An Analysis of Thai Financial Reporting Practices and the Impact of the 1997 Economic Crisis

We focus on listed Thai companies between 1993 and 2002 to ascertain whether the 1997 economic crisis, which we refer to as an economic disturbance, had an impact on financial reporting practices. Both changes in measurement and disclosure practices are considered and the period of study is divided into three sub‐periods: the pre‐economic crisis period (1993–96), the economic crisis period (1996–98) and the post‐economic crisis period (1998–2002). The results show that there were significant increases in disclosure levels over the ten years but no substantial changes in measurement methods. This work takes on added relevance in the light of the recent (2007–08) economic bubble and subsequent financial crisis worldwide.     

Improving Productivity and Quality Through Collaboration

This study examines the impact of joint labor-management activities on perceived changes in productivity and quality, while controlling for the exercise of relative power options. Ordered probit estimates yield general support for the central proposition that the greater the intensity of joint activities, the greater the productivity and quality improvements. Mixed results are obtained regarding the impact of capital substitution, subcontracting, and concession bargaining on performance in collaborative settings.     

Consumer Search,Incomplete Exchange Rate Pass‐Through,and Optimal Interest Rate Policy

This paper studies utility‐maximizing monetary policy in a two‐country economy with consumer search frictions. Search frictions provide a microfoundation for incomplete exchange rate pass‐through and international deviations from the law of one price (LOP). I show that optimal interest rate policy targets deviations from the LOP and acts to mitigate the effect of search frictions. In a quantitative setting, with internationally correlated technology and preference shocks, optimal policy generates positive cross‐country correlation of nominal interest rates.     

Consistency,Value Relevance and Sufficiency of Book for Market Values in Five Japanese Conglomerates Over the Period 1950–2004

Market and accounting data for five Japanese conglomerates, Toyota, Fuji, Sony, Itochu and Sumitomo, are analysed over the period 1950 to 2004. Annual market value is regressed on three accounting and six macroeconomic variables, using a general‐to‐specific approach to construct simple error correction models for each of the five firms. The results show that in four of the five firms there is evidence of a long‐run relationship between market value and the net book value of assets, which can be interpreted, with increasing degrees of strength, as book values being either consistent with, value relevant for, or sufficient for market value.     

Integrating Human Resource and Technological Capabilities: The Influence of Global Business Strategies on Workplace Strategy Choices

Treating workplace strategies as the integration of human resource and technological capabilities, a typology of workplace strategy emphases is developed. The choice among these alternative workplace strategy emphases is treated as a function of market‐positioning priorities and the multinational scope of firms. Accordingly, a multinomial choice model is specified, which is tested against a sample of firms in the U.S. automotive supplier industry. The model obtains substantial empirical support. Among the findings is evidence consistent with the proposition that due to cross‐border, isomorphic constraints, multinational companies are less likely than national companies to pursue workplace strategies emphasizing human resource capabilities, choosing instead to favor the diffusion of workplace strategies emphasizing technological capabilities.     

On the Effectiveness of the Federal Reserve's Margin Requirement

A portfolio-theoretic model of the optimal margin account is developed. It is argued that the Federal Reserve's goal in setting the margin requirement is to influence investor equity ratios. Using the average equity ratio as the dependent variable and the arguments of the model as independent variables, an empirical model is estimated. It is concluded that the margin requirement is an effective regulatory tool.