Cartel overcharges: Survey and meta-analysis

The article presents a novel meta-regression analysis of the size of cartel overcharges from a sample of more than 800 observations collected from a wide variety of published sources. The analysis of a subsample of 395 cartel episodes finds that duration, legal environment, and organizational characteristics of cartels explain variation in overcharge rates to a greater extent than the type of publication or the method of calculation. Overcharges tend to be significantly higher for durable international cartels. Secular decline is observed as antitrust-enforcement regimes have stiffened.     

Performance following ESOP formations by publicly-held corporations

The study assesses the stock performance of publicly-traded firms following ESOP formations. The results show that ESOPs contributing common stock elicit a more favorable market response than ESOPs contributing convertible preferred stock. This result is consistent with the argument that the convertible preferred contribution reduces the regularity of the repurchase of common shares in the market. Also, ESOPs intended to defend against takeovers elicited no market reaction while other ESOPs elicited a favorable market response. This result supports the hypothesis that ESOPs intended to prevent takeovers may eliminate external market discipline. The study also assesses the long-term performance of firms following ESOP formations to determine whether some hypothesized effects of ESOPs are realized. Results of the analysis suggest that firms experienced favorable long-term valuation effects following the creation of new ESOPs. However, the expansion of existing ESOPs was not as favorable. Differences in the effect can be attributed to the loss of external discipline when an expanded ESOP leads to an increase in proportional ownership. *** DIRECT SUPPORT *** A00HA012 00006     

Crafting a Human Resource Strategy to Foster Organizational Agility: A Case Study

A decade ago, the Chief Executive Officer of Albert Einstein Healthcare Network (AEHN), anticipating a tumultuous and largely unpredictable period in its industry, undertook to convert this organization from one that was basically stable and complacent to one that was agile, “nimble, and change‐hardy”. This case study, while briefly addressing AEHN's approaches to business strategy and organization design, focuses primarily on the human resource strategy that emerged over time to foster the successful attainment of organizational agility. Although exploratory, the study suggests a number of lessons for those who are—or will be—studying or trying to create and sustain this promising new organizational paradigm. © 2001 John Wiley & Sons, Inc.     

The attributes,behavior, and performance of U.S. mutual funds

This article examines the risk and return characteristics of U.S. mutual funds. We employ an equilibrium version of the Arbitrage Pricing Theory (APT) and a principal-components-based statistical technique to identify performance benchmarks. We also consider the Capital Asset Pricing Model (CAPM) as an alternative. We implement a procedure for overcoming the rotational indeterminacy of factor models. This procedure is a hybrid of statistical factor estimation and prespecification of factors. We estimate measures of timing ability for the CAPM and extend it to the APT. We find that this timing test is misspecified due to noninformation-based changes in mutual fund betas. We develop a modification of the timing measure that, under certain conditions, distinguishes true timing ability from noninformation-based beta changes.     

Is ‘benchmark beating’ by Australian firms evidence of earnings management?

We investigate the extent to which Australian firms that report small profits and/or small increases in earnings (i.e. benchmark beaters) have done so by the upward manipulation of these earnings. Although evidence of an unusually large number of firms managing to just beat such earnings benchmarks has been interpreted as evidence of earnings management, this approach fails to identify those firms that are the manipulators from those where unbiased earnings fall naturally into the benchmark beating group. Our results suggest that caution is required in interpreting benchmark beating as an indicator of the extent of earnings management. Using several methods for estimating the unexpected accrual component of earnings, we show that although benchmark beaters have larger positive unexpected accruals than other firms, a similar result holds when firms with small losses or earnings declines (i.e. ‘just miss’ firms) are compared with other firms. Moreover, there is no statistically significant difference between unexpected accruals for the benchmark beating and just miss groups. At a minimum, we reject the joint hypothesis that unexpected accruals capture earnings management and that an unusual kink around zero in the distribution of earnings levels or earnings changes is caused by earnings management.     

What Drives Stock Price Behavior Following Extreme One-Day Returns

We identify samples of losers and winners by selecting daily stock price returns in excess of 10% (sign ignored) and determine whether these samples over‐ or underreact. We then identify “informed” events, which correspond to announcements in the Wall Street Journal(WSJ), and “uninformed” events, which are not explained in the WSJ. For winners, there is overreaction in response to uninformed events but no overreaction on average in response to informed events. This finding suggests the degree of overreaction to new information depends on whether the cause of the extreme stock price change is publicly released.     

Quanta:拥有笔记本,拥有广达

你肯定认为一家销售额超过100亿美元的制造商会很乐于夸耀它的成功。如果这种成功发生在最大的ODM(原始设计制造商),注册于中国台湾省的广达计算机公司(Quanta Computer,Inc)时,那就需要重新思考这个问题。实际     

The suitability of computer‐based training for workers with limited formal education: a case study from the US agricultural sector

The suitability of computer‐based instruction (CBI) for workers with limited education was evaluated in an Hispanic orchard workforce that reported little computer experience and 5.6 mean years of formal education. Ladder safety training was completed by employees who rated the training highly (effect size [d_gain] = 5.68), and their knowledge of ladder safety improved (d_gain = 1.45). There was a significant increase (p < 0.01) in safe work practices immediately after training (d_gain = 0.70), at 40 days post training (d_gain = 0.87) and at 60 days (d_gain = 1.40), indicating durability. As in mainstream populations, reaction or affective ratings correlated well with utility ratings, but not with behavior change. This demonstrates that an agricultural workforce with limited formal education can learn job safety from CBI and translate the knowledge to work practice changes, and those changes are durable.