The firm information environment and capital structure: international evidence

This article investigates the effect of the firm information environment, characterized by the analyst characteristics, on firms’ capital structure choices and whether this effect varies according to country-level institutional environments. Using a comprehensive international data set that covers 19 939 firms across 41 countries between 2000 and 2010, we document two key findings. First, firms with lower analyst coverage, higher forecast dispersion and higher forecast errors have higher leverage. Second, the effect of the firm information environment on corporate leverage is attenuated in countries with stronger governance mechanism and better information transparency. This result suggests that a firm’s information environment is an important factor influencing its capital structure decision and that country-level institutional environments matter to this effect.     

Confidence intervals for maximal reliability in tau‐equivalent models

Subjective probabilities play an important role in marketing research, for example where individuals rate the likelihood that they will purchase a new developed product. The tau‐equivalent model can describe the joint behaviour of multiple test items measuring the same subjective probability. In this paper we stress the use of confidence intervals to assess reliability, as this allows for a more critical assessment of the items as measurement instruments. To improve the reliability one can use a weighted sum as the outcome of the test rather than an unweighted sum. In principle, the weights may be chosen so as to obtain maximal reliability. We propose two new confidence intervals for the maximal reliability in the tau‐equivalent model and we compare these two new intervals with intervals derived earlier in Yuan and Bentler (Psychometrika, 67 , 2002, 251) and Raykov and Penev (Multivariate Behavioral Research, 41 , 2006, 15). The comparison involves coverage curves, a methodology that is new in the field of reliability. The existing Yuan–Bentler and Raykov–Penev intervals are shown to overestimate the maximal reliability, whereas one of our proposed intervals, the stable interval, performs very well. This stable interval hardly shows any bias, and has a coverage for the true value which is approximately equal to the confidence level.     

The influence of thematic product displays on consumers: An elaboration‐based account

Marketers commonly adopt a theme to unify their design of an environment in which their products are displayed. A thematic display environment can be congruent with or unrelated to the concept of a product on display. The elaboration likelihood model and the knowledge activation literature suggest that conceptual congruence between the thematic display context and the product could affect product evaluation by a cue‐based mechanism and an elaboration‐based mechanism. First, the positive feeling associated with conceptual congruence serves as a peripheral cue, making product evaluation favorable. Second, the congruence provokes thoughts about the product's attributes, and these attribute‐related thoughts affect product evaluation. Whether the evaluation is dominated by the affective cue or attribute thoughts depends on the consumer's shopping motivation (planned purchase vs. browsing), because the motivation affects the consumer's elaboration likelihood. The results of three experiments support these propositions. The results indicated that under planned purchase motivation, the congruence effect on purchase intention through attribute‐related thoughts was observed. In contrast, under browsing, the congruence effect on purchase intention was dominated by a direct positive effect that reflected the influence of the affective cue. Implications of the findings for visual merchandising are discussed.     

The performance and robustness of simple monetary policy rules in models of the Canadian economy

Abstract.  In this paper, we evaluate seven simple monetary policy rules in a wide range of models of the Canadian economy. Our results indicate that none of the seven simple policy rules we examined is robust to model uncertainty, in that no single rule performs well in all models. In fact, our results show that the performance of some of the simple rules, particularly rules with interest rate smoothing and rules with a high coefficient on the inflation gap, can substantially deviate from that of the optimal rule and can even be unstable in some models. Furthermore, we find that "open‐economy" rules do not perform well in many models. We find that adding an exchange rate term to a simple policy rule often increases the value of the policy‐maker's loss function. Although it is not robust, we find that a simple nominal Taylor‐type rule that has a coefficient of 2 on the inflation gap and 0.5 on the output gap outperforms the other simple rules in a certain class of models. However, even in those models, the loss‐function value of this simple rule can be substantially higher than that of the optimal or base‐case rule. JEL classification: E52, E58     

Management training for women: International experiences and lessons for Canada

In Canada, there is growing recognition that women play an increasingly important role in the working world. Management training programs for women have been considered as a route to prepare women to be more effective managers. This paper highlights some of the major issues and concerns being discussed outside Canada by those engaged in management education and training for women — objectives and content of programs, nature of participants, training methods, choice of trainers, organization and evaluation of programs. References are made to a few international programs to illustrate how some of these concerns have been addressed. Implications for training programs in Canada, from both practical as well as research points of view, are discussed.Natalie Lam teaches organizational behaviour, human resources management, and organizational communication at the University of Ottawa. Research interests in cross-cultural management, women in management, and inter-disciplinary research (e.g. organizational issues of physical distribution and materials management). Consultant for private and public sector organizations, such as the Canadian International Development Agency, Bell Northern Research, Institute of Canadian Bankers, and the Canadian Police College.     

Doing It Purposely? Mediation of Moral Disengagement in the Relationship Between Illegitimate Tasks and Counterproductive Work Behavior

Journal of Business Ethics - Employees perceive illegitimate tasks as inappropriate assignments because such tasks are beyond what they expect to do in any given job position. Extant literature...     

Residents’ Perceptions of the Role of Leisure Satisfaction and Quality of Life in Overall Tourism Development: Case of a Fast-Growing Tourism Destination – Macao

The previous literature has examined leisure satisfaction and quality of life but majority of studies were conducted in Western countries. Policy makers worldwide have struggled to balance residents’ leisure satisfaction and tourism development. This study is conducted in Macao, China, a fast-growing tourism destination in Asia. Results indicated that local residents’ leisure satisfaction is positively related to their perceived quality of life while local residents’ perceived quality of life is positively associated with their evaluation of the perceived benefits of tourism. The results generated from that evaluation positively lead to residents’ support of tourism development. Results indicated that it is worthwhile for the policy makers to invest resources in local residents’ leisure satisfaction and quality of life since this will eventually help to support tourism development. The results of this study provide significant implications for policy makers.     

The organizational context of professionalism in accounting

This study analyses the degree to which change in the organizational context, content and location (both of the individual within the organization and the organization within the field) of professional work has contributed to variation in attitudes toward professional ideology and institutions. Through an online survey of Canadian chartered accountants we observe that, contrary to current accusations, a majority of accounting professionals remain committed to their profession, despite profound changes in the context, content and location of their work. We do find, however, that the strongest espoused deviation from core professional values and logics has occurred in traditional work contexts (i.e. public accounting firms), and for the distinctive value of commitment to independence enforcement, the deviation is most pronounced in the elite core of the profession – the Big Four professional service firms. Accountants in higher ranks also tend to identify more with commercialistic values. We speculate on the implications these findings hold for the professional project of accountancy.     

Land-Use Sustainability of Composite Swiddening in the Uplands of Northern Vietnam: Nutrient Balances of Swidden Fields during the Cropping Period and Changes of Soil Nutrients over the Swidden Cycle

This study examined the sustainability of the swidden component of the composite swiddening system practiced by the Tay ethnic minority in Tat hamlet, Hoa Binh province in Northern Vietnam. This farming system is thought to be suitable for the uplands where land degradation is a serious problem. The common swidden rotation of two years of rice, two years of cassava and five years of bush-tall grass fallow was evaluated for the extent of land degradation during the cropping period by nutrient balance analysis, and for soil nutrient status throughout the swidden cycle through soil analysis. Four fields representing the individual years of cropping and three fields representing the first, the third and the fifth years of bush-tall grass fallow were selected for field measurements. Nutrient balance analysis indicated substantial losses of all major nutrients, particularly K, in all cropping years. Soil analysis also showed a decline in soil fertility during the cropping period and a partial restoration of soil fertility during the fallow period. However, only five years of bush-tall grass fallow was not sufficient to restore the original level of soil fertility. Thus, swidden fields in Tat hamlet are degrading, posing a serious threat to their land-use sustainability.