Taxable income,future profitability,and stock returns

Prior research suggests that investors behave ‘as if’ taxable income contains information about future performance by providing evidence of a positive association between taxable income and stock returns. We draw on the fundamental analysis literature and provide direct evidence on this assertion by examining whether taxable income predicts future pretax performance. We find that taxable income positively predicts future pretax cash flows, pretax book income, and ‘Street’ pretax earnings, suggesting that taxable income provides incremental information to book income regarding performance. Moreover, we find a positive association between taxable income and analysts’ pretax forecasts, consistent with analysts utilizing the information in taxable income when forming earnings expectations. We do not find an association between taxable income and future analyst forecast errors, implying analysts do not overreact or underreact to taxable income's performance signal. Overall, we find that taxable income provides a signal of fundamental value and corroborate the implications of prior research.     

Photograph Presentation Order and Range Effects in Visual-Based Outdoor Recreation Research

Visual-based research methods are commonly used to provide an empirical basis for formulating evaluative standards related to recreation use levels. Visual research methods applied in this context are subject to several potential measurement biases. This article examines two such potential biases in visual-based recreation research methods: order effect bias and range effect bias. In a lab setting, respondents evaluated recreation photographs from Rocky Mountain National Park regarding the acceptability of people at one time (PAOT). Results indicated photo presentation order and the PAOT range depicted both had an effect on photograph acceptability ratings. Potential methodological revisions to the visual-based method are discussed.     

Theorizing Ontology

Sandra Harding identifies a set of questions to which, she suggests, she and I would provide contrasting answers. In this short note I wonder if our differences are quite as sharp as Harding supposes.     

Research to Estimate and Manage Carrying Capacity of a Tourist Attraction: A Study of Alcatraz Island

Carrying capacity has been a long-standing issue in management of parks, outdoor recreation and tourism. Contemporary carrying capacity frameworks rely on formulation of indicators and standards of quality to define and manage carrying capacity. This paper describes a programme of research to support estimation and management of carrying capacity of Alcatraz Island, an historic site within Golden Gate National Recreation Area, California, USA, and a heavily visited tourist attraction. Research included: (1) a survey of visitors to Alcatraz Island to identify indicators and standards of quality for the visitor experience; and (2) development of a computer simulation model of visitor use to estimate maximum daily use levels without violating standards of quality. Study findings are used to estimate a range of carrying capacities for the prison cellhouse and for the island as a whole.     

Consumer Rights: An Assessment of Justice

For the last 50 years the idea of consumer rights has formed an essential element in the formulation of policy to guide the workings of the marketplace. The extent and coverage of these rights has evolved and changed over time, yet there has been no comprehensive analysis as to the purpose and scope of consumer rights. In moral and ethical philosophy, rights are integrally linked to the notion of justice. By reassessing consumer rights through a justice-based framework, a number of key issues emerge regarding the way in which markets enable justice for consumers. The consumer rights which underpin the United Nations consumer protection guidelines address all forms of justice to some degree, but the predominant focus is on procedural justice. Our conclusions question whether this is sufficient and also whether there is a case to develop the notion of consumer ‘duties’ that complement the idea of rights.     

Help or Hindrance? Causal Ambiguity and Supplier Involvement in New Product Development Teams

Suppliers are increasingly being involved in interorganizational new product development (NPD) teams. Successful management of this involvement is critical both to the performance of the new product and to meeting the project's goals. Yet the transfer of knowledge between buyer and supplier may be subject to varying degrees of causal ambiguity, potentially limiting the effect of supplier involvement on performance. Understanding the dynamics of causal ambiguity within interorganizational product development is thus an important unanswered empirical question. A theoretical model is developed exploring the effect of supplier involvement practices (supplier involvement orientation, relationship commitment, and involvement depth) on the level of causal ambiguity experienced within interorganizational NPD teams, and the subsequent impact on time to competitor imitation, new product advantage, and project performance. The model also serves as a test of the paradox that causal ambiguity both inhibits imitation by competitors, but adversely affects organizational outcomes. Survey data collected from 119 research and development‐intensive manufacturing firms in the United Kingdom largely support these hypotheses. Results from structural equation modeling show that supplier involvement orientation and long‐term relationship commitment lower causal ambiguity within interorganizational NPD teams. The results also shed light on the causal ambiguity paradox showing that causal ambiguity during interorganizational NPD decreases both product and project performance, but has no significant effect on time to competitor imitation. Instead, competitor imitation is delayed by the extent to which the firm develops a new product advantage within the market. A product development strategy based upon maintaining interfirm causal ambiguity to delay competitor imitation is thus unlikely to result in a sustainable competitive advantage. Instead, managers are encouraged to undertake supplier involvement practices aimed at minimizing the level of knowledge ambiguity in the NPD project, and in doing so, improve product and project‐related performance.     

当重组见效之际

强大的业务理念不同于战略,所谓战略是为实现具体目标的一系列详细行动的方针,而理念是一种具有鼓舞力和凝聚力的见解。