Surviving Chapter 11 Bankruptcies: Duration and Payoff?

Three of the authors previously developed a model to predict the duration of Chapter 11 bankruptcy and the payoff to shareholders ( Partington et al ., 2001 ). This work augments that study using a much larger sample to re-estimate the model and assess its stability. It also provides an opportunity for out-of-sample testing of predictive accuracy. The resulting models are based on Cox's proportional hazards model and the current article points to the need to test two important assumptions underlying the model. First, that the hazards are proportional and, second, that censoring is independent of the event studied. Using the extended data set, all the previously significant accounting variables drop out of the model and only two covariates of the original model remain significant. These are the market wide credit spread and the market capitalization of the firm, both measured immediately prior to the firm's entry to Chapter 11. Receiver operating characteristic curves are then used to assess the predictive accuracy of the original and extended models. The results show that Lachenbruch tests can provide a misleading indication of predictive ability out of sample. Using the Lachenbruch method of in-sample testing, both models show predictive power, but in a true out-of-sample test they fail dismally. The lessons of this work are relevant to better predicting the gains and losses likely to accrue to shareholders of companies in Chapter 11 bankruptcy and in similar administrative arrangements in other jurisdictions.     

The Role of the OECD and EU Conventions in Combating Bribery of Foreign Public Officials

The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (the OECD Convention) obligates signatory nations to make bribery of foreign public officials a criminal act on an extraterritorial basis. The purposes of this article are to describe the nature and consequences of bribery, outline the major provisions of the OECD Convention, and analyze its role in promoting transparency and accountability in international business. While the OECD Convention is not expected to totally eliminate the seeking or taking of bribes, there are hopes that a uniform set of rules will curtail corrupt behavior, as long as those rules are both enforceable and enforced.     

Using information‐processing theory to understand planning/performance relationships in the context of strategy

This study reveals the importance of viewing planning processes within the context of strategic orientation. Information‐processing theory is used to examine the differences in planning processes given variable strategy content in the banking industry. Findings suggest that banks implementing different strategies require their planning systems to focus on different kinds and amounts of information. Moreover, the relationship between planning and bank performance is clarified when information requirements of a specific strategy are considered. It appears the strategy moderates the relationship between planning and performance. Copyright © 1999 John Wiley & Sons, Ltd.     

Designing warnings to compensate for age-related changes in perceptual and cognitive abilities

A variety of individual difference variables affect whether or not someone notices, encodes, comprehends, and complies with a warning. Failures at any of these stages reduce the effectiveness of warnings. Development of effective warnings must be based on understanding the characteristics of the product user. As the population grows older, consideration of age-related changes in perceptual and cognitive abilities becomes more relevant to the warning designer. For example, aging researchers have identified a variety of changes in the visual system (e.g., acuity, contrast sensitivity, and color discrimination) and cognitive function (e.g., working memory and reading comprehension). By considering the abilities of the product user, the impact of these age-related changes may be minimized. The goal of this article is to describe findings from research on aging and to make recommendations about how designers can increase the effectiveness of warnings for the older adult. © 1998 John Wiley & Sons, Inc.     

The role of the media in disseminating insider-trading news

We use the process through which insider trading (SEC Form 4) filings are made public to investigate whether media coverage affects the way securities markets assimilate news. To do this, we use recent changes in disclosure rules governing insider trades as well as the initiation of coverage by Dow Jones to cleanly identify media effects. Using high-resolution intraday data, we find clear effects of media dissemination on the way prices and volume respond to insider trading news in the minutes after its release. These results help to resolve open questions regarding the role of the media in capital markets, including why apparently second hand news affects securities prices.     

China,Hungary, and the Belgrade-Budapest Railway Upgrade: New Politically-Induced Dimensions of FDI and the Trajectory of Hungarian Economic Development

Since 2010, Hungarian political agency has become more dominant in determining economic outcomes, rendering the increase in Chinese FDI into Hungary more politically-induced, rather than market-driven making Sino-Hungarian economic relations more important than before Fidesz returned to government. Approaches to understanding Hungarian capitalism have been overly firm-focused and therefore cannot account for (a) politically-motivated decisions on FDI or (b) increasingly significant transnational capital flows from China, both of which have the potential to affect the trajectory of Hungarian economic development. This article investigates the Belgrade-Budapest railway upgrade, the largest infrastructure project funded by Chinese FDI.     

Consumer purchase intentions for pork with enhanced carnosine–A functional food

In this study, Canadian consumers’ preferences for enhanced carnosine (a naturally occurring dipeptide that exhibits antiaging properties) in pork are examined. Carnosine is a relatively unknown nutrient to the public such that we are interested in understanding the relative merits of informing consumers of enhanced carnosine levels through a possible health claim, a nutrient content claim or including it in the nutrition facts table (NFT). As a basis of comparison, we include two other possible labels, a protein nutrient content claim, and a Verified Canadian Pork label (created by industry identifying food safety, animal care, traceability, and farm to table quality assurance attributes of the production system). Data were collected through an online survey that included a choice experiment and were analyzed using conditional logit and random parameters logit models. Compared to carnosine (as a functional attribute), consumers prefer the identification of protein content. In terms of labeling carnosine, consumers have higher willingness to pay for carnosine content included in a NFT than for nutrient or health claims. Higher levels of nutrition knowledge are associated with higher willingness to pay for the different pork attributes.     

Expert judgements and community values: preference heterogeneity for protecting river ecology in Western Australia

Western Australia's Swan River is a complex asset providing environmental, recreational and commercial benefits. Agencies responsible for its management rely extensively on advice from experts, whose preferences may or may not align with those of the community. Using a choice experiment, we compared public and expert preferences for managing the river's ecology and tested the application of budget‐reallocation and personal‐cost payment vehicles. The results indicate that the budget‐reallocation method is a suitable payment vehicle for public and expert samples, although there are some differences to the more traditional personal‐cost vehicles because of different trade‐offs involved. Modelling revealed heterogeneity in preferences. Expert and public preferences were statistically different from one another at the mean, but a significant amount of heterogeneity existed in the populations sampled. The differences in preferences across both public and expert groups suggest that the measurement of public values for the environment is still an important part of the management process, even when experts are providing advice.