Frequent issuers’ influence on long-run post-issuance returns

Prior studies conclude that firms’ equity underperforms following many individual sorts of external financing. These conclusions naturally raise significant questions about market efficiency and/or about the techniques used to measure long-run “abnormal returns.” Rather than concentrating on a single security type or issuance, we examine long-run performance following any and all sorts of security issuances. Initial financing events do not associate with underperformance; however, subsequent financings do. Our results suggest that negative post-issuance returns have nothing to do with the specific type of security issued, and everything to do with the number of types of securities issued.     

Five dimensions of organizational citizenship behavior: Comparing antecedents and levels of engagement in China and the US

The purpose of this article is to investigate differences between the US and China in (1) employees’ level of engagement in the five dimensions of organizational citizenship behavior (OCB) identified by Organ (1988), and (2) the effects of perceived distributive justice and perceived supervisor support on OCB. Results suggest that Chinese respondents have a higher level of sportsmanship and courtesy, but a lower level of civic virtue than the US respondents. In addition, perceived supervisor support is significantly related to all five OCB dimensions for the Chinese sample, whereas for the US sample, perceived distributive justice is significantly related to conscientiousness and sportsmanship and marginally related to altruism. A follow-up study was conducted in the US to examine the direct effects of such cultural factors as individualistic/collectivistic orientation and power distance orientation on each of the five OCB dimensions, and their moderating effects on the relationships of the five OCB dimensions with perceived supervisor support and perceived distributive justice. Results suggest an effect of individualistic/collectivistic orientation on the five OCB dimensions. No relationship was found between power distance orientation and OCB. Moreover, the results did not support our predictions regarding the moderating effects of individualistic/collectivistic orientation and power distance orientation on the relationships between OCB dimensions and perceived supervisor support or perceived distributive justice.     

Fiscal implications of climate change

Climate change is an externality problem—so the challenges that arise in limiting it and dealing with the effects that remain are largely fiscal. The structure of the problem, however, and the uncertainty which surrounds it, make the design of proper policy responses particularly complex. This paper provides a primer on the fiscal implications of climate change, the aim being to provide a (reasonably) quick and comprehensive overview of the main analytical issues and lessons learned.     

Is Timing Everything? The Value of Mutual Fund Manager Trades

I develop new measures of the value of active mutual fund management using portfolio holdings. These measures simultaneously test for trading and selection skill within stocks, industries, and characteristics. I demonstrate that most of the skill documented in prior studies comes from correctly trading stocks within industries, though funds also have some skill in timing industries. However, prior research focuses on the period 1980‐1994. I also test the hold out sample 1995‐2007. Contrary to prior results, the latter period (and the full sample) demonstrates that mutual funds generate no excess returns from any category of skill.     

Creative destruction and labor's options

New technology, the fall of Eastern European socialism, new international trade agreements, and a resurgence of classical liberalism have greatly augmented the pace of capitalism's creative destruction. The principal benefits of this process have come in the form of new, better, and less-expensive consumer goods. But this process also generates a generalized sense of insecurity that most afflicts labor. Yet, the dominant ideology that has accompanied this latest burst of creative destruction has not been terribly sympathetic to labor's plight. After analyzing the character of this most recent burst of creative destruction, this paper explores the various options available to labor within a generally hostile ideological climate. The principle focus is on how labor's most promising options may not be found primarily in restablishing constrants upon markets, but rather in gaining greater control over production in the form of greater participation in both firm decision-making and ownership.     

Pollution and the firm Robert E. Kohn Edward Elgar, 1998, 251 pp.

The book, Pollution and the Firm, by Robert E. Kohn, provides a detailed and nearly definitive look at the application of Pigouvian taxation applied to competitive polluting firms in a static, general equilibrium framework. The reader is offered the most thorough examination of how the firm's long-run scale of output is related to the activities of pollution abatement and avoidance of which this reviewer is aware. While the reader would be advised to treat with skepticism some of the results of the models involving uncertainty, the overall set of models offers an excellent set of derivations and conclusions. Any student of firm-generated externalities would gain by exposure to this book.     

Broadcast Advertising and U.S. Demand for Alcoholic Beverages

Quarterly data for 1977-1994 on alcohol consumption and advertising are used to estimate a differential demand system, including explanatory variables for broadcast advertising and print advertising. The model explains the growth rate of per capita consumption dependent on explanatory variables for prices, real income, demographic changes, and real advertising by media and beverage. Empirical results also are reported for total consumption of pure alcohol. The results for the three beverages and total alcohol indicate that advertising has little or no effect on demand. The empirical evidence thus supports the notion that regardless of media, advertising affects mainly brand shares.