bluuebunny/crossref_metadata_2025 huggingface dataset:
School Achievement and Adult Qualifications among Adoptees: A Longitudinal Study
Authors: Maughan Barbara , Collishaw Stephan , Pickles Andrew
Published: July 2003

Data from the National Child Development study (NCDS) were used to examine predictors of attainment among adoptees, nonadopted children from similar birth circumstances, and other members of this national birth cohort. Adoptees performed more positively than nonadopted children from similar birth circumstances on childhood tests of reading, mathematics, and general ability, and retained this advantage in school‐leaving and later adult qualifications. In addition to family SES and material circumstances, measures of the educational environment of the home and of parental interest in education emerged as central predictors of these variations. Further analyses suggested possible differences in the mode of operation of these variables between boys and girls, and at different stages of young people's educational careers.
Family Contexts, Parental Behaviour, and Personality Profiles of Children and Adolescents with Prader‐Willi, Fragile‐X, or Williams Syndrome
Authors: Lieshout Cornelis F. M. van , De Meyer Ronald E. , Curfs Leopold M. G. , Fryns Jean‐Pierre
Published: July 2003

The personality profiles for youths with Prader‐Willi, fragile‐X, or Williams syndrome were compared to three matched groups attending regular schools. Using the California Child Q‐Set (CCQ), both of the parents of the 39 children with Prader‐Willi syndrome, 32 boys with fragile‐X syndrome, 28 children with Williams syndrome, and children in the comparison groups provided independent personality descriptions in terms of the Big Five personality factors of Extraversion, Agreeableness, Conscientiousness, Emotional Stability, and Openness, along with Motor Activity and Irritability. Specific personality phenotypes for each of the three syndrome groups were found to be differentially related to parental behaviours (i.e. control and anger) and family contexts (i.e. experienced family stress, marital conflict, and parental consistency).
Psychopathology among Offspring of Parents with Substance Abuse and/or Anxiety Disorders: A High–risk Study
Authors: Merikangas Kathleen R. , Dierker Lisa C. , Szatmari Peter
Published: July 2003

This paper reports the results of a high–risk study of children under age 18 of parents who served as probands in a family study of comorbidity of substance abuse and anxiety disorders. There was a strong degree of specificity of familial aggregation of both the anxiety disorders and substance disorders. Rates of conduct disorder and depression were elevated among offspring of all affected parents. Inclusion of co‐parent disorders in the evaluation of familial transmission in the present study strengthened the findings regarding the specificity of transmission of the anxiety disorders and the links between both parental substance abuse and antisocial personality with child conduct disorder.
Parental Care and Intrusiveness as Predictors of the Abilities‐Achievement Gap in Adolescence
Authors: Feldman Ruth , Guttfreund Daniel , Yerushalmi Hannoch
Published: July 2003

In this study we examined relations between adolescents’ perception of parental care and intrusiveness and the abilities‐achievement gap. Cognitive abilities and academic achievement were assessed for 200 Israeli 10th graders. Representations of maternal and paternal care and intrusiveness and externalizing and internalizing symptoms were self‐reported. Gender differences were found for the abilities‐achievement gap. Boys’ achievement in mathematics and language was significantly lower than could be expected from abilities in these domains. Representations of maternal care predicted achievement while aptitude and socioemotional symptoms were controlled and moderated the relations of abilities and achievement. Paternal representations were unrelated to abilities or achievement. Among boys, maternal intrusiveness had a unique contribution to the prediction of achievement, above and beyond abilities, socioemotional symptoms, and maternal care. The relevance of the findings to cognitive and attachment perspectives on adolescent achievement is discussed.
Belief Term Development in Children with Autism, Asperger Syndrome, Specific Language Impairment, and Normal Development: Links to Theory of Mind Development
Authors: Ziatas Kathryn , Durkin Kevin , Pratt Chris
Published: July 2003

This study examined the relationship between the development of theory of mind and the development of the belief terms think, know, and guess. Children with autism and Asperger syndrome, matched to children with specific language impairment and normal development, completed false belief, belief term comprehension, and belief term expression tasks. The autistic group's performance on the false belief, belief term comprehension, and belief term expression tasks was significantly poorer than that of the Asperger, language impaired, and normal groups. Across groups an association was found between false belief and belief term performance. Results support a growing body of literature demonstrating links between the development of theory of mind and communicative competence.
‘Safer on the battlefield than in the city’: England, the ‘sweating sickness’, and the continent
Authors: Flood John L.
Published: July 2003

Although there were several outbreaks of the ‘sweating sickness’ (Sudor anglicus) in England between 1485 and 1551, only in 1529 did the disease spread far into the continent. In that year it had a devastating impact, spreading rapidly throughout Germany and thence into Scandinavia and the Baltic area, as well as into the Low Countries, Switzerland, and Austria. This study surveys the effect of the disease in Germany, and in particular draws attention to the astonishing speed with which the medical profession and the book trade there reacted to the crisis, which contrasts markedly with the apparent sluggishness of the response by English physicians and publishers. Nevertheless, it seems that it was the long English experience of the disease that eventually taught the Germans how to deal with it effectively; it is possible that the Reformer Robert Barnes (1495–1540), then in Lübeck, played a role in this. (pp. 147–176)
Taken into custody: girls and convent guardianship in Renaissance Florence
Authors: Strocchia Sharon T.
Published: July 2003

This study examines the widespread practice of placing girls in the temporary care of convents in Renaissance Florence, a practice called serbanza. During the turbulent years from 1480 to 1530, guardianship became one of the most important social services offered by female religious communities, which sheltered girls in increasing numbers. Serbanza was the major form of extrafamilial care for young girls of the middling and artisan classes, as well as for the vulnerable rich, before the advent of large‐scale custodial institutions in the later sixteenth century. Based on extensive archival records, this study documents how patterns of guardianship changed in response to political turmoil and concerns over female honour. I argue that convent guardianship formed part of the institutional and experiential foundation of female culture that cut across lines of neighbourhood and class, and introduced girls to a distinctive kind of constructed community. Boarding girls on a regular basis also raised important issues for internal monastic governance and ecclesiastical supervision. Nuns balanced the financial and social benefits of guardianship against the disruption of monastic routines and the disapproval of clerical officials. These tensions were resolved only by the reorganization of convent life and the development of new custodial institutions under Cosimo I. (pp. 177–200)
Mothers, sisters, and daughters: girls and conservatory guardianship in late Renaissance Florence1
Authors: Terpstra Nicholas
Published: July 2003

From 1540 to 1591, Florentines established six shelters for orphaned and abandoned girls. These came to be called ‘conservatories’ in light of their aim of conserving the girls’ virginity and honour, and were distinct from orphanages, which were reserved for needy boys. Conservatories run by men were mandated by the state and operated on the model of local hospitals. Those run by women originated in the religious and charitable drive of a group, and initially operated on the model of widows’ communities, without a formal organizational structure. Women had a distinct style of governance, but it did not outlast the generation of founders. Political and ecclesiastical forces turned one of the women's communities into a more formally organized conservatory under male administration and turned the other two into convents. (pp. 201–229)
The poetry of patronage: Bronzino and the Medici
Authors: Parker Deborah
Published: July 2003

This study examines Bronzino's lyric poems to the Medici. It focuses on the three canzoni which the painter wrote to gain readmission to the Accademia Fiorentina in 1566 and the laments he wrote on the deaths of Eleonora di Toledo and her two sons, Giovanni and Garzia. Particular attention is paid to an examination of the metaphors of rule employed by Bronzino in these paeons to this patrons. Just like his portraits of Cosimo I de’ Medici and his family, these poems are embellished glorifications. Few rulers exploited the use of art as instruments of statecraft more aggressively than Cosimo. In both his art and poetry, Bronzino served these ends magnificently. (pp. 230–245)
The resolution of a paradox: Alexandre de Pontaymeri's response to the Querelle des femmes
Authors: Carr Richard A.
Published: July 2003

The Querelle des femmes was ultimately the victim of its own virulent antagonism. While humanism may have instilled a fresh vigour into the medieval polemic by uncovering new evidence culled from the Ancients and the Church Fathers, as well as from medical and legal sources, such arguments, far from convincing and converting, only strengthened uncompromising attitudes and soon lost the lustre of their novelty. Clearly the debate could not be resolved, if resolution were indeed to be sought, through the further accumulation of examples, but only by a re‐examination and reinterpretation of the evidence. This process of re‐evaluating historical and contemporary myth and fact suggests that the Renaissance version of the querelle is far from being merely a tedious repetition of familiar assertions. Jean de Marconville, for example, accepts the irrefutable arguments of both feminists and anti‐feminists, but by examining them from a new perspective, he is able to marvel at both ‘la bonte’ and ‘la mauvaisete’ of women. At the end of the sixteenth century, Alexandre de Pontaymeri would offer another solution to the long‐standing impasse by invalidating one of the principal methods of argumentation long utilized by the detractors of women. Through a revisionist view of history, Pontaymeri's Paradoxe apologique (1594) purports to resolve the querelle and to establish at last woman's rightful role. (pp. 246–256)
The temple of reading: architectonic metaphor in Rabelais
Authors: Posner David M.
Published: July 2003

This essay examines Rabelais's uses of architectural metaphor and imagery to guide his readers towards sound interpretation, while fending off those readers unwilling or unable to read in a properly charitable spirit. Rabelais simultaneously imitates and parodies classical, biblical, and patristic metaphors of ædificatio, and in so doing seeks to build a community of interpreters that will find the true senses of his text. The comic or parodic aspects of the text are, for Rabelais, inseparable from the hermeneutic act, and are essential both to accurate reading and to a recognition of the limits of any possible interpretation. (pp. 257–274)
The Role of Resource Access, Market Considerations, and the Nature of Innovation in Pursuit of Standards in the New Product Development Process
Authors: Sahay Arvind , Riley Debra
Published: July 2003

Standards influence new product development (NPD) in high‐technology markets. However, existing work on standards has focused exclusively on one aspect of standards—compatibility standards. This article has the following goals. First, we delineate the concept of customer interface standards as distinct from compatibility standards. This distinction is important from a product development and technology adoption perspective. Second, we propose and show that antecedent factors may motivate a firm differently about the emphasis that the firm should put on a type of standard (compatibility or customer interface) that it follows. For example, we propose that appropriability regime affects pursuit of customer interface standards and compatibility standards differently. Finally, we illustrate how resource access and the nature of the innovation also influence a firm's decision to pursue a standard type. Finally, we propose that pursuit of different standards (customer interface or compatibility) affects the NPD process in terms of (1) sourcing and dissemination of technology and (2) the customer utility for the product, which influences adoption.

We collected perceptual data from a sample of marketing and technology managers in high‐tech industries in the UK using both formative and reflective scales to measure the constructs. Analysis of the data using LISREL supports our contention that compatibility standards and customer interface standards are distinct constructs and that appropriability regime influences compatibility standards and customer interface standards differently. We also find that pursuit of compatibility standards helps a firm to create direct externalities pursuit of customer interface standards helps firms to develop indirect network externalities and technological advantage in the market.

Our findings have the following implications. First, managers need to account explicitly for the difference between compatibility and customer interface standards, as resource allocation decisions during the NPD process will determine where a firm puts more focus. The choices made by the firm—as to whether it pursues compatibility standards or customer interface standards—will determine the type of advantage that it can gain in the market. Given a firm's situation at a point in time, a greater focus on one standard type rather than the other may be the right approach. Such choices will influence resource allocation in the product development process.
The Influence of Knowledge Accumulation on Buyer‐Supplier Codevelopment Projects
Authors: Appleyard Melissa M.
Published: July 2003

This article investigates innovation across a supply chain and considers how knowledge accumulation as a consequence of buyer‐supplier codevelopment projects can influence the projects' specifications. The setting is the semiconductor industry, and the players are chip producers who cooperate with their suppliers to modify their manufacturing equipment used to produce new semiconductor devices.

Two detailed case studies were undertaken to determine the tradeoffs encountered by the buyer and supplier when setting the parameters that govern codevelopment projects. The findings from the case studies inform a conceptual framework that outlines the net payoffs to buyers when deciding whether to “make” or “buy” their production equipment. If buyers pursue the “make” option, they then have to decide the degree to which they sponsor modifications tailored to their production processes or modifications more generally applicable across the industry. More generally applicable modifications likely would prompt suppliers to invest relatively more in follow‐on knowledge creation for upgrades and field support while leading to lower equipment costs due to economies of scale from larger production runs of the new equipment. The framework suggests that when making this sequence of decisions, an innovative buyer also weighs the importance of codevelopment for securing intellectual property rights, guaranteeing early access to new equipment enabling early product launch, and achieving high production yields quickly due to “previewing” the equipment.

The conceptual framework leads to a multi‐period model that focuses on the importance of knowledge accumulation for project parameterization. As captured by the model, buyers may prefer generally applicable modifications to customized ones, because generally applicable modifications may lead to greater knowledge accumulation at the supplier. This knowledge accumulation may be either “embodied” in equipment upgrades or “unembodied” in improved field support.

In addition to shaping the nature of particular codevelopment projects, knowledge accumulation also may have profound implications for long‐run industry structure. As seen in the semiconductor industry, knowledge accumulation at equipment suppliers has contributed to the rise of contract manufacturers, because these manufacturers can outfit their production facilities with equipment that embodies the accumulated knowledge. These findings suggest that for both short‐run and long‐run reasons, the dynamics of knowledge accumulation merit thorough attention when members of a supply chain cooperate during the course of new product development.
Coordination of Design Supply Chains for Bundling Physical and Software Products*
Authors: Joglekar Nitin R. , Rosenthal Stephen R.
Published: July 2003

Research on product development management has concentrated on physical products or on software, but not both. This article explores a special new product development (NPD) approach in which the internal development of core physical products is augmented by bundled and largely outsourced software features. We studied a medical device producer that has established a new medical information product group (MIPG) within their NPD organization to create software features that are bundled with their core physical products. The MIPG has conceptualized these software features as multiple software development projects, and then coordinated their realization largely through the use of external software suppliers. This case study centers on the question: how can firms effectively coordinate such product development processes?

Our analysis of case evidence and related literature suggests that such product bundling processes, when pursued through design supply chains (DSC), are more complex than is typical for the development of streams of either physical products or software products individually. We observe that DSC coordination transcends the requirements associated with traditional “stage‐gate” NPD processes used for physical product development. Managers in DSC settings face a tension inherent to distributed work: keeping internal and external development efforts separate to exploit the design capabilities within a network of software suppliers, while ensuring effective delivery of a stream of bundled products. Many managers face this coordination tension with little, if any, prior knowledge of how to create a streamlined and effective DSC. Our research indicates that these managers need to make a series of interrelated decisions: the number of suppliers to qualify and include in or exclude from the DSC; the basis for measuring and modifying the scope of the suppliers' work; the need to account for asymmetric cost structures and expertise across the DSC; the mechanisms for synchronizing development work across elements of the DSC; and the approaches for developing skills—both technical and administrative—that project managers need for utilizing in‐house competencies while acquiring and assimilating design know‐how from external development organizations. When managers take a flexible approach toward these decisions based on a modular set of software development projects, they can improve their NPD outcomes through technical and organizational experimentation and adjust their own resource deployment to best utilize the suppliers' capabilities within their DSC.
“Managing” Learning by Doing: An Empirical Study in Semiconductor Manufacturing
Authors: Macher Jeffrey T. , Mowery David C.
Published: July 2003

This article examines the contributions of human resource and organizational practices to the development and supply chain management interface. It addresses this issue in the context of the semiconductor industry by highlighting the importance of these practices for learning‐based improvement in manufacturing. One of the most important factors for competitiveness in the semiconductor industry is the ability to manufacture new process technologies with high yields and low cycle times. The more effective management of new process technologies within the manufacturing facility aids firms in managing production costs, volumes, and inventories. Efficient management of new process development and introduction translates into enhanced internal supply chain management performance by improving the design of internal workflows, manufacturing performance, and the acquisition and installation of new manufacturing processes. Because much of the knowledge that underpins semiconductor manufacturing is idiosyncratic, however, firm‐level differences in human resource and organizational practices are likely to have consequences for performance. The article derives learning curve models of the rate of improvement in manufacturing yield (i.e., the rate of learning) and cycle time (i.e., the speed of production) following the introduction of a new process technology in a manufacturing facility. It then tests the influence of the use by semiconductor manufacturers of teams for problem solving and intrafirm knowledge transfer, the level of internal adoption of information technology (IT), and more extensive and effective workflow and production scheduling systems on manufacturing performance. It finds that the manners in which semiconductor manufacturers allocate engineering resources to problem‐solving activities, utilize information technology in the manufacturing facility, schedule production, and control the “shop floor” influence the levels and rates of improvement in both manufacturing performance measures. The article makes several contributions to the literature on product and process development and, accordingly, to research on the product development/supply chain interface. In particular, the model of organizational‐based learning provides a better understanding of the determinants of learning‐based performance improvement. In particular, better manufacturing performance results not strictly from greater cumulative volume but also from the actions of managers that affect the organization of establishment‐level problem‐solving activities and information exchange. The article also demonstrates that human resource and organizational practices in both the development and the adoption of new process technologies improve manufacturing performance by accelerating new product introduction, improving workflow, and enhancing the efficiency of manufacturing processes.
Presidential Address: Liquidity and Price Discovery
Authors: O'Hara Maureen
Published: July 2003

This paper examines the implications of market microstructure for asset pricing. I argue that asset pricing ignores the central fact that asset prices evolve in markets. Markets provide liquidity and price discovery, and I argue that asset pricing models need to be recast in broader terms to incorporate the transactions costs of liquidity and the risks of price discovery. I argue that symmetric information‐based asset pricing models do not work because they assume that the underlying problems of liquidity and price discovery have been solved. I develop an asymmetric information asset pricing model that incorporates these effects.
The Really Long‐Run Performance of Initial Public Offerings: The Pre‐Nasdaq Evidence
Authors: Gompers Paul A. , Lerner Josh
Published: July 2003

Financial economists have intensely debated the performance of IPOs using data after the formation of Nasdaq. This paper sheds light on this controversy by undertaking a large, out‐of‐sample study: We examine the performance for five years after listing of 3,661 U.S. IPOs from 1935 to 1972. The sample displays some underperformance when event‐time buy‐and‐hold abnormal returns are used. The underperformance disappears, however, when cumulative abnormal returns are utilized. A calendar‐time analysis shows that over the entire period, IPOs return as much as the market. The intercepts in CAPM and Fama–French regressions are insignificantly different from zero, suggesting no abnormal performance.
Spurious Regressions in Financial Economics?
Authors: Ferson Wayne E. , Sarkissian Sergei , Simin Timothy T.
Published: July 2003

Even though stock returns are not highly autocorrelated, there is a spurious regression bias in predictive regressions for stock returns related to the classic studies of Yule (1926) and Granger and Newbold (1974). Data mining for predictor variables interacts with spurious regression bias. The two effects reinforce each other, because more highly persistent series are more likely to be found significant in the search for predictor variables. Our simulations suggest that many of the regressions in the literature, based on individual predictor variables, may be spurious.
Bookbuilding: How Informative Is the Order Book?
Authors: Cornelli Francesca , Goldreich David
Published: July 2003

We examine the institutional bids submitted under the bookbuilding procedure for a sample of international equity issues. We find that information in bids which include a limit price, especially those of large and frequent bidders, affects the issue price. Oversubscription has a smaller but significant effect for IPOs. Public information affects the issue price to the extent that it is reflected in the bids. Oversubscription and demand elasticity are positively correlated with the first‐day aftermarket return, and demand elasticity is negatively correlated with aftermarket volatility. Our results support the view that bookbuilding is designed to extract information from investors.
Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis
Authors: Lemmon Michael L. , Lins Karl V.
Published: July 2003

We use a sample of 800 firms in eight East Asian countries to study the effect of ownership structure on value during the region's financial crisis. The crisis negatively impacted firms' investment opportunities, raising the incentives of controlling shareholders to expropriate minority investors. Crisis period stock returns of firms in which managers have high levels of control rights, but have separated their control and cash flow ownership, are 10–20 percentage points lower than those of other firms. The evidence is consistent with the view that ownership structure plays an important role in determining whether insiders expropriate minority shareholders.
Does Shareholder Composition Matter? Evidence from the Market Reaction to Corporate Earnings Announcements
Authors: Hotchkiss Edith S. , Strickland Deon
Published: July 2003

We examine whether institutional ownership composition is related to parameters of the market reaction to negative earnings announcements. When firms report earnings below analysts' expectations, the stock price response is more negative for firms with higher levels of ownership by momentum or aggressive growth investors. There is no evidence, however, that these institutions cause an “overreaction” to earnings news. Ownership structure is also related to trading volume and to stock price volatility on days around earnings announcements. Our findings are consistent with the idea that the composition of institutional shareholders effects stock price behavior around the release of corporate information.
Rumors
Authors: Van Bommel Jos
Published: July 2003

A Kyle (1985) model with private information diffusion is used to examine the motivation to spread stock tips. An informed investor with limited investment capacity spreads imprecise rumors to an audience of followers. Followers trade on the advice and move the price. Due to the imprecision of the rumor, the price overshoots with positive probability. This gives the rumormonger the opportunity to trade twice: First when she receives information, then when she knows the price to be overshooting. In equilibrium, rumors are informative and both rumormongers and followers increase their profits at the expense of uninformed liquidity traders.
Momentum and Reversals in Equity‐Index Returns During Periods of Abnormal Turnover and Return Dispersion
Authors: Connolly Robert , Stivers Chris
Published: July 2003

We document new patterns in the dynamics between stock returns and trading volume. Specifically, we find substantial momentum (reversals) in consecutive weekly returns when the latter week has unexpectedly high (low) turnover. This pattern is evident in equity indices, index futures, and individual stocks. Similarly, we also find that the autocorrelation in equity‐index returns is increasing with the unexpected dispersion across the latter week's firm‐level returns. Weeks with extreme turnover and dispersion shocks (both high and low) tend to have more macroeconomic news releases. Our findings bear on understanding price formation and the economic interpretation of turnover and dispersion shocks.
Incentive Compensation When Executives Can Hedge the Market: Evidence of Relative Performance Evaluation in the Cross Section
Authors: Garvey Gerald , Milbourn Todd
Published: July 2003

Little evidence exists that firms index executive compensation to remove the influence of marketwide factors. We argue that executives can, in principle, replicate such indexation in their private portfolios. In support, we find that market risk has little effect on the use of stock‐based pay for the average executive. But executives' ability to “undo” excessive market risk can be hindered by wealth constraints and inalienability of human capital. We replicate the standard result that there is little relative performance evaluation (RPE) for the average executive, but find strong evidence of RPE for younger executives and executives with less financial wealth.
Tax‐Induced Trading of Equity Securities: Evidence from the ADR Market
Authors: Callaghan Sandra Renfro , Barry Christopher B.
Published: July 2003

We examine ex‐dividend date trading of American Depositary Receipts (ADRs) using a sample of 1,043 dividends over the period 1988 to 1995. ADR dividends are often subject to foreign withholding taxes, creating incentives for certain investors to avoid the distribution. ADRs exhibit negative abnormal ex‐dividend day returns, and their prices behave consistently with their related withholding taxes. Abnormal trading volume for taxable issues exceeds 130 percent and 300 percent of normal volume on the cum‐ and ex‐dates, respectively. Abnormal volume is an increasing function of foreign withholding tax rates and decreasing function of transactions costs. This abnormal ex‐date trading activity is consistent with tax‐motivated trading.
Performance Incentives within Firms: The Effect of Managerial Responsibility
Authors: Aggarwal Rajesh K. , Samwick Andrew A.
Published: July 2003

We show that top management incentives vary by responsibility. For oversight executives, pay‐performance incentives are $1.22 per thousand dollar increase in shareholder wealth higher than for divisional executives. For CEOs, incentives are $5.65 higher than for divisional executives. Incentives for the median top management team are substantial at $32.32. CEOs account for 42 to 58 percent of aggregate team incentives. For divisional executives, the pay–divisional performance sensitivity is positive and increasing in the precision of divisional performance and the pay–firm performance sensitivity is decreasing in the precision of divisional performance. These results support principal–agent models with multiple signals of managerial effort.
Risk Reduction in Large Portfolios: Why Imposing the Wrong Constraints Helps
Authors: Jagannathan Ravi , Ma Tongshu
Published: July 2003

Green and Hollifield (1992) argue that the presence of a dominant factor would result in extreme negative weights in mean‐variance efficient portfolios even in the absence of estimation errors. In that case, imposing no‐short‐sale constraints should hurt, whereas empirical evidence is often to the contrary. We reconcile this apparent contradiction. We explain why constraining portfolio weights to be nonnegative can reduce the risk in estimated optimal portfolios even when the constraints are wrong. Surprisingly, with no‐short‐sale constraints in place, the sample covariance matrix performs as well as covariance matrix estimates based on factor models, shrinkage estimators, and daily data.
High‐Water Marks and Hedge Fund Management Contracts
Authors: Goetzmann William N. , Ingersoll Jonathan E. , Ross Stephen A.
Published: July 2003

Incentive fees for money managers are frequently accompanied by high‐water mark provisions that condition the payment of the performance fee upon exceeding the previously achieved maximum share value. In this paper, we show that hedge fund performance fees are valuable to money managers, and conversely, represent a claim on a significant proportion of investor wealth. The high‐water mark provisions in these contracts limit the value of the performance fees. We provide a closed‐form solution to the cost of the high‐water mark contract under certain conditions. Our results provide a framework for valuation of a hedge fund management company.
Book Review
Authors: Milevsky Moshe A.
Published: July 2003

Book review

Phelim Boyle and Feidh Lim Boyle, Derivatives: The Tools that Changed Finance
Why Do Firms Issue Equity after Splitting Stocks?
Authors: D'Mello Ranjan , Tawatnuntachai Oranee , Yaman Devrim
Published: July 2003

This paper examines the motivations of firms that conduct seasoned equity offerings (SEOs) after splitting stocks. We find no difference in equity announcement and issue period returns between these firms and other equity‐issuing firms, suggesting that firms do not split stocks to reveal information and reduce adverse selection costs at the subsequent SEO. However, because investors react positively to split announcements, firms that issue equity after splitting stocks sell new shares at a higher price and raise more funds. We also find that firms split stocks to make the subsequent SEO more marketable to individual investors who are attracted to low‐priced shares.
Dividend Initiations and Asymmetric Information: A Hazard Model
Authors: Deshmukh Sanjay
Published: July 2003

This paper investigates the dynamics of dividend policy using a hazard model. Specifically, the paper examines dividend initiations for a sample of firms that went public between 1990 and 1997. These dividend initiations are examined in the context of an alternative explanation based on the pecking order theory. The results indicate that the probability or the hazard rate of a dividend initiation is negatively related to both the level of asymmetric information and growth opportunities and positively related to the level of cash flow. These results are consistent with a pecking order explanation but inconsistent with a signaling explanation.
IPO Prospectus Information and Subsequent Performance
Authors: Bhabra Harjeet S. , Pettway Richard H.
Published: July 2003

Initial public offerings underperform in the long run; however, there is very little evidence on their cross‐sectional variation. Using a random sample of IPOs from 1987 through 1991 and gathering their prospectus data, we show that financial and operating characteristics as well as offering characteristics have a limited relation with the one‐year stock returns. We also find that firms that subsequently reissue equity or merge outperform their matched‐firm benchmarks over three years. Underperformance is most severe for the smaller and younger firms. We find that prospectus information is more useful to predict survival/failure compared to subsequent equity offerings or acquisitions.
A Reduced Form Coefficients Analysis of Executive Ownership, Corporate Value, and Executive Compensation
Authors: Weber Marsha , Dudney Donna
Published: July 2003

Most simultaneous equations studies analyze the coefficients from the structural forms of the models, which provide estimates of the direct effects of independent variables on the dependent variables in each equation, but ignore the indirect effects these independent variables have on dependent variables in other equations. This paper modifies the work of Chung and Pruitt (1996) by extending the model to include board composition and institutional ownership variables and then estimating the structural and derived reduced form coefficients for the extended model. The signs and significance of the reduced form coefficients differ in several material respects from the results of the structural form coefficient analysis, which suggests that analysis of only the structural form coefficients is incorrect and potentially misleading.
Stock Splits and Liquidity: The Case of the Nasdaq‐100 Index Tracking Stock
Authors: Dennis Patrick
Published: July 2003

In an attempt to disentangle the signaling effect from the liquidity effect of stock splits, I examine the liquidity changes following the two‐for‐one split of the Nasdaq‐100 Index Tracking Stock. Since there can be no signaling with an index stock split, any difference between pre‐ and postsplit trading may be driven by liquidity but not signaling effects. I find that though the postsplit relative bid‐ask spread is higher and daily turnover is unchanged, the frequency, share volume, and dollar‐volume of small trades all increased after the split, indicating that the split improved liquidity for small trade‐sizes.
New Evidence on Optimal Asset Allocation
Authors: Jensen Gerald R. , Mercer Jeffrey M.
Published: July 2003

Brocato and Steed (1998) showed that portfolio rebalancing based on NBER business cycle turning points substantially improves in‐sample Markowitz efficiency. In a similar vein, we investigate potential improvements from rebalancing based on turning points in the monetary cycle. We find that the monetary cycle has greater influence than the business cycle on the variance/covariance structure of multiple asset classes. Furthermore, we find substantial improvements in in‐sample efficiency beyond a buy‐and‐hold strategy and the business‐cycle approach. Importantly, our indicator of monetary cycle turning points has a practical advantage over NBER business cycle turning points, in that it relies only on ex ante information. In out‐of‐sample tests, we continue to find superior portfolio performance after transactions costs using the monetary cycle to time portfolio rebalancing.
First‐ and Second‐Moment Exchange Rate Exposure: Evidence from U.S. Stock Returns
Authors: Koutmos Gregory , Martin Anna D.
Published: July 2003

This study investigates the impact of first‐ and second‐moment exchange rate exposure on the daily returns of nine U.S. sectors from 1992 to 1998. In 17.8% of the cases we detect significant first‐moment exposure when contemporaneous exchange rates are used. Moreover, 25.0% of the significant exposures are asymmetric. When the model utilizes one‐day lags, 42.2% of the cases are significant and 79.0% are asymmetric. Regarding second‐moment exposure, the financial sector displays pervasive sensitivity to exchange rate volatility when using contemporaneous and lagged models. This result is reasonable, assuming that revenues from the sale of derivative products increase with currency volatility.
Profit Possibilities in Currency Markets: Arbitrage, Hedging, and Speculation
Authors: Ghosh Dilip K. , Arize Augustine C.
Published: July 2003

This paper reviews and extends the existing literature on covered arbitrage, delineates the conditions for profitable arbitrage with the hedging instruments of forward and options contracts in the foreign exchange markets, and defines the maximum possible profits out of a given market environment. Next, the simple rules on speculation are articulated with and without transaction costs, and then we show how speculation can be covered with options and forwards. Finally, speculation is integrated with arbitrage and hedging, and further compounding of profit possibilities is illustrated.
Disability activism and the politics of scale
Authors: Kitchin Rob , Wilton Robert
Published: July 2003

In this paper, we examine the role of spatial scale in mediating and shaping political struggles between disabled people and the state. Specifically, we draw on recent theoretical developments concerning the social construction of spatial scale to interpret two case studies of disability activism within Canada and Ireland. In particular, we provide an analysis of how successful the disability movement in each locale has been at ‘jumping scale’ and enacting change, as well as examining what the consequences of such scaling‐up have been for the movement itself. We demonstrate that the political structures operating in each country markedly affect the scaled nature of disability issues and the effectiveness of political mobilization at different scales.
Innovations to reduce residential energy use and carbon emissions: an integrated approach
Authors: Parker Paul , Rowlands Ian H. , Scott Daniel
Published: July 2003

Research in energy sustainability is gaining renewed priority because of the growing importance of climate‐change issues and the ratification of the Kyoto Protocol by many countries. Increased energy efficiency and substitution of less carbon‐intensive fuels are proposed as the principal means to reduce greenhouse‐gas (GHG) emissions and associated climate change. The residential sector is an important area for improvement, as it accounts for 22 percent of global energy consumption. This paper illustrates the integration of four dimensions of energy issues within a single community study in Waterloo Region, Canada. First, it overcomes the limitations of single‐discipline approaches to energy studies by recognizing the importance of social context in measuring the potential to reduce energy consumption. The ‘sociotechnical’ potential to reduce residential consumption by 25 percent is lower in our analysis than traditional measures of the technical potential, but is considered more achievable. Second, the paper examines how community‐based implementation can enhance the effectiveness of a national energy efficiency program (EnerGuide for Houses, or EGH). Controlled marketing experiments demonstrated higher response rates for materials highlighting local partners. Third, the paper outlines how the local capacity developed by diverse stakeholders (city councils, regional government, federal government agencies, local utilities, local businesses, environmental nongovernmental organizations and the local university) was an important means of overcoming many of the barriers to taking action. Fourth, the paper details the examination of issues of energy efficiency and fuel substitution through a survey of residents’ attitudes and comparison to behaviour. For example, stated ‘willingness to pay’ was compared to the actual sign‐up rate for the first introduction of ‘green’ electricity in the Ontario residential market. The integration of these four dimensions in a single study offers a framework that can be reviewed and adapted to meet the needs of other projects.
Innovation in environmental assessment of community‐based projects in sub‐Saharan Africa
Authors: Spaling Harry
Published: July 2003

Although environmental assessment (EA) has been applied to large resource and infrastructure projects in developing countries, recent innovations in EA concepts, processes and tools have facilitated its application to small projects focused on basic human and livelihood needs. This paper describes innovations in the application of EA to community projects implemented by Canadian nongovernment organizations and their partners in sub‐Saharan Africa. Innovations include: (1) the dovetailing of environmental constructs in neopopulism with a conceptual shift in EA toward participatory, transactive planning; (2) assessment methodologies adapted from participatory rural appraisal; (3) development of grassroots EA capacity; and (4) linkage of community EA with project planning. Community EA is demonstrated for five cases involving agriculture and charcoal retail in Uganda, water supply and flood control in Niger and integrated rural development in Zambia. Future prospects and challenges include cultural adaptation, community empowerment through realignment of power relationships, mutual development of local and national EA capacity and increased training and resources for enhancing grassroots EA capacity.
The changing geography of the Canadian manufacturing sector in metropolitan and rural regions, 1976–1997
Authors: BROWN W. MARK , BALDWIN JOHN R.
Published: July 2003

This paper documents the changing geography of the Canadian manufacturing sector over a 22‐year period (1976–1997). It does so by looking at the shifts in employment and differences in production worker wages across different levels of the rural/urban hierarchy—central cities, adjacent suburbs, medium and small cities and rural areas. The analysis demonstrates that the most dramatic shifts in manufacturing employment were from the central cities of large metropolitan regions to their suburbs. Paralleling trends in the United States, rural regions of Canada have increased their share of manufacturing employment. Rising rural employment shares were due to declining employment shares of small cities and, to a lesser degree, large urban regions. Increasing rural employment was particularly prominent in Quebec, where employment shifted away from the Montreal region. The changing fortunes of rural and urban areas were not the result of across‐the‐board shifts in manufacturing employment, but were the net outcome of differing locational patterns across industries. In contrast to the situation in the United States, wages in Canada do not consistently decline, moving down the rural/urban hierarchy from the largest cities to the most rural parts of the country. Only after controlling for the types of manufacturing industries found in rural and urban regions is it apparent that wages decline with the size of place.
There's more to landscape than meets the eye: towards inclusive landscape assessment in resource and environmental management
Authors: Dakin Susan
Published: July 2003

Consideration of aesthetic values in resource and environmental management in North America emerged in the 1960s. It soon became enshrined as ‘visual resource management’, which emphasized a singular visual notion of aesthetics and an expert‐based approach to assessment. This paper challenges this dominant view. An empirical research study is presented in which a broader conceptualization of the landscape aesthetic and a participatory methodology for assessment were developed and used to explore the landscape experiences of inhabitants of the Cariboo region of British Columbia. Themes, categories and ideas of landscape experience grounded in participant perspectives revealed a richness of landscape and can be seen as an opportunity to supplement and enrich current landscape assessment and ‘visual’ management. More importantly, this conceptual and methodological reorientation in understanding landscape aesthetic sensibilities both reflects and supports the shift in current thinking within resource and environmental management more generally, from technocratic, state‐centred, expert‐based approaches to locally responsive (place‐based), participatory and inclusive approaches for dealing with environmental concerns and resource‐development issues.