Forecasting interest rates with shifting endpoints

We consider forecasting the term structure of interest rates with the assumption that factors driving the yield curve are stationary around a slowly time‐varying mean or ‘shifting endpoint’. The shifting endpoints are captured using either (i) time series methods (exponential smoothing) or (ii) long‐range survey forecasts of either interest rates or inflation and output growth, or (iii) exponentially smoothed realizations of these macro variables. Allowing for shifting endpoints in yield curve factors provides substantial and significant gains in out‐of‐sample predictive accuracy, relative to stationary and random walk benchmarks. Forecast improvements are largest for long‐maturity interest rates and for long‐horizon forecasts. Copyright © 2013 John Wiley & Sons, Ltd.     

Internationalizing audit education

Audit education is typically offered only to accounting majors. We argue that auditing provides a way of thinking that could serve as a framework for an accounting curriculam. We describe two parts of a course content that could be incorporated into an existing auditing course or a begining accounting course. The first section emphasizes accountability; the second emphasizes the role of the auditor in the accountability process. The concepts are best taught within an international paradigm that permits examination of various institutional environments.     

Approach and Avoidance Motivation: Investigating Hedonic Consumption in a Retail Setting

Retail shopping studies often conclude that desirable shopper behaviors, such as spending more money, indicate underlying approach motivation, while undesirable behaviors, such as leaving the store, indicate underlying avoidance motivation. However, hedonic consumption would seem to provide an opportunity not only for approaching fun and excitement but also for avoiding problems and stress in everyday life. This study investigates approach and avoidance motivations in a hedonic consumption context. Results show that both approach and avoidance motivation lead to heightened hedonic motivations for shopping and to more positive shopper evaluations. Additional investigation reveals several differences by gender and across four shopping contexts. Several theoretical and managerial implications are offered.     

Shifting models of equality? Union Equality Reps in the public services

This article explores how far the emergence of public sector Equality Representatives represents a departure from a distinct radical model of union self‐organisation generated by the collective mobilisation of politically conscious identities, towards a more inclusive liberal model of equality based on abstract notions of ‘fairness’.     

Environmental impacts of changes to healthier diets in Europe

Food consumption causes, together with mobility, shelter and the use of electrical products, most life cycle impacts of consumption. Meat and dairy are among the highest contributors to environmental impacts from food consumption. A healthier diet might have less environmental impacts. Using the E3IOT environmentally extended input output database developed in an EU study on Environmental Impacts of Products (EIPRO), this paper estimates the difference in impacts between the European status quo and three simulated diet baskets, i.e. a pattern according to universal dietary recommendations, the same pattern with reduced meat consumption, and a ‘Mediterranean’ pattern with reduced meat consumption. Production technologies, protein and energy intake were kept constant. Though this implies just moderate dietary shifts, impact reductions of up to 8% were possible in reduced meat scenarios. The slightly changed food costs do not lead to significant first order rebound effects. Second order rebounds were estimated by applying the CAPRI partial equilibrium model. This analysis showed that European meat production sector will most likely respond by higher exports to compensate for losses on the domestic meat market. Higher impact reductions probably would need more drastic diet changes.     

Regulatory Focus Intensity and Evaluations of Retail Experiences

Previous research indicates that consumers differ in their evaluation of and response to similar retail experiences. Reporting results from three studies, the current research proposes consumers’ regulatory focus intensity as one possible source of this variation. Study 1 examines how consumers’ regulatory focus intensity influences their in‐store behavioral intentions following good and bad shopping experiences. Study 2 illustrates how consumers’ regulatory focus intensity impacts their future loyalty intentions after satisfactory retail experiences. In Study 3, the researchers explore how retailers can employ regulatory framing in their communication messages to increase the future loyalty intentions of those chronically less loyal consumers. Lastly, theoretical and managerial implications as well as limitations of this research are discussed.     

A new fluctuation test for constant variances with applications to finance

We present a test to determine whether variances of time series are constant over time. The test statistic is a suitably standardized maximum of cumulative first and second moments. We apply the test to time series of various assets and find that the test performs well in applications. Moreover, we propose a portfolio strategy based on our test which hedges against potential financial crises and show that it works in practice.     

Women abroad: getting the best results from women managers

Abstract This study explores the work environment of expatriate women managers in American corporations and investigates the determinants of their job satisfaction. The strategic importance of global assignments has increased over the years. The real cost of unsuccessful expatriates extends beyond the monetary expenses. As the number of women managers working overseas increases, so does the importance of this topic. Additionally, because women in expatriate positions are relatively new, their needs for job satisfaction and career aspirations are not known to most organizations. This research intends to fill this gap. The study concentrates on four major areas that are considered important for obtaining job satisfaction: (1) the way in which organizations design their overseas jobs, (2) women's skills and characteristics, (3) international human resource policies of companies and (4) the cultural environment of host countries. The applied research covers two phases: a study of expatriate managers during their assignments overseas and the evaluation of overseas experience upon their return. The results indicate that women in overseas assignments are satisfied overall with their jobs. However, organizational variables are more strongly related to job satisfaction. The nature of job design in overseas postings has the greatest impact on women's job satisfaction. When the jobs are enriched, women gain intrinsic rewards and have high job satisfaction. Organizational support also contributes to the satisfaction of women expatriates. Training, mentoring and repatriation preparations have high impact on women's success and satisfaction. Women expatriates are more concerned with their repatriation and future advancement than their present assignments. The findings are important for theoretical and practical reasons. Theoretically, the achievement and satisfaction of women managers overseas cannot be simplified without taking into account organizational, personal and cultural factors. Practically, companies need to respond to the individual needs of expatriate women managers and then decide on their assignments and their repatriation accordingly.