AN IMPLICIT MEASURE OF THE EFFECTIVE BID-ASK SPREAD: A NOTE

We extend Roll's study of the effective bid-ask spread in an efficient market environment by allowing for serially correlated order arrival and quote behavior. This extension results in a more general effective bid-ask spread measure, which precludes imaginary spreads and includes Roll's measure as a special case when the serial correlation is zero. This new measure is related to the length of the measurement interval due to the serial correlation, and thus has the potential to explain the previously observed differential between weekly and daily derived spreads.     

The rise of regulatory capitalism and the decline of auditor independence: A critical and experimental examination of auditors’ conflicts of interests

This study investigates the decline of auditor independence coinciding with the rise of regulatory capitalism. A critical analysis supported by experimental evidence reveals regulatory capitalism's influence on auditor independence. Regulatory capitalism began in the United States during the 1970s when state enforced neo-liberal free-market doctrines of competition and deregulation commercialized the profession. Since then, regulatory capitalism's economic neo-liberal agenda has transformed the auditing profession and the employer firms into a transnational network of professional services firms that now promote and diffuse regulatory capitalism worldwide. Regulatory capitalism is further facilitated by the Sarbanes-Oxley Act and the PCAOB that provide interconnections of powerful non-democratic private regulators such as the IFAC and IAASB. An experiment reveals auditors’ ethical predisposition to provide consistently high quality independence judgments required by IFAC's code of ethics. The majority of this sample of 174 Danish auditors was not consistently independent in the context of client economic factors, indicating that the code of ethics’ appeal to auditors’ altruistic behavior has failed. Moreover the transformed profession has become the transformer but at a price, the loss of public confidence and the decline of auditor independence. Conflicts of interests still abound.     

Social cultural influences on current and future coastal governance

Australians have strong attachments to the coast. The impact of climate change brings to the fore deep-seated socio-cultural values, which add to the already complex and uncertain biophysical changes that challenge our preparations for future climate change.Our research aims to examine the role of worldviews and deep seated values in decision-making in response to climate change. The objective is to show how a multi-layered discourse analysis using causal layered analysis (CLA) can provide a powerful means of revealing the underlying social and cultural influences on decision-making and provide more insight into potential pathways for more effective responses to complex phenomena such as climate change. A case study of coastal governance in the south west of Western Australia, which is highly vulnerable to sea-level rise, provides the context of the research.We have found that CLA as a critical research tool has proven to be a useful method in uncovering the dominance of the administrative rationalist worldview on coastal governance. In our view, future coastal governance would benefit from a shift towards greater participatory governance and the incorporation of more reflexive practice so that the deeper emotional and relational aspects of decision-making balance out the dominant problem-solving discourse.     

Positive global leadership

In the wake of increasing globalization, today's organizational leaders are faced with unprecedented complexity. To help meeting the challenge, this article proposes a new positive approach to global leadership. After first providing the background on positivity, positive global leadership is carefully defined and its similarities and differences with both the established and contemporary leadership theories are noted. The discussion then turns to how positive global leadership addresses three major challenges in the global context of distance, cultural differences and cross-cultural barriers. The article concludes that this new positive approach can help global leaders to leverage diverse strengths in themselves and their environment to more effectively meet the escalating challenges they face now and in the future.     

Disconnecting: Understanding decline in universal service

At a time when choices for voice service and funding for universal service were growing, the United States experienced an unprecedented drop in household telephone penetration. Universal service in voice telephony is generally taken for granted in the United States. However, recent data from the FCC shows a significant decline in the number of U.S. households that have a telephone of any kind (including mobile), from a peak in telephone penetration of 95.5% in March 2003 down to 92.9% in November 2005. This decline is both statistically significant and meaningful, as approximately 2.6% of U.S. households could not easily reach 911 for emergencies. This study uses regression analysis of state-level data to determine what drove this decline in universal service. The results demonstrate that the recent decline in universal service in the U.S. is driven by an increase in black population, inadequate consumer protection laws, and increases in wireless telephones per capita. Lifeline effectiveness does not appear to mitigate the decline in penetration, while Link-Up effectiveness may have a limited effect.     

What Makes a Human Brand Authentic? Identifying the Antecedents of Celebrity Authenticity

While authenticity has received considerable attention in the marketing literature, the factors that influence the perceived authenticity of a celebrity's “human brand” have remained unexplored. This research fills this void by identifying the antecedents of celebrity authenticity, defined as the perception that a celebrity behaves according to his or her true self. Based on a qualitative analysis of an open‐ended survey completed by 218 adults and on previous authenticity literature and attribution theory, the authors propose two antecedents of celebrity authenticity—rarity and stability—that are each composed of three sub‐dimensions. Analyses of cross‐sectional survey data from a sample of 428 adults provide support for the hypotheses that stability and rarity positively influence celebrity authenticity. Additionally, based on aging stability theory, the authors predict and demonstrate that the effects of rarity and stability on celebrity authenticity are moderated by age.     

9/11 Impact on Teenage Values

Did the September 11, 2001 terrorist attacks on the U.S. cause the values of teenagers in the U.S. to change? Did their previously important self-esteem and self-actualization values become less important and their survival and safety values become more important? Changes in the values of teenagers are important for practitioners, managers, marketers, and researchers to understand because high school students are our current and future employees, managers, and customers, and research has shown that values impact work and consumer-related attitudes and behaviors. Further, studies that compared higher to lower performing for-profit and not-for-profit companies have found that higher performing organizations had strong values that permeated their organizations [Collins J. C., and J. I. Porras: 1994, Built to Last: Successful Habits of Visionary Companies (New York, Harper Business); O’Reilly, C. A. and J. A. Chatman: 1996, in B. M. Staw and L. L. Cummings (eds.), Research in Organizational Behavior, vol. 18 (JAI Press, Greenwhich, CT), pp. 157–200; O’Reilly, C. A.: 1989, California Management Review 31(4), 9–25; Posner, B. Z., and W. H. Schmidt: 1996, Public Personnel Management, 25(3), 277–298; Rousseau, D.: 1990, Group and Organization Studies 15(4), 448–460; Schein, E. H.: 2004, Organizational Culture and Leadership. San Francisco, Jossey Bass)]. While one study of adults found value changes, no known studies have explored if the values of teenagers also changed post-9/11. This study filled that research gap by exploring the values of a random sample of 1000 U.S. teenagers in grades 9 to 12 pre- and post-9/11, using a demographic questionnaire and the Rokeach Value Survey. The research results indicated that teenage survival, safety, and security values (a world at peace, freedom, national security, and salvation) increased in importance while their self-esteem and self-actualization values (a sense of accomplishment, inner harmony, pleasure, self-respect, and wisdom) decreased in importance, mirroring the changes for adults. The meaning of these findings for practitioners, managers, marketers and researchers was discussed.     

Analysts’ sale and distribution of non fundamental information

We examine an analyst’s sale and distribution of information related to short-term price movements but unrelated to underlying firm value. By selling non fundamental information, the analyst increases competition on the signal, but prices become more sensitive to net order flow, creating an offsetting increase in the non fundamental signal’s value. More precise non fundamental information is more widely distributed. In the limit, a perfect non fundamental signal will be publicly disclosed for an arbitrarily small fee, and the analyst earns profits as if he possessed fundamental information. Consistent with empirical findings, analysts’ recommendations can be profitable, even when widely distributed or seemingly inconsistent with detailed forecasts. Analysis based on non fundamental information does not contribute to greater price efficiency but reduces liquidity costs. In a multi-period setting, traders with non fundamental information do not front-run, preferring to transact only in the period in which uninformed demand is executed.