Simple formulas for standard errors that cluster by both firm and time

When estimating finance panel regressions, it is common practice to adjust standard errors for correlation either across firms or across time. These procedures are valid only if the residuals are correlated either across time or across firms, but not across both. This paper shows that it is very easy to calculate standard errors that are robust to simultaneous correlation along two dimensions, such as firms and time. The covariance estimator is equal to the estimator that clusters by firm, plus the estimator that clusters by time, minus the usual heteroskedasticity-robust ordinary least squares (OLS) covariance matrix. Any statistical package with a clustering command can be used to easily calculate these standard errors.     

Preference Transaction Avoidance in Ghana: Has the Liquidator's burden changed?

Financially distressed companies sometimes conceive plans to pay off certain creditors before petitioning the Court for winding up. This last‐minute payment referred to as a preference transaction puts the preferred creditor in a better position than the rest of the company's creditors because the distressed company may not have enough assets to satisfy everyone. Insolvency law frowns on such last‐minute transactions and provides the Liquidator with the power to avoid these transactions, to restore the asset to the company and distribute it to all the creditors. Preference avoidance forms an integral part of the corporate insolvency law in Ghana. These principles founded upon the common law of England are now provided for under the Bodies Corporate (Official) Liquidation Act 1963 (Act 180) of Ghana. This essay discusses preference avoidance under Ghanaian law. It also examines a recent judicial application of the law and finally suggest avenues for reform.     

What drives stock returns in Japan?

Financial Markets and Portfolio Management - We investigate systematic factors driving stock returns and stock return predictability in Japan. We find that dividend yield, cash-flow yield, and...     

Financial Policy in Practice: Benchmarking Financial Sector Strategies Around the World

Policy makers use financial sector strategies to formulate a holistic policy for the national financial system. This article examines and rates financial sector strategies around the world on how well they formulate development targets, arrangements for systemic risk management, and implementing plans. The strategies are also rated on whether they consider policy trade-offs between financial development and systemic risk management. The rated strategies are then benchmarked against a range of country characteristics. The analysis finds that the scope and quality of national strategies for the financial sector are systematically influenced by several country characteristics. Interestingly, policy trade-offs, particularly between financial development and systemic risk management, are not adequately considered in the strategies.     

Comparison of Japanese and North American Runners of the Ideal Marathon Competition Destination

The Honolulu Marathon has a significant economic impact on the state of Hawaii's economy. Some 25,000 runners registered for the 2007 Honolulu Marathon, making it the sixth largest in the world as well as the third largest marathon in the USA, trailing only New York (34,729) and Chicago (32,332). Of the 25,000 Honolulu Marathon runners, over 17,000 were out-of-state runners. This study asked out-of-state participants in the marathon to assess the attractiveness of Honolulu and its marathon compared with that of an ideal marathon. Data used in this study were collected by distributing a research instrument to marathon participants. The instrument consisted of 30 items to represent the destinational attributes for an ideal marathon location city based on an extensive review of the literature on the selection of sport tourism event destinations. Over 473 surveys were collected for this study. Examination and analysis of these results will be very helpful in determining what the marathon runners believe are the ideal attributes of a city to host a marathon. This information will provide marketing guidance to the organizers of the Honolulu Marathon based on a segmented analysis of participants' perceptions of the event as well as give assistance to community and event organizations interested in attracting and marketing similar events.     

ETHICS AND THE MARKET ECONOMY: INSIGHTS FROM CATHOLIC MORAL THEOLOGY

The ethical dimension of market solutions to problems is often neglected by their proponents. This article examines the market from the standpoint of orthodox Roman Catholic moral theology. It illustrates how Catholic theologians have contributed to thinking about the market, draws attention to Catholicism's positive assessment of entrepreneurship, and outlines paths for future Catholic reflection on the market.     

电子材料更加智能

旧材料有新的使用方法和应用空间 6年前,如果你告诉科学家们驱动电子工业产生革命性进步的原材料将主要是沙子时,他们一定会无情地嘲笑你。然而一个不争的事实是,如果没有硅．陶瓷、塑     

The effects of unions on research and development: an empirical analysis using multi-year data

A link between unionization and research and development rates (research and development expenditures divided by output) is tested for in thirteen aggregate Canadian industries. A balanced panel of thirteen industries covering 1968 to 1986 reveals a negative relationship between industry unionization rates and research and development. The results hold when a number of techniques are used to control for unobserved industry heterogeneity and non-linear responses to unionization. In an industry that moves from the 25th to the 75th percentile of unionization, research and development is predicted to fall by about 40 per cent. JEL Classification: J51
Les effets des syndicats sur l'intensité de la recherche et développement: une analyse empirique sur plusieurs années . Ce mémoire examine le lien entre le degré de syndicalisation et les taux de dépenses en recherche et développement en proportion de la production dans treize industries canadiennes. Pour ces treize secteurs industriels, entre 1968 et 1986, il semble qu'il y ait une relation négative entre les taux de syndicalisation et les taux de dépenses en recherche et développement. Ces résultats sont robustesmême quand on utilise des techniques pour tenir compte de l'hétérogéneité des secteurs et des réponses non linéaires à la syndicalisation. Pour une industrie qui voit son taux de syndicalisation passer du 25e au 75e percentile, on prévoit une chute de 40% dans la recherche et développement.