An Empirical Analysis of the Bias and Rationality of Profit Forecasts Published in New Issue Prospectuses

Our study sets out to assess the accuracy of profit forecasts made by IPOs in Hong Kong. We use a variety of measures and tests to examine the accuracy, bias, rationality, and superiority of earnings estimates. The results show that forecast accuracy compares favourably with the findings from the developed economies of Australia, Britain, Canada, and New Zealand. Forecasts are shown to be superior to the predictions from time series models. IPOs tend to underforecast in the sense that actual profits exceed the forecasts. The rationality tests show mixed results. Cross-sectional analyses of forecast accuracy have poor explanatory power although the Big Six reporting accountants are associated with smaller forecast errors.     

Wage Reforms in China During the 1990s

In urban areas of China, economic reforms were intensely implemented after 1984. We focus on two primary aspects of the reforms in the 1990s, those pertaining to the labor market and to wages. Based on original interviews and two unique household data sets, we investigate the effects of the reforms. Our first finding is that the components of annual income have changed, reflecting fewer subsidies and more diverse sources of income (such as self-employment), over the period from 1995 to 1999. By 1999, the wage structure reflects less seniority-based pay, allows for more discretion in rewarding non-productive characteristics (gender and Communist Party membership, for example) and also permits more productivity-related pay (as evidenced by increased returns to human capital).     

Is an Exhaustible Resource Economy Sustainable?

The paper focuses on two alternative concepts of sustainability dominating the literature: (i) maximum permanently maintainable consumption level (Fisherian income) and (ii) the amount of consumption that leaves total value of wealth intact (Hicksian income). In the context of a pure exhaustible resource economy, the author derives an explicit relationship between the two sustainability criteria and shows that while such an economy is not sustainable in the former sense, it is in the latter sense provided social preferences are represented by a logarithmic utility function. The implications of the two concepts for greening of national income are derived. Finally, the paper shows the range of values of the parameters of the model for which the utilitarian optimal path can be close to paths satisfying the alternative sustainability criteria, suggesting that such outcomes are less likely for very poor resource‐dependent countries than for the rich ones.     

Consumer ethics: moral ideologies and ethical beliefs of a micro-culture in the US

This study explores the ethical ideologies and ethical beliefs of African American consumers using the Forsyth ethical position questionnaire (EPQ) and the Muncy–Vitell consumer ethics questionnaire (MVQ). The two dimensions of the EPQ (i.e. idealism and relativism), and gender were the independent variables and the four dimensions of the MVQ (i.e. illegal, active, passive and no harm) were the dependent variables. A sample of 283 students from a historically black university was used to explore the relationship between the independent and dependent variables. Findings suggested that consumers who scored higher on the idealism scale and lower on the relativism scale were more likely to reject questionable activities. On average, females expressed more willingness to reject questionable activities than males.     

Factors That Account for the Large Variations in U.S. Export Prices

Using product level U.S. export data from 1989 to 2001, there is evidence that U.S. exporters price discriminate across markets. Variation in the quality of the products is one reason for the observed price differentiation. U.S. exporters also price discriminate based on transaction costs. Finally, U.S. exporters practice pricing-to-market and this pricing strategy is another source of the variations in U.S. export prices. Some of these conclusions though are weakened when export prices toward the center of the price distribution are considered. JEL no. F14     

Subcontracting and occupational health and safety in the residential building industry

This article examines the relationship between subcontracting and occupational health and safety in the Australian and UK residential building industry. It is argued that poorer OHS is an important consequence of subcontracting. This finding has implications for theories of injury causation and analysing the impact of outsourcing on industrial relations.     

Organizational Ethics in Developing Countries: A Comparative Analysis

Relationships with one’s employees, co-workers, or superiors create ethical dilemmas. Employees’ judgments and ethical perceptions have been extensively studied in Western cultures, but not in developing countries. The purpose of this investigation is to examine employees’ self-reported work-related ethics and compare them to their perceptions of co-workers’ and top managements’ along various morally challenging situations in three developing countries’ organizations. Saudi Arabia, Kuwait, and Oman, known as the Gulf countries, were selected as the research setting – and provided the sampling frame – for this study. The results suggest that respondents perceived all ethically challenging situations as unethical and had significant differences among themselves regarding the ethical perceptions of self, as compared to perceptions of peers’, and top managements’. Discussion of the results and implications are provided.     

Reform Unleashed Korean Growth

Before the reform in the 1960s, twin vicious circles perpetuated the shortages of foreign exchange and labor skill, and prevented the Korean economy from realizing its considerable growth potential. The breakthrough came when the Japanese labor shortage facilitated Korean exports, after economic normalization between the two countries. The reformed institutions reduced rent‐seeking and refocused Korean managerial efforts to pioneering activities. The Korean takeoff scenario is a shared theme among all four Asian newly industrialized economies cited by Lucas (1988) as showcases.