Employment and wage dynamics in Estonia, 1989-951

This study monitors the effects of economic transition on wages and employment in a former Soviet Republic. Estonia's case is of particular interest because of its early adoption of relatively free labour market policies. Relative wages for the highest educated groups rose for all age groups. There were also rapid increases in returns to job experience, particularly at young ages. Increasing wage dispersion across human capital groups was accompanied by narrowing wage dispersion within human capital groups. Relative wages rose in sectors which gained relative employment, while they fell in shrinking sectors. In addition, there were large flows of labour between shrinking and growing sectors, suggesting that labour market equilibrating mechanisms developed very rapidly in Estonia.     

Using Limited Information to Support the Decision to Launch a New Product in the Fruit Juice Market: A Teaching Case Study

Fresh Juice Incorporated (FJI) is in the process of determining whether it should launch a new fruit juice, Genetically Enhanced (GE) Juice. The GE Juice meets consumers' demands for a tasty, nutritious product and it would be the first new juice product in the last fifteen years. Before FJI decides to launch GE Juice, it must analyze the uncertainty surrounding market size, market share, and price of GE Juice. Finally, if FJI decides to launch GE Juice, then they must decide if they will bottle the juice themselves or outsource this process. This case teaches students how to discuss the strategic implications of launching a new product and develop a net present value and financial feasibility simulation model given limited information.     

Mutual Fund Performance: Evidence from the UK

This paper uses a large sample containing the complete return histories of 2300 UK open-ended mutual funds over a 23-year period to measure fund performance. We find some evidence of underperformance on a risk-adjusted basis by the average fund manager, persistence of performance and the existence of a substantial survivor bias. Similar findings have been reported for US equity mutual funds. New findings not previously documented for other markets include evidence that mutual fund performance varies substantially across different asset categories, especially foreign asset categories. We also identify some new patterns in performance related to the funds' distance from their inception and termination dates: underperformance intensifies as the fund termination date approaches, while, in contrast, there is some evidence that funds (weakly) outperform during their first year of existence.     

Book reviews

B.G.Dale & J.J.Plunkett (eds) Hemel Hempstead, Philip Allan,1989, 350 pp., £ 18.00

Theories and Technologies of the Knowledge SocietyNiels Ole Finnemann (ed) Centre for Cultural Research, University of Aarhus, Denmark, 1989, 100 pp., DK40

The Internationalisation of Software and Computer Services OECD Paris, OECD, 1989, 180pp., Ff120

Techno-diplomacy. US-Soviet Confrontations in Science and Technology Glenn E. Schweitzer New York and London, Plenum Press, 1989, xiv f 320 pp., $23.00

Strategic Management of Services in the Arab Gulf States: Company and Industry Cases M. Sami Kassem & Ghazi M. Habib Berlin, Walter de Gruyter, 1989, 480 pp.     

Cultural tendencies in negotiation: A comparison of Finland, India, Mexico, Turkey, and the United States

In this era of increased global cooperation, a growing number of negotiators conduct business in multiple countries and, therefore, need access to a systematic comparison of negotiating tendencies across a wide range of countries. Empirical work systematically comparing variations across a range of cultures is scarce. A comparative analysis of negotiating tendencies in five countries is presented. This study establishes the utility of the [Salacuse, J. (1998) Ten ways that culture affects negotiating style: Some survey results. Negotiation Journal, 14(3): 221–235] framework in identifying country differences across five countries, representing five cultural clusters. Significant differences in negotiation orientations both between and within cultures were revealed at a level of complexity not found in previous empirical studies.     

Executive Compensation and Earnings Persistence

Governing boards utilize executive compensation contracts in an attempt to align executive actions with corporate goals. The objective is to ensure that executive performance provides value to the organization in terms of successful outcomes. A key performance criteria typically specified in CEO compensation contracts is earnings targets. However, using earnings as a performance evaluation may be problematic because some firms exhibit robust and sustained earnings over time (high earnings persistence), and other firms, such as high growth oriented firms, exhibit weak or sometimes negative earnings over time (low earnings persistence). Our study reveals that the effect of high earnings persistence results in firms that focus more heavily on cash compensation (salary and bonus) rather than on equity compensation (stock options, etc.) to compensate executive performance. Additionally, for firms characterized by low earnings persistence, our study indicates that cash flows from operations act as a supplementary performance measure to accounting earnings, and become increasingly important as a means to justify executive cash compensation.     

The dietary and health behaviour of young people aged 18–25 years living independently or in the family home in Liverpool,UK

An individual's dietary habits are largely developed during childhood and adolescence, and are likely to be determined by both nature (the development of sensory perceptions) and nurture (parental influence, and later on the influence of peers). However, diet is likely to evolve throughout the life cycle as circumstances change and new influences are introduced to an individual's lifestyle. An example of this is the changes in diet that occur as a result of the transition young people make away from the family home into independent living. Leaving behind the meals provided and cooked by parents/guardians and learning how to shop on a budget and prepare and cook for themselves may result in the adoption of poor eating habits, which is likely to have a detrimental effect on health. Leaving behind the restrictions of parental control may also result in the adoption of unhealthy lifestyle practices such as smoking and excessive alcohol consumption. This study therefore seeks to investigate the effect of leaving home on a young person's diet and lifestyle. Health behaviour and food intake was assessed by questionnaire. Findings suggest that a young person's diet may change after leaving home, but these changes are not necessarily negative. More negative health behaviour was observed in young people living independently.