RISK-TAKING BEHAVIOR AND MANAGEMENT OWNERSHIP IN DEPOSITORY INSTITUTIONS

We examine the relation between risk and ownership structure among depository institutions. The empirical results provide evidence that the relation between managerial ownership and depository institution risk is negative and significant, suggesting that as managerial ownership increases the level of risk-taking decreases. This finding, which supports a risk aversion hypothesis, is consistent across several market-based risk measures. Furthermore, we document greater risk and greater risk aversion for savings institutions relative to commercial banks.     

Are benevolent dictators altruistic in groups? A within-subject design

We use a within-subject experimental design to investigate whether systematic relationships exist across distinct features of individual preferences: altruism in a two-person context, risk aversion in monetary outcomes, and social preferences in a group context. We find that altruism is related to demographic variables, including years of education, gender, and age. Perhaps most importantly, self allocation in a two-person dictator game is related to social preferences in a group context. Participants who are more generous in a dictator game are more likely to vote against their self-interest in a group tax redistribution game which we interpret to be an expression of social preferences.     

Smallpox and Native American mortality: The 1780s epidemic in the Hudson Bay region

The smallpox epidemic of 1781–82 in the Hudson Bay region is said to have devastated the native population, causing mortality of at least 50%. We reassess this claim using a four-pronged approach. First, we total smallpox deaths reported by two fur trading posts that were in the midst of the epidemic. Second, we review case fatality rates in other smallpox outbreaks, and discuss the likely incidence of the disease among Native Americans. Third, we analyse trade during the period of the epidemic. Fourth, we estimate the native population prior to the epidemic based on the carrying capacity of the region. All four approaches lead to a similar conclusion. Mortality from smallpox was likely under 20%, which is much less than previously asserted.     

Recent Progress on Endogeneity in Choice Modeling

We describe recent progress in several areas related to endogeneity, including: choice set formation and attention to attributes; interactions among decision-makers; respondents' strategic behavior in answering stated preference choices; models of multiple discrete/continuous choice; distributions of willingness-to-pay; and methods for handling traditionally endogenous explanatory variables.     

The Effect of Measurement Subjectivity Classifications on Analysts' Use of Persistence Classifications When Forecasting Earnings Items

Earnings items are typically classified in financial reports based on their persistence and measurement subjectivity. Archival research examines investors' use of persistence and measurement subjectivity classifications for forecasting and valuation. However, this research typically examines only one of these classifications at a time and ignores the potential interactive implications of an earnings item's persistence and measurement subjectivity classifications. We recruited experienced financial analysts to participate in two experiments that examined the effect of measurement subjectivity classifications on analysts' use of persistence classifications when forecasting earnings items. We find that analysts rely less on an earnings item's persistence classification when measurement subjectivity is high relative to when measurement subjectivity is low. We also find that presentation format affects analysts' use of these two classifications. Specifically, we find that the matrix format (i.e., rows display persistence classifications and columns display measurement subjectivity classifications) facilitates analysts' combined use of persistence and measurement subjectivity classifications relative to the sequential format (i.e., the classifications are displayed separately). These findings suggest that archival research could improve its examination of market participants' use of earnings classifications for forecasting and valuation by recognizing that the implications of an earnings item's persistence classification can vary according to the item's measurement subjectivity classification. By also demonstrating how presentation format affects analysts' use of earnings classifications, our study provides further insights into this fundamental issue in accounting research and standard setting.     

Ethical Issues in Electronic Commerce

This article reviews the incredible growth of electronic commerce (e-commerce) and presents ethical issues that have emerged. Security concerns, spamming, Web sites that do not carry an "advertising" label, cybersquatters, online marketing to children, conflicts of interest, manufacturers competing with intermediaries online, and "dinosaurs" are discussed. The power of the Internet to spotlight issues is noted as a significant force in providing a kind of self-regulation that supports an ethical e-commerce environment.     

Retaliation: The form of 21st century employment discrimination

During the past decade, retaliation as a basis for employment discrimination claims has risen dramatically from fourth to second place (behind race), increasing by 46%. By definition, retaliation is the act of an employer, through a manager, inflicting an adverse action (such as discharge, discipline, or demotion) against an employee who has complained of discrimination. Retaliation claims open the possibility of punitive damages, examples of which are given in this article. Drawing 1361 cases from a 21-year database, we report the characteristics of retaliation claims and offer recommendations to prevent and manage such claims.