Robust anomalies? A close look at accrual‐based trading strategy returns

The last 40 years have seen an extensive literature documenting so‐called anomalies in major capital markets. Evidence of ‘abnormal’ returns associated with trading strategies based on readily observable phenomena such as accounting‐based data involves experimental design choices that can be expected to influence the results. We show how evidence of an accrual anomaly in Australia is sensitive to research design specifications such as the choice of proxy for total accruals; the definition of abnormal returns (i.e. the return generating model); the impact of data trimming as a response to exceptionally large returns; and the choice between value and equal weighting of returns. We show that research design choices do matter and help reconcile conflicting prior evidence of any accrual anomaly in Australia. More broadly, our results suggest the need for caution in drawing inferences from trading strategy tests which claim to identify anomalies.     

Expanding the Tension‐Reduction Model of Work Stress and Alcohol Use: Comparison of Managerial and Non‐Managerial Men and Women*

abstract The tension‐reduction model that links workplace stress to alcohol use and problems has received mixed support in previous investigations. Following recommendations that this model include moderated mediated relationships ( Frone, 1999 ) using more specific forms of workplace stress, we examine the impact of gender ratio, generalized workplace abuse, and stereotype threat in an effort to predict alcohol use and problems particularly for managerial women. A total of 1410 (57 per cent response rate) employees completed a survey containing items on job stress, escapist reasons for drinking, and alcohol consumption and problems, and SEM analyses were conducted separately for managerial and non‐managerial men and women. Results revealed that: (a) these three workplace stressors were differentially related to general workplace stress for the four groups; and (b) the contributions of the three stressors and of general work stress to the alcohol‐related variables varied by group.     

The Poverty of Politics: How Income Redistribution Hurts the Poor

In spite of the significant research literature identifying a tradeoff between income redistribution and economic growth, massive public programs have been implemented to help the poor by transferring income to them. Since Lyndon Johnson's war on poverty began in 1964, over 3.5 trillion dollars have been transferred. However, the possibility that everyone, including the poor, may in fact be made worse off by the transfer has largely been ignored. With a simple algebraic model, the authors demonstrate that, over time, both high and low-income groups are harmed by redistribution. In addition, social mobility, as well as political concerns with relative poverty and international income redistribution increases the damage to all income groups produced by redistribution.     

THE EFFECTIVENESS OF ISRAEL'S MINISTRY OF AGRICULTURE IN DIRECTING FARM INVESTMENT

This study tries to determine whether the kibbutz settlements in Israel follow the investment policy, as set by the Ministry of Agriculture. A regression analysis, which was applied to data from 66 settlements, shows that the Ministry does direct the settlements to invest in approved projects financed by long term funds.     

Mean value theorem for convex functions

Closed proper convex functions have many properties in common with differentiable functions such as continuity and one-sided directional derivatives. In this paper it is shown that there exists a mean value theorem for such functions with the gradient vector in the differentiable case replaced by an element of the subdifferential in the convex case.Under compactness of the isoquant sets, (minus) the cost functions are convex and with the theorem above it is easy to show that under incomplete specialization and constant returns to scale the prices of international goods determine uniquely the prices of domestic goods if the isoquant sets are linearly independent.