Product choice for a firm selling related products: A parimutuel application

This paper provides a framework for analysis of product choice by a multiproduct firm selling several products whose demands are interrelated. The decision making process of a racetrack-racebook regarding the parimutuel wagering products (both number and which ones) it should supply is illustrated. A racetrack-racebook is a business entity, which offers its patrons the opportunity to wager, not only on live horse racing conducted at the racetrack but also on races simulcast to that racetrack from a variety of racetracks, from both in-state and out-of-state locations. The demands for these wagering products are interrelated and these interrelationships play a key role in determining the number (and which ones) of these wagering opportunities that will be supplied. Based on the experience of a specific racetrack-racebook, these demand functions are estimated econometrically and the role of these interrelated demands in the supply decision is explored. An algorithm is developed to search over all possible product portfolios to determine that combination of products yielding the highest sales, revenue, or profit.     

Farmers’ motivations,risk perceptions and risk management strategies in a developing economy: Bangladesh experience

Aquaculture farmers’ risk perceptions and risk management strategies have still received little attention in agricultural research. Therefore, an exploratory study has been undertaken to provide empirical insight into Bangladeshi coastal shrimp farmers’ risk perceptions and risk management responses. Data from our study show that 95% of farmers have no formal training in shrimp aquaculture. Shrimp farmers’ cooperative societies operate in only 13.3% of the studied areas and only 15% of shrimp farmers are involved with these cooperative societies. The results reveal that shrimp diseases, price and availability of quality shrimp seeds, exploitation by intermediaries and uncertainty about the future demand for shrimp in foreign markets are perceived as the most important sources of risk. On the other hand, prevention of disease, timely supply of shrimp seeds, elimination of middlemen from the supply chain and farm management training are considered among the best methods to manage the risks in the shrimp‐farming business. We also observe some disparities in farmers’ perceptions. For instance, farmers mentioned that removal of influence of middlemen from supply chain is essential for the betterment of their business. However, they did not consider market monitoring, direct contract with processors and improved marketing facilities as important risk management strategies, although these factors play a significant role in reducing the influence of intermediaries and private money lenders.     

Earnings quality,bankruptcy risk and future cash flows

Prior research suggests that the quality of accruals may be compromised where the magnitude of accruals is abnormally high, due to the presence of errors in the accruals‐estimation process (Dechow and Dichev, 2002; Richardson, 2003). A consequence of this is that abnormal accruals may not map into realised future cash flows to the extent that would normally be expected of accruals data. Indeed, the association may be insignificant if abnormal accruals consist primarily of estimation noise. Our study investigates whether abnormal accruals for UK firms provide incremental insight into future cash flows. In particular, our paper may be viewed as a development of Subramanyam (1996). We find a significant positive association between abnormal accruals and one‐year‐ahead operating cash flows. This provides a rationale for the pricing of abnormal accruals by the market (Subramanyam, 1996; Xie, 2001) and suggests that abnormal accruals are not merely the products of noise in the accruals‐estimation process. However, our results are conditional upon the probability of one‐year‐ahead bankruptcy risk (Charitou et al., 2004). We also find that abnormal accruals possess small but significant explanatory power for future cash flows even when controlling for the disaggregation of accruals into individual items (Barth et al., 2001).     

Ranking and clustering of the faculties of commerce research performance in Australia

There is a growing policy focus in Australian higher education on quantitative research performance assessment. However, most of the analysis has addressed aggregate performance at the institutional level, an approach inconsistent with recent policy emphasis on diversity among universities and one that ignores performance variations across disciplines. Using averaged and all available data for 2000–2004, cluster analysis is used to classify Australian Commerce Faculties into groups that exhibit similar research performance, measured by publication, PhD completion and secured competitive research grant funding. We also use factor analysis to generate full-multidimensional rankings within the resulting two or three clusters. It is found that in terms of total research output, with the exception of Adelaide all the Group of 8 (Go8) members plus University of Technology, Sydney and Griffith always belong to ‘Clusters A’. However, when research performance is expressed in per academic staff terms, an additional 11 universities join this same cluster. Our results additionally show that eight Australian faculties of Commerce not only possess low total research output but their per capita performance is also poor.     

Measuring the impact of natural disasters on capital markets: an empirical application using intervention analysis

The impact of natural disasters on the Australian equity market is examined. The data set employed consists of daily price and accumulation returns over the period 31 December 1982–1 January 2002 for the All Ordinaries Index (AOI) and a record of 42 severe storms, floods, cyclones, earthquakes and bushfires (wildfires) during this period with an insured loss in excess of A$5 mil. and/or total loss in excess of A$100 mil. Autoregressive moving average (ARMA) models are used to model the returns and the inclusion of news arrival, in the form of the natural disasters, is specified using intervention analysis. The results indicate that bushfires, cyclones and earthquakes have a major effect on market returns, unlike severe storms and floods. The net effects can be positive and/or negative with most effects being felt on the day of the event and with some adjustment in the days that follow.     

Oil shocks and the dynamics of substitution adjustments of industrial fuels in the US

This paper investigates substitution among such alternate fuels as coal, natural gas, and electricity during the actual oil price increases of 1970s. These substitution adjustments are assumed to be dynamic and modelled by a partial adjustment structure. This dynamic structure is incorporated into a translog cost technology. Short- and long-run price elasticities are estimated by identifying inter- and intra-industry variations. The models are estimated with a sample of 88 pooled observations, including distillate and residual oils purchased by eleven 2-digit manufacturing groups (1974-81). Models are estimates are strictly negative. These own price elasticities range from (long-to short-run) –2.93 to –2.55 for distillate oil, –0.698 to – 1.53 for residual oil, –0.533 to 0.011 for coal, –0.235 to –0.213 for natural gas, to –0.888 to –0.845 for electricity. Estimastes of both short-run and long-run cross-price elasticities suggest that coal and electric energy are the prominent substitutes for fuel oils. While the relationship between the latter and natural gas remains largely complementary.     

Transfer of Marketing Knowledge Within Business‐Nonprofit Collaborations

Companies often develop collaborative joint ventures with nonprofits, and sometimes help their nonprofit partners with the marketing activities associated with these projects. Often, the assistance furnished is embodied in a transfer of knowledge from a firm to a nonprofit and involves knowledge about marketing techniques, strategies and methods. This article presents the results of a survey concerning the extents, natures and effectiveness of marketing knowledge transfers taking place between 291 UK enterprises and their nonprofit partner organisations. The survey covered the knowledge transfer methods that companies employed, the scope of the knowledge communicated, the factors that encouraged or impeded marketing knowledge transfer, and the considerations that determined which partner completed most of the marketing tasks associated with a project. It emerged that knowledge transfers occurred mainly through face‐to‐face communications, though with little formal teamworking. Both the extent and the effectiveness of transfers depended on the degree of marketing knowledge within the nonprofit partner, on levels of knowledge specificity and project complexity, and on the financial importance of the collaboration. The extent of knowledge transfer was additionally influenced by cultural and organisational distance. Similar considerations affected commercial partners' decisions to do most of the marketing work required by a collaboration. Such decisions were especially likely if anti‐marketing bias existed within the nonprofit organisation and if the nonprofit's staff knew little about marketing.     

Implicit Leadership Theories of Bruneians

A leader's effectiveness is affected by the followers’ acceptance of the leader as their leader. Followers rely on their cognitive schema to judge whether someone deserves to be considered a leader. This cognitive schema is the implicit leadership theory (ILT) individuals have on the qualities of a leader. When leaders are perceived as conforming to this ILT, they are seen as leaders, and followers accept their influence attempt. This study examined the ILT of Bruneians. The findings indicate that Bruneians are associated with a distinct ILT and shows that gender and personality variables predict the variation in ILT.     

The Impact of Social Influence on Individuals' Adoption of Innovation

This article empirically examines the impact of social factors (peer and social network) on attitudes toward innovation and the impact of that attitude on individual employees adopting innovation in their workplaces in Australia. This research uses quantitative research methodology and specifically multivariate statistical analysis. The research framework is based on the theory of reasoned action, the technology acceptance model, Frambach and Schillewaert's conceptual framework, and the unified theory of acceptance and use of technology. Data were collected from employees of a tertiary institution in Australia using a structured questionnaire. The results of multiple regression analysis show that social network impacts significantly on attitudes toward an innovation which, in turn, affects the innovation adoption behavior of employees. Furthermore, social network has been found to directly influence the innovation adoption process. This outcome has strategic implications for organizations in the effective management of innovation involving employees. These implications are highlighted in the article. This research has focused on only one organization in a particular region in Australia. Future research can explore the relationship between variables by including a number of organizations across Australia and beyond to provide a deeper insight into the issues explored in this article.     

Linking Human Resource Development Practices to Counterproductive Work Behaviour: Does Employee Engagement Matter

ABSTRACT

Although there is strong evidence in the literature to support the relationship between human resource development (HRD) practices and counterproductive work behavior (CWB), little is known about the psychological processes underlying this relationship. The present study examined whether employee engagement mediates the relationship between HRD practices and CWB. Participants were 271 employees enroled in a part-time Master of Business Administration (MBA) program at a large public university in Nigeria. After controlling for demographic characteristics, results showed that HRD practices were negatively related to CWB. The results also indicated that employee engagement plays a role in mediating the relationship between HRD practices and CWB.