Corporate Diversification,Information Asymmetry and Insider Trading

The literature suggests that corporate diversification destroys firm value. This value destruction is usually considered to be a consequence of managers' pursuing diversification strategies to benefit themselves rather than to increase firm value. This paper provides evidence that casts doubt on this agency theory‐based explanation for corporate diversification. Evidence based on insider trading suggests that managers themselves consider their diversification strategies to be value‐increasing. Specifically, it is documented that corporate insiders (directors) purchase more of their firms' shares in the open market when corporate diversification is high. Moreover, insiders purchase more when the level of diversification discount is high, suggesting that they disagree with outside investors' undervaluation due to diversification. It is also found that the market reaction to insiders' purchases is positively related to corporate diversification. This result suggests that outsiders consider the amount of favourable information contained in insiders' purchases to increase with the extent of corporate diversification.     

One size does not fit all: Entrepreneurial families’ reliance on family offices

Family offices are organisations dedicated to the management of entrepreneurial families’ private wealth. Based on agency theory, we analyse types of family offices with regard to the families’ goals and the control mechanisms used to ensure goal achievement. Family-dominant management and private client structures involve stronger emphasis on non-financial goals in single and multi-family offices than in non-family-dominant management and open client structures. Variations in family involvement, ranging from family dominance to the complete absence of family ownership and/or management, and diverse client structures justify the differential reliance on formal and informal control mechanisms.     

Measuring social indicators in opinion surveys: A method to improve accuracy on sensitive questions

Asking sensitive questions, without risking a terminated interview or response bias, is a major problem in deriving accurate social indicators based on public opinion surveys. This problem has become particularly acute as the topics that interest researchers have become more personal in nature. Mail and telephone surveys, and methods such as the randomized response technique, have all been used to try and overcome this problem, with varying degrees of success. In this paper, we describe an alternative approach using a sealed booklet. We report results from a question-format experiment that asked respondents the same sensitive questions in a sealed booklet, completed in the presence of the interviewer, and in a standard face-to-face interview. The survey used for the experiment was a personal interview survey of drug use based on a national population sample. The sealed booklet format was found to produce more accurate estimates of drug use compared to direct questions. In addition to assuring the respondent greater anonymity, the sealed booklet permits a wide range of questions to be asked and does not limit the analyses that can be conducted on the data.     

The uses and users of population projections in Australia

It is widely recognized that population projections are increasingly used in formulating policy in many public and private sectors. However, little information exists on the nature of the projections or their users. This paper reports the results of a survey conducted to rectify this situation. The results confirm that the applications of projections are very broad and that the prime area of increase has been in small-area projections. At this level many users make their own projections rather than use official projections and the paper reviews the methodology used to make these projections. A number of suggestions are made for improving communication between national and subnational producers and local users. We would like to thank the Australian Population Association, and in particular the Secretary, Dianne Rudd, for providing us with address labels of members of the Association. We would also like to thank the Australian Bureau of Statistics, in particular Shail Jain, for advice on the development of the questionnaire. The comments of the two anonymous referees were very helpful. Finally we wish to thank our respondents for their co-operation, and especially those who wrote to encourage us in this work.     

The determinants of the duration of contraceptive use in China: A multilevel multinomial discrete-hazards mdeling approach

Often in demography, individuals may change state over time for a variety of reasons. Competing-risks hazards models have been developed to model such situations. This paper describes the extension of the discrete-time competing-risks hazards model to a multilevel framework that allows for data at different levels of aggregation. The model is illustrated with data from the 1988 Chinese National Survey of Fertility and Contraceptive Prevalence, which collected complete contraceptive histories. Women may stop using a method of contraception for a number of reasons; this paper describes how one can control for correlations between the outcomes of repeated spells of contraceptive use.     

Entrepreneurial Cognition,Entrepreneurial Orientation and Firm Capability in the Creative Industries

Creative industries are firms which are characterized largely by the labour inputs of creative individuals, and surrounded by a degree of rhetoric as to their significance, but are a comparatively under‐researched sector. In this study we developed a research framework which integrated entrepreneurial cognition, entrepreneurial orientation and firm capabilities and explored the relationships between these variables, market conditions and the performance of small creative industry enterprises. The data suggest that high growth small firms are characterized by well‐developed internal capabilities allied to an entrepreneurial orientation and that the combination of the various sub‐attributes associated with each of these appear to be especially salient under conditions of intense competition. The policies, managerial and educational implications of the findings are discussed.     

Developing Models for Day Services

This paper reports an evaluation of a rural activity project for people with learning difficulties. The project is situated in (but not a regular part of) an agriculture college. Both statutory and voluntary interests are represented in the management of the scheme, which is funded by the All Wales Strategy for the Mentally Handicapped through the local authority. Despite the widespread presence of ideas about normalization and carer participation, key stakeholders in the project appeared to draw on various aspects of three different models in describing, assessing and participating in the work of the scheme: a training for work model, a personal and social growth model, and an education for life model. We explore the question of whether such contrasting views can be tolerated in a single project, and their implications for policy and practice decisions. Each model has its distinctive consequences for project aims, selection, programme planning, staffing requirements, future development objectives and desirable project outcomes. The debate has implications for the way in which policies of normalization are operationalized in and beyond the field of learning difficulties.     

The effect of residence in enclaves on civic concern: An initial exploration

Will those residing in urban enclaves—enclosed socially homogenous residential communities protected by private security—have a lower level of civic concern as compared to those who do not reside in such enclaves? Reich's (1991) work suggests that this is to be expected. To conduct an empirical test, two random samples were drawn from two areas of New York City, one a residential enclave—Battery Park City—the other a non-enclave—Chelsea. The analysis establishes that those who do not live in the enclave have a statistically significant higher level of civic concern. Sample respondent years of education, age, income, gender, and career (arts/business) differences were employed as control variables; after having introduced each control variable independently, the main research hypothesis was sustained.     

Towards a behavioral theory of systemic hypothesis-testing and the error of the third kind

Scientific ideas neither arise nor develop in a vacuum. They are always nutured against a background of prior, partially conflicting ideas. Systemic hypothesistesting is the problem of testing scientific hypotheses relative to various systems of background knowledge. This paper shows how the problem of systemic hypothesis-testing (Sys HT) can be systematically expressed as a constrained maximimization problem. It is also shown how the error of the third kind (E _III) is fundamental to the theory of Sys HT.The error of the third kind is defined as the probability of having solved the ‘wrong’ problem when one should have solved the ‘right’ problem. This paper shows howE _III can be given both a systematic as well as a systemic treatment. Sys HT gives rise to a whole host of new decision problems, puzzles, and paradoxes.