Convertible bond arbitrage,liquidity externalities,and stock prices

In the context of convertible bond issuance, we examine the impact of arbitrage activity on underlying equity markets. In particular, we use changes in equity short interest following convertible bond issuance to identify convertible bond arbitrage activity and analyze its impact on stock market liquidity and prices for the period 1993 to 2006. There is considerable evidence of arbitrage-induced short selling resulting from issuance. Moreover, we find strong evidence that this activity is systematically related to liquidity improvements in the stock. These results are robust to controlling for the potential endogeneity of arbitrage activity.     

Divas of the Wassoulou Sound: Transformations in the Matrix of Cultural Production,Globalization, and Identity

This paper examines the role of popular music performance in a context of urban change, globalization, and gender. Through an in-depth examination of the Malian music style Wassoulou and its reigning star Oumou Sangaré, issues of gender, interpretation, and cultural production are discussed. Ethnographic data presented indicate that wassoulou performance provides much needed space for Malian youth to negotiate changing notions of identity and community without openly challenging the status quo of women and youth in traditional Mande social hierarchy. These new identities convey multiple and sometimes paradoxical symbolic meaning for Malian and world-music listeners. Viewing vocal performance in Mali as a verbal mode of communication and social display, wassoulou divas are particularly excellent sites for the study of emergent identities in the context of globalization.     

The geographic distribution of environmental inspections

Models of the enforcement of environmental regulations regarding point source pollution suppose that the probability of inspection or audit is independent across facilities. However, there are a number of reasons why regulators may choose to inspect many sites in a particular geographic area at one time. If the probability a site is inspected also depends on its compliance behavior, the expected payoff from choosing to violate will depend upon the compliance decisions of neighboring sites, creating a game of strategic interdependence between firms. In this paper, we use a dataset of inspections at petroleum storage sites in Manitoba between 1981 and 1998 to consider to what extent inspections are spatially correlated and whether inspection probabilities are a function of the inspection and violation history of the site and its neighbors. Further, we examine to what extent firms take into account whether their neighbors have been previously found in violation in determining compliance.     

What should you pay to host a party? An economic analysis of hosting sports mega-events

Governments all over the world put huge amounts of money into bidding for, and then hosting, sports events like Football’s World Cup or the Olympic Games. They also give money to professional sports teams and other mega-events to encourage them to locate within a particular constituency. This article examines the statistical relationship between tourism and three Football World Cups and five Olympic Games, finding very little positive effect. Given this conclusion, the article looks at why governments continue to bid for these competitions. It presents evidence that shows that these sports contests make people happy, and argues that politicians capitalize on this feel-good factor; harnessing the hubris associated with these events for political gain. The article then contends that the best way to reduce the politics associated with bidding for mega-events is to allocate them via an auction, rather than the wasteful rent-seeking methods that are currently used.     

Commitment to the Study of International Business and Cultural Intelligence: A Multilevel Model

Adopting a multilevel theoretical framework, we examined how metacognitive and motivational cultural intelligence influence an individual’s commitment to the study of international business (IB). Data from 292 undergraduate and graduate business students nested in 12 U.S. business school classes demonstrated that individuals’ metacognitive and motivational cultural intelligence are positively related to their commitment to the study of IB. Furthermore, there is additional commitment when the classrooms’ cultural intelligence climate is high. We discuss the implications of these findings within a classroom context that involves cross-cultural interactions.     

Malthus,Darwin, and the Descent of Economics

Confusion about overpopulation stems from the writings of Thomas Malthus in 1798. It was compounded by Charles Darwin and Alfred Russel Wallace, both of whom made the Malthusian “struggle for existence” the basis of natural selection in the evolutionary process. Malthus argued, without evidence, that human population growth will continue unchecked until regulated by external factors such as hunger and disease. Darwin and Wallace cemented that idea into evolutionary theory. Recent evolutionary biologists have focused on gene frequency as a way to compare the reproductive success of one individual against another within the same species. However, among humans, the true basis of reproductive success is grounded in control of the resources necessary for survival. Humans sometimes adapt to environmental stress by having more children, not fewer, which means that poverty can cause population growth, not the reverse. Recognizing this simple relationship would have helped Darwin resolve a dilemma at the heart of his theory: his expectation that the most successful members of our species would have the most children, an idea contradicted by his observation of large, poor families among the Irish. The evolutionary puzzle can be solved by observing that providing equal access to land enables humans to limit their own fertility. The problem of equal access can be addressed by implementing Henry George's idea of taxing the value of land, thereby preventing hoarding and gross inequality of wealth.     

The Greek financial crisis: Growing imbalances and sovereign spreads

We discuss the origins of the Greek financial crisis as manifested in the growing fiscal and current-account deficits since euro-area entry in 2001. We then extend a model typically used to explain risk premia to assess the extent to which credit ratings captured these premia. Next, we estimate a cointegrating relationship between spreads and their long-term fundamental determinants and compare the spreads predicted by this estimated relationship with actual spreads. We find that spreads were significantly below what would be predicted by fundamentals from end-2004 up to the middle of 2005; by contrast, since May 2010, actual spreads have exceeded predicted spreads by some 400 basis points.     

Can Students' Academic Integrity Be Improved? Attitudes and Behaviors Before and After Implementation of an Academic Integrity Policy

This study compares survey results administered before the implementation of a culture change and the adoption of an academic integrity policy with results of a second administration of the instrument six years later. Data collected reveal significant changes in attitudes towards academic integrity issues by undergraduate business school students. Progress, in terms of reducing students' participation in various forms of academic dishonesty, has been uneven. The most notable shift occurred in behaviors over which instructors enjoy some measure of control.     

If you dig it, they will come!: Archaeology heritage sites and tourism development in Belize, Central America

Tapping into a growing global tourism market, in recent years the Government of Belize has been marketing and promoting tourism as its primary economic sector. The latest efforts have included the cruise ship sector and marketing Mayan cultural history for tourism. Three phases of Mayan excavation can be identified: (1) pre-mid-1990s when sites were scientific exercises with tourism following; (2) the 1990s to present with the archaeological digs such as at Caracol fostering tourism development as the project is undertaken; and, (3) future sites yet to be excavated. This paper explores the positive and negative impacts of developing Mayan sites for tourism in Belize. The results are based on a survey of face-to-face interviews conducted with tourists based in San Ignacio, a community in west-central Belize. San Ignacio is adjacent to the Cahal Pech archaeological site and within a short drive of the Xunantunich and Caracol sites. Caracol is only partially excavated with temporary infrastructure providing access to tourists. In fact, the income generated from this access pays for continued excavations. The findings indicate that while there are obvious educational and economic benefits for such development, there are also concerns about how much is too much.     

On the pooling of cross-sectional and time-series data in the presence of heteroskedasticity

We analyze the effect of heteroskedasticity on log-linear aggregation, and its implications for the pooling of cross-section and aggregate time series data. An empirical analysis of food consumption, based on US family budget survey and aggregate time series data, illustrates.