Structural constraints on organizational change: A longitudinal analysis

The results of a longitudinal study assessing the impact of internal constraints upon both organizational responsiveness to the environment and efforts to change structures for symbolic signaling of policy are presented. The causal model used is developed from a theoretical elaboration of Williamson, Thompson, and Meyer. The implications of the analysis for the signaling metaphor of organizational change are emphasized. The data indicate (i) that the varying resistance to change observed within core dimensions of organizational structure may be largely due to durable capital investments, (ii) that within capitalized dimensions of organizational structure, the resulting resistance to change leads to a longitudinal persistence of centralized decision making, and (iii) that failure to incorporate such constraints in analyses of organizational change leads to misleading results.     

Humor and cognitive responses to advertising stimuli: A trace consolidation approach

Despite the predictions of several attitude change theories, most empirical research suggests that humorous communications are no more persuasive than their serious counterparts. The present study adopted a trace consolidation theory approach and tested the hypothesis that humorous appeals are more persuasive than serious appeals when time for trace consolidation is allowed. The trace consolidation theory hypothesis was supported most directly by shifts in cognitive responses. On some measures, sex differences were also observed. Specifically, males were found to be more susceptible than females to the humorous persuasive appeal.     

Improving the effectiveness of persuasive communications: Matching message with functional profile

The functional approach to improving communication strategy has received little attention. This research attempts to partially correct this oversight by experimentally verifying the major functional hypothesis: matching message with functional profile brings about attitude change. Working adults were integrated into an experiment which was a before-after with control. The major functional hypothesis was confirmed at the 0.10 level. An associated hypothesis regarding the relative ease of changing value- expressive attitudes compared to utilitarian attitudes was confirmed at the 0.10 level. The results show the importance of matching message with functional profile and highlight the potential inherent in the functional approach.     

Semantics and capital market efficiency: Testing the market's reaction to the naming of stock distributions as splits or dividends

The AICPA and NYSE urge corporations to avoid the term “stock dividend” and use the term “stock split” when referring to large common stock distributions. Theoretically these large distributions do not convey any economic value to the stockholders. Therefore a rule was considered necessary so as not to mislead them as to the actual nature of the distributions. The purpose of this study is to examine security price reactions to the differential naming of these distributions. The results strongly suggest that security returns are not differentially affected by naming a large common stock distribution a stock dividend rather than a stock split. That is, the capital market appears to be semantically efficient between terminologies.     

Voting patterns of big eight representatives in setting accounting and auditing standards

The “Big Eight” accounting firms are alleged to dominate the setting of accounting and auditing standards. This paper identifies the recent criticisms and reviews the standard setting procedures of the APB, FASB, and the ASB. The results of five empirical studies designed to investigate the alleged domination issue are summarized. The conclusion drawn is that there is no empirical evidence to indicate that the Big Eight collectively govern the accounting and auditing standard-setting process.     

Carryover effects of advertising on sales of durable goods

In a landmark paper, Clarke [Clarke, D.G., J. Marketing Res. 13 (November 1976): 345–357] addressed the question of how long the carryover effect of advertising on sales persists. Appropriate cautions are included in the conclusions reached by Clarke since the preponderance of studies that he reviewed involved mature frequently purchased low-priced products. His conclusion is that, for such products, the carryover effect of advertising lasts a matter of months rather than years. The current study examines durable goods and provides preliminary evidence that for some durables, advertising effects may have a duration interval that exceeds a year.     

A framework for analyzing money stock control under the Monetary Control Act

This paper analyzes the money stock effects of the Monetary Control Act (MCA) under a nonborrowed reserve (NBR) operating procedure. Prior to the passage of the MCA, policy was conducted under an interest rate operating target where reserve requirement reforms such as those introduced by the MCA had little influence on money stock variability. Under an NBR procedure however, the structure of reserve requirements may have a significant impact on monetary control. Our analysis indicates that the relative improvement in monetary control greatly depends on the degree of tightness exercised by the Federal Reserve over total reserves in an MCA regime. The tighter the control, the more significant the estimated monetary control benefits of the MCA under an NBR procedure.     

Ownership dispersion as a second-best counterstrategy against monopoly

A literature on second-best pricing as counterstrategy against monopoly has evolved in economics. The purpose of this paper is to demonstrate that ownership dispersion through forced divestiture can be more effective in restricting the social damage of monopoly. Economists generally hold an ordinal view of utility. To the extent that the second-best literature suggests the possibility of reducing dead-weight loss through counterpricing, most economics would accept counterpricing as welfare increasing and reject ownership dispersion. The example presented in this paper suggests that this mindset may cause us to overlook promising alternatives.     

The medical expense deduction and income levels: Progressive or regressive?

The medical expense deduction (MED) allows taxpayers to deduct from taxable income a proportion of their out-of-pocket medical insurance and health care expenses. Because the rate of subsidy is equal to the marginal tax rate previous studies have found MED to be a regressive tax mechanism biased toward benefiting higher-income taxpayers. The authors demonstrate, using GINI coefficients, that MED makes the tax structure more progressive than it would otherwise be and increases equality of after-tax incomes.     

Sales expectations and inventory changes in retail trade

In this paper a single equation inventory investment model is estimated for the United States retail sector. Monthly data for the 1970s are utilized. In estimating the model it is alternatively assumed that expectations were formed according to a seasonal model, to perfect foresight, and to a narrowly rational expectations model. We find that a model in which expected sales and the expected rate of inflation are narrowly rational can explain most of the variation in retail inventory investment during the time period studied. The results of the estimation imply that retailers have a relatively short forecast horizon, that they can react quickly to either unexpected sales or to a deviation of actual from desired inventory stocks, and that an increase in the real of interest has a statistically negative impact on retail inventory investment.