Scientific foundation,patents, and new product introductions of biotechnology and pharmaceutical firms

Absorptive capacity (ACAP) has long been used in the research of technology firms as an indication of knowledge acquisition. This paper links knowledge input using new product introductions (NPI), to commercial output, addressing one of the key criticisms of research and development expenditures as a measure of an organization's effort. We propose that firms with a strong basic science foundation such as biology and chemistry seek to advance their scientific knowledge in addition to developing and selling innovative products. In contrast, corporations with a more applied focus forego fundamental scientific advancement and concentrate their actions on the development of innovative products. Results from a sample of 487 firms over a 10‐year period indicated that firms with an applied science foundation had greater numbers of NPIs, both breakthrough and innovative, suggesting that a solutions‐based approach had greater value in terms of innovative output. The pursuit of science may build knowledge, but a clear link between increased ACAP and innovative output was not found. Our results also suggest that basic science firms have a positive relationship with both breakthrough and incremental NPIs using merger and acquisition activities. Applied science firms found university alliances useful in generating NPIs.     

School,department, and instructor determinants of teaching methods in undergraduate economics courses

The choice of teaching methods and materials is affected by key school, departmental, and faculty characteristics. We investigate the effects of such characteristics and estimate how much changes in some school and departmental policies affect the probability that economics instructors will use particular teaching methods and materials in four different types of courses. As schools and departments change policies, often in response to changes in resource bases, they may not take into account how that affects faculty teaching and student time investments in coursework. That raises concerns about the relationship between these constraints, policies, and possible decreases in the quality of college graduates.     

How do corporate websites contribute to the information environment? Evidence from the U.S. and Taiwan

We study corporate website disclosures in the U.S. and Taiwan, two countries with different regulatory and market environments, to provide insights into the uniformity of website content and its contribution to the information environment. We observe significant variation in content both within and between the two countries. U.S. firms with higher analyst following tend to create more transparent financial information environments and provide disclosures that are complementary to analysts’ analyses through their corporate websites. They also tend to provide easier access to investor relations (IR) services if analyst coverage is light or nonexistent. However, neither effect is true in Taiwan where the securities analysis industry is less mature. Individual investors have greater ownership share in U.S. firms with more information about IR services on their websites; however, their ownership share drops as financial disclosure on the firm’s website increases, consistent with institutions diluting individual ownership in firms with more transparency in financial reporting. In Taiwan, however, institutions dilute individual ownership share in firms with less financial information and more trading information on their websites. These results are consistent with Barber et al.’s (2009) findings that institutions find Taiwan firms that attract the aggressive, speculative trading of individuals to be extremely profitable investments. Website disclosures in both countries have some effect on the stock-price response to mandatory earnings releases, but their impact is greater in the U.S. Our findings indicate that website disclosures contribute to the information environment and are related to the degree of interest in the firm by sophisticated market participants. Thus, they provide insights to regulators of both countries as they seek to improve disclosure and “level the information playing field.”     

Are Crop Yields Normally Distributed? A Reexamination

This article demonstrates that normality test procedures that include individual detrending of short-term panel data can severely reduce the power of normality tests and strongly bias normality tests in a Type II direction. An alternative error component implicit detrending procedure is suggested that demonstrates higher power for the distributions examined. Both procedures are applied to a large data set with normality of yield residuals being rejected. Assuming normality is shown to reduce potential premium rates for a large number of producers in an existing crop insurance product.     

The effect of relative performance evaluation on earnings management: a game-theoretic approach

Because investors and creditors often compare the financial statements of similar or competing firms when deciding how to allocate their funds, it is likely that a firm's financial well-being depends on how well it performs relative to its rivals. In this paper, we consider the problem of earnings management as a non-cooperative game among several firms, in which each firm seeks a comparison advantage through its financial statement numbers. Our model indicates that firms may exaggerate their earnings in a world driven by multi-firm-comparisons simply because they expect other firms to do so. Thus, very little may be needed for earnings management to emerge in the Nash equilibrium. Our results hold under the following conditions. First, investors and creditors are not able to unravel the earnings management, thus ensuring that some information asymmetry remains. Second, investors and creditors make inter-firm comparisons when assessing firm value. Third, firms care about their own fundamental value as well as the market's perception about firm value. We also show that the equilibrium amount of earnings management depends on the characteristics of the earnings management technique itself and on the proportion of stockholders who are long-term investors in the firm.     

MNE Supply Linkages and the Local SME Sector: Evidence from Yorkshire and Humberside

This paper draws on evidence from a new survey of large MNE-owned manufacturing plants in Yorkshire and Humberside and questions the expectation that MNE plants will stimulate the local SME sector though local sourcing of material and component inputs. MNE plants in Yorkshire and Humberside sourced less than 25 percent of their material and component inputs from the local region and less than two percent from local SMEs. Smaller MNE plants were more likely to source from local SMEs as were MNE plants searching for low technology inputs, in sectors such as mechanical engineering and metal goods. MNE plants in the chemicals and motor vehicle component sectors had few local SME suppliers.     

The effects of communal land resource management on forest conservation in northern and north-eastern Namibia

The area under natural forests has diminished steadily while deforestation has escalated progressively in the past 10 years. Strategic constraints leading to this ever-increasing rate of forest depletion are examined, and relevant policy interventions for overturning them are suggested. Communal ownership and management of natural resources in the northern and north-eastern Namibia are identified as a major underlying constraint on natural resource conservation because the communal system lacks mechanisms for regulating access. Nonetheless, the study acknowledges the optimistic views on communal use and management in other parts of the world. The assumptions about community, the willingness of its members to realise joint environmental or social goals, and their motivation and skills for natural resource management have been challenged. The perception that communities are custodial and non-materialistic in their attitudes to natural resources is rejected. It is concluded that common resources should be brought under more formal management. There should be a state-community/private partnership, with the state performing an advisory function, and implementation at the highest level through the use of state institutions for law enforcement, while the community or the private interest undertakes day-to-day management and law enforcement activities. Maintaining state ownership of natural resources in communal areas and inviting local people to manage them on their own, or mainly on government terms, is not a solution to natural resource degradation.     

An Extreme Value Analysis Of Advanced Age Mortality Data

Abstract

Extreme value theory describes the behavior of random variables at extremely high or low levels. The application of extreme value theory to statistics allows us to fit models to data from the upper tail of a distribution. This paper presents a statistical analysis of advanced age mortality data, using extreme value models to quantify the upper tail of the distribution of human life spans.

Our analysis focuses on mortality data from two sources. Statistics Canada publishes the annual number of deaths in Canada, broken down by angender and age. We use the deaths data from 1949 to 1997 in our analysis. The Japanese Ministry of Health, Labor, and Welfare also publishes detailed annual mortality data, including the 10 oldest reported ages at death in each year. We analyze the Japanese data over the period from 1980 to 2000.

Using the r-largest and peaks-over-threshold approaches to extreme value modeling, we fit generalized extreme value and generalized Pareto distributions to the life span data. Changes in distribution by birth cohort or over time are modeled through the use of covariates. We then evaluate the appropriateness of the fitted models and discuss reasons for their shortcomings. Finally, we use our findings to address the existence of a finite upper bound on the life span distribution and the behavior of the force of mortality at advanced ages.     

Local perspectives on new process technology and employment

This article examines the introduction of new process technology into a local labour market in the late 1980s and relates variations in adoption rates to establishment characteristics. The authors highlight the contrasts in the employment outcomes and training requirements in adopting and non-adopting establishments and find that 'adopters' expect more changes in employment, more skills shortages and have a greater awareness of future training needs.     

Occupational sex segregation in the UK 1979–89: the role of part-time employment

In this article, the pattern of occupational segregation by sex in the UK between 1979 and 1989 is explored through the decomposition of the new Karmel Maclachlan index. Over the upturn, 1983–89, integration of the sexes, as measured by the Composition Effect occurred faster for full-time employment than total (full-time and part-time) employment. On the other hand, integration, in general, proceeded more slowly over the downturn of 1979–83 but total employment showed a more rapid rate of desegregation than full-time employment. Further analysis of the index, based on notional redistributions of part-time and full-time employment, confirms that part-time employment appears to be disproportionately responsible for the overall level of occupational sex segregation and to inhibit its decline over the upswing. These results are attributed to the different labour supply behaviour of males and females and the propensity of employers to treat part-time employees as a flexible reserve. Policies are outlined to counteract both the unequal treatment of part-time workers, particularly women, and the allocative inefficiency caused by the growth of part-time employment, relative to full-time employment.