Excess Returns to R&D-Intensive Firms

Recent studies indicate that both current R&D investment levels and current or recent changes in R&D investment are positively associated with subsequent excess (risk-adjusted) stock returns. The tentative explanation offered for these results is that shares of R&D-intensive firms are mispriced because investors fail to see through earnings distortions caused by conservative accounting for R&D costs. However, an alternative explanation is that conventional controls for risk do not completely capture the riskiness of R&D-intensive firms, causing measured excess returns for these firms to be biased upward. This study provides evidence useful for distinguishing between the mispricing and risk explanations for R&D-related excess returns. Overall, our empirical results suggest that the positive association between R&D investment levels and excess returns is more likely to result from failure to control adequately for risk than from mispricing. On the other hand, our results do not rule out the possibility of a second source of excess returns that are due to mispricing and that are associated with changes in the level of R&D investment.     

Post-stabilization inflation dynamics in Slovenia

This paper investigates the inflation process in Slovenia through an examination of some commonly used determinants of inflation in transition economies. Granger causality tests and an analysis of unrestricted VAR models suggest a strong linkage between both growth in broader monetary aggregates and changes in the tolar-deutsche mark exchange rate on retail price inflation. While the growth in wages affects inflation, it appears that both changes in the exchange rate and growth in monetary aggregates provide the initial impulse. A discussion of the present money-exchange rate policy framework and its influence on inflation is also provided.     

Inside the high-tech black box: A critique of technology entrepreneurship policy

Promoting new technology-based firms is the cornerstone of technology entrepreneurship policies in advanced industrial economies. Drawing on quantitative and qualitative empirical evidence from the UK, this paper provides a critique of these policy frameworks. The aggregate analysis shows that vast majority of these firms are micro firms, a small minority of whom grow rapidly. The paper then highlights the incongruence between the nature of these firms and the public sector technology policies designed to support them. The qualitative data reveals that typically these firms are corporate rather than university spin-offs; most do not undertake large amounts of in-house R&D; most do not have protected IP; and only a small minority are VC-backed. Most derive their main competitive advantages from open innovation sources such as relationships with end-users and customers. The paper offers suggestions for how policy could be recalibrated to better reflect the requirements of local entrepreneurial actors and the types of support required by most high-tech SMEs.     

Complex home care: part III--economic impact on family caregiver quality of life and patients' clinical outcomes

Family caregivers perform a significant role in the care of patients with chronic illnesses and prescribed life-long complex home care treatments. Both quantitative and qualitative data from this study suggest the mental health burdens and financial costs of home parenteral nutrition (HPN) caregiving are extensive. In this study, the variability in HPN out-of-pocket expenses and the uncertainty of incurring such extensive costs created additional financial worries within already stressed families. Based on these data, interventions to improve caregivers' sleepiness, depression, and physical health could be hypothesized to improve both patients' and caregivers' quality of life and reduce the frequency of patients' catheter-related infections. These specific nursing interventions also could improve caregiver health and subsequently reduce the costs of caregivers' health care.     

OTHER-REGARDING UZAWA PREFERENCES AND LIVING STANDARD CATCH-UP

This paper provides a new rationale for Uzawa preferences based on social choice; instead of positing that poor people are more patient because they are poor, it posits that poor people should be more patient if they wish their living standards to catch up with richer people. To provide a setting for this new rationale, the present paper studies the socially optimal choice of living standards over time by social planners for countries that, from low levels of total factor productivity (TFP), experience a gradual catch-up of their TFP level with that of the leader country. In the TFP catch-up scenario, the socially optimal choice of consumption and saving based on time additive preferences leads to no catch-up of living standards. To generate living standard catch-up we propose other-regarding Uzawa preferences, in which the rate of time preference is influenced by the gap in living standards between follower country and leader country. This other-regarding specification is consistent with recent findings emphasized in behavioural economics. The other-regarding Uzawa preferences form is illustrated quantitatively by simulating a model of the world economy.     

Changing Skill Intensity in Australian Industry

This article examines changes in industry skill scores for Australia for the period 1991 to 2001 using indices of cognitive skill for industry based on Census employment data. Changes in mean industry cognitive skill levels are analysed, as are the relative contributions of changes to the occupational structure within industry and changes to the industry structure of employment. The main findings are that the drivers of skill change differed substantially between the two Census periods. Prior to 1996 the majority of the change was due to shifts towards industries with a more highly skilled workforce. After 1996 changes in the economy‐wide skill level were dominated by within‐industry changes in occupational composition. This coincided with a sharp pickup in the rate of capital expenditure on information and communication technologies. The increasing use of part‐time employment overall had a deskilling effect.     

The politics of pollution: party regimes and air quality in Canada

Abstract. Environmental concerns often figure prominently in opinion polls. But do election outcomes actually affect the environment? I test the influence of the party in power on urban air pollution in 13 Canadian cities. The government's political stripe is not reliably associated with positive or negative effects on air pollution. Provincial parties on both the right and the left are associated with elevated levels of some air contaminants. Federal effects also go in contrasting directions. Overall it appears a change in government is unlikely to be a reliable predictor of changes in air pollution. JEL classification: Q51, Q58, D78     

New unions in the UK: the vanguard or the rearguard of the union movement?

Between January 1999 and March 2010, 34 trade unions entered the Certification Officer list or schedule in the UK. This article reports on a survey of those unions, discussing the extent to which they represent new forms of unionism and the possible implications for union revitalisation.     

Habermas and information systems research: New directions

Habermas' critical social theory has proven to be an important and useful lens in information systems research, especially in understanding the communicative potential of information systems and in conceiving alternative approaches to information systems development. As communication and engagement have become increasingly important in the context of today's information systems, his work has perhaps even greater applicability. However, concerns that it is too utopian to apply in organizational settings have led to skepticism regarding Habermas' work. Participation by all, the “ideal speech situation” and the consensus ideal are each Habermasian requirements that have sparked this criticism.However, Habermas' work has continued to grow and evolve since the Theory of Communicative Action, the basis of much IS research drawing on his work. His contributions in discourse ethics (1990, 1993) and deliberative democracy (1998) have offered us new and important theory, and have brought to light Habermas' own clarification and evolution of his original ideas.The intent of this paper is to reopen a communicative dialog about Habermas' work. After summarizing his critical social theory, we turn to addressing our two main objectives: first, to demonstrate that evolutions in Habermasian thought have renewed its empirical possibilities and, second, to show that this new understanding constructively informs future IS research. As an illustration, we sketch out the conditions for a Habermasian-inspired requirements process and show their application to a well-studied IS development model, ETHICS (Mumford, 1983). We conclude by suggesting that Habermas' theoretical ideas can no longer be dismissed as naive, but as a constant guide to critical action — as a reference point for opening up new possibilities for communicative action in IS research and activity.