Over the last twenty years more than 100 studies have been conducted to test substantive hypothes... more Over the last twenty years more than 100 studies have been conducted to test substantive hypotheses related to burnout in a variety of occupations. Parallel to this line of research have been tests of the factorial stability of the Maslach Burnout Inventory (MBI) in different cultures and languages. In the current study we reviewed measurement equivalency of the MBI. We found that, in general, the dimensionality of the instrument was similar across multiple languages and countries. Recommendations are provided to enhance the effectiveness of using the MBI in cross-cultural research. For over twenty years researchers have investigated the burnout construct to better understand how people develop stress and cope in occupational settings. Burnout is defined as, "a syndrome of emotional exhaustion, depersonalization, and reduced personal accomplishment that can occur among individuals who do `people work' of some kind" (Maslach & Jackson, 1986). A popular instrument for me...
The unique institutional environment of China‟s stock markets provides a rich setting to study th... more The unique institutional environment of China‟s stock markets provides a rich setting to study the relationship between investors‟ behavior and market returns in the case of information inefficiency. This study extends the well documented Dogs of the Dow (Dow Dogs) strategy to China‟s A share stock market. We find that Dow Dogs portfolios significantly outperform the market benchmark for the period of 1994 to 2009 in China‟s markets. Further analysis indicates that (1) The fewer Dogs included in the portfolio, the greater the portfolio abnormal returns; (2) In general, the shorter holding period (in months), the greater the portfolio abnormal returns. These findings are robust even after adjusting for transaction costs and taxes. Our study contributes to the behavioral finance literature by providing new empirical evidence of the market anomaly.
44 Volume 38, Number 3, 2013 INTRODUCTION THIS ARTICLE INVESTIGATES WHETHER REAL ESTATE investmen... more 44 Volume 38, Number 3, 2013 INTRODUCTION THIS ARTICLE INVESTIGATES WHETHER REAL ESTATE investment trust (REIT) investors might be able to enhance their return by pursuing investment timing strategies that have been demonstrated to be successful in the broad stock market. Two such strategies are the price momentum strategy, which posits that investors can profit by investing in shares that have recently risen in price because that trend will tend to persist, and the price contrarian strategy, which suggests investors can profit by assuming positions to capture security price trend reversals. Only a handful of studies, however, have applied either of these strategies to REITs exclusively. Most of these more focused studies investigate time periods that predate the modern REIT era, and none has directly compared the effectiveness of these competing strategies as a REIT investment timing mechanism. Another widely known investment strategy, “Dogs of the Dow,” which suggests that superio...
Regulation by governmental agencies is generally recognized as costly for business firms. The tot... more Regulation by governmental agencies is generally recognized as costly for business firms. The total cost of federal regulation has been estimated at more than $125 billion annually (Bowden 1992). Regulation can be classified as either economic or social, depending on the objectives trying to be achieved. Early regulation was primarily economic in nature and dealt with issues related to market structure. More recently, regulation has been targeted at social issues. Social regulation includes environmental, safety and health, and equal employment concerns (Luthans, Hodgetts, and Thompson 1990). Complying with regulatory requirements can be particularly costly for smaller organizations (Longenecker and Moore 1991). Surveys of small business owners and managers reveal that governmental regulation ranks among the most difficult problems with which firms must cope. Hoy and Vaught (1980), in a study of rural entrepreneurs, found that 16 percent felt government interference inhibited their abilities to operate effectively. Similarly, Franklin and Goodwin's (1983), research with 670 small businesses revealed government regulation ranked lower than only inflation and taxes as major problems for small firm owners. Thus, at least in the perception of small business owners and managers, government regulation poses a threat to profitability and ultimately, survival. This perception is given credibility when considering the impact of one regulatory agency, the U.S. Occupational Safety and Health Administration (OSHA), on small businesses. OSHA appears to pose many obstacles to the management of small organizations when compared to large ones. Several studies have examined the impact of occupational safety and health regulation on small business. Observers of the field generally agree that small businesses are at a competitive disadvantage when forced to comply with the OSHA regulations (Ashford 1976, Cole and Sommers 1980, Knight and Harju 1982, Longenecker and Moore 1991). Bartel and Thomas (1985, 1987) concluded the costs of compliance with OSHA regulations fall most heavily on small firms. Although some macro-level research has been conducted on the impact of OSHA regulations on the economic well-being of small firms, there has been no empirical investigation of how OSHA resolves compliance issues in small organizations. CURRENT RESEARCH The purpose of the investigation upon which this article is based is to identify potential differences in OSHA compliance processes used in small and large businesses. The research specifically focuses on one aspect of the compliance issue, the inspection and complaint resolution process. Both small and large firms are covered by the same OSHA regulations and inspection procedures; and both are held accountable for the same types of potential violations. However, as Bartel and Thomas (1985, 1987) observed, OSHA regulations have a differential impact on the organization depending on firm size. To identify how OSHA inspections on employee complaints may contribute to this impact, the study discussed here had the following objectives: (1) to determine if the inspection and complaint resolution process in small firms can be distinguished from the process in large firms, and (2) to identify potential differences on specific characteristics of the inspection and complaint resolution process in small and large organizations. Thus, OSHA cases originating from an employee complaint were reviewed. Understanding how the process might differ in small and large firms allows recommendations on how small organizations might cope more effectively with OSHA's regulatory activities. BACKGROUND ON OSHA AND THE RESOLUTION PROCESS The Occupational Safety and Health Act President Nixon signed the Occupational Safety and Health Act into law on December 29, 1970. Section 2(b) stated the goal of the act was to "assure so far as possible every working man and woman in the nation safe and healthful working conditions and to preserve our human resources. …
The current study reviewed the OSHA complaint inspection and resolution process in union and nonu... more The current study reviewed the OSHA complaint inspection and resolution process in union and nonunion firms to identify potential differences in outcomes. Results revealed that it was possible to distinguish between union and nonunion firms on the basis of seven objective OSHA inspection and complaint resolution factors. Implications of bargaining with OSHA, union effectiveness in the resolution process, and the importance of having a formal grievance system in nonunion firms are discussed.
They gratefully acknowledge the helpful comments on earlier drafts of this paper by Anthony Chan ... more They gratefully acknowledge the helpful comments on earlier drafts of this paper by Anthony Chan and the anonymous referee.
International Journal of Accounting & Information Management, 2012
ABSTRACT Purpose – Until 2005, corporations could choose whether to expense incentive options or ... more ABSTRACT Purpose – Until 2005, corporations could choose whether to expense incentive options or to disclose the value in the financial footnotes. During 2004, however, the Financial Accounting Standards Board adopted the revised Statement No. 123, which requires public corporations to measure the cost of stock options on grant-date and expense that cost over the vesting period of the grant. This study investigates the impact of SFAS 123(R) on the type of executive incentive pay-option versus restricted stock. Design/methodology/approach – Comprehensive compensation data was collected from Standard & Poors ExecuComp data base for the period 2002-2006 for two industries identified by SIC codes 73 (business services) and 35 (electronics). The study tracks the percentage of pay in the form of incentive stock options or restrictive stock grants before and after SFAS No. 123(R) was adopted in 2004. A series of multivariate regression models test whether the restricted stock percentage of total compensation can be partially explained by the adoption of SFAS 123(R). Findings – The results show that the average fair value of stock awards is higher and the average fair value of option awards is lower after 2004. In addition, after 2004, stock compensation as a percentage of total pay is positively related to stock price volatility. The data also suggest that those companies substituting restricted stock for options actually increase total incentive pay. Social implications – The study's findings may suggest that those companies substituting restricted stock for options increase total executive pay. This would be a side effect from the adoption of SFAS 123(R), in that most companies use the Black-Scholes model to value executive options. Given the long life of these options and the high volatility in certain industries the option value is quite high. Therefore, the amount of substituted restricted stock is also inflated. Originality/value – The adoption of SFAS 123(R) was highly contested by executives in industries with high stock price volatility. The authors document that, in the case of two industries, executive incentive pay structure was affected.
American Journal of Economics and Business Administration, Aug 1, 2011
Abstract: The Dogs of the Dow (Dow Dogs) strategy, which has gained widespread popularity in the ... more Abstract: The Dogs of the Dow (Dow Dogs) strategy, which has gained widespread popularity in the US, is found to be considerably successful in China's stock markets. This trading strategy contradicts the well-established efficient market hypothesis. This study examines the cross-sectional variations in the magnitude of the predictive power of the Dow Dogs strategy using Chinese stocks for 1994-2009. Our results suggest that (1) Significant Dow Dogs effect apply to Class A shares, but not Class B shares;(2) Stocks priced ...
This article uises responses to a mnail questionnnire survey or financial planning professionals ... more This article uises responses to a mnail questionnnire survey or financial planning professionals to assess tle state of t(ie art in financial plaining as it relates to long-term catastrophic illnesses. The reported fitiditigs suggest that fitiancial planners give insrfficient attention to ...
International Journal of Business and Social Science, Oct 1, 2011
The unique institutional environment of China‟ s stock markets provides a rich setting to study t... more The unique institutional environment of China‟ s stock markets provides a rich setting to study the relationship between investors‟ behavior and market returns in the case of information inefficiency. This study extends the well documented Dogs of the Dow (Dow Dogs) strategy to China‟ s A share stock market. We find that Dow Dogs portfolios significantly outperform the market benchmark for the period of 1994 to 2009 in China‟ s markets.
Assuming risk-neutrality and the random walk model we derive a rule-of-thumb that periodically se... more Assuming risk-neutrality and the random walk model we derive a rule-of-thumb that periodically selects the appropriate foreign stock index and is either long or short foreign currency contracts. The empirical results of testing the rule-of-thumb with an investment universe of six major foreign equity markets show that our rule-of-thumb provides performance superior to investing in foreign stock indices alone. In addition, we test and reject the Unbiased Forward Rate Hypothesis (UFRH) in favor of the Random Walk Hypothesis (RWH).
This study investigates the effectiveness of three strategies, price momentum, price contrarian, ... more This study investigates the effectiveness of three strategies, price momentum, price contrarian, and dividend-to-price ratio (Dogs of the Dow) as REIT investment timing devices using data from the modern REIT era. Sixty portfolios are created varying both the number of REITs in the portfolio and the holding period. Most of the portfolios provide impressive pre-transaction cost cumulative returns over the eleven year study period. Portfolios providing the highest returns also tended to have the highest Information Ratios. When transaction costs are included, however, only ten of the portfolios provide a return which exceeds a buy and hold strategy.
Sovereign wealth funds (SWFs) are large, growing, and concentrated investment vehicles, with a cu... more Sovereign wealth funds (SWFs) are large, growing, and concentrated investment vehicles, with a current estimated value of U.S. $3 trillion. The combination of low transparency and government ownership has raised questions about political agendas, national security, and transfers of technology. In this article the authors report on the current status of SWFs in terms of investments, regulation, governance, and transparency of activities. They also review some recent studies on SWF investments and their impact on financial markets.
This paper studies alternative segments of the LBO market for the period 1980-1988. The sample, s... more This paper studies alternative segments of the LBO market for the period 1980-1988. The sample, segmented by trading location and by size and year of the buyout offer, consists of 442 announcements: 161 over-the-counter (OTC) firms and 281 exchange listed firms. On average, the prediction errors for the entire sample for a -1, +1 window is 14.37 percent. Additionally, we find significant prediction errors for both OTC and exchanged listed firms. However, there are significant difference between the returns earned by shareholders of OTC vs. exchanged listed companies and these differences vary by year.
Page 1. Academy of Management Executive, 1999, Vol. 13, No. 1 Global leaxdership skills and reput... more Page 1. Academy of Management Executive, 1999, Vol. 13, No. 1 Global leaxdership skills and reputational capital: Intangible resources for sustainable competitive advantage Joseph A. Petrick, Robert F. Scherer, James D. Brodzinski, John F. Quinn, and M. Fall Ainina ...
Over the last twenty years more than 100 studies have been conducted to test substantive hypothes... more Over the last twenty years more than 100 studies have been conducted to test substantive hypotheses related to burnout in a variety of occupations. Parallel to this line of research have been tests of the factorial stability of the Maslach Burnout Inventory (MBI) in different cultures and languages. In the current study we reviewed measurement equivalency of the MBI. We found that, in general, the dimensionality of the instrument was similar across multiple languages and countries. Recommendations are provided to enhance the effectiveness of using the MBI in cross-cultural research. For over twenty years researchers have investigated the burnout construct to better understand how people develop stress and cope in occupational settings. Burnout is defined as, "a syndrome of emotional exhaustion, depersonalization, and reduced personal accomplishment that can occur among individuals who do `people work' of some kind" (Maslach & Jackson, 1986). A popular instrument for me...
The unique institutional environment of China‟s stock markets provides a rich setting to study th... more The unique institutional environment of China‟s stock markets provides a rich setting to study the relationship between investors‟ behavior and market returns in the case of information inefficiency. This study extends the well documented Dogs of the Dow (Dow Dogs) strategy to China‟s A share stock market. We find that Dow Dogs portfolios significantly outperform the market benchmark for the period of 1994 to 2009 in China‟s markets. Further analysis indicates that (1) The fewer Dogs included in the portfolio, the greater the portfolio abnormal returns; (2) In general, the shorter holding period (in months), the greater the portfolio abnormal returns. These findings are robust even after adjusting for transaction costs and taxes. Our study contributes to the behavioral finance literature by providing new empirical evidence of the market anomaly.
44 Volume 38, Number 3, 2013 INTRODUCTION THIS ARTICLE INVESTIGATES WHETHER REAL ESTATE investmen... more 44 Volume 38, Number 3, 2013 INTRODUCTION THIS ARTICLE INVESTIGATES WHETHER REAL ESTATE investment trust (REIT) investors might be able to enhance their return by pursuing investment timing strategies that have been demonstrated to be successful in the broad stock market. Two such strategies are the price momentum strategy, which posits that investors can profit by investing in shares that have recently risen in price because that trend will tend to persist, and the price contrarian strategy, which suggests investors can profit by assuming positions to capture security price trend reversals. Only a handful of studies, however, have applied either of these strategies to REITs exclusively. Most of these more focused studies investigate time periods that predate the modern REIT era, and none has directly compared the effectiveness of these competing strategies as a REIT investment timing mechanism. Another widely known investment strategy, “Dogs of the Dow,” which suggests that superio...
Regulation by governmental agencies is generally recognized as costly for business firms. The tot... more Regulation by governmental agencies is generally recognized as costly for business firms. The total cost of federal regulation has been estimated at more than $125 billion annually (Bowden 1992). Regulation can be classified as either economic or social, depending on the objectives trying to be achieved. Early regulation was primarily economic in nature and dealt with issues related to market structure. More recently, regulation has been targeted at social issues. Social regulation includes environmental, safety and health, and equal employment concerns (Luthans, Hodgetts, and Thompson 1990). Complying with regulatory requirements can be particularly costly for smaller organizations (Longenecker and Moore 1991). Surveys of small business owners and managers reveal that governmental regulation ranks among the most difficult problems with which firms must cope. Hoy and Vaught (1980), in a study of rural entrepreneurs, found that 16 percent felt government interference inhibited their abilities to operate effectively. Similarly, Franklin and Goodwin's (1983), research with 670 small businesses revealed government regulation ranked lower than only inflation and taxes as major problems for small firm owners. Thus, at least in the perception of small business owners and managers, government regulation poses a threat to profitability and ultimately, survival. This perception is given credibility when considering the impact of one regulatory agency, the U.S. Occupational Safety and Health Administration (OSHA), on small businesses. OSHA appears to pose many obstacles to the management of small organizations when compared to large ones. Several studies have examined the impact of occupational safety and health regulation on small business. Observers of the field generally agree that small businesses are at a competitive disadvantage when forced to comply with the OSHA regulations (Ashford 1976, Cole and Sommers 1980, Knight and Harju 1982, Longenecker and Moore 1991). Bartel and Thomas (1985, 1987) concluded the costs of compliance with OSHA regulations fall most heavily on small firms. Although some macro-level research has been conducted on the impact of OSHA regulations on the economic well-being of small firms, there has been no empirical investigation of how OSHA resolves compliance issues in small organizations. CURRENT RESEARCH The purpose of the investigation upon which this article is based is to identify potential differences in OSHA compliance processes used in small and large businesses. The research specifically focuses on one aspect of the compliance issue, the inspection and complaint resolution process. Both small and large firms are covered by the same OSHA regulations and inspection procedures; and both are held accountable for the same types of potential violations. However, as Bartel and Thomas (1985, 1987) observed, OSHA regulations have a differential impact on the organization depending on firm size. To identify how OSHA inspections on employee complaints may contribute to this impact, the study discussed here had the following objectives: (1) to determine if the inspection and complaint resolution process in small firms can be distinguished from the process in large firms, and (2) to identify potential differences on specific characteristics of the inspection and complaint resolution process in small and large organizations. Thus, OSHA cases originating from an employee complaint were reviewed. Understanding how the process might differ in small and large firms allows recommendations on how small organizations might cope more effectively with OSHA's regulatory activities. BACKGROUND ON OSHA AND THE RESOLUTION PROCESS The Occupational Safety and Health Act President Nixon signed the Occupational Safety and Health Act into law on December 29, 1970. Section 2(b) stated the goal of the act was to "assure so far as possible every working man and woman in the nation safe and healthful working conditions and to preserve our human resources. …
The current study reviewed the OSHA complaint inspection and resolution process in union and nonu... more The current study reviewed the OSHA complaint inspection and resolution process in union and nonunion firms to identify potential differences in outcomes. Results revealed that it was possible to distinguish between union and nonunion firms on the basis of seven objective OSHA inspection and complaint resolution factors. Implications of bargaining with OSHA, union effectiveness in the resolution process, and the importance of having a formal grievance system in nonunion firms are discussed.
They gratefully acknowledge the helpful comments on earlier drafts of this paper by Anthony Chan ... more They gratefully acknowledge the helpful comments on earlier drafts of this paper by Anthony Chan and the anonymous referee.
International Journal of Accounting & Information Management, 2012
ABSTRACT Purpose – Until 2005, corporations could choose whether to expense incentive options or ... more ABSTRACT Purpose – Until 2005, corporations could choose whether to expense incentive options or to disclose the value in the financial footnotes. During 2004, however, the Financial Accounting Standards Board adopted the revised Statement No. 123, which requires public corporations to measure the cost of stock options on grant-date and expense that cost over the vesting period of the grant. This study investigates the impact of SFAS 123(R) on the type of executive incentive pay-option versus restricted stock. Design/methodology/approach – Comprehensive compensation data was collected from Standard & Poors ExecuComp data base for the period 2002-2006 for two industries identified by SIC codes 73 (business services) and 35 (electronics). The study tracks the percentage of pay in the form of incentive stock options or restrictive stock grants before and after SFAS No. 123(R) was adopted in 2004. A series of multivariate regression models test whether the restricted stock percentage of total compensation can be partially explained by the adoption of SFAS 123(R). Findings – The results show that the average fair value of stock awards is higher and the average fair value of option awards is lower after 2004. In addition, after 2004, stock compensation as a percentage of total pay is positively related to stock price volatility. The data also suggest that those companies substituting restricted stock for options actually increase total incentive pay. Social implications – The study's findings may suggest that those companies substituting restricted stock for options increase total executive pay. This would be a side effect from the adoption of SFAS 123(R), in that most companies use the Black-Scholes model to value executive options. Given the long life of these options and the high volatility in certain industries the option value is quite high. Therefore, the amount of substituted restricted stock is also inflated. Originality/value – The adoption of SFAS 123(R) was highly contested by executives in industries with high stock price volatility. The authors document that, in the case of two industries, executive incentive pay structure was affected.
American Journal of Economics and Business Administration, Aug 1, 2011
Abstract: The Dogs of the Dow (Dow Dogs) strategy, which has gained widespread popularity in the ... more Abstract: The Dogs of the Dow (Dow Dogs) strategy, which has gained widespread popularity in the US, is found to be considerably successful in China's stock markets. This trading strategy contradicts the well-established efficient market hypothesis. This study examines the cross-sectional variations in the magnitude of the predictive power of the Dow Dogs strategy using Chinese stocks for 1994-2009. Our results suggest that (1) Significant Dow Dogs effect apply to Class A shares, but not Class B shares;(2) Stocks priced ...
This article uises responses to a mnail questionnnire survey or financial planning professionals ... more This article uises responses to a mnail questionnnire survey or financial planning professionals to assess tle state of t(ie art in financial plaining as it relates to long-term catastrophic illnesses. The reported fitiditigs suggest that fitiancial planners give insrfficient attention to ...
International Journal of Business and Social Science, Oct 1, 2011
The unique institutional environment of China‟ s stock markets provides a rich setting to study t... more The unique institutional environment of China‟ s stock markets provides a rich setting to study the relationship between investors‟ behavior and market returns in the case of information inefficiency. This study extends the well documented Dogs of the Dow (Dow Dogs) strategy to China‟ s A share stock market. We find that Dow Dogs portfolios significantly outperform the market benchmark for the period of 1994 to 2009 in China‟ s markets.
Assuming risk-neutrality and the random walk model we derive a rule-of-thumb that periodically se... more Assuming risk-neutrality and the random walk model we derive a rule-of-thumb that periodically selects the appropriate foreign stock index and is either long or short foreign currency contracts. The empirical results of testing the rule-of-thumb with an investment universe of six major foreign equity markets show that our rule-of-thumb provides performance superior to investing in foreign stock indices alone. In addition, we test and reject the Unbiased Forward Rate Hypothesis (UFRH) in favor of the Random Walk Hypothesis (RWH).
This study investigates the effectiveness of three strategies, price momentum, price contrarian, ... more This study investigates the effectiveness of three strategies, price momentum, price contrarian, and dividend-to-price ratio (Dogs of the Dow) as REIT investment timing devices using data from the modern REIT era. Sixty portfolios are created varying both the number of REITs in the portfolio and the holding period. Most of the portfolios provide impressive pre-transaction cost cumulative returns over the eleven year study period. Portfolios providing the highest returns also tended to have the highest Information Ratios. When transaction costs are included, however, only ten of the portfolios provide a return which exceeds a buy and hold strategy.
Sovereign wealth funds (SWFs) are large, growing, and concentrated investment vehicles, with a cu... more Sovereign wealth funds (SWFs) are large, growing, and concentrated investment vehicles, with a current estimated value of U.S. $3 trillion. The combination of low transparency and government ownership has raised questions about political agendas, national security, and transfers of technology. In this article the authors report on the current status of SWFs in terms of investments, regulation, governance, and transparency of activities. They also review some recent studies on SWF investments and their impact on financial markets.
This paper studies alternative segments of the LBO market for the period 1980-1988. The sample, s... more This paper studies alternative segments of the LBO market for the period 1980-1988. The sample, segmented by trading location and by size and year of the buyout offer, consists of 442 announcements: 161 over-the-counter (OTC) firms and 281 exchange listed firms. On average, the prediction errors for the entire sample for a -1, +1 window is 14.37 percent. Additionally, we find significant prediction errors for both OTC and exchanged listed firms. However, there are significant difference between the returns earned by shareholders of OTC vs. exchanged listed companies and these differences vary by year.
Page 1. Academy of Management Executive, 1999, Vol. 13, No. 1 Global leaxdership skills and reput... more Page 1. Academy of Management Executive, 1999, Vol. 13, No. 1 Global leaxdership skills and reputational capital: Intangible resources for sustainable competitive advantage Joseph A. Petrick, Robert F. Scherer, James D. Brodzinski, John F. Quinn, and M. Fall Ainina ...
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