Managerial hubris, firm expansion and firm performance: Evidence from China

Examining Chinese publicly traded firms from 2002 to 2005, we find managerial overconfidence to be positively correlated with the rate of firm expansion. In particular, overconfident managers tend to internally expand firms in an aggressive manner. We also find a negative, though not statistically significant, relationship between managerial overconfidence and M&A activity. Lastly, we examine the relationship between managerial overconfidence and firm performance, finding that managerial overconfidence decreases firm profitability due to overinvestment.     

Two sets of isotones for comparing tests of exponentiality

Isotones   are a deterministic graphical device introduced by Mudholkar et al. [1991. A graphical procedure for comparing goodness-of-fit tests. J. Roy. Statist. Soc. B 53, 221–232], in the context of comparing some tests of normality. An isotone of a test is a contour of p$p$ values of the test applied to “ideal samples”, called profiles, from a two-shape-parameter family representing the null and the alternative distributions of the parameter space. The isotone is an adaptation of Tukey's sensitivity curves, a generalization of Prescott's stylized sensitivity contours, and an alternative to the isodynes   of Stephens. The purpose of this paper is two fold. One is to show that the isotones can provide useful qualitative information regarding the behavior of the tests of distributional assumptions other than normality. The other is to show that the qualitative conclusions remain the same from one two-parameter family of alternatives to another. Towards this end we construct and interpret the isotones of some tests of the composite hypothesis of exponentiality, using the profiles of two Weibull extensions, the generalized Weibull and the exponentiated Weibull families, which allow IFR, DFR, as well as unimodal and bathtub failure rate alternatives. Thus, as a by-product of the study, it is seen that a test due to Csörg? et al. [1975. Application of characterizations in the area of goodness-of-fit. In: Patil, G.P., Kotz, S., Ord, J.K. (Eds.), Statistical Distributions in Scientific Work, vol. 2. Reidel, Boston, pp. 79–90], and Gnedenko's Q(r)$Q(r)$ test [1969. Mathematical Methods of Reliability Theory. Academic Press, New York], are appropriate for detecting monotone failure rate alternatives, whereas a bivariate F$F$ test due to Lin and Mudholkar [1980. A test of exponentiality based on the bivariate F$F$ distribution. Technometrics 22, 79–82] and their entropy test [1984. On two applications of characterization theorems to goodness-of-fit. Colloq. Math. Soc. Janos Bolyai 45, 395–414] can detect all alternatives, but are especially suitable for nonmonotone failure rate alternatives.     

For Better or For Worse? State-Level Marital Formation and Risk Sharing

Why do some U.S. states have higher levels of marital formation than others? This paper introduces an economic model wherein a state’s representative individual may choose to marry in order to diversify his or her idiosyncratic income risk. The paper demonstrates that such a diversification motive is enhanced for some utility functions when a state’s level of undiversifiable risk becomes larger, and when a state’s initial income is lower. A test of the model’s predictions, using cross-sectional data for the 50 U.S. states, provides some suggestive evidence for a risk sharing motive in marriage formation and joint spouse labor participation.     

Evaluating the Relation of Vocal Accommodation in Conversation Partners' Fundamental Frequencies to Perceptions of Communication Quality

Previous acoustic analysis of fundamental frequencies from interview partners' voices revealed mutual accommodation of voice frequency and amplitude. These findings also showed partners' accommodation was associated with such attributes as social status. However, previous studies did not assess the function of partners' voice accommodation in extending general communication quality. The present study employs an experimental protocol wherein the fundamental frequency is included in some conversations and filtered from others to show, first, that partners do actively accommodate the fundamental frequency of their voices, and, second, that elimination of the fundamental frequency from conversation partners' voices profoundly alters perceived positive evaluations by judges overhearing the conversation. This experiment specifies an important auxiliary role for the fundamental frequency in nonverbal communication.     

Institutionalization and Well-Being Among the Elderly*

Iatrogenic, prosthetic, and other perspectives are used to derive hypotheses concerning the roles of perceived health and residence satisfaction in mediating the effects of nursing home institutionalization on subjective well-being. The findings show that perceived health and residence satisfaction are important intervening variables. Institutionalization has a positive effect on well-being, mediated by perceived health, but institutionalization has a stronger negative effect on well-being, mediated by residence satisfaction. Thus, institutionalization's total effect on well-being is negative. Theoretical and policy implications of these findings are discussed.     

Private lives,public accountability: A case study

Lend a Hand Children's Services is the most prominent provider of family services in rural south central Ohio. The agency is in the process of enlarging its fundraising goals and becoming even bigger in the community. Staff have brought to the attention of the vice president of the board that the board president and the executive director may be involved intimately as a couple. Inasmuch as the board president must evaluate the executive director, the vice president turns to trusted counsel for advice on how to approach the unique problems raised by the situation.     

Current issues in HIV disease and AIDS: Implications for health and rehabilitation professionals

HIV disease and AIDS are being redefined as chronic, long-term conditions that are suitable for vocational rehabilitation interventions. With the advent of more effective medical interventions, many individuals with these diseases are living longer and are interested in pursuing employment options. In this article, physiological and neurological symptoms, psychological and mental health issues, psychosocial issues affecting women, and employment-related issues and interventions are discussed as they apply to the health and rehabilitation practitioner working with individuals with HIV disease and AIDS.