Public regulatory reform and management earnings forecasts in a low private litigation environment

We examine the impact of continuous disclosure regulatory reform on the likelihood, frequency and qualitative characteristics of management earnings forecasts issued in New Zealand’s low private litigation environment. Using a sample of 720 earnings forecasts issued by 94 firms listed on the New Zealand Exchange before and after the reform (1999–2005), we provide strong evidence of significant changes in forecasting behaviour in the post‐reform period. Specifically, firms were more likely to issue earnings forecasts to pre‐empt earnings announcements and, in contrast to findings in other legal settings, those earnings forecasts exhibited higher frequency and improved qualitative characteristics (better precision and accuracy). An important implication of our findings is that public regulatory reforms may have a greater benefit in a low private litigation environment and thus add to the global debate about the effectiveness of alternative public regulatory reforms of corporate requirements.     

Willingness to pay for other species' well-being

Benefit-cost analysis of environmental policies typically focuses on benefits to human health and well-being. For other species, economists have attempted to measure human WTP for changes in the numbers of individuals for different types of wildlife, and to preserve biodiversity. When it comes to humans' WTP for improvements in the quality-of-life for other species, however, the evidence is limited. Morbidity and quality-of-life considerations may be particularly important to the task of valuing non-fatal harm to wildlife in the wake of an environmental disaster. We argue that the other species morbidity-reduction component of WTP should be calculated net of any “outrage” component associated with the cause of the harm. This net WTP is likely to be correlated with the premium that people are willing to pay for chicken products from birds for which the quality-of-life has been enhanced by improved animal welfare measures. This paper uses a conjoint choice stated preference survey to reveal the nature of systematic heterogeneity in preferences for “humanely raised” versus “conventionally raised” chicken. We also use latent class analysis to distinguish between two classes of people—those who are willing to pay a premium for humanely raised chicken, and those who are not.     

The Canada-U.S. Free Trade Agreement: Implications for Red Meat and Grain

Canada and the U.S. acknowledged the problems arising from trade barriers and sought to reduce them through negotiation of a bilateral Free Trade Agreement. Implementation of the FTA may cause significant economic changes within the red meat/livestock and grain sectors for both countries. Although both sectors are of major importance, the actual magnitudes and distribution of gains and losses have not been quantified. This paper focuses on consumer and producer welfare issues and the effects of the FTA on the red meat/livestock and grain sectors for selected regions of the U.S. and Canada. Data were carefully researched, expert opinion was solicited from both countries, and a mathematical programming model was used to complete the analysis. The 1989 provisions of the FTA will have only marginal effects on the respective sectors or on welfare as measured in the model. The analysis demonstrates that if additional provisions of the FTA are phased in over time (partial FTA policy) instead of being adopted all at once (comprehensive FTA policy), more severe dislocations occur. For either scenario, and as measured in the model, consumers benefit at the expense of producers. Le Canada et les Etats-Unis ont reconnu les problèmes provenant des barrières commer-ciales internationales, et ont churché à les réduire a travers la négociation d'un accord bilatéral de libre échange. La realisation de cet accord « FTA » pourrait entrainer des change-ments économiques importants, dans les secteurs viande de boeuf et céréales, pour les deux pays. Bien que les deux secteurs soient d'une importance majeure, l' étendue des gains et des pertes n'avait pas encore été évaluée. Ce papier se préoccupe de la répartition des bénéfices aux consommateurs et aux producteurs, ainsi que des effets du FTA sur les secteurs viande de boeuf et céréales de certains régions des Etats-Unis et du Canada. Les données utilisées dans ce papier ont été soumises à une recherche soignée, les opinions d'experts des deux pays ont été solicitées, et un modèle de programmation mathématique a été employé afin de compléter cette analyse. Les provisions 1989 du FTA n'auront que des effets marginaux sur les secteurs respectifs et les bénéfices, tels qu'ils sont mesurés dans le modele. L'analyse demontre que l'adoption d'une façon graduelle de provisions supplémentaires du FTA « partial FTA policy » aura des conséquences plus sévères qu'une adoption totale de toutes ces provisions « comprehensive FTA policy ». Selon Tun ou l'autre des scénarios, tels que mesuré dans le modèle, les consommateurs profiteraient au dépens des producteurs.     

Preferences over the timing of forest resource use

The objective of this study is to evaluate preferences for time paths of outputs arising from alternative forest management practices. A discrete choice framework using logit and mixed logit models is used to evaluate stated choices by Public Advisory Committee members over attributes regarding inter-temporal forest management options. Results of the study indicate a relatively strong preference for physical sustainability, or even flow choices. However, respondents appear to be more accepting of uneven flows in recreation services than they are of uneven flows of timber harvests. Results also provide yet another illustration of a difference in implied rates of discount over the goods involved (i. e. timber versus recreation). The paper illustrates a mechanism for use in public involvement exercises that may identify inter-temporal preferences over forest management plans and strategies.     

Marketing and the law

Marketing decisions are particularly vulnerable to legal rulings made in both the courts and the legislatures. The effective management of those legal implications challenges the modern marketing professional. Grasping marketing’s overall legal environment, including its governing case law, regulatory statutes and future trends, is essential. This review will provide analysis of recent court cases and legislation with particular emphasis on creatively assisting the marketer’s management of the legal factor.     

The Rise and Demise of Abnormal Items

Before 2001, Australian companies reported abnormal items on the face of the income statement or by way of note. In response to perceived abuses in classifying items as abnormal, AASB 1018 was reissued in October 1999 with the reference to abnormal items removed. We analyse the implications of the changes to accounting standard requirements relating to abnormal items, and examine whether there is empirical evidence of opportunistic classification of operating profit items as abnormal. Our results suggest that some companies may have opportunistically classified large expense items as 'abnormal' to boost their reported 'normal' earnings number.     

固态照明市场前途清淡

在固态照明市场享有盛名的LED的重要优势之一在于使用寿命很长--在某些应用领域,它的寿命远远长于白炽灯或荧光灯的寿命.然而,在高科技领域,任何事物的衰落速度都不会比利润率的衰落速度更快.     

Consumer motivations and concerns in online auctions: an exploratory study

This investigates the reasons behind the dramatic growth of Internet auction companies such as eBay, exploring into why so many consumers have been motivated to turn to online auctions to purchase and sell goods. It is found that the ability to purchase items at lower prices than from retail stores is the primary motivation, along with having access to previously unobtainable items. Concerns mainly relate to potential fraudulent transactions, although the negative feedback system is found to be vital in the reduction of fears over fraud. Interaction with other auction users is found to be important for practical reasons such as information seeking, rather than for enjoyment. The main conclusion is that the benefits of using Internet auctions far outweigh the risks involved.     

On Designing Constructed Markets in Valuation Surveys

In this paper I consider some of the methodological issues involvedin designing valid contingent valuation (CV) scenarios. I identifythe several parts of these scenarios and the design issues particularto those parts. Although my principal example is the scenario I andothers used in the Exxon Valdez oil spill study of the naturalresource damages to Prince William Sound, Alaska, I generalize toother types of CV scenarios.     

Alternative Policy Instruments for Agriculture Support: Consequences for Trade, Farm Income and Competitiveness

The views expressed are solely those of the authors and should not be attributed to the Organisation for Economic Co-operation and Development or Agriculture and Agri-Food Canada.