Real earnings management around CEO turnovers

Following CEO turnovers, US firms adjust real business activities to manage earnings downwards (REM bath). This effect is most pronounced in firms with low levels of institutional ownership. REM baths early in CEOs’ tenure can be confounded with legitimate adjustments to business activities. However, we show that they are not accompanied by increases in R&D or capital expenses, nor are they explained by restructuring expenses. CEOs with short tenure record more negative REM measures in their first year of tenure, when compared with CEOs with long tenure.     

Trade pattern reversals in time-phased Ricardian systems and intertemporal efficiency

A timeless Ricardian system specializes geographically to minimize localized labor, just as a timeless neoclassical system specializes to minimize primary factor totals (in a vectoral sense). The steady states of a time-phased system, for zero interest or profit rate, similarly specialize to minimize primary factors. By contrast, when there is a positive interest rate, the observed steady states do not minimize primary totals. Thus, positive profit rates make a system superficially appear inefficient, much like systems with distorting taxes. However, from an intertemporal efficiency standpoint, which goes beyond steady states, it is shown that so long as the profit rates are geographically equal, the observed steady state is Pareto efficient, not Pareto inefficient. In contrast to the Emmanuel view that profit equalization leads to ‘unequal exchange’ and deadweight loss from trade, deadweight loss is shown to come from the absence of international lending markets. The present paper illustrates these truths, works out implications for factor-price equalization or nonequalization, gives conditions of trade equilibrium for time-phased systems, shows their multiplicity, and the possible Metcalfe-Steedman ‘instability’ from the standpoint of the global correspondence principle. A factor-price frontier is deduced, which gives the negative interest rate as a quasi-concave function of the real returns (in terms of any good) of the primary factors, and its well-behaved quantities dual is contrasted with the actual ill-behaved steady-state quantity relation.     

Social identity and signalling success factors in online crowdfunding

Online crowdfunding means relying on the Internet to seek financial support from the general public. In this paper, we examine success factors in the social capital networks of the top 5000 most funded projects in Kickstarter.com at the time of this study. We first look at how fundraisers and backers identify themselves with the projects they support in their own social networks. This is modelled using Facebook friends and Facebook shares, respectively, guided by social identity theory. Secondly, we use signalling theory to investigate crowdfunding success based on backers’ and fundraisers’ ability to engage in a forum, modelled using the number of comments between them, or with unilateral signals using the number of updates from the fundraiser. This study suggests that funders and backers who identify themselves with the projects in their own social networks are associated with greater pledge/backer ratio. We also find that projects where the fundraiser and its backers exchange more signals in a joint forum, but not signals delivered unilaterally by the fundraiser, have a greater pledge/backer ratio. These findings, based on a scalable quantitative study, highlight the importance of a multi-theory approach, advance social identity theory and signalling theory in the context of crowdfunding, and could be applied to online and normal entrepreneurship environments alike.     

The Chinese steel industry in transition: industry perspective on innovation policy

There is little empirical research on how the Chinese Government should function in innovation management, particularly during its critical period of economic transition. This study explores and investigates the Chinese Government's innovation management structure, procedures and functions by interviewing government R&D management officials and industrial innovation managers and users. Questionnaires were distributed to industrial innovation practitioners and users of new steel products to solicit their perspectives on innovation policy issues. Findings indicate that current government innovation management procedures have received a tepid welcome from the industries. While there was general agreement that the government should maintain some involvement in industrial innovation, opinions regarding just how the government should intervene differed significantly between producers and users. Producers generally favoured more indirect government involvement. Policy implications are discussed.     

Understanding urban tourism: London in the early 1990s

Using London as an example this paper demonstrates that the idea of tourism as ‘pleasure and recreation’ is wholly inadequate for an understanding of the published evidence on tourism in major cities. In the UK this results directly from the definition adopted by the main statistical sources such that tourists become travellers, irrespective of purpose, who stay overnight at their destination. In so doing the paper highlights two areas for future research, the growing trend in short‐distance tourism and the increasing importance of visiting friends and relatives. Copyright © 2001 John Wiley & Sons, Ltd.     

UK consumer attitudes concerning environmental issues impacting the agrifood industry

Consumer concern for the environment has been on the increase in recent years. This concern has created many opportunities, as well as threats, for all businesses but particularly for those involved in the agrifood industry. These concerns can and do change considerably in a short space of time so it is essential that consumer surveys are conducted on a frequent basis to monitor these changes. This paper presents the findings of one such survey based on the findings of a consumer attitude study concerning environmental issues relating to the agrifood industry. The data is subjected to a cluster analysis in order to segment the respondents and make the findings more meaningful. The paper concludes that there are four groups of consumers (the ‘angries’; the ‘not‐quite‐so‐angries’, the ‘anxious‐but‐amiables’ and the ‘Panglossians’) and that while a number of subjects constitute issues for consumers the one that unites most consumers, and which will probably have the greatest impact on the environment, is genetic modification. Consumer resistance to genetic modification is found to be high and it is suggested that as a result farmers will continue to employ traditional farming practices in the future. Copyright © 2000 John Wiley & Sons, Ltd. and ERP Environment.     

Why members stay in or leave an R&D consortium: performance and conditions of membership as determinants of continuity

This paper jointly examines performance and conditions surrounding membership as determinants of the decision to stay or leave an R&D consortium. Hypotheses were developed for performance and, by drawing from power dependence and transaction cost theories, for conditions surrounding membership. Analysis of survey questionnaire data from 184 member organizations of U.S.-based R&D consortia indicates that performance and the conditions of knowledge-related involvement, network ties, learning, and alternatives are related to the decision to stay in or leave. These results provide limited support for power dependence but are more consistent with transaction cost theory. Subsequent analyses revealed an interaction between performance and membership conditions, suggesting performance leads to the conditions of membership, and that the continuity decision for a poorly performing consortium differs from that for one performing well. © 1997 John Wiley & Sons, Ltd.