Post‐merger strategy and performance: evidence from the US and European banking industries

The banking industry has one of the most active markets for mergers and acquisitions. However, little is known about the type of operational strategies adopted by banking firms in the years following a deal. For a sample of bidding banks in the USA and Europe, this study compares the design and performance implications of different post‐merger strategies in both geographical regions. Using accounting data, we show that European banks pursue a cost‐cutting strategy by increasing efficiency levels vis‐à‐vis non‐merging banks and by cutting back on both labour costs and lending activities. US banks, on the other hand, raise both interest and non‐interest income in the post‐merger period.     

Race and the development of career interest in accounting

Data from the AICPA (2009b) show that African–Americans comprise only 1% of CPAs and were only 4% of new hires by CPA firms in academic year 2007–2008. The current study uses social cognitive career theory to examine whether this shortage of diversity may be caused by differences between African–American and Caucasian students in factors that lead to career interest in accounting. Students were surveyed on two key personal variables: self-efficacy and outcome expectations. Results suggest that African–American students are more likely than Caucasian students to perceive accounting as providing outcomes that match their values. However, favorable perceptions may be countered by differences in self-efficacy. African–American students value outcomes provided by accounting, but they may have less confidence, compared to Caucasian students, that they can successfully complete the course of action necessary to enter the profession.     

Is integration I(d) applicable to observed economics and finance time series?

The method of cointegration in regression analysis is based on an assumption of stationary increments. Stationary increments with fixed time lag are called ‘integration I(d)’. A class of regression models where cointegration works was identified by Granger and yields the ergodic behavior required for equilibrium expectations in standard economics. Detrended finance market returns are martingales, and martingales do not satisfy regression equations. We ask if there exist detrended processes beyond standard regression models that satisfy integration I(d). We show that stationary increment martingales are confined to the Wiener process, and observe that martingales describing finance data admit neither the integration I(d) nor the ergodicity required for long time equilibrium relationships. In particular, the martingales derived from finance data do not admit the time (or ‘space’) translational invariance required for increment stationarity. Our analysis explains the lack of equilibrium observed earlier between FX rates and relative price levels.     

The Effective Duration and Convexity of Liabilities for Property-Liability Insurers Under Stochastic Interest Rates

Managing interest rate risk for property-liability insurers requires appropriate measurement of the sensitivity of liabilities to movements in interest rates. Most prior studies have assumed that interest rates shift in a parallel fashion and that the cash flows from liabilities are unaffected by interest rate changes. This article recognizes that unpaid property-liability (P-L) insurance losses are inflation-sensitive, that movements in interest rates will affect future claim payouts due to the correlation between interest rates and inflation and that interest rates are stochastic. The effective duration and convexity of P-L insurance liabilities calculated based on this approach are substantially lower than those measured using traditional approaches, which has important implications for asset-liability management by P-L insurers.     

The Polycentric Character of Business Ethics Decisionmaking in International Contexts

Many ethical issues facing managers of multinational corporations are polycentric problems. That is, they involve a number of distinct centers -- each of which define rights and obligations of a multiplicity of affected parties -- and resolving matters around one center typically creates unpredictable repercussions around one or more of the other centers. Polycentricity is a normative phenomenon especially unsuited for adjudication, often requiring recourse to alternative processes of contract (or reciprocal adjustment) and managerial direction. This study explores how such concerns about the limits of adjudication (and its various moral counterparts) apply to international decisionmaking connected to human rights obligations of multinational companies. The focus is on ethical problems such as controlling child labor in LDCs such as Bangladesh, India and Pakistan; setting wages in developing countries like Honduras; and conducting business transactions with rights-violating regimes, such as the governments of Nigeria and Myanmar.     

A Bootstrap Method for Identifying and Evaluating a Structural Vector Autoregression*

Graph‐theoretic methods of causal search based on the ideas of Pearl (2000), Spirtes et al. (2000), and others have been applied by a number of researchers to economic data, particularly by Swanson and Granger (1997) to the problem of finding a data‐based contemporaneous causal order for the structural vector autoregression, rather than, as is typically done, assuming a weakly justified Choleski order. Demiralp and Hoover (2003) provided Monte Carlo evidence that such methods were effective, provided that signal strengths were sufficiently high. Unfortunately, in applications to actual data, such Monte Carlo simulations are of limited value, as the causal structure of the true data‐generating process is necessarily unknown. In this paper, we present a bootstrap procedure that can be applied to actual data (i.e. without knowledge of the true causal structure). We show with an applied example and a simulation study that the procedure is an effective tool for assessing our confidence in causal orders identified by graph‐theoretic search algorithms.     

Cross-country interdependencies in growth dynamics: A model of output growth in the G7 economies, 1960–1994

Cross-Country Interdependencies in Growth Dynamics: A Model of Output Growth in the G7 Economies, 1960–1994. — Recently developed methods in time series analysis are employed to study output growth across the G7 economies. The methods accommodate the interdependencies that exist between economies’ growth, and provide the means for analyzing the sources of shocks to output growth and for examining the time profiles of the shock effects. Sophisticated dynamic adjustments in output are identified, due to lagged responses to shocks, the feedback of effects across countries, and the differential speeds of response to different types of shock. Among the shocks considered, those to world trade and oil prices are shown to significantly affect many countries’ output levels.     

农信社银行间市场业务的发展状况与思考

近年来，我国银行间市场发展迅速，农村信用社改革试点工作也取得重大进展，但农村信用社银行间市场参与度普遍较低。文章以山东省内7个市地65家农村信用社为研究对象，深入分析影响其银行间市场业务发展的各种制约性因素，并在转变观念、完善体制和机制、加强政策指导和推动业务协作等方面提出了改进建议。     

On building better construct measures: Implications of a general hierarchical model

Four problems occur in the scale development process: (a) defining the construct, (b) drawing items from multiple domains, (c) identifying dimensions, and (d) showing nomological validity. In order to minimize these problems, the authors propose a general hierarchical model (GHM) that provides an organizational structure for placing many of the individual difference constructs used in marketing and consumer behavior. Three principles, which were derived from the GHM, add to the current scale development paradigm: (a) Define and test the construct within a hierarchical network that includes antecedents and consequences, (b) define and test the construct's dimensionality, and (c) match the construct's items to its level in the hierarchical system. By using these steps in scale development, researchers can build more precise measures possessing higher levels of validity and reliability. © 2008 Wiley Periodicals, Inc.     

Hospitality studies and hospitality management: A symbiotic relationship

The key contribution of this paper is to critically analyse advances made since the introduction of hospitality as a higher education subject, to capture contemporary thinking, and to support the recognition of the intellectual benefits for hospitality management theory and practices of a curriculum informed from a social science-based studies perspective. The benefits of this inter-relationship are demonstrated through the inclusion of an illustration informed by historical means of enquiry, which applies hermeneutical analysis and interpretation of St. Benedict's Rule (c. 530 A.D.). This serves to tangibly demonstrate the academic rigour, value, and educational gains achievable through a symbiotic relationship between hospitality studies and hospitality management.