THE ECONOMIC SIGNIFICANCE OF CONDITIONING INFORMATION ON PORTFOLIO EFFICIENCY IN THE PRESENCE OF COSTLY SHORT‐SELLING

The economic significance of conditioning information in the presence of costly short‐selling is investigated. Using a compact testing framework, results demonstrate that fixed‐weight stock‐bond portfolios appear inefficient with respect to stock‐bond portfolios with weights determined by extant predictors. However, this result is highly dependent on ex ante knowledge of the predictor set and the ability to short‐sell at low cost. In the absence of such conditions, fixed‐weight stock‐bond portfolios appear efficient with respect to conditioning information.     

Advisory board engagement: Assisting undergraduates with resume development

Resumes of students with limited work experience are by nature underdeveloped and frequently poorly designed. Although many tools and resources are available, students often underutilize them. Faculty at a northeastern university sought to address this problem by engaging members of its college of business advisory board to provide students with real-world advice. Many advisory board members are senior executives who can advise students on how to improve their resumes and make them more professional and powerful. To assess the effectiveness of this intervention, pre- and postsurveys were conducted and analyzed. The authors discuss the results and draw some conclusions. D. Kolb's (1984) model of experiential learning provides a conceptual framework.     

Using robots to reduce personnel radiation exposure at the savannah river plant

The Savannah River Laboratory is using robots to improve safety and reduce personnel radiation exposure in the nuclear process environment. This paper reviews several successful applications at this site. A detailed discussion is presented on an application to transfer materials in a line of shielded radiation work cells.     

Cartel Attributes and Cartel Performance: The Impact of Trade Associations

This paper employs a cartel policy experiment, the National Industrial Recovery Act of 1933, to examine whether industries that have trade associations in place prior to cartelization were better able to attain collusive outcomes than otherwise. Trade associations could potentially help industries better formulate effective cartel rules and could help with monitoring. We find that industries with trade associations were more successful in achieving collusion–proxied by either reductions in industry output or increases in industry prices–than those without. In fact, industries without trade associations were generally unable to successfully collude under the NIRA.     

Trade Liberalisation in Developing Economies: Modest Benefits but Problems with Productivity Growth, Macro Prices, and Income Distribution

Microeconomically, the case for liberalisation is dubious under increasing returns to scale and when firms can invest directly in productivity enhancement. Distributional effects of commercial policy changes can be regressive and large, but the 'rents' they generate can serve as a basis for effective policy intervention contingent on firms' performance. Macroeconomically, the case of liberalisation rests on Say's Law, which is not always enforced. Recent combined current and capital market liberalisations have been associated with strong exchange rates and high interest rates and output and productivity growth have positive mutual feedbacks which liberalisation may well suppress.     

Explaining Individual and Task Differences in Consumer Attitudes toward Ambiguity

Consumers frequently face choices involving ambiguity, or uncertainty about the probabilities of the various possible outcomes. Past research has found that attitudes towards ambiguity vary across tasks. It is the purpose of this paper to suggest that such variation in consumer attitudes can be explained by examining the nature of the source of the uncertainty. It is suggested that consumers will have different attitudes depending upon whether the ambiguity is generated internally (by the consumer) or externally (by some outside source). Exploratory evidence and propositions for future research are presented. The results suggest that marketing strategies and de-biasing methods for ambiguous situations should consider the source of the ambiguity.     

The Cash Recovery Method of Calculating Profitability: An Application to Pharmaceutical Firms

The problems with commonly used accounting profit rates are well documented. In this paper an alternative to accounting profit rates, the cash recovery method is investigated and improved. This improved method is used as a means to estimate profitability in the pharmaceutical industry on a firm level. The profitability estimates give a similar rank order to the accounting profitability rates, but have different magnitudes.     

Load and no-load mutual fund dynamics during the 1987 market crash: A stochastic dominance analysis

Using a large sample of equity mutual fund returns, we compare performance of load and no-load funds during the 1987 crash. Differences in return distributions, particularly in the higher moments when the market was under stress, suggest a greater use of portfolio insurance by no-load fund managers. Using stochastic dominance, we find that load and no-load funds performed equally well before the crash. No-load returns dominated load fund returns during the crash. Load fund returns dominate after the crash. Over the entire month, no-load funds dominate. We attribute this to investor behavior motivated by the lack of a front-end load.     

Innovation alignment and project network dynamics: An integrative model for change

Innovation research has predominantly focused on hierarchically organized firms competing within single markets. Recently, however, researchers have debated over whether the increasing use of project networks within and across industries promotes or stifles innovation. This paper discusses a model based on crossnational diffusion data from three technological innovations in three‐dimensional computer‐aided design (3D CAD) and related implementation data from 82 firms. From the data we induce a set of constructs that form the basis of a two‐stage model for understanding innovation in project networks. In the first stage of the model the alignment of an innovation to the existing allocation of work in a project network is ascertained. In the second stage, the implementation success and diffusion outcomes for innovations misaligned with the allocation of work are governed by the relational stability, accrual of interests, boundary permeability, and existence of an agent for project network change. In developing this integrative, two‐stage model we resolve the contradiction in the academic literature regarding the degree to which project network dynamics can promote or stifle innovation.