Liquidity and market makers: a pseudo-experimental analysis with ultrahigh frequency data

An analysis is given of the effect of market makers on liquidity using a transaction-level database. For this purpose, the focus is on a financial market where a change in regulations created explicitly the category of market maker in 1997 and that date is used to construct a pseudo-experiment. In contrast with other studies that use ultrahigh frequency data, the days to be analysed are selected using a statistical procedure to match observations before and after the change in regulation. The propensity score is used to perform the matching. After choosing the days, an estimate of an ordered probit model is made to explain the intraday behaviour of price changes. The coefficient estimates from the ordered probit model are used to calculate a measure of liquidity based on the steepness of the response function of price changes to volume. The results show that liquidity, measured in this way, has not been affected by the introduction of the market makers.     

Vocational skills in the accounting professional profile: the Chartered Institute of Management Accountants (CIMA) employers' opinion

The increasingly dynamic environment in which accountants work has necessitated a reorientation of accounting education. In some countries this issue has raised great interest amongst accounting educators and practitioners. The ongoing debate has already resulted in the publication of several statements and research papers that have raised the question of the relevance of the role of vocational skills in accounting education. Examples of these vocational skills are communication skills, interpersonal skills, and problem-solving skills. This paper reports on the importance that the employers of management accountants gave to a specified set of vocational skills and capabilities and the level of ability of these skills exhibited by students. In order to prioritize future developments an integrated analysis of the two attributes, importance and exhibited level, is enabled by the use of strategic mapping. The results of this study suggest that the employers perceive deficiencies in several capabilities that they have identified as being quite important. These deficiencies exist, in the employers' opinion, both prior to recruitment and on professional qualification. The research also indicates that, in the opinion of these employers, the development of these skills should be a central concern for universities and professional bodies. The employers also indicated that vocational skills should be attained in an integrated way.     

Modeling the European cycle with factor structure and regime switching

This paper compares the stylized facts of the European growth cycle stemming from the Gross Domestic Product (GDP) of the European Monetary Union with an unobserved common factor derived from a dynamic factor model with regime switching. The aim of this paper is to provide empirical evidence about the most adequate indicator for short-term monitoring of the cyclical state of the European economy. Previous versions of this article have been presented at the 55th International Atlantic Economic Conference (Vienna, Austria, March 12–16, 2003) and at the VI Encuentro de Economía Aplicada (Granada, Spain, June 5–7, 2003). The author would like to thank the conference participants and an anonymous referee for their comments and suggestions.     

Risk compensation in wages – a replication

We use data from Germany, The Netherlands, Portugal and Spain to test for the effect of earnings variation on individual earnings. We replicate estimates for the USA and find that the variance of earnings in an occupation affects individual wages positively while the skewness of earnings has a negative effect. Both results are in conformity with wage compensation for risk averse workers. First version received: March 2001/Final version received: July 2002 We are grateful to two anonymous referees for valuable comments.     

An Evaluation of ASEAN Port Performance and Efficiency*

The overall objective of this paper is to evaluate the performance and efficiency of ASEAN ports. Specifically, it first identifies overseas ports similar to ASEAN ports in terms of nature and roles, port management policies, and infrastructure and operations, using the statistical technique of cluster analysis. Having identified the groupings of similar ports, the paper compares the ASEAN port performances and efficiency with their (similar) overseas counterparts. The results of the ‘like for like’comparison show that the ASEAN ports have achieved higher levels of efficiency in the utilization of cranes, berths and storage areas, with the port of Singapore as the top performer. However, they are generally less efficient in terms of timeliness, labour and tug utilization. Charges in ASEAN ports are also significantly higher than those of their (similar) overseas counterparts. Thus, we can say that, although the ASEAN ports are efficient from the port authorities’viewpoint, there is much scope for improving their services to port users, particularly in terms of timeliness and port charges.     

PRODUCT MARKET STRUCTURE,CAPITAL INTENSITY,AND SYSTEMATIC RISK: EMPIRICAL RESULTS FROM THE THEORY OF THE FIRM

Product market concepts from industrial organization economics are integrated with financial valuation models of the firm to investigate relationships among systematic risk, capital intensity, and product market power. The theory of the firm facing uncertain input and output prices is extended to provide empirical models. Empirical results coincide with hypotheses derived from the theoretical model and pose questions about traditional single period hypotheses found in the finance literature.     

Food aid as a tool of development: The experience of PL 480, Title III

This article reviews the experience of the US Food for Peace Program (PL 480) under Title III, with the objective of identifying some of the limitations and possibilities of using food aid as a development tool. It will argue that while multi-year agreements are inflexible, the settings in which the agreements are to be implemented are turbulent and uncertain. Combining food aid with development also makes severe demands upon the administrative capacity of both field missions and recipients, resulting in a reluctance on the part of both to initiate agreements.     

Impact of RFID information-sharing strategies on a decentralized supply chain with reverse logistics operations

The integration of environmental practices in a supply chain has been study for the past few decades. However, most of the work relies on centralized decisions made by one player. Few papers address the complex dynamics of environmental decentralized supply chains and how these dynamics can affect environmental and economic outcomes. To study this problem, we consider a supply chain with a manufacturer and two different suppliers: a recycled-material and a raw-material supplier. The players make individual inventory decisions to satisfy demand and reduce cost. Further, this supply chain encompasses stochastic elements such as in demands, returns, and collection leadtimes. These decentralized decisions and random factors can cause underperforming results; therefore, new inventory models and technologies are needed to help companies increase coordination within these systems. We model the implementation of Radio Frequency Identification (RFID) in the supply chain to determine if real-time inventory monitoring and information sharing can help the system attain higher environmental benefits (more returns) and higher economic benefits (less cost). We study two scenarios through a simulation-based analysis: No RFID and RFID. Numerical studies show that environmental benefits are significantly increased with the attainment of more returns. However, although economic benefits are realized, they are less significant than the environmental benefits. Further regression and sensitivity analyses on the cost performance measures reveal that economic benefits depend on several drivers inside the system. We present managerial insights that illustrate what configurations within this complex system can lead to the achieving of environmental as well as economic benefits.     

The role of private versus governmental venture capital in fostering job creation during the crisis

Small Business Economics - We analyze whether young entrepreneurial ventures backed by different types of venture capital firms, i.e., private (PVCs) vs. government-owned (GOVCs), experience higher...