Machine Learning and Expert Judgement: Analyzing Emerging Topics in Accounting and Finance Research in the Asia–Pacific

In this paper, we focus on the question to what extent machine learning (ML) tools can be used to support systematic literature reviews. We apply a ML approach for topic detection to analyze emerging topics in the literature—our context is accounting and finance research in the Asia–Pacific region. To evaluate the robustness of the approach, we compare findings from the automated ML approach with the results from a manual analysis of the literature. The automated approach uses a keyword algorithm detection mechanism whereby the manual analysis uses common techniques for qualitative data analysis, that is, triangulation between researchers (expert judgement). From our paper, we conclude that both methods have strengths and weaknesses. The automated analysis works well for large corpora of text and provides a very standardized and non-biased way of analyzing the literature. However, the human researcher is potentially better equipped to evaluate current issues and future trends in the literature. Overall, the best results might be achieved when a variety of tools are used together.     

The outsourcing of R&D through acquisitions in the pharmaceutical industry

We examine the performance of 160 pharmaceutical acquisitions from 1994 to 2001 and find evidence that on average acquirers realize significant positive returns. These returns are positively correlated with prior acquirer access to information about the research and development activities at target firms and a superior negotiating position. A unique Desperation Index is employed to determine the current status of a firm's internal productivity. We find that firms experiencing declines in internal productivity or which are more desperate are more likely to engage in an outsourcing-type acquisition in an effort to replenish their research pipelines.     

Do monetary subjective well-being evaluations vary across space? Comparing continuous and discrete spatial heterogeneity

Using subjective well-being estimations, this study analyzes whether compensating variations vary across space using a cross-sectional data set from Chile. To achieve this goal, it describes and compares two econometric ways of modelling unobserved spatial heterogeneity. Both approaches allow compensating variations to vary across spatial units by assuming some distribution a priori. One method assumes that the spatial heterogeneity can be represented by a discrete distribution (a group of regions that share the same coefficient) and the other that the preferences can be represented by a continuous distribution (each region has a different coefficient). The results show that focusing just on the average estimates of compensating variations, as the applied studies have done so far, masks useful local variation. More empirical studies are needed to assess the advantages and disadvantages of both econometric approaches and how their results compare across a wide range of conditions and samples.     

Stakeholder Engagement: Defining Strategic Advantage for Sustainable Construction

Although sustainable development is increasingly becoming a part of business plans, it is unclear what makes the economic, social and environmental dynamics strategically compatible. This research examines which of the following in sustainable development – government policy, managerial attitude and stakeholder engagement – is the most influential on the profitability of companies in the UK construction sector. Quantitative and qualitative analyses were rendered through a survey and semi‐structured interviews. Patterns of ambiguity in legislation were discovered as an obstacle for changing the sector's mind‐set. Stakeholder engagement was identified as the defining factor increasing managers' awareness, helping legislation to be effectively implemented and making sustainability highly appealing to clients. These findings indicate that to gain competitive advantage, companies should embark on long‐term strategic alliances which adopt the proposals of environmental non‐governmental organisations and closely follow public opinion. This, strengthens brand equity, allows for premium pricing, increases market share and maximizes profit. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Corporate Stock and Bond Return Correlations and Dynamic Adjustments of Capital Structure

This paper analyses the effects of dynamic correlations between stock and bond returns issued by the same firm on the speed of adjustment towards target leverage. The results show that the estimated correlations are time varying, show persistence and differ among firms. Analysis of the potential explanatory variables reveals that the correlations decrease with negative expectations about future aggregate risks, but only for firms with a low default probability. In contrast, correlations are positively associated with specific risk measures, especially idiosyncratic stock risk and financial leverage. The positive relationship between the correlations and the leverage ratio suggests that target leverage can be achieved faster when the stock–bond correlation is high. Our results show that this is the case.     

Michael Redclift. Chewing Gum: The Fortunes of Taste

Chewing gum was foremost an American invention, Michael Redclifttells us in Chewing Gum: The Fortunes of Taste, a brief yetserious and engaging book that details how chewing gum cameto occupy a distinct place in the rise of American consumerism.Perhaps nothing signified the triviality of consumerism as chewinggum. It possessed what Redclift calls an "ephemeral quality,"it was an easily replicable mass product, and provided instantgratification. This ephemerality was complicated by     

Impact of IT Service Management Frameworks on the IT Organization

Over 90 percent of companies are estimated to use IT Service Management (ITSM) frameworks, yet there is little research on their benefits to the Information Technology (IT) department and the business units. An international survey of 491 firms was conducted to assess the benefits of the IT Infrastructure Library (ITIL), the de-facto ITSM framework, specifically on how these benefits evolve as companies increase their adoption of the ITIL model. Also studied are the perception of challenges of the implementation and the number of ITIL processes implemented in relation to the progress of the adoption of ITIL. Results indicate that as the maturity of implementation increases, the perception of challenges decreases. Findings also show that as the maturity of implementation increases, the number of realized benefits increases, as well as the number of implemented ITIL processes. Implications for practitioners and researchers are also discussed.