The hiring of accounting and finance officers from audit firms: how did the market react?

This study investigates the market’s reaction to companies hiring accounting and finance officers directly from their external audit firms—the auditor-to-client hiring practice referred to as the “revolving door.” The Sarbanes-Oxley Act (SOX) eliminated this hiring practice, reflecting concerns that such appointments may impair audit and financial reporting quality. However, it was also argued that companies may have benefited from hiring individuals already familiar with their systems, organization and personnel. To determine the prevalence of this hiring practice and how shareholders viewed these appointments, we examine 3-day cumulative abnormal returns around the announcements of newly appointed accounting and finance officers over the period 1985–2002. We find that the proportion of revolving door hires is relatively low (only 6.1% of all hires in our sample), but that when they did occur the market valued the revolving door appointments more positively than other appointments. Further tests reveal that the positive market reaction to revolving door appointments is driven mainly by smaller companies, and that these appointments are not associated with lower financial reporting quality when assessing subsequent discretionary accruals or the receipt of an Accounting and Auditing Enforcement Release (AAER). Overall, the low frequency of occurrence, investors’ positive perceptions, and the lack of association with deteriorated reporting quality indicate that the SOX restriction on revolving door appointments may have been unnecessary and will do little to protect shareholders.

Effects of violence and brand familiarity on responses to television commercials

An examination of two advertising campaigns from 1996/7 and their potential for breaching the English common law regarding obscenity and blasphemy, despite compliance with the rigorous Advertising Standards Authority's codes of conduct. The two campaigns analysed are illustrated below. One is for the film Larry Flynt and the other is the Church of England's Christmas advertising campaign ‘Bad Hair Day’. Much use is made of the application of existing case law to the problem, with some discussion of those areas of law still left open to interpretation. Because of the nature of the common law no absolute conclusions can be reached on such points, but the reader should have sufficient information to form his/her own judgment for the future.     

Market segments based on the dominant movement patterns of tourists

This paper presents an innovative method for tourist market segmentation-based on dominant movement patterns of tourists; that is, the travel sequences or patterns used by tourists most frequently. There were three steps to achieve this goal. In the first step, general log-linear models were adopted to identify the dominant movement patterns, while the second step was to discover the characteristics of the groups of tourists who travelled with these patterns. The Expectation–Maximisation algorithm was then used to partition tourist segments in terms of socio-demographic and travel behavioural variables. The third step was to select target markets based upon the earlier analysis. These methods were applied to a sample of tourists, over the period of a week, on Phillip Island, Victoria, Australia. A significant outcome of this research is that it will assist tourism organisations to identify tourism market segments and develop better tour packages and more efficient marketing strategies aligned to the characteristics of the tourists.     

Comparative Computer Approaches to Multi-Outlet Retail Site Location Decisions

This article explores alternative changes that could take place in the technology, methodology, and most importantly, the practice of locational decision-making, and is part of a larger scale project aimed at investigating the practical value of artificial intelligence (AI) techniques for strategic decision-making. The research involves comparing the effectiveness of a number of AI paradigms and modelling devices, both with each other and with more conventional computer models.     

The specificity of manufacturing in Marx's economic thought

Abstract

This article examines Marx's approach to manufacturing and the extent to which manufacturing could be considered to have a special place in Marx's economic thought, especially in relation to accumulation and growth. The important ‘progressive’ features of manufacturing that can be found in Marx's writings and which are discussed here include: division of labour; socialisation of labour; mechanisation; increasing returns to scale; learning-by-doing; technological advancement; and overall, superior potential for cumulative productivity increases. These insights anticipate some of the thinking around the specificity of manufacturing found in twentieth-century structuralist development economics and some heterodox schools of thought such as Kaldorian approaches. This article suggests an interpretation of Marx as having a two-dimensional conceptualisation of activity specificity, with not only sectoral but also ‘technological–organisational’ dimensions, where these two dimensions are not fully independent of each other.     

The Labour Market in Association Football: Who Gets Transferred and for How Much?

This paper employs data for the 1993–94 season to estimate a hedonic equation representing the determination of the price structure in the transfer market for professional players in the English football leagues. Player transfer proneness is modelled, and the Heckman two-step procedure is employed to take account of selection bias. The paper identifies those player attributes which affect either the probability of transfer or the transfer fee and evaluates the relative influence of such variables.     

Earnings inequality and unemployment in South Africa

Unemployment and earnings inequality have moved together remarkably closely in South Africa in recent years. This article explores the relationship between unemployment and earnings inequality in South Africa, investigating the extent to which changes in unemployment can account for changes in earnings inequality. Static and dynamic decompositions of earnings inequality by employment status reveal the centrality of unemployment in accounting for the both level and trend of earnings inequality. The distribution of employment in the formal and informal sectors is found to be of lesser importance in explaining earnings inequality, as is wage dispersion within each of these categories. The findings point to the central importance of reducing unemployment in South Africa if the extremely high levels of inequality are to be reduced.