Gender differences in self‐employment

This paper examines the factors that influence transitions into self‐employment, paying particular attention to gender differences. We find that: (i) men are more responsive to the wage differential between wage/salaried employment and self‐employment; (ii) liquidity constraints are more important for men; and (iii) the link between father's self‐employment status and the probability of self‐employment is stronger for men. Taken together, these results suggest that, for women, self‐employment is a closer substitute for part‐time work and labour‐market inactivity than it is for men. We attribute such differences to the different labour market opportunities and occupational strategies of women.     

WAITING TIME AS A PRICE FOR DECEASED DONOR KIDNEYS*

Kidney transplant candidates can obtain organs immediately from living donors or wait for deceased donor organs. I hypothesize that as waiting time for deceased donor organs increases, more patients will seek living donors. I estimate the impact of the availability of deceased donor organs on the use of living donor transplantation. The model, which is identified using within‐region variation in the demand for and supply of kidneys, shows evidence of a substitution effect. A five unit increase in the supply of deceased donor kidneys will result in one fewer living donor transplant for a net increase of four transplants. (JEL I18, H44, D45)     

DO SCHOOL LUNCH SUBSIDIES CHANGE THE DIETARY PATTERNS OF CHILDREN FROM LOW‐INCOME HOUSEHOLDS?

This article examines the effects of school lunch subsidies provided through the means‐tested component of the National School Lunch Program on the dietary patterns of children aged 10–13 years in the United States. Analyzing data on 5,140 public school children in fifth grade during spring 2004, we find significant increases in the number of servings of fruit, green salad, carrots, other vegetables, and 100% fruit juice consumed in 1 week for subsidized children relative to unsubsidized children. The effects on fruit and other vegetable consumption are stronger among the children receiving a full subsidy, as opposed to only a partial subsidy, and indicate the size of the subsidy is an important policy lever underlying the program's effectiveness. Overall, the findings provide the strongest empirical evidence to date that the means‐tested school lunch subsidies increase children's consumption over a time period longer than one school day. (JEL H51, I12, I38)     

Bids and Allocations in European IPO Bookbuilding

This paper uses evidence from a data set of 27 European IPOs to analyze how investors bid and the factors that influence their allocations. We also make use of a unique ranking of investor quality, associated with the likelihood of flipping the IPO. We find that investors perceived to be long‐term holders of the stock are consistently favored in allocation and in out‐turn profits. In contrast to Cornelli and Goldreich (2001) , we find little evidence that more informative bids receive larger allocations or higher profits. Our results cast doubt upon the extent of information production during the bookbuilding period.     

COMPUTER ASSISTED ANALYSIS OF CONSUMER COMPLAINTS OF TEXTILE ITEMS

Results of the analysis of consumer complaints to Citizens' Advice Centres indicate that many of the complaints concerning textile articles are unfounded. This is often due to a lack of appreciation of such factors as the properties of different materials, care and size labelling and correct washing and ironing procedures.     

An empirical analysis of the expenditure budget in research and development*

Abstract. This paper extends the prior empirical research that explains the perceived use or importance of budget control or both, with organizational context and structure in manufacturing organizations. In this paper, the perceived importance of expenditure budget control in research and development (R&D) work groups is explained empirically by organizational context (R&D work group size, source of R&D funding, and size of R&D budget) and the management control system (steps in the control process, social control). Data obtained from 76 R&D work groups in ten organizations support the five hypotheses. Generally, there is an interaction between the steps in the control process and each of the other independent variables on the perceived importance of expenditure budget control for management control of the R&D work group. Résumé. Le présent article s'inscrit dans le prolongement des travaux de recherche empiriques précédents visant à expliquer l'utilisation perçue du contrôle budgétaire ou son importance - sinon les deux - dans le contexte et la structure d'organisation des entreprises manufacturières. Dans cet article, l'importance du contrôle du budget des investissements perçue par les groupes de travail en recherche et développement (R & D) s'explique concrètement par le context organisationnel (la taille du groupe de travail en R & D, la source de financement des activités de R & D et l'importance des crédits affectés à ces activités) et par le système de contrôle de gestion (étapes du processus de contrôle, contrôle social). Les données obtenues auprès de 76 groupes de travail en R & D dans dix organisations viennent confirmer les cinq hypothèses des auteurs. L'on relève, de façon générale, une interaction entre, d'une part, les étapes du processus de contrôle et chacune des autres variables indépendantes et, d'autre part, l'importance perçue du contrôle du budget des investissements aux fins du contrôle de gestion du groupe de travail en R & D.     

The Difference between Earnings and Operating Cash Flow as an Indicator of Financial Reporting Fraud*

This paper examines the relation between earnings and operating cash flow to derive and test an indicator of financial statement fraud. Accrual measurement concepts indicate that financial statement fraud should be associated with high levels of earnings relative to operating cash flow. We demonstrate that the excess of earnings over operating cash flow is extreme in most fraud cases in years immediately prior to the fraud discovery based on a sample of 56 fraud cases from 1978 to 1991. We compare the distribution of the earnings minus operating cash flow variable for fraud firms with that for a sample of 60,453 firm-years for firms listed on COMPUSTAT. We test a logistic regression model in which the discovery/nondiscovery of fraud is the dependent variable, and earnings minus operating cash flow is the explanatory variable. Other control variables are included in the model based on prior studies. Results are consistent with expectations derived from accrual measurement theory. We then examine the predictive ability of the model using our sample of fraud firms and a sample of nonfraud firms in the same four-digit SIC code industries. Observations for the fraud firms are for the fiscal year prior to the discovery of fraud. Observations for the nonfraud firms are for the same fiscal years as the fraud firms in the same industries. The predictive ability of the model, including the excess of earnings over operating cash flow, is substantially higher than the predictive ability of the model omitting this variable. We conclude that the earnings-operating cash flow relation provides important information for those interested in identifying financial statement fraud, especially when considered in conjunction with other factors associated with fraud risk.