ABSENTEEISM AND TURNOVER: IS THERE A PROGRESSION? [1]

Three patterns of relationships between employee absenteeism and turnover have been suggested in the past—that withdrawal progresses from absenteeism to turnover, that absenteeism and turnover are alternatives to each other, and that absenteeism and turnover are unrelated. This paper examines the proposition that there is a rising trend of absences for leavers as the point of their turnover approaches, using data from employees of two midwestern U.S. organizations, a bank and a manufacturing company. A paired subjects design is used for analysis of the progression notion. The results affirm the existence of a positive association between absenteeism and turnover but provide, at best, weak confirmation of the progression hypothesis. The results from the two organizations are also different from each other. Measurement, sample, analysis, and theory problems are discussed as potential explanations of the differential results.     

The currency risk factor in international equity pricing

Currency risk in the pricing of international equity returns is analyzed from an empirical viewpoint. The significance of the domestic market index, and the world index is also analyzed. The methodology is based on the Asymptotic Principal Components when an approximate factor structure is assumed. Monthly stock price returns for five countries are used. Thirty stocks are chosen from each country. Fifteen years of data is used. The U.S. Dollar is the numeraire. Exchange risk is generally not priced. The Domestic market index is always priced. The pricing of the World Index is mixed, i.e., it is priced in certain case and not in others.     

Mapping network champion behavior in B2B electronic venturing

This study examines the concept of a new venture, B2B e-market in the light of participants who are involved in its innovation and diffusion processes. Our assessment results in the development of two key working propositions. The first proposition attempts to explain the relationship of the participants in the network and their contribution to innovation and diffusion processes over time. The second proposition attempts to explain how network champions (NC) contribute by bringing suppliers and buyers together in an electronic marketplace over time. In particular, this research adds to the industrial marketing literature by applying a case research method that is particularly useful for operationalizing theory development in business-to-business environments.     

Pay dispersion and workforce performance: moderating effects of incentives and interdependence

The compensation literature is replete with arguments, but lacking in empirical tests, regarding the effects of pay dispersion on organizational outcomes. Pay dispersion may increase effort and provide incentives for high workforce performance levels, but may also inhibit cooperation and goal orientation among employees. Drawing on several theoretical perspectives (individual motivation, institutional theory, organizational justice, and neoclassical economics), this study predicts that pay dispersion will be associated with higher levels of workforce performance when accompanied by formal individual incentive systems and independent work, while pay compression is desirable in the absence of individual incentive systems and when work is interdependent. Survey research studies in two industrial sectors (the motor carrier and concrete pipe industries) were conducted to address these issues. Interactive regression results were generally supportive of the predictions across several measures of workforce performance (accident rates, safety violations, and productivity). Implications of these studies for strategy implementation in terms of compensation theory and practice are addressed. Copyright © 2002 John Wiley & Sons, Ltd.     

Stock market efficiency and random character of share price behaviour in India

This study is aimed at testing the appropriateness of the random walk model in the Indian Stock Market for a recent period 1979–87. Using data of prices for five shares indices from the Bombay Stock Exchange during this period, both the tests - serial correlation and runs analysis, have generally supported the independence assumption of the random walk model.     

Omitted variables,variability of estimated parameters and the appearance of autocorrelated disturbances

This paper shows that in a standard regression model with omitted variables, the OLS formula for the estimated variance matrix of the regression coefficients is more likely to underestimate the appropriate criterion of estimator reliability which is the Mean Square Errors matrix. Using examples of two and three regressor models, we show that overestimation, though possible, occurs in rather special cases. Throughout, our analysis is contrasted with that of Chaudhuri (1977) and clarifies some ambiguities of that paper. Finally, we disagree with Chaudhuri who distinguishes between the corresponding coefficients in the correct and the misspecified models. This distinction is inappropriate and leads to a misplaced criticism of some GLS variants when errors are serially correlated. A first-order Markov process is an inexact representation of serial correlation which is due to omitted regressors.     

Optimal pricing and advertising strategy for introducing a new business product with threat of competitive entry

The problem of optimal joint pricing and advertising decision making for a new product facing potential competitive entry has received inadequate attention. We propose a model that attempts to find the optimal price-advertising frontier in the face of potential competitive entry that maximizes total discounted profits for pre- and post-entry periods. We find that a firm would charge the price that equates price elasticity to marginal revenue product of advertising (as predicted by [Dorfman, R. and Steiner, P.O. (1954), Optimal Advertising and Optimal Quality, American Economic Review, 44(5), 826-836.]) only when the potential effects of pricing and advertising on its market share are not considered. Under optimal conditions, aware that market share is subject to erosion, the firm charges a somewhat lower price than the profit maximizing price, and sets an advertisement expense that is somewhat higher than the profit-maximizing advertising level as predicted by Cournot's monopolistic setting. We illustrate the applicability of our model using business product examples taken from several industries including operating systems, software, pharmaceutical, and telephone switching. Directions for future research with implications for B2B managers (for example, the possible effects of preannouncement to forestall competitive entry) are discussed.