Does the expectation or realization of a federal election precipitate Canadian output growth?

Abstract This paper asks whether Canadian data is consistent with the predicted effects of political opportunism, partisanship, and political competition on real output growth since Confederation. Using annual data from 1870 to 2005 we find new support for an opportunistic electoral cycle in Canadian data but only if the actual election date used in most studies is replaced by an estimate of the incumbent governing party's subjectively held likelihood of an election arising. In our case the estimate is generated from a Cox‐proportional hazard model. The paper explores in detail the issues raised by using a generated regressor to approximate a subjectively held expectation versus an observable proxy and argues that these conditions are met in our case. Finally we also find evidence consistent with partisan cycles in the data but much less evidence consistent with the hypothesis that changes in the degree of political competition have affected real output growth.     

A comparison of V-I-E model predictions: A cross-national study in professional accounting firms

Behavioral research in accounting has largely ignored the impact of cross-national differences. This paper deviates from that trend and reports the results of a study comparing the predictive ability of the Valence-Instrumentality-Expectancy (V-I-E) model of motivation in two cultural settings: Australia and the United States of America. Data was collected from a matched sample of 45 staff-level auditors drawn from a large public accounting firm in each of the two respective countries. The findings indicate that few differences exist between the two groups with respect to personal value structures, motivation levels, and perceptions of the work environment. The results are significant both as a systematic cross-national comparison of accounting groups and as an extension of current V-I-E research in accounting.     

Perceived correlates of illegal behavior in organizations

A survey was conducted of the perceived correlates of illegal abuses in the electronics industry. Human resource directors of thirty-one firms responded to a questionnaire which assessed their perceptions of the degree to which illegal behavior was caused by (1) deficiencies in the moral character of employees (2) the clarity of expectations and standards describing illegal behavior and (3) the presence of reinforcements and punishments contingent on these behaviors. All three variables were related to the frequency of abuses in three areas of organizational crime (e.g. administrative, labor, environment) and three areas of personal crime (theft, falsifying records kickbacks) as reported by the directors and/or indicated by archival records. The implications of these findings are discussed in terms of how organizations may reduce illegal activity. Mitchell, Terence R., Edward E. Carlson Professor of Business Administration and Professor of Psychology, University of Washington. Professor Mitchell's interests are decision making, leadership, and social responsibility. He has recently published articles on these topics in Organizational Behavior and Human Decision Processes, The Academy of Management Review, The Journal of the Academy of Management, and the Journal of Applied Psychology. He is co-author (with J. Larson) of People in Organizations, and a joint author of Birnbaum, Scott and Mitchell, Organization Theory: A Structural and Behavioral Analysis. Mitchell is a fellow of the American Psychological Association, and the American Academy of Management. He is also a member of the Society for Organizational Behavior. Daniels, Denise is a graduate student in organizational behavior and human resources management. Denise's interests are motivation, self-efficacy, and groups. She has recently published in the Journal of Applied Psychology and has presented papers at the Academy of Management national meeting. Hopper, Heidi is a graduate student in organizational behavior and human resources management. Heidi's interests are accountability, attributions, and motivation. She has recently published in the Journal of Applied Psychology and has presented papers at the Academy of Management national meeting. Jane George-Falvy is a Ph.D. Candidate in Organizational Behavior. She received a B.A. degree in psychology. Her primary research interests include the areas of learning and motivation. She has recently co-authored articles which have appeared in the Journal of Applied Psychology, the Academy of Management Best Paper Proceedings, and Group and Organization Management. Her dissertation explores the moderating effects of task complexity and learning stage on the relationship between participation in goal setting and task performance. Gerald R. Ferris is Professor of Labor and Industrial Relations, of Business Administration, and of Psychology, and Caterpillar Foundation University Scholar at the University of Illinois at Urbana-Champaign. He also is the Director of the Center for Human Resource Management at the University of Illinois. He received a Ph.D. in Business Administration from the University of Illinois at Urbana-Champaign, and subsequently served on the Department of Management faculty at Texas A&M University. Ferris is the author of numerous articles published in such journals as the Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, Personnel Psychology, Academy of Management Journal, and Academy of Management Review, and he serves as editor of the annual series, Research in Personnel and Human Resources Management.     

A microstructure examination of trading activity following stock splits

In a study of 1,131 stock splits spanning the period 1983–1989 we observe an increase in the number of trades as well as a reduction in the mean trade size following the split. Combined with earlier reported findings of an increase in the number of shareholders postsplit, we conclude that the number of liquidity traders increases after a split. We confirm the previously observed increase in the bid-ask spread following a split, and upon decomposition of the spread find an increase in its adverse selection component in the postsplit period. This is consistent with the finding by Brennan and Hughes (1991) of an increase in the number of analysts following a stock after a split. Further, observing a decrease in market depth following a split we determine that Kyle-type models incorporating diverse private information for informed traders most correctly describe the nature of security trading. Since this decrease in postsplit market depth is not related to the trading volume or the split factor, we reject price correction explanations for stock splits.     

Organising Shopping Services: Trends in Canadian Retailing, 1972–87

This article argues that innovations in organisational form are the driving force behind changes in retailing. After describing the decline in the value added component of retail sales that has occurred in Canada since the early 1970s, it then argues that an analysis of this trend should situate retailing within the more encompassing framework of shopping and recognise the response of organisations to externalities arising in shopping activities. Organisational change economises on the costs of coordination by reassigning activities and changing the incentives that face interacting agents. The argument is illustrated with examples from shopping centres and franchising.     

A NOTE ON THE USE OF REGRESSION ANALYSIS IN ACCOUNTING: COPING WITH MULTICOLLINEARITY*

A major obstacle to the effective utilization of regression analysis in accounting practice and research is the presence of multi-collinearity. This paper analyzes the impact of multicollinearity on ordinary least squares (OLS) estimation, and describes a recently developed estimation procedure, ridge regression analysis (RRA), that offers the possibility of improved coefficient estimation. An auditing example is provided comparing the results of OLS to those of RRA.     

AN ANALYSIS OF THE UNDERWRITER SELECTION PROCESS FOR INITIAL PUBLIC OFFERINGS

This study extends previous research that shows prestigious underwriters avoided underwriting smaller, more speculative initial public offerings (IPOs) during a post-SEC period, 1966–77. Estimating a logit model with a sample of 1,192 IPOs from 1977 to 1988, we evaluate the effect of offering characteristics and prevailing market conditions on the probability a prestigious investment banker will underwrite an IPO. Similar to previous studies, we find that prestigious underwriters avoid smaller, riskier issues. However, we also find stock market volatility, interest rate volatility, and the strength and profitability of the recent market for seasoned new issues to be important determinants of a prestigious underwriter's decision to underwrite an IPO.