Shredded Reputation: The Cost of Audit Failure

In this article we investigate the impact of the Enron audit failure on auditor reputation. Specifically, we examine Arthur Andersen's clients' stock market impact surrounding various dates on which Andersen's audit procedures and independence were under severe scrutiny. On the three days following Andersen's admission that a significant number of documents had been shredded, we find that Andersen's other clients experienced a statistically negative market reaction, suggesting that investors downgraded the quality of the audits performed by Andersen. We also find that audits performed by Andersen's Houston office suffered a more severe decline in abnormal returns on this date. We are not able to show that Andersen's independence was questioned by the amount of non–audit fees charged to its clients.     

Difference in degrees: CEO characteristics and firm environmental disclosure

We contribute to the literature on firms' responses to institutional pressures and environmental information disclosure. We hypothesize that CEO characteristics such as education and tenure will influence firms' likelihood to voluntarily disclose environmental information. We test our hypotheses by examining firms' responses to the Carbon Disclosure Project (CDP) and find that firms led by newly appointed CEOs and CEOs with MBA degrees are more likely to respond to the CDP, while those led by lawyers are less likely to respond. Our results have implications for research on strategic responses to institutional pressures and corporate environmental performance. Copyright © 2013 John Wiley & Sons, Ltd.     

Bond immunization for additive interest rate shocks

This paper explores bond immunization for additive term structure models. This class of term structures contains many models that are commonly used in the duration and immunization literature. We establish the necessary and sufficient conditions for immunization and prove the existence of a bond portfolio that satisfies the immunization condition. Based upon the immunization condition, we develop a general definition of duration that applies to any additives term structure model.     

Should Chinese Local Governments Be Allowed to Issue Bonds?

I.IntroductionDespite China’s impressive economic growth,its fiscal sustainability has increasinglybecome one of the most watched risk indicators facing the economy.Although China’sexplicit national debtto GDP ratio israther manageable by theOECD standard,at about20 percent of GDP,given its small share of tax revenue to GDP,currently at18.5percent ofGDP,this fiscalsystem may stumble upon major challenges in themedium to long term ifChina’slargecontingent fiscal liabilitiesare als…     

浅谈落后山区人才现状及其对策

当今世界,人才资源已成为最重要的战略资源,人才不仅在国际竞争中越来越具有决定性意义,而且在国内竞争中也发挥着愈来愈重要的作用。从某种意义上讲,区域经济的竞争实际上就是人才的竞争。一个地区经济越发达,集聚的人才也就越多,而人才集聚得越多,也就越能促进当地发展。改革     

HOW EXPOSED IS THE SOUTH AFRICAN ECONOMY TO INTERNATIONAL TRADE?

Following the policies implemented during the 1990s, the South African economy has become more globalised. This is particularly the case as far as international trade is concerned. The implementation of trade reforms, in some cases faster than WTO commitments, has increased the exposure of the South African economy to international trade. Trade in intermediate inputs increases the external orientation of an industry and hence increases the economy's exposure to trade. This in effect means that the economy is more open to external trade shocks than is conveyed by the traditional openness measure which considers only the trade in final products. This paper uses a measure proposed by Campa and Goldberg (1997) to estimate the exposure to trade and finds that around 79 per cent of output in 2000 was accounted for by industries that became more exposed to international trade. Further, domestic production has become more reliant on imported inputs with around 60 per cent of South Africa's GDP being accounted for by industries with a negative external orientation (i.e. industries where imported input costs exceeded export revenue). In addition, it was also found that those sectors that became more externally oriented had lower inflation rates and higher growth rates than the other sectors in the economy for the period under analysis. The extent to which the increased exposure to international trade facilitated these developments remains topical for further research.     

The challenges facing empirical estimation of household food (in)security in South Africa

This paper sets out to describe current principle theoretical positions in food security research, describe and compare empirical South African food security studies with key international methodologies and pose research challenges for food security research in the country. Scant available food security studies for South Africa seem to indicate that food insecurity and hunger exist and are likely to increase due to increasing food price trends, greater reliance on cash food purchases and spiralling vulnerability as a result of HIV/AIDS morbidity and mortality. Empirical research is urgently needed to determine the coping strategies of households under ‘normal’ conditions, identify vulnerable households, and monitor the impact of various shocks and stresses on household food security.     

Multifamily Housing Demand: 1980–2000

Using Annual Housing Survey data on multifamily structure occupancy by household type for 1975, together with number of household projections from the Department of Agriculture, a gross level of multifamily housing demand is projected. Allowance is made for a 2 percent replacement rate of the total stock as well as a 5 percent vacancy figure for new household demand. Assuming that: (1) there is no massive shift away from one-family ownership to multifamily units, and (2) the present level of conversions from one-family units to multiple occupancy continues to offset the trend of conversion from rental multifamily units to condominium status, then total future demand for multifamily rental units is well within current construction levels.

• We are presently building one and one-half times the demand of 416,000 units per year projected for 1975–80.

• The demand from 1980 to 1990 decreases to 367,000 new units annually.

• This is further reduced to 335,000 units annually for the period 1990–2000.

The major determinants of future demand will focus on the scrap-page rate of extant facilities and the regional shifts of population.
The future supply of multifamily structures depends on an abatement of construction costs and interest rates, and/or massive levels of Government subsidy.
There is evidence that operating cost rises are challenging the financial integrity of multifamily structures. This is manifested by the HUD and private market mortgage delinquency and foreclosure rates.
Policy focus for the future should emphasize the minimization of both construction and operating costs rather than augmented delivery rates.     

Testing assumptions underlying economic research on transgenic food crops for Third World farmers: Evidence from Cuba, Guatemala and Mexico

Transgenic crop varieties (TGVs) are being promoted as essential for improving small-scale Third World (SSTW) agriculture. Most economic research on this topic makes critical, untested assumptions, including that farmers will choose TGVs over other varieties because TGVs are economically optimal and because farmers are risk neutral profit maximizers. We tested these assumptions using data from a survey of 334 farmers in 6 communities in Cuba, Guatemala and Mexico in which farmers ranked 4 real and hypothetical maize varieties for eating and sowing. Our results did not support these assumptions. Most farmers preferred farmer varieties for sowing and especially for eating, avoiding TGVs, a preference associated with being risk averse and with non-monetary preferences. Farmers more integrated into modern agriculture were more likely to choose TGVs. These results suggest that farmers most in need of support and most important for conserving genetic diversity are least favorable toward TGVs, and that alternative ways of improving SSTW agriculture should receive more attention.     

Applied Product Capability Analysis Chart in Measure Step of Six Sigma

This paper will apply product capability analysis chart PCAC in Measure step of Six Sigma. Because the test model is sampling, sampling error must be consider. Thus minimum value will be used to evaluate process capability. Besides the paper used minimum value to evaluate process capability, we also applied the concept of Six Sigma in PCAC and construct PCAC of Six Sigma standard. Finally, PCAC of Six Sigma standard will apply in Six Sigma project of Offset Ratchet Wrenches which manufactured by Y company.