Predicting forecast errors through joint observation of earnings and revenue forecasts

We propose a simple method to infer the forecast error associated with quarterly estimates of earnings and revenue before the firm announces realized earnings and revenue. The method uses estimates of the profit margin implied by an analyst’s forecasts of both earnings and revenue to identify forecasts that are likely to be optimistic or pessimistic. The ability to anticipate forecast error permits a trading strategy that exploits the average market reaction following positive and negative earnings and revenue surprises.     

Significant drivers of growth in Africa

We employ bootstrap techniques in a production frontier framework to provide statistical inference for each component in the decomposition of labor productivity growth, which has essentially been ignored in this literature. We show that only two of the four components (efficiency changes and human capital accumulation) have significantly contributed to growth in Africa. Although physical capital accumulation is the largest force, it is not statistically significant on average. Thus, ignoring statistical significance would falsely identify physical capital accumulation as a major driver of growth in Africa when it is not.     

Exploring alternative strategic management paradigms in high-growth ethnic and non-ethnic family firms

The primary research question examined in this paper is whether ethnic and non-ethnic family firms in the United Kingdom differ in their strategy-making. The paper uses the typology of strategic decision-making produced by Whittington [(1993). What is strategy: and does it matter? New York: Routledge] to derive contrasting predictions of strategy-making by ethnic versus non-ethnic firms. Drawing on a questionnaire study of 76 high-growth family firms, and subsequent in-depth fieldwork with 40 of these, the findings show that the ethnic origin of the controlling family has a significant influence in determining the dominance of a particular strategy paradigm. However, successful high-growth family firms are not associated with any particular school of strategy. The influence of family bonding on strategy-making was greater in ethnic family firms than non-ethnic family firms. The advent of the second generation of South Asians in family firms, and closer integration of immigrant and host communities, has not altered these apparent differences. The findings challenge researchers on family firms to adopt a multiple perspective approach to strategy-making.     

Leveraging the power of experiential learning to achieve higher-order proficiencies

Although experiential learning approaches, such as service-learning, have been shown to increase student motivation and academic achievement, faculty concerns about the costs of developing and implementing such courses have limited their adoption within economics. One cost that can be eliminated is the opportunity cost typically associated with “required” reflection exercises that are often perceived as taking time away from economic instruction. This article contributes to the existing literature by introducing a reflection mechanism based on programmatically appropriate project-management reports. This approach not only links experience and course content, essential elements of service-learning best-practice, but also facilitates the successful management of a complex project, thereby contributing to the development of higher-order proficiencies.     

Community Attributes Influencing Local Food Processing Growth in the U.S. Corn Belt

This paper examines local and regional attributes associated with growth in the food processing industry. The paper uses industrial location studies to develop a model of food processing plants'growth. Ordinary least squares (OLS) models are estimated to analyze which local, regional and state attributes are associated with county level growth, measured by a change in the number of establishments. The results suggest that food processing growth is associated with factors similar to those influencing the location of footloose manufacturing plants. However, growth in food processing sectors is associated with different local attributes depending on a firm's industry type (demand-oriented, supply-oriented, footloose).     

Responding to a coalfield closure: old Issues for a new regional development agency?

This paper examines the response of a new Regional Development Agency, Yorkshire Forward, to the sudden announcement that the Selby coalfield in North Yorkshire would close with the potential loss of 4000 regional jobs. Once the 'jewel in the crown' of the UK coal industry, its demise has repercussions beyond the Selby district. Following an examination of coal industry restructuring, previous regeneration efforts and issues, the paper considers the impact of closure. It is argued that by rapid analysis of the situation and by leading a Task Force to engage a range of interested parties and experts, the RDA has demonstrated a coordinated sectoral and spatial response to crisis management.     

Effects of Soil Tillage and Time of Planting on Corn Yields and Farm Profits in Southern Ontario

Intensive corn monoculture using conventional tillage systems has been associated with deteriorating soil structure, increased credibility and increasing input expenditures. Alternatives to conventional moldboard plowing may be less destructive of the soil resource, but may generally offer lower yields. This study examines five tillage systems for three soil textures and two average slopes within the decision framework of a model farm. Linear programming is used to evaluate discounted net returns over two planning horizons, both with and without a penalty for lost soil capital. Results indicate that fall plowing is the most profitable system on sandy loam and silt loam soils, despite the higher erosion rate. Zero tillage was the optimum system on loam soils. Inclusion of a soil loss penalty made little difference in optimum solutions. La monoculture intensive du maïs en utilisant les opérations culturales conventionnelles de travail du sol a été associée à la détérioration de la structure du sol, à ?augmentation de la susceptibilité à ?érosion et à ?augmentation des dépenses ?intrants. Les alternatives au labourage conventionnel avec charrue à versoir peuvent moins détruire le sol, mais en général elles offrent des rendements plus faibles. Cette étude examine cinq systèmes ?opérations culturales de travail du sol pour trois textures de sol et deux pentes moyennes, dans un cadre de décision ?une ferme modèle. La programmation linéaire est utilisée pour évaluer le rendement actualisé sur les deux horizons planifiées, toutes deux avec et sans une pénalité pour le capital du sol perdu. Les résultats indiquent que le labour ?automne est le systèlne le plus profitable sur les sols de type loam-sablonneux et loam-limoneux, malgré le taux ?érosion plus élevé. ?élimination du travail du sol était le système optimum sur les sols de type loam. ?incorporation ?une pénalité pour la perte de sol a fait peu de différence sur les solutions optimums.