Shaping Liquidity: On the Causal Effects of Voluntary Disclosure

Can managers influence the liquidity of their firms’ shares? We use plausibly exogenous variation in the supply of public information to show that firms actively shape their information environments by voluntarily disclosing more information than regulations mandate and that such efforts improve liquidity. Firms respond to an exogenous loss of public information by providing more timely and informative earnings guidance. Responses appear motivated by a desire to reduce information asymmetries between retail and institutional investors. Liquidity improves as a result and in turn increases firm value. This suggests that managers can causally influence their cost of capital via voluntary disclosure.     

The Economics of Henry George: A Review Essay

This is a welcome addition to the literature on Henry George. Bryson seeks to “rehabilitate” George—by highlighting his major achievements, by explaining why academic economists have rejected or neglected him, and by showing how nonetheless George has had a major but little‐acknowledged impact on economic thought.     

Pre-retirees' assessment of housing adequacy and their propensity to move

The purpose of this study is to determine how adequate pre-retirees perceived their homes would be for retirement, and their propensity to move after retirement. This study assesses the relationships between certain socio-demographic variables and feelings and plans for retirement, current housing tenure and structure conditions of the home, the anticipated adequacy of the size of the current home for retirement, and the anticipated locational decision after retirement. Three hypothesized models were tested, each succeeding model adding another level, using the above variables. The hypothesized models were tested using logistic regression. Marital status and family income are statistically significant in the prediction of current housing tenure and structure conditions. The amount of planning for retirement, assessed by the respondent in comparison to others of similar age, is a significant predictor of anticipated satisfaction with the present dwelling at retirement. Anticipated satisfaction with the present dwelling at retirement and age are statistically significant in the prediction of likelihood of moving at retirement.     

Consumer durables,economics of information and public policy

The economic concept of the value of the last dollar spent is used to analyse market failure associated with the energy requirements of appliances. A model is developed which focuses on the information problem concerning the energy used to derive service flows from durables. Economic perspectives based upon the model are offered as to (1) why the private sector did not correct the problem, (2) why events in the 1970s prompted public intervention, and (3) how Energy Guide labels enhance the exchange process. But can consumers use the information contained on Energy Guide labels? The results of a study of high school students in the United States suggest that many consumers with problem solving skills comparable to these students would be unable to use the labels effectively. The study also indicated that effective education materials have been developed to help consumers use the labels.     

Systems in New Zealand for teaching home economics at a distance

This paper outlines distance education systems in New Zealand with particular reference to the teaching of home economics to school students and to home economics teachers. Explanatory tables regarding organizational levels in New Zealand's schools are given.     

Postcomplaint Processes: From Organizational Response to Repurchase Behavior

Dissatisfied consumers have the opportunity to complain, and businesses can respond to these complaints. Research into what occurs following this response has been sketchy and incomplete. This study attempts to integrate what is known about organizational response to complaints and consumer reaction to that response. A model of post-complaint processes is offered and tested using a sample of complainants who wrote to an oil company.     

Dynamics of Complaint Management in the Service Organization

While the consumer affairs and services marketing literatures recognize the importance of input from customers, little is known about how customer feedback systems might operate, particularly in dealing with customer complaints. This paper offers an information processing model of the complaint information flow within the organization and poses hypotheses based on the suggested model. A new field study technique using a type of network analysis is used to empirically test hypotheses and discover barriers and facilitators to the flow of communications. The study provides insight concerning how complaint information flows through the organization after it has been received by a customer contact employee. The results provide support for the thesis that the role of complaint handler and manager in providing the service is at least as important as the role of the customer contact employee.     

Characteristics of early and late adopters of pension accounting standard SFAS No. 87*

Abstract. Although there was strong opposition to the FASB's pension standard, SFAS No. 87, there is evidence that adoption of the standard had a favorable transitory effect on the earnings of a number of companies. This study examines firms' decisions to adopt SFAS No. 87 earlier than the FASB required. The results indicate that there were significant differences among firms that chose to adopt SFAS No. 87 early and those that did not. Unlike earlier studies of income-increasing accounting choices, early adopters were large firms with large, more fully funded pension obligations. They were subject to more accounting-based debt constraints, especially on working capital, and were more constrained on interest coverage than were those that did not adopt. Of early adopters, officers and directors owned less stock than did outside owners. Résumé. Bien que la norme SFAS n^o 87 du FASB relative aux régimes de retraite soulève une forte opposition, les faits démontrent que l'adoption de cette norme a eu des conséquences transitoires favorables sur les bénéfices de nombreuses entreprises. Les auteurs se penchent sur la décision de certaines sociétés d'adopter la norme SFAS n^o 87 avant l'échéance fixée par le FASB. Leur analyse révèle d'importantes différences entre les entreprises qui ont choisi d'adopter la norme avant l'échéance et celles qui ont préféré attendre. Contrairement à ce qu'ont indiqué les études précédentes relatives aux choix comptables entraînant une hausse des bénéfices, les entreprises qui ont adopté la norme avant l'échéance sont de grandes entreprises dont les obligations au titre du régime de retraite sont importantes et dont le régime est davantage provisionné. Elles sont assujetties à des contraintes fondées sur leurs obligations comptables, en particulier en ce qui a trait au montant de fonds de roulement à maintenir, et doivent assurer une bonne couverture des intérêts. Les cadres et les administrateurs des entreprises qui ont pris les devants possèdent moins d'actions que ceux des entreprises qui ont préféré attendre.