Contrarians or momentum chasers? Individual investors’ behavior when trading exchange-traded funds

Conducting the first study of momentum impact on households’ exchange-traded fund (ETF) trading behavior, we find that Finnish households are less contrarian when trading benchmark index ETFs than when trading common stocks. Also, their propensity to chase recent positive momentum is higher when purchasing ETFs than when purchasing stocks. As expected, results are stronger for ETF purchases than sales. Our findings are consistent with hypotheses that households are less overconfident trading index ETFs than common stocks, that contrarian behavior is more often rational when trading stocks than when trading ETFs, and that households trade ETFs for the long run.     

Institutional ownership of stock and dimensions of corporate social performance: An empirical examination

Collectively, institutions own an increasing proportion of outstanding corporate equities. As an emergent force in shaping corporate America, the linkages between institutional ownership and corporate social performance (CSP) require empirical examination. Not only do corporate policy makers need to know those areas where social performance may lure or inhibit capital infusions, lawmakers also need a better understanding of the social forces guiding corporate policy. As anticipated, this study found a positive relationship between the amount of institutional ownership of corporate stock and a company's social responsiveness as measured by the representation of women on its board of directors; however, no statistically significant relationship with social responsibility as measured by charitable giving was found. The exemplar of social issues management — compliance with the Sullivan principles — showed an unexpected, negative relationship with the level of institutional ownership.Betty S. Coffey's research interests are in the area of strategic management, organizational change, and social issues.Gerald E. Fryxell is Assistant Professor of Management at the University of Tennessee, Knoxville. His current research interests are in the area of corporate culture, innovation, and strategic management.     

Escaping a protectionist rut: Policy mechanisms for trade reform in a democracy

This paper analyzes the dynamics of trade policy reform under democracy. In an overlapping generations model, heterogeneous agents may acquire skills when young thereby determining the skill composition of their cohort. Current and anticipated trade policies influence education decisions and thus voters' trade policy preferences. We show that there may exist two political steady states: one protectionist and one liberal. Transition from the former to the latter can be achieved by government announcements, temporary educational subsidies, or tariff liberalization by trading partners, but generally not by transfer payments to adversely affected workers. We find additionally that reform is politically feasible only if the proposed liberalization is sufficiently large, suggesting that radical reform may be necessary for escaping a protectionist political rut.     

NGO Project Managers' Perception of the Sustainability of Development Projects: Empirical Evidence from Sub-Saharan Africa

ABSTRACT

Developmental organizations have increasingly focused on primary beneficiaries' participation and collaboration with stakeholders as critical factors to sustainability of project activities. Hypotheses that these factors affect project managers' estimates of probable sustainability of project activities have been tested in this study. The study used survey data from a sample of 126 Non-governmental organizations from Sub-Saharan Africa through e-mail and the internet. Five indicators of primary stakeholder's participation were tested and found reliable as a measure of overall participation. The ordered probit regression analysis was used to examine relationships between probable sustainability and independent variables. The five-item participation scale (beneficiary consultation, decision-making, volunteering work, project initiation and interactive participation) was the most significant variable affecting expected sustainability of project activities. No single indicator of participation was equally related. Government support and community projects variables were also significant predictors of expected sustainability.     

Evaluating new product ideas….systematically

Survival, growth, and the creation of a comparative advantage are all important concerns of smaller enterprises. In order to address those concerns, new product ideas must be found, screened, and developed, but over 80% of these enterprises do not, according to a survey, have a systematic process to carry out these tasks.This paper suggests potential sources for finding new product ideas and presents a simple model, which has been tested extensively, that may be used to screen them. This systematic approach, the authors conclude, should help to minimize the costs and risks of developing products that are likely to fail in the marketplace.     

The refsnes seminar: Economic theory and north–south negotiations

This paper attempts to assess existing economic theory and its use by policy-makers in North-South negotiations. Particular attention is directed at international trade in manufactures, primary commodity issues, and international monetary questions. Problems considered include: weak theory, the employment of overly crude models by policy-makers, paradigm clash, implicit bias, and inadequate knowledge of facts. An agenda for further research and possible action concludes the discussion. The paper is a personal summary of the discussions in a conference on the relevance of economic theory to NIEO negotiations.