Robotics: Challenges for the human resources manager

Robots present industry with the exciting possibility of improving productivity and cutting costs. But there are other kinds of costs involved—the human costs—and it is these that the human resources manager must keep to a minimum through careful planning and implementation of the new technology.     

Oil price shocks in a portfolio-balance model

In the 1970s oil price increases were often associated with downward pressure on the foreign exchange value of the dollar. In order to identify the factors generating this association, we examine an oil price shock in a portfolio-balance framework where a wealth transfer is generated by altered current account positions. We show that the exchange-rate impact of higher oil prices depends importantly on the asset prefernces of both oil importers and oil exporters, as well as exchange rate expectations, which are influenced by countries' abilities to adjust to higher oil prices.     

The holdings markup behavior of mutual funds: evidence from an emerging market

This paper uncovers a seasonal mutual fund holdings markup pattern in Taiwan’s market. Specifically, we find that fund’s equity holdings jump up significantly at the quarter-ends and year-end while drop back immediately to the previous level in the following month. While the holdings markup pattern found in this paper may look similar to the price markup phenomenon found by Carhart et al. (J Finance 57:661–693, 2002), the mechanism used by fund managers in the performance inflation may be quite different. In specific, while Carhart et al. (J Finance 57:661–693, 2002) document that fund managers use the stocks currently held in their portfolio to mark up the fund performance, we find that fund managers in fact use both the stocks already held in their portfolio and the new stocks to mark up their holdings. Furthermore, Carhart et al. (J Finance 57:661–693, 2002) do not explicitly examine if there exists a holdings markup in addition to the price markup. In this study, we fill this gap by directly exploring the holdings markup behavior by the fund managers. We also identify the specific stock characteristics that fund managers prefer in their holdings markup. In specific, fund managers prefer to trade growth stocks, stocks with larger market capitalization, higher institutional ownership, higher quality of earnings, and stocks in the high-tech industry, to inflate the fund performance. We also find that fund managers tend to avoid stocks that are herded by other funds.     

Difference in difference meets generalized least squares: Higher order properties of hypotheses tests

We investigate the estimation and inference in difference in difference econometric models used in the analysis of treatment effects. When the innovations in such models display serial correlation, commonly used ordinary least squares (OLS) procedures are inefficient and may lead to tests with incorrect size. Implementation of feasible generalized least squares (FGLS) procedures is often hindered by too few observations in the cross-section to allow for unrestricted estimation of the weight matrix without leading to tests with similar size distortions as conventional OLS based procedures. We analyze the small sample properties of FGLS based tests with a formal higher order Edgeworth expansion that allows us to construct a size corrected version of the test. We also address the question of optimal temporal aggregation as a method to reduce the dimension of the weight matrix. We apply our procedure to data on regulation of mobile telephone service prices. We find that a size corrected FGLS based test outperforms tests based on OLS.     

Using Video Surveys to Access Dispersed Backcountry Visitors' Norms

Image Capture Technology (ICT), or the capture and editing of photographic images using microcomputers, has been used in a variety of settings to assess social and ecological impacts. This study illustrates the application of this technology in a VHS videotape survey designed to assess visitors' norms for varying numbers of watercraft, sounds from aircraft and motorized boats, and the acceptability of floating outfitting camps. Acceptability ratings for three setting contexts (access areas, attraction sites, and wild places) within Gwaii Haanas National Park Reserve, British Columbia, were evaluated. Methodologically, use of the videotape survey proved to be a cost effective vehicle in evaluating both sight and sound impacts. More than 75% of the respondents indicated that the images served as useful reminders of their visit and helped them articulate their norms. These normative standards were consistent with other studies conducted in backcountry areas. The implications of this technology for addressing natural resource management issues are discussed.     

Issues and Opportunities in the Professional Services

Professional practice management has been a largely ignored discipline for many years. Most universities do not offer courses in administration and marketing as they are not considered appropriate for the professional. Yet with threats created by public intervention, technological change, rapidly rising practice costs, high practice failure rates, increased competition and high promotion costs, new and unique strategies for professional practice administration are required. This study focuses on the issues and new strategies available to those in professional services.     

Does investor protection regime affect the effectiveness of outside directorship on the board?

Since the Sarbanes-Oxley Act was enacted in U.S., there has been a general tendency to globally harmonize regulations and practices of board governance. The purpose of this study is to compare among countries how well the board of directors constrains earnings management. Using a sample of firms from 23 countries, we document some evidence that higher outside directorship on the board is associated with lower earnings management in the international context. We also find that there is no significant difference in the effectiveness of board outside directorship in constraining earnings management between high and low investor protection countries. Our findings mitigate a concern that harmonized corporate governance in low investor protection countries may not work.     

Losses due to manipulation of social choice rules

In a companion paper, “Gains from Manipulating Social Choice Rules,” we analyzed the incentive to manipulate by considering the maximum number of ranks someone can gain in their preference ordering by manipulation. This paper treats the number of ranks someone else can lose due to manipulation. We find large classes of rules where that loss is very large, a few rules where the loss can be significantly smaller, and even some rules where no one ever loses—even though manipulation will take place.