Identifying Performance Measures of Small Ventures—The Case of the Tourism Industry

Drawing on the goal theory to effectiveness, the current research study attempts to identify performance measures of small ventures by focusing on the tourism industry and by doing so develops a conceptual model of small-venture performance in a service industry within its unique conditions. After reviewing theory and research on small venture performance measures in general and in service industries in particular, we propose that performance measures of small tourism ventures constitute a combination of short- and long-term measures. Furthermore, both types of measures include both objective and subjective dimensions. The findings, based on a cluster sample of 305 small tourism venture owner–managers that were interviewed face to face, generally supported the research proposition. The study emphasizes the importance of mapping the venture's achievements, allocating resources, and developing managerial skills to improve its performance and ability to survive in the long run.     

Interim audit scope,client size and client familiarity: An empirical analysis

This study investigates the scope of an audit conducted during the first part of the annual auditing cycle. It measures empirically the probability of auditing various balance sheet and income statement accounts. The results indicate that current assets and liabilities have a higher probability for an interim audit than fixed assets, long-term debt and equity accounts. Furthermore, the likelihood of including each account in an interim audit increases with client size, so the larger an auditee, the wider the audit scope during the beginning of the audit cycle. Also, the empirical results indicate that the lower the familiarity of the auditor with the auditee, the wider the scope of an interim audit. These results seem to be consistent with auditing theory and intuition.     

Analysis of efficient markets

A simple trading model is presented in which Bayes’ rule is used to aggregate traders’ forecasts about risky assets’ future returns. In this financial market, Bayes’ rule operates like an omnipotent market-maker performing functions that in 1776 Adam Smith attributed to an “invisible hand.” We have analyzed two distinct cases: in the first scenario, the traders’ forecast errors are uncorrelated, and in the second scenario, the traders’ forecast errors are correlated. The contribution of our paper is fourfold: first, we prove that the “efficient market” mean-return can be expressed as a complex linear combination of the traders’ forecasts. The weights depend on the forecast variances, as well as on the correlations among the traders’ forecasts. Second we show that the “efficient” variance is equal to the inverse of the sum of the traders’ precision errors, and is also related to the correlations among the traders’ forecast errors. Third, we prove that the efficient market return is the best linear minimum variance estimator (BLMVE) of the security’s mean return (in the sense that it minimizes the sum of the traders’ mean squared forecast errors). Thus, an efficient market aggregates traders’ heterogeneous information in an optimal way. Fourth, we prove that an efficient market produces a mean return (price) as a Blackwell sufficient (most informative) experiment among all possible aggregated expected return (price) forecasts.     

Patterns on an ancient artifact: a coincidence?

The Phaistos Disk is an ancient artifact from Crete. At each side of the disk, a series of unknown signs is written along a spiral. Professional archaeologists expect that we will only learn what it is until similar objects are found. A statistical analysis in this article shows what it is not: it is not a one‐dimensional text, since there are relations between the signs in adjacent windings of the spiral. Three patterns of such relations have been identified. A Monte Carlo simulation of one of them has been performed, using a model of the spiral form. It is concluded that the probability of this pattern being coincidental is small, well below the conventional threshold.     

Monetary integration between the Israeli,Jordanian and Palestinian economies

Monetary Integration between the Israeli, Jordanian and Palestinian Economies. —The peace process between Israel and the Palestinians raises some interesting economic questions concerning integration between the West Bank, Gaza and Israel. Past and current arrangements between Israel, the occupied territories and Jordan are described, especially the flows of goods and labour. The authors’ findings indicate that Israel, the West Bank and Gaza were closely integrated, whereas economic integration between the occupied territories and Jordan was much weaker. Based on these circumstances of the past, the (imposed) monetary union between Israel and the Palestinian economy was warranted. However, optimal monetary arrangements in the future will depend on the extent of changes in real flows and on a satisfactory settlement of the seigniorage issue.     

Evaluation Periods and Asset Prices in a Market Experiment

We test whether the frequency of feedback information about the performance of an investment portfolio and the flexibility with which the investor can change the portfolio influence her risk attitude in markets. In line with the prediction of myopic loss aversion (Benartzi and Thaler (1995)), we find that more information and more flexibility result in less risk taking. Market prices of risky assets are significantly higher if feedback frequency and decision flexibility are reduced. This result supports the findings from individual decision making, and shows that market interactions do not eliminate such behavior or its consequences for prices.     

The cumulative nature of the entrepreneurial process: The contribution of human capital,planning and environment resources to small venture performance

The study is theoretically grounded in the resource-based view and applied to a service industry-tourism. It examined the performance of small ventures by utilizing an integrated dynamic model of entrepreneur choices and resource accumulation. Each phase in the process is added to previous one. Findings from 305 small tourism ventures revealed that the human capital of the entrepreneur, particularly managerial skills, were the greatest contributing factor to performance. This was followed by venture type. The study illustrates the unique nature of the entrepreneurial process among small ventures, often defined as “lifestyle businesses”.     

Introduction of new technology: making use of recent insights from sociolcmgy and economics of technology

Retrospective studies have shown the non-linear and situated character of technological developments; the importance of articulation of demand and of acceptability, and how these are part of large socio-technical transformations; and how technical nd socio-technical alogment activities occur and are consciously shaped by 'macro-actors'. These insights are transformed into thirteen suggestions for successful introduction of new technology.