Acquisition of Information and Share Prices: An Empirical Investigation of Cognitive Dissonance

Abstract. This paper deals with the determinants of agents' acquisition of information. Our econometric evidence shows that the general index of Italian share‐prices and the series of Italy's financial newspaper sales are cointegrated, and the former series Granger‐causes the latter, thereby giving support to the cognitive dissonance hypothesis: (non‐professional) agents tend to buy the newspaper when share prices are high and not to buy it when share prices are low. Instead, we do not find support for the hypothesis that the agents acquire information in order to trade in the stock market: we find no relationship between quantities exchanged in the market and newspaper sales, nor between stock market volatility and newspaper sales.     

Straddling Contract and Estate Farming: Accumulation Strategies of Senegalese Horticultural Exporters

This paper draws on primary qualitative data to explore the accumulation strategies of indigenous exporters in the Senegalese horticultural sectors who supply European markets. It argues that exporters straddle contract and estate farming as a strategy to break through and survive in European markets, where the power of large‐scale retailers is increasing and the proliferation of food standards act as a non‐tariff barrier. It also analyses the relative opportunities as well as the costs of contract and estate farming. Then it focuses on how the control of buyers over suppliers is far from complete, revealing downstream and upstream spaces and dynamics of non‐compliance. In conclusion, some reflections on the development of capitalism in Africa are advanced.     

Temporary contracts, employment protection and skill: A simple model

We construct a theoretical labor market that incorporates skill differences across workers to identify under which conditions temporary contracts are a way to access to permanency. Firing costs and unemployment benefits increase the threshold productivity above which workers access to permanency.     

Institutional Logics in Police Performance Indicator Development: A Comparative Case Study of Spain and Finland

Police performance is not easily measurable and the organization and circumstances of police work vary among European countries. Further, police work is surrounded by multiple pressures to make it both economical and effective. Consequently, there are multiple institutional logics in decision-making which may affect the selection and the use of police key performance indicators (KPIs). The KPI selection and use processes reflect the institutional logics, though KPI use may also sometimes influence the institutional logics of police work. In this study, we analyze the KPIs and institutional logics in police work in Finland and Spain. A comparative case research approach is used in order to highlight the differences in institutional logic emphases and in circumstances. Data from semi-structured interviews, internet reports, project work, and discussions are used. Both similarities and differences in the KPIs and in the institutional logic emphasis are found between the Finnish and Spanish police. Understanding the partly general and partly locally constructed nature of institutional logics may facilitate the development of police work performance measurement. We also suggest ways of coping with multiple institutional logics. For example, risk analyses and selecting KPIs against the current institutional logic may facilitate organizational developments.     

Comparative Statics for the Consumer Problem

This paper studies comparative statics in the consumer utlity maximization problem with two goods. The analysis can be global, and it allows for indivisibilities, discrete changes, and non-binding budget constraints. It does not rely either on topological or convexity assumptions. Instead, it uses lattice programming techniques. The conditions derived are superextremal variant properties on the utility function, in appropriately constructed lattices on the consumption set. Sufficient conditions are given for one or both goods to be normal, for one to be inferior, and for some cases of price effects, using what are called value orders and lattices.     

交叉上市对本地股票收益的影响：俄罗斯ADRs的案例

导言 处于过渡时期的新兴资本市场经常受到低流动性，管制不足，机构脆弱，对小股东权益保护不够等问题的损害。这些问题都是发生在俄罗斯股票市场上的有关问题。本文的目的在于检验这样一个假设：交叉上市对来自先前是封闭的市场的公司有着有益的影响。理论表明交叉上市的公司（这些公司来自有投资壁垒的被分割的市场）的股票价格可望上升，但因这些壁垒的消失而出现的另外的内在风险溢价会使这些股票预期收益下降。（Harcs and Ramanlal，1998）。操纵收益的因素还包括投资者认同感的流动性。Doidge，Karolyi and Stulz（2003）认为一种备择的解释与所有权集中有关。与未在美国上市的公司的控投股东相比，在美国上市的公司的控股股东不能从对公司的控制中获取同样多的个人利益，而且交叉上市公司还可能利用增长机会。因此，交叉上市公司会成为其利益同小股东的利益更为一致的公司。进人海外市场或许是对交叉上市公司小股东进行更好的保护。     

Taxes and money in incomplete financial markets

Abstract We analyze a model with incomplete financial markets, where money is needed to pay taxes. Equilibria exist, are typically regular and not Pareto optimal. Moreover, generically, there exists a redistribution of money among households which leads to a Pareto superior equilibrium. The intervention occurs only in the first period and it does not require either closing markets or upper bounds on the number of households. Mathematics Subject Classification (2000): 91B50 Journal of Economic Literature Classification: D52, D60, E50, H20     

The dynamic specification of the modified pecking order theory: Its relevance to Italy

This paper proposes an empirical model for the modified pecking order theory (MPO) in which both trade-off (TO) and pecking order (PO) models are nested. The MPO model is specified as an error-correction mechanism and applied to a vast panel data-set. Unlike previously estimated financial models, it avoids a number of problems: the mis-specification of dynamics, the approximation of the target leverage using the historical mean, the constrained estimation of the free cash flow components in a unique parameter. The MPO model is particularly good at explaining “hybrid” systems (neither market-based nor bank-based) such as the Italian one, in which companies are a mixture of two types: TO-type firms with a long-term optimal debt ratio towards which they converge; PO-type firms for whom the short-term availability of internal funds for investment may interfere with the process of adjustment towards the target leverage. Finally, the MPO model enables us to separately test the individual relevance of each of the restricted (“pure”) TO and PO models: results confirm their mis-specification and clearly point towards the excellent empirical performance of the MPO model. First version received: May 2000/Final version received: September 2000