THE EFFECT OF MARKET PROXY REBALANCING POLICIES ON DETECTING ABNORMAL PERFORMANCE

In this paper, effects on the measured abnormal performance of test portfolios are compared against market proxies having the same or different rebalancing policies. Results show that the common practice of comparing buy-and-hold test portfolios with equally weighted market proxies produces lower Jensen [ 7 ] alphas and lower alpha t-values. Comparing buy-and-hold test portfolios with value-weighted market proxies produces higher portfolio betas and alphas, but lower alpha t-values. Finally, comparing buy-and-hold test portfolios with buy-and-hold market proxies produces the most powerful tests of abnormal performance.     

Germany and the Euro-Zone Crisis: The European Reformation of the German Banking Crisis and the Future of the Euro

Analysis of the German response to the euro crisis has been framed around a narrative of the relationship between domestic sacrifice and hegemony and sustains an assumption that the German commitment to the euro is proven. Such analysis downplays the importance of the banking crisis in Germany in explaining the decision-making of the German government around the euro-zone debt crisis. Giving German interests in relation to the German banking crisis analytical weight can explain both the positions taken by the German government and their consequences for the underlying structural problems the euro-zone faces as a monetary union. Since the outcomes of German policy have advanced German interests, German handling of the euro-zone crisis cannot sustain a claim that Germany has demonstrated its commitment to the euro.     

Innovation Economy,Productive Public Expenditure and Economic Growth

Multidisciplinary innovation is the main engine of growth for an increasing number of economies. Innovation requires the participation of and interaction between all economic agents. It also requires public spending on education, research and infrastructures. Our main goal is to emphasize the government's role in a growing innovation economy. Developing a non‐scale, idea‐based, one‐sector growth model with complementarities and productive public expenditure, we analyse theoretically the growth effects of an increase in productive public expenditure, which we find positive in the short, medium and long run.     

Strength in numbers or guilt by association? Intragroup effects of female chief executive announcements

We predict that the media reports on female CEOs as a coherent group, whereas male CEOs are treated as individuals by the media. We also suggest that the resulting investors' perceptions of group entitativity of female‐led firms may not only influence the succession event–performance relationship at the focal firm, but may also have a significant effect on the value of other female‐led companies. Results of a text analysis and an event study of appointments of female CEOs to Fortune 1000 firms provide support for these predictions. Copyright © 2013 John Wiley & Sons, Ltd.     

Monte Carlo theoretical trials of methods for assessing statistical significance for differences between adjusted odds ratios

Odds are generally defined as the number of successes divided by the number of failures in a given number of trials. An odds ratio is the ratio of one odds divided by another. Odds ratios can be adjusted to reflect associations with the outcome independently of the influence of associations with other variables. These are adjusted odds ratios. There are several well known methods for comparing odds ratios and testing for statistically significant differences between them. Analogous methods for adjusted odds ratios are not well known or well documented. One method for comparing adjusted odds ratios is explained by Hosmer and Lemeshow (Applied logistic regression, 2000). This method is used for the odds ratios for two variables from the same data set. The purpose of this analysis was to apply this method to a different situation: comparing odds ratios for the same variable from two different data sets. Monte Carlo trials were used to assess the performance of the method and these indicated the method performed well.     

Institutional Pressures and an Evolving Forest Carbon Market

It is estimated that 87 million acres of forestland in the United States (US) is managed by private industrial forestland owners (nearly 14% of the forestland nationwide). Private industrial forestland owners include forest product companies, Timber Investment Management Organizations (TIMOs) and Real Estate Investment Trusts (REITs). Current regulatory and voluntary carbon markets, as well as proposed national emission reduction legislation, in the US make provisions for substantial carbon offsets from domestic forestry projects. This research employs the theory of planned behavior by means of an online questionnaire in order to survey large industrial forestland owners (>30 000 acres) regarding intentions to manage forestland for carbon sequestration and trading. Quantitative results suggest that very few organizations (18%) were managing forestland for carbon values. Attitudes towards carbon sequestration and trading were significantly influenced by the managers' beliefs that emission reduction legislation would become law and that US forest carbon offsets can be used as a legitimate climate change mitigation tool. Qualitative results revealed that most organizations are taking a passive approach to carbon sequestration and trading until a suitable regulatory framework emerges and carbon prices provide the conditions for a sound investment. The researchers suggest that, given the size and scope of the climate change phenomenon as well as the multifaceted and unified mitigation strategy required to address it, the development of functional carbon markets will be an iterative process and may require a global carbon framework that reflects the globalized nature of the forest economy. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment     

The Productivity Impact of IT Deployment: An Empirical Evaluation of ATM Introduction

The term 'IT paradox' has been widely used to describe the apparent failure of much economic research to discover significant productivity gains associated with IT investment. In part this has been ascribed to measurement problems associated with both IT inputs and with outputs in IT-intensive industries. The current paper seeks to circumvent these difficulties by taking the ATM as a clearly defined embodied IT application and then using anaugmented production function approach to isolate its productivity effectsacross a sample of UK building societies, over the period of the ATM'sdiffusion. The paper finds no support for the 'IT paradox' and reports large robust and statistically significant productivity gains associated with ATM introduction.