The difference between the local and unbiased expectations hypotheses

This paper shows that the Local and Unbiased Expectations Hypotheses are equivalent in discrete time with continuously compounded interest rates. With discretely compounded rates, the hypotheses, while not exactly identical, are shown theoretically (and empirically for Treasury bills) to be approximately the same. These results have the important implication that many, apparently different, empirical tests of term structure theories have actually been tests of essentially equivalent hypotheses. The results also imply that recent models using continuously compounded rates are empirically indistinguishable from more traditional models using discretely compounded rates.     

Book Reviews

Howard Dick, The Indonesian Interisland Shipping Industry: An Analysis of Competition and Regulation, Singapore: Institute of Southeast Asian Studies, 1987, pp. 217. Paper: US$15.00; Cloth: US$23.00.

Anne Booth, Agricultural Development in Indonesia, Sydney, Wellington and London: Allen and Unwin, 1988, pp. 295 + iv.

Arthur van Schaik, Colonial Control and Peasant Resources in Java, Amsterdam; University of Amsterdam, Institute For Social Geography, 1986, pp. 210.

Joan Hardjono, Land, Labour and Livelihood in a West Java Village, Jogyakarta: Gadjah Mada University Press, 1987.

W. Röll and A. Leemann, Agrarprobleme auf Lombok: Untersuchungen zur Wirtschafts- und Sozialstruktur in Nusa Tenggara Barat, Indonesien (Agricultural Problems on Lombok: Studies of Economic and Social Structure in West Nusa Tenggara, Indonesia), Hamburg: Institut Für Asienkunde, 1987, pp. 300.

Hal Hill (ed.), Unity and Diversity: Regional Economic Development in Indonesia Since 1970, Singapore: Oxford University Press, 1989, pp. 610 + xxx. Cloth: A$65.00.

C. P. Timmer (ed.). The Corn Economy of Indonesia, Ithaca: Cornell University Press, 1987, pp. 302. Cloth: US$32.95.

Thee Kian Wie, Industrialisasi Indonesia: Analisa dan Catalan Kritis (Indonesian Industrialisation: Analysis and Critical Notes), Jakarta: Pustaka Sinar Harapan, 1988, pp. 276.

David Joel Steinberg (ed.), In Search of Southeast Asia: A Modern History, Honolulu: University of Hawaii Press, 2nd Ed., 1987, pp. 590 + xi.

Geoffrey B. Hainsworth, Innocents Abroad or Partners in Development? An Evaluation of Canada-Indonesia Aid, Trade and Investment Relations, Singapore: Institute of Southeast Asian Studies, Field Report Series No. 15, 1986, pp. 100

BRIEFLY NOTED: Ronald G. Petocz (Compiler), The Ecology of Irian Jaya: A Preliminary Bibliography, Halifax N.S., Canada: School For Resource and Environmental Studies, Dalhousie University, 1988.     

Hot and cold IPO markets: The case of the Stock Exchange of Mauritius

The aim of this study is to assess the characteristics of the hot and cold IPO markets on the Stock Exchange of Mauritius (SEM). The results show that the hot issues exhibit, on average, a greater degree of underpricing than the cold issues, although the hot issue phenomenon is not a significant driving force in explaining this short-run underpricing. The results are consistent with the predictions of the changing risk composition hypothesis in suggesting that firms going public during hot markets are on average relatively more risky. The findings also support the time adverse selection hypothesis in that the firms’ quality dispersion is statistically different between hot and cold markets. Finally, the study concludes that firms which go public during hot markets do not underperform those going public in cold markets over the longer term.     

Migrating to the East: a qualitative investigation of acculturation and leisure activities

This study sought to explore leisure behaviours associated with acculturation and immigration experiences among emigrants from the United States and Canada who moved to South Korea. Three main themes were identified as leisure engagement associated with acculturation: (a) embracing new leisure behaviours, (b) experiencing dynamics of interpersonal relationships and (c) improving cultural understandings. The findings of this study indicated that leisure provided an opportunity for participants to develop the ability to adapt to a new environment and gain cultural knowledge. In addition, this study indicates that as a result of leisure activities, participants explored, understood and experienced a new cultural environment that may facilitate acculturation.     

The role of theory in gender and information systems research

In response to claims emanating from recent assessments of the status of gender and IS research about insufficient theorizing of gender, a critical literature analysis of research papers on the topic of gender and IS that appeared in information systems journals between 1992 and 2012 was undertaken. While some research about gender and IS explicitly employs or develops gender theory, other research that claims to be about gender does not explicitly employ any gender theory to interpret research findings, relying, instead, on implicit gender essentialism as a theory-in-use. Research papers about gender and IS that do not explicitly employ gender theory typically use another IS or management theory as the sensitizing device to interpret the data. Still other research papers are gender atheoretical insofar as neither explicit nor implicit gender theorizing is evident in the papers. In gender and IS research, as in all research, gender theory can be used as a lens to guide the collection, analysis and interpretation of data — whether conducted with a positivist, interpretive or critical epistemology. Alternatively, gender theory can be used to interpret findings when gender is a factor that (expectedly or unexpectedly) results from a larger analysis. Finally, gender theory can result, inductively, from the data by means of grounded theory methods. In any case, the use of theory is to be directed toward understanding the phenomenon of gender in the context of IS (analyzing, explaining), establishing causality (predicting) or guiding action (design and action). This analysis of the role of theory in gender and IS research offers recommendations about the conduct of gender and IS research going forward.     

Modelling the Equity Beta Risk of Australian Financial Sector Companies

In this paper we apply the generalised auto-regressive conditional heteroskedasticity (GARCH) and Kalman Filter approaches to modelling the equity beta risk of a sample of fifteen Australian financial sector companies. A de-regulated environment in which strong competitive forces are at play typifies the period of investigation. Consistent with the existing literature, we find that these modelling techniques perform well and, in particular, that the Kalman Filter approach is preferred. Further, we find that considerable variability of risk occurs throughout the sample period. Thus, extending the evidence of Harper and Scheit (1992); Brooks and Faff (1995) and Brooks, Faff and McKenzie (1997), we find evidence consistent with the hypothesis that deregulation has impacted the risk of banking sector stocks.     

CONFIDE: A Collective Decision-Making Procedure Using Confidence Estimates of Individual Judgements

An algorithm (termed CONFIDE) is proposed that may capture many of the benefits of group decision making without the necessity of face-to-face interaction. The algorithm allows individual decision makers to differentially weight the contributions from members according to the confidence with which each member holds to their opinions. The CONFIDE algorithm is compared to both face-to-face group decisions and simple averaging of group members opinions on the Lost-at-Sea ranking task. Results indicate that, in terms of decision quality, the CONFIDE algorithm produces solutions equal to that of the face-to-face group decision method and significantly better than the solution achieved by simple averaging of group members responses.