A Survey of Governance Disclosures Among U.S. Firms

Recent years have featured a spate of regulatory action pertaining to the development and/or disclosure of corporate governance structures in response to financial scandals resulting in part from governance failures. During the same period, corporate governance activists and institutional investors increasingly have called for increased voluntary governance disclosure. Despite this attention, there have been relatively few comprehensive studies of governance disclosure practices and response to the regulation. In this study, we examine a sample of 50 U.S. firms and their public disclosure packages from 2004. We find a high degree of variability in the presentation and reporting format choices for many elements of the governance structure. This variability includes several items for which disclosure is mandated by regulators or legislative action. In particular, smaller firms offer fewer disclosures pertaining to independence, board selection procedures, and oversight of management (including whistleblowing procedures). There are also trends associated with board characteristics: boards that are less independent offer fewer disclosures of independence and management oversight matters. Moreover, large firms provide more disclosures of independence standards, board selection procedures, audit committee matters, management control systems, other committee matters, and whistleblowing procedures but do not appear to have a strictly superior information environment when compared to smaller firms. The findings raise questions about compliance with regulatory requirements and the degree to which conflicts of interest between managers and directors are being controlled. While there have been notable improvements in the information environment of governance disclosures, there remain structural issues that may possess negative ramifications for stakeholders.     

Industry convergence in rural tourism development: a China-featured term or a new initiative?

ABSTRACT

Industry convergence is a popular term that has been widely referenced in the context of rural tourism development in China. All levels of government (local, regional, national) in China have repeatedly addressed the significance of industry convergence in their tourism plans and related policies. Despite its popularity, limited studies at present have explored this concept in-depth. Using Huai’an as a case, this study applied a path analysis and reported the industry convergence process in a destination. The findings of this study can provide both theoretical and practical implications that are useful for tourism planners and policy makers.     

Using Revealed Preferences to Infer Environmental Benefits:Evidence from Recreational Fishing Licenses

We develop and apply a new method for estimating the economic benefits of an environmental amenity. The method is based upon the notion of estimating the derived demand for a privately traded option to utilize an open access good. In particular, the demand for state fishing licenses is used to infer the benefits of recreational fishing. Using panel data on state fishing license sales and prices for the continental United States over a 15-year period, combined with data on substitute prices and demographic variables, a license demand function is estimated with instrumental variable procedures to allow for the potential endogeneity of administered prices. The econometric results lead to estimates of the benefits of a fishing license, and subsequently to the expected benefits of a recreational fishing day. In contrast with previous studies, which have utilized travel cost or hypothetical market methods, our approach provides estimates that are directly comparable across geographic areas. Our findings show substantial variation in the value of a recreational fishing day across geographic areas in the United States. This suggests that current practice of using benefits estimates from one part of the country in national or regional analyses may lead to substantial bias in benefits estimates.Financial support of this work was provided by Resources for the Future, the U.S. Environmental Protection Agency, and the Dean’s Research Fund, John F. Kennedy School of Government. The analysis benefitted from discussions with Andrew Metrick, Richard Newell, and Kerry Smith, and comments from participants at seminars at the National Bureau of Economic Research and Harvard University, and very helpful comments from two anonymous referees. The data set, which builds upon previous work by Wolf (1988), was assembled with the help of a series of research assistants, including: Rod Bender, Nancy Bilica, Alisha Bloom, Diane Cherry, Peter Condon, Andrew Hoffman, and Michael Susanto. The authors alone are responsible for any errors.     

Are Charters the Best Alternative? A Cost Frontier Analysis of Alternative Education Campuses in Texas

Previous research on the relative efficiency of charter schools focused on schools that serve a general student population. In Texas, as in many other states, some charter schools have been designed specifically to serve students who are at risk of dropping out of school. Such “alternative education campuses” may have very different cost and efficiency profiles than schools designed to serve students in regular education programs. In this article, we estimate a translog stochastic cost frontier model using panel data for alternative public high school campuses in Texas over the five‐year period 2007–2011, and find that alternative education high school campuses operated by charter schools are systematically more efficient than alternative education high school campuses operated by traditional public school districts. Policies that encourage the formation of alternative education charter campuses may thus be a sensible component of strategies to combat the pervasive and pernicious problem of high school dropouts.     

The Influence of Large Stake Family Control on Performance: Is It Agency or Entrenchment?

Agency theory posits that the greater degree of control by those with decision-making authority, the greater the overall organizational performance. Conversely, entrenchment theory implies that at extremely high levels of inside control by those with decision authority, organizational performance decreases. Using a nationwide sample of 2,631 privately held and publically traded family businesses, we examined if the relationship of percent family ownership is an agency or entrenchment relationship and found the latter. Specifically, there was a statistically significant negative relationship between percent of family control and sales growth as well as a strong inverse relationship between percent of family controlling the top management team and all measures of financial performance.     

ENGAGING TIMESHARE OWNERS IN TOURISM DESTINATION MANAGEMENT: TOURISM PLANNING AND TOURISM MARKETING IMPLICATIONS

It is important to understand tourists' willingness to participate in tourism planning and the factors influencing their willingness because they are an integral part of the destination and ultimately one of the main buyers of the product. Timeshare owners are a special group of tourists who have additional connections with the tourism destination through their timeshare. The purpose of this study was to investigate the relationships among timeshare owners' perceptions of tourism planning, civic engagement, sense of place, and willingness to participate in tourism planning.

This study was based on a questionnaire survey of U.S. timeshare owners. The total sample size was 302. A two‐stage structural equation modeling approach was applied in data analysis. Results from the measurement model suggested that the model fit the data quite well. Results from the structural model suggested that timeshare owners' perceptions of tourism planning, their past history of civic participation, and their sense of place significantly impact their willingness to participate in tourism planning, while timeshare owners' past experience in political participation did not significantly affect their willingness to participate in tourism planning. Implications of the findings in tourism planning and tourism destination marketing are presented.     

W.F. Sheppard's Smoothing Method: A Precursor to Local Polynomial Regression

W.F. Sheppard has been much overlooked in the history of statistics although his work produced significant contributions. He developed a polynomial smoothing method and corrections of moment estimates for grouped data as well as extensive normal probability tables that have been widely used since the 20th century. Sheppard presented his smoothing method for actuaries in a series of publications during the early 20th century. Population data consist of irregularities, and some adjustment or smoothing of the data is often necessary. Simple techniques, such as Spencer's summation formulae involving arithmetic operations and moving averages, were commonly practised by actuaries to smooth out equally spaced data. Sheppard's method, however, is a polynomial smoothing method based on central differences. We will show how Sheppard's smoothing method was a significant milestone in the development of smoothing techniques and a precursor to local polynomial regression.