Policy Implications of the Trade and Wages Debate

This paper examines the choice of policies to redistribute income in response to an increase in inequality caused by a rise in the differential wage paid to skilled labor compared with unskilled labor. The main issue is whether the appropriate policy response depends on whether the cause of the increased skill differential is 'trade'—increased competition with low-skilled workers abroad—or technological change. The analysis is conducted within the context of a two-sector Heckscher–Ohlin trade model augmented to allow endogenous determination of the level of skill.     

Valuation Effects of Greek Stock Dividend Distributions

This study analyses the price reaction to stock dividend distributions by firms listed on the Athens Stock Exchange on both the announcement and the ex‐dividend day. It also analyses earnings per share, dividends per share and trading volume in the pre‐ and post‐announcement periods. The findings show statistically insignificant abnormal returns on both the announcement and the ex‐dividend day. The analysis does not reveal any significant change in earnings per share and dividends per share, but it does reveal a significant decline in the market‐adjusted trading volume in the post dividend period. The findings, based on a different institutional environment, expand the empirical evidence on the value effects of stock dividends.     

The Predictive Ability of Direct Method Cash Flow Information

This research examines the predictive ability of direct method cash flow information for firms that use the direct method in their cash flow statements. We use cross sectional and pooled time series regressions to predict operating cash flow data and assess relative predictive ability. Principal findings are: (1) past period direct method cash flow data predict future operating cash flow better than indirect method cash flow data; (2) past period direct method gross operating cash flows predict future net operating cash flow better than past period net operating cash flow; (3) measurement error exists in estimates of direct method operating cash flows from other financial statement data; (4) past operating cash flows predict future operating cash flows better than earnings and accruals.     

Trade and Labor Standards

The purpose of our paper is to explore the different views of the issues of international labor standards and to explore the available options for addressing these issues. We conclude that: (1) there is no convincing case on theoretical or empirical grounds for incorporating labor standards into the WTO and into U.S. trade agreements; (2) the surest way to improve labor standards is for the United States and other industrialized countries to maintain open markets and to encourage the economic growth of their developing country trading partners; and (3) steps should be taken to support the activities of the International Labour Organization (ILO) to provide inducements and technical assistance to help developing countries raise their labor standards.     

Staged Financing: An Agency Perspective

This paper investigates the structure of outside investment in a profitable entrepreneurial venture. Though efficient, financing the venture up front may be infeasible because the entrepreneur cannot commit to not renegotiate down the outside investor's claim once she's sunk her investment. Staging the investment over time helps to mitigate this commitment problem. The early rounds of investment create collateral that support the later rounds. We characterize the optimal staged investment path and show how it is affected by various features of the venture. The predictions of the model are consistent with observations on staged financing in venture capital.     

Analysis of consumers' willingness to pay for new food prepared from cowpea flour

Consumers' willingness to pay for cowpea products was analysed by a multi-ordered response model. The analysis indicated that sociodemographic factors are weakly linked to consumers' willingness to pay while product characteristics are strongly linked. Marketing promotion is possible. Thus, akara products, made from cowpea paste, have potential for extending the utilization of cowpeas.