Design limits and dynamic policy analysis

This paper characterizes the frequency domain properties of feedback control rules in linear systems in order to better understand how different policies affect outcomes frequency by frequency. We are especially concerned in understanding how reductions of variance at some frequencies induce increases in variance at others. Tradeoffs of this type are known in the control literature as design limits. Design limits are important in understanding the full range of effects of macroeconomic stabilization policies. We extend existing results to account for discrete time bivariate systems with rational expectations. Application is made to the evaluation of monetary policy rules.     

Social Identity Development and the Situation of Scientists and Engineers as New Leaders

The current study examined the retrospective experience of scientists and engineers as they became new unit leaders in science and engineering firms. The goal of the study was to propose a theory that would lead to a better understanding of how scientists and engineers can be successful in their evolution into new leaders. The evolution was considered in the context of Robledo, Peterson, and Mumford's (2012) 3‐Vectors Model to appreciate the situation in which new leaders in scientific and engineering firms find themselves. The evolution was then considered in the perspective of Social Identity Theory to understand the relational development of the scientist or engineer as a new leader. The theory that emerged was that without a sound understanding of both the situation and adaptation of a new sociotechnical identity, achieving success in the leadership role is, at best, uncertain. Identity development and situational understanding are both necessary to facilitate and expedite the transition of scientists and engineers into the new leadership role. The transition from staff‐level scientist to leader can be made more productive through individual and organizational action espoused herein. The implications reveal many aspects of importance for organizations, individuals, researchers, and educators in Science, Technology, Engineering, and Math (STEM) and similar technical disciplines.     

The Visual Representation of Border Tourism: Demilitarized Zone (DMZ) and Dokdo in South Korea

The demilitarized zone (DMZ) and Dokdo mark South Korea borders with North Korea and Japan respectively. Each borderland is a socially constructed symbolic cultural landscape shaped in part by tourism. In this study, a sample of 2202 online images was inspected using content‐semiotic analysis to understand how visual representation of border tourism works. It was found that visitors via social media and government censorship play major roles in constructing representations of (i) alienated borders with iconic war heritage attractions at the DMZ and (ii) an alienated and isolated Dokdo. Both borders highlight patriotic/nationalistic ‘flagging’ and the gaze across. Copyright © 2013 John Wiley & Sons, Ltd.     

Facebook posting activity and the selective amplification of earnings disclosures

This study examines the determinants of Facebook activity levels with a particular focus on Facebook activity around earnings announcements. Facebook activity is generally higher for firms with higher levels of analyst following, individual ownership, and trading volume, indicating that it is responsive to investor demand effects. Facebook activity also increases around earnings announcements, with the increase being largely attributable to posts containing earnings news. In general, therefore, firms use Facebook posts to amplify earnings news. Such activity is selective, however; it is lower for firms with high levels of information asymmetry, for firms reporting earnings that exactly meet the consensus analyst forecast amount, and when the earnings news is negative but the accompanying price movement is positive. Hence, firms appear to use Facebook to manage the level of attention paid to earnings news.     

Relative Effects of IFRS Adoption and IFRS Convergence on Financial Statement Comparability

One of the primary objectives of both adoption of IFRS and convergence between IFRS and U.S. GAAP is to increase financial statement comparability. Using a unique setting in Germany, we compare the effectiveness of these two approaches in achieving this desired outcome. Our empirical tests show that both adoption and convergence lead to an increase in comparability after the new enforcement regulation in 2005. However, difference‐in‐differences tests show that adoption does not lead to a significant incremental increase in comparability beyond convergence. The findings of this study should be of interest to regulators and standard setters as they assess alternative methods of aligning domestic standards with IFRS.     

Valuation and classification of company issued cash and share-puts

This paper examines whether investors’ valuations of cash and share-put warrants are influenced by their potential differential effect on firm solvency. It is motivated by the enactment of SFAS 150, which requires that all contingent put warrant obligations be classified as balance sheet liabilities regardless of put type. Consistent with the critics of SFAS150, we show that market participants differentially value cash and share-puts based on their solvency characteristics beyond the firm’s recorded assets and liabilities. Our results add to existing capital structure literature by suggesting that complex financial instruments (such as cash and share-puts) be reported separately from each other on a firm’s balance sheet.