The other January effect: International, style, and subperiod evidence

We report international, style, and subperiod evidence for the other January effect (OJE) documented in Cooper et al. [2006. The other January effect. Journal of Financial Economics 82, 315–341]. When examining the OJE in 22 countries starting as early as 1801, we find that the spread between 11-month returns following positive and negative Januarys does tend to be positive. However, the spreads are rarely statistically significant and the returns of other calendar months exhibit similar subsequent 11-month return spreads. Further, the international OJE spreads and the OJE spreads in disaggregate U.S.-style portfolios are more related to the U.S. market-level January return, rather than the respective country-specific or portfolio-specific January return. Finally, the OJE is weaker over the 1975–2006 post-discovery period than over the 1940–1974 pre-discovery period. Our evidence indicates that the OJE is primarily a U.S. market-level-based phenomenon that has diminished over time, which suggests a ‘temporary anomaly’ interpretation.     

Designing an Enterprise Risk Management Curriculum for Business Studies: Insights From a Pilot Program

The latest financial crises have highlighted the centrality of managing risks across organizations. Internationally, Basel II/III, The Volcker Rule of the Dodd–Frank Act, and Vickers’ Ring‐Fence all propose stronger management of risk across banks and greater oversight of executive compensation to mitigate generic risk. Given this situation, it might be assumed that academia would also view risk as a central concern for its business programs. It seems not. There is a little evidence that academic curricula are being specifically designed to address this issue. This article examines an Enterprise Risk Management curriculum delivered to graduate student cohorts over 3 consecutive years. Four criteria were used to develop the new curriculum. First, it should take a holistic view of risk; second, the theories related to risk needed to be transformed from individual to group level; third, the dynamics of risk due to market factors needed to be understood; and finally, the way firms respond to crises needed to be observed and embedded in the curriculum.     

Decomposing the effect of supplier development on relationship benefits: The role of relational capital

Buyers invest considerably in developing their suppliers, yet the performance effects of such investments are not universal. Drawing on social capital theory, this research investigates whether the relationship between supplier development and relationship benefits may be facilitated by the generation of relational capital. The authors examine mediating and moderating roles of relational capital in the relationship between two aspects of supplier development (capability development, supplier governance) and two dimensions of relationship benefits (supplier benefits, buyer benefits), using survey data collected from 185 suppliers of a large manufacturing firm. Investment in supplier development does not automatically result in benefits for the supplier or reciprocated benefits for the buyer. Rather, relational capital “bridges” supplier development and relationship benefits. Without relational capital, benefits from capability development do not accrue, and the impact of a supplier governance regime can be even detrimental. In conditions of high relational capital, capability development results in lower perceived buyer benefits. The results can help managers ensure that the benefits from their supplier development efforts fully materialize.     

Brand Valuation: A Model and Empirical Study of Organisational Implications

This paper presents a model concerned with the organisational and behavioural implications associated with accounting for brand values. A series of propositional statements concerning the internal implications of brand value accounting are formulated and the relative strength of each proposition is analysed using data collected via a mailed survey. In interviews conducted with senior management in strongly-branded companies it was found that beneficial managerial implications are expected to result from a brand valuation. Interviewees saw these implications as primarily strategically, rather than operationally, orientated. This view was provided with some support by the survey data. Evidence is also provided that marketing directors perceive greater benefits arising from brand valuation than do finance directors.     

A Comparison of Ex Post and Ex Ante Measures of Producers' Surplus in Estimating the Returns to Canadian Federal Sheep Research

The returns to Canadian federal sheep research expenditures between 1968 and 1984 are estimated using the economic surplus approach. Ex post and ex ante measures of the change in producers' surplus are compared. Regression analysis is used to estimate the lag structure of the effects of research on the national supply function, facilitating the estimation of returns on average and at the margin. The effect of the excess burden of tax collection on returns to sheep research is investigated. The internal rate of return to sheep research has been about 25% at the margin exclusive of the effects of the excess burden. This rate of return falls to 20% when the costs of an excess burden of 20 cents on the dollar is assumed. Nous calculons le rendement estimatif des défenses consacrées à la recherche sur le mouton par le gouvernement du Canada entre 1968 et 1984 à ?aide ?une méthode fondée sur les surplus économiques. Nous comparons les mesures objectives (ex post) et subjectives (ex ante) des changements survenus au chapitre des excédents à la production. ?analyse de régression nous permet ?estimer la structure de retard des effets de la recherche sur la fonction de ?approvisionnement national, ce qui facilite ?évaluation du rendement moyen et du rendement à la marge. Nous examinons également les effets du fardeau excessif de ?impôt sur le rendement de la recherche sur le mouton. Le taux interne de rendement de la recherche portant sur le mouton a été évalué à environ 25% à la marge, en excluant les effets du fardeau excessif. Ce taux de rendement est abaissé à 20 % lorsqu'on tient compte ?un coût présumé du fardeau excessif de 20 cents par dollar.     

A comparison of models for pricing interest rate derivative securities

This paper looks at the different approaches and different models that have been developed to value interest rate-dependent securities, providing a survey of pricing procedures which are based on mathematical models of the term structure. It can be viewed as a reference for the different interest rate models with explicit representations, where they exist, for prices of derivative instruments and an an analysis of their respective advantages and disadvantages.     

Employers’ Perceptions of Information Technology Competency Requirements for Management Accounting Graduates

Abstract

Management accountants work in a computerized workplace with information technology (IT) for producing financial ledgers and for reporting. Thus, the role of the management accountant has shifted from capturing and recording transactions to analyzing business issues. The research question is: what IT knowledge and skills do employers require of management accounting graduates? An exploratory field research approach was used; chief financial officers and their subordinates at some of New Zealand's largest firms were consulted. These respondents were consistent in their requirements. They emphasized intermediate proficiency with some Microsoft tools (Excel, Word, PowerPoint, and Outlook) and sufficient familiarity with the structure and navigation of an enterprise resource planning system to process transactions such as accounts receivable. Of those requirements, Excel for analysis was the most important. Our contributions update and augment the literature by clarifying the perceptions of employers regarding the IT competencies required of management accounting graduates.