U.S. takeovers in foreign markets: Do they impact emerging and developed markets differently?

We investigate the effect that U.S. acquisitions of targets in emerging and developed countries have on the targets' rivals by measuring their stock price reaction to the acquisition announcement. On average, emerging market rivals react positively to these acquisitions while the reaction in developed markets is insignificant. In developed markets, the main factors explaining the reaction of rival firms are individual rival characteristics such as rival size, efficiency, growth opportunities, and leverage. In contrast, in emerging markets, country, industry, and acquisition characteristics such as economic development, shareholder protection, and the target's public status, industry, and percent acquired, play a more important role.     

Regional Climate Change: Trend Analysis of Temperature and Precipitation Series at Selected Canadian Sites

Global climate change does not necessarily imply that temperature or precipitation is increasing at specific locations. The hypothesis of increasing temperature and precipitation trends associated with global climate change is tested using actual annual temperature and precipitation data for nine selected weather stations, spatially distributed across Canada. Vogelsang's (1998) partial sum and Woodward et al's (1997) bootstrap methods are used for testing for trend. Both methods suggest no warming in the Canadian temperature series except for Toronto, Ontario, which had significant increase over time, along with Moncton, New Brunswick, and Indian Head, Saskatchewan, which had marginal increases. There is no evidence of increasing trend in precipitation except for Moncton, New Brunswick, which had a significantly increasing trend. Thus, public policies designed to address the regional effects of climate change need to be adapted for a particular ecological zone, based on knowledge of the climate trends for that region, rather than on general global climate change patterns. Les changements climatiques à l'échelle planétaire ne signifient pas nécessairement que la température et les précipitations sont en augmentation dans des emplacements donnés. Nous avons testé I'hypothèse d'une assoviation de la tendance à la hausse de la température et des précipitations avec les changements climatiques planétaires à partir des données réelles de température et de précipitations obtenues à 9 stations d'observation climatique réparties dans les diverses régions du Canada. Nous utilisons, pour cefaire, la méthode des sommes partielles de Vogelsang (1998) et celle de rééchantillonnage bootstrap de Woodward et al (1997). Les deux méthodes ne révèlent aucun réchauffement de la température dans les séries chronologiques, sauf pour Toronto, en Ontario, où l'on constate une hausse significative en fonction du temps, ainsi que pour Moncton au Nouveau‐Brunswick et Indian Head en Saskatchewan qui marquent de très légères augmentations. Rien n'indique une tendance à la hausse des précipitations, sauf à Moncton où se dessine une tendance significative dans ce sens. Les programmes publics destinés à faire face aux effets régionaux du changement climatique doivent donc être adaptés à chaque zone écologique particulière, à partir d”observations faites dans la région même, plutôt que de la configuration du changement climatique à l'échelle planétaire.     

The Ramsay Report and the Regulation of Auditor Independence in Australia

This paper provides an overview of key recommendations contained in the Ramsay Report (2001), "Independence of Australian Company Auditors", vis-à-vis current Australian requirements and the overseas developments on which they are based. Specific reference is made to the United States Securities and Exchange Commission "Rules on Audit Independence", released in November 2000, and the proposals contained in the International Federation of Accountants Ethics Committee's re-exposure draft, "Independence—Proposed Changes to the Code of Ethics for Professional Accountants", released in April 2001.     

Deleting misconduct: The expungement of BrokerCheck records

We examine a controversial process, known as expungement, which allows brokers to remove evidence of financial misconduct from public records. From 2007 to 2016, we identify 6660 expungement requests, suggesting that brokers attempt to expunge 12% of the allegations of misconduct reported by customers and firms. When these requests are adjudicated on the merits, arbitrators approve expungement 84% of the time. We show that expungements significantly predict future misconduct; brokers with prior expungements are 3.3 times as likely to engage in new misconduct as the average broker. Further, using an instrumental variable based on the random assignment of arbitrators, we present evidence that brokers who receive expungement are more likely to reoffend than brokers who are denied expungement. We also show that successful expungements improve long-term career prospects.     

Acting in the public interest: accounting for the vulnerable

This article seeks to initiate research around the potential roles of the accounting profession for tackling the challenges of the vulnerable. Its backdrop is the current consideration of the profession’s public interest role. The importance of dialogue around the public interest role is evidenced by the increasing levels of vulnerability, even within developed countries. Accounting underpinned by broader values has potential to provide knowledge of issues relating to the vulnerable. However, the accounting profession has only engaged with such potential to a limited degree. The article overviews existing knowledge and areas within which more research is required. In order to illustrate the potential for such research, initial findings from two case studies of homelessness (an example of the vulnerable) provide evidence as to the importance, and challenges, of accounting for the vulnerable. This article highlights the need to: take a principles-based approach in defining the vulnerable, undertake an accounting that reflects the lives they value, acknowledge that there are different ways for addressing these issues, recognise that an absence of perfect numbers should not become a barrier to action, and that accounting for the vulnerable is one way that the accounting profession may discharge their public interest roles.     

A social procedural approach to the Pareto optimization problematique: Part II. Institutionalized procedures and their limitations

In the previous article (Part I) we briefly introduced the Pareto problematique, selective criticism of it, and Generalized Game Theory’s (GGT) approach to the Pareto optimization problematique. GGT stresses the embeddedness and multilevel character of social games; its application to optimization problems leads to a conceptualization of two-phase societal procedures to achieve agreements for change—or, conversely, maintaining—states of the world. In this part two general types of games are distinguished analytically in the 2-phase process: on the one hand, elementary strategic games take place among agents in the first phase in diverse social settings, and, on the other hand, regulative conflict resolution or collective improvement games are organized as procedures in the second phase. Many elementary strategic games end in stalemates, difficult-to-resolve conflicts, and non-optimal outcomes such as occur in collective action or prisoner dilemma type games. This type of situation is the point of departure for the activation of a meta-game regulatory procedure for resolving stalemates, conflicts, and non-optimal states in order to accomplish societal improvements and efficiencies. In a word, the paper identifies and models institutionalized regulatory mechanisms that resolve conflicts, inefficient or non-optimal states, and disequilibria; and lead thereby to solution or resolution of Pareto optimization problems in the face of general non-unanimity or conflict about the outcomes. In addition, the article present more detailed models of the adjudication, negotiation, and democratic procedures introduced in the previous article and discusses their legitimacy bases, the limits of such societal procedures, and the accomplishment of societal efficiencies through the procedures.     

Yemen: tourism and a tribal-Marxist dichotomy

Tourism in the Middle East is experiencing expansion due to the Middle East peace process and the economic advantages of tourism. However, in the region there are also significant political and cultural constraints to the development of tourism. Yemen has historically been divided into North and South Yemen until the reunification in 1990. Tourism still bears the imprint of this division in terms of its organization, provision of resources and developments. Planning for tourism in Yemen is attempting to reconcile these past divisions and also to manage the growth of tourism in environmentally and culturally sensitive and vulnerable areas. This paper provides an analysis of tourism in Yemen in the mid 1990s, based on fieldwork visits by the authors.