Essays on Earnings Management (summary section only)

There is much literature developing theories when and where earnings management occurs. Among the several possible motives driving earnings management behaviour in firms, this thesis focuses on motives that aim to influence the valuation of the firm. Earnings management that makes the firm look better than it really is may result in disappointment for the single investor and potentially leads to a welfare loss in society when the resource allocation is distorted. A more specific knowledge of the occurrence of earnings management supposedly increases the awareness of the investor and thus leads to better investments and increased welfare. This thesis contributes to the literature by increasing the knowledge as to where and when earnings management is likely to occur. More specifically, essay 1 adds to existing research connecting earnings management to IPOs and increases the knowledge in arguing that the tendency to manage earnings differs between the IPOs. Evidence is found that entrepreneur owned IPOs are more likely to be earnings managers than the institutionally owned ones. Essay 2 considers the reliability of quarterly earnings reports that precedes insider selling binges. The essay contributes by suggesting that earnings management is likely to occur before high insider selling. Essay 3 examines the widely studied phenomenon of income smoothing and investigates if income smoothing can be explained with proxies for information asymmetry. The essay argues that smoothing is more pervasive in private and smaller firms.

Strategic Soft Human Resource Management - The Very Idea

On the one hand this thesis attempts to develop and empirically test an ethically defensible theorization of the relationship between human resource management (HRM) and competitive advantage. The specific empirical evidence indicates that at least part of HRM's causal influence on employee performance may operate indirectly through a social architecture and then through psychological empowerment. However, in particular the evidence concerning a potential influence of HRM on organizational performance seems to put in question some of the rhetorics within the HRM research community. On the other hand, the thesis tries to explicate and defend a certain attitude towards the philosophically oriented debates within organization science. This involves suggestions as to how we should understand meaning, reference, truth, justification and knowledge. In this understanding it is not fruitful to see either the problems or the solutions to the problems of empirical social science as fundamentally philosophical ones. It is argued that the notorious problems of social science, in this thesis exemplified by research on HRM, can be seen as related to dynamic complexity in combination with both the ethical and pragmatic difficulty of ”laboratory-like-experiments”. Solutions … can only be sought by informed trials and errors depending on the perceived familiarity with the object(s) of research. The odds are against anybody who hopes for clearly adequate social scientific answers to more complex questions. Social science is in particular unlikely to arrive at largely accepted knowledge of the kind ”if we do this, then that will happen”, or even ”if we do this, then that is likely to happen”. One of the problems probably facing most of the social scientific research communities is to specify and agree upon the ”this ” and the ”that” and provide convincing evidence of how they are (causally) related. On most more complex questions the role of social science seems largely to remain that of contributing to a (critical) conversation, rather than to arrive at more generally accepted knowledge. This is ultimately what is both argued and, in a sense, demonstrated using research on the relationship between HRM and organizational performance as an example.

Cross-Border Competence Management in Emerging Markets: Voices from China and Russia

This book is on cross-border competence management in Russia and China. Corporations are facing a number of problems and challenges in their international operations, to which there typically are no simple solutions. For instance, they need to understand and respond to cultural and institutional diversity and ascertain that their foreign units are integrated with the rest of the corporation. Throughout this report we will discuss a range of challenges confronting firms as they seek to develop their capabilities to operate internationally. Some of the challenges are clearly case specific, and although this book aims to offer research-based advice to practicing managers there is a potential danger in applying lessons from other companies to the own firm. Our hope is that our analyses of the challenges facing Finnish corporations in China and Russia reported together with extensive quotes from our interviews and insights from other recent studies will help readers draw their own conclusions as to how to deal with issues related to competence management across borders. With this book we also aspire to contribute to the academic literature by providing new insights into cross-border competence management in general and the operations of Finnish corporations in Russia and China in particular.

Profitable Customer Management: A Study in Retail Banking

The increasing focus of relationship marketing and customer relationship management (CRM) studies on issues of customer profitability has led to the emergence of an area of research on profitable customer management. Nevertheless, there is a notable lack of empirical research examining the current practices of firms specifically with regard to the profitable management of customer relationships according to the approaches suggested in theory. This thesis fills this research gap by exploring profitable customer management in the retail banking sector. Several topics are covered, including marketing metrics and accountability; challenges in the implementation of profitable customer management approaches in practice; analytic versus heuristic (‘rule of thumb’) decision making; and the modification of costly customer behavior in order to increase customer profitability, customer lifetime value (CLV), and customer equity, i.e. the financial value of the customer base. The thesis critically reviews the concept of customer equity and proposes a Customer Equity Scorecard, providing a starting point for a constructive dialog between marketing and finance concerning the development of appropriate metrics to measure marketing outcomes. Since customer management and measurement issues go hand in hand, profitable customer management is contingent on both marketing management skills and financial measurement skills. A clear gap between marketing theory and practice regarding profitable customer management is also identified. The findings show that key customer management aspects that have been proposed within the literature on profitable customer management for many years, are not being actively applied by the banks included in the research. Instead, several areas of customer management decision making are found to be influenced by heuristics. This dilemma for marketing accountability is addressed by emphasizing that CLV and customer equity, which are aggregate metrics, only provide certain indications regarding the relative value of customers and the approximate value of the customer base (or groups of customers), respectively. The value created by marketing manifests itself in the effect of marketing actions on customer perceptions, behavior, and ultimately the components of CLV, namely revenues, costs, risk, and retention, as well as additional components of customer equity, such as customer acquisition. The thesis also points out that although costs are a crucial component of CLV, they have largely been neglected in prior CRM research. Cost-cutting has often been viewed negatively in customer-focused marketing literature on service quality and customer profitability, but the case studies in this thesis demonstrate that reduced costs do not necessarily have to lead to lower service quality, customer retention, and customer-related revenues. Consequently, this thesis provides an expanded foundation upon which marketers can stake their claim for accountability. By focusing on the range of drivers and all of the components of CLV and customer equity, marketing has the potential to provide specific evidence concerning how various activities have affected the drivers and components of CLV within different groups of customers, and the implications for customer equity on a customer base level.

Work/Family Reconciliation: Corporate Management, Family Policies, and Gender Equality in the Finnish Context

Work/family reconciliation is a crucial question for both personal well-being and on societal level for productivity and re-production throughout the Western world. This thesis examines work/family reconciliation on societal and organisational level in the Finnish context. The study is based on an initial framework, developing it further and analysing the results with help of it. The methodology of the study is plural, including varying epistemological emphasis and both quantitative and qualitative methods. Policy analysis from two different sectors is followed by a survey answered by 113 HR-managers, and then, based on quantitative analyses, interviews in four chosen case companies. The central findings of the thesis are that there indeed are written corporate level policies for reconciling work and family in companies operating in Finland, in spite of the strong state level involvement in creating a policy context in work/family reconciliation. Also, the existing policies vary in accessibility and use. The most frequently used work/family policies still are the statutory state level policies for family leave, taking place when a baby is born and during his or her first years. Still, there are new policies arising, such as a nurse for an employee’s child who has fallen ill, that are based on company activity only, which shows in both accessibility and use of the policy. Reasons for developing corporate level work/family policies vary among the so-called pro-active and re-active companies. In general, family law has a substantial effect for developing corporate level policies. Also headquarter gender equality strategies as well as employee demands are important. In regression analyses, it was found that corporate image and importance in recruitment are the foremost reasons for companies to develop policies, not for example the amount of female employees in the company. The reasons for policy development can be summarized into normative pressures, coercive pressures and mimetic pressures, in line with findings from institutional theory. This research, however, includes awareness of different stakeholder interests and recognizes that institutional theory needs to be complemented with notions of gender and family, which seem to play a part in perceived work/family conflict and need for further work/family policies both in managers’ personal lives and on the organisational level. A very central finding, demanding more attention, is the by HR managers perceived change in values towards work and commitment towards organisation at the youngest working generation, Generation Y. This combined with the need for key personnel has brought new challenges to companies especially in knowledge business and will presumably lead to further development of flexible practices in organisations. The accessibility to this flexibility seems to, however, be even more dependent on the specific knowledge and skills of the employee. How this generation will change the organisations remains to be seen in further research.

A Strategy for Conserving the Biodiversity of the Uttara Kannada District in South India

Taking the various values ascribed to biodiversity as its point of departure rather many years ago, the present study aims at deriving a conservation strategy for Uttara Kannada. This hilly district, with the highest proportion of its area under forests in South India, is divided into five ecological zones: coastal, northern evergreen, southern evergreen, moist deciduous, and dry deciduous. The heavily-populated coastal zone includes mangrove forests and estuarine wetlands. The evergreen forests are particularly rich in the diversity of plant species which they support - including wild relatives of a number of cultivated plants. They also serve a vital function in watershed conservation. The moist deciduous forests are rich in bird species; both moist and dry deciduous forests include a number of freshwater ponds and lakes that support a high diversity of aquatic birds.Reviewing the overall distribution of biodiversity, we identify specific localities - including estuaries, evergreen forests, and moist deciduous forests - which should be set aside as Nature reserves. These larger reserves must be complemented by a network of traditionally-protected sacred groves and sacred trees that are distributed throughout the district and that protect today, for instance, the finest surviving stand of dipterocarp trees.We also spell out the necessary policy-changes in overall development strategy that should stem the ongoing decimation of biodiversity. These include (1) revitalizing community-based systems of sustainable management of village forests and protection of sacred groves and trees; (2) reorienting the usage-pattern of reserve forests from production of a limited variety of timber and softwood species for industrial consumers, to production of a larger diversity of non-wood forest produce of commercial value to support the rural economy; (3) utilizing marginal lands under private ownership for generating industrial wood supplies; and (4) provision of incentives for in situ maintenance of land-races of cultivated plants - especially evergreen, fruit-yielding trees - by the local people.It is proposed that this broad framework be now taken to the local communities, and that an action-plan be developed on the basis of inputs provided - and initiatives taken - by them.

The potential of microbial ecological indicators to guide ecosophisticated management of hydrocarbon-contaminated soils

Soil is an unrenewable natural resource under increasing anthropogenic pressure. One of the main threats to soils, compromising their ability to provide us with the goods and ecosystem services we expect, is pollution. Oil hydrocarbons are the most common soil contaminants, and they disturb not just the biota but also the physicochemical properties of soils. Indigenous soil micro-organisms respond rapidly to changes in the soil ecosystem, and are chronically in direct contact with the hydrophobic pollutants on the soil surfaces. Soil microbial variables could thus serve as an intrinsically relevant indicator of soil quality, to be used in the ecological risk assessment of contaminated and remediated soils. Two contrasting studies were designed to investigate soil microbial ecological responses to hydrocarbons, together with parallel changes in soil physicochemical and ecotoxicological properties. The aim was to identify quantitative or qualitative microbiological variables that would be practicable and broadly applicable for the assessment of the quality and restoration of oil-polluted soil. Soil bacteria commonly react on hydrocarbons as a beneficial substrate, which lead to a positive response in the classical microbiological soil quality indicators; negative impacts were accurately reflected only after severe contamination. Hydrocarbon contaminants become less bioavailable due to weathering processes, and their potentially toxic effects decrease faster than the total concentration. Indigenous hydrocarbon degrader bacteria, naturally present in any terrestrial environment, use specific mechanisms to improve access to the hydrocarbon molecules adsorbed on soil surfaces. Thus when contaminants are unavailable even to the specialised degraders, they should pose no hazard to other biota either. Change in the ratio of hydrocarbon degrader numbers to total microbes was detected to predictably indicate pollutant effects and bioavailability. Also bacterial diversity, a qualitative community characteristic, decreased as a response to hydrocarbons. Stabilisation of community evenness, and community structure that reflected clean reference soil, indicated community recovery. If long-term temporal monitoring is difficult and appropriate clean reference soil unavailable, such comparison could possibly be based on DNA-based community analysis, reflecting past+present, and RNA-based community analysis, showing exclusively present conditions. Microbial ecological indicators cannot replace chemical oil analyses, but they are theoretically relevant and operationally practicable additional tools for ecological risk assessment. As such, they can guide ecologically informed and sustainable ecosophisticated management of oil-contaminated lands.

Power Management and Data Rate Maximization in Wireless Energy Harvesting Sensors

This paper considers the problem of power management and throughput maximization for energy neutral operation when using Energy Harvesting Sensors (EHS) to send data over wireless links. It is assumed that the EHS are designed to transmit data at a constant rate (using a fixed modulation and coding scheme) but are power-controlled. A framework under which the system designer can optimize the performance of EHS when the channel is Rayleigh fading is developed. For example, the highest average data rate that can be supported over a Rayleigh fading channel given the energy harvesting capability, the battery power storage efficiency and the maximum allowed transmit energy per slot is derived. Furthermore, the optimum transmission scheme that guarantees a particular data throughput is derived. The usefulness of the framework developed is illustrated through simulation results for specific examples.

Role of Management Decision Variables in Determining Technology Progress and Technical Efficiency in Indian Electronic Industry

This paper analyses the influence of management on Technical Efficiency Change (TEC) and Technological Progress (TP) in the communication equipment and consumer electronics sub-sectors of Indian hardware electronics industry. Each sub-sector comprises 13 sample firms for two time periods.The primary objective is to determine the relative contribution of TP and TEC to TFP Growth (TFPG) and to establish the influence of firm specific operational management decision variables on these two components. The study finds that both the sub-sectors have strived and achieved steady TP but not TEC in the period of economic liberalisation to cope with the intensifying competition. The management decisions with respect to asset and profit utilization, vertical integration, among others, improved TP and TE in the sub-sectors. However, R&D investments and technology imports proved costly for TFP indicating inadequate efforts and/or poor resource utilisation by the management. Management was found to be complacent in terms of improving or developing their own technology as indicated by their higher dependence on import of raw materials and no influence of R&D on TP.

Seismic hazard maps and spectrum for Patna considering region-specific seismotectonic parameters

The objective of this paper was to develop the seismic hazard maps of Patna district considering the region-specific maximum magnitude and ground motion prediction equation (GMPEs) by worst-case deterministic and classical probabilistic approaches. Patna, located near Himalayan active seismic region has been subjected to destructive earthquakes such as 1803 and 1934 Bihar-Nepal earthquakes. Based on the past seismicity and earthquake damage distribution, linear sources and seismic events have been considered at radius of about 500 km around Patna district center. Maximum magnitude (M (max)) has been estimated based on the conventional approaches such as maximum observed magnitude (M (max) (obs) ) and/or increment of 0.5, Kijko method and regional rupture characteristics. Maximum of these three is taken as maximum probable magnitude for each source. Twenty-seven ground motion prediction equations (GMPEs) are found applicable for Patna region. Of these, suitable region-specific GMPEs are selected by performing the `efficacy test,' which makes use of log-likelihood. Maximum magnitude and selected GMPEs are used to estimate PGA and spectral acceleration at 0.2 and 1 s and mapped for worst-case deterministic approach and 2 and 10 % period of exceedance in 50 years. Furthermore, seismic hazard results are used to develop the deaggregation plot to quantify the contribution of seismic sources in terms of magnitude and distance. In this study, normalized site-specific design spectrum has been developed by dividing the hazard map into four zones based on the peak ground acceleration values. This site-specific response spectrum has been compared with recent Sikkim 2011 earthquake and Indian seismic code IS1893.

Performance evaluation of mobile agent based resource management protocol for MANETs

The nodes with dynamicity, and management without administrator are key features of mobile ad hoc networks (1VIANETs). Increasing resource requirements of nodes running different applications, scarcity of resources, and node mobility in MANETs are the important issues to be considered in allocation of resources. Moreover, management of limited resources for optimal allocation is a crucial task. In our proposed work we discuss a design of resource allocation protocol and its performance evaluation. The proposed protocol uses both static and mobile agents. The protocol does the distribution and parallelization of message propagation (mobile agent with information) in an efficient way to achieve scalability and speed up message delivery to the nodes in the sectors of the zones of a MANET. The protocol functionality has been simulated using Java Agent Development Environment (JADE) Framework for agent generation, migration and communication. A mobile agent migrates from central resource rich node with message and navigate autonomously in the zone of network until the boundary node. With the performance evaluation, it has been concluded that the proposed protocol consumes much less time to allocate the required resources to the nodes under requirement, utilize less network resources and increase the network scalability. (C) 2015 Elsevier B.V. All rights reserved.

A sub-regional management framework for South Pacific longline fisheries

The principal objective of this study was to determine if additional net benefits can be derived from the sub-regional longline fishery by the introduction of a new management agreement that would centre on the provision of licensing arrangements that would allow access by eligible longline vessels to multiple Exclusive Economic Zones, i.e. Multi-zone Access. [90pp.]

Reducing non-point DOC and nitrogen exports from rice fields: A pilot study and quantitative survey to determine the effects of different hydrologic management practices : Deliverable 15.3 Final Report

Rice cultivation at any level in the Sacramento–San Joaquin Delta (existing or expanded) compels the need to quantify surface and subsurface loads of dissolved organic carbon (DOC), disinfection byproduct precursors (DBPPs) and nitrogen. This information can be used to develop Best Management Practices (BMPs) to reduce export of these constituents in order to improve drinking water quality. Although rice cultivation in the Delta is relatively limited, several factors outside of this research could contribute to increased rice acreage in the Delta: • Recently developed rice varieties seem more suitable for the Delta climate than earlier varieties which required warmer conditions; • Previous economic analyses (Appendix A.10) suggest rice is more profitable than corn, a dominant land use in the Delta; • Recent studies on wetlands at Twitchell Island suggest rice production can help mitigate oxidative subsidence (Miller et al. 2000); • The different oxidative states that result from flooding in rice as compared to those found in crops that require drained soils may help control crop specific weeds and nematodes when rice is incorporated into a crop rotation; and • Providing flooded conditions during a greater part of the year than other crops may benefit water birds. ... (PDF contains 249 pages)

Caribbean connectivity: implications for Marine Protected Area Management. Proceedings of a Special Symposium, 9-11 November 2006, 59th Annual Meeting of the Gulf and Caribbean Fisheries Institute, Belize City, Belize

Executive Summary: Tropical marine ecosystems in the Caribbean region are inextricably linked through the movement of pollutants, nutrients, diseases, and other stressors, which threaten to further degrade coral reef communities. The magnitude of change that is occurring within the region is considerable, and solutions will require investigating pros and cons of networks of marine protected areas (MPAs), cooperation of neighboring countries, improved understanding of how external stressors degrade local marine resources, and ameliorating those stressors. Connectivity can be broadly defined as the exchange of materials (e.g., nutrients and pollutants), organisms, and genes and can be divided into: 1) genetic or evolutionary connectivity that concerns the exchange of organisms and genes, 2) demographic connectivity, which is the exchange of individuals among local groups, and 3) oceanographic connectivity, which includes flow of materials and circulation patterns and variability that underpin much of all these exchanges. Presently, we understand little about connectivity at specific locations beyond model outputs, and yet we must manage MPAs with connectivity in mind. A key to successful MPA management is how to most effectively work with scientists to acquire the information managers need. Oceanography connectivity is poorly understood, and even less is known about the shape of the dispersal curve for most species. Dispersal kernels differ for various systems, species, and life histories and are likely highly variable in space and time. Furthermore, the implications of different dispersal kernels on population dynamics and management of species is unknown. However, small dispersal kernels are the norm - not the exception. Linking patterns of dispersal to management options is difficult given the present state of knowledge. The behavioral component of larval dispersal has a major impact on where larvae settle. Individual larval behavior and life history details are required to produce meaningful simulations of population connectivity. Biological inputs are critical determinants of dispersal outcomes beyond what can be gleaned from models of passive dispersal. There is considerable temporal and spatial variation to connectivity patterns. New models are increasingly being developed, but these must be validated to understand upstream-downstream neighborhoods, dispersal corridors, stepping stones, and source/sink dynamics. At present, models are mainly useful for providing generalities and generating hypotheses. Low-technology approaches such as drifter vials and oceanographic drogues are useful, affordable options for understanding local connectivity. The “silver bullet” approach to MPA design may not be possible for several reasons. Genetic connectivity studies reveal divergent population genetic structures despite similar larval life histories. Historical stochasticity in reproduction and/or recruitment likely has important, longlasting consequences on present day genetic structure. (PDF has 200 pages.)

Knowledge, attitudes and perceptions of management strategies and regulations of the Florida Keys National Marine Sanctuary by commercial fishers, dive operators, and environmental group members: A baseline characterization and 10-year comparison

This research is part of the Socioeconomic Research & Monitoring Program for the Florida Keys National Marine Sanctuary (FKNMS), which was initiated in 1998. In 1995-96, a baseline study on the knowledge, attitudes and perceptions of proposed FKNMS management strategies and regulations of commercial fishers, dive operators and on selected environmental group members was conducted by researchers at the University of Florida and the University of Miami’s Rosenstiel School of Atmospheric and Marine Science (RSMAS). The baseline study was funded by the U.S. Man and the Biosphere Program, and components of the study were published by Florida Sea Grant and in several peer reviewed journals. The study was accepted into the Socioeconomic Research & Monitoring Program at a workshop to design the program in 1998, and workshop participants recommended that the study be replicated every ten years. The 10-year replication was conducted in 2004-05 (commercial fishers) 2006 (dive operators) and 2007 (environmental group members) by the same researchers at RSMAS, while the University of Florida researchers were replaced by Thomas J. Murray & Associates, Inc., which conducted the commercial fishing panels in the FKNMS. The 10-year replication study was funded by NOAA’s Coral Reef Conservation Program. The study not only makes 10-year comparisons in the knowledge, attitudes and perceptions of FKNMS management strategies and regulations, but it also establishes new baselines for future monitoring efforts. Things change, and following the principles of “adaptive management”, management has responded with changes in the management plan strategies and regulations. Some of the management strategies and regulations that were being proposed at the time of the baseline 1995-96 study were changed before the management plan and regulations went into effect in July 1997. This was especially true for the main focus of the study which was the various types of marine zones in the draft and final zoning action plan. Some of the zones proposed were changed significantly and subsequently new zones have been created. This study includes 10-year comparisons of socioeconomic/demographic profiles of each user group; sources and usefulness of information; knowledge of purposes of FKNMS zones; perceived beneficiaries of the FKNMS zones; views on FKNMS processes to develop management strategies and regulations; views on FKNMS zone outcomes; views on FKNMS performance; and general support for FKNMS. In addition to new baseline information on FKNMS zones, new baseline information was developed for spatial use, investment and costs-and-earnings for commercial fishers and dive operators, and views on resource conditions for all three user groups. Statistical tests were done to detect significant changes in both the distribution of responses to questions and changes in mean scores for items replicated over the 10-year period. (PDF has 143 pages.)