Plant Scale and Exchange‐Rate‐Induced Productivity Growth

This paper examines the impact of exchange rate movements on firm‐level productivity through changes in the scale of production. We employ plant‐level data to examine whether, and in what direction, exchange rate movements affect the scale of production, and how these changes in scale influence productivity. The paper finds that a real appreciation of the domestic currency reduces shipments and this negative effect is larger for exporters (both domestic and foreign owned). The paper also finds evidence that the appreciation‐induced reduction of scale negatively affects productivity at the plant level. This scale effect more than offsets any potential gains from the appreciation‐induced reduction in the price of imported inputs.     

The effect of expertise on consumers' satisfaction with the use of interactive recommendation agents

Based on cost‐benefit theory and the value‐percept diversity model, this study investigates the underlying mechanism that makes consumers feel satisfied with the use of interactive recommendation agents (IRAs). The format of IRAs was manipulated experimentally (attribute‐based format/benefit‐based format/no agent) and participants were classified as either expert or novice consumers. The dependent measures were the perceived costs and benefits of the information search process, the perceived costs and benefits of the decision‐making process, and the degree of satisfaction with the outcome. The results explain the mechanisms underlying consumers' satisfaction when using an IRA. The findings also suggest the presence of an interaction between the expertise of consumers and the preferred type of IRA on various dependent variables. © 2008 Wiley Periodicals, Inc.     

Automated explanation of financial data

We describe a methodology for explanation generation in financial knowledge-based systems. This offers the possibility to generate explanations and diagnostics automatically to support business decision tasks. The central goal is the identification of specific knowledge structures and reasoning methods required to construct computerized explanations from financial data and models. A multistep look-ahead algorithm is proposed that deals with so-called cancelling-out effects, which are a common phenomenon in financial data sets. Our method is an extension of the traditional variance decomposition in accounting. The method was tested on a case-study conducted for Statistics Netherlands involving the comparison of financial figures of firms in the Dutch retail branch. Copyright © 2009 John Wiley & Sons, Inc.     

Firm survival and exit in response to trade liberalization

Abstract.  This paper considers the implications of changing trade barriers for the survival of Canadian manufacturing firms. The findings suggest that Canadian tariff reductions decreased the probability of survival for Canadian firms while declines in American tariffs increased that probability. Combining these effects, two‐thirds of Canadian manufacturing firms saw their probability of survival increase as a result of the tariff reductions mandated by the Canada‐US Free Trade Agreement. However, the vulnerability of a firm to failure as a result of trade liberalization was mitigated by the characteristics of that firm, particularly scale and leverage. JEL classification: F1, L1     

FINANCIAL PLANNING AND CONTROL FOR COMMERCIAL AND INDUSTRIAL ENTERPRISES IN CHINA

Financial planning and control systems in China are discussed. The effectiveness of the pre-1979 system is evaluated and compared to the system instituted in 1979 under China's modernization drive. The implications of these changes for China and for the United States are discussed.     

Do not swipe the small stuff: A randomized evaluation of rules of thumb-based financial education

We perform the first rigorous test of a rules of thumb-based approach to financial education on consumer behavior and outcomes. We test two rules of thumb that are targeted at reducing credit card revolving and deliver them in a randomized fashion via e-mail, online banner, and physical mailer. Using monthly administrative data and pre and postintervention credit data on almost 14,000 consumers, we find that the “Do not swipe the small stuff” rule of thumb reduces participants' targeted credit card balance by an average of 2% at a cost of around $0.50 per person. The “Credit keeps charging” rule shows a decline as well but the impact is not significant.     

摒弃文档低效率节约纳税人资金

2007年国际团队卓越竞赛(International Team Excellence Competition)的三位银奖获得者之一,来自佛罗里达州的一个团队,他们创造了一项绝佳的解决方案,该方案可以节约佛罗里达州纳税人1800万美元的资金.     

Shut the fridge door! HRM alignment,job redesign and energy performance

Anchored within the strategic HRM and alignment literature, and drawing on efficiency and legitimacy perspectives of organisational behaviour, we investigated a HRM intervention targeted at energy reduction goals in a large multinational retailer. The HRM intervention was focused on embedding the environmental and economic performance goals of the firm within the workplace through redesigning the job so that energy tasks were aligned with training and performance management systems, as well as organisational performance goals. Using a randomised control trial design, we tracked changes in energy behaviours and energy consumption in 769 retail stores (685 in the intervention condition, 84 in the control condition). The findings provide evidence that changing the alignment of HRM practices can influence both worker behaviour and organisational outcomes, including environmental outcomes. This work contributes to debates concerning the impact of HRM alignment on both the work and organisational performance context.     

ON THE TIMING OF PRODUCTION DECISIONS IN MONETARY ECONOMIES

In most macroeconomic models inflation tends to be harmful. In this article, we show that by simply changing the timing of production decisions by firms from “on demand” to “in advance,” some inflation can boost welfare as long as goods are sufficiently perishable. The main conclusion from this research is that by effectively hiding the strategic interaction between supply and demand, assuming production on demand is not without loss of generality.