Are the Best Small Companies the Best Investments?

Previous research finds that large companies previously judged to be excellent growth companies have subsequently been poor investments. We examine small companies selected by Business Week on the basis of multiple criteria used in annual articles featuring highly rated growth companies. We study the investment performance over the three years before eleven annual Business Week publications and the three years after publication. We find positive excess returns in the pre‐publication period, but negative excess returns in the post‐publication period. This reversal in investment performance appears to be due to a mean‐reversion tendency in operating performance, in which the earnings and the past rates of return on capital of such companies subsequently decrease significantly.     

Effect of sampling density on the measurement of stream condition indicators in two lowland Australian streams

There is widespread application of indicators to the assessment of environmental condition of streams. These indicators are intended for use by managers in making various comparative and absolute assessments and often have a role in resource allocation and performance assessment. Therefore, the problem of formally defining confidence in the results is important but difficult because the sampling strategies used are commonly based on a compromise between the requirements of statistical rigour and the pragmatic issues of access and resources. It is rare to see this compromise explicitly considered and consequently there is seldom quantification of the uncertainty that could affect the confidence a manager has in an indicator. In this paper, we present a method for quantitatively assessing the tradeoffs between sampling density and uncertainty in meeting various monitoring objectives. Assessments using judgement‐based representative reaches are shown to be unreliable; instead a sampling approach is recommended based on the random selection of measuring sites. A detailed dataset was collected along two streams in Victoria, Australia, and the effect of sampling density was assessed by subsampling from this dataset with precision related to the number of sites assessed per reach length and the intensity of the sampling at each site. The sampling scheme to achieve a given precision is shown to depend on the monitoring objective. In particular, three objectives were considered: (1) making a baseline assessment of current condition; (2) change detection; and (3) detection of a critical threshold in condition. Change detection is shown to be more demanding than assessing baseline condition with additional sampling effort required to achieve the same precision. Sampling to detect a critical threshold depends on nominating acceptable values of Type I and II error and the size of the effect to be detected. Copyright © 2006 John Wiley & Sons, Ltd.     

The colors of investors’ money: The role of institutional investors around the world

We study the role of institutional investors around the world using a comprehensive data set of equity holdings from 27 countries. We find that all institutional investors have a strong preference for the stock of large firms and firms with good governance, while foreign institutions tend to overweight firms that are cross-listed in the U.S. and members of the Morgan Stanley Capital International World Index. Firms with higher ownership by foreign and independent institutions have higher firm valuations, better operating performance, and lower capital expenditures. Our results indicate that foreign and independent institutions, with potentially fewer business ties to firms, are involved in monitoring corporations worldwide.     

The economic performance of the Russian economy in 2006 and a forecast for 2008–2010

This article examines the economic outcome of 2006 and builds a forecast for 2007–2010. The medium-term development risks of the Russian economy are analyzed.     

Use of electrochemical oxidation process as post-treatment for the effluents of a UASB reactor treating cellulose pulp mill wastewater.

The main purpose of this study was to evaluate the performance of the electrochemical oxidation process as a post-treatment for the effluents of a bench-scale UASB reactor treating simulated wastewater from an unbleached pulp plant. The oxidation process was performed using a single compartment cell with two plates as electrodes. The anode was made of Ti/Ru0.3Ti0.7O2 and the cathode of stainless steel. The following variables were evaluated: current density (75, 150 and 225 mA cm(-2)) and recirculation flow rate in the electrochemical cell (0.22, 0.45 and 0.90 L h(-1)). The increase in current density from 75 to 225 mA cm(-2) did not increased the color removal efficiency for the tested flow rates, 0.22, 0.45 and 0.90 L h(-1), however the energy consumption increased significantly. The results indicated the technical feasibility of the electrochemical treatment as post-treatment for UASB reactors treating wastewaters from pulp and paper plants.     

A case study of regional catchment water quality modelling to identify pollution control requirements.

There are four ecologically important river catchments that contain candidate Special Areas of Conservation (cSACs) under the Habitats Directive in the Lake District National Park located in the North of England. These are the rivers Ehen, Kent, Derwent and Eden. For each cSAC, there are defined ecological criteria that include water quality targets to protect the designated species. Stretches of the riverine cSACs in each catchment are failing to meet these and other water quality targets. The Environment Agency commissioned a study of each catchment to provide the underpinning scientific knowledge to allow it to deliver its statutory obligations under the Habitats Directive. SIMCAT river water quality models were produced and used to predict the water quality impacts resulting from a number of water quality planning scenarios aimed at achieving full compliance with the Habitats Directive and other national and EEC water quality targets. The results indicated that further controls on effluent discharges will allow the majority of targets to be met but other sources of pollution will also need to be controlled. The outcome of the study also recognised that water quality improvements alone will not necessarily produce the required improvement to the ecological interest features in each cSAC.