Voluntary Disclosure by State-owned Enterprises Listed on the Stock Exchange of Hong Kong

This study examines the impact of international capital market pressures on the voluntary disclosure of three types of information (strategic, financial, and non-financial) in the annual reports of former wholly state-owned People's Republic of China (PRC) enterprises, listed on the Stock Exchange of Hong Kong (SEHK). Consistent with a cost­benefit framework, we find that PRC H-Share firms disclose significantly more strategic and financial information than other SEHK firms. Additional analysis of disclosures in their home listings on the PRC exchanges, however, suggests an alternative explanation. The fact that these firms have been selected for "showcasing" in international capital markets may also play a role in our findings. While H-Share firm disclosures in the PRC also appear sensitive to management's assessment of the associated costs, the magnitude of differences across listing locations suggests that disclosure practices on the SEHK may also reflect the effects of state-encouraged disclosure policies. Our findings contribute to the understanding of disclosure behavior among former wholly state-owned enterprises and to the emerging literature on the efficacy of the privatization process.     

Realising the future: forecasting with high‐frequency‐based volatility (HEAVY) models

This paper studies in some detail a class of high‐frequency‐based volatility (HEAVY) models. These models are direct models of daily asset return volatility based on realised measures constructed from high‐frequency data. Our analysis identifies that the models have momentum and mean reversion effects, and that they adjust quickly to structural breaks in the level of the volatility process. We study how to estimate the models and how they perform through the credit crunch, comparing their fit to more traditional GARCH models. We analyse a model‐based bootstrap which allows us to estimate the entire predictive distribution of returns. We also provide an analysis of missing data in the context of these models. Copyright © 2010 John Wiley & Sons, Ltd.     

Antecedents to ambidexterity competency in high technology organizations

High tech organizations confront dual demands of exploring new products/processes and exploiting existing products/processes. Research shows that ambidextrous organizations can better manage these dual demands, but our understanding of the antecedents that lead to ambidexterity is still emerging. In addition, previous research has taken a piecemeal approach to understand ambidexterity and does not fully consider its multilevel nature. This research takes a multilevel perspective and argues that a competency in ambidexterity involves three capabilities at different organizational levels: decision risk (strategic level), structural differentiation (project level), and contextual alignment (meso level). After correcting for endogeneity we empirically examine the relationship between these antecedents and ambidexterity competency by collecting multi-level data from 34 high tech business units and 110 exploration and exploitation R&D projects. The results indicate that decision risk and contextual alignment affect ambidexterity competency for high tech organizations. Structural differentiation does not affect ambidexterity competency but has mixed effects on R&D project performance.     

Unemployment dispersion and the allocative efficiency of the labor market

An idea that seems to gain recurrent popularity in the economics profession is that, because of technological change, changes in consumer demand, skill mismatches, and the like, the unemployed tend to become concentrated or trapped in particular geographic areas and that for these reasons unemployment rates have grown more disparate over time. This paper examines the theoretical conditions necessary for the above argument to hold and shows that such conditions are not consistent with the notion of a competitive labor market. The paper then examines various measures of unemployment-rate dispersion in order to determine whether or not unemployment rates have indeed drifted further apart over time. The empirical evidence presented indicates unequivocally that geographic unemployment rates are neither more nor less dispersed now than they were twenty years ago. The results, therefore, suggest that the competitive view of the labor market is appropriate and that the hypothesis that unemployment rates have become more dispersed over time because of structural imperfections in the labor market should be rejected.     

The determinants of individual attitudes towards immigration

The paper formulates hypotheses and reports on individual attitudes towards immigration based on data for 24 countries on socioeconomic position, sociodemographic characteristics and political attitudes. The results are consistent with the predictions of factor proportions trade theory, but also suggest that a range of other economic and cultural factors influence attitudes towards immigration.     

The tale of the tails: Canadian income inequality in the 1980s and 1990s

Abstract.  We present new evidence on levels and trends in after-tax income inequality in Canada between 1980 and 2000. We argue that existing data sources may miss changes in the tails of the income distribution, and that many of the changes in the income distribution have been in the tails. For this reason, we turn to an alternative source. In particular, we construct data on after-tax and transfer income using Census files augmented with predicted taxes based on information available from administrative tax data. Using these data, we find that Canadian after-tax inequality levels are substantially higher than has been previously recognized, primarily because income levels are lower at the bottom of the distribution than in commonly used survey data. We also find larger long-term increases in after-tax income inequality and far more variability over the economic cycle. This raises interesting questions about the role of the tax and transfer system in mitigating both trends and fluctuations in market income inequality.     

How do contribution limits affect contributions to tax-preferred savings accounts?

Contributions to tax-preferred savings accounts are typically constrained by a contribution limit. These limits influence contributions not only for taxpayers currently constrained by the limit, but also for those contributing less than the limit. I develop a simple life-cycle model in which taxpayers exhibit ‘use it or lose it’ contribution behavior. This connects current contributions to future contribution limits, and implies that an increase in contribution limits can decrease contributions. Empirical evidence from microdata provides support for the model. Using variation from Canadian limit reforms I find that larger future contribution room is associated with smaller contributions.     

Australian Monetary Policy: Recent Experience and Some Current Issues

This article surveys Australia's recent monetary experience highlighting current problems in interpreting the stance of monetary policy. It then examines changes in the techniques of monetary policy stemming from deregulation and changing views of the authorities. Finally, money supply control, deregulation and broad money growth, and commercial bill financing are analysed so as to help to shed light on the current problems of interpreting monetary condition.