Accounting for output fluctuations in manufacturing

There is a substantial body of evidence to the effect that output is more volatile than sales among manufacturing industries. Numerous explanations have been advanced to account for this excess output volatility. Some examples are pro-cyclical inventory movements induced by a stockout-avoidance motive, cost and technology shocks and decreasing marginal costs. This article assesses the contribution of these different motives to output volatility for six different manufacturing industries. Linear–quadratic models are estimated for each of the industries and then dynamic simulations are employed to determine the volatility of output when one or more of the factors are removed from the model. Technology shocks provide the most significant contribution to output volatility. The stockout-avoidance motive is also important. Cost shocks provide a very small contribution and marginal production costs are increasing at the margin and thus stabilize output. It is also shown that output volatility declines when current values of sales and material costs are assumed known rather than forecasted from prior periods’ values.     

The earnings announcement premium around the globe

U.S. stocks have been shown to earn higher returns during earnings announcement months than during non-announcement months. We document that this earnings announcement premium exists across the globe. Moreover, it is not isolated to a few countries. Of the 20 countries with enough data to conduct a within-country analysis, nine exhibit a significantly positive premium. A cross-country analysis finds that the premium is strongest in countries with the greatest increase in idiosyncratic volatility around the time of their firms' earnings announcements, suggesting that uncertainty over the earnings information to be disclosed is a primary driver of the global announcement premium.     

The Role of Geographic Location in the Acquisition Strategies of High‐Technology Firms: Evidence from Computer Networking Equipment Industry

The present study focuses on the acquisition strategies of Cisco Systems, a comprehensible representative of high‐technology firms. This investigation has depicted a dynamic picture of acquisition behavior when the geographic location of targets varies. Analysis has revealed that high‐technology firms are more likely to acquire co‐located start‐ups. Our findings suggest that high‐technology firms are more likely to acquire targets who have received an earlier equity investment and whose technologies have been standardized. We have also found partial evidence that supports the argument that high‐technology firms pursue cluster‐based acquisitions. Analysis suggests that access to patents does not matter for start‐up companies located in industry clusters while their counterparts outside these clusters need patents to become acquisition targets. © 2013 Wiley Periodicals, Inc.     

Keeping it private: financial reporting by large proprietary companies in Australia

Since 2010, proprietary companies have had a choice of preparing three types of financial reports that vary in scope. We find that between 2010 and 2015, most proprietary companies in our random sample chose the lowest scope option, with very low quality financial reports. Few adopted the new option provided by AASB 1053 Application of Tiers of Australian Accounting Standards. The characteristics of the firms that adopted each type of report are consistent with the regulator's intention. Our findings should provide a better understanding of how accounting standards impact practice, and should assist regulators to reform private company financial reporting.     

Technologists talk: making the links between design, problem-solving and experiences with hard materials

Design and problem-solving is a key learning focus in technology education and remains a distinguishing factor that separates it from other subject areas. This research investigated how two expert designers considered experiences with hard materials contributed to their learning design and problem-solving with these materials. The research project used a qualitative approach and conducted semi-structured interviews with two mechanical engineers. They identified their experiences under three key headings that provided them with much of the essential knowledge and understanding they employ today to design and problem-solve with hard materials. These included experience of seeing outcomes that provided feedback on their designs, experiences that informed about materials and material selection and accessing others’ experiences from communities of practice.     

设计印象深刻的标识

标识设计对设计师来说可以是很棘手的。市面上充斥着大量设计拙劣的标识,这些都是由电脑/软件的普遍使用引起的。获奖的设计公司可以设计一个标识,但是互联网广告吹嘘说标识设计只需花费25美元。两者提供的服务质量是一样的吗?什么样的标识才是好的设计呢?成功的标识,可以投射出公司或产品的形象风格,并且让人一见难忘。作为设计师,可能并不需要常常要设计标识。然而,了解一些设计成功标识的大概原则还是有用的。保持风格简单大部分的成功标识都是很简单的,只有少量的元素、线条、颜色、字体、装饰或花招。虽然也有例外,例如Anheuser-Busch的精细的鹰和A标志,但总的来说,既复杂又成功的标识还是很少。简单的标识便于人们更快速的浏览,易于理解并且记住。哪一个更能让你记住呢,是只有寥寥几字的设计还是复杂如字典的设计?一个简单的设计也通常具有更突出的轮廓,这也有助于快速辨认。而且,一个简单的标识可以更大量的使用,并且花费较小(刺绣、压花、模具裁剪和雕刻等等)。简单的颜色很少成功的标识会使用超过三种以上的颜色。在财富500企业的标识中,你很少会发现颜色复杂的。颜色使用的越多,印刷成本越高——有时甚至是不可能做到——要简单复制的难度也就越大...     

Market responses to qualitative information from a group polarization perspective

This study examines the predictions of group polarization in response to the receipt of qualitative information (i.e., good or bad news) in a laboratory market. Qualitative information induces varying beliefs within the market because such information is interpreted using the relevant knowledge possessed by the recipients. Findings from the group polarization literature suggest that individuals who subsequently hold the most extreme price beliefs will influence the market to a greater extent than individuals holding the most conservative beliefs. Group polarization research also suggests that participation in a market will accentuate risk preferences so that good news produces a cautious shift in prices (i.e., towards lower prices) whereas bad news produces a risky shift (i.e., towards higher prices). The results confirm the predictions of group polarization and further suggest that if extreme reactions to information reflect recency, so too may the market price.     

Interpretable credit model development via artificial neural networks

Poor credit granting decisions are coming back to haunt providers of loan finance. Past poor credit granting decisions are in part due to the Equal Credit Opportunity Act (1975). This act requires lenders to explain the decision to grant or refuse credit. As a result, models such as artificial neural networks, which offer improved ability to identify poor credit risks but which do not offer easy explanations of why a loan applicant has scored badly, remain unused. This paper investigates whether these models can be interpreted so that explanations for credit application rejection can be provided. The results indicate that while the artificial neural networks can be used (with caution) to develop credit scoring models, the limitations imposed by the credit granting process make their use unlikely until interpretation techniques are developed that are more robust and that can interpret multiple hidden-layer artificial neural networks. Copyright © 2008 John Wiley & Sons, Ltd.