Option parameter analysis and market efficiency tests: a simultaneous solution approach

This paper examines the Black–Scholes option pricing model, dividend adjusted, utilizing the Newton–Raphson numerical technique to generate simultaneously implied variances and interest rates fo 1800 options. Although prior studies have found some profit potential in hedging tests, our tests find that none is available if unbiased, model-implied variance and interest rate variables are used properly in the valuation function.     

Sensitivity and specificity of the Mini-Mental State Examination in the Mexican population

The Mini-Mental State Examination (MMSE) is a rapid, easy-to-administer test for the assessment of cognition functions. It is widely used in clinical practice and in applied research. In this study, we aimed to establish a standard for the Mexican population similar to the ones produced for other relevant populations. We also analysed the effects of demographic variables which regularly induce bias in responses on performance tests, and then, on the basis of the results, implemented a series of corrections to the MMSE to compensate for the usual effects of age and years of formal education. We thus generated a new scale, the adjusted MMSE (AMMSE). We established the maximum sensitivity point to discriminate between the normal population and subjects diagnosed with dementia (vascular and Alzheimer’s). The study provides sensitivity and specificity estimates of this subject-standardized tool in order to reduce the probability of false positives and negatives in the Mexican population.     

Inpatriate managers: Are they being effectively utilized as global talent?

This study questions the return on investment of inpatriate talent. The fundamental rationale of this qualitative study is the need to more consciously manage the talent found in an increasingly diverse global talent pool. As part of this pool, an inpatriate is positioned to add operational value at headquarters, yet face a tremendously different set of hurdles compared to their more traditional counterpart, the expatriate. In light of the differences in characteristics and obstacles faced, we challenge extant literature on the appropriateness of existing talent practices for inpatriate talent. We question whether more conscious choices in management practices can bring greater mutual benefits to the inpatriate and multinational corporation.     

Effects of a short-term linguistic class on communication competence of international nurses: implications for practice, policy, and research

International nurses face a host of challenges in their transition and adaptation to the U.S. health care environment. Language and communication barriers have been ranked consistently as a top concern by employers, regulatory agencies, and international nurses themselves. Researchers in this study examined the effects of a 10-week linguistic class on the reduction of phonologic errors affecting foreign accent in a sample of international nurses. The linguistic course appeared to be effective in improving the international nurses' linguistic competence by reducing their phonologic errors significantly. Moreover, the intervention narrowed the linguistic gap between international nurses from non-English and English-speaking countries. Findings from this study have important implications for practice, policy, and research regarding quality of care, as well as for the transition, job satisfaction, and retention of international nurses.     

Women caring for pre-school children in the USA*

Les mesures prises aux USA pour les enfants d'âge préscolaire et leurs parents, surtout les mères, font l'objet de cette étude. Les mesures sociales, pédagogiques et fiscales qui ont été, soit débattues, soit développées par le gouvernement fédéral dans les deux dernières décennies, y sont discutées. Elles montrent les présomptions qui étayent la politique de l'état vis-à-vis des femmes dans une société capitaliste avancée. La division sexuelle et sociale du travail, qui est une des clefs de l'économie capitaliste, se voit renforcée par des mesures en faveur de la ‘famille’ et en particulier des femmes qui doivent s'occuper d'enfants d'âge préscolaire. Néanmoins, à tout moment, les femmes peuvent se voir attribuer différents rôles, à la fois au sein du système économique et â la maison, selon les besoins en main-d'?uvre de l'économie. Elles peuvent donc être encouragées à prendre un travail rémunéré, ou au contraire sanctionnées. Durant la période étudiée, les femmes des classes moyennes étaient pourvues, mais celles de la classe ouvrière, et surtout les mères seules, sans source de support financier, ont été forcées de trouver du travail. En même temps, les femmes sont restées les gardiennes principales des enfants d'âge préscolaire.     

Development and government policies of the shrimp farming industry in Thailand in relation to mangrove ecosystems

Intensive shrimp farming arrived in Thailand during the 1980s and developed virtually unregulated until 1987. Subsidised by the government, it quickly became an important export industry and Thailand has been the world's largest producer of tiger shrimp since 1991. However, the development of the shrimp farming industry in Thailand over the last 20 years in relation to its use of mangrove ecosystems is an example of sequential exploitation of natural resources witnessed through the shift in farm development from one region to another. This sequential exploitation has caused widespread degradation of mangrove ecosystems, and the benefits of the industry may be less than perceived as a result of subsidies and environmental and social impacts. This study follows the development of shrimp farming in Thailand from the 1940s to 1997 and studies national legislation and associated government policy as examples of driving forces behind this development. From our findings it appears that the development of legislation has not followed the same pace as the development of the industry, neither temporally, nor in content nor implementation, and contradictory policies have arisen.     

Cross-border mergers and acquisitions and the role of trade costs

Cross-border mergers and acquisitions (M&As) have increased dramatically over the last two decades. This paper analyses the role of trade costs in explaining the increase in the number of cross-border M&As. In particular, we distinguish horizontal and non-horizontal M&As and investigate whether trade costs affect these two types of mergers differently. We analyse this question using industry data for 23 OECD countries for the period 1990-2001. Our findings suggest that while in the aggregate trade costs affect cross-border merger activity negatively its impact differs importantly across horizontal and non-horizontal mergers. The impact of trade costs is less negative for horizontal mergers, which is consistent with the tariff-jumping argument.     

The association between corporate social-responsibility and financial performance: The paradox of social cost

It is generally assumed that common stock investors are exclusively interested in earning the highest level of future cash-flow for a given amount of risk. This view suggests that investors select a well-diversified portfolio of securities to achieve this goal. Accordingly, it is often assumed that investors are unwilling to pay a premium for corporate behavior which can be described as socially-responsible.Recently, this view has been under increasing attack. According to the Social Investment Forum, at least 538 institutional investors now allocate funds using social screens or criteria. In addition, Alice Tepper Marlin, president of the New York-based Council on Economic Priorities has recently estimated that about $600 billion of invested funds are socially-screened (1992). MOSES L. PAVA is Associate Professor of Accounting and the Alvin Einbender Chair in Business Ethics at the Sy Syms School of Business, Yeshiva University. His research interests include financial reporting and business ethics. He has recently published articles in the Journal of Accountancy, Management Accounting, The Financial Executive, and Journal of Applied Business Research. His first book, The Shareholder's Use of Corporate Annual Reports, was published in 1993. JOSHUA KRAUSZ is Gershon and Merle Stern Professor of Banking and Finance at the Sy Syms School of Business, Yeshiva University. His research interests are in the areas of financial analysis, ethics and social responsibility, financial accounting, options and derivatives, price behavior, capital budgeting and taxation. He has published in The Review of Economics and Statistics, The Oxford Bulletin of Economics and Statistics, Accounting Horizons, Applied Economics, The Journal of Extractive Industries Accounting, and The Mid-Atlantic Journal of Business.     

Identifying employment-creating sectors in South Africa: the role of services industries

This paper explores scenarios for employment creation, with an emphasis on services. It considers whether the government's current policies for the formal services sector will achieve its 2014 target of halving unemployment. New employment has mainly been found in the formal and non-formal services, and future employment will probably come from such sectors as business services, trade, finance and tourism. As at 2004, about 480 000 new jobs were needed annually to halve unemployment from 26.2 per cent to 13 per cent by 2014. This would require at least twice the average annual job creation since 1994. Two scenarios are considered: the first under current conditions with similar rates of growth; the second with substantial improvements in policy, especially the promotion of trade in services. The first scenario leaves the economy with the same rate of unemployment in 2014. The second sees a reduction in unemployment of 20 per cent.