Information Asymmetry, R&D, and Insider Gains

Although researchers have documented gains from insider trading, the sources of private information leading to information asymmetry and insider gains have not been comprehensively investigated. We focus on research and development (R&D)—an increasingly important yet poorly disclosed productive input—as a potential source of insider gains. Our findings, for the period from 1985 to 1997 indicate that insider gains in R&D-intensive firms are substantially larger than insider gains in firms without R&D. Insiders also take advantage of information on planned changes in R&D budgets. R&D is thus a major contributor to information asymmetry and insider gains, raising issues concerning management compensation, incentives, and disclosure policies.     

The business of elections

Two marketing reserach techniques, Conjoint Analysis and Quality Function Deployment (QFD), are imported to the political world and presented as superior substitutes to the conservative popularity contest surveys. Both techniques go deeper than "horse-race" popularity contests to analyze the roots of political success. Political Conjoint Analysis (PCA) and Political QFD (PQFD) identify and quantify consistent theoretical and operational features which statistically determine electoral victors. The successful application of such marketing techniques in the political world will hopefully eventually lead to Total Quality Politics (TQP) and intensify competition over voter satisfaction, rather than voter manipulation. Possible beneficial results of such techniques are a refinement of candidates' qualities in light of public demands and constant change in candidates' reservoirs due to the inability of existing pools to match voter preferences.     

International graduate students' perceptions and interest in international careers

This research developed and tested a comprehensive model of the antecedents of international graduate students' interest in an international career. Based largely on Social Cognitive Career Theory (SCCT), the model included elements that pertain to perceptions of external constraints (perceptions of the labor market, family pressure to return), international student experience (adjustment in the foreign country during graduate studies, exposure and immersion to the international context) and individual factors (self-efficacy with respect to working abroad and outcome expectancy). Participants were 139 international graduate students in the UK. Individual factors and perceived constraints were directly related to interest in an international career. The factors that comprised current international student experience were indirectly related to interest via their relationship with self-efficacy, while adjustment moderated the relationship between self-efficacy and interest. Although the hypothesized moderating role of family pressure to return did not materialize, the findings suggest that perceptions of constraints play a more substantial role in the formation of interest than has been assumed by SCCT theory thus far. The findings are discussed with respect to their implications for the literature and for the policies of host country stakeholders.     

Machine learning improves accounting estimates: evidence from insurance payments

Review of Accounting Studies - Managerial estimates are ubiquitous in accounting: most balance sheet and income statement items are based on estimates; some, such as the pension and employee stock...     

How Global Are Boundaryless Careers and How Boundaryless Are Global Careers? Challenges and a Theoretical Perspective

Recent discourse in the career studies literature suggests that careers become more boundaryless and more global. The scope of these phenomena and the possible association between them remains unclear. We add to the discussion by suggesting a set of propositions to further develop the global careers discourse and use examples from contrasting global and cultural contexts. Our contribution offers a two‐dimensional framework, where not all global careers are boundaryless, and not all boundaryless careers are global. It will encourage scholars to critically reflect on national, cultural, structural, and regulatory constraints. It challenges individuals and organizations to delve into how individuals interpret their way out of their contextual systems to engage in global careers and how different contextual aspects influence the desire for and the perception of global careers. © 2015 Wiley Periodicals, Inc.     

Methodological issues in the use of financial ratios

It appears that the extensive use of financial ratios by both practitioners and researchers is often motivated by tradition and convenience rather than resulting from theoretical considerations or from a careful statistical analysis. Basic questions, such as: Is the control for firm size, a major objective of the ratio form, called for by the theory examined; what is the structural relationship between the examined variables and size; and what is the optimal way to control for industry-wide factors, are rarely addressed by users of financial ratios. The major purpose of this study is to discuss the conditions under which conventional tools, such as financial ratios and measures of industry central tendency, achieve the intended objectives of analysis (e.g., size control). Various issues related to financial analysis, such as spurious correlation due to a common denominator, the choice of an optimal size variable, and the treatment of outlier observations, are also examined.