DETECTING ABNORMAL RETURNS USING THE MARKET MODEL WITH PRE-TESTED DATA

The current literature suggests various alternative procedures for increasing the power of tests to detect abnormal returns in event studies. Using randomly constructed portfolios, we simulate events and compare the results of tests using three alternative procedures: traditional, cross-sectional, and cross-sectional with standardized residuals. For each test, we compare results when all observations are included with results when the observations with high trading volume are omitted from the estimation period. The simulation results indicate that both the traditional approach with omitted observations and the cross-sectional approach using standardized residuals with all observations yield approximately the correct test sizes and significantly improve the power of tests to detect abnormal returns. However, the cross-sectional approach using standardized residuals is clearly dominant among the three procedures.     

Youseff Cassis. Capitals of Capital: A History of International Financial Centres, 1780-2005

The book presents a history of the most influential financialCenters, "the capitals of capital." Youseff Cassis evaluatesthe significance of these Centers by examining their concentrationof financial services, their capacity to process surplus capital,particularly its export, and their role in the intermediationof financial transactions. Their history, from 1780 to the presentday, is covered chronologically in six chapters. Each chapterestablishes a hierarchy of Centers and reasons for changes inthe hierarchy are analyzed as the story unfolds.     

Applications of corporate social monitoring systems; types,dimensions, and goals

This article discusses the development and application of various types of corporate social monitoring systems. Boycotts are a relatively simple form of social monitoring system which aim to produce changes in corporate social behavior. Boycotts may be organized by a single group, or by a number of groups simultaneously. Rating systems may be organized around a single issue, such as the Sullivan Principles rating scheme, or may include multiple companies and multiple issues, such as shopping guides or ethical investment systems.Monitoring systems may be unidimensional or multidimensional, qualitative or quantitative, and absolute or relative. Consumers and investors appear to be the groups most likely to be targeted in these schemes. The importance of these monitoring systems appears to be increasing as both consumers and investors become more interested in using social criteria in decision-making.Karen Paul is Professor of Business & Society at Florida International University. She has been a Senior Fulbright Research Fellow and Peace Fellow of the Bunting Institute of Radcliffe College at Harvard University. She has done extensive research on the use of the Sullivan Principles and other corporate codes of conduct in South Africa, and on corporate issues involving environmental ethics.Steven D. Lydenberg has extensive experience in corporate social monitoring at the Council for Economic Priorities and Franklin Research and Development Corp., and currently as Director of Research at the ethical investing firm of Kinder, Lydenberg, Domini, and Co., Inc. in Cambridge, Mass. He is the senior author ofRating America's Corporate Conscience.     

Urban growth and uninsured rural risk: Booming towns in bust times

Rapid urbanization also happens when economic growth and urban job creation are absent, such as in Africa and Latin America during the eighties. Why do some countries urbanize faster while having worse economic growth? This paper finds that higher aggregate agricultural risk induces rural-urban migration, providing an additional channel to explain the urbanization trend. Uninsurable expected risk will lead to rural-urban migration as a form of ex-ante insurance if households are liquidity constrained and cannot overcome adverse shocks. The effect is robust to controlling for the traditional view of urbanization driven by industrialization, and to several alternative explanations such as government spending.     

Factors determining awareness and knowledge of aquatic invasive species

Public perceptions of invasive species may influence policies and programs initiated by public and private stakeholders. We investigate the determinants of the public's awareness and knowledge of invasive species as few studies have examined this relationship. We focus on aquatic invasive species (AIS) and employ survey data from property owners in a lake district. A major contribution is that we estimate a mixed trivariate binary-ordered probit regression model that accommodates correlations among unobserved characteristics, produces statistically more efficient estimates, and allows a more proper investigation of the probability of knowledge conditional on awareness. Our results provide insights for invasive species education and management programs. We find that individuals are more likely to be aware of AIS if they participate in water-based recreation, visit lakes outside their area, have a boat, belong to a lake association, or are college educated. This has a policy implication: Given high levels of AIS awareness by those most involved in activities around lakes and those with a higher education, it may be beneficial to target informational campaigns at those who do not display these characteristics, so that they can better make informed decisions about whether to support and expend money on invasive species management programs.     

Estimating visitors’ travel mode choices along the Bear Lake Road in Rocky Mountain National Park

The National Park Service (NPS) in the United States of America (USA) is looking to alternative transportation systems to provide visitors access to the national parks in a manner that potentially reduces traffic congestion, enhances visitors’ experiences, and more effectively protects park resources. However, shuttle bus systems without adequate planning and management may lead to unintended consequences such as eliminating the constraint to visitor use levels associated with parking lot capacities. As a consequence, the demand for recreation use in the area increases the potential impacts to the visitor experience and park resources. This study examined the trade-offs Rocky Mountain National Park visitors were willing to make about transportation mode choice using a stated choice survey to inform park managers about visitor acceptance of potential transportation related management actions. Results indicate that visitors prefer to use their private vehicles over the parks transit system but are willing to make trade-offs to ride the shuttle bus in order to avoid crowding along the trail at Bear Lake and vehicle traffic along the Bear Lake Road. In addition, there were statistically significant differences among choices of transportation mode trade-offs among different age groups (i.e., less than 40 years of age, 40–60 years of age, and more than 60 years of age) Specifically, results suggest that visitors less than 40 years are more willing than the older age groups to make trade-offs among transportation options to enhance their chances of being on the trail system at Bear Lake with fewer other people. The significant and interacted relationships with shuttle bus use, visitor use, and vehicle traffic levels found in this study provide RMNP managers opportunities to influence visitors’ transportation mode choices.     

Vehicle routing optimization with soft time windows in a fuzzy random environment

This paper is concerned with a vehicle routing problem with soft time windows (VRPSTW) in a fuzzy random environment. Two objectives are considered: (1) minimize the total travel cost and (2) maximize the average satisfaction level of all customers. After setting up the model for the VRPSTW in a fuzzy random environment, the fuzzy random expected value concept is used to deal with the constraints and its equivalent crisp model is derived. The global–local–neighbor particle swarm optimization with exchangeable particles (GLNPSO-ep) is employed to solve the equivalent crisp model. A case study is also presented to illustrate the effectiveness of the proposed approach.     

To agree or not to agree? A meta-analytical review of strategic consensus and organizational performance

The premise underlying most of the research on strategic consensus is that a higher degree of consensus has a positive impact on organizational performance. Empirical studies, however, have produced inconsistent results for the strength and direction of this relationship, as well as for the role of potential moderators. With this meta-analysis, we provide empirical support for a positive effect of strategic consensus on organizational performance, and offer evidence for the existence of several moderators of the aforementioned relationship, which we then discuss as fruitful avenues for future research. This study enhances our understanding of this important strategy process construct and benefits managerial practice by discussing means for improving the realization and implementation of strategies.     

Paying the piper: Performing rights organizations and their role in the retail function

Music has become a central element in consumer marketing for its ability to influence consumers' attitudes and behaviors. Research has shown that music adds value to the retail and service environments. In most instances, however, the cost to use music extends beyond the expenses incurred from purchasing CDs, stereo equipment or engaging musicians to perform. Most industrialized nations have statutes that protect music under copyright. The present research presents a review and comparative analysis of the licensing efforts of performing rights organizations in two industrialized nations—the United States and India. The licensing efforts of these organizations have been a source of criticism for their impact on small businesses and retailers. Recommendations for improving the current situation are offered.