bluuebunny/crossref_metadata_2025 huggingface dataset:
Political action committees, ‘soft’ money, foreign contributions and US politics: Lessons from the American experience
Authors: Hutton James , Watad Mahmoud
Published: January 2008

Political fund‐raising practices in the US have created what might be considered institutionalised bribery, resulting in growing concerns about the role of foreign money, entrenchment of politicians, an intergenerational shift of resources and consolidation of key industries. The new political environment has also spawned a growing sense that all votes and candidates are for sale. This paper reviews a bit of history about American political campaign financing, outlines current abuses, highlights implications of those abuses, and offers a few solutions.
EU public affairs: The growing role of NGOs in the decision making process
Authors: Pedler Robin
Published: January 2008

This paper was prepared for presentation to the workshop on ‘The Developing EU — Institutional Changes and Enlargement’ at the Fifth International Public Relations Research Symposium, Bled, 10th–12th July, 1998. The paper presents an analysis and description of non‐governmental organisations (NGOs) represented by offices in Brussels in the form of both alliances and groups. It looks at the NGOs' role in EU policy formation, environmental activists, consumers', human and citizens' rights, animal welfare and the implications for public affairs.
The Deferred Tax Asset Valuation Allowance and Earnings Quality
Authors: Bauman Christine C. , Bauman Mark P.
Published: January 2008

Extant research examining the determinants of deferred tax asset valuation allowances finds that the evidence provisions outlined in SFAS 109 explain a significant portion of both levels of and changes in recorded valuation allowances. In addition, there is evidence of a stock price reaction around the time of announcements of valuation allowance information. The present study extends existing research in two ways. First, extant research on determinants of valuation allowance changes does not incorporate the asymmetry in the evidence provisions of SFAS 109. Accordingly, we separately examine the determinants of increases versus decreases in valuation allowances and find that the evidence provisions of SFAS 109 explain a much greater portion of valuation allowance increases than decreases. Second, we examine the association between annual stock returns and reported earnings resulting from valuation allowance changes. While the earnings effect of valuation allowance changes is found to be significant in the expected direction, the stock price reactions do not occur in the period the earnings effect is reported. This is consistent with low earnings “quality” under SFAS 109.
A Model of the Determinants of Political Risk
Authors: Alvertos Dimitra K.
Published: January 2008

This study offers a political risk prediction model that replicates a known political risk index on the basis of economic and political variables. The results show that the political risk is affected by the level of the United Nations human development index, the gross domestic savings as a percentage of gross domestic product, the labor force as a percentage of total population, the total expenditures on health and education as a percentage of gross domestic product and the level of the terms of trade.
Presidential administration and day‐of‐the‐week effects in the Standard & Poor's 500 stock index
Authors: Keef Stephen P. , Roush Melvin L.
Published: January 2008

In a recent study, Liano, Liano and Manakyan (1999) conclude that the pattern of day‐of‐the‐week effects in stock indices differs between Democratic administrations and Republican administrations. Specifically, the weekend effect is more pronounced during Republican administrations. This paper re‐examines this issue. It incorporates into the analysis the implications of Connolly's (1989) findings that the weekend effect has disappeared since 1975. We confirm Connolly's results. However, contrary to Liano et al. (1999), we conclude that day‐of‐the‐week effects are not significantly moderated by the political administration.
Incremental Value‐Relevance of SFAS 106
Authors: Asthana Sharad , Mishra Birendra
Published: January 2008

This study investigates the incremental value‐relevance of non‐pension postretirement benefit obligations and expenses (disclosed by firms pursuant to SFAS 106). Our study is motivated by previously published evidences that investors value the SFAS 106 measure of postretirement benefit obligations. However, prior research does not address incremental value‐relevance of the SFAS 106. We address two related questions. First, “do the SFAS 106 measures of non‐pension postretirement benefit obligations and expenses provide incremental value relevance (after controlling for information available from non‐SFAS 106 sources).” Second, “under what circumstances are the SFAS‐106 measures more likely to provide incremental value relevance.” The key findings of this paper are: (i) on average, SFAS 106 measures of postretirement benefit obligations and expenses have no significant incremental value‐relevance after controlling for non‐SFAS 106 information; and (ii) labor intensity and the magnitude of postretirement benefit obligation increases the incremental value‐relevance of SFAS 106 measures.
Anticipatory Income Smoothing and the Investment Opportunity Set: An Empirical Test of the Fudenberg and Tirole (1995) Model
Authors: Riahi‐Belkaoui Ahmed
Published: January 2008

Fudenberg and Tirole (1995) argue that concern about job security creates an incentive for managers to smooth earnings. Consistent with their model, Defond and Park (1997) show that managers smooth earnings in consideration of both current and future relative performance. To provide a more direct evidence of anticipating smoothing and job security, we hypothesize that the extent of income smoothing will vary with managers' job security concerns as proxied by the level of the investment opportunity set or growth opportunities. Our results confirmed our predictions.
A NOTE ON THE IMPACT OF CERTIFICATES OF DEPOSIT ON BANK‐THRIFT COMPETITION
Authors: RAWSON WILLIAM S. , INGRAM FRANKLIN J.
Published: January 2008

Due largely to the discussion arising from the Hunt Commission of the early 1970's, bank — thrift institution competition continues to be one of the most controversial topics currently under study. For all the heat the debate has generated, there has been little new light shed on the problem. Host of the existing empirical literature is based on studies using data from the 1950's and 60's. The purpose of this note is to point out the need to consider the significant impact of non‐passbook household savings deposits when analyzing bank — thrift relationships. The evidence presented is preliminary in nature, but clearly indicates the need to incorporate the structure of time deposits into the analysis.
SEPARABILITY HYPOTHESIS AND THE THEORY OF SECOND BEST
Authors: FONG‐SHENG WANG LEONARD
Published: January 2008

To find the way to obtain the maximization of social welfare has been a focus of welfare economics. Pareto optimal conditions are usually considered a sufficient condition for the Welfare maximization, i.e., the first best solution. Under the mixed economy, however, it is almost impossible to reach this “Utopia” (pareto optimum) with institutional constraints such as monopoly and taxes. The second best solution then becomes the realistic and interesting problem few economists have paid attention to in the last two decades. In studying the second best theory, the following question arises: If a constraint, which prevents the satisfaction of at least one of the paretian conditons, is introduced into a general equilibrium system, which second best conditions depart from the corresponding paretian condition?
THE CROWDING‐OUT CONTROVERSY: AN EXAMINATION OF ITS PRESENT STATE
Authors: HECK JEAN L.
Published: January 2008

According to the Keynesian income determination model, as the level of expenditures is instantaneously increased through government or private investment a portion of that amount (b), the marginal propensity to consume, is immediately respent. This precipitates a perpetual turnover of each fractional amount throughout time such that the level of expenditures eventually amounts to (1/1‐b) times the initial increase in investment. The total impact on the level of income resulting from an increase in investment or government expenditures is called the multiplier. As derived in the macro‐economic models no leakages from the system to reduce the total impact are assumed, so that in reality the multiplier is considered to fall short of (1/1‐b).
A SURVEY OF PRICE EQUATIONS
Authors: DUK LIM JUNG
Published: January 2008

Inflation is really a hydra‐headed monster as Cagan named it. There have been numerous theoretical and empirical studies on the causes, costs and policies of inflation and unemployment. However, there has been no critical solution yet.
THE NEW AND IMPROVED CONSUMER BEHAVIOR THEORY: A COMMENT
Authors: TRUONG T.P.
Published: January 2008

In a recent article in this journal, Meadows claimed to have developed a “new and improved consumer behavior theory” which “eliminates the principal defect uncovered by Pollak and Wachter”, namely the defect of joint production. The purpose of this comment is to show that firstly, Meadows' concept of “joint production” is entirely different from that defined by Pollak and Wachter and understood by most other economists, and secondly, the “new and improved” method of Meadows is similar to an approach taken by DeDonnea which takes into account both household technology (as represented by production functions) and tastes (direct utilities) as relevant factors determining the household preference function, but which is still primarily a single production approach.
A DISCRIMINANT ANALYSIS OF DEVELOPMENT IN TEXAS
Authors: DE LA VINA LYNDA Y.
Published: January 2008

Increases in urbanization and mobility, as well as local government fiscal crises have altered the financing of local government expenditures. Intergovernmental transfer of funds has evolved as a major source of revenue for local government units. Intergovernmental transfers to subordinate governments are enacted by various fsical instruments: (1) direct transfer of funds through loans, categorical grants, and unrestricted grants; (2) sharing of the tax base through tax supplements, tax deducations, and tax credits; and (3) intergovernmental coordination of activities. Federal grants to state and local governments have rapidly increased: federal aid as a percentage of state and local sources of general revenue was 8 percent in 1942, 11 percent in 1948, 15 percent in 1965, and 20 percent in 1967. During this same period, the amount of annual state payments to local governments increased from 3.2 billion dollars to 19.1 billion dollars (although throughout the period the payments were a consistent fraction of the national total of states' expenditures). Local government finances for 1972–73 substantiate the importance of intergovernmental funding directed to the local public sector. The total intergovernmental revenue received by all local governments in the United States was 28.6 billion in 1972–73 with 23.3 billion emanating from state governments and 5.3 billion from the federal government. In 1972 Texas state government expenditure in transfers totaled 1.2 billion dollars.
A THEORY OF THE METHODOLOGY OF ECONOMICS
Authors: BLAINE ROBERTS R.
Published: January 2008

This paper presents a theory of the determinants of the methodology of economics. Following the useful distinction made by Papendreou (1958), theory is defined as comprising both a model and a probability statement as to the empirical validity of the model. Accordingly, first a model of the determinants of methodology of economics is presented and, then as an illustration, the model is applied to explain the major issues which have been debated in the recent literature on methodology. The paper concludes with a brief and simplified analysis of the evolution of methodology and some testable hypotheses are presented about the future course of the methodology of economics.
IN WHOSE BEST INTEREST? SYNTHETIC LIQUID FUEL POLICYMAKING
Authors: CLINGAN SANDRA
Published: January 2008

The U.S. Congress has been struggling to create a comprehensive energy program. A key component of the present attempt, recommended by President Carter, is a synthetic fuel program. In July of 1979, the President asked for an $88 billion “crash program” to encourage development of synthetic fuels. To date, a three month struggle to reach a consensus between House and Senate conferees has brought only limited results. Compromise is emerging in the form of a proposal for a “synthetic fuels corporation.” The body would have the authority to disperse $20 billion in the form of federal loan guarantees and purchase agreements with more money to become available later.
CONSUMER BEHAVIOR IN CONTRACEPTIVE CHOICE
Authors: BAUMGARDNER JAMES R.
Published: January 2008

Between 1965 and 1973 the percentage of married women practicing contraception in the United States increased from 64.2 to 69.9. This increase was accompanied by changing social values, increased information, and important technological innovations. The major technological innovations were the birth control pill and the Intrauterine Device (IUD), as well as new and safer techniques for female sterilization. The blossoming of private and public family planning programs in this period may also have been instrumental in the increased use of contraception.
PREDICTING RESIDENTIAL INVESTMENT
Authors: LEACHMAN LORI
Published: January 2008

Over the past decade economic activity in the United States has been extremely erratic. The economy has experienced high peaks and deep troughs in the business cycle. The first few years of 1970 were typically characterized by an economic recovery. The middle 1970's have been referred to as a recessionary period. Beginning in 1976 the economy once again experienced an upswing in economic activity which began to slow in 1979.
THE RELATIONSHIP BETWEEN INFLATION AND RELATIVE PRICES
Authors: HOLLIHAN MICHAEL
Published: January 2008

The literature concerning the subject of inflation and relative prices has been growing so fast in the last few years that a review in chronological order allows for a greater understanding of the subject. This approach is taken here.
DEMAND FOR LOCAL PUBLIC GOODS: EMPIRICAL TEST OF A MEDIAN VOTER MODEL FOR 205 COUNTIES IN THE U.S.A.
Authors: COSTA JOSE
Published: January 2008

This paper can be integrated in the set of studies that following the first work by Borcheding and Deacon have tested different specifications of Median Voter Models. The main innovation in this paper results from the use of a proxy variable for income distribution, in order to test in what degree the amount demanded of public goods reflects the existence of different income concentrations. An adjustment in the tax share for spatial tax incidence is also used. Finally, the fit of the model for counties above and under median population is analyzed allowing us to make some inference about the relationship between the adequacy of the analysis and “distance” between voters and representatives.
ON THE CONSUMER WELFARE EFFECT OF VERTICAL INTEGRATION: A GENERALIZATION AND SIMPLIFICATION FOR THE CES CASE
Authors: HANSEN ROBERT S.
Published: January 2008

Within the vertical integration literature, it is a long standing proposition that the market level price of a downstream product is invariant with respect to the vertical integration and subsequent monopolization of that downstream industry by a lone input monopolist, given that the downstream production process is a fixed proportions technology and that there is competition in all related relevant industries. Consequently, it has been argued that the consumer welfare effects of permitting integration and monopolization by the upstream monopolist are inconsequential. It is also well known that this vertical integration and downstream monopolization will not result in either a greater or a lesser total profit for the lone input monopolist. Thus, it is also argued that there is no incentive for the monopolist to integrate into the downstream industry and monopolize it, given the presence of the fixed proportions technology.
BRANCH BANKING RESTRICTIONS, COMPETITION, AND COMMERCIAL BANK PROFITS: A CROSS‐SECTIONAL STUDY
Authors: DAVID DILTZ J.
Published: January 2008

Many states still limit or prohibit commercial bank branching. In addition, the McFadden Act prevents banks from branching across state lines. It has been suggested that anti‐branching laws inhibit competition in the banking industry. This follows from the notion that bank markets are localized, and that anti‐branching laws prevent banks from penetrating local markets adjacent to their main offices. Two interesting hypotheses arise from this conjecture. First, do banks operating in unit‐banking states have a profit advantage over their counterparts in states that allow state‐wide branching? And second, is there any significant difference in profitability between banks in limited‐branching states and banks in state‐branching states? In other words, are there diminishing returns to branching deregulation? Research reported in this paper answers these questions.
THE PART‐TIME SOLDIER IN THE ALL‐VOLUNTEER FORCE
Authors: MCNAUGHT WILLIAM
Published: January 2008

The manning and readiness levels of the reserve forces have been a key issue in the debate of the efficacy of the All‐Volunteer Force (AVF) since the original recommendation for an AVF by the Gates Commission in 1969. General Maxwell Taylor (1981) has identified the AVF's principal failings as:
A SIMPLE MATHEMATICAL DEMONSTRATION OF THE HECKSCHER‐OHLIN THEOREM
Authors: SHANNON RUSSELL
Published: January 2008

A mainstay of conventional trade theory, the Heckscher‐Ohlin theorem, dates back to an article published in 1919 by the Swedish economist Eli Heckscher. Bertil Ohlin, a student of Heckscher's, developed the ideas in greater detail in 1933. A footnote in an article by Stolper and Samuelson specifically designated the “Heckscher‐Ohlin theorem” as such.
PREDATORY PRICING AND THE RECONSTITUTED LEMON JUICE INDUSTRY
Authors: ROSENBAUM DAVID I.
Published: January 2008

Current antitrust doctrine seemingly accepts average variable cost as one possible boundary between competitive and predatory pricing. Certain authors contend, however, that equally efficient rivals can sometimes be excluded from a market even when a dominant firm prices above its own average variable cost. A model is developed to test for predatory conduct in one such case. This model is applied to the reconstituted lemon juice industry. It shows that under certain conditions, even prices above average variable cost can be exclusionary.
ON DEFINING THE AGENCY COSTS OF DEBT
Authors: Gorman Raymond F.
Published: January 2008

Since Jensen and Meckling [1976] first introduced the concept of an agency cost of debt, most research on the agency cost of debt has centered on who bears these costs. Jensen and Meckling's original contention was that if bondholders have rational expectations, then the owner‐manager should bear the agency costs of debt. The alternative to this explanation was first offered by Barnea, Haugen and Senbet [1981] who claimed that because of the effects of agency costs on the supply of debt, these costs would be borne by the bondholders. Roberts and Viscione [1984] extend the analysis of Barnea, Haugen, and Senbet by including costly tax avoidance on personal and corporate levels to show that the agency costs of debt are shared by bondholders and owner‐managers.
EMERGENCY CURRENCY AND THE 1914 BANKING CRISIS: IMPLICATIONS FOR FINANCIAL DEREGULATION
Authors: WELLS DONALD R. , SCRUGGS L.S.
Published: January 2008

Professor Richard Timberlake (1984) recently suggested that the Federal Reserve System (Fed) was made unnecessary by the clearinghouse loan certificate (CLOC). This paper presents evidence that the Fed was rendered unnecessary by Aldrich‐Vreeland Act Currency (AVAC).
INTERFIRM VARIATION IN LIQUIDITY PREFERENCE
Authors: Dickey Steven W. , Vogel Robert C.
Published: January 2008

The topic of this paper is the modeling of the firm's demand for money relative to its portfolio of wealth. The specific goal of this research is the establishment of predictors of the business demand for money, which are normally neglected in aggregate models. Since the neglected predictors have aggregate counterparts, establishing their predictive power serves the purpose of improving the ability to predict the aggregate demand for money.
THE UPSIDE‐DOWN CALCULUS OF CURLY H: OR, MELVIN AND MONOTHEISM
Authors: Robson Arthur J.
Published: January 2008

Suppose God were a convex combination of Laplace and Jeremy Bentham. As did Laplace, God sees a world determined by differential equations and initial conditions,
OCCUPATIONAL MOBILITY IN A DYNAMIC ECONOMY: A NOTE
Authors: GRIMES PAUL W.
Published: January 2008

The process of occupational upgrading has received a significant amount of attention from labor economists in recent years. This is not surprising given that approximately ten percent of the American labor force will change occupations each year (Byrne, 1975; Rosenfeld, 1979) and that labor mobility is a vital element in both neoclassical (e.g. Rosen, 1979) and radical (see Cain, 1976) theories of labor maket behavior. Most of the empirical studies that deal specifically with occupational upgrading have been constrained to analyzing gross mobility occurring within a single time frame (e.g. Andrisani, 1973; Leigh, 1979; Steinberg, 1975). Due to limitations imposed by data availability, the mobility literature is deficient in empirical analysis of upgrading during periods of varying macroeconomic health. The purpose of this note is to report basic findings drawn from recently released data covering two distinct periods in time, which concern the degree of success experienced by workers who engage in occupational change. Additionally, attention will be placed in the differences in the pattern of occupational upgrading observed between white and black cohorts.
UNCOVERED INTEREST ARBITRAGE, PURCHASING POWER PARITY AND RISK PREMIUMS ON FOREIGN EXCHANGE
Authors: Turner Charlie G.
Published: January 2008

The research for this paper focuses on the implied expected exchange rates between the U.S. dollar and the Deutsche Mark. We use one year debt yield and one year inflation forecasts to derive expected exchange rates based on uncovered interest arbitrage and on the purchasing power parity relationship. We also explore the explanatory power of combinations of these two alternative expected exchange rates including what they might reveal regarding exchange rate premiums. Our results indicate that a combination of the two approaches which models a risk premium may be beneficial. We indicate some further work to be done along this line and provide a summary and conclusion based on the work reported here.
TESTING FOR COINTEGRATION IN CANADIAN LABOUR SUPPLY DATA
Authors: SADORSKY P.A.
Published: January 2008

In this paper, the neoclassical theory of labour supply and a neo‐Keynesian theory of labour supply are investigated and the equilibrium prediction of the two theories are tested using cointegration methods. The Granger and Engle two step procedure is applied to quarterly Canadian labour supply data. This approach suggests that the existence of an equilibrium relationship in the data should coincide with the existence of a cointegrating vector for the individually non‐stationary time series. No such vector can be found for the neoclassical model but such a vector can be found for the neo‐Keynesian model.
EQUILIBRIUM, INFORMATION AND EFFICIENCY ‐ THE CASE OF THE N.A.I.R.U.
Authors: JOHNES GERAINT
Published: January 2008

Much attention has been devoted in the recent literature to temporal variations in the non‐accelerating inflation rate of unemployment (N.A.I.R.U.). Grubb, Layard and Symons (1984) note that the N.A.I.R.U. has increased over recent years, this observation being based on data ranging across 19 O.E.C.D. countries, including the U.S.A., the U.K. and Japan. Hargreaves Heap (1980) argues that choosing a “wrong” natural rate ‐ that is, setting actual unemployment “too high” above the N.A.I.R.U. as part of a counter‐inflation policy ‐ can be damaging since it might itself raise the long‐run equilibrium level of unemployment. A variety of justifications is given for this assertion, among which the depreciation of the value of unemployed human capital is prominent.
THE SIMPLE ANALYTICS OF HABIT FORMATION
Authors: Eisenhauer Joseph G.
Published: January 2008

This paper simplifies and extends the literature on habit‐forming consumption. When addictive and nonaddictive goods are consumed, complements may become substitutes and normal nonaddictive goods may become inferior. Alternatively, when all goods are equally addictive, consumers favor goods with stable prices. Implications for product promotion and public policy are discussed.
WHEN IS A MINORITY INVESTMENT GOOD FOR THE INVESTEE?
Authors: Dawson Bogert James
Published: January 2008

This study explains variance in one‐year abnormal returns of corporate stockholder investees. Results indicate that investee abnormal returns are negatively associated with the extent of the corporate stockholder's initial percentage of ownership, but the investee abnormal return is positive when the investee is larger and the firms are contractually related.
THE LINK BETWEEN REDUCED AGENCY COSTS AND THE AT&T DIVESTITURE
Authors: Burson Timothy E. , Lippert Robert L.
Published: January 2008

The history and divestiture of the Bell System is of immediate importance to several economies around the globe, especially those undergoing the change from state owned operations to private ownership. Similarly, those economies experiencing rapid expansion of telecommunications can also learn from the experiences of AT&T's development, maturity, and subsequent divestiture. In addition to a brief history, this study examines preliminary empirical evidence which suggests agency costs, particularly those associated with free cash flow, were reduced following the divestiture.
LIQUIDITY REVISITED
Authors: Fraser Donald R. , Groth John C. , Byers Steven S.
Published: January 2008

This paper examines and updates an earlier study of the liquidity of an extensive array of common stocks traded on NYSE/ASE/NML‐NASDAQ. It reports apparent variances in liquidity due to trading location and other variables. The paper suggests causes for these differences.
INFLATION, PRODUCTIVITY, AND MONETARY POLICY: ARE THEY RELATED?
Authors: Saunders Peter J.
Published: January 2008

This paper investigates the short‐run and the long‐run relationship among productivity growth, inflation and monetary policy in the U.S. economy. Under the trivariate ECM analysis, the test results indicate that it is monetary policy which plays the predominant role in the relationship under investigation.
FACTORS AND THE PRICING OF IPO AFTERMARKET RETURNS
Authors: Morton Allen D.
Published: January 2008

This paper uses a multifactor logit model to analyze the aftermarket performance of randomly chosen IPO's in hot and cold markets. The theories of risk aversion and utility maximization, in conjunction with the paper's empirical results, suggest that cold market investors are more risk averse than are hot market investors.
The Performance of Roll‐Up Initial Public Offerings
Authors: Johnston Jarrod , Madura Jeff
Published: January 2008

Roll‐up initial public offerings (IPOs) create a company to consolidate a number of smaller companies in a fragmented industry. The company that results has limited operational experience and must combine several small and diverse companies. These characteristics may increase the uncertainty of the offer. We find that roll‐up IPOs have higher initial returns than traditional IPOs, implying additional uncertainty. Additionally, roll‐up IPOs do not perform as poorly as other IPOs over the long run. This may be due to benefits from economies of scale and a higher degree of monopoly power.
Empirical Evidence on the Impact of European Insider Trading Regulations
Authors: Estrada Javier , Peña J.Ignacio
Published: January 2008

Between 1988 and 1994 ten European countries introduced or modified their regulations on insider trading. We evaluate in this article the impact of such regulatory changes on the risk, return, and some other characteristics of these ten markets. After extensive testing, we find that the evidence suggests that these regulations have had little (if any) impact on the market characteristics we examine, and briefly speculate about the reasons that justify our findings.
REVEALING THE MARKET PRICE OF RISK FROM THE SHORT‐TERM RATE PROCESS
Authors: GEORGEV GEORGI , JUNG JAY , KAZEMI HOSSEIN B. , MAHDAVI MAHNAZ
Published: January 2008

This paper shows that for a large class of single and multi‐factor term structure models, including the affine class, the market price of risk is directly related to the parameters of the stochastic processes of the underlying factors of the economy. It is shown that the market price of risk is proportional to the limit of the volatility of zero coupon bond returns. This means that the market price of risk is not entirely arbitrary. Not only it must be consistent with no arbitrage conditions, also it must be consistent with the parameters of stochastic processes of the factors that describe the economy. If the market price of risk is not correctly specified, then it could lead to profit opportunities of the type discussed in Backus et al (1996). Another consequence of our result is that in empirical tests of interest rate processes, the market price of risk should not be specified exogenously since its value is a function of the parameters of the model. We extend our result to forward processes. The market price of risk is shown to be a function of the volatility of the forward rate processes.
THE DETERMINANTS FOR STOCK RETURNS IN EMERGING MARKETS: THE CASE OF TAIWAN
Authors: CHEN ANLIN , TU EVA H.
Published: January 2008

Whether the risk factors or firm characteristics cause the value premium of stocks still needs further investigation. This paper shows that the factor‐based models are significant but not sufficient for the stock returns in Taiwan. Size or book‐to‐market ratio alone cannot influence the stock returns under a factor‐based model. However, size along with book‐to‐market is significant under a factor‐based model. Furthermore, the risk characteristics are more influential than the factor load in stock return behavior. We conclude that employing only a factor‐based model or only risk characteristics will not consider some important content in stock returns.
THE FISHER INFORMATION MEASURE AND TESTING MARKET EXPECTATIONS
Authors: TIRTIROĞLU ERCAN , TIRTIROĞLU DOĞAN
Published: January 2008

In an efficient market, where the participants form their expectations rationally, all potential changes induced by a predictable event are incorporated into the asset prices before the uncertainty relating to the outcome of the event is resolved. This paper develops a methodology to test whether temporal prices of fixed income assets reflect market efficiency. The methodology developed employs the Fisher information measure, which is couched within the framework of a moving variance process. We empirically demonstrate the methodology for U.S. Treasury's first exercise, in three decades, of its option to call (on October 09, 1991) one of its outstanding callable bonds. Empirical results indicate a delayed market reaction.
Applying Utility Analysis to Guide Decisions on Selection System Content
Authors: HOFFMAN CALVIN C.
Published: January 2008

This case study describes an application of utility analysis to guide decisions regarding retention and operation of various selection system components (i.e., tests and interviews). Selection processes for two “high throughput” selection systems (Meter Reader and Customer Service Representative) were examined to improve cost effectiveness and reduce cycle time (time to produce qualified candidates). Based on utility outcomes and client considerations, the interview was retained with modifications in one selection process, and deleted from the other. Insights gained from gathering data needed to conduct the utility analysis helped guide further refinements of the selection systems in which the tests and interviews were applied, drastically reducing the time needed to fill open positions.
An empirical comparison of two utility analysis models
Authors: LEZOTTE DANIEL V. , RAJU NAMBURY S. , BURKE MICHAEL J. , NORMAND JACQUES
Published: January 2008

This study compared per selectee utility estimates for the job of medical claims examiner based on applications of the Brogden‐Cronbach‐Gleser (BCG) and Raju‐Burke‐Normand (RBN) utility analysis models. The RBN model's per selectee utility estimate, based on a transformed observed performance rating standard deviation (σR), was closest to the per selectee utility estimate computed with an empirically‐derived σY value. The implications of these results for estimating human resource program utility are discussed.
Employee Artefacts on the Balance Sheet: Model Illustration and Implications
Authors: GRÖJER JAN‐ERIK
Published: January 2008

If we cannot explain goodwill and potential goodwill in asset terms, they do not make sense. A partial explanation can be found in human assets or employee artefacts. A balance sheet model including employee artefacts is illustrated, and the consequences on the balance sheet and related financial key ratios are substantial. The inclusion of employee artefacts on the balance sheet (1) seems to make sense, (2) but it is still unclear if the inclusion will make organizations “better.” Even though the development of the balance sheet model is done in accordance with generally accepted accounting principles, it seems to (3) challenge the (elite) social order in organizations.
How to Place Human Resources into the Balance Sheet?
Authors: DOBIJA MIECZYSLAW
Published: January 2008

Progress in human resources accounting must continue to find a clear constructive definition of terms pertaining to human capital and human assets. The present paper is comprised of considerations leading to the proposal of more general definitions of capital that involve human capital. As a complement to Fisher's concept of capital measurement, the present definition explains capital based on the capitalization process. Capitalization should be viewed as an essential attribute of capital. Human resources accounting (HRA) can benefit from improvements in the definition of certain terms related to human capital. Of particular importance is a proposal of a more general definition of capital. The definition leads to an alternative measure,which is more useful in the HRA field than the Lev‐Schwartz model. The proposed measure compliments Fisher's concept of capital measurement and utilizes a compound interest approach. Capital is perceived as a value of economic means capitalized in physical and human resources. The rate of capitalization is determined through natural and social conditions of the environment. The mode of capital measurement results from the above definitions. Moreover, the measure of human capital appears as a generalization of the historical cost concept. The valuation model of human capital involves capitalized costs of living, costs of professional education and value of experience measured by a slightly modified learning curve. Having human capital redefined and measured in these terms, we can introduce human resources into the balance sheet using a set of relevant journal entries.
The Future World of Work: Implications for Human Resource Costing and Accounting
Authors: CASCIO WAYNE F.
Published: January 2008

The world of work is rapidly changing and a number of immutable trends are provided showing how performance between leavers and their replacements can be determined. The concept of intellectual capital is also analysed and its accounting implications are considered. Intellectual capital is defined in terms of human, customer, and structural capital measures and examples are given as to how each of these concepts can be measured in working life.
Working Time and Work Organisation: Recent Trends in Working Time
Authors: BOSCH GERHARD
Published: January 2008

The paper analyses the interrelation between working time and work organisation in Europe. This interrelation can be considered from the point of view of either employers or employees. For employers, it is becoming increasingly important today to adjust working time quickly to the order situation and to make intensive use of expensive plant and equipment. However, employees' working‐time preferences have also changed. A key factor in this respect is the increasing level of labour market participation among women, as well as growing interest in leave for further training or a phased entry into or exit from working life. The working‐time requirements of firms and those of employees do not necessarily coincide. To create sustainable working‐time structures, it is necessary to develop working‐time systems capable of reconciling the needs of firms and those of employees. A process of experimentation is currently under way in many firms in Europe. Some firms that rely on specialist knowledge and competencies are trying to increase working‐time flexibility in their core workforce while simultaneously considering their employees' interests. In other firms, however, particularly in labour‐intensive service industries dominated by price competition, Taylorism is still reinforced. Little account is taken of employees' interests. The process of “neo‐Taylorisation” is driven not by production but by the labour market. It is possible only because of the existence of wage differentiation and the availability in the labour market of a large pool of workers who can be deployed flexibly. This pool varies in size from country to country. It is all the larger the wider the wage dispersion, the lower the level of labour market regulation, the lower the share of skilled workers, the higher the unemployment rate, the higher the level of migration of unskilled workers into Europe and the lower the level of female integration into the labour market.
Experiments of Reduced Working Hours in Finnish Municipalities
Authors: NÄTTI JOUKO , ANTTILA TIMO
Published: January 2008

This article examines experiments with shorter working hours in Finnish municipalities between 1996 and 1998. The article focuses on the effects of different working time experiments on employees (work ability), on working units (quality of services) and substitutes recruited during the experiments. The results indicate that shorter working hours reduce job exhaustion, with respect to both 6‐hour shifts and other forms of reduced hours. The participants reported positive changes the quality and availability of services, especially in the case of 6‐hour shifts. In addition, during the experiment, new employees (substitutes) reported improved chances to obtain work in the future; after the experiment, however, only small a proportion of these employees were able to procure a new job. The analysis was based on three kinds of questionnaire data. First, in the three municipalities (Jyväskylä, Naantali and Espoo) — supported by the European Social Fund (ESF) — three‐phased panel data included 75 experimental and 42 control group participants. The second set of data was gathered in the other 14 municipalities implementing different working time experiments with a two‐phased questionnaire (panel data without control groups, n = 567). The third set of data included new employees (substitutes) recruited during the experiment in the three ESF municipalities and in Saarijärvi (n = 66).
Value‐Based Management: Performance Measurement Systems for Human Resources
Authors: ÁLVAREZ‐DARDET CONCHA , CUEVAS‐RODRÍGUEZ GLORIA , VALLE‐CABRERA RAMÓN
Published: January 2008

This his paper focuses on a specific aspect of Value‐Based Management (VBM), the design of performance measurement systems. This remains an important challenge not only in Management Accounting but also in Human Resources Management. Performance measurement on various levels of organisation should be aligned to value creation, and management compensation should be tied to the achievement of targets set to these measures according to VBM proponents. In the present article definitions of concepts and issues associated with the design of performance measurement systems are discussed. Furthermore, the paper presents a review of four tools available to measure and manage intangible resources: human resource accounting, economic value‐added (EVA), balanced scorecard (BSC) and intellectual capital (IC). The role of non‐financial measures is also analysed from a VBM framework. Finally, some concluding remarks are highlighted in the last section.
From Learning to Practical Use and Visible Results: A Case in Competence Development from a Norwegian Business Firm
Authors: SANDERVANG ARNE
Published: January 2008

Measuring the results of competence development on business results seems to be a complicated and almost insuperable step for many businesses. International research presents us with a huge material showing the relevance and validity of the different ways of measuring effects from competence development on organisational outcome. Yet, it seems as though the practitioner relies on an accidental positive outcome more than on a planned and guided learning process where the economic results of the training are measurable. In this case from a Norwegian business firm, I adopt a method of approach that may help organisations to develop their competence through calculating the financial return on their investments in competence development. There seems to be a great potential for higher earnings from competence investments and more reliable measurements of results if the practitioners are willing and able to use some suitable and relatively simple methods.
Policy and Company Perspectives for IC Reporting
Authors: JENSEN HENRIK
Published: January 2008

Today, many IC approaches and company cases of IC reporting exist, but a common framework is lacking. This article explains policy and business perspectives for IC reporting and analyses the current IC approaches for defining essential drivers and policy strategies for such a framework. Focusing on external reporting and ‘value in use/stakeholder’ criteria is seen as a set of drivers that can combine policy and company perspectives and at the same time ensure involvement of a larger part of the business community and a framework recognisable to users of IC reports.
Utility Analysis for Multiple Selection Devices and Multiple Outcomes
Authors: STURMAN MICHAEL C.
Published: January 2008

Traditional utility analysis only calculates the value of a given selection procedure over random selection. This assumption is not only an inaccurate representation of staffing policy but also leads to overestimates of a device's value. This paper presents a more accurate method for computing the validity of a selection battery for when there are multiple selection devices and multiple criteria. Application of the method is illustrated using previous utility analysis work and an actual case of administrative assistants with eight predictors and nine criteria. A final example also is provided that includes these advancements as well as other researchers' advances in a combined utility model. Results reveal that accounting for multiple criteria and outcomes dramatically reduces the utility estimates of implementing new selection devices.
Perceptions of Intellectual Capital: Irish Evidence
Authors: O'REGAN PHILIP , O'DONNELL DAVID , KENNEDY TOM , BONTIS NICK , CLEARY PETER
Published: January 2008

Recent market volatility has provided a fundamental challenge to those arguing for the central role of intellectual capital as a source of organisation value. Using perceptual data relevant to the importance of intellectual capital as a source of enterprise value gathered in two studies conducted before and after the recent market ‘downturn’ respectively, this paper provides empirical evidence in support of the continuing and central importance of intellectual capital. The findings from these two studies also demonstrate consistency in the composition of the human, internal and external components of intellectual capital. The Irish software/telecom sector provides an ideal research frame work for any such investigation. In recent years Ireland has established itself as the largest software exporter in the world and this sector has been one of the primary engines of growth in an economy that has experienced real growth of over 40% in 6 years, a rate unparalleled in the developed world.
Putting Balance and Validity into the Balanced Scorecard
Authors: FLAMHOLTZ ERIC G.
Published: January 2008

The Balanced Scorecard (BSC), popularized by Kaplan and Norton (1996a, 1996b), has become widely discussed and used (see, for example, Olsson, Karlsson, & Sharma, 2000). The basic notion of the BSC is that organisational performance ought to be evaluated from more than simply a financial perspective. This notion is sound and was an improvement over the traditional focus upon only financial performance. However, there is a fundamental problem with the version of the BSC proposed by Kaplan and Norton (1996b). Specifically, the Balanced Scorecard version proposed by Kaplan and Norton (1996b) is based upon the notion that “four perspectives” ought to be used to evaluate organisational performance: customer, internal business processes, learning and growth and financial. While this has intuitive appeal, the basic problem is that Kaplan and Norton (1996a, 1996b) have not provided any empirical support for these particular “perspectives.” We do not know whether these are the correct perspectives to be used as a basis for assessing organisational performance. This can have serious consequences for organisations. Managers are implicitly being encouraged to focus upon these four factors, when others might be more significant. In addition, this paper also questions the meaningfulness of the four perspectives proposed by Kaplan and Norton in terms of their construct validity. This is not just an academic quibble. The significance is that if the factors used in a strategic management system, such as a BSC, are invalid, managers can focus upon the wrong things and this, in turn, can potentially be damaging to companies, investors, and in turn, optimal societal resource allocation. Instead of the four perspectives proposed by Kaplan and Norton, there is evidence that there are actually six “key strategic building blocks” of successful organisations (Flamholtz, 1995; Flamholtz & Aksehirili, 2000; Flamholtz & Hua, 2002), and these should be used (in addition to financial results) to provide true balance for both performance measurement and strategic management. This should not be viewed as invalidating the original concept of the Balanced Scorecard, but rather as the next logical generation or iteration of its development.