Disagreement and the Cost of Capital

We assess how forms of disagreement among investors affect a firm's cost of capital. Firms experience a lower cost of capital if investors perceive that other investors are ignoring relevant disclosures (perceived errors of omission), but a higher cost of capital if investors perceive that others are responding to irrelevant disclosures (perceived errors of commission). The impact of these two sources of disagreement on the cost of capital is determined by the distribution of opinion and the nature of disclosure. For example, even though aggregated disclosures reveal less to investors, aggregated disclosures may decrease the cost of capital by eliminating disagreement associated with perceived errors of commission. These and additional results arise because the cost of capital is driven not only by investors’ uncertainty about the firm's future earnings performance, but also by investors’ uncertainty about the evolution of beliefs, which partly determines the path of prices.     

Storage changes in biscuits

The purpose of this research was to investigate the changes occurring in biscuits under domestic storage conditions. The experimental work involved the storage of manufactured biscuits under closed, open/light and open/dark conditions for appropriate periods of time. Moisture content, texture, colour and peroxide value were determined throughout the storage time. The results indicate that the moisture content of the samples increased under all storage conditions, with a softening of texture. Peroxide values increase with rapid acceleration towards the end of the storage period. Very little change was observed in the colour of the biscuits.     

Saving Practices of New Canadians from Vietnam and Laos

This study is the first to focus on saving patterns of a growing group of newcomers to Canada—people of Asian origin who arrived as refugees. Data are from personal interviews with 649 Boat People (Chinese Vietnamese, ethnic Vietnamese, and Laotians) who settled in Canada between 1979–81. Saving money was reported by 80 percent, with the usual pattern being to save money left after paying expenses. Main reasons for saving are emergencies and education of children. Nontraditional methods (bank accounts and Registered Retirement Savings Plans) indicate that the newcomers have access to and are using formal financial services. Several variables (i.e., age and marital status) that are usually associated with savings were not significant; but, as in other studies, higher education, satisfaction with income, and employment were associated with having savings. Ethnic differences suggest differing rates of acculturation for this group.     

Lemon Laws: Intent,Experience, and a Pro-Consumer Model

Under deregulation, public policies regarding consumer rights and product warranties have shifted. This paper reviews the rationale for lemon laws, state legislation intended to help consumers resolve new car performance, and repair problems. It then compares consumers’ redress under these laws to redress under other remedies. Experience with Vermont's legislation, one of the most aggressive lemon laws, is reviewed and analyzed in detail as the basis for formulating public policy recommendations in this area.     

The Competitiveness of UK Manufacturing: Performance and Prospects

The competitiveness of UK manufacturing and its future prospects are examined in terms of productivity, the performance of high technology industries and the relationship between science and technology. Die main findings are that concentrating on productivity performance can be misleading and attention should also be paid to the structural aspects of competitiveness, especially the relationship between the science base arid industrial technology. On this basis we conclude that if the UK is to realise fully the competitive potential of technological change, differences in these structural aspects of competitiveness need to be addressed.