Schooling as a Lottery: Racial Differences in School Advancement in Urban South Africa

This paper analyzes the large racial differences in progress through secondary school in South Africa. Using recently collected longitudinal data we find that grade advancement is strongly associated with scores on a baseline literacy and numeracy test. In grades 8-11 the effect of these scores on grade progression is much stronger for white and coloured students than for African students, while there is no racial difference in the impact of the scores on passing the nationally standardized grade 12 matriculation exam. We develop a stochastic model of grade repetition that generates predictions consistent with these results. The model predicts that a larger stochastic component in the link between learning and measured performance will generate higher enrollment, higher failure rates, and a weaker link between ability and grade progression. The results suggest that grade progression in African schools is poorly linked to actual ability and learning. The results point to the importance of considering the stochastic component of grade repetition in analyzing school systems with high failure rates.     

An exploratory study of gambling motivations and their impact on the purchase frequencies of various gambling products

The global gambling industry is huge and gambling has become a leading leisure activity in many countries. Although research on gambling is extensive, many gaps remain. The objective of this exploratory study was to examine how motivations for regular gambling varied by the forms of game played. Using data collected by the U.S. National Gambling Impact Study Commission, the study found that regular gamblers were motivated to gamble to win and to fulfill their sense of excitement/challenge for some gambling products like lottery, racetrack betting, and casinos. For others, such as bingo and card room games, they were motivated to gamble more for social reasons. The findings have important implications to marketers and public policy makers. © 2007 Wiley Periodicals, Inc.     

Coping with an emerging market competition through strategy-human resource alignment: case study evidence from five leading Japanese manufacturers in the People's Republic of China

This paper documents how PRC-based Japanese affiliates can align their human resource management (HRM) policies and practices with their business strategies based on in-depth interview surveys of the five leading Japanese manufacturers in China. In particular, using a multiple-informant research design to interview both top and human resource managers in each site, the study has attempted to clarify the strategic fit between the business strategies pursued and HRM practices adopted in China. Our interviews with top management for each affiliate revealed three types of business strategies that the PRC-based affiliates adopt to gain competitiveness in the Chinese market. Separate interviews with HR managers further clarified that affiliates' HRM efforts are aligned with the strategy each affiliate is pursuing. The findings are used to suggest several hypothesized relationships between the particular strategies pursued and the HRM practices adopted in China. Furthermore, this study has provided some important insights as to how the choice of affiliate-level business strategies in China affects the ‘hybridization’ processes of the HRM policies and practices used in the cross-national business environment.     

Barriers to the Implementation of Corporate Social Responsibility in Gaming Industry

Corporate Social Responsibility (CSR) is an important tool to reduce the adverse impact of the gaming industry. There were very limited studies specifically analyzed barriers of CSR practice in the gaming industry. This study adopted in-depth interviews and verified the interviews by dividing two informant groups. The results showed that cognitive dissonance, negative image, management dilemma, resources limitation, confused regulations, and unsustainable impetus were the major barriers in CSR implementation. Furthermore, the practical recommendations and suggestions were discussed.     

Measuring productivity growth, technical progress, and efficiency changes of CPA firms prior to, and following the Sarbanes–Oxley Act

This paper investigates productivity growth, technical progress, and efficiency change for a group of the 56 largest CPA firms in the US from the period 1996–1999 through the period 2003–2006, where the former preceded, and the latter followed, enactment of the Sarbanes–Oxley Act (SOX). Data envelopment analysis (DEA) is used to calculate Malmquist indices of three measures of interest: productivity growth, technical progress, and efficiency change. Results indicate that CPA firms, on average, experienced a productivity growth of approx. 17% from the pre- to post-SOX period. Consistent with the finding of Banker et al. [Banker RD, Chang H, Natarajan R. Productivity change, technical progress and relative efficiency change in the public accounting industry. Management Science 2005;51:291–304], this productivity gain can be attributed primarily to technical progress rather than a change in relative efficiency. In addition, results indicate that the “Big 4” firms underperformed their non-Big 4 counterparts in both productivity growth and technical progress.     

Identifying macro-determinants of remittance flows to a developing country: The case of Uganda

This paper employs minimum Lagrange Multiplier (LM) unit root tests for endogenous structural breaks combined with ARCH and GARCH models to investigate how key macrovariables impact diaspora remittances. Since remittances can reverse-cause exchange rate movements and domestic income, we use changes in the world price of oil denominated in U.S. dollars to proxy movements in the Uganda shilling nominal effective exchange rate. To control for endogenous bias between remittances and income, we use rainfall shocks as proxies for income shocks in a non-oil-producing developing economy dominated by agricultural sector and its related activities. In addition, large movements in oil price and rainfall shocks typically cause large supply shocks that can significantly impact size of remittance inflows. We control for interest rate differential, political business cycles and seasonality. Results indicate that accounting for structural change in intercepts (levels) and slopes (trends) of key macroeconomic determinants of remittances around their major structural break points significantly increases their explanatory power. In particular, positive (negative) innovations in income and depreciation (appreciation) in the currency of a recipient developing country are negatively (positively) correlated with remittance inflows. These results are robust across different model specifications.     

COSTS AND BENEFITS OF AIR QUALITY IMPROVEMENT IN HONG KONG

A respiratory health survey conducted in Hong Kong in 1989 identified significant health differences between school age children living in an industrial area with poor ambient air quality and those in a control group living in a relatively clean area. In 1990, the government banned the use of high sulphur fuel. As a result, ambient sulfur levels dropped sharply and particulate levels dropped moderately. The avoided costs of doctor consultations alone offset a moderate fraction of the costs of this air quality improvement. If even the lower end of estimates from elsewhere apply to Hong Kong's willingness to pay for symptom relief, such values offset a major share of the costs of the air quality improvement simply through near-term improvements in health. Considering longer-term health and other benefits leads one to conclude that the economic benefits likely far outweigh the costs.     

Bank selection and share of wallet among SMEs: Apparent differences between Hong Kong and Australia

This paper examines the factors that small- to medium-sized enterprises (SMEs) in Hong Kong consider when selecting a banking partner, and the extent to which they use different banks (share of wallet). The findings are contrasted with those from another study of Australian business. The results show that firms in both countries view a bank's willingness to accommodate their banking and credit needs as being important. Hong Kong firms appear to give this factor higher priority when making their bank selection, while Australian firms appear to place higher emphasis on long-term relationships. Australian firms appear to have a more stable relationship with their primary bank as compared to the firms in Hong Kong where switching behaviours are found to be common. While ‘guanxi’ is often seen as critical in maintaining a business relationship in the Asian context, this study suggests it has limited impact for SMEs in Hong Kong in increasing share of wallet. The findings offer marketing implications for banks that are operating, or are planning to operate, business banking in both places.