Human capital and agency effects on CEO compensation of IPO biopharmaceutical firms and the market’s response

This paper examines the determinants of base pay and total incentive compensation packages of CEOs of biopharmaceutical firms that have recently gone public, and whether human capital and agency factors affect the market’s response to the initial public offering. We find that in terms of net proceeds, the IPO market appears to reward the firms that have founder-CEOs and CEOs with higher incentive compensation. CEOs with prior venture capital experience are associated with receiving higher incentive compensation, while CEOs with a greater ownership interest in the firm receive lower incentive compensation but higher salaries. CEOs of firms with a greater percentage of insiders are associated with lower salaries. The results should add to our understanding related to human capital and agency theories, as well as help firms and investors better understand and structure CEO compensation.     

Consumer Awareness, Understanding and Usage of Unit Pricing

The debate continues over whether prescribed quantities or unit pricing offers the best method to enable consumers to make value-for-money comparisons. In theory, the 'informed' consumer should benefit from being given unit-price information to identify optimum purchases; in practice, however, it would appear that many consumers do not use the data. Although unit pricing can reduce the level of confusion caused by large product ranges and large numbers of unique size–price combinations, results of a survey of over 1000 people showed that: 31% of the sample did not understand how unit pricing was meant to help them compare products; 35% could not be bothered to look at unit prices and 28% stated that unit pricing was too difficult to use. Those least likely to look at unit prices are women, the least educated and consumers aged 18–34. The research investigated why consumers do not use unit-price information and found: some consumers do not possess the cognitive ability to process the information and feel unit pricing is too complicated to use; some products are not comparable, which makes unit prices misleading; many shops do not provide unit-price information; unit-price information was felt unnecessary when evaluating products with few or no alternative sizes or brands; unit-price comparisons take too much time; consumers use simpler strategies for getting value for money, e.g. volume discount heuristic, own brands, special offers, x% free, reward points, etc. The paper explores policy and retailer implications for unit pricing and examines recommendations for government.     

Understanding changes in Māori incomes and income inequality 1997–2003

This paper examines recent changes in weekly income levels and dispersion for Māori, New Zealand’s indigenous ethnic group. Changes in the Māori income distribution between 1997 and 2003 reflect rapid increases in economic growth and employment rate. A reduced proportion of people had zero or benefit-level incomes and a higher proportion had high incomes. Income inequality declined for working-aged Māori and was stable for employed Māori. The average income gap between Māori and Europeans declined. The increased Māori employment rate during this period was the single most important driver of changes in the Māori income distribution.

Changes in HIV/AIDS knowledge and testing behavior in Africa: how much and for whom?

Demographic and Health Survey data from nine African countries make it clear that HIV/AIDS prevention knowledge has been increasing. Still, in many cases, fewer than half of adult respondents can identify specific prevention behaviors. Knowledge is lowest in rural areas and among women. HIV testing generally remains rare but is highly variable across countries, likely reflecting differences in the supply of testing services. In most cases, schooling and wealth impacts on prevention knowledge have either been stable or have increased; hence, in the majority of contexts, initial disparities in knowledge by education and wealth levels have persisted or widened.

Generalized Expected Utility, Heteroscedastic Error, and Path Dependence in Risky Choice

We evaluate the fit of several generalized expected utility models under homoscedasticity and three different heteroscedastic error structures for the data set first reported in Hey and Orme (1994). Standard chi-squared tests are used for nested tests, and both the Akaike (1973) information criterion and its consistent version (Hurvich and Tsai, 1989) are used for non-nested ranking of these models. A testing framework is developed that explicitly accounts for the path-dependent nature of the model selection problem. Not only does the selection of preference models depend on the error structure assumed, but the reverse is also true: the selection of the error structure depends on the preference structure assumed. An erratum to this article is available at .     

Estimating chance reproducibility in Guttman Scaling

A definition of reproducibility in Guttman Scaling and two chance measures of reproducibility are suggested. The first measure assumes that the items are independent. The second method assumes nonindependent items and fits respondent and item margins by an iterative method used in fitting log-linear models. Chance reproducibility is conceptualized in terms of assumptions about respondent variability.     

The South Australian Prohibition of Discrimination Act and Racism

The effectiveness of the South Australian Prohibition of Discrimination Act is examined with respect to its effect on individual and institutional racism. It is concluded that the act only deals with individual racism and not the less overt aspects of institutional racism; for example the latter still exists in poor standards of health, housing, and education. For a significant improvement in race relations in Australia there needs to be a wider guarantee against discrimination to cover both individual and institutional racism. It is suggested that the Australian government's Bill of Rights and Racial Discrimination Bill be examined in this light.     

Family size and children’s education in Vietnam

Data from the nationally representative 1994 Inter-Censal Demographic Survey are used to examine the association between family size and children s schooling in Vietnam. The data provide information on several education measures for all children over age 10, including children no longer residing in the household. Although a clear inverse bivariate association between family size and children s school attendance and educational attainment is evident, multivariate analysis controlling for urban/rural residence, region, parents’ education, household wealth, and child’s age, reveals that much of this association, especially that predicting educational attainment, is attributable to these other influences. Moreover, much of the effect that remains after statistical adjustment for the other influences is seen mainly at the largest family sizes. We consider the implications of these findings for current population policy in Vietnam and the possible features of the Vietnamese context that might account for the modest association.