The Cost Efficiency of Real Estate Investment Trusts: An Analysis with a Bayesian Stochastic Frontier Model

Using a stochastic frontier methodology that incorporates Bayesian statistics, this paper analyzes the cost efficiency of real estate investment trusts (REITs) by observing the deviations of the measured costs of individual REITs from a defined efficient cost frontier. Using 1995–1997 data, we extend the previous research in this area and measure REIT efficiency more precisely by isolating random measurement error from the overall deviations from the efficient cost frontier. We calculate the magnitude of each REIT's managerial inefficiency, the industry inefficiency, and returns to scale. In addition, we assess specific characteristics of REITs for their contribution to inefficiency by calculating the odds ratio that a REIT with a specific characteristic is more efficient than a REIT with an alternative characteristic. The results show that, for the years studied, REITs are relatively cost efficient with most REITs facing increasing returns to scale. Additionally, the REIT's use of debt and the REIT's management style significantly affect the cost performance of REITs during the aforementioned time period. Finally, diversification across property types, as measured, does not seem to influence REIT cost efficiency.     

Corporate governance in a major British holding company: BSA in the interwar years

This paper uses a case study of BSA to examine corporate governance in a holding company during the interwar years. Recognised as generally progressive in its policy towards financial disclosure, nevertheless BSA attracted hostile criticism from its shareholders, showed little evidence of developing administrative coordination and provided limited detailed information concerning the performance of its subsidiaries. Voice did have an effect in changing the pattern of financial reporting, but even under the pressure of its banker, when financial circumstances deteriorated in the early 1930s, BSA was only prepared to change personnel while organisational structures remained in place.     

Entrepreneurship,novel combinations,capital regrouping,and the structure-agency relationship: an introduction to the special issue on innovation and Austrian economics

This introduction outlines some key aspects of an Austrian perspective on innovation, which is viewed as an ongoing, dynamic process in which entrepreneurs combine heterogeneous capital resources in new ways order to develop and deploy new technologies, products, and methods of business organisation. It goes on to introduce the contributions to this special issue on Austrian economics and innovation.

     

Operational performance of U.S. public rail transit and implications for public policy

In today's tough economic environment, governments at all levels face significant budget shortfalls and public rail transit systems must compete with other public services for government subsidies. It is critical that public rail transit systems be concerned with their operational performance and efficient use of resources. In this paper, we develop a methodology that measures a rail transit system's performance relative to that of other rail transit systems, compares its performance to an appropriate efficient benchmark system, and identifies the sources of its inefficiency. We analyze the relationship between public subsidies and operational performance of public rail systems and show an inverse relationship between subsidization and efficiency.     

An Academic Publisher’s Response to Plagiarism

Plagiarism strikes at the heart of academe, eroding the fundamental value of academic research. Recent evidence suggests that acts of plagiarism and awareness of these acts are on the rise in academia. To address this issue, a vein of research has emerged in recent years exploring plagiarism as an area of academic inquiry. In this new academic subject, case studies and analysis have been one of the most influential methodologies employed. Case studies provide a venue where acts of plagiarism can be discussed and analyzed in a constructive manner, and that is the primary purpose of this article. Unlike previous studies, however, we focus on the role of the publisher, a key player in dealing with acts of plagiarism, but one who has received little attention in the academic literature. Specifically, we examine how an academic publisher addressed allegations of plagiarism and how the publisher’s decision-making affected the outcome. We analyze the case by applying the guidelines from different frameworks and ethical theory and develop recommendations from the lessons evidenced, the second main objective of our article. This analysis advances the dialog on academic plagiarism by exploring the role of the publisher from a deontological perspective of ethical absolutism.