Rent seekers in the U.S. international trade commission escape clause investigations

This article addresses the question of the political and economic characteristics of firms that are active in filing escape clause petitions. Filing an escape clause petition is considered to be a part of a political rent seeking strategy of a firm. The sample consists of publicly traded firms in industries in which escape clause petitions were filed 1975–1986. The results of a logit analysis suggest that firms active in the petitioning process tend to be profitable and dependent on the petitioned product. We also find tentative support that these firms are in concentrated industries and have Washington offices. These results raise some questions about the utility of the escape clause in providing aid for those firms that it is intended to help.     

Workplace risks and stressors as predictors of burnout: The moderating impact of job control and team efficacy

Air medical healthcare (AMH) professionals care for critically-ill individuals while conveying them to healthcare centres from distant, and frequently dangerous, locations. AMH professionals experience additional health and safety issues beyond the “typical” stressors faced by other healthcare professionals. Therefore, we integrated the safety and psychosocial health literatures to examine the relationship between workplace stressors (risk perception, worries, and patient-care barriers) and two components of burnout (emotional exhaustion; depersonalization), and the moderating impact of job control and team efficacy for 106 Canadian AMH professionals. Worries over medical hassles and barriers to patient care uniquely predicted emotional exhaustion. Lack of perceived control over one's job was related to exhaustion and depersonalization after controlling for stressors. Job control and team efficacy buffered some of the stressor-burnout relationships. Copyright © 2009 ASAC. Published by John Wiley & Sons, Ltd.     

The impact of education histories on the decision to become self-employed: a study of young,aspiring, minority business owners

Although it is well documented that minorities are underrepresented among the self-employed, no study to date has examined how limited educational opportunity might be responsible. Using data from the High School and Beyond Fourth Follow-Up survey and controlling for detailed educational histories, this study finds that most variables associated with academic success actually reduce the likelihood one will aspire to own their own business at an early age. Positive developers of self-employment aspirations include financial resources and having a parent who is already self-employed. Asians and males are also more likely to anticipate owning their own business.     

Teaching Price Discrimination: Some Clarification

This paper describes some common pitfalls in the teaching of price discrimination. The paper then presents some clarification of these issues and makes suggestions for teaching price discrimination to students in Principles and Intermediate Microeconomics classes.     

Gender, self-employment and microcredit programs An Indonesian case study

Credit is often the missing link for low-income families that try to make a living by operating small microenterprises. At the same time, the presumption that lending to the poor is very risky, the costs of operation are high, and the low repayment rates for such loans limit bankers’ willingness to extend credit to the poor. This article, however reports on the results of a microcredit program in Indonesia which suggests that when agencies, government and non-government, in a developing country make credit available to low income women, they can reduce the costs of delivery, greatly increase repayment rates, and substantially improve the well-being of poor families. Other studies also suggest that such credit tends to increase women’s participation in decision making, reduces fertility, substantially improves household nutrition and raises aspirations for children’s education. Our case study cofirms these results.     

Is information risk priced for NASDAQ-listed stocks?

Easley et al. (J Finance 57:2185–2221, 2002), building upon the asset pricing model of Fama and French (J Finance 47:427–465, 1992), show that the probability of informed trading (PIN) is a determinant of asset returns for NYSE-listed securities. We extend this work by examining whether the PIN is a predictive factor for NASDAQ stocks, as many studies document significant differences between NYSE and NASDAQ listed securities. In the process we examine whether the use of PIN is appropriate for NASDAQ-listed securities. We find that PIN and certain stock characteristics correlate differently for our sample of NASDAQ stocks than that of Easley et al. sample of NYSE stocks. We also determine that the risk of informed trading is only weakly priced for NASDAQ stocks. Contrary to Easley et al. we do not find evidence that excess returns increases as PIN increases.     

Collapsing exchange rate regimes in the presence of a parallel market

This paper develops a model of an economy where the fixed exchange rate is overvalued and coexists with a parallel market for foreign currency. Such a situation persists because the parallel marker is used by the central authorities as an instrument to delay policy changes. Using the Haïtian experience, this paper estimates a rationing parameter of foreign currency in the official market which translates the extent of tolerance of the parallel market. The paper also produces estimates of onestep-ahead probability of devaluation. Rationing has been severe and the probability of collapse has reached high levels during the period studied.     

Business Strategy,Financial Reporting Irregularities,and Audit Effort

This study examines whether clients' business strategies are a factor in determining the occurrence of financial reporting irregularities and the level of audit effort. We use the organizational strategy theory of Miles and Snow to develop a comprehensive measure of business strategy using publicly available data. We find that Miles and Snow's Prospector strategy is more likely to be involved in financial reporting irregularities and generally requires greater audit effort. The business strategy measure also appears to capture client business risk and provides incremental explanatory power beyond the individual measures of client complexity or risk used in traditional audit fee models. We contribute to the literature by constructing a replicable business strategy measure and identifying organizational business strategy as an important ex ante determinant of financial reporting irregularities and levels of audit effort. Our results suggest that investigating how audits can be improved to reduce financial reporting irregularities among Prospector clients is an important area for audit practice and future research.     

Rejection of Empathy in Negotiation

Trust is a crucial quality in the development of individuals and societies and empathy plays a key role in the formation of trust. Trust and empathy have growing importance in studies of negotiation. However, empathy can be rejected which complicates its role in negotiation. This paper presents a linguistic analysis of empathy by focusing on rejection of empathy in negotiation. Some of the rejections are due to failed recognition of the rejector’s needs and desires whereas others have mainly strategic functions gaining momentum in the negotiation. In both cases, rejection of empathy is a phase in the negotiation not a breakdown.