Investor attention, analyst recommendation revisions, and stock prices

We provide evidence that investors underreact after analysts' recommendation upgrades; however, price reactions are faster after downgrades. We measure individual investors' attention using Google's search volume index. Our findings indicate that, after upgrades, stocks that enjoy greater individual investors' attention underreact significantly more compared to stocks that receive high level of attention from institutional investors. On the other hand, after recommendation downgrades, stocks with higher levels of prior attention from individual investors overreact and show a significantly greater price reversal compared to stocks that received high level of attention from institutional investors. Our results suggest that attentive individual investors may not be rational; hence investor attention and investor sophistication are important for price discovery in the market.

The Post-revision drift, analyst characteristics and investor attention

The aim of this dissertation is to provide a coherent explanation for the post-analyst recommendation drift. First, I find that the post-analyst recommendation drift is explained by the degree of attention paid by individual investors. Second I find that the extremeness and the credibility of information leads to changes in the degree of attention and a post-analyst recommendation drift. Finally, I find that the diffusion of private information contained in the analyst recommendation interacts with attention related biases leading to a post-recommendation drift.

Valuation and reporting of native fauna in monetary terms: compatibility between a market-Based system and natural resources?

A change in community values and priorities has introduced ethical,
environmental and social issues into the way in which business conducts
its activities. There are an increasing number of managed investment funds focusing on socially responsible investment (SRI) by concentrating on firms that operate according to predetermined criteria for environmental, social and ethical issues. For investors in these funds environmental stewardship issues are integrated with concern over financial resources and performance. In this paper the accounting and reporting by business activities concerned with conservation of wildlife are examined. The world of accounting has functioned for many years with relatively few accounting standards devoted to specialised industry needs. In 1998 the Australian Accounting Standards Board and in 2001 the International Accounting Standards Board issued standards devoted to agriculture. Both standards deal with the reporting of managed biological assets and require application of essentially the same approaches despite the Australian standard requiring net market value while the International standard requires fair value. In this paper we analyse how one conservation firm Earth Sanctuaries Ltd. (ESL) has applied AASB 1037 and then we explore the implications for conservation firms operating in geographical locations outside Australia. It is suggested that AASB 1037 and indeed lAS 41 may not provide value appropriate information for investor decisions relating to accounting profits for such firms. Our examination shows that it is appropriate to reconsider accounting guidelines provided by these standards in order to link the information relating to economic and environmental performance. Transparency may be improved by a move closer to Elkington 's (1997) triple bottom line reporting. We therefore contend that the issues arising from the use ofAASB 1037 and lAS 41 need to be widely considered by all standard setters, particularly given the increasing attention to SRI.

Strategies to develop divided attention skills through video game training

Research .over the past two decades has confirmed the learning opportunities that video games can offer. The objectives of the current study were to investigate the ability of video games to enhance divided attention skills and compare these skills based on individuals' level of expertise in video game playing. Female participants aged between 17-25 years categorised as experts or novices, were divided into experimental and control groups. All participants completed the pre and post-test of divided attention between which only the experimental group received video game training. Results indicate that participants who received video game practice achieved an increase in their dual-attention skills compared to those who did not receive any training, with novices displaying a greater
enhancement in perfonnance. Implications include the provision of video game training to enhance divided attention skills in air pilot training, driving, and heavyequipment operation apart from other tasks necessitating dual-task efficiency.

Literacy, technology and the economics of attention

This article is based on a project aimed at generating practical suggestions based on research findings about how new technologies might be used to enhance L1 literacy attainment in disadvantagedsettings. The project involved designing,implementing and researching an innovative approach to curriculum and pedagogy using new digital technologies in language and literacy education within classroom settings involving small groups of "disadvantaged'' learners. The paper reports activity and findings from one of four study sites. It focuses on four Grade 9 boys seen by their teachers as troublemakers and at risk of failing in English. The researchers draw on current conceptual and theoretical work associated with the emergence of an Attention Economy theory to design a collaborative activity around constructing a website, and to identify and analyse positive literacy learning outcomes associated with the pedagogical approach taken. The authors show how this new perspective on attention informs a critique of conventional approaches to school organization and classroom learning, and how it can be used to envisage alternative approaches to understanding and teaching students who display literacy learning difficulties at school.

Overseas Chinese as expatriate managers in China: is their recruitment a solution to cross-cultural management problems for multinationals operating in China?

This paper examines the issue of diversity in Chinese identity and how it impacts on the operations of multinationals in China who recruit Overseas Chinese to handle cross-cultural issues. China’s rapid economic development and entry into the World Trade Organization in 2001 made her a formidable player in the global economy and direct foreign investment surged. Yet it is acknowledged that for the foreign investor in China, cross-cultural issues create difficulty at every level, from the interpersonal level relating to communication and negotiation, to the organizational level relating to decision making, human resource management practices, corporate legal institutions and liaison with government institutions. Western multinationals have considered the advantages of posting Overseas Chinese from Southeast Asian countries, Taiwan and Hong Kong to their China operations as a solution to cross-cultural management issues. But has this policy been successful? In terms of language expertise this would seem to be a good strategy, yet organizational case material contradicts this in reality. Overseas Chinese, while sharing some elements of Chinese culture with mainland Chinese, the Confucian heritage and other aspects such as language and diet, nevertheless have different world views and values and behave differently from mainland Chinese in areas critical to business management. As a survival strategy, Overseas Chinese have often developed dual identities which operate simultaneously. For political and historical reasons, many of them have had to adapt to the local culture of their country of citizenship or even hide their own ethnicity in order to survive. On the other hand, the mainland Chinese are different in that their behaviour has only had to be Chinese, but overlaid with this has been the experience of participating in a communist political environment for decades, which has left its mark on mainland Chinese culture. On the basis of their different historical experiences, in the current business environment in China, cultural confusion, difficulty and conflict may occur for the Overseas Chinese.

This paper focuses attention on the subtle cultural differences between the Overseas Chinese and mainland Chinese in an organizational context. This problem has yet to be researched in depth within international business and international management studies. It provides evidence that Overseas Chinese are not often favoured by the local Chinese. It gives insights on how to manage the local Chinese for foreign multinationals operating in China.

Understanding the factors contributing to inter-partner trust in joint ventures

Forming an international joint venture (IJV) with a local (Chinese) partner is one of the popular ways available for an overseas investor to enter into small and medium business sectors in China. A joint venture is commonly viewed as a cooperative, rather than a competitive, business relationship between two or more partners. Interpartner trust is widely acknowledged as a key prerequisite for genuine cooperation between joint venture partners. Although the importance of trust in the context of joint ventures is well recognized, the question of how interpartner trust is formed has received only scant attention in academic as well as professional literatures. Drawing from diverse academic literature bearing on the formation of trust between partner firms, this paper explores the factors that may contribute to inter-partner trust in the context of joint ventures. The primary argument in this paper is that trust between IJV partners is determined by observable and objective social, economic and structural factors. In other words, it is argued that interpartner trust is rational and it does not require a 'leap of faith'.

Automated attention flags in chronic disease care planning

Objectives: To assess the value of computerised decision support in the management of chronic respiratory disease by comparing agreement between three respiratory specialists, general practitioners (care coordinators), and decision support software.
Methods: Care guidelines for two chronic obstructive pulmonary disease projects of the SA HealthPlus Coordinated Care Trial were formulated. Decision support software, Care Plan On-Line (CPOL), was created to represent the intent of these guidelines via automated attention flags to appear in patients' electronic medical records. For a random sample of 20 patients with care plans, decisions about the use of nine additional services (eg,.smoking cessation, pneumococcal vaccination) were compared between the respiratory specialists, the patients' GPs and the CPOL attention flags.
Results: Agreement among the specialists was at the lower end of moderate (intraclass correlation coefficient [ICC], 0.48; 95% CI, 0.39-0.56), with a 20% rate of contradictory decisions. Agreement with recommendations of specialists was moderate to poor for GPs (le, 0.49; 95% CI, 0.33-0.66) and moderate to good for CPOL (K, 0.72; 95% CI, 0.55-0.90). CPOL agreement with GPs was moderate to poor (le, 0.41; 95% CI, 0.24-0.58). GPs were less likely than specialists or CPOL to decide in favour of an additional service (P< 0.001). CPOL was 87% accurate as an indicator of specialist decisions. It gave a 16% false-positive rate according to specialist decisions, and flagged 61% of decisions where GPs said No and specialists said Yes.
Conclusions: Automated decision support may provide GPs with improved access to the intent of guidelines; however, further investigation is required.

Cost-effectiveness of dexamphetamine and methylphenidate for the treatment of childhood attention deficit hyperactivity disorder

Objective: To analyze from a health sector perspective the cost-effectiveness of dexamphetamine (DEX) and methylphenidate (MPH) interventions to treat childhood attention deficit hyperactivity disorder (ADHD), compared to current practice.

Method: Children eligible for the interventions are those aged between 4 and 17 years in 2000, who had ADHD and were seeking care for emotional or behavioural problems, but were not receiving stimulant medication. To determine health benefit, a meta-analysis of randomized controlled trials was performed for DEX and MPH, and the effect sizes were translated into utility values. An assessment on second stage filter criteria ('equity', 'strength of evidence', 'feasibility' and 'acceptability to stakeholders') is also undertaken to incorporate additional factors that impact on resource allocation decisions. Simulation modelling techniques are used to present a 95% uncertainty interval (UI) around the incremental costeffectiveness ratio (ICER), which is calculated in cost (in A$) per DALY averted.

Results: The ICER for DEX is A$4100/DALY saved (95% UI: negative to A$14 000) and for MPH is A$15 000/DALY saved (95% UI: A$9100-22 000). DEX is more costly than MPH for the government, but much less costly for the patient.

Conclusions: MPH and DEX are cost-effective interventions for childhood ADHD. DEX is more cost-effective than MPH, although if MPH were listed at a lower price on the Pharmaceutical Benefits Scheme it would become more cost-effective. Increased uptake of stimulants for ADHD would require policy change. However, the medication of children and wider availability of stimulants may concern parents and the community.

A greener house : the sustainable property investor's guide to buying, building and renovating

Sustainability is now an integral part of society and the built environment. Unfortunately many home owners and home-buyers are unaware of the relationship between sustainability and value, especially with regard to the potential added value to their home. Payback periods can be different depending on factors such as the initial capital outlay and the levels of depreciation and obsolescence, as well as savings made (if any) to the running costs of the home

Paying attention to texts : literacy, culture and curriculum

In his paper in English in Australia in 2002, Bill Green called for a literacy project of our own, and for the need to think again, and think newly about the place of literary literacy within contemporary curriculum. But what does literary literacy mean in curriculum that recognises a wide diversity of texts and literacies? If literature and close attention to the aesthetic and imaginative dimensions remain important, what kinds of texts should we value, and how should we attend to them? This article considers how such matters might be taken up with multimodal texts of different kinds.