Settlement procedures and stock market efficiency

This study examines why most derivatives markets that settle on the day following expiration choose the opening rather than the closing price as the final settlement price (FSP), whereas most markets that settle on the expiration day select an average rather than a single price as the FSP. Four exogenous changes in the Taiwan Futures Exchange settlement procedures provide an experimental basis for studying the settlement procedures’ impact on underlying assets. Greatest market efficiency is observed when the FSP is determined by a single rather than an average price and hypothesize that manipulation is prevented at the expense of market quality.     

Auditors,Specialists, and Professional Jurisdiction in Audits of Fair Values

Auditors frequently use valuation specialists to help them evaluate fair values, but researchers and regulators know little about how auditors use these specialists. Based on interviews with 28 auditors and 14 valuation specialists, I develop a theoretical framework informed by expert systems and professional competition theories. The interviews suggest that institutional pressures in the fair value environment unevenly impact auditors and specialists, causing tension between auditors' needs for ontological security and jurisdictional claims. This tension leads to one-sided competition between auditors and specialists and incomplete acceptance of specialists' work. Auditors' competitive behaviors coupled with this incomplete acceptance result in a tendency to make specialists' work conform to auditors' views. Collectively, these findings suggest that auditors use specialists as an institutional mechanism to create comfort, but not insight. This study links expert systems and professional competition theories, and it provides critical insight into some assumptions underlying tenets of each theory. It also informs researchers, regulators, and practitioners interested in understanding and addressing problems related to the use of specialists.     

Reconciling Alternative Theories for the Safety of Owner–Operators

Motor carrier safety is an important concern of shippers, carriers, policy makers, consignees, insurance providers, and the motoring public. One aspect of carrier safety that has garnered substantial attention is whether carriers making greater use of owner–operators are more or less safe vis‐à‐vis carriers making greater use of employee drivers. Currently, conflicting theoretical predictions exist regarding the direction of this relationship. In this article, we offer a reconciliation of the alternative theoretical predictions by developing a coherent theory that merges sociological rational choice theory and theory regarding motor carrier safety. We subject our theory to empirical testing by fitting a series of seemingly unrelated regression models to a vector of safety measures tracked as part of the Federal Motor Carrier Safety Administration's Compliance, Safety, and Accountability program. Our results are consistent with our proposed theory of owner—operator safety and provide meaningful theoretical and managerial implications and directions for future research.     

CHILD SUPPORT IN THE U.S.: CAN FATHERS AFFORD TO PAY MORE?

This paper presents up-to-date estimates of the ability of non-resident fathers to pay child support. While no nationally representative data exist on the incomes of fathers, this issue has become more pertinent in recent years, as child support has become an important national issue. We find that fathers on average are able to pay nearly five times more in child support than they currently pay, and also that low income fathers can afford to pay substantially more than they actually pay. We also find that changes in nonmarital childbearing and the returns to education have had only minimal effects on trends in fathers' incomes.     

Racial differences in the feminization of poverty

The feminization of poverty refers to female householders and their children becoming an increasing percentage of the poor population. After examining effects of race on poverty of female-headed households from 1959 to 1989, this study investigates statistical relationships among female poverty, economic and labor market conditions, and transfer payments (specifically AFDC) by means of the Granger causality test over the period from 1966 to 1988. This study reinforces the plausible assumption that policies which would lower the unemployment rate of females and would increase real economic growth could be expected to reduce the number of poor female households.     

Influences of land use/cover on water quality in the upper and middle reaches of River Njoro, Kenya

Data from 10 sampling sites along the River Njoro are used to examine the contribution of nutrients from upstream land uses draining each of the sampling sites. The data also are used to assess whether both the proportion of land uses and the size of the subwatersheds account for the variability in water quality in the River Njoro watershed. Geographical Information System analysis was used to determine the spatial distribution of land‐cover types and subwatersheds contributing run‐off to the sampling sites in the River Njoro. Standard Digital Elevation Model‐based routines were used to establish the watershed area contributing run‐off to each sampling site. Water and sediment samples were collected for chemical analysis, and the nutrient levels were related to the upstream land‐use types and the size of the subwatersheds. The mid‐stream portion of the River Njoro (near Egerton University) accounts for the highest nutrient contributions. The percentage contribution is magnified by additions from industrial, human settlements and agricultural land uses around the University. There is a significant decrease in nutrient levels downstream, however, indicating natural purification as the river flows through an area of large‐scale farming with intense, well‐preserved riparian and in‐stream vegetation. Steep slopes of the land upstream of Egerton University enhance erosion and nutrient losses from those subwatersheds. Mixed small‐scale agricultural and bare lands contribute over 55% of the phosphorus load to the upper and mid‐reaches of the River Njoro. The size of the subwatershed accounts for about 53% of the variability in the soluble phosphorus in the river. The land‐use subwatershed proportions are important for characterizing and modelling water quality in the River Njoro watershed. Upland land uses are as important as near‐stream land uses. We suggest that conservation of intact riparian corridor along the river and its tributaries contributes significantly to natural purification processes and recovery of the ecological integrity of the River Njoro ecosystem.     

Rates of Return to Schooling in China

This study uses data from a 1988 survey of Chinese individuals to estimate rates of return to schooling in China. The Mincer-type rate of return to schooling was estimated at 4.02 percent in the rural areas and 3.29 percent in the urban areas; these are fairly low estimates compared with similar estimates in other countries. The rate of return to schooling for females was significantly higher than that for males in urban areas. In addition, members of the Communist Party in urban areas had significantly lower returns to schooling compared with non-members.