Analysis of Beef Producers' Risk Management Perceptions and Desire for Further Risk Management Education

Beef cattle producers were surveyed in Texas and Nebraska to investigate perceptions of sources of risk, the effectiveness of risk management strategies, and interest in further risk management education, particularly production risk, using probit analysis. Important decision variables identified are age, prior use of risk management tools, previous attendances of risk management education, and risk aversion. Severe drought and cattle price variability are identified as primary risk factors with potential to affect farm income. Extremely cold weather and disease are of less importance. Understocking pasture and storing hay are perceived most effective as risk management options.     

DETERMINANTS OF GOODWILL AMORTIZATION PERIOD

This study investigates whether economic consequences have an effect on the length of the period over which goodwill is amortized. It finds that there is a significant relationship between the size of the firm and the length of the amortization period. It also finds, when the only firms included in the sample are those reporting debt covenant restrictions dependent in part on goodwill accounting, evidence that the length of the amortization period for goodwill is related to the firm's leverage.     

Political scrutiny and earnings management in the oil refining industry

The fortunes of the oil refining industry have historically been tied to the political process. In periods of high gasoline prices public outcry increases pressure on the political process to increase regulation, taxation, and other costs on the industry. This study explores the relationship of gasoline prices and oil firm earning with accounting earnings management of oil firms. Findings indicate that firms make accounting changes and discretionary accruals to decrease (increase) earnings in periods when gasoline prices and oil firm earnings are rising (falling).     

Auditor conservatism and voluntary disclosure: Evidence from the Year 2000 systems issue

This study further examines the phenomenon of conservative auditor behaviour by considering the level of voluntary disclosure of Year 2000 remediation information in company annual reports. Previous studies have provided evidence of conservative auditor behaviour by examining the link between Big 6 auditor choice and accruals (Francis and Krishnan 1999; Becker et al ., 1998; Defond and Subramanyam 1998). Protecting their reputation capital increases Big 6 auditor incentives to act conservatively to avoid litigation risk. We propose and find that Big 6 auditor clients disclose more Year 2000 remediation information than non–Big 6 auditor clients.     

中国地产商遇寒冬 海外资本觊觎收购

【英国路透社9月9日】针对中国房地产项目的争夺将在未来数月中大为活跃，因诸多中国房地产开发商在楼盘销量大跌及资金链紧张的困境夹击下只能苟延残喘。     

Economic analysis of the impact of adopting herd health control programs on smallholder dairy farms in Central Thailand

The economic impact of adopting herd health programs for mastitis and reproduction by small-scale dairy producers of Central Thailand was assessed using a policy analysis matrix (PAM). Following a reduction in the incidence of bovine disease on adopter farms, an increase in private net profits is observed. More importantly the social costs of supporting dairy farmers is reduced; the PAM effective protection coefficient was reduced by 35% for mastitis program adopters and by 44% for reproductive program adopters, indicating improved social efficiency of dairy policy. Other indicators of efficiency and policy implications are discussed.     

The impact of corporate strategy on the capital structure of Australian companies

Research into the capital structure of firms has been the subject of extensive empirical investigation but further progress may be constrained by the conventional paradigm underlying most of this work. This paper seeks to extend the debate by examining the endogenous influence of corporate strategy on financing decisions made by firms. While the theoretical specification of the possible relationship has to be developed further, various models were constructed and company data from Australia, an economy with some notoriety for fairly loose corporate debt management, was used to examine various hypothesized relationships. Our analysis suggests that corporate strategy influences capital structure, particularly for the most diversified firms, and that the emerging relationship is complex. Profit, cash flow, the rate of growth and the level of earnings risk are important additional internal influences on capital structure. The results are reasonably robust and indicate that this focus of enquiry has considerable potential for further resolution of the capital structure puzzle, as well as contributing to the debate on the impact of institutional shareholders on the corporate strategy of the firms in which they invest.     

Directors'' remuneration in the theory of the firm: Specification and testing of the null hypothesis

One basis for the managerial theories has been the strong correlation between firm size and executive remuneration. This may, however, simply reflect variations in managerial quality across firms. We also show that the absence of a correlation between profitability and remuneration is not evidence in favour of the managerial theories. In this paper we follow the rewards to individual U.K. managers over time, thereby controlling for quality variation. We conclude that growth is highly rewarded and involvement in mergers and takeovers attracts an extra premium. This may explain the continued popularity of mergers despite knowledge of their general unprofitability.