INFORMATION DISCLOSURE IN MAIL ORDER CATALOGUES

Catalogue mail order shopping has become a common mode of shopping for many consumers. Despite Federal Trade Commission rules as well as federal statutes designed to protect consumers in mail order transactions, consumers continue to experience problems with shopping by mail. Some problems may stem from limited availability or clarity of information in mail order catalogues. Resolution of problems is also more difficult when complete information is not available. In a survey of 139 catalogues distributed in the United States the authors found that, with the exception of refund policies, the majority contained no (or vague) information on the companies' policies. Additionally, when information was provided it was usually located on the order form rather than in the catalogue itself. Recommendations for improved information disclosure in mail order catalogues are discussed in the final section of this paper.     

CO‐MOVEMENT OF AUSTRALIAN STATE BUSINESS CYCLES*

We use a variety of techniques to examine the nature and degree of co‐movement among Australian state business cycles. Consistent with the results of Dixon and Shepherd (2001 ), we find that these cycles move quite closely together, with particularly strong links between the cycles of the larger states. We then seek to understand the causes of this co‐movement by using an unobserved components model to distinguish between various shocks and their transmission. Our model implies that the major source of this co‐movement in state activity is the commonality of shocks affecting state cycles. In contrast, spillovers of region‐specific shocks appear to play only a minor role in creating co‐movement, though region‐specific shocks themselves have a moderate influence on cyclical fluctuations. These findings are consistent with the results of recent studies for the United States, Canada and Europe, where common shocks have also been found to dominate regional cyclical activity.     

Conditional Earnings Conservatism and Corporate Refocusing Activities

We extend standard models of conditional earnings conservatism and adaptation value to the context of the corporate refocusing activities of UK listed companies. This analysis is interesting because refocusing activities are: (1) commonly anticipated by significant negative returns in the financial year(s) before the refocusing event; (2) typically associated with large material charges; and (3) likely to be part of a strategic plan with the internal decision preceding the formal public announcement. We complement Burgstahler and Dichev [1997] by showing how their nonlinear relation between share prices and earnings changes around refocusing events as adaptation options are exercised. Because refocusing events also involve large realized losses and major changes to firms’ strategic plans, we expect to see systematic changes in the timing relations between stock returns and reported earnings. To capture this, we show how the coefficients of Basu's [1997] model of conditional conservatism change around refocusing events.     

Statutory Budgetary and Financial Reporting by Australian Universities

A review of reporting practices in 1998 suggested that New South Wales universities were systematically breaching requirements for the publication of budgets in their annual reports, since the coverage of published budget documents did not encompass all financial transactions reported in financial statements. A government funding agency has required universities to present operating statements in a standard format. But the definitions used in these instructions lead to understatement of spending on administration by not counting expenditure incurred in faculties, schools or departments. It is argued that the combination of reporting practices based on government instructions and the failure of NSW universities to comply with state legislation has led to the production of accounts which are of limited usefulness to key stakeholders.     

CANADIAN TAX REFORM AS PUBLIC CHOICE

One may view current Canadian tax reform as an episode in a tax reform cycle arising from a continual public choice game. Both the positions of the Canadian players and the rules of the game may provide a rationale for these reforms. Revenue, equity, efficiency, and bargaining constraints determine the evolution of the tax code.     

In-Store Shopping Strategies: Time and Money Costs in the Supermarket

Consumers may adopt in-store shopping strategies to reduce time and/or money expenditures. Seven shopping strategies were identified and used to simulate the purchase of 19 specified products at three supermarkets at which price and size data were collected. Expenditures ranged from $13.88 to $23.70 for the various strategies, requiring up to 272 price comparisons. The monetary savings (from the average) resulting from use of the strategies were used to determine the break-even times for three hypothetical wage rates. Break-even time was defined as the amount of time one could spend such that the value of the time expended equals the monetary savings realized. The efficiency of a strategy was found to vary by store and by the value placed on shopping time. The implications of the findings for consumer educators are noted and discussed.