A systems approach for the generation of new product ideas

One way to manage a creative project directed toward new product ideas is through a systems approach. This model offers a systematic way to explore all relevant factors, including those related to consumer satisfaction.     

Interest rates,inflation, and taxes: The foreign connection

In this note it is shown that the existence of taxes on nominal interest receipts in an international setting introduces a non-neutrality in that a change in expected inflation in one country must change at least one expected real interest rate or the path of the real exchange rate.     

Rational Speculative Bubbles: An Empirical Investigation of the London Stock Exchange

In recent years, a sharp divergence of London Stock Exchange equity prices from dividends has been noted. In this paper, we examine whether this divergence can be explained by reference to the existence of a speculative bubble. Three different empirical methodologies are used: variance bounds tests, bubble specification tests, and cointegration tests based on both ex post and ex ante data. We find that, stock prices diverged significantly from their fundamental values during the late 1990's, and that this divergence has all the characteristics of a bubble.     

Trade Credit Terms: Asymmetric Information and Price Discrimination Evidence From Three Continents

Abstract:   Trade credit terms offer firms contractual solutions to informational asymmetries between buyers and sellers. The credit period permits buyers to reduce uncertainty concerning product quality prior to payment, while the seller can reduce uncertainty concerning buyer payment intentions by prescribing payment before/on delivery or through two‐part payment terms and other mechanisms. Variation in trade credit terms also offers firms price discriminating opportunities. This study, drawing on the responses of 700 large firms in the US, UK and Australia, explores trade credit terms through the twin objectives of reducing information asymmetries and discriminatory pricing. Support is found for both theories.     

Naïve theories of price: A developmental model

A model of the development of naïve theories of price is presented and tested. The criterion used to account for price variations within a product category is product features at age five, product features and quality at age ten, product quality and buyer utility at age thirteen, and a combination of supply considerations and buyer utility/demand in adulthood. Five-year-olds do not justify their use of product features as a price criterion; however, older respondents all justify their price criterion by referring to a source of value. At age ten, variation in the amount of manufacturing inputs is the source of value which justifies the use of product features as a price criterion; at age thirteen, variations in the quality of manufacturing inputs justify the use of product quality as a price criterion; and in adulthood, relative scarcity and buyer preferences justify the use of cost and demand as price criteria.     

THE CHANGING RISK PROFILE OF U.S.-BASED MULTINATIONAL CORPORATIONS EXPOSED TO EUROPEAN COMMUNITY MARKETS

In this study we investigate the risk characteristics of U.S.-based multinational corporations (MNCs) that conduct much of their business in the European Community. Specifically, we assess the efficacy of a multifactor return-generating model that incorporates the influence of U.S. and European markets. Our results demonstrate that the European market is a significant factor in explaining the time-series behavior of MNC returns, and that the European market influence is stronger since the adoption of the Single European Act. In addition, the reduction in the sensitivity of MNCs to the U.S. market since the Single European Act is cross-sectionally associated with changes in their proportional levels of European sales. The results suggest that the returns of other MNCs expanding into increasingly integrated regional blocs may experience similar changes in their systematic risk profile.     

Models of International Labor Standards

This article examines existing models of the regulation of international labor standards in the context of international trade. The article first focuses on conceptual and theoretical notions of the international regulation of labor standards. Four existing models of international labor regulations are then examined: the legislative model, the trade sanctions model, the multilateral enforcement model, and the voluntary standards model. The theoretical issues raised and the characteristics of the four models are then used to develop a suggested structure for the international regulation of labor standards in a world of free trade.     

Computer crime: Assessing the lawyer's perspective

The past decade has seen a rapid development and proliferation of sophisticated computer systems in organizations. Designers, however, have minimized the importance of security control systems, (except for those systems where data security and access control have obviously been of major importance). The result is an increasing recognition that computer systems security is often easily compromised.This research will provide the initial step in assessing ways in which attorneys retained to prosecute computer crimes and computer people who discover these violations can work together to strengthen both our computer systems to thwart violators and the laws that are currently on the books that can be used to prosecute violators. Dr. Karen A. Forcht is currently an Associate Professor in the Information and Decision Sciences Department at James Madison University in Harrisonburg, Virginia. She has published over 20 articles in the following journals: Dat Management, Journal of Data Education, Interface, Journal of CIS, Computer Security Management, Journal of Systems Management, Security Management Journal, for the Computer Security Institute, and numerous other computer journals. She presented the MIS portion of the National Computer Educator's Institute, sponsored by Mitchell Publishing Company, at Central State University during the summer of 1986. Dr. Forcht received her doctorate from Oklahoma State University and is a Certified Data Educator (CDE). Dr. Daphyne Saunders Thomas is currently an Assistant Professor of Business Law and Ethics in the Department of Finance and Business law at James Madison University in Harrisonburg, Virginia. She has published articles in numerous journals including the SWFAD Business Law Proceedings, The Mid-Atlantic Business Law Journal, Security Management Journal, The Encyclopedia of Professional Management, and Commerce Clearinghouse. In addition, she has presented papers at regional and national conferences in the areas of law, business, and computer security. Dr. Thomas received her Juris Doctorate degree from the Washington and Lee University School of Law.Karen Worrell Wigginton is currently an Instructor of Management at James Madison University. Mrs. Wigginton received a B.A. degree in Journalism from Radford University in 1980, followed by a M.S. degree in Educational Research and Foundations in 1982. She joined the Department of Management as an Instructor in 1987. Mrs. Wigginton instructs various courses in management including Small and Family Business Management. She has also taught courses in Hospitality Industry Management.     

Initial Public Offerings in Australia 1994 to 1999, Recent Evidence of Underpricing and Underperformance

This paper analyses whether financial and non financial characteristics of Australian initial public offerings (IPOs) can explain observed underpricing and long term underperformance over the period 1994 to 1999. A number of previous Australian studies have investigated initial day underpricing and longer term underperformance of IPOs and this study updates those papers. We find that initial day underpricing can in part be explained by market sentiment, forecast dividend per share yields, underwriter options and share options. Our longer term analysis supports the finding of previous studies in that IPOs on average, underperform the market in the first year following their listing.