Effect of Investor Speculation on Earnings Management

This paper considers how the presence of a speculative investor, who bets on a firm's future earnings report, affects how the firm's management manipulates that report. We examine the influence of the speculator's information on earnings management behavior, quality of reported earnings, and stock price efficiency. We also provide predictions for, and interpretations of, short‐window event studies and long‐window association studies.     

The Probability of Leaving Unemployment: The Influence of Duration,Destination and Demographics*

This paper examines the influences of a number of demographic characteristics and the duration of unemployment on the probability of leaving unemployment. This probability is found to decrease as the duration of unemployment increases, with married females having the highest probability of exit. Various measures of average completed duration suggest that the longest spells of unemployment are incurred by older males. These appear to be longest for males withdrawing from the labour market. The relationship between the duration of unemployment and the probability of exit is important for labour market policy. Some relevant considerations are also explored in the paper.     

Stapled Finance

“Stapled finance” is a loan commitment arranged by a seller in an M&A setting. Whoever wins the bidding contest has the option (not the obligation) to accept this loan commitment. We show that stapled finance increases bidding competition by subsidizing weak bidders, who raise their bids and thereby the price that strong bidders (who are more likely to win) must pay. The lender expects not to break even and must be compensated for offering the loan. This reduces but does not eliminate the seller's benefit. It also implies that stapled finance loans will show poorer performance than other buyout loans.     

The Relationship Between Warranty and Product Reliability

Consumers tend to use warranty information when making judgments about the reliability of brands. This study examines the nature of the relationship between warranty terms and reliability for a sample of household appliances and electronic products. Overall, results show that warranty terms are poor predictors of brand reliability for the sample under study. However, results indicate that the relationship between warranty terms and brand reliability tends to improve with product age, market penetration, and the amount of variation in the reliability of brands.     

The Beauty Myth and Female Consumers: The Controversial Role of Advertising

Recently, a small number of consumer researchers have voiced concern regarding the question of how and to what degree advertising involving thin/attractive endorsers is linked with chronic dieting, body dissatisfaction, and eating disorders in American females. To explore the broader context of this important and controversial issue, this paper draws upon a variety of disciplines and suggests directions for future research. First is a discussion of problems associated with chronic dieting and the diet industry. Next is an exploration of the prevalence, concomitants, and origins of body dissatisfaction in American females. The paper discusses existing advertising research that gives rise to several important propositions regarding the nature of the link between advertising and body dissatisfaction. The conculsion consists of recommendations for research and a brief discussion of public policy implications.     

Consumer acceptability of foods using low salt levels and salt substitutes

The purpose of this research was to investigate the effect first of sodium reduction and second its substitution (using LoSalt) on the acceptability of eating quality of chilli con carne and ratatouille. Hedonic assessment tests were carried out to determine the lowest levels of sodium necessary to produce acceptable dishes. Triangle tests were carried out to investigate whether differences could be observed when table salt was replaced by a salt substitute. Total sodium content of the dishes was determined by flame photometry. In the case of both dishes the sodium concentration of the most preferred samples was found to be similar. However, the chilli con carne was found to be acceptable at all additions of table salt. It was also found to be acceptable without the addition of any salt. Total substitution of added table salt with LoSalt was also successful in both dishes with panel members being unable to differentiate between salt and LoSalt samples. Thus it would appear that successful dishes can be produced by reducing added table salt levels or by substituting LoSalt, without affecting overall acceptability of the products.