An application of the extended cross impact method to generating scenarios of social change in Japan

Scenarios of Japanese society in 2000 are obtained by applying an extended correlational cross impact analysis. Since the scope of the scenarios is extensive, a procedure is developed to generate the scenarios that consists of a preprocessing of the events of interest and a step-by-step application of a cross impact method. Three scenarios are described, based on a workshop where the procedure was applied.     

Entry and capital structure mimicking in concentrated markets: The role of incumbents’ financial disclosures

We examine whether the public availability of product market incumbents' financial disclosures leads to greater capital structure mimicking of incumbents by entrants. Exploiting a change in disclosure enforcement for German private firms in the mid-2000s, we find entrant-incumbent mimicking rises substantially in concentrated markets once incumbents' financial statements are publicly available. Additional tests exploring potential mechanisms are more consistent with interfirm learning underlying the effect than alternative channels. Our findings shed light on the effects of competitor financial statement disclosure on private firms’ initial financing decisions and highlight how capital structure dependencies among peer firms arise.     

Repeated signaling games

I analyze a class of repeated signaling games in which the informed player's type is persistent and the history of actions is perfectly observable. In this context, a large class of possibly complex sequences of signals can be supported as the separating equilibrium actions of the “strong type” of the informed player. I characterize the set of such sequences. I also characterize the sequences of signals in least cost separating equilibria (LCSE) of these games. In doing this, I introduce a state variable that can be interpreted as a measure of reputation. This gives the optimization problem characterizing the LCSE a recursive structure. I show that, in general, the equilibrium path sequences of signals have a simple structure. The shapes of the optimal sequences depend critically on the relative concavities of the payoff functions of different types, which measure the relative preferences towards payoff smoothing.     

A comparative study on the effectiveness of English-medium and Turkish-medium accounting education: Gazi University case

The authors explore the effect of medium of instruction on students' attainments at a large state university in Turkey in the Department of Business Administration. The findings indicate no statistically significant difference in grades of 386 students with respect to medium of instruction. As for entry rankings however, those in the English-medium program who had higher scores on the university entrance exam appeared to be more successful. It may be concluded that English-medium instruction is not a disadvantage in attaining learning objectives.     

Countries’ adoption of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) – early empirical evidence

The International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) is increasingly being adopted in a number of jurisdictions. Despite the economic importance of non-publicly accountable entities, little is known about what factors influence countries' decisions to adopt IFRS for SMEs. In a unique sample of 128 countries, we find that countries that are not capable of developing their own local generally accepted accounting principles are more likely to adopt IFRS for SMEs. We also provide evidence that in jurisdictions where full IFRS have been applied to private firms, the likelihood of adoption of IFRS for SMEs increases, suggesting that jurisdictions reduce the financial reporting burden on SMEs. Moreover, in line with prior literature, there is evidence that countries with a relatively low quality of governance institutions are more likely to adopt this new set of accounting standards. The results also hold under alternative measures and different estimation approaches. Overall, our results are helpful in understanding the worldwide diffusion of IFRS for SMEs. Standard setters and regulators might consider our study in the future development of accounting harmonisation of non-publicly accountable entities.     

Behavioral mechanism design: evidence from the modified first-price auctions

This paper tests the behavioral equivalence of a class of strategically-equivalent mechanisms that also do not differ in terms of their procedures. In a private value setting, we introduce a family of mechanisms, so-called Mechanism (α), that generalizes the standard first-price sealed-bid auction. In Mechanism (α), buyers are asked to submit a value which will then be multiplied by α to calculate the bids in the auction. When α =?1, Mechanism (α) is the standard first-price sealed-bid auction. We show that for any α, calculated bids should be identical across mechanisms. We conduct a laboratory experiment to test the behavioral equivalence of this class of mechanisms under different values of α. Even though the procedure and environment do not change across auctions, we do not observe the same bidding behavior across these strategically-equivalent mechanisms. Our research can inform mechanism design literature with respect to the design of optimal mechanisms.     

The impact of taxes and wasteful government spending on giving

We examine how taxes impact charitable giving and how this relationship is affected by the degree of wasteful government spending. In our model, individuals make donations to charities knowing that the government collects a flat-rate tax on income (net of charitable donations) and redistributes part of the tax revenue. The rest of the tax revenue is wasted. The model predicts that a higher tax rate increases charitable donations. Surprisingly, the model shows that a higher degree of waste decreases donations (when the elasticity of marginal utility with respect to consumption is high enough). We test the model’s predictions using a laboratory experiment with actual donations to charities and find that the tax rate has an insignificant effect on giving. The degree of waste, however, has a large, negative and highly significant effect on giving.

     

Energy analysis of Japanese industries : A time series analysis

Characteristics of Japanese industries in the past 15 years have been investigated in terms of energy intensities, or energy directly and indirectly spent for production of a unit output in industries. The methodology of the analysis is similar to that by Herendern, that is an extension of input-output approach, but with various modifications. Data are seven input-output tables, of about 400 x 400 items published by the Japanese government. Changes in energy intensities with time are disaggregated into two factors, 1) changes in direct energy intensities and 2) changes in nonenergy resource use or in the ratios of value added taxes. Observation of these factors in the last 15 years reveals that the latter factor has been highly significant in energy conservation, especially in machine industries, the raw materials of which are mainly iron and steel. It is also observed that conventional energy conservation efforts have scarcely been dependent on nonenergy resource conservation.     

Development Aid to Agriculture and Economic Growth

The link between foreign aid and economic growth has been a controversial issue with no strong consensus so far. This paper argues that a possible reason why some studies may conclude that aid is ineffective in promoting economic growth might be that not all aid is given for development purposes (i.e. aid given for strategic considerations, humanitarian reasons or emergency relief). This study classifies foreign aid into four subcategories: agricultural aid, social infrastructure aid, investment aid, and non‐investment aid. Using the generalized method of moments (GMM) estimation technique on a Barro type growth regression with panel data from the aid recipient economies, this paper finds that when aid is directed to the agricultural sector of the developing countries, it is positively and significantly related to growth and can affect economic growth in the short run.