The accrual anomaly: Australian evidence

This paper investigates whether there is evidence of the accrual anomaly ( Sloan, 1996 ) in Australia, whereby investors overestimate the impact of accruals on the persistence of earnings. While our results provide general support for the existence of the anomaly in Australia, there are a number of idiosyncrasies. First, there is evidence of Australian investors underestimating the persistence of earnings. Second, there is evidence of investors incorrectly assessing the implications of accruals and cash flows for the persistence of earnings (i.e. an accrual anomaly and a cash‐flow anomaly). Third, returns to a hedged portfolio trading strategy based on reported accruals are decreasing over the three‐year period subsequent to portfolio formation. Furthermore, they are statistically significant only in the first year. Additional analysis of the hedge portfolio results indicates that these results are primarily attributable to a limited number of firm‐year observations in the extreme positive tail of returns.     

The determinants of reserves disclosure in the extractive industries: evidence from Australian firms

This paper examines the determinants of reserves disclosure (RD) in the Australian extractive industries. Our regression results indicate that RD are positively associated with variables relating to corporate governance, foreign listing, existence of reserves in foreign jurisdictions, pledging of reserves in debt covenants, leverage and external (Big 4) auditor, after controlling for firm size, subindustry, shareholder concentration and development/production stage. Additional regression testing shows that the existence of reserves in foreign jurisdictions is the most important determinant of RD in Australia. This paper contributes to a better understanding of the extent and rationale behind the RD practices of Australian resource firms.     

Efficient estimation of tail-area probabilities in sampling experiments

A technique based on the use of control variates is proposed for the efficient estimation, in Monte Carlo experiments, of tail-area probabilities of test statistics whose small-sample properties are unknown. Significant variance reduction can be achieved in some cases.     

Brand portfolio options for the UK retail banks

Following deregulation in the late 1980s, many financial service companies rapidly grew their product portfolios. Developing these extensive portfolios has raised complex issues for financial service companies regarding how the new products and services should be marketed and, in particular, how they should be branded. This paper seeks to identify the relevant issues concerning the marketing and branding of large portfolios of financial service products. Using the brand portfolio model developed by Aaker and Joachimsthaler,¹ the paper analyses the brand portfolio strategies adopted by the UK's leading retail banks (Barclays, Lloyds TSB, NatWest/RBS and HSBC). The paper concludes that given the complexity of branding as a concept and in predicting how consumers will respond, ultimately all financial services need to experiment more both with how individual brands are positioned and advertised and what portfolios are optimal.     

Workplace isolation: Exploring the construct and its measurement

Virtual offices are a growing trend in today's work environment and are expected to influence marketing roles dramatically, especially selling. These conditions may lead to perceptions of isolation, both socially and organizationally. Workplace isolation is a twodimensional construct that represents individuals' perceptions of isolation from others at work and includes perceived isolation from both colleagues and from the company's support network. This article reports the results of a four‐sample study to develop and validate a selfreport scale for measuring the two facets of workplace isolation. The scale's usefulness for future research and management applications are discussed. © 2007 Wiley Periodicals, Inc.     

FIML estimation of the dynamic simultaneous equations model with ARMA disturbances

A method is presented for the estimation of the parameters in the dynamic simultaneous equations model with vector autoregressive moving average disturbances. The estimation procedure is derived from the full information maximum likelihood approach and is based on Newton-Raphson techniques applied to the likelihood equations. The resulting two-step Newton-Raphson procedure involves only generalized instrumental variables estimation in the second step. This procedure also serves as the basis for an iterative scheme to solve the normal equations and obtain the maximum likelihood estimates of the conditional likelihood function. A nine-equation variant of the quarterly forecasting model of the US economy developed by Fair is then used as a realistic example to illustrate the estimation procedure described in the paper.     

Computing equilibria with increasing returns

This paper shows how standard algorithms for solving economic general equilibrium models may be modified so as to solve models in which some or all industries have increasing returns to scale. The modification requires that some quantities as well as prices be quoted by the algorithmic auctioneer. It is applicable to a wide range of models in which firms pricing behavior follows simple rules. As an illustration of the technique a small general equilibrium model with increasing returns is presented and solved numerically.     

Mixed signals in HRM: the HRM role of hospital line managers1

Recently, Haggerty and Wright suggested that HR could be reconceptualised as signals sent to employees rather than practices. We examine this novel approach and consider how it fits in the practice. In hospitals, ward managers are intermediaries in relation to signals that are passed between upper managers and their staff. We discuss to what extent ward managers have the analytical and functional skills required to interpret and convey complex signals to the staff under their jurisdiction. We draw conclusions about the role of ward managers in the HR function of hospitals. There are theoretical and practical implications for the role of line managers more generally, beyond the hospital context.