Governance,media and the quality of environmental disclosure

Given the rising emphasis on environmental disclosures and the expressed importance of ‘good’ governance in determining the extent of information disclosure in general, we examine the relation between specific aspects of governance and media coverage and the quality of voluntary environmental disclosure (VED). Using a sample of 127 firms over a 6-year period (2000–2005), we empirically test characteristics of governance and media in relation to VED. Our results suggest that VED quality is positively associated with environmental media coverage, negative environmental media and board attributes of independence, diversity, and expertise. Results from supplemental analysis suggest that institutional investors exert influence over managerial decisions on environmental reporting only in the face of negative environmental media. Additionally, results from longitudinal analyses indicate that the quality of environmental disclosures increases over time. Our conclusion discusses the implications of these findings.     

Technology choice under changing peanut policies

The effect of marketing quotas and price supports on technology adoption are examined for peanut production in the southeastern United States using a real options model of investment with output price and yield uncertainty. The optimal choice of peanut production technology (dryland versus irrigated) in the southeast is shown to depend on price supports and how they change. The manner in which price supports change will have an effect on the choice and rates of abandonment or adoption of production technologies.     

Tactical Opportunities,Risk Attitude and Choice of Farming Strategy: an Application of the Distribution Method

When assessing farming strategies, it is important to account for the opportunities provided for tactically adjusting to outcomes of risk. The hypothesis that accounting for tactical adjustment is more important than accounting for risk attitude was supported in this study with regard to identifying the optimal drainage recirculation strategy for an irrigated dairy farm. Failing to account for tactical adjustment would lead to a sub-optimal choice, costing the farmer about A$3 100 in present value terms. In contrast, failing to account for risk aversion would not affect the strategy chosen. The distribution method was found to be well suited to modelling tactical adjustment.     

Time series momentum and moving average trading rules

We compare and contrast time series momentum (TSMOM) and moving average (MA) trading rules so as to better understand the sources of their profitability. These rules are closely related; however, there are important differences. TSMOM signals occur at points that coincide with a MA direction change, whereas MA buy (sell) signals only require price to move above (below) a MA. Our empirical results show MA rules frequently give earlier signals leading to meaningful return gains. Both rules perform best outside of large stock series which may explain the puzzle of their popularity with investors, yet lack of supportive evidence in academic studies.     

Coordinated Effects in the 2010 Horizontal Merger Guidelines

Recent research has highlighted the quantitative contribution to merger analysis from extending unilateral effects models to understand the payoffs to future potential coordinated effects. Some of the emphasis of this research appears to have made its way into the 2010 Horizontal Merger Guidelines. In this paper, we demonstrate the quantification of coordinated effects in an oligopoly and procurement model, and we show that screens that are based on upward pricing pressure are not adequate in mergers where coordinated effects are a potential concern.     

Climate for Scandal: Corporate Environments that Contribute to Accounting Fraud

We examine the governance characteristics, earnings quality, growth rates, dividend policy, and compensation structure of 97 firms recently under investigation by the Securities and Exchange Commission (SEC) for accounting fraud. Our results show that the corporate environment most likely to lead to an accounting scandal manifests significant growth and accounting practices that are already pushing the envelope of earnings smoothing. Firms operating in this environment seem more likely to tip over the edge into fraud if there are fewer outsiders on the audit committee and outside directors appear overcommitted.     

Reviews

POLICIES FOR TRAINING AND THE LONG-TERM UNEMPLOYED.

Corney, M. 1990: The Black Hole in Britain's Training System; Training for People in Employment: Robinson, P. 1989: Stagflation; Lessons from Other Places; and Meacher, M. 1990: Adopting the Employment Principle: A Green Paper. All published by the Campaign for Work. The price of the first is £4.00, the second £5.00 and the third £3.50.

US LESSONS IN EVALUATION.

Bingham, R. D., Hill, E. W. and White, S. B. (eds) 1990: Financing Economic Development: An Institutional Response. Newbury Park, California and London: Sage Publications, £33.25 cloth, £16.75 paper.

LESSONS FROM THE USA.

Hambleton, R. 1990: Urban Government in the 1990s: Lessons from the USA,

Occasional Paper No. 35, Bristol: School for Advanced Urban Studies. No price stated.

SKILLS TRAINING.

CBI, 1989: Managing the Skills Gap. London: CBI, £10.00 paper; Report of the Vocational Education and Training Task Force, 1989: Towards a Skills Revolution. London: CBI, £20.00 paper; Association of London Authorities, 1990: Training for London. London: ALA.