Equity valuation: A survey of professional practice

This paper reports the results of a scientific survey of the equity valuation practices of CFA Institute members with equity analysis job responsibilities. Using an instrument designed to minimize biases in prior valuation surveys and sampling a larger group than in previous studies (13,500 investment professionals, resulting in 1,980 valid completed questionnaires), this paper documents professional practices in the selection of equity valuation approaches, including specific model variations and key input preferences. Important differences in practice were observed across geographies and employer firm types.     

Tax-savvy executives

Review of Accounting Studies - We investigate why firms include individuals with significant professional tax experience on their senior management team and the consequences associated with the...     

A GPS data-based analysis of built environment influences on bicyclist route preferences

This study examines the effects of built environment features, including factors of land use and road network, on bicyclists' route preferences using the data from the city of Seattle. The bicycle routes are identified using a GPS dataset collected from a smartphone application named “CycleTracks.” The route choice set is generated using the labeling route approach, and the cost functions of route alternatives are based on principal component analyses. Then, two mixed logit models, focusing on random parameters and alternative-specific coefficients, respectively, are estimated to examine bicyclists' route choice. The major findings of this study are as follows: (1) the bicycle route choice involves the joint consideration of convenience, safety, and leisure; (2) most bicyclists prefer to cycle on shorter, flat, and well-planned bicycle facilities with slow road traffic; (3) some bicyclists prefer routes surrounded by mixed land use; (4) some bicyclists favor routes which are planted with street trees or installed with street lights; and (5) some bicyclists prefer routes along with city features. This analysis provides valuable insights into how well-planned land use and road network can facilitate efficient, safe, and enjoyable bicycling.     

Exploring a Measurement of Analytics Capabilities

Changes in the volume and velocity of data have led many organizations to consider assessing and improving analytics capabilities. The purpose of this research is to describe a methodology developed to assess organizations’ analytics capabilities and explore the empirical value of data collected using this methodology. The measurement for analytics capabilities was developed by IBM during 2009–11 marketing efforts. To assess the data’s empirical value, we investigate whether measurements of analytics capabilities are internally consistent, associated with decisions to invest in analytics software and hardware, and able to explain firm profitability. In analyzing consistency, we find a natural sequence in the development of analytics capabilities. Exploring decisions to invest in analytics, we discover that firms with higher levels of capabilities are more likely to invest, as are firms that are larger and located in more profitable industries. However, we find no relationship between analytics capabilities and firm profitability.     

Patent Breadth, Patent Life, and the Pace of Technological Progress

In active investment climates where firms sequentially improve each other's products, a patent can terminate either because it expires or because a non-infringing innovation displaces its product in the market. We define the length of time until one of these happens as the effective patent life, and show how it depends on patent breadth. We distinguish lagging breadth, which protects against imitation, from leading breadth, which protects against new improved products. We compare two types of patent policy with leading breadth: (1) patents are finite but very broad, so that the effective life of a patent coincides with its statutory life, and (2) patents are long but narrow, so that the effective life of a patent ends when a better product replaces it. The former policy improves the diffusion of new products, but the latter has lower R&D costs.     

Detecting jumps from Lévy jump diffusion processes

Recent asset-pricing models incorporate jump risk through Lévy processes in addition to diffusive risk. This paper studies how to detect stochastic arrivals of small and big Lévy jumps with new nonparametric tests. The tests allow for robust analysis of their separate characteristics and facilitate better estimation of return dynamics. Empirical evidence of both small and big jumps based on these tests suggests that models for individual equities and overall market indices require incorporating Lévy-type jumps. The evidence of small jumps also helps explain why jumps in the market index are uncorrelated with jumps in its component equities.     

Factors predicting attitude toward disclosing personal data online

To test a theoretical model, this study explores the effect of anxiety, trust, personality, and perceived benefits on the disclosure of personal information online. An online survey conducted among participants in the United States (n = 248, age range: 20–82 years) examined attitudes toward disclosing personal data online. Specifically, the study researches the impact of anxiety disclosing personal data, trust (both in the Internet and in institutions), the Big Five personality traits, and four sets of perceived shopping benefits (opportunity, bargain, purchase, and expected privacy benefits) in e-commerce disclosure and their role as antecedents for adoption and use of e-commerce. The study aligns with existing trust literature and corroborates other findings on how perceived purchase benefits impact individuals’ attitudes toward disclosing personal data online. The data suggest that both trust in the Internet and trust in institutions positively influence attitude toward disclosing personal data online. Perceived purchase benefits were also significant positive predictors for attitude toward disclosing personal data online. Furthermore, personality dimensions can affect attitude toward disclosing: the more neurotic a person is, the more negative their attitude is about disclosing personal data online. The study underscores that consumers have a responsibility to educate themselves about online disclosure and marketing practices, and about how to protect their online privacy. Most importantly, fostering trust, reducing anxiety, and promoting benefits are essential to the future of e-commerce. Implications for theory, consumers, marketing practice, and public policy are also discussed.     

The nature and extent of service user involvement in critical care research and quality improvement: A scoping review of the literature

The importance of involving patients and the public in health care research is globally recognized, but how best to do this in critical care is unclear. The aim of this first published review was to explore the extent and nature of evidence on service user involvement in critical care research and quality improvement. Using the scoping review framework described by Arksey and O'Malley ( 2005 ), a team of service user and critical care researchers searched eleven online databases, reviewed relevant web sites, conducted forward and backward citation searching and contacted subject experts. Extracted data were subjected to a narrative synthesis based on the objectives of the review. Findings from a broad range of evidence support that involvement is becoming more commonplace and that experiences are generally positive. Data extracted from 34 publications identify that involvement is most commonly reported at the level of consultation or participation in project teams, however, the extent to which involvement impacts on projects output remains unclear. Key barriers and facilitators relate to the challenge of recruiting a diverse group of service users, dealing with power hierarchies, being adaptable and effective consideration of the resource requirements. More research is required to identify the most effective methods to support the opportunity for involvement and more thorough reporting of service user involvement practices is strongly recommended.