Teams,Teamwork and Absence*

We argue that firms with interdependent worker productivity, team production, have a higher cost of absence and, as a consequence, spend additional resources on monitoring absence. As a result, firms with team production should have lower absence rates. We estimate the determinants of absence for blue‐collar workers using a sample of German manufacturing establishments. Workplace teams are used as a proxy for team production. The estimates reveal that firms with teams have lower absence rates, as do smaller establishments. The size effect, however, is unique to establishments with teams, which fits prior theoretical work that has not been previously tested.     

Testing for Unit Roots with Breaks: Evidence on the Great Crash and the Unit Root Hypothesis Reconsidered

Nelson and Plosser (1982), in a classic paper, failed to find strong evidence against the null hypothesis of a generating process with a unit autoregressive root for thirteen US macroeconomic time series. Perron (1989) claimed that such evidence was available for a majority of these series if the alternative hypothesis was of trend stationarity with a break in 1929. Zivot and Andrews (1992) treated the break date as endogenous, then finding strong evidence agcainst the null for a minority of these series. Our own analysis extends theirs by permitting a break under the null as well as the alternative hypothesis, and allowing for the sequential nature of the testing. Our empirical findings complete the circle. We find no strong evidence against the unit root hypothesis for any of the thirteen Nelson–Plosser series.     

STRATEGIC ORIENTATION,CAPABILITIES, AND PERFORMANCE IN MANUFACTURER — 3PL RELATIONSHIPS

This study examines how two dimensions of strategic orientation (customer and competitor orientation) influence logistics and market performance. Two capabilities, operational flexibility and collaboration, are studied. Data were collected from manufacturers working with third party logistics providers. The findings suggest that customer and competitor orientations have different influences upon performance when leveraged through the capabilities. Competitor orientation, while having a detrimental direct effect on logistics performance, appears to be the better strategic approach, when supported with operational flexibility since it results in enhanced logistics (efficiency) and market (effectiveness) performance. Customer orientation, on the other hand, greatly improves logistics performance, i.e., internal efficiency.     

Building Brands through Brand Alliances: Does a Second Ally Help?

Several papers have been published demonstrating the positive effects a single, reputable ally has on evaluations of a focal brand. Interestingly, little research has been published examining the effects of multiple brand allies. We examine the effect of an alliance with two, one, or zero well-known brand allies on evaluations of a previously unknown focal brand. The presence of a single brand ally significantly increased perceived quality and hedonic and utilitarian attitudes. While multiple alliances improved focal brand evaluations relative to the no ally condition, the second ally did not increase evaluations relative to the single ally condition.     

EARNINGS EXPECTATIONS, FIRM SIZE, AND THE INFORMATIVENESS OF STOCK PRICES

The notion that prices impound a wide array of information, including market expectations, has led to earnings forecast models conditioned on prices. Yet, presumably, analysts' forecasts capture both public information and certain private information not previously impounded in prices. Accordingly, price-based models are seemingly an inefficient, and less effective, source of expecta-tions. This article investigates this hypothesis using financial analysts', price-based, and naive forecasts. Results indicate that analysts' forecasts (1) are at least as accurate as price-based and naive models, and (2) yield better expectations for market tests relating returns and earnings. These inferences are robust across different information environments. The evidence suggests that analysts either possess private information or are more effective information processors, or both.