Devaluation,Capital Mobility,and Long-Run Equilibrium*

The paper considers a small, fully employed economy with non-tradeables, securities, and money. The paper first analyzes the effects of devaluation and financial controls in the short-run equilibrium on the trade balance, the capital account, and the overall balance of payments. Disequilibria in the capital account and the overall balance of payments cause changes in the stock of securities and money, shifting the short-run equilibrium. The paper investigates the condition for the- uniqueness and stability of the long-run equilibrium under this adjustment process (‘specie flow mechanism’). Finally, the long-run equilibrium effects of devaluation and monetary policies are examined.     

Apparel preferences of pregnant employed women

Women who have postponed childbirth to become established in a career are now embarking on parenthood while continuing to work throughout much of the pregnancy. As a result, pregnant employed women need clothing that will project an appropriate image. The purpose of this research was to determine the types of garments that pregnant employed women prefer to wear to work and to identify factors influencing the selection of those garments. Results indicated that there were differences among age range groups in selection of workplace attire, and among educational level groups in general fashion appeal of classically styled garments, selection of attire for the workplace, selection of nylon for the summer season, and in care required for garments. There were differences among income range groups in the classic category of general fashion appeal, in the selection of silk fibre for winter wear, and in care required for garments. This study supported the concept of a new and separate segment of the consumer market dealing with pregnant employed women. They have special needs for attire based on age range, educational level, and income range, that will project an appropriate image in the workplace and offer physical and psychological comfort as well.     

How Do Quasi‐Random Option Grants Affect CEO Risk‐Taking?

We examine how an increase in stock option grants affects CEO risk‐taking. The overall net effect of option grants is theoretically ambiguous for risk‐averse CEOs. To overcome the endogeneity of option grants, we exploit institutional features of multiyear compensation plans, which generate two distinct types of variation in the timing of when large increases in new at‐the‐money options are granted. We find that, given average grant levels during our sample period, a 10% increase in new options granted leads to a 2.8% to 4.2% increase in equity volatility. This increase in risk is driven largely by increased leverage.     

Effects of Firm Size,Financial Leverage and R&D Expenditures on Firm Earnings: An Analysis Using Quantile Regression Approach

As documented in the literature, the effects of firm size, financial leverage, and R&D expenditures on firm earnings are inclusive. Our hypothesis is that the inconsistent empirical results of such effects may be driven by the regression models implemented in data analysis. Using the quantile regression (QR) approach developed by Koenker and Basset (1978), this study analyses S&P 500 firms from 1996 to 2005. We find that the effects of firm size, financial leverage and R&D expenditures on firm earnings differ considerably across earnings quantiles. Comparing the results from the QR approach with those from the ordinary least squares (OLS) and least absolute deviation (LAD) methods, this study further explains the puzzling relationship between firm size, financial leverage, R&D expenditures and firm earnings.     

Textile marketing: a status report

This exploratory study investigated the status of textile marketing in the United States by (a) examining the textile industry's use of effective marketing techniques, and (b) identifying common problems and needed improvements in textile marketing. The procedure followed these steps: (a) effective marketing techniques were identified, (b) interviews were conducted with nine textile executives and four individuals representing the United States textile industry at large, and (c) the respondents' statements about textile marketing practices were analysed for evidence of effective marketing techniques, common textile marketing problems and needed inprovements in textile marketing. The results indicated that only five of the thirteen respondents described textile firms that were using effective marketing techniques, but some textile firms were using effective marketing techniques and this should be an incentive for other textile firms. Several common problems and needed improvements in textile marketing were also identified. Because of the small sample size, the open-ended questions, and the subjective analysis of the respondents' statements, this study must be regarded as exploratory. However, representative statements from the respondents are presented and these statements are informative about textile marketing practices.     

An assessment of the effect of fabric conditioner in the final rinse

An objective and subjective assessment of sample fabrics is made from pre-wash through to wash and use of a fabric conditioner in order to determine the physical handling measurements which can be used to assess the perceived output quality from these processes.