Conditional beta pricing models: A nonparametric approach

We propose a two-stage procedure to estimate conditional beta pricing models that allows for flexibility in the dynamics of asset betas and market prices of risk (MPR). First, conditional betas are estimated nonparametrically for each asset and period using the time-series of previous data. Then, time-varying MPR are estimated from the cross-section of returns and betas. We prove the consistency and asymptotic normality of the estimators. We also perform Monte Carlo simulations for the conditional version of the three-factor model of Fama and French (1993) and show that nonparametrically estimated betas outperform rolling betas under different specifications of beta dynamics. Using return data on the 25 size and book-to-market sorted portfolios, we find that the nonparametric procedure produces a better fit of the three-factor model to the data, less biased estimates of MPR and lower pricing errors than the Fama–MacBeth procedure with betas estimated under several alternative parametric specifications.     

Harmonization of financial reporting of small and medium-sized enterprises in the Czech Republic

A current problem of the present-day accounting and financial reporting consists in aligning the accounting in small and medium enterprises. In July 2009 the International Financial Reporting Standard for small and medium-sized enterprises was issued, which extended the aligning possibilities also to small and medium enterprises considerably. If the standard is adopted by the national legislation, problems connected with the standard implementation in the national legislation will have to be solved as well as practical issues connected with making financial statements. At present the yields and the problems which can arise in connection with the standard application have to be focused on. A contribution of the standard application will be a better informative ability of financial statements on the international level. At small and medium enterprises this can contribute to better comanunication with banks, with investors, rating application are： parallel reporting according to national agencies etc. The problems connected with the standard regulations, differences between the national legislation and the standard, wide practice at keeping accounts and making financial statements and limited approach of small and medium enterprises to obtaining information and to training of their employees. Another problem can be a tight link between the trading income and the tax base, when small companies prefer rather the tax point of view.     

Does it pay off for museums to foster creativity? The complementary effect of innovative visitor experiences

This paper aims to explore the link between creativity orientation, investment in visitors’ experience and operating and funding performance in tourist attractions, taking museums as a case study. The empirical work is based on an analysis of the information provided by a sample of Spanish, French, German, British and American museums. The findings highlight the positive impact of creativity orientation on museums’ operating performance, but show a curvilinear effect on funding performance. The use of new technologies and adaptation to the audience proves positive when seeking to attract visitors.     

Skill-biased technological change and homeownership

In the United States, the residential housing market went through important changes over the period from the 1970s to the mid-1990s. Although the aggregate homeownership rate was relatively stable during that period, the distribution of homeownership rates by age changed in remarkable ways. While younger households saw substantial declines in homeownership rates, the opposite happened for older households. In this paper, we argue that the skill-biased technological change (SBTC) that began during the 1970s has been an important factor behind the observed change in the distribution of homeownership rates by age. We build a life cycle model in which skills are accumulated on-the-job through experience: learning by doing. Early in life, households have lower levels of skills and therefore lower earnings. SBTC increases the returns to skill, widening the wage gap between young and old ages. As a consequence, it takes more time for young households to become homeowners given frictions in financial markets (e.g. downpayment requirements) and housing markets (e.g. large and indivisible houses), in line with consumption smoothing behavior. On the other hand, older households that could not afford a house before may now become homeowners, given higher returns to skill. Our analysis confirms this conjecture, namely, that SBTC shifts the distribution of homeownership from the young to the old.     

The emergence of the Big Five in Sweden

The accounting profession is dominated by the Big Five, which in 1999 and in order of revenue size were PricewaterhouseCoopers, Ernst & Young, KPMG, Deloitte Touche Tohmatsu and Arthur Andersen. A specific feature of the profession in Sweden is that three firms dominate the market –; PricewaterhouseCoopers, Ernst & Young and KPMG – while Arthur Andersen and Deloitte & Touche are of less relative importance compared with their standing in other countries. The objective of this paper is to explore the development of the auditing profession in Sweden 1912–99, in order to find the growth strategies that generated today's structure. Particular attention will be paid to the gradual emergence of the Big Five. The Big Three auditing firms in Sweden in 1999 engaged 55% (1,105 authorized public accountants) of the total population of authorized public accountants. However, the proportion of ‘sole practitioners’, i.e. firms with no more than one authorized public accountant, was 81% in the same year. An overwhelming part of the auditing firms in Sweden are thus very small. It seems quite obvious that the activities within these small firms in many important ways differ from the activities within the medium-sized and big firms. A common feature of the firms that subsequently became the Big Three in Sweden is that they were established at a very early stage. There seems to have been a first-mover advantage in the auditing profession. The Big Three firms have adopted different growth strategies. They have increased in size by organic growth, by establishing or buying branch offices in different parts of Sweden or by merging with large firms.     

What is the meaning of ‘talent’ in the world of work?

The ongoing confusion about the meaning of ‘talent’ within the world of work is hindering the establishment of widely accepted talent management theories and practices. The aim of this paper is to contribute to the literature on talent management by offering an in-depth review of the talent concept within the specific context of the world of work, and proposing a framework for its conceptualization. We group different theoretical approaches to talent into ‘object’ (i.e., talent as natural ability; talent as mastery; talent as commitment; talent as fit) versus ‘subject’ approaches (i.e., talent as all people; talent as some people) and identify dynamics existing within and between them, as well as implications for talent management theory and practice. Finally, we discuss different avenues for further research aimed at developing the talent—and consequently, the talent management—construct further.