The increasing role of UNIDO as cooperation promoter

After ten years during which technical assistance to developing countries by the United Nations Industrial Development Organization (UNIDO) rose from $ 5 mn in 1967 to $ 40 mn in 1976, factors influencing the organization’s evolution, future tasks, operations and plans have taken place. In the long term much will depend on the extent to which international cooperation keeps pace with declared intentions, and favourable indications have been provided by the response to early experiments in global consultation. Realization that industrialization encourages all other forms of development, particularly education and health services, should also encourage greater material support to UNIDO from Governments.     

Degrees-of-freedom problem and implied cost of equity capital

Bias in implied cost of equity estimates arises from analyst optimism and a degrees-of-freedom problem. The common practice in empirical studies of using a proxy for the earnings forecast horizon beyond two years in the Ohlson and Juettner-Nauroth (OJ) model is potentially biased. We derive a generalized OJ model over a T period forecast horizon and indicate the extent of this bias. The implied cost of equity capital is obtained from a quadratic equation, where our constant term comprises T short-term annual earnings per share growth rates, rather than just the next-period counterpart in the OJ model.     

An error-correction model of the demand for equity mutual funds in the U.S. 1973–1994

The purpose of this paper is to estimate an error-correction model of the U.S. demand for equity mutual funds. Using annual data for the period 1973–1994, this study finds that changes in the demand for equity mutual funds have been significantly influenced by the changes in the rate of return on equity mutual funds and savings deposits, as well as by the growth in income over the long run. The authors would like to thank an anonymous referee of this journal for many useful comments and suggestions.     

Risk Sharing Mechanism in Japan's Auto Industry: The keiretsu Versus Independent Parts Suppliers

This study investigates (1) whether risk sharing behavior of subcontractors has changed over the two decades (1973–94); (2) whether there are any differences between keiretsu firms and independent firms in sharing risk; (3) how ownership of its parts-suppliers through minority shareholdings by automakers or sending directors to parts-suppliers affects the suppliers' risk sharing behavior. Empirical results support the risk-sharing hypothesis in general. The keiretsu firms are more risk averse than independent firms in the first period (1973–85). In the second period (1985–94) independent firms become more risk averse than keiretsu firms. This may suggest that the keiretsu system would work as a shock absorber in an unfavorable business environment.     

The Determinants of Chinese Outward Foreign Direct Investment: A Closer Look

Over the last fifteen years, China rapidly expanded its outward foreign direct investment (OFDI) through remarkable economic growth and the “go global” policy. Chinese firms explored investment avenues especially in developing and emerging countries. As a result, China became the third largest contributor of OFDI. We examine the determinants of Chinese OFDI in 67 countries during the period lasting from 2006 to 2015 using the feasible generalized least square method. We find that the size of the economy, market opportunities, cost advantages due to low wage structure, ease of doing business, country risk, and geographical proximity are the prominent factors leading to changes in Chinese OFDI in developing and emerging economies. We find that China’s investments in different developing and emerging countries are driven by a different set of factors and the determinants of Chinese OFDI vary in low and high per capita income countries.     

Does inflation cause gold market price changes? evidence on the G7 countries from the tests of nonparametric quantile causality in mean and variance

This article utilizes the newly proposed nonparametric causality-in-quantiles test to examine the predictability of mean and variance of changes in gold prices based on inflation for G7 countries. The causality-in-quantiles approach permits us to test for not only causality in mean but also causality in variance. We start our investigation by utilizing tests for nonlinearity. These tests identify nonlinearity, showing that the linear Granger causality tests are subject to misspecification error. Unlike tests of misspecified linear models, our nonparametric causality-in-quantiles tests find causality in mean and variance from inflation to gold market price changes between the 0.20 quantile and the 0.70 quantile, implying that very low- and high-price changes in gold markets are not related to inflation. These changes should be related to other sources, such as financial shocks and exchange market shocks. We find support that gold serves as a hedge against inflation, but only in the mid-quantile ranges, i.e. quantiles from 0.20 to 0.70. Our results show that gold does not serve as a hedge against inflation during periods when gold market price changes are very low or very high, which are respectively quiet and highly volatile periods.     

Computer users’ ergonomics and quality of life – evidence from a developing country

This study is aimed at investigating the quality of workplace ergonomics at various Pakistani organizations and quality of life of computer users working in these organizations. Two hundred and thirty-five computer users (only those employees who have to do most of their job tasks on computer or laptop, and at their office) responded by filling the questionnaire covering questions on workplace ergonomics and quality of life. Findings of the study revealed the ergonomics at those organizations was poor and unfavourable. The quality of life (both physical and mental health of the employees) of respondents was poor for employees who had unfavourable ergonomic environment. The findings thus highlight an important issue prevalent at Pakistani work settings.     

Application of technology roadmaps for renewable energy sector

Technology Roadmapping (TRM) is a growing technique widely used for strategy planning and aligning technology with overall business objectives. Technology roadmaps are extensively used in many diverse fields at product, technology, industry, company and national levels. An increasing number of articles published on TRM and technology roadmaps indicate that there is a growing attention for TRM among the researchers from academia, industry and government. In this article, an overview of the application of TRM in renewable energy sector has been provided. After survey of the relevant academic literature and industry roadmaps, we tried to group the roadmaps related to the renewable energy technologies into national, industry/sector and organizational level roadmaps. Research findings indicate that goals and objectives of renewable energy roadmaps are different at these three levels. At national level, roadmaps focus on future energy security, energy dependence, energy policy formulation and environment protection. At industry/sector level, roadmaps are used to identify vision, common needs and evaluate barriers, constraints and risks faced by the industry from technical, political and commercial aspects. Organizational roadmap focuses on evaluation and prioritization of R&D projects to achieve the business goals. Similarly different methods, tools and approaches are used to develop roadmaps at different levels. Various other characteristics of these roadmaps are also discussed and analyzed. Research findings also indicate that greater numbers of roadmaps are developed for those renewable energy technologies undergoing rapid growth. Moreover, most of these roadmaps are developed in the regions where more research, development and deployment activities of renewable energy technologies is taking place.     

Globalisation and the Major Accounting Firms

Driven mainly by deregulation and technological change, globalisation is a common tendency among firms seeking better opportunities and lower costs. This paper discusses the nature of globalisation in accounting firms, in particular the "Big 5" (the paper was written before the Big 5 became the Big 4). The firms seem to exhibit two forms of the phenomenon: establishment globalisation (spread of a firm's establishments in different locations) and product globalisation (addition of new services in a bid to extend global reach). The paper examines the effect of globalisation on the demand for accounting information and how globalisation transforms the major accounting firms.     

SYSTEMATIC RISK IN A PURELY RANDOM MARKET MODEL: SOME EMPIRICAL EVIDENCE FOR INDIVIDUAL PUBLIC UTILITIES

A minimum norm quadratic (MINQU-) type of OLS estimator is derived. The estimator is used to test if the betas of the single factor market (SFM) model are random for a sample of utilities for two contiguous periods. The estimated betas for individual utilities vary considerably over time. The statistical significance of such nonstationarity depends on both the utilities and period studied. The relative reduction in the mean square error (MSE) from using a GLS (and not OLS) estimator of beta, when beta is purely random, can be substantial for some utilities but is modest on average.