Food Prices,Ethics and Forms of Speculation

Journal of Business Ethics - This paper examines the role of speculative motives in the determination of commodity prices and specifically food related commodity prices. The motivation for this...     

TIME SERIES ANALYSIS OF ACCOUNTING POLICY CHOICE: REPLY

Taylor (1992) argues that accounting policy choices in any year are not assessed independently of policy choices adopted in previous years. This independence assumption is a maintained hypothesis of Anderson and Zimmer (1992). Although Taylor acknowledges that our results remain robust to his suggested adjustments for non-independence, we argue in this reply that such adjustments are unnecessary because temporal independence of accounting policy choices is consistent with the implications of costly contracting between the firm and its claimholders. We develop the arguments that (1) accounting choices are temporally independent and our research design is therefore, appropriate (2) to the extent that there is an independence problem of the type proposed by Taylor (1992) it also applies to cross-sectional studies of accounting policy choice.     

How to achieve an ROI on your health care dollars

Offering employees self-care information, which encourages them to decide what to do for themselves with and without provider assistance, can be a low-cost, effective approach to health care cost management. Components of such a program may include a printed self-care guide, workshops, software and a nurse advice line. Self-care is a process, not an event and, to be effective, a self-care program needs to be reinforced by ongoing communication.     

Theoretical perspectives on strategic environmental management

Strategic Environmental Management (SEM) incorporates into firms' core strategies the transformation of products and processes that they believe an environmentally concerned society will increasingly demand. Significant threads have to do with the discovery of cost savings and market opportunities from reducing environmental impacts. SEM, like the environmental regulation hypothesis associated with Michael Porter, implies that society's efforts to reduce external environmental costs often lead to identification of hitherto-ignored or undeveloped profit possibilities. This would be surprising from the standpoint of neoclassical economic theory, to the extent that SEM utilizes available information about the potential costs and benefits of projects. Within the framework of evolutionary, capabilities-based theories of the firm, however, this discovery and its exploitation in SEM make perfect sense. Capabilities theory would imply that firms' intrinsic path dependence may previously have obscured such opportunities. This paper examines the theory of SEM, its implications for neoclassical and capabilities theories of the firm, and survey results drawn from the author's work with member companies in a regional pollution prevention roundtable. RID="*" IDI have enjoyed the able and insightful research assistance of Justin Vernon. Cooperation from the companies that participated in the survey, and financial support from Allegheny College and its Center for Economic and Environmental Development, are gratefully acknowledged. Reviewers for this journal provided numerous, valuable suggestions. Responsibility for the material herein remains mine alone.     

Diversity in organizations: Where are we now and where are we going?

A great deal of research has focused on workforce diversity. Despite an increasing number of studies, few consistent conclusions have yet to be reached about the antecedents and outcomes of diversity. Likewise, research on different dimensions of diversity (e.g., age, race, gender, sexual orientation, disability, and culture) has mostly evolved independently. Therefore, the purpose of this review is to examine each of these dimensions of diversity to describe common themes across dimensions and to develop an integrative model of diversity.     

Homeownership and mixed-asset portfolio allocations

Homeownership represents both a consumption and an investment decision for individuals. Considering the investment benefits of the home, we estimate the total returns and risk associated with the investment in single-family homes. Then, using a mean–variance utility function, we consider the impact of homeownership and mortgage loan financing on the optimal asset allocation decisions of individuals and contrast this with advice that does not include the home as part of the portfolio. While optimal portfolio weights are dependant upon both the degree of risk aversion of the individual investor and the relative importance of the home in the overall net worth picture, we show that, in general, the higher the home-to-net worth ratio, the higher the optimal portfolio allocation to stock. For most investors, including the home in the optimization decision leads to higher allocations to risky stock than suggested by traditional advice that ignores the home.     

Failures to Deliver,Short Sale Constraints,and Stock Overvaluation

Studying a large sample of publicly available data on failures to deliver, we find that stocks reaching threshold levels of failures become significantly overvalued. Where short sale constraints are especially binding, we report extreme overpricing and subsequent reversals. These findings support the overvaluation hypothesis, although the mispricing is likely to be difficult to arbitrage because of extreme shorting costs. In addition, threshold stocks with low short interest become more overvalued than threshold stocks with high short interest. This suggests that the level of short interest reflects supply‐side effects when the examination conditions on the difficulty of borrowing shares.     

The influence of lead indicator strength on the use of nonfinancial measures in performance management: Evidence from CEO compensation schemes

Nonfinancial measures (NFMs) are a common feature of strategic performance management frameworks. We examine the role of one widely used NFM: customer satisfaction, in one aspect of strategic performance management: CEO compensation schemes. Drawing on agency theory precepts, we hypothesize that the extent to which firms link CEO compensation to customer satisfaction is influenced by satisfaction's ability to act as a leading indicator of future profitability (lead indicator strength). We further hypothesize that the extent to which customer satisfaction's lead indicator strength influences the weighting of satisfaction in CEO compensation schemes has a positive influence on future shareholder value. Our empirical results offer strong support for both hypotheses and extend research on the use and efficacy of NFMs in CEO compensation schemes. Copyright © 2013 John Wiley & Sons, Ltd.