Inter-firm linkages and the wealth effects of financial distress along the supply chain

Extant research examines the extent to which bankruptcy has intra-industry valuation consequences. This study broadens the investigation by examining the wealth effects of distress and bankruptcy filing for suppliers and customers of filing firms. On average, important wealth effects occur prior to and at bankruptcy filings and extend beyond industry competitors along the supply chain. Specifically, distress related to bankruptcy filings is associated with negative and significant stock price effects for suppliers. Supplier wealth effects are more negative when intra-industry contagion is more severe. We also investigate the importance of industry structure, specialized product nature, and leverage on supply chain effects.     

Property rights,land use and the rural environment: A case for reform

English Law confers extensive land use rights as an integral attribute of property entitlements and land ownership. Property rights have, however, been subject to incremental reform by a number of different legal and policy instruments since 1945. Many have been introduced since the UK's accession to the European Community in 1972 and are derived from European Union environmental law, and from the law of the Common Agricultural Policy. Others derive from planning law and policy. There has, as a consequence, been an extensive modification to the allocation of land-based utility recognised in property rights, although the common law theory of property entitlements has remained unaffected. This paper considers the impact of these developments on property rights theory, and anticipates the further modifications to property concepts that will be required by a land use policy increasingly focussed on the promotion of environmental stewardship in the countryside. It makes the case for the introduction of a general duty of environmental stewardship as an attribute of property ownership in the law of England and Wales. It considers the contribution that this would make to the delivery of a stable and effective environmental policy for rural land use, and towards a recognition of the wider community interest in, and reliance upon, the sustainable management of land.     

THE ROLE OF COMPONENTIAL AND INTEGRATIVE KNOWLEDGE IN ACCOUNTING EDUCATION

This study examines the role of componential knowledge, i.e., generally accepted accounting principles, and integrative knowledge, i.e., performing LIFO and FIFO inventory analysis, in solving complex accounting problems. This study predicts a dynamic, interactive process among componentiai knowledge, integrative knowledge and problem solution. Accounting students were given training in inventory methods, and then they were given inventory problems. The results support the prediction that there is a dynamic, interactive process between componential knowledge, integrative knowledge, and problem solving. The results provide several useful new directions for accounting pedagogy research and practice.     

A conceptualisation of poverty in rural India

This paper investigates the different aspects of poverty in rural India. Based largely on data from a region of Bihar, the various characteristics and sources of poverty are enumerated and discussed, including food intake, other consumption, health, security, education and status as characteristics; and occupation, employment, wages, assets, organization and demographic factors as sources. It is argued that poverty must be seen as a multivariate phenomenon; policy to affect any one aspect of poverty is likely to be rendered ineffective by negative feedback from other variables in the poverty complex. Only a simultaneous attack on all aspects of poverty can be successful.     

Hospital Cost Inflation and Physician Payment*

Abstract . The hypothesis that physicians use control over hospital resources to maximize their net revenue is examined to determine whether such behavior leads to more rapid growth of hospital costs. Theoretical and empirical studies are reviewed and hypotheses are developed regarding the relationship of cost increases to the method of physician payment. Exploratory comparisons of increases in hospital cost per patient day are made between Health Maintenance Organizations with salaried practice and Medical Foundations with fee-for-service. The association of international differences in the rate of increase of hospital cost per day with method of physician payment is explored in an Appendix in the microfiche supplement.     

Information content and recency effect of the audit report in loan rating decisions

We examined the significance of the audit report in loan rating decisions using the belief revision model. We designed a laboratory experiment where the sign of the audit report is mixed with other annual financial information in a series of sequential evidence. The results of an experimental design, using 106 loan officers from international financial institutions, support the hypothesis that the qualified audit report appears to be an independent and useful piece of evidence when it is contrary to favourable financial expectations. Our findings also support that the ‘recency effect’ might influence international commercial loan officers’ perception of the qualified audit report.     

Child labor and the minimum wage: Evidence from India

This study examines how changes in the minimum wage affect child labor in India. The analysis uses repeated cross sections of India's NSSO employment data from 1983 to 2008 merged with data on state-level minimum wage rates. Theoretically, the impact of the minimum wage on child work could go either way, so empirical evidence from a country with high rates of child labor and a myriad of minimum wage laws across states and industries helps to lessen the ambiguity. Results indicate that regardless of gender, in urban areas, a higher minimum wage reduces child labor in household work. In rural areas a similar result applies for girls while household labor does rise for boys. The minimum wage has virtually no impact on child work outside of the home across urban and rural areas.