bluuebunny/crossref_metadata_2025 huggingface dataset:
Earnings Forecasts and the Information Contained in Spinoff Announcements
Authors: Best Ronald W. , Best Roger J. , Agapos A. M.
Published: March 2005

This study examines spinoff announcements in conjunction with financial analysts’ forecasts of earnings. The analysis shows that spinoff announcement abnormal returns are significantly related to the firm's information environment as proxieci by financial analysts’ earnings prediction errors. The findings also indicate that analysts significantly increase their short‐term earnings forecasts in response to spinoffs, but do not significantly revise their long‐term earnings forecasts. However, the earnings revisions are not significantly different across prediction error groups, which confirms that spinoff‐related abnormal returns cannot be attributed solely to expected performance gains.
The Impact of Asymmetric Information on Proxy Outcomes: An Empirical Test
Authors: Mensah Sam
Published: March 2005

If a manager‐shareholder is better informed about the true value of a firm's shares than outside shareholders, then the management of an undervalued firm is hypothesized to use its incumbent advantage to win proxy contests to maintain control and to benefit from share revaluations induced by the positive signal value of the contest. Using insider trades as indicators of management's beliefs, this study finds an association between insider beliefs and proxy contest outcomes. In particular, when insider trades over a five‐to‐six month period preceding the proxy date are net purchases, the odds in favor of management winning are significantly higher.
Optimal Asset Allocation Over the Business Cycle
Authors: Brocato Joe , Steed Steve
Published: March 2005

Utilizing a broadly diversified portfolio of nine equity and debt assets, we show our portfolio's in‐sample Markowitz return/risk profile considerably improved by keying asset proportions to cyclical changes in economic activity. For comparative purposes, we use the same assets in a hypothetical buy‐and‐hold benchmark portfolio. We find the variance/covariance structure of our portfolio to be considerably altered by the phase of the business cycle, with the diversification benefits enjoyed during expansions substantially diluted during recessions. Thus, cyclical reallocation appears to be more important in maintaining Markowitz efficiency during recessions vis‐a‐vis expansions. In the latter case we find expansion reallocation producing a 3.53% increase in our portfolio's return‐to‐risk ratio (relative to a buy‐and‐hold position), while for recessions optimal reallocation leads to a 79.14% increase.
An Examination of Blume and Vasicek Betas
Authors: Lally Martin
Published: March 2005

This paper examines the Vasicek and Blume methods for correcting OLS betas. The primary conclusions are that typical applications of Vasicek's method seem to mistakenly equate the prior distribution with the cross‐sectional distribution of estimated rather than true betas, that Blume's implicit forecast of any tendency for true betas to regress towards one may not be desirable, that preliminary partitioning of firms into industry type groups (as is typical for Vasicek) is desirable, and that conversion of OLS equity betas to asset betas before applying the correction process is also desirable.
Golden Parachutes, Board and Committee Composition, and Shareholder Wealth
Authors: Davidson Wallace N. , Pilger Theodore , Szakmary Andrew
Published: March 2005

Takeover defense mechanisms have become common for many modern corporations. In this research, we examine one potential takeover defense mechanism, golden parachutes. In particular, the relationship between the board of directors (and the board committees) and the question of whether the parachutes are aligned with shareholder interests or are a means of entrenching management, is studied.

Results show that the composition of the board of directors’ compensation committee influences the market's perceived outcome of golden parachute adoption. When insiders and affiliated outsiders dominate the board's compensation committee, negative returns are more likely to occur than when independent outsiders control the committee.
A Futures Duration‐Convexity Hedging Method
Authors: Daigler Robert T. , Copper Mark
Published: March 2005

A duration‐based hedge ratio is the conventional method to hedge against price changes of a fixed‐income instrument. However, the relationship between bond prices and interest rates is nonlinear, creating a convexity effect. Moreover, term structure changes often are nonparallel in nature, which causes imperfect hedges for the duration‐based hedging model. One solution to these problems is to dynamically change the duration‐based hedge ratio; however, this procedure is costly and is not effective when jumps in prices occur. A superior solution is to develop a two‐instrument hedge ratio that simultaneously hedges both duration and convexity effects. This paper first presents such a two‐instrument hedge ratio and then we examine its effectiveness. The simulation results show that this duration‐convexity hedge ratio is vastly superior to alternative hedge ratio methods for both simple and complex changes in the term structure.
Economically significant stock market forecasts
Authors: Peláez Rolando F.
Published: March 2005

It has been known for some time that a small, but statistically significant portion of the monthly variation in excess returns on the S&P 500‐stock index is predictable using ex ante information. This paper presents a model whose out‐of‐sample forecasts have economic significance. Specifically, a switching rule conditioned on out‐of‐sample forecasts of stock excess returns, produces investment outcomes that mean‐variance dominate the buy‐and‐hold. The switching strategy yields superior risk‐adjusted returns as judged by the composite performance measures of Treynor, Sharpe, and Jensen.
Do Beta Pricing Models Explain January Mean Reversion in Stock Returns?
Authors: Gangopadhyay Partha , Sen Jishnu
Published: March 2005

Jegadeesh (1991) finds evidence of January mean reversion in stock returns. In this paper we attempt to distinguish between two competing economic explanations of January mean reversion in returns: (1) mispricing in irrational markets versus (2) predictable time variation in security risk premia. Excess portfolio returns are decomposed into “explained” and “unexplained” components using the Fama‐French (1993) pricing model. The explained excess returns exhibit January mean reversion. The unexplained excess returns are not mean reverting. Mean reversion is therefore consistent with rational pricing in the framework of the Fama‐French model. Mean reversion can be attributed to the component of return related to a relative distress factor (SMB). A comparison with the Chen, Roll, and Ross (1986) macroeconomic factors reveals that mean reversion is due to the components related to SMB and bond default premium.
Economic Exchange Rate Exposure of U.S.‐Based MNCs Operating in Europe
Authors: Martin Anna D. , Madura Jeff , Akhigbe Aigbe
Published: March 2005

This study focuses on the economic exchange rate exposure of 168 U.S.‐based multinational corporations (MNCs) with foreign operations primarily in Europe. The sampling plan and other refinements may improve the estimation of exposure and detection of relevant determinants. Operating characteristics that represent economic exposure are evaluated for their ability, to explain cross‐sectional differences in exposure. More specifically, the degree of imbalance, which is a proxy for matching cash inflows and outflows, and proportion of export sales are able to explain differential exposure. Furthermore, shifts in the degree of imbalance and proportion of export sales are found to significantly explain shifts in exposure.
Futures Commitments and Commodity Price Jumps
Authors: Chatrath Arjun , Song Frank
Published: March 2005

We examine the relationship between the commitments of three of the largest groups of futures traders and the abnormal price movements in five agricultural commodities. The general evidence suggests that the commitments of futures traders have been increasing over time, whereas the frequency of price jumps have not. Regression results indicate a negative relationship between price jumps and the commitments of speculators and small traders. There is also evidence of a negative relationship between the number of speculators and cash market volatility, consistent with a host of speculation‐based theories.
Symposium on Market Microstructure: A Review of Empirical Research
Authors: Coughenour Jay , Shastri Kuldeep
Published: March 2005

This paper provides a review of empirical research in four topics within the area of market microstructure. Specifically, the paper provides an overview of issues related to (a) the estimation of the components of the bid‐ask spread, (b) the effects of order flow characteristics and regulations on market liquidity, (c) the differences and similarities between the NYSE and the Nasdaq and (d) the interaction between the options and underlying stock markets.
The Cross‐Sectional Relationship Between Trading Costs and Lead/Lag Effects in Stock & Option Markets
Authors: O'Connor Matthew L.
Published: March 2005

Prior empirical research has failed to settle the question of lead/lag effects between stock and option markets. This study investigates the relation between cross‐sectional differences in trading costs and intraday lead/lag effects in stock and option markets. The data for the study comprise 19 firms sampled at five‐minute intervals over a two‐month period. Consistent with a trading cost hypothesis, results indicate overall stock market leading behavior. However, the lead appears to be related to option market trading costs. This study uses an error correction model framework to investigate the lead/lag effects. This approach provides information on both the long run equilibrating process as well as the short term interactions between stock and option markets. Information regarding the long run equilibrating process is important to the overall understanding of lead/lag effects and cannot be determined from time series models of differenced data. Specific criteria for assessing lead/lag effects in cointegrated series are also proposed. One advantage of these new criteria is their ability to identify leading behavior in the presence of feedback. All models are estimated with quote data and are constructed to eliminate overnight effects. Hence, the results are robust to previously identified distortions due to closing, overnight, and potential non‐trading effects. However, caution should be employed in generalizing the results as the study covers a two‐month trading period for a limited number of firms.
Bank Growth Choices and Changes in Market Performance
Authors: Cyree Ken B. , Wansley James W. , Black Harold A.
Published: March 2005

Changes in bank market performance are compared for banks that choose not to grow, to branch, bank acquire, product expand, or some combination. Using the change in market value‐to‐book value ratios, banks that include acquiring other banks as part of their growth strategy have significant positive changes in performance. Positive performance by bank acquirers is in contrast to many studies, but prior research has not reviewed other growth activities in a single model, nor used market‐based measures to review performance over longer time periods following bank expansion.
Stock‐Price Effects of Internet Buy‐Sell Recommendations: The Motley Fool Case
Authors: Hirschey Mark , Richardson Vernon J. , Scholz Susan
Published: March 2005

The Motley Fool has attracted significant notoriety for stock market buy‐sell advice on the Internet. Across five different investment portfolios, Motley Fool buy recommendations appear to generate an average 1.62% rise in stock prices on the announcement day (0), and 2.40% returns over the announcement period (−1, +1). Sell recommendations seem to cause a −1.49% announcement day return, and a −3.33% announcement period return. Small cap growth stock buy recommendations for The Motley Fool's flagship Rule Breaker Portfolio are associated with returns of 3.66% on the announcement day, and a 6.15% return over the announcement period. These findings suggest herd‐like behavior among Internet investors, and that such announcements are more newsworthy than second‐hand buy‐sell recommendations published in traditional print and electronic media.
On Testing the Random‐Walk Hypothesis: A Model‐Comparison Approach
Authors: Darrat Ali F. , Zhong Maosen
Published: March 2005

The main intention of this paper is to investigate, with new daily data, whether prices in the two Chinese stock exchanges (Shanghai and Shenzhen) follow a random‐walk process as required by market efficiency. We use two different approaches, the standard variance‐ratio test of Lo and MacKinlay (1988) and a model‐comparison test that compares the ex post forecasts from a NAÏVE model with those obtained from several alternative models: ARIMA, GARCH and the Artificial Neural Network (ANN). To evaluate ex post forecasts, we utilize several procedures including RMSE, MAE, Theil's U, and encompassing tests. In contrast to the variance‐ratio test, results from the model‐comparison approach are quite decisive in rejecting the random‐walk hypothesis in both Chinese stock markets. Moreover, our results provide strong support for the ANN as a potentially useful device for predicting stock prices in emerging markets.
Asset Maturity, Debt Covenants, and Debt Maturity Choice
Authors: Goswami Gautam
Published: March 2005

The existing research on debt‐maturity under asymmetric information has focused on the impact of differential information regarding asset quality on the debt maturity decision. This research has generally indicated the optimality of short‐term debt financing as a vehicle of mitigating the adverse selection problem. In this paper, I consider the impact of information asymmetry regarding the maturity structure of cash flows on the debt maturity decision. In this context, long‐term debt is generally the form of debt financing most effective in alleviating the adverse selection problem. I also show that costs of adverse selection may induce some mismatching of debt maturity and asset maturity in the presence of significant transaction costs.
Multiple Bids, Management Opposition, and the Market for Corporate Control
Authors: Lefanowicz Craig E. , Robinson John R.
Published: March 2005

We use regression analysis to disentangle the wealth effect for acquired firm shareholders of management opposition and multiple bids (e.g., multiple bidders and bid revisions). Although multiple bidders and bid revisions occur more frequently for opposed acquisitions, opposition is not associated with incremental acquisition returns for acquisitions with multiple bidders. We also find that management opposition has no significant incremental effect on single bidder acquisitions unless the acquiring firm revises its initial bid. These findings indicate that rather than amplifying acqiuisition returns directly, management opposition instead serves as a negotiating tool to solicit additional bids.
The Pricing of Equity Carve‐Outs
Authors: Prezas Alexandros P. , Tarimcilar Murat , Vasudevan Gopala K.
Published: March 2005

This article examines the pricing of stock for 251 equity carve‐outs during the 1986–1995 period. We document a mean initial‐day return of 5.83% and a mean one‐week return of 5.43%. Among carve‐outs, the initial underpricing is lower for issues represented by high prestige investment bankers and those that have a lower offer price. In comparison with 251 initial public offering (IPO) firms matched by size and book‐to‐market ratio of equity, carveouts exhibit significantly lower initial‐day returns, but their buy‐and‐hold returns for sixmonth and one‐year periods are not significantly different from IPOs. The IPO firms have a three‐year return of 28.82% which is significantly higher than the 21.07% return for the carve‐out firms.
Aggregate Dividend Behavior and Permanent Earnings Hypothesis
Authors: Pan Ming‐Shiun
Published: March 2005

The study examines the aggregate dividend behavior of U.S. corporations based on the permanent earnings hypothesis. Using annual data of aggregate earnings and dividends from 1871–1993, I find that although managers change dividends proportional to permanent earnings changes, they make revisions with a larger percentage change in dividends than in permanent earnings. The results from the post‐war data show that firms follow a partial adjustment policy with a long‐term dividend payout target in mind and make revisions with a delay. The quarterly data analysis yields results similar to those of the post‐war annual data.
Selectivity and Market Timing Performance of Fidelity Sector Mutual Funds
Authors: Dellva Wilfred L. , DeMaskey Andrea L. , Smith Colleen A.
Published: March 2005

In this paper, we test the selectivity and timing performance of the Fidelity sector mutual funds during the 1989–1998 time period. We use the S&P 500, the Dow Jones Industry Group Total Return Indexes, and the Dow Jones Subgroup Total Return Indexes as benchmarks. When we use the Dow Jones Industry benchmarks, our results indicate that many sector fund managers have positive selectivity but negative timing ability. We also find that the results are sensitive to our choice of benchmark and timing model.
Is Volatility Risk for the British Pound Priced in U.S. Options Markets?
Authors: Sarwar Ghulam
Published: March 2005

This paper estimates the premium for volatility risk for European currency options written on British pounds. The average annualized premium for volatility risk is neither statistically different from zero nor invariant to the option's moneyness. However, the risk premium is positively and nonproportionaly related to the level of volatility, except for out‐of‐the‐money options. Finding a zero premium for volatility risk does not undermine the assumption of a zero‐price volatility risk in many extant stochastic‐volatility option pricing models and the option pricing formulas in those models.
Further Evidence on Mean Reversion in Index Basis Changes
Authors: He Yan , Wu Chunchi
Published: March 2005

We provide further evidence on the stochastic behavior of the futures minus cash index basis. In addition to infrequent trading, we identify index aggregation as an additional source of mean reversion in basis changes. An aggregation of individual stocks in the index portfolio produces a moving average component that induces a negative autocorrelation in basis changes. Our empirical results show that index price and basis changes often contain a moving average component. After the effects of infrequent trading and index aggregation are purged, we find that the autocorrelation of the adjusted index basis changes is significantly reduced.
Evidence and Implications of Increases in Trading Volume Around Exchange Listings
Authors: Tandon Kishore , Webb Gwendolyn P.
Published: March 2005

After controlling for market volume trends and differences in volume measurement between the Nasdaq and the exchanges, we find that mean trading volumes increase significantly for Nasdaq stocks that list on the Amex or the NYSE. Furthermore, stocks with low (high) pre‐listing volume tend to realize the largest volume increases (decreases) as well as the best (worst) post‐listing performance. Our results support the hypothesis that stocks with high past trading volumes tend to experience lower future returns, and shed new light on the nature and possible causes of poor post‐listing stock performance.
Internal Finance and Corporate Investment
Authors: Kholdy Shady , Sohrabian Ahmad
Published: March 2005

This paper examines Pecking Order/Free Cash Flow behavior in small ($25–$50 million), medium ($100–250 million), and large ($1000 million and over) firms. The purpose is to proffer an explanation for the important role of cash flow on the investment expenditure of firms that is more complete than the commonly given accounts. The Pecking order theory (PO) emphasizes the value‐enhancing influence of cash flow, while the free cash flow hypothesis (FCF) underscores its value‐destroying effect. Using the vector error correction model, we find that although the overall behavior of small firms support the pecking order theory, the cash flow of these firms does not have any causal effect on their investment. We further find evidence of free cash flow theory in large firms.
Market Quote and Spread Component Cost Behavior Around Trading Halts for Stocks Interlisted on the Montreal and Toronto Stock Exchanges
Authors: Kryzanowski Lawrence , Nemiroff Howard
Published: March 2005

We use intraday quotes and transactions on halted securities that interlisted on the Toronto Stock Exchange and Montreal Exchange to decompose the spreads and examine quote depths. Our results show that order‐processing costs differ for trading halts at the open compared to halts during the rest of the trading day. We find that the adverse‐selection cost component of the spread is higher around trading halts and highest at the trading halt. We also find that print‐media articles that appear within the four‐day window centered on the halt have no impact on the time‐series behavior of the spread cost.
Sources of Capital Market Segmentation: Empirical Evidence from Finland
Authors: Vaihekoski Mika , Nummelin Kim
Published: March 2005

Because Finland has experienced profound economic changes and financial deregulation since the mid‐1980s, we use it as a laboratory to explore issues related to time‐varying global equity market integration. Using a Finnish perspective, we construct two different portfolios of Finnish firms and a conditional one‐factor international asset pricing model. We examine whether the segmentation varies over time and across assets. We use time‐series variables for changing market integration (lagged foreign equity ownership, difference between Finnish and German short‐term interest rates, and a portfolio‐specific liquidity measure) and crosssectional variables (size and book‐to‐market ratios and industry sector) to show variation in integration.
A Comparison of Reverse Leveraged Buyouts and Original Initial Public Offers: Factors Impacting their Issuance in the IPO Market
Authors: Hogan Karen M. , Olson Gerard T. , Kish Richard J.
Published: March 2005

The purpose of this paper is to assess the factors that affect the returns earned by investors in early trading of reverse LBOs and compare those results to factors affecting original IPOs which are matched by size, industry, and issue date. A mean excess return of 7.64% is observed for the sample of reverse LBOs during the period 1987 to 1998. This return is uniformly lower than returns earned by investing in original IPOs. These results support the information asymmetry hypothesis.

The results also show that factors such as number of months the LBO was privately held, the over‐allotment, or greenshoe option, the size of the issue, insider ownership, and gross spread impact the returns earned by investors in reverse LBOs. Other factors which are known to affect returns on original IPOs, such as lead underwriter, whether the deal was syndicated, the number of managers, the listing exchange, lockup agreements, and auditor, are shown to have no impact on the returns in reverse LBOs for the sample in question. We find that the level of insider participation and the over‐allotment option are more important to original IPOs than to reverse LBOs in explaining the excess returns earned by shareholders in early trading. We find, however, that the size of the offering has more impact on excess returns for reverse LBOs than for original IPOs.
The Lead‐Lag Relation Between Spot and Futures Markets Under Different Short‐Selling Regimes
Authors: Jiang Li , Fung Joseph K.W. , Cheng Louis T.W.
Published: March 2005

We examine the lead‐lag relation between index futures and the underlying index under three types of short‐selling restrictions on stocks in Hong Kong. Our results indicate that lifting short‐selling restrictions can enhance the informational efficiency of the stock market relative to the index futures. We also investigate the impact of two market characteristics, market conditions and the magnitude of mispricing on the lead‐lag relations under different short‐selling regimes. Our findings suggest that if we remove restrictions, the contemporaneous price relation between the futures and cash markets becomes stronger particularly in the falling market and when the cash market is relatively overpriced.
Motivation and Performance of Seasoned Offerings by Closed‐End Funds
Authors: Akhigbe Aigbe , Madura Jeff
Published: March 2005

We examine the motivation and performance of closed‐end funds that engage in seasoned public or rights offerings. We find that closed‐end funds are more motivated to engage in seasoned offerings when their shares exhibit a relatively high premium (compared to their corresponding NAV) and have a high degree of liquidity. We also find a significant negative valuation effect on average in response to seasoned offerings by closed‐end funds. Our cross‐sectional analysis reveals that the valuation effect at the time of the seasoned offering is more unfavorable for funds that have relatively high expense ratios and are relatively large. Furthermore, we find that the closed‐end funds experience significant negative valuation effects over the three‐year period subsequent to the seasoned offering, implying poor post‐offering performance.
Post‐Reform Market‐Order Execution Quality: Multidimensional Comparisons Across Market Centers
Authors: Hatch Brian , Battalio Robert , Jennings Robert
Published: March 2005

We use market‐order data to determine execution quality on the NYSE, four regional stock exchanges, and the Nasdaq InterMarket. We examine a sample period after the reduction in the minimum price variation and after the SEC imposed new order‐handling rules, and analyze dimensions of execution quality in addition to trade prices. We find that in the postreform environment, the NYSE offers execution prices that are more favorable to the investor. However, the regional exchanges and the InterMarket offer executions that are faster and that more frequently allow investors to execute orders with sizes exceeding the quoted depth at the quoted price.
Stochastic Properties of Time‐Averaged Financial Data: Explanation and Empirical Demonstration Using Monthly Stock Prices
Authors: Wilson Jack W. , Jones Charles P. , Lundstrum Leonard L.
Published: March 2005

This article considers the potential statistical problems resulting from the use of averaged rather than end‐of‐period data in financial research. Averaged data are widely employed throughout the literature without explicit recognition that the use of such data results in biased estimates of the variance, covariance and autocorrelation of the first as well as higher order changes. We illustrate the magnitude of the biases, using the S&P 500 end‐of‐month series over the period March 1957 to February 2001. Results confirm the predictions of Working and of Schwert. In addition, an analysis of the properties of higher‐order lags indicates that the bias persists, a result not previously suggested in the literature. We also find that these statistical biases are time varying‐which has significant implications for empirical financial research.
Rational Pricing of Internet Companies Revisited
Authors: Schwartz Eduardo S. , Moon Mark
Published: March 2005

In this article we expand and improve the Internet company valuation model of Schwartz and Moon (2000) in numerous ways. By using techniques from real options theory and modern capital budgeting, the earlier paper demonstrated that uncertainty about key variables plays a major role in the valuation of high growth Internet companies. Presently, we make the model more realistic by providing for stochastic costs and future financing, and also by including capital expenditures and depreciation in the analysis.

Perhaps more importantly, we offer insights into the practical implementation the model. An important challenge to implementing the original model was estimating the various parameters of the model. Here, we improve the procedure by setting the speed of adjustment parameters equal to one another, by tying the implied half‐life of the revenue growth process to analyst forecasts, and by inferring the risk‐adjustment parameter from the observed beta of the company's stock price. We illustrate these extensions in a valuation of the company eBay.
The Effect of Serial Dependence on Multiperiod Holding Period Return Performance
Authors: Spahr Ronald W. , Schwebach Robert G.
Published: March 2005

The impact of the investment time horizon on risk‐return properties of asset returns depends on the presence of serial correlation and higher order serial dependencies. We present a methodology for decomposing multiperiod holding period return covariance into serial and cross‐sectional components using a recursive multiplicative model that captures the effects of serial and cross‐sectional dependencies and their joint effects without requiring a distributional form assumption. Applying this model to historical monthly return series for commonly held financial assets and portfolios of assets, we investigate the significance of the investment time horizon, the existence and relevance of time diversification, the inflation‐hedging effectiveness of different assets, and the appropriateness of applying traditional capital market theory in a multiperiod framework.
The Market's Assessment of the Financial Services Modernization Act of 1999
Authors: Akhigbe Aigbe , Whyte Ann Marie
Published: March 2005

We examine the impact of the events leading up to and including the passage of the Financial Services Modernization Act (FSMA) of 1999 on the stock returns of banks, brokerage firms, and insurance companies. We find that the impact is positive for all institutions. Bank gains are positively related to size and capitalization. Brokerage firms gain regardless of size, but the gains are inversely related to capitalization and insurance companies gain regardless of size or capital position. The strong positive reaction suggests that the market expects the institutions to benefit from the new opportunities created by the FSMA's passage.
Risk factors for gingival overgrowth in patients medicated with ciclosporin in the absence of calcium channel blockers
Authors: Thomason J. Mark , Seymour Robin A. , Ellis Janice S.
Published: March 2005

Objectives: This study investigates the effect of a range of potential risk factors on the severity of gingival overgrowth in transplant patients medicated with ciclosporin in the absence of any calcium channel blockers.

Materials and Methods: One hundred dentate solid organ transplants medicated with ciclosporin (but not calcium channel blockers or phenytoin) were recruited for the study. Demographic, pharmacological and periodontal data were recorded and gingival overgrowth assessed from stone models.

Results: Univariate analysis identified the duration of transplant, papilla bleeding index, creatinine serum concentration, azathioprine and prednisolone dosage as risk factors for overgrowth severity. Multivariate modelling, excluding the periodontal parameters, gave a predictive model that included dosages of ciclosporin, azathioprine, prednisolone and weight (p<0.0001, adjusted‐R2=19%). Adding the periodontal variables strengthened the model (p<0.0001, adjusted‐R2=34.5%).

Conclusion: The explanatory models in this study contain a number of variables that moderate inflammation (azathioprine and prednisolone) or are markers of it (papilla bleeding index). Dosage of each of the three immunosuppressants was identified as a risk factor for the severity of gingival change. This observation appears to have been masked by the effects of the calcium channel blockers in earlier studies.
Adjunctive subantimicrobial dose doxycycline: effect on clinical parameters and gingival crevicular fluid transforming growth factor‐β1 levels in severe, generalized chronic periodontitis
Authors: Gürkan Ali , Çınarcık Serhat , Hüseyinov Afig
Published: March 2005

Background: At present there is limited data concerning the efficacy of non‐surgical periodontal therapy supplemented with subantimicrobial dose doxycycline (SDD) in the treatment of severe, generalized periodontitis. The purpose of the present study was to evaluate the effect of adjunctive SDD therapy on clinical periodontal parameters and gingival crevicular fluid (GCF) transforming growth factor‐beta1 (TGF‐β1) levels in patients with severe, generalized chronic periodontitis over a 6‐month period.

Methods: Thirty‐five patients with severe, generalized periodontitis and 11 periodontally healthy subjects were included in the present study. Patients received full‐mouth supragingival debridment at baseline and randomized to take either SDD b.i.d. or placebo b.i.d. for 3 months. Patients received root planing and oral hygiene instruction once a week for four consecutive weeks. Clinical measurements including probing depth (PD), clinical attachment level, papilla bleeding index and plaque index and GCF sampling were performed at baseline, 3 and 6 months. The GCF TGF‐β1 levels were analysed by enzyme‐linked immunosorbent assay.

Results: Thirteen patients in both study groups completed the 6‐month trial. Following scaling and root planing (SRP) plus SDD and SRP plus placebo therapy significant improvements in clinical periodontal parameters of both groups were observed (p<0.025). In the SDD group a significantly higher percentage (%73.4) of deep pockets resolved (PD reduction 3 mm from baseline) when compared with placebo group (%49.7) at 6 months (p<0.05). At baseline there were no significant differences in GCF TGF‐β1 levels between three groups. Both total amount and concentration of GCF TGF‐β1 in SDD and placebo groups increased when compared with baseline at 3 months. However, only GCF TGF‐β1 levels of SDD group was significantly higher than baseline (p<0.025) and placebo group (p<0.017) at 3 months. At 6 months GCF TGF‐β1 levels of both groups were similar to baseline levels (p<0.025).

Conclusions: These data indicate that combination of SDD with non‐surgical therapy improves clinical parameters of periodontal disease and increases GCF TGF‐β1 levels together with a decrease in prevalence of residual pockets in patients with severe, generalized chronic periodontitis. Increased GCF TGF‐β1 levels following SDD therapy might suggest a novell pleiotrophic mechanism for tetracyclines to inhibit connective tissue breakdown.
Root proximity as a risk marker for periodontal disease: a case–control study
Authors: Vermylen K. , De Quincey G. N. Th. , Wolffe G. N. , Van 't Hof M. A. , Renggli H. H.
Published: March 2005

Aim: The aim of this study is first, to examine the prevalence, symmetry and spread of root proximity using the measurement tools and classification as described in part I of the study, and second to examine whether root proximity is a risk marker for periodontal disease.

Material and Methods: The radiographs of 227 patients were examined. The study consisted of a study group of 197 patients with advanced periodontal disease with at least one site with bone loss more than one third of the root length and 30 controls without periodontal disease. Every inter‐proximal space was assessed on the full‐mouth radiographs and a score was assigned according to severity and location. Consequently prevalence of severity and location, symmetry, spread and an odds ratio and relative risk for periodontal disease was calculated.

Results: Root proximity is a symmetrical and localized but widespread phenomenon in periodontal patients and to lesser extend in the non‐periodontal control group. In periodontal patients root proximity was most often encountered in the coronal and intervening part whereas subjects without periodontal disease had more root proximity in the apical and intervening part where it is less critical. Subjects with bilateral root proximity had a 3.6 times higher chance to have periodontitis.

Conclusion: Root proximity must be taken into consideration as a risk marker for periodontal disease.
Analysis of superoxide dismutase activity levels in gingiva and gingival crevicular fluid in patients with chronic periodontitis and periodontally healthy controls
Authors: Akalin F. Alev , Toklu Esra , Renda Nurten
Published: March 2005

Objectives: Superoxide dismutase (SOD) is an antioxidant enzyme that acts against superoxide, an oxygen radical, released in inflammatory pathways and causes connective tissue breakdown. In this study, SOD activities in gingiva and gingival crevicular fluid (GCF) from patients with chronic periodontitis (CP) and periodontally healthy controls were compared.

Material and Methods: Twenty‐six CP patients and 18 controls were studied. In patients, teeth with moderate‐to‐severe periodontal breakdown and 5 mm pockets that required full‐thickness flap surgery in the right or left maxillary quadrant, and in controls, teeth scheduled for extraction for orthodontic reasons were studied. After the clinical measurements (probing depth, clinical attachment level, gingival index, gingival bleeding index, plaque index), GCF samples were collected. Tissue samples were harvested from the same teeth, during flap operation in patients and immediately after tooth extraction in controls. SOD activities were spectrophotometrically assayed.The results were statistically analysed.

Results: Gingival SOD activity was significantly higher in the CP group than in controls (p<0.05). No significant difference was found in GCF SOD activity between the groups (p>0.05). Correlations between gingival and GCF SOD activities were not statistically significant in CP and control groups (p>0.05).

Conclusion: In CP, SOD activity seems to increase in gingiva, probably as a result of a higher need for SOD activity and protection in gingiva in CP than in periodontal health, while not significantly changing in GCF, suggesting a weak SOD activity in GCF in periodontal disease state. The weak correlation between gingival and GCF SOD activities suggests distinct actions of these SODs.
Emphysema‐induced reductions in locomotory skeletal muscle contractile function
Authors: Mattson John P. , Martin James C.
Published: March 2005

Patients with COPD suffer from locomotory skeletal muscle contractile dysfunction. This may be due to the disease per se or as a result of some confounding factor. Therefore, the purpose of this investigation was to determine whether emphysema: (1) reduces force production; (2) increases fatigability; and (3) impairs the speed of recovery in locomotory skeletal muscle in an accepted animal model in which many confounding variables can be controlled. To explore this issue, in situ mechanical properties of gastrocnemius were measured in Syrian Golden hamsters 8 months after intratracheal instillation of either saline (control, n= 5) or elastase (emphysema, n= 7). Emphysema increased excised lung volume (80%; P < 0.01), increased fatigability (control, 25% reduction in maximal strength after 4 min of repeated contractions; emphysema, 55% reduction; P < 0.05) and decreased the recovery rate (half‐times of recovery: control, 7 ± 7 s; emphysema, 92 ± 92 s; P < 0.05) of gastrocnemius muscle. In contrast, emphysema had no effect on maximal force, whether related to body mass or muscle mass, or force–velocity characteristics of gastrocnemius muscle. These data demonstrate that emphysema, independent of physical activity levels, pharmacological intervention, and/or nutritional status, can increase fatigability and impair the speed of recovery of locomotory skeletal muscle contractile function which may contribute to exercise intolerance of COPD patients.
FORMAL RELATION AMONG VARIOUS HERMITIAN AND NON-HERMITIAN EFFECTIVE INTERACTIONS
Authors: OKAMOTO RYOJI , FUJII SHINICHIRO , SUZUKI KENJI
Published: March 2005

A general definition of the model-space effective interaction is given. The energy-independent effective Hamiltonians derived in a time-independent way are classified systematically.
NEUTRINO PHYSICS AND NUCLEAR AXIAL TWO-BODY INTERACTIONS
Authors: BALANTEKIN A. B. , YÜKSEL H.
Published: March 2005

We consider the counter-term describing isoscalar axial two-body currents in the nucleon–nucleon interaction, L1A, in the effective field theory approach. We determine this quantity using solar neutrino data. We investigate the variation of L1A when different sets of data are used.
COLLECTIVE MOTION IN NUCLEAR COLLISIONS AND SUPERNOVA EXPLOSIONS
Authors: BAUER WOLFGANG , STROTHER TERRANCE
Published: March 2005

Motivated by the success of kinetic theory in the description of observables in intermediate and high energy heavy-ion collisions, we apply kinetic theory to the physics of supernova explosions. The algorithmic implementation for the high-density phase of the iron core collapse is discussed.
AN APPROACH TO GROUP DECISION MAKING BASED ON INCOMPLETE LINGUISTIC PREFERENCE RELATIONS
Authors: XU ZESHUI
Published: March 2005

In this paper, we introduce some operational laws of linguistic variables and define some linguistic preference relations such as incomplete linguistic preference relation and improved linguistic preference relation, etc. We then utilize the extended arithmetic averaging (EAA) operator and the extended weighted arithmetic averaging (EWAA) operator to develop an approach to group decision making based on incomplete linguistic preference relations. Finally, we give an illustrative example to verify the developed approach.
A SEQUENCE-ELEMENT-BASED HIERARCHICAL CLUSTERING ALGORITHM FOR CATEGORICAL SEQUENCE DATA
Authors: OH SEUNG-JOON , KIM JAE-YEARN
Published: March 2005

Recently, there has been enormous growth in the amount of commercial and scientific data, such as protein sequences, retail transactions, and web-logs. Such datasets consist of sequence data that have an inherent sequential nature. However, few existing clustering algorithms consider sequentiality. In this paper, we study how to cluster these sequence datasets. We propose a new similarity measure to compute the similarity between two sequences. In the proposed measure, subsets of a sequence are considered, and the more identical subsets there are, the more similar the two sequences. In addition, we propose a hierarchical clustering algorithm and an efficient method for measuring similarity. Using a splice dataset and synthetic datasets, we show that the quality of clusters generated by our proposed approach is better than that of clusters produced by traditional clustering algorithms.
A SPOT PRICING FRAMEWORK FOR PRICING INTRA-DOMAIN ASSURED BANDWIDTH SERVICES
Authors: GUPTA APARNA , KALYANARAMAN SHIVKUMAR , ZHANG LINGYI
Published: March 2005

The Internet today offers primarily a best-effort service. Research and technology development efforts are currently underway to allow the provisioning of better than best-effort quality of service assurances. In this article, we develop a spot pricing framework for expected bandwidth guaranteed Internet service contracts on a single domain. A nonlinear pricing model that maximizes the total surplus with cost constraints forms the basis for the framework. The spot price process is obtained for different demand profiles of the customer-base and demand arrival characteristics. Simulation modeling and analysis is employed to implement the pricing framework and analyze the price process under different market conditions and changes due to network failures. The framework when implemented at access or exchange points of different service provider domains will provide assured bandwidth for inter-domain traffic.
FROM A FEW CRAFTSMEN TO AN INTERNATIONAL NETWORK OF ALLIANCES: BOSCH DIESEL FUEL INJECTION SYSTEMS
Authors: KASH DON E. , AUGER ROBIN N.
Published: March 2005

The evolution of the fuel injection technology for diesel engines initiated and repeatedly innovated since 1922 by Robert Bosch GmbH of Stuttgart, Germany, is used to illustrate the management and policy adaptations necessary to carry out repeated innovations as technologies move through different innovation patterns — transformation (first-of-a-kind), transition (major redesign) and normal (incremental) — and as they evolve from simple to complex. Special attention is given to the role of cooperative alliances in the innovation, knowledge management and decision-making associated with the development of the diesel injection technology. As the technology has become ever more complex, the Bosch innovation activities have manifested a process of co-evolution between a continuously adapting network of supplier and user organisations and diesel injection technology that has occurred as part of an ever-changing environment (e.g., market, public policy).
VIDEOGAMES AS INTERACTIVE EXPERIENTIAL PRODUCTS AND THEIR MANNER OF DEVELOPMENT
Authors: TSCHANG F. TED
Published: March 2005

This paper is a first attempt to systematically explore the main characteristics of videogames and the particular problems encountered in their development. As an example of an emerging creative industry, videogames are an instance of what we term interactive experiential products. Our study is based on 65 project reports, which were used to examine how the product's interactive nature created certain characteristics in the product's development processes. We find that videogame development displays experiential processes similar to those used in other products which embody "experiential" development processes, such as frequent milestones and testing, multiple design iterations, multifunctional teams and strong project leadership. We also show that there are some subtleties or peculiarities that are specific to games even within these characteristics, such as more complex concurrent development, pipelining and integration issues. Some characteristics are more unique to videogame development, such as "feature creep" and "feature iteration". In general, this results from the complex combination of technology, (creative) game design and (artistic) content within videogames, which causes complexity and uncertainty in the development process. At one extreme, videogames may suffer from not being subject to a full testing cycle until near the end of the project, and given the high uncertainty of consumer's receptivity to the product, this makes for a difficult development situation. While the use of more rational development processes (such as formal software development practices from software engineering) could help with these issues, new thinking can also be done in the future about whether new and more appropriate product development models can be developed to address the needs of videogame development.
EDITORIAL: "TECHNOLOGY AND ORGANISATION: A SPECIAL ISSUE IN HONOUR OF KEITH PAVITT"
Authors: SAPSED JONATHAN , AUGSDÖRFER PETER , UTTERBACK JAMES
Published: March 2005

In honour of the late Keith Pavitt, we introduce this Special Issue of International Journal of Innovation Management. We discuss the impact of Pavitt's work in technology and innovation on the management field. He showed empirically a number of core principles of technological change and knowledge, and how these affected managerial and organisational tasks. His influence is indicated by his publication channels, citations to his work and the other authors with whom he was cited. Pavitt had signalled several themes for future research in the management of technology and innovation. This introduction explains how the articles of this special issue make contributions to all these ongoing research agendas.