The position of agriculture in kibbutz economy—an attempt at quantitative projection

The Israeli Kibbutz Movement adopted the ideology of the “Return to Nature” and aspired to especially develop agricultural labour. But in the past decade there has been a process of “internal migration” of workers from agriculture to industrial occupations, which was compared to the “Industrial Revolution”. The ratio of agricultural workdays to other productive branches workdays decline from 62% in 1967 to 46.5% in 1974. Kibbutz' management has many reasons to evaluate its future direction, (investment in land, in education, etc.). We shall try to describe the expected developments, using the Markov chain. We shall also try to analyse the yearly interchanges and transfer from agriculture to industry and vice versa. We shall attempt to show that the process of decreasing agricultural manpower has almost ceased, and it will become stable on a fixed level of about 43%.     

Auditor Independence and the Cost of Capital Before and After Sarbanes–Oxley: The Case of Newly Issued Public Debt

An important aim of the Sarbanes–Oxley Act (SOX) was to reduce the cost of capital by enhancing auditor independence. However, prior literature has argued that SOX has been ineffective in meeting this objective. We contribute to this debate by first providing evidence suggesting that auditor independence has increased following SOX. Though we posit an inverse relationship between auditor independence and cost of capital, it is an open question whether this relationship has become stronger or weaker following SOX. An examination of this relationship reveals that auditor independence is more strongly related to bond rating and bond yield premium in the post-SOX period relative to the period before SOX. This evidence suggests greater price sensitivity of corporate debt to the level of auditor independence following SOX. We also show that controlling for the effect of auditor independence and other factors, cost of debt decreased following SOX.     

Market Imperfections as the Cause of Accounting Income Smoothing—The Case of Differential Capital Access

We show income smoothing results as a rational equilibrium behavior in a setting where the manager has superior foresight about the firm's prospects but faces inferior capital access relative to the owner. Under a legal structure that makes forecast-based compensation impractical and an accounting framework that requires reported income to be consistent, unbiased and cash-flow convergent, we show that the manager reports a composite of the underlying income and his foresight information. Moreover, the reported income will exhibit a lower inter-temporal variance than the underlying income. The extent of smoothing is shown to increase with the accuracy of foresight information.We argue that other market imperfections could also cause income smoothing if the manager is privately better informed about future prospects. As such, this paper supports the view that income smoothing is not always opportunistic but can be induced by the owner to satisfy his need to be informed about the future performance of the firm.     

Dynamics of credit spread moments of European corporate bond indexes

Traditional quantitative credit risk models assume that changes in credit spreads are normally distributed but empirical evidence shows that they are likely to be skewed, fat-tailed, and change behaviour over time. Not taking into account such characteristics can compromise calculation of loss probabilities, pricing of credit derivatives, and profitability of trading strategies. Therefore, the aim of this study is to investigate the dynamics of higher moments of changes in credit spreads of European corporate bond indexes using extensions of GARCH type models that allow for time-varying volatility, skewness and kurtosis of changes in credit spreads as well as a regime-switching GARCH model which allows for regime shifts in the volatility of changes in credit spreads. Performance evaluation methods are used to assess which model captures the dynamics of observed distribution of the changes in credit spreads, produces superior volatility forecasts and Value-at-Risk estimates, and yields profitable trading strategies. The results presented can have significant implications for risk management, trading activities, and pricing of credit derivatives.     

Whose Innovation Performance Benefits More from External Networks: Entrepreneurial or Conservative Firms?

The primary contribution of this research is positing and empirically supporting the proposition that learning through external networks disproportionately benefits conservative, risk‐averse firms. The construct, entrepreneurial orientation (EO), is used to discriminate conservative, risk‐averse firms from proactive, risk‐seeking firms. Organizational learning theory and social capital theory are employed to support our hypotheses. Based on a study of 1978 U.S. firms, the paper suggests that the utilization of external networks (i.e., the process of learning from information, perspectives, and insights embedded in external networks) may act as a primary driver for innovation for those firms that are either not inclined and/or do not have the capabilities to adopt entrepreneurial culture. Specifically, weak EO firms' innovation performance benefits from utilizing external networks more than strong EO firms'. This research also tests for the moderating role of firm size and finds that the negative moderating effect of EO on the external network utilization–innovation performance relationship is more pronounced in small and medium sized enterprises (SMEs) than large firms.     

The establishment of industrial branding through dyadic logistics partnership success (LPS): The case of the Malaysian automotive and logistics industry

Logistics partnerships across dyadic and triadic relationship networks have been the basis of extensive research in the extant literature. It is well understood that competitive advantage within logistics and distribution and within supply chains are driven by value-adding aspects of not only the core competencies of each tier in the network, but also via tangential supporting factors. It is also well understood that there is a strong relationship between logistics and distribution and marketing functions, particularly in product-based organisations. In addition to deepening our understanding of how successful partnerships throughout the source–make–deliver continuum can be optimised, this research also seeks to identify how a supporting element in terms of industrial branding and marketing can lead to relational sustainability. Hence, this paper outlines the relationship between logistics partnership success (LPS) factors and the inherent link to industrial branding establishment and business sustainability within the Malaysian automotive industry (specifically, car manufacturers). Adopting a multiple case study approach, findings suggest that there is a strong association between logistics service performance (LSP) provided by the third party logistics provider (TPLP) and the development and support of a mutual brand image for both the TPLP and the car manufacturer. We contribute to the extant literature on logistics partnership and industrial branding through linking LSP with the creation and maintenance of an industrial branding strategy for both parties in the context of the Malaysian automotive industry.     

Calorie information effects on consumers' food choices: Sources of observed gender heterogeneity

A larger portion of males is overweight than is females. Females' food choices in comparison to those of males reflect the greater importance that females attribute to health and physical appearance; their more complex attitude toward risk; the greater esteem in which they hold home-cooked food; and sociological factors. This paper explores the variables that affect consumers' food choices, shedding light specifically on the choice process and analyzing whether gender affects predispositions toward foods, perceptions, choice processes, or all three. Perceptions and choice processes based on memory judgments serve only as a benchmark used to compare choices consumers make under calorie information. The results of two experiments wherein the researchers exposed subjects to two forms of calorie information on three fast food items suggest that differences in perceptions of foods' healthfulness and taste aspects account for gender differences in memory-based choices. In addition to this baseline difference in perceptions, a gender difference in reaction to calorie information in terms of consumers' behavior exists. While calorie information affected both perceptions and choice processes for females, information changed the perceptions of food only for males.     

Entry, exit, and imperfect competition in the long run

An infinite-horizon, stochastic model of entry and exit with sunk costs and imperfect competition is constructed. A subgame perfect Nash equilibrium for the general dynamic stochastic game is shown to exist as a limit of finite-horizon equilibria. This equilibrium has a relatively simple structure characterized by two numbers per finite history. Under very general conditions, it tends to exhibit excessive entry and insufficient exit relative to a social optimum.     

Perceived crisis management and its effect on re-election: the case of local government in Israel under the Second Lebanon War

The performance of local authority heads in times of emergency is a topic that has apparently received very little attention in the research literature. The same is true with regards to the relationship between performance and re-election chances in crisis situations. The hybrid macro polity view makes it possible to ‘pit’ the rational school of objective performance against the bounded rationality school of perceived performance. We examine which of the two is better at explaining the replacement or re-election of the incumbent local authority head in 17 local authorities in the North of Israel, after the Second Lebanon War. In the “Beauty Queen” contest between perceived and objective performance, the perceived performance appears to be a clear winner.