...beginning of the stock return period is relevant for evaluating earnings/returns associations.^ The primary model motivating this research relies on the idea that book value (owners' equity) and market value are both "stock" variables indicating the wealth of the firm's equity holders. The related "flow" variables (after adjusting for dividends) are, respectively, earnings divided by price at the beginning of the return period {A/P~i) and market returns. It then follows that earnings divided by beginning of period price should be associated with stock returns. Although models based on a relation between market value and book value are used occasionally in the accounting research literature (see, for example, Landsman [1986], Harris and Ohlson [1987], and Barth * Macquarie University and University of Chicago; tColumbia University. The paper is a revised version of working papers entitled "An Empirical Evaluation of Accounting Income Numbers: Further Evidence" and "Evidence of Accounting Earnings as an Index of Change in Value." The authors would like to acknowledge comments from workshop participants at the following universities; Arizona, Auckland, California at Berkeley, California at Los Angeles, Columbia, CUNY-Baruch College, Harvard, Macquarie, Michigan, New South Wales (AGSM), and Southern California. Special thanks are due to Vic Bernard, Jim Haggard, Robert Lipe, Jim Ohlson, Eric Noreen, Stephen Penman, Ram Ramakrishnan^ Jake Thomas, and anonymous referees. The study was partly...
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...J. Bus. Financ. 01 (03) 2013. 94-104 94 Available Online at ESci Journals Journal of Business and Finance ISSN: 2305-1825 (Online), 2308-7714 (Print) http://www.escijournals.net/JBF LACK OF TIMELINESS AS AN EXPLANATION OF THE LOW CONTEMPORANEOUS RETURNS-EARNINGS ASSOCIATION Jaouida E. Trabelsi Institute of the High Commercial Studies of Sfax (IHEC), University of Sfax, Tunisia. A B S T R A C T This paper empirically tests whether the low contemporaneous returns-earnings association set by previous empirical researches may be explained by lack of timeliness of accounting numbers. It hypothesises that if the criteria for accounting recognition yield a multi-period lag in earnings recognitions of economic events and if these events affect an informed market immediately when they occur, then future periods’ earnings would have explanatory for current returns as well as current earnings. To assess the significance of future earnings as an explanatory variable for stock returns we regress at first step annual returns on current earnings and at second step, annual returns on current earnings and successively next period and next two periods’ earnings. Results show that future earnings continue to explain current returns. The evidence is characteristic of a substantial recognition lag in earnings that extends to the immediate next period. However, over one year, earnings do not seem reflecting any relevant economic event impounded in security prices at previous period. The earnings...
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...THE INTERNATIONALIZATION PROCESS OF THE FIRM-A MODEL OF KNOWLEDGE DEVELOPMENT AND INCREASING FOREIGN MARKET COMMITMENTS JAN JOHANSON' Center of International Business Studies University of Uppsala JAN-ERIK VAHLNE' Institute of International Business Stockholm School of Economics Abstract. O n the basis of empirical research, a model of the internationalization process of the firm is developed. The model fccuses on the gradual acquisition, integration and use of knowledge about foreign markets and operations, and on the incrementally increasing commitments to foreign markets. In particular, attention is concentrated on the increasing involvement in the individual foreign country. ' , .?.. . ' 1 .ti-. ;,..,, ,--.7p.p. . & , Several studies of international business have indicated that internationalization of the firms is a process in which the firms gradually increase their international involvement. It seems reasonable to assume that, within the frame of economic and business factors, the characteristics of this process influence the pattern and pace of internationalization of firms. In this paper we develop a model of the internationalization process of the firm that focuses on the development of the individual firm, and particularly on its gradual acquisltion, integration, and use of knowledge about foreign markets and operations, and on its successively increasing commitment to foreign markets. The basic assumptions of the model are that...
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...Corporate Social Responsibility across Industries: When can who do well by doing good? Andreas G. F. Hoepnerab, Pei-Shan Yua* & John Fergusonc School of Management, University of St. Andrews, The Gateway, North Haugh, St. Andrews, KY16 9SS, UK Academic Fellow, Principles for Responsible Investment, PRI Secretariat, c/o UN Global Compact, DC2-612, United Nations, New York, NY 10017, US c Department of Accounting & Finance, University of Strathclyde, 100 Cathedral Street, Glasgow, G4 0LN, UK b a This version (3.0): March, 2010 First version (1.0): October, 2008 ___________________________________________________________________________ Abstract: While much of the previous literature considers whether corporate social responsibility (CSR) pays, we take a more nuanced perspective, theoretically and empirically, by investigating when CSR pays and for whom? Theoretically, we develop two contingency perspectives. First, we extend previous work to argue that CSR’s impacts on corporate financial performance (CFP) are moderated by five factors: CSR form, firm characteristics, time, national framework and industrial characteristics. Focusing on industrial characteristics, we theorise that differences in industries’ dependency on certain stakeholder groups, their proximity to the end consumer, their potential for social and environmental damages and their level of product / service differentiation moderate CSR’s value relevance. Our second contingency perspective considers for whom CSR might...
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...The relationship between online environments And Customer Satisfaction (Iran Computer Hardware Industry) Mahmoud Manafi (mahmoud_manafi@yahoo.com) Roozbeh Hohabri (rhojabri@gmail.com) Kamran Karimi (kami_harmonica@yahoo.com) Seyed Mehdi Fatemi (mehdi_fatemi_drh@yahoo.com) Seyed Salman Fatemi (salmanfatemi@gmail.com) Kaveh Mehrnia (k_m261156@yahoo.com) Abstract In this quantitative article research first, the main factors in customer satisfaction in online environment of Iran in hardware industry with process based-view are identified. Secondly relationships between identified factors in online environment of Iran and customer satisfaction are investigated. Keywords: Online Environment, Customer satisfaction, and Process Based-View Introduction Experimental studies show that enterprises with high customer satisfaction, has more return on economic in comparison with others (Eugene W. Anderson, 1993). Others implied that firms should try to seek profitable way to differentiate their services and deliver high quality services (A. Parasuraman 1998, Adam Finn 2003, Hsu, 2008). Additionally, quality of the quality of customer interface in online shopping is positively related to intention to buy and consequently future financial performance of the firm (Hsin Hsin Chang, 2009) This is the reason that currently firms using customer satisfaction and loyalty improvement strategies to sustain in current competition environment and create value for all stakeholders and...
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...Information Sharing in Supply Chains: An Empirical and Theoretical Valuation Ruomeng Cui, Gad Allon, Achal Bassamboo, Jan A. Van Mieghem* Kellogg School of Management, Northwestern University, Evanston, IL April 10, 2013 We provide an empirical and theoretical assessment of the value of information sharing in a two-stage supply chain. The value of downstream sales information to the upstream firm stems from improving upstream order fulfillment forecast accuracy. Such improvement can lead to lower safety stock and better service. According to recent theoretical work, the value of information sharing is zero under a large spectrum of parameters. Based on the data collected from a CPG company, however, we empirically show that if the company includes the downstream demand data to forecast orders, the mean squared error percentage improvement ranges from 7.1% to 81.1% in out-of-sample tests. Thus, there is a discrepancy between the empirical results and existing literature: the empirical value of information sharing is positive even when the literature predicts zero value. While the literature assumes that the decision maker strictly adheres to a given inventory policy, our model allows him to deviate, accounting for private information held by the decision maker, yet unobservable to the econometrician. This turns out to reconcile our empirical findings with the literature. These “decision deviations” lead to information losses in the order process, resulting in strictly positive...
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...OVERCOMING RESISTANCE This paper examines organizational change, focusing on the distinction of changes according to their scope and presenting a typology of evolutionary and strategic changes. Through empirical research, it analyzes the importance of the sources of resistance to change defined theoretically, also considering types of changes, offering hints about where organizations should pay special attention when initiating a change process. INTRODUCTION Many authors (Lawrence, 1954; Maurer, 1996; Strebel, 1994; Waddell and Sohal, 1998, among others) stress that the reasons for the failure of many change initiatives can be found in resistance to change. Resistance to change introduces costs and delays into the change process (Ansoff, 1990) that are difficult to anticipate (Lorenzo, 2000) but must be taken into consideration. Resistance has also been considered as a source of information, being useful in learning how to develop a more successful change process (Beer and Eisenstat, 1996; Goldstein, 1988; Lawrence, 1954; Piderit, 2000; Waddell and Sohal, 1998). Undoubtedly, resistance to change is a key topic in change management and should be seriously considered to help the organization to achieve the advantages of the transformation. THEORETICAL FRAMEWORK Organizational change is an empirical observation in an organizational entity of variations in shape, quality or state over time (Van de Ven and Poole, 1995), after the deliberate introduction of new ways of thinking, acting and operating...
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...Writing Tips For Economics Research Papers∗ Plamen Nikolov, Harvard University † June 10, 2013 1 General Tips about Writing Style When I read your term papers, I look for your ability to motivate your question using economic logic, your ability to critically analyze the past literature, and your ability to recognize empirical problems as they arise. In particular, it is important that your term paper demonstrates that you are more knowledgeable, analytic, and sophisticated about the economics of health or development economics than we would expect, say, a clever editorial writer for The New York Times to be. You should present evidence, cite literature, explain economic trade-os, and generally approach the issue from an analytic perspective. Sometimes, a student is tempted to stray into opinion-page, journalistic writing in his or her term paper. Do not do this. Teaching good economics writing is one of the goals of the departmental writing requirement and is a valuable lesson for potential thesis writers. You will get a lower grade if your writing is • ungrammatical, • unclear, • journalistic. If you have trouble writing grammatically, please leave yourself some extra time and go to a writing 1 tutor . Clarity is the rst priority in economics writing. Do not worry about being snappy if you are being clear. Journalistic writing is characterized by the lack of an analytical tone. Below, you will nd some notes about the...
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...participation in study abroad programs and in innovative intercultural communication curricula setup precisely for this target group. In their effort to create this cross-cultural skills curricula for business students, Alliance members initially faced three tasks: defining the problem in theoretical rather than anecdotal terms; developing a set of pedagogical practices grounded in that theoretical framework, and which could be deployed in the study abroad context; and gathering empirical data in order to evaluate the effectiveness of the practices. The decision to use the study abroad experience as a primary vehicle for teaching intercultural communication was also based on a widely held assumption: "one of the most frequently articulated assumptions of study abroad programs is that study in a foreign country for an extended period of time will bring about enhanced levels of international understanding and concern." (Carlson and Widamen, 2) However, as Carlson and Widamen note, there is little empirical evidence supporting this assumption. The...
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...evidence is limited. Some other studies show that the relationship between profitability and customer loyalty is not strong. In a study of Swedish firms, Anderson et al.(1997) find that the relationship between customer satisfaction and return on investment varies across industries.The mixed evidence about the effect of SQ on profitability suggests that the effect depends on the operating context. 1.2 Conformance quality(CQ) CQ is an internal measure of quality and is defined as the degree to which stores conform to prescribed standards related to logistics activities. Many scholars like Maani et al. (1994), White (1996), and Krishnan et al. (2000) argue that investment in CQ may benefit the company in a long term, but there is limited empirical evidence for the positive effect of CQ on financial...
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...therapy principles, he discusses strategies for implementation, and provides research data supporting its effectiveness, including post release outcomes on the Reasoning and Rehabilitation (R & R) program. Porporino’s conclusions are subsequently compared with other researcher’s opinions and research based empirical data. Methodology Porporino criticises several programs he reviewed that claimed to be cognitive. In particular, he disregards motivational programs that lack empirical evidence of reduction of recidivism, and those programs that criticise forms of thinking without providing reasoning. Likewise, he dismisses programs that criticise current forms of thinking without providing reasoning, or adapted to corrections without adequate training or strategies for implementation. He is also critical of holistic programs that claim to address life skills, stating that they lack the systematic targeting of key factors that maintain criminal attitudes. Although in 1991, he advocated for a living skills program based on the success of the cognitive skills program. Furthermore, he dismisses cognitive programming models based on stages of morality, because they lack empirical evidence and he maintains they are not cognitive (Porporino, 1995, p.p. 2, 3, 18). Why cognitive Porporino maintains it is important to change ways of thinking to reduce recidivism, because risk factors that indicate propensity to offend can influence and maintain attitudes for continued offending....
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...Changes in international development: An assessment of trilateral development cooperation. Introduction In a time span of the last 10 years, the scene has changed rapidly in international development studies. A number of new actors have appeared on the scene and are changing the attitudes towards and the setting of development, in particularly in Africa. To argue that changes on this scene is a novelty would be obscene, with possible references to the plethora of different development paths followed by individual states, the widely differing politics of international development and in particular the big shifts in the international paradigms surrounding aid and governance. The reasons for the current change on the international scene are many. First, and most relevant to this paper, there is the entry of “new” states on the scene. These are states that most often have risen to a middle-income level (e.g. China, Brazil, South Africa), and now are looking to either widen their altruistic reach, look out for geopolitical interest, gain political influence or to secure access to future growth markets and scarce resources – or maybe all of the above. It is worth to note, that they have all been present for a long time, but just recently have attained the interior economic welfare to increase their aid support (Rampa et al., 2012; Dreher et al., 2011; Wouters et al., 2012). Another very big driver of change is the entry of private financing into the field of development. Private...
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...The previous chapter dealt with analysis and interpretation of data obtained by way of focus group interviews. In this chapter, a brief summary on the research project will be presented. The findings from both the literature review and the empirical investigation on co-operative governance in schools in Gauteng District 11 and schools in general, will also be presented. The recommendations that will serve as guidelines to assist school governors to maintain co-operation in schools in Gauteng District 11, will be made. 5.2 SUMMARY The purpose of this research project was to probe the essence of co-operative governance in schools in Gauteng District 11. The empirical investigation has been triggered by changes in school governance brought about by the Constitution (RSA, 1996a) and the South African Schools Act 84 (RSA, 1996b) and the need for school governing body members to understand their roles and functions in schools. Co-operative governance is vested in the school governing body. The principle underlying this approach is that education is a shared responsibility of the principal, parents, educators, non-educators, learners, the immediate school community and residents of the school catchment area. The empirical research was limited to the schools in Gauteng District 11. To collect qualitative data, focus group interviews with: three principals as ex-officio members, three parents representatives, three educators, three learners and three non-educator ...
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...Course Date Summary The article to be summarized is titled From Data to Theory: Elements of Methodology in Empirical Phenomenological Research in Practical Theology1 it is authored by Hans-Günter Heimbrock. He indicates that practical theologians have initiated investigations and scientific researches that are associated with faith and religion. These theological studies have been made possible with the increase social science methods, which are being applied by the researchers to indicate the theological knowledge that can be used in social dynamics, contexts and conditions related to the religious life. Pastoral works have these studies to thank as they help them in conducting their works effectively. Heimbrock also instigates that the there has been a growing interest for theological studies ever since the introduction of the scientific methodology in theological work. The methodologies have increased the criteria and the standards of theological studies that can be used in the empirical research. The aspect of religion can be understood through the implication of religious research that is being increased through the means of social scientific instruments. Different aspects on religious studies and scientific methods can be applied in these studies. However, this paper will scrutinize some of the methodologies that can be applied in understanding the empirical side of religion through the stimulation of the correct standards of discussions and researches. This is due to...
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...Developing a Log-based Motivation Measuring Tool Arnon Hershkovitz and Rafi Nachmias1 {arnonher, nachmias}@post.tau.ac.il 1 Knowledge Technology Lab, School of Education, Tel Aviv University, Israel Abstract. The purpose of this study is to develop a conceptual framework and a tool for measuring motivation of online learners. The study was carried out in three phases, the first of which was the construction of a framework, based on an extensive literature review. Phase two consisted of identifying variables computable from log file data, associate with the framework and compatible with previous empirical research. For this purpose, an empirical study was designed and a specific learning environment focusing on vocabulary for adults was chosen. Log files of a large population (N=2,162) were collected and variables were identified using Learnograms, a visual representation of learning variables over time. This phase resulted in seven explicitly defined variables, along with a mechanism to calculate them from the raw log files. The third phase included preprocessing of the dataset (reducing it to 674 cases) and application of hierarchical clustering of the variables. This phase resulted in three clusters interpreted to fit the three dimensions of motivation defined in the framework. A discussion of this study and further research is provided. 1 Introduction Assessment of learners' motivation in online environments has been a challenge for both researchers...
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