cssi/SciSciGPT-SciSciNet huggingface dataset:
Does Common Analyst Coverage Explain Excess Comovement

This article shows that correlated errors in news about fundamentals are an important, rational determinant of excess comovement. Individual analysts’ forecast errors tend to be correlated across stocks. Using a proxy for correlated forecast errors based on analyst coverage, I find that stocks with similar sets of analysts exhibit more excess comovement, controlling for industry and other variables. Exogenous changes in commonality in analyst coverage around i) brokerage firm mergers and ii) additions to an index lead to changes in excess comovement. This information channel explains 10% to 25% of the increase in comovement around additions to the S&P 500 index.
Privacy for the Working Class: Public Work and Private Lives

Privacy has become the law’s chameleon, simultaneously everywhere and nowhere. This is particularly true of the workplace where employees often seek some private space but where the law, particularly the formidable employment-at-will rule, typically frustrates that search. As the workplace has expanded both in its scope and importance, additional concerns have been raised about an employer’s potential reach outside of the workplace. In this symposium contribution, I explore the privacy issue by asking a fundamental question: what do employees deserve? My answer is that, as a matter of policy, we ought to concede privacy issues as the employer’s domain at the specific workplace. This is, in part, because for most employees workplace privacy is not a central concern and the justifications for broad protections of workplace privacy are often quite weak. While conceding the workplace as the employer’s domain, I also advocate creating a strict barrier to employer encroachments outside of the workplace so that employers would not be able to interfere with the off-work activity of their employees absent some compelling justification. This would include circumstances in which employers provide employees with computers or other gadgets that employees are permitted to use outside of the workplace. Privacy for the Working Class: Public Work and Private Lives
Liquidity and firm characteristics: Evidence from mergers and acquisitions ☆

Abstract We explore factors affecting liquidity by examining the relation between liquidity changes and changes in firm characteristics around mergers and acquisitions. We find that spreads decline as the number of analysts, number of shareholders, number of market makers, firm size, and volume increase or as volatility decreases. Increased volume and firm size, and decreased volatility, are associated with increased depth. We find no evidence diversifying and non-diversifying mergers affect liquidity differently. We note that mergers and acquisitions are associated with reductions, on average, in spreads but that the reductions are fully explained by the accompanying changes in firm characteristics.
Asocial Media: Cops, Gangs, and the Internet

Criminal street gangs are not a new phenomenon in America, but recent developments in technology and social interactions have changed the game -- gangs are increasingly using social media to accomplish gang objectives and commit crimes. This is no secret to law enforcement. In fact, police departments and prosecutors regularly use the Internet and social media networks to obtain incriminating evidence against gang members -- evidence that is often ruled admissible in court. Although the majority of the information seized in these investigations is highly personal and profoundly private, the details of the government’s specific data-collection and data-storage practices remain shrouded in secrecy due to a glaring lack of regulation and transparency.Such clandestine government policies create a slippery slope -- one that could potentially transform the American society into a dystopia. Law enforcement is not necessarily breaking any specific laws through its current investigative and data-mining practices. But perhaps it should be.This Note argues that law enforcement is properly using social media to investigate active cases and past crimes, and, when brought to its attention, to prevent imminent crime. However, law enforcement is dangerously toeing the line of constitutionality by collecting the personal data of non-suspects (and their purported affiliations or associations with a gang), and congressional guidance is needed to monitor these Orwellian practices. Accordingly, this Note focuses on the government’s unregulated digital surveillance of suspected gang members and their associations, and the potential chilling effect that such practices may have on the First Amendment rights to free speech and association.Specifically, Part IV.A asserts that the current shadowy state of the law regarding law enforcement’s investigations and data-collection procedures leads to unbridled surveillance practices that lurk precariously close to the point of violating the Constitution. To prevent constitutional violations and the ensure that digital evidence remains admissible, Part IV.B proposes a federal statute that requires uniform reporting procedures for social media that would allow evidence of gang-related crime to be communicated to the administrator, who would then be directed to follow internal procedures and potentially notify law enforcement if the evidence of a crime is credible. But social media networks’ policies must be clear, which the proposed legislation will ensure.The proposed statute further grants law enforcement the positive authority to collect data from social media administrators and the individual users’ ISPs, if there is probable cause to believe that a crime has occurred, or there is a reasonable probability of "imminent lawless action." The statute explicitly prohibits data-collection based on a user’s mere affiliation or association with a gang or gang member. This comports with the freedom of association, and, thus, the statute should be upheld if challenged on such grounds.
The International Criminal Court and the Closure of the Time-Limited International and Hybrid Criminal Tribunals

The International Criminal Court (ICC) and the international and hybrid criminal tribunals – such as the International Criminal Tribunals for the Former Yugoslavia and Rwanda (ICTY and ICTR) and the Special Court for Sierra Leone (SCSL) - are all part of an interlinked network of international criminal justice. One significant difference between the ICC and these other tribunals is that the ICC is a permanent institution while the ICTY, ICTR and SCSL are all time-limited. The establishment of temporary international criminal tribunals has given rise to complex legal, technical, and political questions regarding the legal and practical obligations that continue after closure. These obligations are usually referred to as “residual issues” or “residual functions”. This article begins by discussing four central residual functions: the trial of fugitives; the ongoing protection of victims and witnesses; the supervision of enforcement of sentences; and the preservation and protection of, and provision of controlled access to, tribunal archives. This article then turns to a discussion of the residual issues which are also of concern to the ICC. While the ICC is a permanent institution and therefore does not face the same residual issues as the ICTY, ICTR and SCSL, it will at some point in time end its involvement in each of its situation countries and cases. As it does so, the ICC will face some of the same residual issues. For example, it will need to address how it will continue to provide victim and witness protection once it closes down its field office(s) in the situation country. The ICC will also need to consider how to provide continued access to public archival information to the affected populations, without necessarily assuming that they have internet access or can travel to the ICC’s headquarters in The Hague, Netherlands. This article concludes that the ICC’s planning for its own residual issues can be assisted by considering the lessons learned from similar planning for the ICTY, ICTR and SCSL. For example, the ICC may benefit by keeping a field presence in or near to the affected communities in the years following the completion of its investigations and cases in a situation country. This field presence can continue witness protection work, and can also provide access to public archival information. In so doing, the ICC can also help to protect its legacy. Proper “completion” planning for the ICC for its situation countries and cases is important - just as for the ICTY, ICTR and SCSL, if the ICC simply closes operations and walks away from a situation country, the positive effects of its work could be undermined and future cooperation by witnesses and others with the Court (including in other situations countries) could be jeopardized.
Thin subgroups isomorphic to Gromov–Piatetski-Shapiro lattices

In this paper we produce many examples of thin subgroups of special linear groups that are isomorphic to the fundamental groups of non-arithmetic hyperbolic manifolds. Specifically, we show that the non-arithmetic lattices in $\mathrm{SO}(n,1)$ constructed by Gromov and Piatetski-Shapiro can be embedded into $\mathrm{SL}_{n+1}(\mathbb{R})$ so that their images are thin subgroups
Bank Competition, Risk Taking, and their Consequences: Evidence from the U.S. Mortgage and Labor Markets

Bank competition can induce excessive risk taking due to risk shifting. This paper tests this hypothesis using micro-level U.S. mortgage data by exploiting the exogenous variation in local house price volatility. The paper finds that, in response to high expected house price volatility, banks in U.S. counties with a competitive mortgage market lowered lending standards by twice as much as those with concentrated markets between 2000 and 2005. Such risk taking pattern was associated with real economic outcomes during the financial crisis, including higher unemployment rates in local real sectors.
Earnings Restatements, the Sarbanes-Oxley Act, and the Disciplining of Chief Financial Officers:

We investigate involuntary chief financial officer (CFO) turnover following earnings restatements, the labor market penalties imposed on former restatement-firm CFOs, and whether these disciplinary consequences have increased following the passage of the Sarbanes-Oxley Act of 2002 (SOX). Our results suggest that relative to a control group of non-restating firms, firms restating earnings have higher rates of involuntary CFO turnover, and that former restatement-firm CFOs face stiff labor market penalties. We generally find that the passage of SOX has not increased involuntary CFO turnover rates following restatements. However, we find that labor market penalties for former CFOs of restatement firms are more severe in the post-SOX period, suggesting that SOX has increased ex post settling-up costs. Our results suggest that the influence of SOX on the labor market has resulted in CFOs being held more accountable for their actions.
Valuing public goods using happiness data: The case of air quality☆

Abstract This paper describes and implements a method for valuing a time-varying local public good: air quality. It models survey respondents' self-reported happiness as a function of their demographic characteristics, incomes, and the air pollution and weather on the date and in the place they were surveyed. People with higher incomes report higher levels of happiness, and people interviewed on days with worse local air pollution report lower levels of happiness. Combining these two concepts, I derive the average marginal rate of substitution between income and current air quality — a compensating differential for short-term changes in air pollution.
The expected value premium

Abstract Fama and French [2002. The equity premium. Journal of Finance 57, 637–659] estimate the equity premium using dividend growth rates to measure expected rates of capital gain. We apply their method to study the value premium. From 1945 to 2005, the expected value premium is on average 6.1% per annum, consisting of an expected dividend growth component of 4.4% and an expected dividend price ratio component of 1.7%. Unlike the equity premium, the value premium has been largely stable over the last half century.
Event Jurisdiction and Protective Coordination: Lessons from the September 11th Litigation

Shortly after the tragic events of September 11, 2001, Congress passed the Air Transportation Safety and System Stabilization Act (ATSSSA). The September 11th Victim Compensation Fund (VCF) was the centerpiece of the statute and provided a source of no-fault compensation to the tragedy's victims and victims' families. The ATSSSA also allowed victims to elect to pursue traditional litigation instead. The ATSSSA contains three jurisdictional features that have shaped the path of the litigation. The Act created a federal cause of action "for damages arising out of" the terrorist related aircraft crashes; it gave the Southern District of New York original and exclusive jurisdiction over all actions "resulting from or relating to the terrorist-related aircraft crashes." Finally, it implemented a liability cap by limiting recovery in all actions to the defendants' available liability insurance. These jurisdictional aspects of the "traditional" litigation option under the ATSSSA contain unusual and practically unprecedented elements, yet they have received almost no scholarly attention. This Article attempts to fill that gap by telling the story of the course of the September 11th litigation, tracking the challenges and issues that have arisen as a result of the ATSSSA coordination mandate, and exploring the relationship between federalization of forum and aggregation of claims. The jurisdictional puzzles seen in the September 11th litigation call for two new labels. "Event jurisdiction" refers to Congress's choice to give the federal courts subject matter jurisdiction over an "event" of perceived national importance, rather than locating subject matter jurisdiction over a certain class of cases or type of claim. The second phenomenon deserves the label "protective coordination" because, like protective jurisdiction, it evinces a congressional desire to protect certain real or perceived federal interests by manipulating the shape and direction of certain classes of lawsuits. The Article concludes by suggesting how Congress might better evaluate post-disaster litigation legislation in the future.
Reuniting 'Is' and 'Ought' in Empirical Legal Scholarship

INTRODUCTION 118 I. RELATING THE MEASURABLE TO THE GOOD 123 A. Normative Metrics 123 B. Medical Research 124 C. Economics 126 D. Empirical Legal Scholarship 127 II. JUDICIAL CITATION COUNTS 130 III. REVERSAL RATES 139 IV. MEASURING THE RULE OF LAW: STUDIES OF INTERJUDGE DISPARITY 146 A. The Normative Implications of Disparity 148 B. Consistency, Predictability, and Comparative Justice 149 C. Determinacy and Correctness 151 D. Conclusion 153 V. BRIDGING THE GAP BETWEEN ‘IS’ AND ‘OUGHT’ 154
Why law pervades medicine: an essay on ethics in health care.

Increasingly law has come to pervade medical practice, and increasingly doctors have come to resent its presence in so many aspects of their professional lives. This essay is an effort to foster dialogue and understanding between lawyers and doctors (and other health care professionals) at the point where their respective professions often intersect: ethics. It is particularly targeted to health care audiences. Using examples from patients rights and organizational ethics, the essay illustrates how law often reflects at least a temporary societal consensus on ethics. When law becomes society's primary enforcer of ethical views, however, its presence can impede ethical reflection on the very issues it was called upon to address. This essay illustrates this paradox in the context of informed consent and corporate compliance. Too often, health care providers concern for compliance with legal minimums has proven an impediment to further reflection on ethical maximums. The law itself, however, has never taken it out the hands of health care professionals to strive for the ethical high ground. Yet unless they continually do so strive, the law will become ever more pervasive throughout their institutions and their professions.
The Theory and the Facts of How Markets Clear: Is Industrial Organization Valuable for Understanding Macroeconomics?

6. Summary This chapter has presented a survey of what industrial economists know about how markets clear. The evidence on price behavior is sufficiently inconsistent with the simple theories of market clearing that industrial economists should be led to explore other paradigms. The most useful extensions of the theory will be those that recognize that marketing is a costly activity, that an impersonal price mechanism is not the only device used to allocate goods, and that price methods in conjunction with non-price methods are typically used to allocate goods. Exactly what macroeconomists can learn from all this is less clear to me. Since both macroeconomists and industrial economists are interested in the same question of how markets clear, I have no doubt that there is the potential for the two groups to influence each other's research. Whether that potential is realized depends in part on how some of the new areas of research in industrial organization develop.
A degeneracy bound for homogeneous topological order

We introduce a notion of homogeneous topological order, which is obeyed by most, if not all, known examples of topological order including fracton phases on quantum spins (qudits). The notion is a condition on the ground state subspace, rather than on the Hamiltonian, and demands that given a collection of ball-like regions, any linear transformation on the ground space be realized by an operator that avoids the ball-like regions. We derive a bound on the ground state degeneracy $\mathcal D$ for systems with homogeneous topological order on an arbitrary closed Riemannian manifold of dimension $d$, which reads \[ \log \mathcal D \le c \mu (L/a)^{d-2}.\] Here, $L$ is the diameter of the system, $a$ is the lattice spacing, and $c$ is a constant that only depends on the isometry class of the manifold, and $\mu$ is a constant that only depends on the density of degrees of freedom. If $d=2$, the constant $c$ is the (demi)genus of the space manifold. This bound is saturated up to constants by known examples.
On Public versus Private Provision of Corporate Law

Law in modern market societies serves both democratic and economic functions. In its economic function, law is a service, a means of enhancing the value of transactions and organizations. Yet modern market economies continue to rely on the state, rather than the market, to provide this service. This paper investigates whether private provision of law may be superior to public provision. We look in particular at corporate law, where there is a substantial literature exploring the efficiency implications of "regula- tory competition" and compare this competition with market competition between private providers. Drawing from the well-known framework of spa- tial models of imperfect competition, we argue that while neither public nor private competition may lead to the optimal corporate law regimes, there are at least some reasons to believe that private provision may be prefer- able. Specifically, we present a model that demonstrates in which regulatory competition is likely to produce widespread emulation, and little innovation. Private competition, in contrast, is more likely to lead to greater "product" differentiation, which benefits heterogeneous consumers of corporate law ser- vices in the short term. Moreover, such differentiation also has long-term benefits, as providers are able "learn" more about business organizations' demand-side characteristics, and thus tailor their services to business needs more effectively.
Transplants and Timing: Passages in the Creation of an Anglo-American Law of Slavery

This Article applies the concept of "legal transplant" to the slavery regimes that sprang up in all regions of settlement during the first two centuries of English colonization of mainland America. Using a distinction between "extrastructure" and "intrastructure," we can divide the Anglo-American law of slavery into discourses of explanation/justification and technologies of implementation. The two components were produced from distinct sources. English law possessed few intellectual resources that could be mobilized to justify and explain slavery as an institution. Here we find the law of nature and nations uppermost. English law offered many resources, however, for the management, distribution and control of movements of people. Thus, the Anglo-American law of slavery combined two transplanted resources within itself. As colonial settlements turned into slave societies, local innovations increasingly supplemented original transplants, compensating for their deficiencies and limitations and becoming, in turn, a third species of transplant. Assembly laws moved from colony to colony, creating commonalities within regions of settlement, and also — more interestingly — among regions usually thought quite distinct. Together the three species of transplants created densely instrumental slave regimes that enumerated all the ways in which summary mutilations and executions defined the slave’s life on the edge of death.
Corporate Governance Externalities

When firms compete in the managerial labor market, the choice of corporate governance by a firm affects, and is affected by, the choice of governance by other firms. Firms with weaker governance offer managers more generous incentive compensation, which induces firms with good governance to also overpay their management. Due to this externality, overall level of governance in the economy can be inefficiently low. Poor governance can in fact be employed by incumbent firms to deter entry by new firms. Such corporate governance externalities have important implications for regulatory standards, ownership structure of firms, and the market for corporate control.
Optimal payout ratio under uncertainty and the flexibility hypothesis: Theory and empirical evidence

Abstract Following the dividend flexibility hypothesis used by DeAngelo and DeAngelo (2006), Blau and Fuller (2008), and others, we theoretically extend the proposition of DeAngelo and DeAngelo (2006) optimal payout policy in terms of the flexibility dividend hypothesis. In addition, we also introduce growth rate, systematic risk, and total risk variables into the theoretical model. To test the theoretical results derived in this paper, we use the data collected in the US from 1969 to 2009 to investigate the impact of the growth rate, systematic risk, and total risk on the optimal payout ratio in terms of the fixed-effect model. We find that based on flexibility considerations, a company will reduce its payout when the growth rate increases. In addition, we find that a nonlinear relationship exists between the payout ratio and the risk. In other words, the relationship between the payout ratio and the risk is negative (or positive) when the growth rate is higher (or lower) than the rate of return on total assets. Our theoretical model and empirical results can therefore be used to identify whether flexibility or the free cash flow hypothesis should be used to determine the dividend policy.
The Formation of the Caribbean Court of Justice: The Sunset of British Colonial Rule in the English Speaking Caribbean

* Leonard Birdsong is an Associate Professor of Law at Barry University School of Law, Orlando, Florida. He was a visiting Associate Professor of Law at Wake Forest University School of Law, Winston Salem, North Carolina, for the fall 2004 semester where he completed work on this article. He received his B.A. (Cum Laude) at Howard University and his J.D. from Harvard Law School. He served as an Assistant U.S. Attorney for the District of Columbia, and also served as a Special Assistant U.S. Attorney for the U.S. Virgin Islands. He later served with the U.S. State Department as an American Consul in Hamburg, Germany, and Nassau, Bahamas. He teaches Immigration and Criminal Law, as well as Evidence and White Collar Crime. He occasionally appears as a legal analyst and commentator for Fox News, Court TV, and MSNBC. Professor Birdsong, who follows legal developments in the English Speaking Caribbean, wishes to thank Reference Librarians Warren McEwen and Ann Pascoe of the Barry University School of Law Library for their research assistance in preparation of this article.
Separating microstructure noise from volatility

There are two variance components embedded in the returns constructed using high frequency asset prices: the time-varying variance of the unobservable efficient returns that would prevail in a frictionless economy and the variance of the equally unobservable microstructure noise. Using sample moments of high frequency return data recorded at different frequencies, we provide a simple and robust technique to identify both variance components. In the context of a volatility-timing trading strategy, we show that careful (optimal) separation of the two volatility components of the observed stock returns yields substantial utility gains.
Cooperation among strangers: an experiment with indefinite interaction

We study the emergence of norms of cooperation in experimental economies populated by strangers interacting indefinitely and lacking formal enforcement institutions. In all treatments the efficient outcome is sustainable as an equilibrium. We address the following questions: can these economies achieve full efficiency? Which institutions for monitoring and enforcement promote cooperation? Finally, what classes of strategies are employed to achieve high efficiency? We find that, first, cooperation can be sustained even in anonymous settings; second, some type of monitoring and punishment institutions significantly promote cooperation; and, third, subjects dislike indiscriminate strategies and prefer selective strategies.
Plabic graphs and zonotopal tilings

We say that two sets $S,T\subset\{1,2,\dots,n\}$ are chord separated if there does not exist a cyclically ordered quadruple $a,b,c,d$ of integers satisfying $a,c\in S-T$ and $b,d\in T-S$. This is a weaker version of Leclerc and Zelevinsky's weak separation. We show that every maximal by inclusion collection of pairwise chord separated sets is also maximal by size. Moreover, we prove that such collections are precisely vertex label collections of fine zonotopal tilings of the three-dimensional cyclic zonotope. In our construction, plabic graphs and square moves appear naturally as horizontal sections of zonotopal tilings and their mutations respectively.
Commentary: Time To Hug a Bureaucrat

This panel, “Regulatory Aspects of Internet Governance,” unites three of the most serious, detail-oriented scholars of the regulation of information technology. Indeed, the three papers in this session share a commitment to detailed descriptions of regulatory regimes. Professor Weiser’s1 and Professor Speta’s2 papers concentrate on the Federal Communication Commission’s (“FCC”) authority to regulate the Internet, or at least some of the infrastructure on which the U.S. portion of the Internet depends. Professor Kesan’s3 paper examines two regulatory regimes, one self-regulatory (BBBOnline) and the other perhaps unique (the Internet Corporation for Assigned Names and Numbers’ (“ICANN”) Uniform Domain-Name Dispute-Resolution Policy (“UDRP”)). The papers differ somewhat in their motivations. The Weiser and Speta papers treat the issue of the correct scope of the FCC’s authority as an end in itself; the Kesan paper examines its cases in hopes of making more general observations about e-commerce regulation.
Effects of Different Types of Free Trials and Ratings in Sampling of Consumer Software: An Empirical Study

Giving away trial software is a common practice for software developers to maximize the exposure of their products to potential consumers and to minimize the consumers' uncertainty about software quality. There are two types of free trials: (1) freeware, which consists of very basic features of focal software without a time lock, and (2) trialware, which has the full functionality of focal software with a time lock. In this paper, we study what factors make some free-trial software attract more potential adopters than others. Our empirical model under the traditional Bass-type diffusion examines the effects of the different types of free-trial software and ratings on consumer software sampling and reveals the dynamics of sampling over time. Using free-trial software downloading data on Download.com, we observe that the consumer software sampling process can be described by the theory of information diffusion. We find that user ratings affect sampling performance positively and that third-party ratings nee...
An Analysis of the Relation between the Stewardship and Valuation Roles of Earnings

In this paper, we seek a deeper understanding of how accounting information is used for valuation and incentive contracting purposes. We explore linkages between weights on earnings in compensation contracts and in stock price formation. A distinction between the valuation and incentive contracting roles of earnings in Paul [1992] produces the null hypothesis that valuation earnings coefficients (VECs) and compensation earnings coefficients (CECs) are unrelated. Our empirical analyses of the relations between earnings and both stock prices and executive compensation data at the firm and industry levels over the period 1971–2000 rejects Paul's [1992] hypothesis of no relation. We also document an increasing weight over time on other public performance information captured by stock returns in the determination of cash compensation. Specifically, we find that the incentive coefficient on returns is significantly higher in the second of two equal sample subperiods relative to the incentive coefficient on earnings.
Correcting for Survey Misreports using Auxiliary Information with an Application to Estimating Turnout

Misreporting is a problem that plagues researchers who use survey data. In this article, we develop a parametric model that corrects for misclassified binary responses using information on the misreporting patterns obtained from auxiliary data sources. The model is implemented within the Bayesian framework via Markov Chain Monte Carlo (MCMC) methods and can be easily extended to address other problems exhibited by survey data, such as missing response and/or covariate values. While the model is fully general, we illustrate its application in the context of estimating models of turnout using data from the American National Elections Studies.
Stellar populations of stellar halos: Results from the Illustris simulation

The influence of both major and minor mergers is expected to significantly affect gradients of stellar ages and metallicities in the outskirts of galaxies. Measurements of observed gradients are beginning to reach large radii in galaxies, but a theoretical framework for connecting the findings to a picture of galactic build-up is still in its infancy. We analyze stellar populations of a statistically representative sample of quiescent galaxies over a wide mass range from the Illustris simulation. We measure metallicity and age profiles in the stellar halos of quiescent Illustris galaxies ranging in stellar mass from 1010 to 1012M⊙, accounting for observational projection and luminosity-weighting effects. We find wide variance in stellar population gradients between galaxies of similar mass, with typical gradients agreeing with observed galaxies. We show that, at fixed mass, the fraction of stars born in-situ within galaxies is correlated with the metallicity gradient in the halo, confirming that stellar halos contain unique information about the build-up and merger histories of galaxies.
Shifting Paradigms of Parochialism: Lessons for International Trade Law

John Sexton characterized the endeavour of teaching globally as an academic calling for the ‘global common enterprise.’1 He explains that the rule of law plays an integral role in integrating a ‘global village’ and bridging different legal and cultural traditions.2 It is in this exchange that involved parties may begin to question their own laws, redefine legal applications through comparative inquiry and adapt their legal systems for the sake of a larger common enterprise. Much of the study of international private law has focused on exploring differences in legal systems in light of domestic issues or harmonization.3 Much less
The 52-week high, momentum, and predicting mutual fund returns

George and Hwang (J Finance 59:2145–2176, 2004) have shown that the 52-week high share price carries significant predictive ability for individual stock returns, dominating other common momentum-based trading strategies. Based upon their results and other methods, this paper examines and compares the performance of three momentum trading strategies for mutual funds, including an analogous 1-year high measure for the net asset value of mutual fund shares. Strategies based on prior extreme returns and on fund exposure to stock return momentum are also examined. Results show that all three measures have significant, independent, predictive ability for fund returns. Further, each produces a distinctive pattern in momentum profits, whether measured in raw or risk-adjusted returns, with profits from momentum loading being the least transitory. Nearness to the 1-year high and recent extreme returns are significant predictors of fund monthly cash flows, whereas fund momentum loading is not.
World market risk, country-specific risk and expected returns in international stock markets

Abstract This paper determines whether the world market risk, country-specific total risk, and country-specific idiosyncratic risk are priced in an international capital asset pricing model (ICAPM). Portfolio-level analyses, country-level cross-sectional regressions, stacked time-series, and pooled panel regressions indicate that the world market risk is not, but country-specific total and idiosyncratic risks are significantly priced in an ICAPM framework with partial integration. This result is robust to different methods for estimating risk measures, different investment horizons, and after controlling for the countries’ aggregate dividend yield, earnings-to-price ratios, inflation risk, exchange rate uncertainties, aggregate volatility risk, and past return characteristics. The main findings turn out to be insensitive to the choice of one-factor vs. multifactor models used to estimate systematic and idiosyncratic risk measures.
Information bundling and securities litigation

Abstract We exploit the exogenous shock of a 2005 U.S. Supreme Court decision on securities class action loss causation requirements to examine two ways that firms bundle information with restatements: “positive bundling” of good news and “noise bundling” of additional bad news. We find that positive bundling offsets price declines and results in less litigation. In contrast, noise bundling magnifies price declines, but nevertheless deters litigation by confounding which bad news caused a decline. Non-bundled restatements are 5.94 times more likely to result in litigation. Bundled restatements have 8.17 times higher dismissal rates and $21.17 to $23.45 million lower settlement amounts.
The new Lex Mercatoria and transnational governance

Over the past four decades, the transnational business community has successfully built a private system of transnational governance: the new Lex Mercatoria. The actors who operate this system - firms, their lawyers, international arbitrators, and legal academics - have evolved, and use, 'a-national' principles of contract and a system of private 'courts' to organize and regulate cross-border com- mercial exchange. National legal systems have adapted to the Lex Mercatoria, thereby enhancing the latter's autonomy, and the EU has begun to move in the same direction.
The Virtues of Private Securities Litigation: An Historic and Macroeconomic Perspective

In the wake of the Great Depression, the federal securities laws operated to mandate disclosure of material facts to investors and extend broad private remedies to victims of securities fraudfeasors. The revelation of massive securities fraud underlying the Great Depression animated the federal securities laws as investment plunged after 1929 and failed to recover for years. For over sixty years after the enactment of the federal securities laws, no episode of massive securities fraud with significant macroeconomic harm occurred. The federal securities laws thereby operated to facilitate financial stability and prosperity, in addition to a superior allocation of capital. Unfortunately, as memories faded and inequality soared, corporate and financial elites (with the active aid of lawmakers) launched a sustained attack upon private enforcement of the securities laws. Soon thereafter the horrors of the Great Depression returned and massive securities fraud triggered the Great Recession of 2008 as economists predicted. This Article argues for a rollback of the war on private securities litigation to at least the 1980s based upon history and economic science. This would at least restore sensible pleading standards, impose liability on all participants in securities frauds (including aiders and abettors) and allow the states to impose more demanding standards of liability on wrongdoers in financial markets.
One Size Does Not Fit All: A Framework for Tailoring Intellectual Property Rights

The United States and its trading partners have adopted cultural and innovation policies under which the government grants one-size-fits-all patents and copyrights to inventors and authors. On a global basis, the reasons for doing so vary, but in the United States granting intellectual property rights has been justified as the principal means of promoting innovation and cultural progress. Until recently, however, few have questioned the wisdom of using such blunt policy instruments to promote progress in a wide range of industries in which the economics of innovation varies considerably.
Technology Ladders and R&D in Dynamic Cournot Markets

Abstract Motivated by dramatic and unpredictable technological advances in energy production (for instance drilling and extraction of shale oil), we extend Cournot models of competition to incorporate research and development (RD for example the potential of future monopoly can spur R&D investment now, even if the firm is presently uncompetitive and not actively producing. We also show that, surprisingly, random innovations have an ambiguous effect on R&D. This feature, which is driven by the Cournot framework, contrasts with the common situation whereby uncertainty lowers innovation and delays R&D investments. Finally, we demonstrate that increased competition may actually increase efforts to innovate through higher desire to achieve dominance. This would match the anecdotal evidence that the threat of market entrants forces incumbents to maintain high R&D.
Vulnerability Analysis of the Financial Network

Since the financial crisis in 2007–2008, the vulnerability of a financial system has become a major concern in financial engineering. In this paper, we analyze the vulnerability of a financial netw...
Knowledge management in supply chains: The role of explicit and tacit knowledge

We theorize, building on the knowledge-based view and the theoretical distinction between explicit and tacit knowledge, that knowledge management capability across the supply chain manifests itself in explicit and tacit knowledge, which in turn effectuates supply chain performance. The model is tested with survey data from 195 small- and medium-sized enterprises reporting on their primary supply chain. The results indicate that the supply chain's knowledge management capability manifests itself in both explicit and tacit knowledge, with the latter being influenced more strongly. Moreover, it was found that while both explicit and tacit knowledge influence supply chain performance, the latter exerts a significantly greater impact than the former. Exploratory post hoc analyses add robustness to these findings and investigate mechanisms inherent to the transformation of tacit into explicit knowledge. Overall, this research contributes to academic theory development in logistics and supply chain management by the dichotomization of knowledge types and the demonstration of their differential magnitude of effects, and to managerial practice by providing important guidance for logistics managers structuring their knowledge management efforts across supply chains.
ntreatreg: A Stata module for estimation of treatment effects in the presence of neighborhood interactions

This presentation presents a parametric counterfactual model identifying average treatment effects (ATEs) by conditional mean independence when externality (or neighborhood) effects are incorporated within the traditional Rubin potential-outcome model. As such, it tries to generalize the usual control-function regression, widely used in program evaluation and epidemiology, when the stable unit treatment value assumption (SUTVA) is relaxed. As a by-product, the paper also presents ntreatreg, a user-written Stata command for estimating ATEs when social interaction may be present. Finally, an instructional application of the model and of its Stata implementation (using ntreatreg) through two examples (the first on the effect of housing location on crime; the second on the effect of education on fertility) is shown and results compared with a no-interaction setting.
Labor-Market Matching with Precautionary Savings and Aggregate Fluctuations

We analyze a Bewley-Huggett-Aiyagari incomplete-markets model with labor-market frictions. Consumers are subject to idiosyncratic employment shocks against which they cannot insure directly. The labor market has a Diamond-Mortensen-Pissarides structure: firms enter by posting vacancies and match with workers bilaterally, with match probabilities given by an aggregate matching function. Wages are determined through Nash bargaining. We also consider aggregate productivity shocks, and a complete set of contingent claims conditional on this risk. We use the model to evaluate a tax-financed unemployment insurance scheme. Higher insurance is beneficial for consumption smoothing, but because it raises workers outside option value, it discourages firm entry. We find that the latter effect is more potent for welfare outcomes; we tabulate the effects quantitatively for different kinds of consumers. We also demonstrate that productivity changes in the model - in steady state as well as stochastic ones - generate rather limited unemployment effects, unless workers are close to indifferent between working and not working; thus, recent findings are corroborated in our more general setting.
Privatization of Government Information as Primitive Accumulation

This essay examines privatization of government publishing through the lens of capital accumulation by dispossession, an updated and expanded version of Marx’s account of primitive accumulation. It argues that the program of privatizing the governments’ information dissemination activities which began as part of the Reagan administration’s pursuit of neoliberal policies continues today albeit in altered form due to the advent of electronic publishing.
What matters for industrial innovation in China: R&D, technology transfer or spillover impacts from foreign investment?

This study examines the relationship between industrial output and in-house R&D, technology transfer and spillovers from foreign investment in China using the most recent economic census data (2004) published by the Chinese State Statistical Bureau in 2006. It reveals that none of the three factors - in-house R&D, technology transfer and spillovers from foreign investment - can effectively explain the sectoral differences of output. The study also reveals that capital and state-owned enterprises (SOEs) show consistent and significant impacts on output, where capital demonstrates positive impacts while SOEs show negative impacts. Also interesting is that the impact of export on industrial differences of output is insignificant, though still positive. Such results cast serious doubts on the sustainability of China's strategy of relying on foreign investment, export and its recent innovation drive.
Time is money: An empirical examination of the effects of regulatory delay on residential subdivision development

Abstract Variation in regulatory costs over time and across different types of investment projects creates risk for developers who hold land. These so-called implicit costs, which arise as a result of regulatory delay in the land development process, are hypothesized to be potentially large, but empirical evidence of their influence on development outcomes is limited. Using a unique micro-level data set on parcel-level subdivision development that includes data on the timing of subdivision approvals, we test the effects of implicit costs that arise as a result of increased subdivision approval times on the timing and pattern of residential subdivision development. Consistent with theory, we find that these regulation-induced implicit costs reduce the probability of subdivision development on any given parcel. In addition, we find that systematic variation in regulation-induced implicit costs across space has reduced development in more heavily regulated urbanized areas intended for development and intensified development in less regulated exurban areas located farther away. The results provide a new explanation of scattered, low-density urban development as the result of optimal land development with multiple development options and heterogeneous regulatory costs.
Stock market integration and financial crises: the case of Asia

This study examines long-run relationships and short-run dynamic causal linkages among the US, Japanese, and ten Asian emerging stock markets, with the particular attention to the 1997–1998 Asian financial crisis. Extending related empirical studies, comparative analyses of pre-crisis, crisis, and post-crisis periods are conducted to comprehensively evaluate how stock market integration is affected by financial crises. In general, the results for the case of Asia show that both long-run cointegration relationships and short-run causal linkages among these markets were strengthened during the crisis and that these markets have generally been more integrated after the crisis than before the crisis. Detailed country-by-country analyses are provided, which yield a variety of new results concerning the roles of individual countries in international stock market integration. An important implication of our findings is that the degree of integration among countries tends to change over time, especially around pe...
Enduring Principles and Current Crises in Constitutional Criminal Procedure

In this book, a collection of five previously published law review articles, Akhil Amar informs his readers that he will attempt to analyze the Fourth, Fifth, and Sixth Amendments from the perspectives of text, history, and structure, in order to "lay bare their first principles" (p. x). The first principle is summed up concisely: "the Constitution seeks to protect the innocent. The guilty, in general, receive procedural protection only as an incidental and unavoidable by-product of protecting the innocent because of their innocence" (p. 154). How can we best utilize the Fourth Amendment to protect the innocent? In Amar's view the text tells us to eliminate the warrant requirement, history tells us to eliminate the probable cause requirement, and plain old common sense dictates we eliminate the exclusionary rule. The self-incrimination clause of the Fifth Amendment can best protect the innocent by admitting all reliable fruits of compelled confessions and mandating pretrial governmental interrogation of suspects. The Sixth Amendment's guarantees can best protect the innocent by eliminating some testimonial privileges, limiting "extremely vigorous cross examination of truthful witnesses," and interpreting the right to counsel to protect only against erroneous conviction of the innocent (p. 142).