January seasonality and that the seasonality is robust across different states of the economy except for low grade bond returns and default premiums. January seasonality for low grade bond returns and low grade bond default premiums are primarily driven by results found during periods of economic expansion. Overall, January seasonality is more evident during the economic expansion periods although the magnitude of default premiums is larger during periods of economic contraction. Furthermore, prior findings of strong summer equity returns are primarily driven by the results found during the periods of economic contraction. It is also found that equity returns are generally higher during periods of economic expansion.
A Comparative Analysis of the Market Model and the Multiple‐Factor Market Model
Authors: Conover Teresa L.
Published: March 2003

This study uses the framework of Patell (1979) to determine whether a multiple‐factor market model or a traditional market model is more effective for information content studies of multinational firms. The multiple‐factor market model is found to be superior to the traditional market model. Researchers wishing to test for information content for events with long event windows should consider using multiple factor models rather than the traditional market model, as it will increase the power of the test.
International Stock Market Efficiency and Integration: A Study of Eighteen Nations
Authors: Chan Kam C. , Gup Benton E. , Pan Ming‐Shiun
Published: March 2003

This study examines the relationships among stock prices in eighteen national stock markets by using unit root and cointegration tests for the period 1961‐‐92. All the markets were analyzed individually and collectively in regions to test for market efficiency. The results from unit root tests suggest that the world equity markets are weak‐form efficient. The cointegration test results show that there are only a small number of significant cointegrating vectors over the last three decades. However, the number of significant cointegrating vectors increases after the October 1987 stock market crash, a result that is consistent with the contagion effect.
The Effect of Federal Reserve Accounting Rules on the Equilibrium Level of Overnight Repo Rates
Authors: Griffiths Mark D. , Winters Drew B.
Published: March 2003

This paper addresses whether Federal Reserve Board accounting requirements are sufficiently pervasive to create regularities in government overnight repurchase agreement (repo) rates. US bank settlement regulations allow overnight government repos as substitutes for Federal (Fed) funds. We find that overnight government repos exhibit rate changes and variance regularities consistent with regularities identified in the Fed funds market, which have been shown to result directly from the Federal Reserve regulations and accounting policies governing the US bank settlement process. Thus, we conclude that the overnight government repo rates are influenced in a similar manner by regulatory rules. However, since the rate changes are not large economically, the influence of regulatory accounting practices does not violate the premise of an efficient market.
Estimation of Internal Rate of Return Under Nonsteady Conditions
Authors: Laitinen Erkki K.
Published: March 2003

This study presents a method to estimate the IRR (internal rate of return) from published financial statement data under nonsteady conditions. The IRR is allowed to systematically change over time. The method provides an estimate for the current profitability of periodic total expenditure, its rate of change, and the firm‐level profitability. Four competing steady and nonsteady statistical models are evaluated by simulation showing that a restricted nonsteady model may give the most reliable estimates. The model is applied to Finnish firms to illustrate how to use the model in practice. Three samples of publicly traded and nontraded firms are considered.
Compliance Costs of Corporate Income Taxation in Singapore
Authors: Ariff Ismail Loh Mohamed, Zubaidah, Alfred L.C.
Published: March 2003

This study is the second in a series of studies investigating tax compliance costs incurred by public‐listed companies. We found evidence of a size effect which is a predominant finding of similar studies. The size effect was more pronounced when absolute measures of costs were used than when a relative measure, cost/sales turnover, was used. Additional evidence was found of limited success relating to the IRAS's moves to simplify the tax system. Specifically, only large companies with sales turnover exceeding $500m benefited and considerably reduced their overall compliance costs. Most of the decrease was a result of the computational component of compliance costs. This resulted in the gap in absolute costs narrowing between Group 3 and any of the other categories of companies. There was also greater reliance on external professionals, the smaller the company. Views elicited indicate that more could be done to increase accessibility to IRAS publications for Group 1 and Group 2 companies.
Further Evidence on the Determinants of Secured versus Unsecured Loans
Authors: Chen Sheng‐Syan , Yeo Gillian H. H. , Ho Kim Wai
Published: March 2003

Using a unique data set collected from financial statements of all Singapore listed firms from 1983 to 1991, we provide international evidence on the determinants of the amount of secured loans as a fraction of total secured and unsecured loans. This data set comprises a much wider range of firms than most previous studies. We show that consistent with the agency‐cost hypothesis, firms with more growth opportunities use more secured loans. This is in contrast to the opposite result reported in Barclay and Smith (1995b) who measure secured debt as a fraction of total long‐term fixed claims. We also find strong support for the hypothesis that smaller firms use more secured loans. In contrast, Leeth and Scott (1989), using survey data on small firms, find an insignificant firm size effect. Finally, we show that the use of secured loans is positively related to asset riskiness and loan size, and is negatively related to asset specificity. Firm quality has no explanatory power.
Exploiting International Stock Market Correlations with Open‐end International Mutual Funds
Authors: Bhargava Rahul , Bose Ann , Dubofsky David A.
Published: March 2003

Investors can exploit the correlations between international stock markets by trading no‐load, open‐end, international mutual funds. These investors in effect cheat passive investors because they buy the mutual funds at their net asset values, which do not reflect information released during the US trading day. The strategy we examine yields an annual rate of return 800 basis points above the S&P500, over a period of almost eight years.
Evidence on Risk Changes Around Audit Qualification and Qualification Withdrawal Announcements
Authors: Fargher Neil L. , Wilkins Michael S.
Published: March 2003

Qualifications to an audit report may provide the basis for an auditor's claim that the user was warned about an unusual risk. If audit qualifications highlight changes in firm risk that are material, then the announcement of a qualification should be associated with an increase in the risk of the affected firm. In this paper, we test this proposition. Our initial tests do not detect a shift in systematic risk around qualification announcements; however, subsequent analysis shows that firms announcing recurring material uncertainties have higher levels of systematic risk than firms announcing initial qualifications. Furthermore, we document a significant decrease in systematic risk for firms publicly announcing qualification withdrawals. These results are consistent with announcements of qualification withdrawals providing more timely information to capital market participants than announcements of qualification issuances, which are more likely to have been pre‐empted by alternative sources of information. Our findings also indicate that unsystematic, or firm‐specific, risk changes significantly around qualification and withdrawal announcement dates. Although systematic risk is of primary importance to investors, information regarding company‐specific risk may assist other outside users (i.e., lenders, regulators, employees, rating agencies, etc.) in evaluating a given firm's ability to satisfy its existing contracts. In total, this paper provides evidence that may be useful to many external parties regarding the association between the material uncertainties that are highlighted in audit reports and changes in firm risk.
Restrictions on Short‐Selling and Spot‐Futures Dynamics
Authors: Fung Joseph K. W. , Jiang Li
Published: March 2003

Recent lifting of short‐sales constraints in Hong Kong provides an important opportunity to examine whether such restrictions affect the dynamic relationship between index futures and its underlying spot. The results show that the two prices have become more closely integrated without the restrictions. Adjustments to long‐run equilibrium are accomplished more through index futures; however, the spot index has played an increasingly more important role in the lead‐lag relationship after the deregulation. Market conditions, spot trading volumes, relative futures trading volumes and institutional participation also affect the dynamic relationship.
Penetrating the Book‐to‐Market Black Box: The R&D Effect
Authors: Lev Baruch , Sougiannis Theodore
Published: March 2003

The book‐to‐market (BM) phenomenon – the positive association between BM and subsequent returns – looms large among capital market enigmas. Economic theory postulates that the difference between market and book values of companies reflects their future abnormal profits. We capture these abnormal profits for a large sample of science‐based companies by estimating the value of the off‐balance sheet investment generating those profits – the value of R&D capital – and show empirically: (i) Firms’ R&D capital is associated with their subsequent stock returns. (ii) For R&D intensive firms, this ‘R&D effect’ subsumes the ‘book‐to‐market effect.’ (iii) The association between R&D and subsequent returns appears to result from an extra‐market risk factor inherent in R&D, rather than from stock mispricing. We thus provide an explanation for the book‐to‐market phenomenon of R&D companies.
The Accuracy and Incremental Information Content of Audit Reports in Predicting Bankruptcy
Authors: Lennox Clive S.
Published: March 2003

A series of corporate failures in which auditors failed to warn about impending bankruptcy led to widespread criticism of the UK auditing profession during the last recession. For a sample of 976 quoted companies (1987–94), this paper shows that there are two reasons why audit reports were not accurate or informative indicators of bankruptcy. First, audit reports poorly reflected publicly available information about the probability of bankruptcy. Secondly, strong persistence in audit reporting reduced the accuracy of audit reports
Audit Quality and Auditor Size: An Evaluation of Reputation and Deep Pockets Hypotheses
Authors: Lennox Clive S.
Published: March 2003

Empirical studies have shown that large auditors are more accurate than small auditors. The reputation hypothesis states that large auditors have more incentive to be accurate because an inaccurate report may lead to a loss of client‐specific rents (DeAngelo, 1981). The deep pockets hypothesis states that large auditors should be more accurate because they have greater wealth at risk from litigation (Dye, 1993). This paper presents evidence on the relationship between auditor size and litigation and on the market shares of criticised and uncriticised auditors – the findings give greater support to the deep pockets hypothesis than the reputation hypothesis.
Free Cash Flow, Golden Parachutes, and the Discipline of Takeover Activity
Authors: Subramaniam Chandra , Daley Lane A.
Published: March 2003

We conjecture that golden parachutes are initiated when the agency cost of free cash flow is most severe. We examine the relation between golden parachutes and investment levels in firms that have been successfully acquired. Our results support these three conclusions. First, target firms overinvest prior to an acquisition when golden parachutes are present. Second, the acquirers of targets with golden parachutes reduce investment subsequent to the takeover. Third, the reversal in capital investment by the combined firm is correlated with the magnitude of the target’s pre‐acquisition overinvestment. The latter findings indicate the takeover acts as a disciplining mechanism with the acquirer reversing the target overinvestment subsequent to the acquisition
The Predictive Ability of Direct Method Cash Flow Information
Authors: Krishnan Gopal V. , Largay III James A.
Published: March 2003

This research examines the predictive ability of direct method cash flow information for firms that use the direct method in their cash flow statements. We use cross sectional and pooled time series regressions to predict operating cash flow data and assess relative predictive ability. Principal findings are: (1) past period direct method cash flow data predict future operating cash flow better than indirect method cash flow data; (2) past period direct method gross operating cash flows predict future net operating cash flow better than past period net operating cash flow; (3) measurement error exists in estimates of direct method operating cash flows from other financial statement data; (4) past operating cash flows predict future operating cash flows better than earnings and accruals.
The Weekend Effect, ‘Reverse’ Weekend Effect, and Firm Size
Authors: Brusa Jorge , Liu Pu , Schulman Craig
Published: March 2003

In this paper, we find a ‘reverse%rsquo; weekend effect — whereby returns for Monday are positive and significantly greater than returns for the preceding Friday — in recent data for major stock indexes. We also find that, while a weak weekend effect exists in portfolios of smaller firms, the effect begins to diminish and weak ‘reverse’ weekend effect begins to appear in medium size firms. The ‘reverse’ weekend effect becomes strong and statistically significant in portfolios of large firms. The detection of a ‘reverse’ weekend effect in portfolios of large firms is a new finding in the literature.
The Value Relevance of Oil and Gas Disclosures: An Assessment of the Market's Perception of Firms' Effort and Ability to Discover Reserves
Authors: Berry Kevin T. , Wright Charlotte J.
Published: March 2003

The purpose of this study is to determine whether supplemental reserve disclosures contain value‐relevant information by examining the extent to which they convey information regarding firms' effort and ability to discover reserves. Using Ohlson's (1995) model as a framework, two hypotheses were developed and tested. The empirical results indicate that both effort and ability to discover reserves are significant in explaining the market value of full cost firms. However, only effort is significant (marginally) in explaining the market value of successful efforts firms.
The Valuation of Deferred Taxation: Evidence from the UK Partial Provision Approach
Authors: Citron David B.
Published: March 2003

The UK provides a virtually unique environment in which to examine the information content of the partial provision approach to deferred tax accounting. In addition this issue is of particular interest to UK accounting standard setters in the light of trends towards international accounting standard harmonisation. Taking the total amount of deferred taxation to be equal to the partial balance sheet provision plus the potential portion appearing in the notes, this study tests the relationship between these various deferred tax components and market value. It also examines the economic rationale for the potential portion. The study is based on 1,512 company/years from the period 1989–1991. It finds that, while the full amount of deferred taxation is not valued by the market as a liability, there is evidence of the partial balance sheet provision being so valued. There is also evidence that the potential portion is positively related to market value, consistent with its proxying for information about future growth. This result is supported by the positive relation between the potential portion and measures of future capital spending, indicative of an underlying economic rationale for this deferred taxation component. From a regulatory perspective, the study concludes that the main benefit of the partial provision approach is that the balance sheet amount constitutes a reasonably reliable measure of the portion likely to crystallise as a liability, information that would be lost were only the full amount to be disclosed.
Relative Performance Evaluation of Mutual Funds: A Non‐Parametric Approach
Authors: Choi Yoon K. , Murthi B.P.S.
Published: March 2003

We propose an alternative mutual fund performance index which addresses the benchmark problem and controls for economies of scale in managing mutual funds. We advance a new concept of ‘return‐cost’ efficiency as another important element in evaluating portfolio management, in addition to the mean‐variance efficiency concept. Our index based on a non‐parametric estimation is shown to be similar to the Sharpe index with multiple slopes (or factors). We have shown that all fund categories, except income funds, have similar average efficiency scores after controlling for economies of scale. Most funds operate in increasing returns to scale and seem to be successful in holding mean‐variance efficient portfolios, but unsuccessful in allocating transaction costs efficiently, evidenced by excessive turnovers and loads.
The Impact of Receiving Debtor‐in‐Possession Financing on the Probability of Successful Emergence and Time Spent Under Chapter 11 Bankruptcy
Authors: Elayan Fayez A. , Meyer Thomas O.
Published: March 2003

The ability to obtain financing is a critical element in attempting to successfully reorganise a firm which has declared Chapter 11 bankruptcy. Debtor‐in‐possession (DIP) financing has become an increasingly popular method in recent years. This paper examines whether receiving DIP financing is related to successful reorganisations and a shortened duration under Chapter 11 bankruptcy proceedings. This study finds that there is an increase in realised returns to equity at the announcement of DIP loan agreements which is positive and statistically significant. It is also found that DIP‐financed firms have a reduced probability of liquidation, and shorter time spent under bankruptcy proceedings.
Underwriter Spread, Underwriter Reputation, and IPO Underpricing: A Simultaneous Equation Analysis
Authors: Chen Carl R. , Mohan Nancy J.
Published: March 2003

This paper studies the relationships between underwriter reputation, underwriter spread, and IPO underpricing. We consider the information content of underwriter spread and find that it conveys information pertinent to IPO quality. Because underwriter spread is endogenous, underpricing and underwriter spread are jointly determined in a simultaneous equation system. Also, we examine the IPO market for evidence of segmentation, and our results suggest some market segmentation. Underwriter spread impacts initial underpricing for a group of medium‐reputation underwriters, while underpricing affects underwriter spread for groups of low‐ and high‐reputation underwriters. Consequently, high‐risk IPOs may not be priced the same way as low‐risk IPOs. We attribute this finding to regulation, competition, and/or market segmentation.
The Timing of Asset Sales: Evidence of Earnings Management?
Authors: Poitras Geoffrey , Wilkins Trevor , Kwan Yoke Shang
Published: March 2003

This paper presents empirical evidence from a sample of publicly traded Singaporean firms on the question: to what extent do firms manage earnings through the timing of asset sales? Previous studies have focused on accounting motives behind asset sales, ignoring the need to also consider economic motives. Some empirical evidence is provided to support the hypothesis that managers of firms with decreasing net earnings–per–share smooth earnings upwards using asset sales.
Accounting for Option–based Compensation: The Economic Cost Approach
Authors: Harter Charles I. , Harikumar T.
Published: March 2003

The intrinsic value approach amortizes over the life of the option, the difference between the stock price on the date of the grant and the exercise price of the option. The fair market value approach amortizes over the life of the option, the market value of stock options on the date of the grant. These approaches do not reflect the changes in the option–based compensation cost after the grant date. This paper proposes an economic cost approach that not only adjusts for the changes in the value of the options during its life but also records the issuance of the stock at fair market value on the exercise date.
National Strategies in the Integration Dilemma: An Adaptation Approach
Authors: Petersen Nikolaj
Published: March 2003

The article attempts to fill a lacuna in integration theory by developing a theory of national integration policy. It argues that integrating states face an integration dilemma, which they handle by various coping strategies. The article applies adaptation theory to explore these strategies and the general policy modes in which they are embedded. It argues that balancing, i.e. a ‘give and take’ approach, is the most likely policy mode, but that other defensive or offensive strategies may also be used. The argument is illustrated by an analysis of Denmark’s integration policy.
Trading Places: Industrial Specialization in the European Union
Authors: Brülhart Marius
Published: March 2003

This article examines the location of manufacturing industries in the European Union. It draws on intra‐industry trade measures for 1961–90 and on sectoral employment data by countries and regions. The analysis of employment data suggests that EU industry has become increasingly localized in the 1980s. Increasing‐returns industries are strongly concentrated at the economic core of the EU and display low levels of intra‐industry trade. High‐tech industries are also strongly localized, but show no centre‐periphery gradient and no specific pattern of intra‐industry trade. The main potential for future specialization appears to remain in sectors sensitive to labour costs, which are still relatively dispersed and have high levels of intra‐industry trade. Employment in these industries is shifting towards the EU periphery. ‘Neoclassical’ determinants of international specialization are thus likely to dominate the ongoing adjustment process in EU manufacturing.
Alice in Euroland
Authors: Buiter Willem H.
Published: March 2003

The article contains a detailed critique of the common currency arrangements of the Economic and Monetary Union, embodied in the laws and emerging procedural arrangements that govern the actions of its key institutions: the European Central Bank and the European System of Central Banks. The main message here is, ‘Great idea, shame about the execution’. A number of improvements are then proposed. Some of these require amending the Treaty, including an end to the rule that each EMU member’s national central bank has a seat on the Governing Council or the removal of the power of the Council of Ministers to give ‘general orientations’ for exchange rate policy. Others, notably in the areas of accountability, openness and transparency, could be implemented immediately, including publication of voting records, minutes and the inflation forecast. Improved arrangements are also advocated for the co‐ordination of monetary and fiscal policy. And the article calls for a European Parliament that can both bark and bite.
Harmful Tax Competition in the EU: Policy Narratives and Advocacy Coalitions
Authors: Radaelli Claudio M.
Published: March 2003

This article investigates the dynamics of the European Union (EU) direct tax policy process by drawing attention to the political power of policy narratives in the context of the advocacy coalition framework. The narrative of harmful tax competition has been a political instrument for rekindling interest in a neglected policy area. Narratives do not operate in a political vacuum, however. Forum politics and the evolution of the policy environment have facilitated the emergence of harmful tax competition as main paradigm in EU direct tax policy. By representing itself not as a component of an advocacy coalition, but as a forum for intergovernmental deliberation, the Commission has curbed adversarial politics and created the preconditions for the adoption of tax proposals. The conclusions discuss the theoretical implications for the advocacy coalition framework.
Quota Hopping: The Common Fisheries Policy Between States and Markets
Authors: Lequesne Christian
Published: March 2003

The representation of European fishermen is still predominantly linked to national and local communities. The Common Fisheries Policy (CFP), set up in 1970 to regulate ‘European’ fisheries has integrated this representation in its main rules. From the 1980s onwards, this territorial logic of the CFP has been challenged by free market rules. In particular, the freedom of establishment and the free movement of capital have enabled EU shipowners to purchase vessels and to use national quotas in other EU countries. British fishermen have called this phenomenon ‘quota hopping’. As a case study, quota hopping illustrates the contradictions which exist in the EU between the territorial logic of an economic sector and the process of deterritorialization induced by liberal market norms. The mobilization of local fishing communities and of national governments against the changes which the EC market has brought about are not without effect. States have to cope with economic actors – the quota hoppers – who are increasingly capable of bypassing protective national policies by using the Community's rules of law.
Legislative Behaviour and Party Competition in the European Parliament: An Application of Nominate to the EU
Authors: Hix Simon
Published: March 2003

This article looks at the voting behaviour of Members of the European Parliament in the first year of the 1999–2004 European Parliament. The research applies the Nominate scaling method (developed to map voting in the US Congress) to the 1,031 ‘roll‐call votes’ in the EP in this period. This method enables us to locate each MEP in a multi‐dimensional policy space, and to plot a ‘cutting line’ for each vote. From this information we find that legislative behaviour in the EP is mainly along left—right lines, transnational party group affiliation is more important than national affiliation for determining how MEPs vote, different majority‐commanding coalitions form on different issues, and the difference between the simple majority and absolute majority rules has no effect on the voting behaviour of the two main party groups.
European Defence and the Changing Politics of the European Union: Hanging Together or Hanging Separately?
Authors: Howorth Jolyon
Published: March 2003

This article assesses the implications of the common European security and defence policy (CESDP) for shifts in both the politics and the policy‐making procedures of the European Union. It analyses the emerging dynamics of the new institutional structures of CESDP launched in 2000 (COPS, EUMC, EUMS, HR‐CFSP) and in particular the tensions between national capitals and the process of ‘Brusselization’ in the definition and formulation of European foreign and security policy. It argues that, in the field of crisis management, the requirements of rapid decision‐making and efficient implementation will increasingly favour Brussels as the locus of policy formulation. This process will be enhanced by the growing role in CESDP of military officials and of defence ministries, which will take primary responsibility for the shape and remit of the nascent European Rapid Reaction Force (ERRF). The article also assesses the problems facing EU governments in selling CESDP to their publics. This involves the construction of a discourse which, both cognitively and normatively, can persuade electorates coming from very different security cultures of the necessity and appropriateness of the project. It also requires governments, sooner or later, to make the case for increased defence spending.
The Europeanization of Refugee Policies: Normative Challenges and Institutional Legacies
Authors: Lavenex Sandra
Published: March 2003

Under the Treaty of Amsterdam, and in response to the experience of the Kosovo refugee crisis, the establishment of a Common European Asylum System has become a priority in the European Union. This project constitutes a major departure from the former transgovernmental mode of co‐operation in asylum matters and addresses a normative question embedded in national constitutions and international notions of human rights. In this article I examine the institutional and normative challenges facing the integration of this highly political policy field by highlighting the contradictions inherent in domestic reforms and the Europeanization of refugee policy.