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Market Prices (market + price)
Selected AbstractsMarket Price of Risk: A Comparison among the United States, United Kingdom, Australia and Japan,INTERNATIONAL REVIEW OF FINANCE, Issue 4 2009KENT WANG ABSTRACT This study examines and compares the market price of risk of the S&P 500, FTSE 100, All Ordinaries, and Nikkei 225 markets from 1984 to 2009 in the framework of Intertemporal Capital Asset Pricing Model (ICAPM). We follow the Vector Autoregressive instrumental variable approach in identifying the risk and hedge components of market returns and argue that in the context of market integration, covariance with a world market portfolio is a better measure of market risk than conditional market variance. Evidence is documented in support of using covariance as a risk measure in explaining market risk premiums in the Australian and Japanese markets. CAY, the consumption wealth ratio from the US market is found to be a robust state variable that helps to explain both conditional variance and covariance processes in the four markets. The market prices of risk, after controlling for the hedging demands, are positive and significant with the United States having the highest price of risk. The results are confirmed using a series of robustness tests that include varying the sampling interval. [source] The Separation Theorem, Investor "Myopia", and Market Prices: A Discussion of "Do Institutional Investors Prefer Near-Term Earnings over Long-Run Value?",CONTEMPORARY ACCOUNTING RESEARCH, Issue 2 2001William M. Cready First page of article [source] Are Judgment Errors Reflected in Market Prices and Allocations?THE JOURNAL OF FINANCE, Issue 3 2004Experimental Evidence Based on the Monty Hall Problem The question of whether individual judgment errors survive in market equilibrium is an issue that naturally lends itself to experimental analysis. Here, the Monty Hall problem is used to detect probability judgment errors both in a cohort of individuals and in a market setting. When all subjects in a cohort made probability judgment errors, market prices also reflected the error. However, competition among two bias-free subjects was sufficient to drive prices to error-free levels. Thus, heterogeneity in behavior can be an important factor in asset pricing, and further, it may take few bias-free traders to make asset prices bias-free. [source] Evaluation Periods and Asset Prices in a Market ExperimentTHE JOURNAL OF FINANCE, Issue 2 2003Uri Gneezy We test whether the frequency of feedback information about the performance of an investment portfolio and the flexibility with which the investor can change the portfolio influence her risk attitude in markets. In line with the prediction of myopic loss aversion (Benartzi and Thaler (1995)), we find that more information and more flexibility result in less risk taking. Market prices of risky assets are significantly higher if feedback frequency and decision flexibility are reduced. This result supports the findings from individual decision making, and shows that market interactions do not eliminate such behavior or its consequences for prices. [source] Voluntary agreements with emission trading options in climate policyENVIRONMENTAL POLICY AND GOVERNANCE, Issue 4 2001Johan Albrecht Recent political and corporate initiatives indicate that voluntary agreements and emission trading will play a crucial role in climate policy. We show that when emission trading is integrated as an option in voluntary agreement contracts, the overall efficiency of the use of flexible climate policy instruments is strongly increased. The emission trading option, formalized as a CO2 allowance call option contract that can be traded, provides clear incentives to overcomply with the target of the voluntary agreement. The option mechanism also delivers a market price for eventual non-compliance, based on differences in abatement costs. With an example, we illustrate that the option mechanism can result in stimulating financial benefits for the firms that are most successful in reducing emissions. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment [source] Market Price of Risk: A Comparison among the United States, United Kingdom, Australia and Japan,INTERNATIONAL REVIEW OF FINANCE, Issue 4 2009KENT WANG ABSTRACT This study examines and compares the market price of risk of the S&P 500, FTSE 100, All Ordinaries, and Nikkei 225 markets from 1984 to 2009 in the framework of Intertemporal Capital Asset Pricing Model (ICAPM). We follow the Vector Autoregressive instrumental variable approach in identifying the risk and hedge components of market returns and argue that in the context of market integration, covariance with a world market portfolio is a better measure of market risk than conditional market variance. Evidence is documented in support of using covariance as a risk measure in explaining market risk premiums in the Australian and Japanese markets. CAY, the consumption wealth ratio from the US market is found to be a robust state variable that helps to explain both conditional variance and covariance processes in the four markets. The market prices of risk, after controlling for the hedging demands, are positive and significant with the United States having the highest price of risk. The results are confirmed using a series of robustness tests that include varying the sampling interval. [source] Effect of Taxation on Equal Access Share Buybacks in Australia,INTERNATIONAL REVIEW OF FINANCE, Issue 3-4 2005CHRISTINE BROWN ABSTRACT In Australia, equal access share buybacks can be structured so that a portion of the buyback price is designated as a fully franked dividend. The tax benefits derived from this structure imply that off-market buybacks are sometimes offered to shareholders at a discount to the current market price. This is in contrast to the United States, which operates under a classical taxation system, and where off-market buybacks are generally executed at a premium to the market price. The situation in Australia provides a unique opportunity to add to our understanding of taxation explanations for how and why companies buy back their shares. We find that the size of the discount of the offer price to the current share price is significantly related to the proportion of the buyback price designated a franked dividend. Analysis of the after-tax benefits to shareholders leads us to conclude that the structure of many equal access buybacks in Australia is advantageous to superannuation funds holding the stock. [source] Water use and productivity of two small reservoir irrigation schemes in Ghana's upper east region,IRRIGATION AND DRAINAGE, Issue 2 2008Joshua W. Faulkner irrigation; gestion des ressources en eau; développement international; petit réservoirs Abstract To examine the impact of small reservoir irrigation development in Africa, the performance and productivity of two small reservoirs and irrigation schemes in the Upper East Region of Ghana were investigated in this study. Hydrologic data measured included daily irrigation volumes and daily evaporation. Farmer cost inputs, excluding labor, and harvest data were also recorded. There was a strong contrast in water availability between the two systems, the Tanga system having a higher amount of available water than did the Weega system. The concept of relative water supply was used to confirm this disparity; Tanga was an inefficient system with a relative water supply of 5.7, compared to a value of 2.4 for the efficient Weega system. It was also concluded that the dissimilar water availabilities resulted in the evolution of very different irrigation methods and coincided with different management structures. Where there was more water available per unit land (Tanga), management was relaxed and the irrigation inefficient. Where there was less water available per unit land (Weega), management was well structured and irrigation efficient. The productivity of water (US$ m,3) of the Tanga system was half that of the Weega system, when analyzed at a high market price for crops grown. In terms of productivity of cultivated land (US$ ha,1), however, the Tanga system was 49% more productive than the Weega system. The difference in the productivity of land is primarily a result of increased farmer cash inputs in the Tanga system as compared to the Weega system. The difference in the productivity of water can be attributed to the varying irrigation methods and management structures, and ultimately to the contrasting water availability. Copyright © 2008 John Wiley & Sons, Ltd. L'impact du développement de petits réservoirs d'irrigation en Afriques est étudié en analysant la performance et le bénéfice économique de deux petits réservoirs avec de différents schèmes d'utilisation dans une région au nord-est du Ghana. Les données hydrologiques utilisées dans cette étude comprennent les volumes journaliers d'irrigation, ainsi que des mesures journaliers d'évaporation. En outre les coûts des investissements des agriculteurs ainsi que des données de récoltes ont été enregistrés. La quantité d'eau disponible était considérablement différente dans les deux systèmes: les ressources en eau du système de Tanga étaient nettement supérieures par rapport à celles du système de Weega. Le concept de l'approvisionnement relatif en eau a été utilisé pour démontrer cette disparité: Tanga avait un système inefficace avec un taux d'approvisionnement relatif en eau de 5.7 comparé à un taux de 2.4 du système efficace de Weega. Il a été conclu que les différences au niveau de la disponibilité d'eau sont à la base d'une évolution de méthodes et s'accordent avec de concepts de gestion d'irrigation très contrastés. Quand il y avait plus d'eau disponible par unité de surface (Tanga), la gestion était peu organisée et l'irrigation moins efficace. Par contre, quand les ressources en eau étaient limitées (Weega) la gestion était bien structurée et l'irrigation très efficace. En termes d'eau les agriculteurs de Tanga recevaient seulement la moitié du bénéfice économique des agriculteurs de Weega quand le prix du marché était élevé pour les produits récoltés. Par contre, en termes de surface cultivée, les agriculteurs de Tanga faisaient 49% plus de profit par rapport aux agriculteurs de Weega. La différence du bénéfice économique de la terre cultivé est principalement une conséquence des investissements élevés des agriculteurs dans le système de Tanga comparé au système de Weega. La différence du bénéfice économique de l'eau peut être attribuée aux variations des méthodes d'irrigation et des structures de gestion et donc finalement aux disponibilités en eau très contrastées. Copyright © 2008 John Wiley & Sons, Ltd. [source] Effects of Multiple Clients on the Reliability of Audit ReportsJOURNAL OF ACCOUNTING RESEARCH, Issue 1 2006ANNE BEYER ABSTRACT This paper demonstrates the existence of two different kinds of externalities induced by an auditor servicing multiple clients at the same time. First, we show that the capital market price for a client can increase in the number of qualified reports that his auditor issues to his other clients, thus producing a stock price externality. Second, when the audit firm has limited wealth, an additional client can actually decrease the audit quality and increase the average likelihood of audit failure relative to a single-client setting because of reporting externalities. Our analysis also demonstrates how requiring a more effective audit oversight mechanism can actually produce unintended consequences such as an increased likelihood of audit failures. [source] Consumer preferences for quality characteristics along the cowpea value chain in Nigeria, Ghana, and MaliAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 1 2009Fulgence Joseph Mishili The production and trade of cowpea is a growing business in West Africa. But a better understanding of consumer preferences is essential to market development. The objective of the study was to determine the impact of cowpea grain quality characteristics on market price. The data for the study were collected from markets in Nigeria, Ghana, and Mali. Hedonic pricing methods provide a statistical estimate of premiums and discounts. The results indicated that cowpea consumers in Ghana, Mali, and Nigeria are willing to pay a premium for large cowpea grains. Bruchid damage is not statistically significant in any market. The impact of price on other cowpea quality characteristics such as skin color and texture and eye color vary locally. Implications for development of the cowpea value chain are as follows: (a) researchers should identify cost-effective ways to increase cowpea grain size because larger grain are preferred and (b) serving local markets requires a portfolio of grain skin and eye color and skin texture combinations. [EconLit citations: Q130]. © 2009 Wiley Periodicals, Inc. [source] Valuation Accuracy and Infinity Horizon Forecast: Empirical Evidence from EuropeJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2009Lucio Cassia This paper focuses on the assumptions of infinite-horizon forecasting in the field of firm valuation. The estimate of long-run continuing values is based on the hypothesis that companies should have reached the steady state at the end of the period of explicit forecasts. It is argued that the equivalence between cash accounting and accrual accounting is the way of verifying the steady-state assumption, defined as the state when a firm earns exactly its cost of capital, i.e., what we would expect in pure-competition settings. From this definition, we derive that the "ideal" growth rate to use in steady state is equal to the reinvestment rate times Weighted Average Cost of Capital. To validate our approach, we collect a sample of 784 analyst valuations and compare how the implied target prices deviate from what the target prices would have been using the "ideal" steady-state growth rates. Using Logit and Cox regression models, we find that this deviation has predictive value over the probability that actual market price reaches the target price over the following 12-month period,the smaller the deviation the greater is the likelihood that the market price reaches the target price. [source] Consumer benefits and acceptance of genetically modified foodJOURNAL OF PUBLIC AFFAIRS, Issue 3-4 2005John G. Knight Much of the resistance towards genetically modified foods appears to stem from public perceptions that they offer no consumer benefits. In order to test whether clearly defined consumer benefits would change behaviour, a purchasing experiment has been conducted in New Zealand, where the genetically modified issue has been highly politicized. Cherries labelled as spray free-genetically modified, organic or conventional were offered for sale in a roadside stall, with price levels manipulated to test price sensitivity of the different options. Approximately 27% of consumers proved willing to purchase genetically modified labelled cherries when all three types were priced at the prevailing market price, and this market share increased to 60% when the price was discounted by 15% and organic was priced at a 15% premium. Copyright © 2005 John Wiley & Sons, Ltd. [source] Consumers' purchase intention of organic food in ChinaJOURNAL OF THE SCIENCE OF FOOD AND AGRICULTURE, Issue 8 2010Shijiu Yin Abstract BACKGROUND: The global market for organic food has developed significantly in the past decade. The organic food industry in China is export oriented, with production growing rapidly, although the domestic market remains relatively small. This paper surveys 432 consumers from three cities in China, consequently establishing a logit model to analyse the main factors affecting consumers' choice for organic food. RESULTS: The result indicates that Chinese consumers' intent to purchase organic food is strongly affected by factors such as income, degree of trust in organic food, degree of acceptance of organic food price, and consumers' concern on self-health. This intent is only slightly affected by factors such as consumers' age, education level and concern about environmental protection. CONCLUSION: Based on the results, the following measures are recommended: reduce the cost of organic food through multiple channels to cut down the market price; establish and perfect the supervision system of organic food; and promote organic food through various channels. Copyright © 2010 Society of Chemical Industry [source] Sunflower proteins: overview of their physicochemical, structural and functional propertiesJOURNAL OF THE SCIENCE OF FOOD AND AGRICULTURE, Issue 12 2007Sergio González-Pérez Abstract There is increasing worldwide demand for proteins of both animal and plant origin. However, animal proteins are expensive in terms of both market price and environmental impact. Among alternative plant proteins, sunflower seeds are particularly interesting in view of their widespread availability in areas where soy is not or only sparsely produced. Compared with other sources of vegetable proteins, sunflower seeds have been reported to have a low content of antinutritional factors. Although the absence of these factors is important, the functionality of the protein preparations will mainly determine their applicability. This review provides detailed information about sunflower seed composition and processing, including processes to remove phenolic compounds from meals. The main part of the review concerns the structure and functionality of the two major protein fractions, helianthinin and 2S albumins. Regarding functionality, emphasis is on solubility, thermal behaviour and surface activity. Protein structure and functionality are discussed as a function of extrinsic factors such as pH, ionic strength, temperature and the presence of other seed components, particularly chlorogenic acid. In addition, sunflower proteins are compared from a structural and functional point of view with other plant proteins, particularly soy proteins. Copyright © 2007 Society of Chemical Industry [source] ASSET PRICING WITH NO EXOGENOUS PROBABILITY MEASUREMATHEMATICAL FINANCE, Issue 1 2008Gianluca Cassese In this paper, we propose a model of financial markets in which agents have limited ability to trade and no probability is given from the outset. In the absence of arbitrage opportunities, assets are priced according to a probability measure that lacks countable additivity. Despite finite additivity, we obtain an explicit representation of the expected value with respect to the pricing measure, based on some new results on finitely additive measures. From this representation we derive an exact decomposition of the risk premium as the sum of the correlation of returns with the market price of risk and an additional term, the purely finitely additive premium, related to the jumps of the return process. We also discuss the implications of the absence of free lunches. [source] ANALYTICAL COMPARISONS OF OPTION PRICES IN STOCHASTIC VOLATILITY MODELSMATHEMATICAL FINANCE, Issue 1 2005Vicky Henderson This paper gives an ordering on option prices under various well-known martingale measures in an incomplete stochastic volatility model. Our central result is a comparison theorem that proves convex option prices are decreasing in the market price of volatility risk, the parameter governing the choice of pricing measure. The theorem is applied to order option prices under q -optimal pricing measures. In doing so, we correct orderings demonstrated numerically in Heath, Platen, and Schweizer (Mathematical Finance, 11(4), 2001) in the special case of the Heston model. [source] Production, Reproduction, and Education: Women, Children, and Work in a British PerspectivePOPULATION AND DEVELOPMENT REVIEW, Issue 3 2002Heather Joshi This article reviews findings of studies by the author and colleagues on relationships between women's work and the reproduction of the British population based on data for female birth cohorts 1922,70. The studies address three questions: (1) How do children affect women's paid work and lifetime earnings? (2) How does women's employment affect the quantity of children born? (3) How does women's employment affect the "quality" of children? The answers are affected by the woman's educational attainment. On question 1, childrearing may often halve lifetime earnings, but seldom for the well educated. By contrast, any effects from employment to childbearing are most apparent in the late motherhood of the well educated. Child quality, as assessed by indicators of child development, benefits from maternal education and suffers little from maternal employment. The economic advantages for children in dual-career families are thus unabated. A widening gulf between mothers will tend to polarize the life chances of their children, unless there are more options to combine employment and childrearing, especially including good-quality child care for those who cannot afford the market price. Education is a powerful influence, but does not alone solve all issues of equity, whether between families or between sexes. [source] Movers and Shuckers: Interdependent Prepayment DecisionsREAL ESTATE ECONOMICS, Issue 3 2001John M. Clapp We model competing risks of mortgage termination where the borrower faces a repeated choice to continue to pay, refinance the loan, move or default. Most previous empirical work on mortgage prepayment has ignored the distinction between prepayments triggered by refinancing and moving, combining them into a single prepayment rate. We show that financial considerations are the primary drivers of the refinance choice while homeowner characteristics have more influence on the move decision. We demonstrate that these differences are statistically significant and that combining these two distinct choices into a single measure of prepayment shifts coefficients toward zero and produces inaccurate predictions of aggregate termination rates. For example, a combined model underestimates the effect of the market price of the loan on refinancing; it misses entirely the opposite effects of borrower income on moving and refinancing. Our results suggest that existing prepayment models are inconsistent predictors of mobility-driven prepayment and underestimate the effect of market conditions and borrower characteristics on refinancing and housing decisions. Our findings have great significance to mortgage investors because mobility-driven prepayments are likely to be a more significant source of prepayments in thenext decade. [source] A Rational Expectations Equilibrium with Informative Trading VolumeTHE JOURNAL OF FINANCE, Issue 6 2009JAN SCHNEIDER ABSTRACT A large number of empirical studies find that trading volume contains information about the distribution of future returns. While these studies indicate that observing volume is helpful to an outside observer of the economy it is not clear how investors within the economy can learn from trading volume. In this paper, I show how trading volume helps investors to evaluate the precision of the aggregate information in the price. I construct a model that offers a closed-form solution of a rational expectations equilibrium where all investors learn from (1) private signals, (2) the market price, and (3) aggregate trading volume. [source] HDD and CDD option pricing with market price of weather risk for TaiwanTHE JOURNAL OF FUTURES MARKETS, Issue 8 2008Hung-Hsi Huang This study extends the long-term temperature model proposed by Alaton et al. (2002) by taking into account ARCH/GARCH effects to reflect the clustering of volatility in temperature. The fixed variance model and the ARCH model are estimated using Taiwan weather data from 1974 through 2003. The results show that for HDD/CDD the call price is higher under ARCH-effects variance than under fixed variance, while the put price is lower. Although different pricing methods are employed in pricing weather options, the effects of mean and standard deviation on option prices are mathematically proved to be the same as those in pricing traditional financial derivatives using the Black-Scholes formula. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 28:790,814, 2008 [source] Black-Scholes-Merton revisited under stochastic dividend yieldsTHE JOURNAL OF FUTURES MARKETS, Issue 7 2006Abraham LiouiArticle first published online: 9 MAY 200 European options are priced in a framework à la Black-Scholes-Merton, which is extended to incorporate stochastic dividend yield under a stochastic mean,reverting market price of risk. Explicit formulas are obtained for call and put prices and their Greek parameters. Some well-known properties of the Black-Scholes-Merton formula fail to hold in this setting. For example, the delta of the call can be negative and even greater than one in absolute terms. Moreover, call prices can be a decreasing function of the underlying volatility although the latter is constant. Finally, and most importantly, option prices highly depend on the features of the market price of risk, which does not need to be specified at all in the standard Black-Scholes-Merton setting. The results are simulated in order to assess the economic impact of assuming that the dividend yield is deterministic when it is actually stochastic, as well as to assess the economic importance of the features of the market price of risk. © 2006 Wiley Periodicals, Inc. Jrl Fut Mark 26:703,732, 2006 [source] Weather derivatives valuation and market price of weather riskTHE JOURNAL OF FUTURES MARKETS, Issue 11 2004Melanie Cao This paper has two objectives: (1) to propose and implement a valuation framework for temperature derivatives (a specific class of weather derivatives); and (2) to study the significance of the market price of weather risk. The objectives are accomplished by generalizing the Lucas model of 1978 to include the weather as another fundamental source of uncertainty in the economy. Daily temperature is modeled by incorporating such key properties as seasonal cycles and uneven variations throughout the year. The temperature variable is related to the aggregate dividend or output through both contemporaneous and lagged correlations, as corroborated by the data. Numerical analysis shows that the market price of weather risk is significant for temperature derivatives. © 2004 Wiley Periodicals, Inc. Jrl Fut Mark 24:1065,1089, 2004 [source] Informative Advertising and Optimal Targeting in a MonopolyTHE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 2 2001Lola Esteban This paper analyzes how the transition from mass to specialized advertising can affect the market outcomes. To that end, we consider a particular technology of information transmission which allows a monopolist to decide the optimal targeting strategy. From this starting point, we show that the use of targeted advertising is likely to increase the market price and reduce the level of advertising, and that the degree of media specialization chosen by the monopolist tends to exceed the socially optimal. Furthermore, our model indicates that the social loss resulting from the greater monopoly power might exceed the gain due to the lower wasting of ads, in such a way that targeting could reduce consumer surplus and, what is more important, the level of social welfare. [source] The IBUS Process , Lignocellulosic Bioethanol Close to a Commercial RealityCHEMICAL ENGINEERING & TECHNOLOGY (CET), Issue 5 2008J. Larsen Abstract Integrated Biomass Utilization System (IBUS) is a new process for converting lignocellulosic waste biomass to bioethanol. Inbicon A/S has developed the IBUS process in a large-scale process development unit. This plant features new continuous and energy-efficient technology developed for pretreatment and liquefaction of lignocellulosic biomass and has now been operated and optimized for four years with promising results. In the IBUS process, biomass is converted using steam and enzymes only. The process is energy efficient due to very high dry matter content in all process steps and by integration with a power plant. Cellulose is converted to bioethanol and lignin to a high-quality solid biofuel which supply the process energy as well as a surplus of heat and power. Hemicellulose is used as feed molasses but in the future it could also be used for additional ethanol production or other valuable products. Feasibility studies of the IBUS process show that the production price for lignocellulosic bioethanol is close to the world market price for fuel ethanol. There is still room for optimization , and lignocellulosic bioethanol is most likely a commercial alternative to fossil transport fuels before 2012. [source] FROM DISCRETE-TIME MODELS TO CONTINUOUS-TIME, ASYNCHRONOUS MODELING OF FINANCIAL MARKETSCOMPUTATIONAL INTELLIGENCE, Issue 2 2007Katalin Boer Most agent-based simulation models of financial markets are discrete-time in nature. In this paper, we investigate to what degree such models are extensible to continuous-time, asynchronous modeling of financial markets. We study the behavior of a learning market maker in a market with information asymmetry, and investigate the difference caused in the market dynamics between the discrete-time simulation and continuous-time, asynchronous simulation. We show that the characteristics of the market prices are different in the two cases, and observe that additional information is being revealed in the continuous-time, asynchronous models, which can be acted upon by the agents in such models. Because most financial markets are continuous and asynchronous in nature, our results indicate that explicit consideration of this fundamental characteristic of financial markets cannot be ignored in their agent-based modeling. [source] Carnivore-Livestock Conflicts: Effects of Subsidized Predator Control and Economic Correlates on the Sheep IndustryCONSERVATION BIOLOGY, Issue 3 2006KIM MURRAY BERGER Canis latrans; coyotes; depredación; evaluación de política Abstract:,Despite the importance of carnivores in terrestrial ecosystems, many nations have implemented well-coordinated, state-funded initiatives to remove predators, largely because of conflicts with humans over livestock. Although these control efforts have been successful in terms of the number of carnivores removed, their effects on the viability of the industries they seek to protect are less understood. I assessed the efficacy of long-term efforts by the U.S. government to improve the viability of the sheep industry by reducing predation losses. I used regression analysis and hierarchical partitioning of a 60-year data set to explore associations among changes in sheep numbers and factors such as predator control effort, market prices, and production costs. In addition, I compared trends in the sheep industry in the western United States, where predator control is subsidized and coyotes (Canis latrans) are abundant, with trends in eastern states that lack federally subsidized predator control and that were (1) colonized by coyotes before 1950 or (2) colonized by coyotes between 1950 and 1990. Although control efforts were positively correlated with fluctuations in sheep numbers, production costs and market prices explained most of the model variation, with a combined independent contribution of 77%. Trends in sheep numbers in eastern and western states were highly correlated (r ,0.942) independent of the period during which they were colonized by coyotes, indicating either that control has been ineffective at reducing predation losses or that factors other than predation account for the declines in both regions. These results suggest that government-subsidized predator control has failed to prevent the decline in the sheep industry and alternative support mechanisms need to be developed if the goal is to increase sheep production and not simply to kill carnivores. Resumen:,A pesar de la importancia de carnívoros en los ecosistemas terrestres, muchos países han implementado iniciativas bien coordinadas, financiadas por el gobierno, para remover depredadores, principalmente debido a conflictos entre humanos y ganado. Aunque estos esfuerzos de control han sido exitosos en términos del número de carnívoros removidos, sus efectos sobre la viabilidad de las industrias que se busca proteger son poco comprendidos. Evalué la eficacia de los esfuerzos a largo plazo del gobierno de E.U.A. para mejorar la viabilidad de la industria ovina mediante la reducción de pérdidas por depredación. Utilicé análisis de regresión y partición jerárquica de un conjunto de datos de 60 años para explorar asociaciones entre cambios en el número de ovejas y factores como el esfuerzo de control de depredadores, precios de mercado y costos de producción. Adicionalmente comparé las tendencias en la industria ovina en el oeste de Estados Unidos, donde el control de depredadores está subsidiado y los coyotes (Canis latrans) son abundantes, con las tendencias en los estados orientales que carecen de control subsidiado federalmente y que fueron (1) colonizados por coyotes antes de 1950 o (2) colonizados por coyotes entre 1950 y 1990. Aunque los esfuerzos de control se correlacionaron positivamente con las fluctuaciones en el número de ovejas, los costos de producción y los precios de mercado explicaron la mayor parte de la variación del modelo, con una contribución independiente combinada de 77%. Las tendencias en el número de ovejas en los estados orientales y occidentales estaban muy correlacionadas (r , 0.942) independientemente del período en que fueron colonizados por coyotes, lo que indica que el control ha sido ineficiente en la reducción de depredación o que factores, distintos a la depredación, son responsables de las declinaciones en ambas regiones. Estos resultados sugieren que el control subsidiado por el gobierno ha fallado en prevenir la declinación de la industria ovina y que se necesitan desarrollar mecanismos de soporte alternativos si la meta es incrementar la producción de ovejas y no simplemente matar carnívoros. [source] Independence in Appearance and in Fact: An Experimental Investigation,CONTEMPORARY ACCOUNTING RESEARCH, Issue 1 2003Nicholas Dopuch Abstract In this study, we use experimental markets to assess the effect of the Security and Exchange Commission's (SEC's) new independence rule on investors' perceptions of independence, investors' payoff distributions, and market prices. The new rule requires client firms to disclose in their annual proxy statements the amount of nonaudit fees paid to their auditors. The new disclosure is intended to inform investors of auditors' incentives to compromise their independence. Our experimental design is a 2 3 between-subjects design, where we control the presence (unbiased reports) or absence of auditor independence in fact (biased reports). While independence in fact was not immediately observable to investors, we controlled for independence in appearance by varying the public disclosure of the extent of nonaudit services provided by the auditor to the client. In one market setting, investors were not given any information about whether the auditor provided such nonaudit services; in a second setting, investors were explicitly informed that the auditor did not provide any non-audit services; and in a third setting, investors were told that the auditor provided nonaudit services that could be perceived to have an adverse effect on independence in fact. We found that disclosures of nonaudit services reduced the accuracy of investors' beliefs of auditors' independence in fact when independence in appearance was inconsistent with independence in fact. This then caused prices of assets to deviate more from their economic predictions (lower market efficiency) in the inconsistent settings relative to the no-disclosure and consistent settings. Thus, disclosures of fees for nonaudit services could reduce the efficiency of capital markets if such disclosures result in investors forming inaccurate beliefs of auditor independence in fact - that is, auditors appear independent but they are not independent in fact, or vice versa. The latter is the maintained position of the American Institute of Certified Public Accountants (AICPA), which argued against the new rule. Further research is needed to assess the degree of correspondence between independence in fact and independence in appearance. [source] Resource Allocation Effects of Price Reactions to Disclosures,CONTEMPORARY ACCOUNTING RESEARCH, Issue 3 2002Ronald A. Dye Abstract Capital market participants collectively may possess information about the valuation implications of a firm's change in strategy not known by the management of the firm proposing the change. We ask whether a firm's management can exploit the capital market's information in deciding either whether to proceed with a contemplated strategy change or whether to continue with a previously initiated strategy change. In the case of a proposed strategy change, we show that managers can extract the capital market's information by announcing a potential new strategy, and then conditioning the decision to implement the new strategy on the size of the market's price reaction to the announcement. Under this arrangement, we show that a necessary condition to implement all and only positive net present value strategy changes is that managers proceed to implement some strategies that garner negative price reactions upon their announcement. In the case of deciding whether to continue with a previously implemented strategy change, we show that it may be optimal for the firm to predicate its abandonment/continuation decision on the magnitude of the costs it has already incurred. Thus, what looks like "sunk-cost" behavior may in fact be optimal. Both demonstrations show that, in addition to performing their usual role of anticipating future cash flows generated by a manager's actions, capital market prices can also be used to direct a manager's actions. It follows that, in contrast to the usual depiction of the information flows between capital markets and firms as being one way , from firms to the capital markets , information also flows from capital markets to firms. [source] The Race Towards Transparency: An Experimental InvestigationECONOMIC NOTES, Issue 3 2002Marco Rossi To understand the current tendency toward transparency, we studied the effects of accounting disclosure in a laboratory. In our experiment, transparency in the financial accounts of the listed companies improved information efficiency; but, even after checking for fundamentals, the transparency increased the volatility of market prices. Moreover, transparency improved investors' utility, so that their preference for more certain assets emerged. Therefore, we argue that the current race toward transparency may be better explained by firms' and markets' intention to attract household investments rather than to improve market efficiency. (J.E.L.: G92, D44, D81, G12, G28). [source] Short-term scheduling of a wind generation and hydrogen storage in the electricity marketEUROPEAN TRANSACTIONS ON ELECTRICAL POWER, Issue 5 2010G. Tina Abstract Intermittent renewable energy sources (RES) are promising to be the future of electricity generation. In particular wind generation, owing to its stochastic behaviour, has to be carefully managed. Its lack of sufficient predictability decreases the energy value in the current framework of electrical markets, therefore, beyond a certain threshold; this kind of generation into the electrical system represents a problem for the transmission system operator (TSO) during its despatching service. The coupling of wind energy conversion system (WECS) with a storage medium (i.e. hydrogen) could improve the programmability of such generation plants in electrical markets. In this paper, an economical optimization tool has been developed in order to find the short-term scheduling so as to maximize the economic revenues in the day-ahead electricity market of a storage plant coupled with a wind farm. This tool needs as input the forecasts of both wind generation power and market prices, obtained with the adoption of pre-processing input data algorithm based on different methods that involve both statistical and probabilistic approaches. Copyright © 2009 John Wiley & Sons, Ltd. 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