A Rude Awakening: Internet Shakeout in 2000

This study explores various value-drivers of business-to-consumer (B2C) Internet companies' share prices both before and after the market correction in the spring of 2000. Although many market observers had predicted that the shakeout would eventually occur (e.g., Perkins and Perkins 1999), the ultimate and previously unanswered challenge lay identifying which stocks would fall and which ones would survive the shakeout. We develop an empirical valuation model and provide evidence that the Internet stocks that this model suggests were relatively over-valued prior to the Internet stock market correction experienced relatively larger drops in their price-to-sales ratios when the shakeout occurred. This result is robust to the inclusion of competing explanatory variables suggested by the economics literature related to industry rationalizations.We examine the ability of a valuation model comprised of both financial (accounting) variables and nonfinancial web traffic metrics to explain Internet companies' market values during each of 1999 and 2000. Our findings suggest that the reach and stickiness web traffic performance measures are value-relevant to the share prices of Internet companies in each of 1999 and 2000. Our findings of significance for the year 2000 contradict the recent claims of some analysts that web traffic measures are no longer important. We also explore the valuation role of our proxy for B2C companies' current rate of cash burn and find that this proxy is a significant value-driver in each of 1999 and 2000, but with differential valuation implications for each period. Our results suggest that the market was favorably disposed towards Internet companies' aggressive cash expenditures in 1999, but appeared to adopt a more critical view of Internet companies' cash burn rates in 2000. Our results further suggest that investors adopted a more skeptical attitude towards expenditures on intangible investments as the Internet sector began to mature. We find that investors appear to implicitly capitalize product development (R&D) and advertising expenses (customer acquisition costs) during the earlier period when the market was more optimistic about the prospects of B2C companies. However, only product development costs are implicitly capitalized into value, on average, subsequent to the shakeout in the spring of 2000. Finally, we provide statistical evidence to support the conjecture that different parameter vectors characterize the estimated market valuation models for each of 1999 and 2000. Overall, our study provides a preliminary view of the shakeout and maturation of one of the most important New Economy industries to emerge to date–the Internet.     

Food versus fuel: examining tradeoffs in the allocation of biomass energy sources to domestic and productive uses in Ethiopia

Rural households in Ethiopia have limited options to meet their domestic energy needs because they lack access to modern fuels and technologies. Domestic use of certain fuel sources, such as cow dung, can hinder agricultural outcomes and productivity. This article explores the tradeoffs between domestic and productive uses of biomass energy sources in the Nile Basin of Ethiopia using a nonseparable farm household model where labor allocation to energy collection and farming are analyzed simultaneously. We estimate a system of five structural equations using three‐stage least squares and find that the use of dung as a domestic fuel source has negative implications for the value of harvested crops, while use of on‐farm fuelwood is associated with increased value of agricultural output. On‐farm production of fuelwood appears to increase the value of crop output and provide labor savings, by making fuelwood collection more convenient for households. Policy interventions to support the expansion of agroforestry and increase access to new energy‐efficient technologies are needed to ensure that agricultural productivity can be both increased and sustained.     

The effects of repeated soil wetting and drying on lowland rice yield with system of Rice Intensification (SRI) methods

In lowland rice farming, water management is the most important practice that determines the productivity of other inputs, e.g. nutrients, herbicides, pesticides, farm machinery, microbial activity, mineralization rates. Deliberate flooding or poor drainage that keeps soil saturated is detrimental to crops and degrades soil quality. This study evaluated whether rice grain yield could be increased relative to continuous flooding by using the management practices of the System of Rice Intensification (SRI). The effects of SRI's repeated wetting and drying cycles plus different plant populations were investigated at Sapu Research Station in The Gambia, on an alluvial soil between 2000 and 2002. The water management practices proposed for SRI were found to be beneficial to rice growth. At 20 cm spacing, average grain yield with SRI practice was 7.3 t ha^?1 compared with 2.5 t ha^?1 under continuous flooding. At 30 cm spacing SRI practice yielded 6.6 t ha^?1, while under continuous flooding, grain yield was only 1.7 t ha^?1. Even wider spacing did not produce higher yield. At 40 cm spacing, SRI management gave 4.7 t ha^?1, while continuous flooding yielded 1.3 t ha^?1. Thus overall, SRI practices gave better results than continuous flooding. This was probably as a result of increased nutrient availability and superior growing conditions which enhanced physiological development and grain yield. Rewetting dry soil reportedly facilitates nitrogen mineralization. The phenomenon of having a flush of nitrogen mineralization occurring after rewetting dry soil was first reported by Birch in 1958. This intensive pathway of nitrogen mineralization and nitrogen availability has potential to increase lowland rice yields in ways consistent with sustainable agricultural production.     

Greenhouse gas and groundwater recharge abatement benefits of tree crops in south-western Australian farming systems

The indirect benefits of a commercial tree crop for greenhouse gas and groundwater recharge abatement are analysed. Oil mallees are introduced into a whole-farm linear programming model as a source of income, an offset to greenhouse gas emissions from the mixed sheep and cropping enterprises and as a source of groundwater recharge abatement. The profitability of oil mallees is found to be very sensitive to the discount rate, yield and price assumptions and the relative profitability of other farm enterprises (especially the wool enterprise). Under standard assumptions where oil mallees are profitable, the trees significantly reduced greenhouse gas emissions and groundwater recharge and the farm remains profitable. If farm-level policies are introduced for greenhouse gas abatement, without tree crops or some other technological change, the current farming systems would fail and be replaced by alternative land uses.     

Non‐market valuation: usage and impacts in environmental policy and management in Australia

An extensive literature exists on environmental nonmarket valuation research. It appears that results from these studies should be useful inputs to decision‐making about environmental policy or management. Here, we investigate the extent to which this occurs in practice in Australian environmental management bodies. Nonmarket valuation experts were surveyed about their studies that they believed to have influenced policy. Then, decision‐makers in environmental bodies were interviewed about the level of influence nonmarket valuation has had on their decisions. We find that researchers' perceptions of the influence that nonmarket valuation has on decision‐making are overly optimistic. Interviews with decision‐makers suggest that nonmarket valuation is little used in decision‐making. Indeed, the majority of them are unfamiliar with nonmarket valuation techniques. Nevertheless, once the concept was explained to them, many decision‐makers believed it could benefit environmental policy. Researchers' perceptions of the reasons for low usage of nonmarket valuation are largely inaccurate. We suggest a range of strategies that economists can use to promote the use of nonmarket valuation in environmental policy and management decisions, including ways to improve communication and engagement with decision‐makers, and strategies to increase the capacity for decision‐makers to use nonmarket valuation results.     

Symposium Introduction

This symposium's focus is on connections that might be forged between leadership theory and practice, leadership development, and the theory and practice of design. Our intent in exploring the narratives of and literature about designers is to understand and appreciate how the design leadership crucible might forge more effective research approaches, generative pedagogical experience, and produce more effective leaders who can address adaptive problems. The guest editors and authors for the symposium are Elizabeth Johnston and Anthony Kortens. The symposium includes an introduction to the topic of design using current literature, incorporating a report on a series of conversations with two individuals who have enjoyed long and successful careers in design and leadership. These individuals, Michael Schonhofen and Ben Shaw, were contributing partners who shared their experiences as designers and leaders, as well as tirelessly reviewed the symposium documents and offered insights, interpretations, and suggestions.     

Building IASB Research Capacity: A Commentary

This Commentary summarizes and remarks on several discussions of the link between academic accounting research and financial reporting standard setting. Our Commentary is prompted by references to building the International Accounting Standards Board's (IASB) research capacity, included in three due process documents: Report of the Trustees' Strategy Review, IFRSs as the Global Standard: Setting a Strategy for the Foundation's Second Decade; Agenda Consultation 2011; and Feedback Statement: Agenda Consultation 2011. Pursuant to its mission, the International Association for Accounting Education and Research (IAAER) has undertaken activities, including hosting two roundtables, related to the link between academic accounting research (and researchers) and the IASB's standard‐setting activities. We discuss the main issues addressed and themes emerging from the IAAER roundtables including whether academic research is relevant to standard setters; types of academic research, and areas of inquiry, that would be most relevant to accounting standard setters; perceptions on why academic research is not more useful to standard setters and challenges to academic researcher's engagement in standard setting. We summarize the IAAER Committee response to the consultation paper, Status of Trustees' Strategy Review. Finally, we identify areas where we believe academia can assist in building a dedicated research capacity at the IASB and note specific areas where future academic research is needed to inform the IASB.     

Generalization of Wilcoxon Statistic for the Case of k Samples.

Doel van het volgende artikel is om aan te tonen, hoe verschillende bekende ranginvariante k-steekproeven toetsen kunnen worden voortgebracht volgens één zelfdeprincipe. Dit principe is als volgt. Begin met de statistischegrootheden U_ij en U_0j van WILCOXON te construeren (U_ij uit de i-de enj-desteekproeven; U_0j uit de j-de steekproefen alle andere tezamen; i, j = 1k). Laat vervolgens het symbool T_ij de aanduiding zijn voor de genormaliseerde U_ij en T_0j voor de genormali-seerde U_0j. Beschouw tenslotte de absolute waardeofhetkwadraatvaneenzodanige lineaire functie van de T_ij of de T_0j, dat deze absolute waarde ofditkwadraateen zo groot mogelijke waarde heeft (waarbij deze maximalisering plaats vindt over een geschikte verzameling van coëfficienten-combinaties). Als resultaat verkrijgt men dan de toetsingsgrootheden van TERPSTRA, STEEL, KRUSKAL-WALLIS, en een nieuwe toetsingsgrootheid.     

PATENT ENFORCEMENT: A REVIEW OF THE LITERATURE

Without the confidence that patent rights can be enforced quickly and efficiently, when needed, the patent system will not stimulate innovation. For this reason, governments, academics, international institutions and the private sector have poured significant resources into gathering and analysing statistics on patent enforcement over the last two decades. This paper reviews these studies and finds that while infringement is relatively common, much enforcement occurs informally and less than 1–2% of patents incur litigation. New strategic uses of the enforcement system, especially by nonpracticing entities, are the major emerging enforcement issue, especially in the United States. While the old problem of litigation costs attracts the lion's share of empirical attention, it has produced remarkably few solutions to date.