Fundamental analysis of stocks by two‐stage DEA

Fundamental analysis of stocks links financial data to firm value in two consecutive steps: a predictive information link tying current financial data to future earnings, and a valuation link tying future earnings to firm value. At each step, a large number of causal factors have to be factored into the evaluation. To effect these calculations, we propose a new two‐stage multi‐criteria procedure, drawing on the techniques of data envelopment analysis. At each stage, a piecewise linear efficiency frontier is fitted to the observed data. The procedure is illustrated by a numerical example, analyzing some 30 stocks in the Spanish manufacturing industry in the years 1991–1996. Copyright © 2004 John Wiley & Sons, Ltd.     

The market orientation concept in the private nonprofit organisation domain

The market orientation concept has become one of the central issues of scientific and entrepreneurial study in the marketing discipline. In fact, the theoretical and empirical contributions to this field of research have proliferated in various contexts throughout the last decade. One domain, however, in which market orientation investigation has been relatively limited until recently, is in private nonprofit organisations. Thus, the main purpose of this paper is to delimit the market orientation concept in the private nonprofit organisation context. The alternative basic orientations adopted by these organisations are first assessed in order to specify next the meaning of market orientation from a dual perspective: as an organisational philosophy and culture, and as an organisational behaviour. Copyright © 2002 Henry Stewart Publications     

Cross-Validation Study with Confirmatory Factorial Analysis of the Revised Legal Attitudes Questionnaire Scores

The present article establishes the factorial structure of the Legal AttitudesQuestionnaire, one of the most frequently used measurements for the studyof legal authoritarianism, in several Spanish samples consisting of a communitypopulation (N1 = 618 and N2 = 533). In study 1, confirmatory factorial analysesare carried out by LISREL for different models, based on theory and on previousexploratory analyses. In study 2, based on the models selected in study 1, across-validation study is carried out by multigroup analysis. The structure thatappears to be most adequate is the one based on two trait factors (authoritarianismand anti-authoritarianism) and one of method, in which the tendencies of the participants' answers are included     

Audit opinions and information asymmetry in the stock market

This study analyses the relationship between the content of the audit reports and information asymmetry levels in the stock market for a sample of Spanish firms. By implementing an association study, we document (1) that firms with audit qualifications show higher information asymmetry levels than those with unqualified opinions; (2) firms with non‐quantified qualifications show higher informational asymmetry than firms with quantified qualifications; and (3) we find a stronger effect on the level of informational asymmetry in the case of going concern qualifications. Our findings suggest that audit qualifications reporting more uncertainty on firm accounting statements result in higher adverse selection risk.     

Retaining a Mexican Labor Force

This paper sets forth the findings of a research study undertaken in Chihuahua, Mexico. The length of stay of 1 866 employees in six maquiladora plants is analyzed across a maximum of 24 months. By drawing on discrete time hazard modeling, the research analyzes the extent to which work and nonwork factors contributed to employee length of stay in the late 1980s. It examines, in particular, the influence of position, cohort grouping, plant type, and demographic characteristics on employee duration in the participating plants.The findings show that line operators at the peak of high employment turnover in the maquiladora industry remained employed for an average of 10 months. The study highlights important differences, for the results were not uniform across all maquiladora employees. There were variations in length of stay among employees of different types of plants, in different positions in the same company, different months of entry, and different migrant status.Important ethical issues can also be raised from the study, notably the question of structural turnover being intentionally designed as a consequence of the hiring policies of the multinational corporations in the area.     

The post-industrial landscapes of Riotinto and Almadén,Spain: scenic value,heritage and sustainable tourism

The Riotinto and Almadén mining areas in Spain are two of the best examples of European experiences in restoring the heritage of traditional mining activities. Initially promoted by public administrations, particularly municipal bodies, with the active participation of private companies and the local community, these projects are an international reference in the protection and preservation of the mining-industrial heritage and the tourist use of buildings, machines and landscapes.     

Real Earnings Management and Information Asymmetry in the Equity Market

The literature suggests that real earnings management (REM) activities can increase adverse selection risk in capital markets. Due to their opacity and the difficulties in understanding their implications, REM strategies may increase the level of information asymmetry among investors. This paper examines the association between earnings management through real activities manipulation and information asymmetry in the equity market. To estimate the level of adverse selection risk we use a comprehensive index of information asymmetry measures proposed by the market microstructure literature. For a sample of Spanish listed firms, we find that firms’ strategies of increasing earnings through REM are associated with higher information asymmetry in those firms that meet last year’s earnings. Our findings are consistent with the hypothesis that earnings management through real activities manipulation garbles the market, enhances private information production, and exacerbates information asymmetry in the stock market.     

Exponential environmental productivity index and indicators

The major contributions of this paper are twofold. First, it introduces an exponential environmental productivity indicator and its ratio-based counterpart constructed through an exponential distance function. These innovative exponential environmental productivity index and indicator inherit the basic structure of both Malmquist-Luenberger productivity index and environmental Luenberger productivity indicator. Thereafter, an exponential version of the environmental Luenberger-Hicks-Moorsteen productivity indicator is proposed. Such a specification allows to overcome the special issue of infeasabilities. Second, looking from a dynamical viewpoint, we propose an exponential generalized dynamical distance function. This new efficiency measure shows the degree of efficiency of an observation, taking into consideration its technical efficiency and/or technological variation adjustment path. A sample of 11 representative French airports is considered over the period 2008–2011, in order to implement these new exponential environmental productivity index and indicators.     

Disclosure Strategies and Cost of Capital

Theoretically, companies disclosing more voluntary information will benefit from a lower cost of capital, although empirical research provides inconclusive results. Our study aims to analyze the influence of the disclosure of forward‐looking information on the cost of capital, because this information is extremely useful for investors. Results show that only specific information on actions, programs, decisions, and/or quantitative financial information helps toward the reduction of cost of capital. This evidence has direct economic implications, because it enables regulators and managers to focus on those disclosure strategies that are effective in the reduction of cost of capital. Copyright © 2012 John Wiley & Sons, Ltd.