COGNITIVE STYLE AND THE USEFULNESS OF INFORMATION*

The desirability of a merger/acquisition alternative depends in part on the perceptions of the decision maker. What sources of information are “useful” to the decision maker & Does the set of useful information remain constant for all decision makers; if not, do individuals using similar information sets have similar information processing characteristics? Do these sets vary as feedback is obtained during the decision process? To answer these questions, graduate students participated in a modified Delphi experiment, and the resulting data were analyzed by the two-way aligned-ranks nonparametric test. These test results affirm that in a merger/acquisition scenario, decision makers with different cognitive styles prefer different sets of information and these sets vary dynamically as feedback is incorporated in the decision-making process. Furthermore, information that contains worker and community welfare considerations is identified as “useful” five times more frequently by decision makers with a “feeling” cognitive style than those with a “thinking” style.     

CONCEPTS,THEORY, AND TECHNIQUES

The beta distribution is becoming more widely used in business applications and in economic model-building. A simple way to estimate the parameters of the univariate distribution and the general multivariate distribution would be useful but there appears to be no simple way of accomplishing this task. For example, the method of maximum likelihood does not yield tractable results. The method of moments presented in this paper is a practical way to obtain parameter estimates for the beta distribution. Explicit estimators are derived for the univariate and bivariate case and estimators are then inferred for the n-variate case. Empirical tests suggest that the method of moments may be used to establish useful estimates for these parameters. Also, estimates obtained by the method of moments may be used to develop bounds on the parameters so that computational techniques can be utilized with other estimation methods possessing more desirable properties.     

Tick infestation of birds across a gradient of urbanization intensity in the United States Great Plains

Urban Ecosystems - Migratory birds play an important role in large-scale movements of ticks and tick-borne pathogens, yet little is known about tick infestation of resident birds (e.g.,...     

Evidence on the Superiority of Analysts Quarterly Earnings Forecasts for Small Capitalization Firms*

Financial analysts provide information to support investment analysis and decisions for an ever increasing number of firms. As part of their services they also produce earnings forecasts for covered firms. While there has been much research investigating the determinants of financial analyst earnings forecast superiority for large, widely-followed firms, little research has focused on smaller firms. Until recently, these smaller firms have been largely ignored. This study focuses exclusively on small firms and provides evidence of differing behavior for such firms compared to results previously reported for large firms. Errors in quarterly earnings per share forecasts of small firms obtained from a univariate time-series model are also examined. Regression results indicate that time-series model parameters possess information content with respect to forecast accuracy for analyst-covered firms only. These results are obtained after controlling for firm size, model adequacy, and industry, quarter, and year effects. This suggests that analysts are more likely to cover small firms for which they are able to decipher information correlated with that impounded in the “shocks” in the quarterly earnings time series as captured by the time-series model parameters.     

Planning Forward by Looking Backward: Retrospective Thinking in Strategic Decision Making*

Retrospective thinking occurs whenever one remembers something from the past, but one can also think retrospectively about hypothetical future events, by imagining that the event has already transpired and then working backward in the mind from the future toward the present. Designers, artists, planners, and other creative individuals utilize retrospective thinking when they mentally envision the object they wish to create and then thinkabout how it might be constructed. Some theorists and some previous research have suggested that forward and backward thinking are different cognitive processes, but there has been little investigation on the nature of these differences. This article examines the literature and describes a laboratory study designed to investigate retrospective thinking as a technique for increased idea generation. Subjects (n=64) were professional planners and managers with an average business experience of over 20 years. In a planning task, significantly more ideas were generated in the retrospective thinking mode than in the prospective mode, but the ideas were not found to be of greater quality. Evidence emerged that a subset of subjects were better able to make use of the retrospective technique, suggesting that selection along with training may be appropriate for the technique's mosteffective use.     

Managerial entrenchment and corporate social responsibility engagement: the role of economic policy uncertainty

Journal of Management and Governance - The behavioral theory of corporate governance is employed to investigate the relationship between managerial entrenchment and corporate social responsibility...