Contracting inside an organization: An experimental study

In this paper we propose and test a contracting mechanism, Multi-Contract Cost Sharing (MCCS), for use in the management of a sequence of projects. The mechanism is intended for situations where (1) the contractor knows more about the true costs of various projects than does the contracting agency (adverse selection), and (2) unobservable effort on the part of the contractor may lead to cost reductions (moral hazard). The proposed process is evaluated in an experimental environment that includes the essential economic features of the NASA process for the acquisition of Space Science Strategy missions. The environment is complex and the optimal mechanism is unknown. The design of the MCCS mechanism is based on the optimal contract for a simpler related environment. We compare the performance of the proposed process to theoretical benchmarks and to an implementation of the current NASA ‘cost cap’ procurement process. The data indicate that the proposed MCCS process generates significantly higher value per dollar spent than using cost caps, because it allocates resources more efficiently among projects and provides greater incentives to engage in cost-reducing innovations. Electronic Supplementary Material Supplementary material is available in the online version of this article at . JEL Classification C72, C92, D82, L32     

Innovative Ireland—technological,industrial and societal challenges

The aims of this paper, from a perspective of the public sector, are (1) to provide a brief background scan of contemporary society, particularly the new challenges for technological, industrial and societal change, (2) to outline in passing some needs for and implications of innovative and entrepreneurial activities, and (3) by so doing provide a perspective on educational and related needs.The thesis of this paper is that Irish society, by virtue of its historical record, its cultural values, its educational and industrial performance and its human resources, is well placed to develop rapidly under contemporary conditions of change. Underlying this proposition is the assumption that the formal educational system from primary to tertiary levels including continuing education has a major role to play in contributing to maximising this economic and social development opportunity.     

The Importance of Experimental Control in Testing the Impact of Interviewer Continuity on Panel Survey Nonresponse

The conventional wisdom in survey research suggests that it is advisable to have the same interviewers return to the same respondents in order to maintain good response rates in longitudinal surveys. There has been, however, very little documented experimental research to support this. Work conducted by Campanelli and O'Muircheartaigh (1999) using a subsample of the British Household Panel Study (BHPS) at Wave 2 with experimental control of the allocation of respondents to interviewers showed no evidence of a positive continuity effect on nonresponse; more extensive analysis by Laurie et al. (1999) of the full BHPS sample using Waves 2 through 4 presents contradictory results. This paper extends the earlier analysis and shows that these differences in findings are due to the lack of experimental control for the inferences from the full BHPS sample in the Laurie et al. (1999) report rather than the shorter time frame considered in Campanelli and O'Muircheartaigh (1999). This paper also considers variation in interviewer continuity effects across areas through the use of multilevel statistical models.     

International equity market integration: Theory, evidence and implications

We survey the literature on international equity market integration. In doing so, we examine the theory of integration, the burgeoning literature on empirical evidence, and the implications. It is clear from our review that significant methodological advances in recent years have provided a new perspective on the degree of such integration. Among the most important implications of the rapidly amassing evidence of substantial integration among both the developed and the emerging markets is the need for international investors to carefully monitor the risk associated with varying benefits of diversification.     

盈余管理研究回顾及其对会计准则建设的启示

本文回顾了关于盈余管理的学术研究成果及其对会计准则制定者和监管者的启示。我们的研究围绕会计准则制定者感兴趣的问题展开。我们着重回顾了被用来管理盈余的具体应计项目的经验证据、各种盈余管理的程度（ｍａｇｎｉｔｕｄｅ）和频率（ｆｒｅｑｕｅｎｃｙ）,以及盈余管理是否影响经济资源的配置。我们的研究也发现了大量关于未来进行盈余管理研究应当重点关注的问题。     

Correlation dynamics in European equity markets

We examine correlation dynamics using daily data from 1993 to 2002 on the five largest Euro-zone stock market indices. We also study, for comparison, the correlations of a sample of individual stocks. We employ both unconditional and conditional estimation methodologies, including estimation of the conditional correlations using the symmetric and asymmetric DCC-MVGARCH model, extended with the inclusion of a deterministic time trend. We confirm the presence of a structural break in market index correlations reported by previous researchers and, using an innovative likelihood-based search, we find that the it occurred at the beginning the process of monetary integration in the Euro-zone. We find mixed evidence of asymmetric correlation reactions to news of the type modelled by conventional asymmetric DCC-MVGARCH specifications.     

Analyst Specialization and Conglomerate Stock Breakups

This paper examines whether firms emerging from conglomerate stock breakups are able to affect the types of financial analysts that cover their firms as well as the quality of information generated about their performance. Our sample comprises 103 focus-increasing spin-offs, equity carve-outs, and targeted stock offerings between 1990 and 1995. We find that, after these transactions, sample firms experience a significant increase in coverage by analysts that specialize in subsidiary firms' industries, and a 30–50% increase in analyst forecast accuracy for parent and subsidiary firms. The improvement in forecast accuracy is partially attributable to expanded disclosure. However, forecast improvements for specialists exceed those for non-specialists, leading us to conclude that corporate focus can facilitate improved capital market intermediation by financial analysts with industry expertise.     

R&D Accounting and the Tradeoff Between Relevance and Objectivity

We use a simulation model for a pharmaceutical R&D program to examine the tradeoff between objectivity and relevance of accounting information under various methods of R&D reporting. A simple capitalization rule, similar to the successful-efforts method of capitalizing oil and gas exploration costs, provides a stronger relation between accounting information and economic values than immediate expensing of R&D outlays or capitalizing the full cost of outlays. The superior relevance of this "successful-efforts" method persists even when earnings management is widespread.