On the Review Process and Journal Development

abstract    This paper describes the editorial and review process currently operating at JMS and offers the Editors' perspective on the journal's growth over the past three years. We first outline what we think is the essence of a JMS article. Then, we describe the review process from the editor's initial decision, to the reviewers' comments, to the editor's final editorial decisions, and including the process of accepting a paper. We suggest four main reasons for rejecting a paper: lack of contribution, failure to develop a theoretical contribution, fatal flaws in methods and deficiencies in analysis. With respect to the journal's progress, we show that JMS has significantly increased its position in the ISI rankings to 19th and its impact factor to 1.180. In addition, the journal experienced a 222 per cent increase in submissions from 2003 to 2005.     

Stability of mutual fund systematic risk statistics

Empirical data for 85 mutual funds are used to test the intertemporal stability of their systematic risk statistics. Reasons why the portfolios may be nonstationary are suggested. A random coefficient model developed by Theil [37] is employed to test for the stability of each fund's beta. The data suggest that some funds do exhibit a beta that is best described as being a random coefficient. However, the percentage of funds exhibiting this characteristic was not statistically different from the percentage of randomly created portfolios that exhibited a random beta coefficient. The findings of this study support the statistical models employed in two other recent studies [18,21] to test for the stability of beta. Yet, for mutual funds that do exhibit a random beta coefficient, the partitioning of the total risk of the portfolio return into systematic and unsystematic risk is no longer valid for explaining the total risk.     

Combining Forecasts from Nested Models*

Motivated by the common finding that linear autoregressive models often forecast better than models that incorporate additional information, this paper presents analytical, Monte Carlo and empirical evidence on the effectiveness of combining forecasts from nested models. In our analytics, the unrestricted model is true, but a subset of the coefficients is treated as being local‐to‐zero. This approach captures the practical reality that the predictive content of variables of interest is often low. We derive mean square error‐minimizing weights for combining the restricted and unrestricted forecasts. Monte Carlo and empirical analyses verify the practical effectiveness of our combination approach.     

Foreign Currency Derivatives versus Foreign Currency Debt and the Hedging Premium

This paper compares the effect on firm value of different foreign currency (FC) financial hedging strategies identified by type of exposure (short‐ or long‐term) and type of instrument (forwards, options, swaps and foreign currency debt). We find that hedging instruments depend on the type of exposure. Short‐term instruments such as FC forwards and/or options are used to hedge short‐term exposure generated from export activity while FC debt and FC swaps into foreign currency (but not into domestic currency) are used to hedge long‐term exposure arising from assets located in foreign locations. Our results relating to the value effects of foreign currency hedging indicate that foreign currency derivatives use increases firm value but there is no hedging premium associated with foreign currency debt hedging, except when combined with foreign currency derivatives. Taken individually, FC swaps generate more value than short‐term derivatives.     

The Sequential Prisoner's Dilemma: Evidence on Reciprocation

We investigate how fairness concerns influence individual behaviour in social dilemmas. Using a Sequential Prisoner's Dilemma experiment we analyse the extent to which co-operation is conditional on first-mover co-operation, repetition, economic incentives, subject pool (United Kingdom vs. United States) and gender. We find the most important variable influencing co-operation is the first-mover's choice, supporting the argument that co-operative behaviour in social dilemmas reflects reciprocation rather than unconditional altruism. However, we also find that co-operation decreases with repetition, and reciprocation falls as its material cost rises.     

Understanding strategic alignment for destination marketing and the 2004 Athens Olympic Games: Implications from extracted tacit knowledge

Major international hallmark events, especially the Olympic Games, represent a significant opportunity for marketing tourism to the host country. Due to the scale and importance of the event, the coordination between the Olympic organizing committee and the destination marketing organization of the host country becomes a knowledge-intensive and exceptionally complicated task. Analyzing on-site interview data collected from top executives of the two major organizations involved in the 2004 Summer Olympic Games (ATHOC and GNTO), this research achieved two objectives: (1) extracted and organized the tacit knowledge from both organizations to discover major issues concerning the Athens 2004 Olympic Games, and (2) identified the strategic alignment issues between the domains of Olympics planning and destination marketing and proposed a conceptual framework for the future Olympic host countries.     

Conflicts of Interest Arising from the Prudent Investor Rule: Ethical Implications for Over-the-Counter Derivative Securities

The Prudent Investor Rule creates a potential ethical dilemma for investment advisors selling over-the-counter financial products issued by their firms. The "opportunity" to defraud investors using complex, over-the-counter derivative securities designed for client-specific risk management is much higher than for exchange traded securities. This paper emphasizes the ethical responsibility held by trustees and their organizations to eliminate potential conflict of interests through internal control and monitoring. Independent evaluations of the performance of investment advisors and independent appraisals of complex over-the-counter securities are important in reducing the risks of conflicts of interest. Recent lessons learned from the corporate ethics crisis and requirements of the 2002 Sarbanes Oxley Act would suggest that conflict of interest must be eliminated with third party validation of derivative pricing. By performing due diligence and validation, the trustee is able to satisfy the requirements under the Prudent Investor Rule.     

Personal religiousness and ethical judgements: An empirical analysis

It has been acknowledged on numerous occasions that personal religiousness is a potential source of ethical norms, and consequently, an influence in ethical evaluations. An extensive literature review provides little in the way of empirical investigation of this recognized affect. This investigation conceptualizes religiousness as a motivation for ethical action, and discovers significant differences in ethical judgements among respondents categorized by personal religious motivation. Suggestions as to the source of these differences, and the implications which they offer to managers are discussed and supported from the literature.James W. Clark is the Director of the Center for Retailing and assistant professor of marketing at James Madison University. His work has been published in The Journal of Advertising, and the proceedings of The Cutting Edge III and IV, the Southern Marketing Association, The Academy of Marketing Science, and The Decision Sciences Institute. Lyndon E. Dawson, Jr. is professor of marketing at Louisiana Tech University. His work has been published in the Journal of the Academy of Marketing Science, the Journal of Retailing, Psychology and Marketing, and Psychological Reports among others.     

Effects of Initial Payment Policy on the Welfare of Saskatchewan Wheat and Barley Producers

This paper calculates the historical ex ante producer surplus of initial payments acting as price floors to Saskatchewan wheat and barley producers. To do this, a Nerlovian-type partial adjustment model and rational expectations are used. The Nerlovian model is somewhat unique in that it is argued that the Nerlovian partial adjustment model can be expanded to a multi-product partial adjustment model, and this is strongly supported by the data. The calculation of the ex ante producer surplus to Saskatchewan producers indicates that initial payment policy is causing only minor market distortions.
Dans le présent document, on établit la partie excédentaire des paiements par anticipation initiaux à la production qui servent de prix plancher aux producteurs de blé et d'orge de la Saskatchewan. Pour cela, on s'est basé sur un modéle à ajustement partiel de type Nerlovian et les attentes rationnelles. Le modèle Nerlovian est particulier en ce sens qu'on suppose que le modèle à ajustement partiel peut s'étendre à de nombreux produits, ce que confirment nettement les données. Le calcul de la part excédentaire du paiement original versé aux producteurs de la Saskatchewan révèle que la politique du paiement initial n'entraîne que de très légères perturbations sur le marché.