THE DETERMINANTS OF RESEARCH GROUP PERFORMANCE: TOWARDS MODE 2?*

This paper explores the determinants of performance of research groups in the context of the emergence of knowledge as a key intangible asset. It focuses specifically on how best to configure knowledge producers for optimal effectiveness in the current research environment. It explores the under‐researched area of the organization and management of research groups located in and at the interface of university research and focuses on medical and medical‐related research groups. The discussion is embedded within the current debate concerning modes of organization in knowledge production. Factors identified with high‐achievement are: strong leadership; finding, motivating and retaining talent; strategies of related diversification; strongly linked theory and practice and, in particular, network connectedness. Such groups exhibit an increasingly complex internal environment, facilitating a flexible response to an increasingly complex external environment. It finds evidence of Mode 2 working, with increasing use of collaborative strategies and some evidence of a thematic emphasis emerging, although to a lesser extent than the literature suggests, since participants are still working from a strongly disciplinary base. Driven by the more competitive environment, both intellectual and commercial forms of entrepreneurship are present. At the hub of this complex web of inter‐related factors is network connectedness, which proves to be centrally facilitative in mobilizing the other necessary resources.     

Taxes on Tax‐Exempt Bonds

Implicit tax rates priced in the cross section of municipal bonds are approximately two to three times as high as statutory income tax rates, with implicit tax rates close to 100% using retail trades and above 70% for interdealer trades. These implied tax rates can be identified because a portion of secondary market municipal bond trades involves income taxes. After valuing the tax payments, market discount bonds, which carry income tax liabilities, trade at yields around 25 basis points higher than comparable municipal bonds not subject to any taxes. The high sensitivities of municipal bond prices to tax rates can be traced to individual retail traders dominating dealers and other institutions.     

Trade Generation, Reputation, and Sell-Side Analysts

This paper examines the trade‐generation and reputation‐building incentives facing sell‐side analysts. Using a unique data set I demonstrate that optimistic analysts generate more trade for their brokerage firms, as do high reputation analysts. I also find that accurate analysts generate higher reputations. The analyst therefore faces a conflict between telling the truth to build her reputation versus misleading investors via optimistic forecasts to generate short‐term increases in trading commissions. In equilibrium I show forecast optimism can exist, even when investment‐banking affiliations are removed. The conclusions may have important policy implications given recent changes in the institutional structure of the brokerage industry.     

USING THE WORLD WIDE WEB IN ACCOUNTING RESEARCH: A HUGE STEP FORWARD OR A NEW CONSTRAINT?

The Internet has been used in academia as a means of sharing information between researchers for many years. The more recent development of the World Wide Web as an Internet tool launched this technology into the business domain and this has led to a significant growth in the availability of business related information resources on the network. This paper discusses the potential of the web for the use in the specific domain of accounting research. It highlights the relevant information a researcher can expect to find on the network, suggests ways of using the web to improve research development and dissemination and discusses a number of concerns that are commonly raised by researchers who wish to use the web in their research.     

The Relationship Between Sociodemographics and Concern About Food Safety Issues

This study reviews the relationship between sociodemographic variables and food safety, and assesses how sociodemographic variables relate to three different food hazards in the food chain—pesticides, Salmonella, and fat. Our results revealed that women and blacks were more likely to have high levels of concern about food safety than were men and whites. Also, the level of concern increased with age. A respondent's percived vulnerability to that risk may explain differences across risks.