Showing papers by "Boston College published in 2002"
TL;DR: In this article, the convergence rate for the factor estimates that will allow for consistent estimation of the number of factors is established, and some panel criteria are proposed to obtain the convergence rates.
Abstract: In this paper we develop some econometric theory for factor models of large dimensions. The focus is the determination of the number of factors (r), which is an unresolved issue in the rapidly growing literature on multifactor models. We first establish the convergence rate for the factor estimates that will allow for consistent estimation of r. We then propose some panel criteria and show that the number of factors can be consistently estimated using the criteria. The theory is developed under the framework of large cross-sections (N) and large time dimensions (T). No restriction is imposed on the relation between N and T. Simulations show that the proposed criteria have good finite sample properties in many configurations of the panel data encountered in practice.
2,863 citations
TL;DR: In this article, the authors use a dialectical perspective to provide a unique framework for understanding institutional change that more fully captures its totalistic, historical, and dynamic nature, as well as fundamentally resolves a theoretical dilemma of institutional theory: the relative swing between agency and embeddedness.
Abstract: We use a dialectical perspective to provide a unique framework for understanding institutional change that more fully captures its totalistic, historical, and dynamic nature, as well as fundamentally resolves a theoretical dilemma of institutional theory: the relative swing between agency and embeddedness. In this framework institutional change is understood as an outcome of the dynamic interactions between two institutional by-products: institutional contradictions and human praxis. In particular, we depict praxis—agency embedded in a totality of multiple levels of interpenetrating, incompatible institutional arrangements (contradictions)—as an essential driving force of institutional change.
2,317 citations
TL;DR: The authors found that the formation of new incorporations increases as the share of small banks decreases, suggesting that diversification benefits of size outweigh the possible comparative advantage small banks may have in forging relationships.
Abstract: The literature is divided on the expected effects of increased competition and consolidation in the financial sector on the supply of credit to relationship borrowers. This paper tests whether policy changes fostering competition and consolidation in U.S. banking helped or harmed entrepreneurs. We find that the rate of new incorporations increases following deregulation of branching restrictions, and that deregulation reduces the negative effect of concentration on new incorporations. We also find the formation of new incorporations increases as the share of small banks decreases, suggesting that diversification benefits of size outweigh the possible comparative advantage small banks may have in forging relationships. OVER THE PAST TWO DECADES, the U.S. financial sector has been reshaped by rapid technological innovation and deregulation. In the 1970s, traditional financial intermediaries, mainly banks, provided the lion's share of credit to nonfinancial companies. At that time, banks had the advantage because they were protected from competitive pressures; price competition was limited by Regulation Q, and entry into banking markets was limited by restrictions on in-state branching and interstate banking. All of this changed over the past 25 years. Starting in the latter half of the 1970s, the U.S. banking system began to be reshaped, both by technological innovations and by the removal of many of these constraining regulations. In the early 1980s, for example, interest rate ceilings were largely removed, allowing banks to compete more vigorously for funds. New technologies like the automated teller machine also enhanced competition within banking, and innovations such as the cash management account offered by nonbank financial companies enhanced competitive pressures from outside the indus
1,047 citations
TL;DR: This study illustrates the use of the Analytical Hierarchy Process (AHP) as a decision support model to help managers understand the trade-offs between environmental dimensions and examines how AHP can be incorporated into a comprehensive information system supporting Environmentally Conscious Purchasing (ECP).
1,034 citations
TL;DR: In this article, a structural model of import demand in which insecurity acts as a hidden tax on trade is proposed, and the authors find that inadequate institutions constrain trade as much as tariffs do.
Abstract: Corruption and imperfect contract enforcement dramatically reduce international trade. This paper estimates the reduction using a structural model of import demand in which insecurity acts as a hidden tax on trade. We find that inadequate institutions constrain trade as much as tariffs do. We also find that omission of indices of institutional quality biases the estimates of typical gravity models, obscuring a negative relationship between per capita income and the share of total expenditure devoted to traded goods. Finally, we argue that cross-country variation in the effectiveness of institutions and the consequent variation in the prices of traded goods offer a simple explanation for the stylized fact that high-income, capital-abundant countries trade disproportionately with each other.
1,001 citations
TL;DR: In this article, the authors examined the ability of the performance-only measurement approach to capture the variance in consumers' overall perceptions of service quality across three studies and concluded that the results from these two studies lent strong support again for the superiority of the Performance-Only approach to the measurement of Service Quality.
918 citations
TL;DR: A analysis of cross correlations between price fluctuations of different stocks using methods of random matrix theory finds that the largest eigenvalue corresponds to an influence common to all stocks, and discusses applications to the construction of portfolios of stocks that have a stable ratio of risk to return.
Abstract: We analyze cross correlations between price fluctuations of different stocks using methods of random matrix theory (RMT). Using two large databases, we calculate cross-correlation matrices C of returns constructed from (i) 30-min returns of 1000 US stocks for the 2-yr period 1994-1995, (ii) 30-min returns of 881 US stocks for the 2-yr period 1996-1997, and (iii) 1-day returns of 422 US stocks for the 35-yr period 1962-1996. We test the statistics of the eigenvalues lambda(i) of C against a "null hypothesis" - a random correlation matrix constructed from mutually uncorrelated time series. We find that a majority of the eigenvalues of C fall within the RMT bounds [lambda(-),lambda(+)] for the eigenvalues of random correlation matrices. We test the eigenvalues of C within the RMT bound for universal properties of random matrices and find good agreement with the results for the Gaussian orthogonal ensemble of random matrices-implying a large degree of randomness in the measured cross-correlation coefficients. Further, we find that the distribution of eigenvector components for the eigenvectors corresponding to the eigenvalues outside the RMT bound display systematic deviations from the RMT prediction. In addition, we find that these "deviating eigenvectors" are stable in time. We analyze the components of the deviating eigenvectors and find that the largest eigenvalue corresponds to an influence common to all stocks. Our analysis of the remaining deviating eigenvectors shows distinct groups, whose identities correspond to conventionally identified business sectors. Finally, we discuss applications to the construction of portfolios of stocks that have a stable ratio of risk to return. (Less)
914 citations
TL;DR: A variety of novel hierarchical nanostructures with 6-, 4-, and 2-fold symmetries have been successfully grown by a vapor transport and condensation technique.
Abstract: A variety of novel hierarchical nanostructures with 6-, 4-, and 2-fold symmetries have been successfully grown by a vapor transport and condensation technique. It was found that the major core nano...
836 citations
Book•
16 Sep 2002TL;DR: The quality of abortion discourse has been investigated in this paperriedhelm Neidhardt's work on the discursive opportunity structure of discourse in the public sphere, focusing on women's claims and the tradition of the left.
Abstract: Tables and figures Foreword Friedhelm Neidhardt Preface Glossary Part I Introduction: 1 Two related stories 2 Historical context 3 Methods Part II Major Outcomes: 4 The discursive opportunity structure 5 Standing 6 Framing Part III Representing Different Constituencies: 7 Representing women's claims 8 Representing religious claims 9 Representing the tradition of the left Part IV The Quality of Abortion Discourse: 10 Normative criteria for the public sphere 11 Measuring the quality of discourse 12 Metatalk 13 Lessons for democracy and the public sphere Methodological appendix References Index
798 citations
TL;DR: In this article, the authors examine the impact of various corporate governance factors, such as the board of directors and the audit committee, on the audit process, and find that auditors view management as the primary driver of corporate governance, and that the inclusion of top management in the corporate governance mosaic is inconsistent with agency theory's prescription of the board and other mechanisms serving as a means to independently oversee management's actions to protect stakeholders.
Abstract: There has been growing recognition in recent years of the importance of corporate governance in ensuring sound financial reporting and deterring fraud. The audit serves as a monitoring device and is thus part of the corporate governance mosaic. The objective of this paper is to examine the impact of various corporate governance factors, such as the board of directors and the audit committee, on the audit process. Importantly, there is little professional guidance on how auditors should consider such factors when formulating an appropriate audit strategy, and there has been only one prior study on this issue (Cohen and Hanno 2000). Because there are no current specific auditing standards that relate to the effect of corporate governance on the audit process, we conducted a semi-structured interview with 36 auditors on current audit practices in considering corporate governance in the audit process. Reflecting on client experiences, auditors indicate a range of views with regard to the elements included in the rubric of “corporate governance”. Most significantly, auditors view management as the primary driver of corporate governance. The inclusion of top management in the “corporate governance mosaic” is inconsistent with agency theory's prescription of the board and other mechanisms serving as a means to independently oversee management's actions to protect stakeholders. Auditors consider corporate governance factors to be especially important in the client acceptance phase and in an international context. Further, despite the attention placed on the audit committee in the academic literature, in the business community, and by regulators in different countries (e.g., Canada, United States, Australia), several respondents indicated that their experiences with their clients suggest that audit committees are typically ineffective and lack sufficient power to be a strong governance mechanism. Implications for research and practice are presented.
701 citations
TL;DR: In this article, the authors examine the influence of customer future-focused considerations, over and above the effects of satisfaction, on the customer's decision to discontinue a service relationship and find that expected future use and anticipated regret influence this decision.
Abstract: The authors examine the influence of customer future-focused considerations, over and above the effects of satisfaction, on the customer’s decision to discontinue a service relationship. The authors find that expected future use and anticipated regret influence this decision. Understanding and managing these future-focused considerations is critical to successful dynamic customer relationship management.
TL;DR: In this paper, the authors investigated the relationship between the physical environment and several key service constructs (i.e., positive effect, enduring involvement, service quality, waiting time, and value) on consumer behavioral intentions.
07 Nov 2002
TL;DR: The "Camera Mouse" system tracks the computer user's movements with a video camera and translates them into the movements of the mouse pointer on the screen, and body features such as the tip of the user's nose or finger can be tracked.
Abstract: The "Camera Mouse" system has been developed to provide computer access for people with severe disabilities. The system tracks the computer user's movements with a video camera and translates them into the movements of the mouse pointer on the screen. Body features such as the tip of the user's nose or finger can be tracked. The visual tracking algorithm is based on cropping an online template of the tracked feature from the current image frame and testing where this template correlates in the subsequent frame. The location of the highest correlation is interpreted as the new location of the feature in the subsequent frame. Various body features are examined for tracking robustness and user convenience. A group of 20 people without disabilities tested the Camera Mouse and quickly learned how to use it to spell out messages or play games. Twelve people with severe cerebral palsy or traumatic brain injury have tried the system, nine of whom have shown success. They interacted with their environment by spelling out messages and exploring the Internet.
TL;DR: In this article, the authors examine the relation between risk and IPO underpricing and test two aspects of the litigation-risk hypothesis: firms with higher litigation risk underprice their IPOs by a greater amount as a form of insurance (insurance effect) and higher under-pricing lowers expected litigation costs (deterrence effect).
TL;DR: This article developed a general model of lending in the presence of endogenous borrowing constraints and derived implications for firm growth, survival, leverage, and debt maturity, which is qualitatively consistent with stylized facts on the growth and survival of firms.
Abstract: We develop a general model of lending in the presence of endogenous borrowing constraints. Borrowing constraints arise because borrowers face limited liability and debt repayment cannot be perfectly enforced. In the model, the dynamics of debt are closely linked with the dynamics of borrowing constraints. In fact, borrowing constraints must satisfy a dynamic consistency requirement: The value of outstanding debt restricts current access to short term capital, but is itself determined by future access to credit. This dynamic consistency is not guaranteed in models of exogenous borrowing constraints, where the ability to raise short term capital is limited by some prespecified function of debt. We characterize the optimal default-free contract - which minimizes borrowing constraints at all histories - and derive implications for firm growth, survival, leverage, and debt maturity. The model is qualitatively consistent with stylized facts on the growth and survival of firms. Comparative statics with respect to technology and default constraints are derived.
TL;DR: A collaborative recommendation technique based on a new algorithm specifically designed to mine association rules for this purpose, which reveals performance that is significantly better than that of traditional correlation-based approaches.
Abstract: Collaborative recommender systems allow personalization for e-commerce by exploiting similarities and dissimilarities among customers' preferences We investigate the use of association rule mining as an underlying technology for collaborative recommender systems Association rules have been used with success in other domains However, most currently existing association rule mining algorithms were designed with market basket analysis in mind Such algorithms are inefficient for collaborative recommendation because they mine many rules that are not relevant to a given user Also, it is necessary to specify the minimum support of the mined rules in advance, often leading to either too many or too few ruless this negatively impacts the performance of the overall system We describe a collaborative recommendation technique based on a new algorithm specifically designed to mine association rules for this purpose Our algorithm does not require the minimum support to be specified in advance Rather, a target range is given for the number of rules, and the algorithm adjusts the minimum support for each user in order to obtain a ruleset whose size is in the desired range Rules are mined for a specific target user, reducing the time required for the mining process We employ associations between users as well as associations between items in making recommendations Experimental evaluation of a system based on our algorithm reveals performance that is significantly better than that of traditional correlation-based approaches
TL;DR: In this article, the authors evaluate the effects of public spending on investment using a panel of OECD countries and find that public spending and its wage component have negative effects on profits and on business investment.
Abstract: This paper evaluates the effects of fiscal policy on investment using a panel of OECD countries. We find a sizeable negative effect of public spending—and in particular of its wage component—on profits and on business investment. This result is consistent with different theoretical models in which government employment creates wage pressure for the private sector. Various types of taxes also have negative effects on profits, but, interestingly, the effects of government spending on investment are larger than those of taxes. Our results can explain the so-called "non-Keynesian" (i.e., expansionary) effects of fiscal adjustments. (JEL E22, E62)
TL;DR: This work proposes a model, which is an extension of the stress-vulnerability model, in which PTSD is hypothesized to mediate the negative effects of trauma on the course of SMI, and discusses the evidence supporting this model, and considers several intervening variables that are hypothesized to moderate the proposed relationships between PTSD and SMI.
TL;DR: In this paper, carbon nanotubes uniformly 50 nm in diameter were grown on graphite foil, and cyclic voltammetry (CV) showed that the carbon-graphite foil electrode has a high specific capacitance (115.7 F/g at a scan rate of 100 mV/s) and exhibits typical double-layer behavior.
TL;DR: In this article, the authors examine the role that the quantity of nonnovel events plays in precipitating disaster through the development of a formal (mathematical) system-dynamics model.
Abstract: This article examines the role that the quantity of nonnovel events plays in precipitating disaster through the development of a formal (mathematical) system-dynamics model. Building on existing case studies of disaster, we develop a general theory of how an organizational system responds to an on-going stream of non-novel interruptions to existing plans and procedures. We show how an overaccumulation of interruptions can shift an organizational system from a resilient, self-regulating regime, which offsets the effects of this accumulation, to a fragile, self-escalating regime that amplifies them. We offer a new characterization of the conditions under which organizations may be prone to major disasters caused by an accumulation of minor interruptions. Our analysis provides both theoretical insights into the causes of organizational crises and practical suggestions for those charged with preventing them.• Major disasters have long interested organization theorists (Perrow, 1984; Shrivastava, 1987; Weick, 1993b; Vaughan, 1996), and their causes continue to be an active area of inquiry. Accidents like the nuclear catastrophe at Chernobyl or Union Carbide’s gas leak at Bhopal are major social events responsible for immeasurable human suffering and environmental damage. There are few more compelling opportunities for organization theory specifically, and the social sciences in general, to prevent suffering and contribute to humanity. Moreover, major disasters provide a unique opportunity to study organizational processes in situations that are far from equilibrium. Just as the designers of bridges and airplanes test their systems under extreme conditions that are rarely, if ever, experienced during actual use, major catastrophes provide a similar opportunity to learn more about the vulnerability and resilience of human and social systems.
TL;DR: The synthesis and structure of a new chiral bidentate imidazolinylidene ligand and a derived chiral Ru-based carbene are disclosed and the chiral complex is highly effective in promoting enantioselective ring-opening/cross metathesis reactions.
Abstract: The synthesis and structure of a new chiral bidentate imidazolinylidene ligand and a derived chiral Ru-based carbene are disclosed. The Ru complex is stereogenic at the metal center; it can be prepared in >98% diastereoselectivity and purified by silica gel chromatography with undistilled solvents. The air-stable Ru complex efficiently catalyzes ring-closing and ring-opening metathesis and is recyclable. The chiral complex is highly effective (0.5−10 mol % loading) in promoting enantioselective ring-opening/cross metathesis reactions (up to >98% ee). These enantioselective transformations can be effected in air, with unpurified solvent and with substrates that would only polymerize with Mo-based catalysts.
TL;DR: The methods developed for the target-specific synthesis of fullerenes, applied here to a synthesis of C60, should make possible the directed laboratory preparation of other fullerene as well, including those not accessible by graphite vaporization.
Abstract: Isolable quantities of C 60 , the smallest stable fullerene, have been synthesized in 12 steps from commercially available starting materials by rational chemical methods. A molecular polycyclic aromatic precursor bearing chlorine substituents at key positions forms C 60 when subjected to flash vacuum pyrolysis at 1100°C. No other fullerenes are formed as by-products. The methods we have developed for the target-specific synthesis of fullerenes, applied here to a synthesis of C 60 , should make possible the directed laboratory preparation of other fullerenes as well, including those not accessible by graphite vaporization.
TL;DR: In this article, the authors examine whether regulation can be used to substitute for internal monitoring mechanisms (percentage of outside directors, officer and director common stock ownership, and CEO/Chair duality) to control for agency conflicts in a firm.
Abstract: In this paper we examine whether regulation can be used to substitute for internal monitoring mechanisms (percentage of outside directors, officer and director common stock ownership, and CEO/Chair duality) to control for agency conflicts in a firm. We find that, in general, the percentage of outside directors is negatively related to insider stock ownership, but is not affected by CEO/Chair duality. CEO/Chair duality is, however, less likely when insider stock ownership increases. We find these internal monitoring mechanisms to be significantly less related with regulated firms (banks and utilities). We conclude that to the extent that regulations reduce the impact of managerial decisions on shareholder wealth, effective internal monitoring of managers becomes less important in controlling agency conflicts. 2002 Elsevier Science B.V. All rights reserved.
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TL;DR: In this article, the authors examine the relationship between the two assets and perspectives in terms of similarities and differences and discuss key issues researchers and practitioners should consider in managing marketing assets, particularly for multibrand companies.
Abstract: What is the difference between brand equity and customer equity? Does the distinction matter? Is there a difference between the firm’s brand asset and customer asset? What are the implications of taking a brand perspective versus a customer perspective when designing and implementing marketing programs? The objective of this article is to examine these two perspectives in depth so that researchers and managers can improve their understanding and use of customer and brand perspectives on marketing. The authors seek to determine the relationship between the two assets and perspectives in terms of similarities and differences. They examine the development of customer and brand perspectives and describe how each adds value to the firm and to the customer. Subsequently, they delineate possible approaches for measuring marketing assets. They discuss key issues researchers and practitioners should consider in managing marketing assets, particularly for multibrand companies. They conclude by suggesting future research directions.
TL;DR: Three variables-past violent victimization, violence in the surrounding environment, and substance abuse-showed a cumulative association with risk of violent behavior.
Abstract: Objectives. This study examined the prevalence and correlates of violent behavior by individuals with severe mental illness. Methods. Participants (N = 802) were adults with psychotic or major mood disorders receiving inpatient or outpatient services in public mental health systems in 4 states. Results. The 1-year prevalence of serious assaultive behavior was 13%. Three variables—past violent victimization, violence in the surrounding environment, and substance abuse—showed a cumulative association with risk of violent behavior. Conclusions. Violence among individuals with severe mental illness is related to multiple variables with compounded effects over the life span. Interventions to reduce the risk of violence need to be targeted to specific subgroups with different clusters of problems related to violent behavior.
TL;DR: In 1996, Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act, which abolished the 60-year-old Aid to Families with Dependent Children (AFDC) programme.
Abstract: In 1996, Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act, which abolished the 60-year-old Aid to Families with Dependent Children (AFDC) programme. This book analyzes how changes in the AFDC programme came about and explores the politics of welfare reform.
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TL;DR: The authors decompose the rise in cross-sectional variance of male annual earnings in the United States from 1969 to 1996 into permanent and transitory components, and find that the variance of permanent earnings began rising in the the late 1970s and has continued to rise in the 1980s.
Abstract: We decompose the rise in cross-sectional variance of male annual earnings in the United States from 1969 to 1996 into permanent and transitory components. We find that the variance of permanent earnings began rising in the the late 1970s and has continued to rise in the 1980s. The variance of transitory earnings also rose in the 1980s but declined in the 1990s. There are lags in the earnings process which require a structural model to pinpoint the exact calendar times at which the changes in trends occurred.
TL;DR: A research-grounded model of two-sided software markets that accounts for several key factors influencing software pricing, including network externalities, cross-market complementarities, standards, mindshare, and trialability is developed and tested.
Abstract: Prior theoretical research has established that many software products are subject to network effects and exhibit the characteristics of two-sided markets. However, despite the importance of the software industry to the world economy, few studies have attempted to empirically examine these characteristics, or several others which theory suggests impact software price. This study develops and tests a research-grounded model of two-sided software markets that accounts for several key factors influencing software pricing, including network externalities, cross-market complementarities, standards, mindshare, and trialability. Applying the model to the context of the market for Web server software, several key findings are offered. First, a positive market share to price relationship is identified, offering support for the network externalities hypothesis even though the market examined is based on open standards. Second, the results suggest that the market under study behaves as a two-sided market in that firms able to capture market share for one product enjoy benefits in terms of both market share and price for the complement. Third, the positive price benefits of securing consumer mindshare, of supporting dominant standards, and from offering a trial product are demonstrated. Last, a negative price shock is also identified in the period after a well-known, free-pricing rival has entered the market. Nonetheless, network effects continued to remain significant during the period. These findings enhance our understanding of software markets, offer new techniques for examining such markets, and suggest the wisdom of allocating resources to develop advantages in the factors studied.
TL;DR: In this article, the normalized chargeability, defined as the chargeability divided by the resistivity magnitude, was proposed to quantify the magnitude of surface polarization, which is proportional to the quadrature conductivity measured in the complex resistivity method.
Abstract: The induced polarization (IP) response of rocks and soils is a function of lithology and fluid conductivity. IP measurements are sensitive to the low‐frequency capacitive properties of rocks and soils, which are controlled by diffusion polarization mechanisms operating at the grain‐fluid interface. IP interpretation typically is in terms of the conventional field IP parameters: chargeability, percentage frequency effect, and phase angle. These parameters are dependent upon both surface polarization mechanisms and bulk (volumetric) conduction mechanisms. Consequently, they afford a poor quantification of surface polarization processes of interest to the field geophysicist. A parameter that quantifies the magnitude of surface polarization is the normalized chargeability, defined as the chargeability divided by the resistivity magnitude. This parameter is proportional to the quadrature conductivity measured in the complex resistivity method. For nonmetallic minerals, the quadrature conductivity and normalize...