Short-term debt maturity,monitoring and accruals-based earnings management

Most prior studies assume a positive relation between debt and earnings management, consistent with the financial distress theory. However, the empirical evidence for financial distress theory is mixed. Another stream of studies argues that lenders of short-term debt play a monitoring role over management, especially when the firm’s creditworthiness is not in doubt. To explore the implications of these arguments on managers’ earnings management incentives, we examine a sample of US firms over the period 2003–2006 and find that short-term debt is positively associated with accruals-based earnings management (measured by discretionary accruals), consistent with the financial distress theory. We also find that this relation is significantly weaker for firms that are of higher creditworthiness (i.e. investment grade firms), consistent with monitoring benefits outweighing financial distress reasons for managing earnings.     

Ethical Judgments Across Cultures: A Comparison between Business Students from Malaysia and New Zealand

This study compares the attitudes to ethical dilemmas of first year business students in Malaysia and New Zealand by using a series of scenarios or vignettes. Between subject manipulations were made to the scenarios given, based on expected cultural differences suggested in the literature. In particular, Hofstede's (1980, 1983 and 1991) work was used as a framework to identify dimensions based on differences in national culture. The results indicated some differences in responses based on both nationality and ethnic origin. Differences were also found as a result of the manipulations within the scenarios. However, a lack of any interaction effects between the manipulations and both nationality and ethnic origin indicated that cultural differences did not lead to different responses to the manipulations.     

Nonlinearities in the U.S. corn‐ethanol‐oil‐gasoline price system

We use a smooth transition vector error correction model to assess price relationships within the U.S. ethanol industry. Monthly ethanol, corn, oil, and gasoline prices from 1990 to 2008 are used in the analysis. Results indicate the existence of long‐run relationships among the prices analyzed. Strong links between energy and food prices are identified.     

A Multivariate Evaluation of Ex ante Risks Associated with Fed Cattle Production

The purpose of this paper is to evaluate production risks faced by fed cattle producers. We do this by jointly modeling a group of cattle production yield risk factors using a multivariate dynamic regression model. The proposed econometric model estimates parameters that influence the mean and variance of production yield factors, as well as the covariance between variables, while accounting for a high degree of censoring through the use of a dynamic multivariate Tobit model. The model provides insights into the relationship between production yield factors in fed cattle production.     

Schumpeter,Keynes and the theory of economic evolution

The contribution deals with a nonlinear dynamic macro-economic model which is used for simulation runs. Conditions and model specifications allowing for global stability are investigated and tested. Based on this some well-known facts as Schumpeterian long-wave phenomena, Keynesian unemployment, productivity growth effects are simulated. Moreover specifying an instrumental variable for state interventions policy issues are also discussed. With this runs it is shown that minor changes of parameters may provide totally different outcomes and different economic developments.     

Effects of decoupling on the mean and variability of output

The influence of inputs on output risk in the context of agriculturalproduction decisions taken by non-risk neutral agents has beenignored by previous research assessing the effects of decoupledincome support payments in a deterministic world or risk-neutralframework. We study the impacts of decoupled payments on inputuse and on output mean and variance. Our theoretical frameworkfor studying agricultural producers' responses to lump sum paymentsallows for both output and price uncertainty and economic agents'risk attitudes. Results show the importance, in a non-risk neutralscenario, of considering the influence that economic agentshave on the stochastic component of output through input use.Our empirical application uses Kansas farm-level data to illustratethe model.     

Local polynomial fitting and spatial price relationships: price transmission in EU pork markets

We study price transmission processes within EU pork marketsafter the implementation of the EU single market in 1993. Wecompare results derived from non-parametric regressions withthose obtained using alternative non-linear threshold models.Both techniques support the hypothesis that prices are transmittedacross spatially separate EU pig markets and provide evidencefor asymmetric price adjustments. They also suggest the existenceof a range of price differentials where equilibrating priceadjustments are less intense. Non-parametric techniques oftensuggest a higher degree of price transmission than that impliedby threshold models.