Audit pricing, reporting quality, and auditor switches in the post -SOX period

The Sarbanes-Oxley Act represents an important watershed event in the history and regulation of the accounting profession. In this dissertation, I develop arguments as to why we can expect differences in auditor behavior before and after SOX and empirically test if indeed there were differences in auditor behavior before and after SOX. My dissertation consists of three essays. For the three essays, I investigate issues related to auditor independence, audit pricing, the impact of auditor changes in the post-SOX period. The motivation for the first part of my research comes from the SEC's assertions that there are differences between types of non-audit services in terms of their potential to adversely impact auditor independence. The first part of my dissertation empirically validates the SEC's assertions that auditors would be more conservative in those instances where the tax and other non-audit services fee ratios are high but not when the audit-related fee ratio is high. The second part of my study examines if auditors are less likely to "low ball" their audit fees in the period after SOX than in the period preceding SOX. Legislators, regulators, and the media have expressed concerns that auditors "low ball" the fees for initial year audits and that such low-balling can lead to reduced audit quality. I find that there is significant initial year audit fee discount in pre-SOX period and but the fee discount does not hold in post-SOX periods. The third part of my dissertation examines the association between auditor switches and auditor conservatism. I find that a large portion of Big 4 clients switch to non-Big 4 auditors and there is no significant evidence indicating that successor auditors are more conservative in the post-SOX period.

Liquidity, governance and adverse selection in asset pricing

A plethora of recent literature on asset pricing provides plenty of empirical evidence on the importance of liquidity, governance and adverse selection of equity on pricing of assets together with more traditional factors such as market beta and the Fama-French factors. However, literature has usually stressed that these factors are priced individually. In this dissertation we argue that these factors may be related to each other, hence not only individual but also joint tests of their significance is called for. ^ In the three related essays, we examine the liquidity premium in the context of the finer three-digit SIC industry classification, joint importance of liquidity and governance factors as well as governance and adverse selection. Recent studies by Core, Guay and Rusticus (2006) and Ben-Rephael, Kadan and Wohl (2010) find that governance and liquidity premiums are dwindling in the last few years. One reason could be that liquidity is very unevenly distributed across industries. This could affect the interpretation of prior liquidity studies. Thus, in the first chapter we analyze the relation of industry clustering and liquidity risk following a finer industry classification suggested by Johnson, Moorman and Sorescu (2009). In the second chapter, we examine the dwindling influence of the governance factor if taken simultaneously with liquidity. We argue that this happens since governance characteristics are potentially a proxy for information asymmetry that may be better captured by market liquidity of a company's shares. Hence, we jointly examine both the factors, namely, governance and liquidity - in a series of standard asset pricing tests. Our results reconfirm the importance of governance and liquidity in explaining stock returns thus independently corroborating the findings of Amihud (2002) and Gompers, Ishii and Metrick (2003). Moreover, governance is not subsumed by liquidity. Lastly, we analyze the relation of governance and adverse selection, and again corroborate previous findings of a priced governance factor. Furthermore, we ascertain the importance of microstructure measures in asset pricing by employing Huang and Stoll's (1997) method to extract an adverse selection variable and finding evidence for its explanatory power in four-factor regressions.^

Three Essays on Asset Pricing

In this dissertation, I investigate three related topics on asset pricing: the consumption-based asset pricing under long-run risks and fat tails, the pricing of VIX (CBOE Volatility Index) options and the market price of risk embedded in stock returns and stock options. These three topics are fully explored in Chapter II through IV. Chapter V summarizes the main conclusions. In Chapter II, I explore the effects of fat tails on the equilibrium implications of the long run risks model of asset pricing by introducing innovations with dampened power law to consumption and dividends growth processes. I estimate the structural parameters of the proposed model by maximum likelihood. I find that the stochastic volatility model with fat tails can, without resorting to high risk aversion, generate implied risk premium, expected risk free rate and their volatilities comparable to the magnitudes observed in data. In Chapter III, I examine the pricing performance of VIX option models. The contention that simpler-is-better is supported by the empirical evidence using actual VIX option market data. I find that no model has small pricing errors over the entire range of strike prices and times to expiration. In general, Whaley’s Black-like option model produces the best overall results, supporting the simpler-is-better contention. However, the Whaley model does under/overprice out-of-the-money call/put VIX options, which is contrary to the behavior of stock index option pricing models. In Chapter IV, I explore risk pricing through a model of time-changed Lévy processes based on the joint evidence from individual stock options and underlying stocks. I specify a pricing kernel that prices idiosyncratic and systematic risks. This approach to examining risk premia on stocks deviates from existing studies. The empirical results show that the market pays positive premia for idiosyncratic and market jump-diffusion risk, and idiosyncratic volatility risk. However, there is no consensus on the premium for market volatility risk. It can be positive or negative. The positive premium on idiosyncratic risk runs contrary to the implications of traditional capital asset pricing theory.

A study to adapt various sales forecasting methods for use by military club managers

The purpose of this study is to adapt and combine the following methods of sales forecasting: Classical Time-Series Decomposition, Operationally Based Data and Judgmental Forecasting for use by military club managers.

Reaganomics and its effects on pricing and participation in the regular paying sector of the National School Lunch Program in Dade County public high schools

Problem: This research proposes to examine the effects of Reaganomics on pricing and participation in the regular paying sector of the National School Lunch Program in Dade County Public High Schools. Subproblems: The first subproblem is to examine the effects of Reaganomics on pricing in the regular paying sector of the National School Lunch Program in Dade County Public High Schools. The second subproblem is to examine the effects of Reaganomics on participation in the regular paying sector of the National School Lunch Program in Dade County Public High Schools. Hypotheses: The first hypothesis is that Reaganomics has resulted in price increases to the regular paying sector of the National School Lunch Program in Dade County Public High Schools. The second hypothesis is that Reaganomics has decreased the percentage of the regular paying sector participating in the National School Lunch Program in Dade County Public High Schools.

Estudio del efecto de la reducción del contenido de sales nitrificantes en la calidad microbiológica y aroma de los embutidos crudos curados

Entre las diferentes técnicas que se utilizan para la conservación de la carne se encuentra el curado, método tradicional basado en el empleo de cloruro sódico conjuntamente con sales nitrificantes (nitratos y/o nitritos). Estos compuestos ejercen un importante papel como antimicrobianos y antioxidantes, y participan en la formación del color y aroma típicos de los productos curados. A pesar de todos estos efectos beneficiosos, las sales nitrificantes pueden ser precursoras de la formación de nitrosaminas, compuestos con actividad carcinogénica, teratogénica y mutagénica demostrada. Por este motivo, en los últimos años se ha planteado la posibilidad de reducir la presencia de nitratos y nitritos o incluso evitar su utilización en los productos cárnicos. Para ello es necesario llevar a cabo estudios rigurosos sobre el impacto real de la concentración de nitrificantes en estos productos, a fin de evaluar la posibilidad de disminuir las cantidades permitidas, sin que ello afecte a su seguridad y calidad sensorial. Teniendo en cuenta estos antecedentes, esta Tesis Doctoral se planteó como objetivo evaluar el efecto de la reducción de la concentración de nitrato y nitrito (hasta en un 50% de la cantidad máxima permitida actualmente) en la evolución de la microbiota habitual de los embutidos crudos curados y en el control de los principales microorganismos patógenos asociados a su consumo, así como en el perfil de compuestos volátiles responsables de su aroma...

Viabilidad tecnológica y biodisponibilidad de diferentes sales de calcio como ingredientes funcionales en productos cárnicos

La carne y los productos cárnicos son alimentos importantes de la dieta, ya que poseen compuestos de un elevado valor biológico como los aminoácidos, vitaminas, principalmente del grupo B y minerales como el hierro, zinc y fósforo. Sin embargo, durante los últimos años, se han relacionado con algunas enfermedades como las cardiovasculares y la obesidad. Este hecho ha contribuido a un descenso de su consumo y se han convertido en objetivo de científicos e industrias cárnicas para transformarlos en nuevos productos de acuerdo con las recomendaciones nutricionales. Por ello se han desarrollado productos cárnicos funcionales mediante el empleo de diferentes estrategias, como la incorporación de compuestos bioactivos beneficiosos para la salud. Entre ellos caben destacar diferentes tipos de fibra, polifenoles, ácidos grasos insaturados, probióticos, vitaminas o minerales. El calcio es uno de los minerales de mayor importancia en el organismo ya que es un componente estructural esencial en huesos y dientes y forma parte de diferentes procesos fisiológicos como la contracción muscular, la coagulación sanguínea, la trasmisión nerviosa y la permeabilidad celular. Su deficiencia se ha asociado con enfermedades como la osteoporosis y la hipertensión arterial. Por ello, las autoridades sanitarias recomiendan una ingesta diaria (IDR) de calcio de 1000 mg para adultos de una edad comprendida entre los 19 y 50 años (Institute of Medicine, 2010) o de 800 mg (Directiva 2008/100/CE), independientemente de la edad de los individuos...

Pricing Automobile Fuel Economy : A New Hedonic Approach

Publisher PDF

The 6P's of sales resource management

This paper will explore a data-driven approach called Sales Resource Management (SRM) that can provide real insight into sales management. The DSMT (Diagnosis, Strategy, Metrics and Tools) framework can be used to solve field sales management challenges. This paper focus on the 6P's strategy of SRM and illustrates how to use them to solve the CAPS (Concentration, Attrition, Performance and Spend) challenges. © 2010 IEEE.

Sales resource management training:a guide to developing effective salespeople

This paper adopts a sales resource management (SRM) framework to provide guidance on how to develop effective salespeople via sales training. SRM can be used to identify the individual training needs based on the individual-based modelling data. The individual-based modelling data can also be used to evaluate the outcome of sales training. This paper also gives some suggestions on the forms of sales training which are most likely to develop effective salespeople. © 2010 IEEE.

Exploring business models to provide a foundation for enhanced eye care services in high street optometric practice

High street optometric practices are for-profit businesses. They mostly provide sight testing and eye examination services and sell optical products, such as spectacles and contact lenses. The sight testing services are often sold at a vastly reduced price and profits are generated primarily through high margin spectacle sales, in a loss leading strategy. Published literature highlights weaknesses in this strategy as it forms a barrier to widening the scope of services provided within optometric practices. This includes specialist non-refraction based services, such as shared care. In addition this business strategy discourages investment in advanced diagnostic equipment and higher professional qualifications. The aim of this thesis was to develop a greater understanding of the traditional loss-leading strategy. The thesis also aimed to assess the plausibility of alternative business models to support the development of specialist non-refraction services within high street optometric practice. This research was based on a single independent optometric practice that specialises in advanced retinal imaging and offers a broad range of shared care services. Specialist non-refraction based services were found to be poor generators of spectacle sales likely due to patient needs and presenting concerns. Alternative business strategies to support these services included charging more realistic professional fees via cost-based pricing and monthly payment plans. These strategies enabled specialist services to be more self-sustainable with less reliance on cross-subsidy from spectacle sales. Furthermore, improving operational efficiency can increase stand-alone profits for specialist services.Practice managers may be reluctant to increase professional fees due to market pressures and confidence. However, this thesis found that patients were accepting of increased professional fees. Practice managers can implement alternative business models to enhance eye care provision in high street optometric practices. These alternative business models also improve revenues and profits generated via clinical services and improve patient loyalty.

Perpetuating sales: enabling incumbent survival of radical technological shifts

This paper examines an industry whose incumbents’ specialised complimentary assets were their operations management and distribution channels. This advantage was seriously undermined by the advent of digital distribution. Radical technological change theories dictate that if incumbents in an industry without specialised complimentary assets will be replaced by entrants. This did not happen, and extant theories of incumbent survival do not explain why the incumbents remained dominant in the industry. We propose that survival is due to the unique industry characteristic of perpetuating sales. This paper will explain what is a perpetuating sales model and why does it enable incumbent survival?

Optimal Capital Requirements in Financial Networks with Fire Sales

I explore and analyze a problem of finding the socially optimal capital requirements for financial institutions considering two distinct channels of contagion: direct exposures among the institutions, as represented by a network and fire sales externalities, which reflect the negative price impact of massive liquidation of assets.These two channels amplify shocks from individual financial institutions to the financial system as a whole and thus increase the risk of joint defaults amongst the interconnected financial institutions; this is often referred to as systemic risk. In the model, there is a trade-off between reducing systemic risk and raising the capital requirements of the financial institutions. The policymaker considers this trade-off and determines the optimal capital requirements for individual financial institutions. I provide a method for finding and analyzing the optimal capital requirements that can be applied to arbitrary network structures and arbitrary distributions of investment returns.

In particular, I first consider a network model consisting only of direct exposures and show that the optimal capital requirements can be found by solving a stochastic linear programming problem. I then extend the analysis to financial networks with default costs and show the optimal capital requirements can be found by solving a stochastic mixed integer programming problem. The computational complexity of this problem poses a challenge, and I develop an iterative algorithm that can be efficiently executed. I show that the iterative algorithm leads to solutions that are nearly optimal by comparing it with lower bounds based on a dual approach. I also show that the iterative algorithm converges to the optimal solution.

Finally, I incorporate fire sales externalities into the model. In particular, I am able to extend the analysis of systemic risk and the optimal capital requirements with a single illiquid asset to a model with multiple illiquid assets. The model with multiple illiquid assets incorporates liquidation rules used by the banks. I provide an optimization formulation whose solution provides the equilibrium payments for a given liquidation rule.

I further show that the socially optimal capital problem using the ``socially optimal liquidation" and prioritized liquidation rules can be formulated as a convex and convex mixed integer problem, respectively. Finally, I illustrate the results of the methodology on numerical examples and

discuss some implications for capital regulation policy and stress testing.

International Sales of UK Television Content: Change and Continuity in ‘the space in between’ Production and Consumption

Focusing on the UK, this article addresses key issues facing the international distribution industry arising from over-the-top digital distribution and the fragmentation of audiences and revenues. Building on the identification of these issues, it investigates the extent to which UK distribution has altered over a ten-year period, pinpointing continuities in the destination and type of sales alongside changes in the role and structure of the industry as UK-based distributors adapt to a changing UK broadcasting landscape and global production environment. At one level increasing US ownership of UK-based distributors and the arrival of OTT players like Netflix, highlight the tensions between the national orientations of UK broadcasters and the global aspirations of independent producers and distributors. At another level VOD has boosted international sales of UK drama. Although the full impact of SVOD on content and rights has yet to materialise, significant changes in the industry predate the arrival of SVOD.

Tianjin sales of land by auctions:Italian Colonialism in the early twentieth century China

s a signatory to the Boxer Protocol in 1901, Italy came into possession of the Tianjin concession, its only colonial possession in China. The Italian settlement was situated on the Hai River, and most of the land consisted of cemeteries and salt deposits. Italian administration of the settlement encountered many difficulties. Expropriation of land from the Chinese occupants was not easy, and it proved equally difficult to attract Italian investors. However despite the fact that Italian public opinion supported the abandonment of the concession, the Italian government was ultimately obliged to undertake a project for its urban development. Success in Tianjin became a national challenge for Italy, with the National Trust providing the necessary economic support. The history of the Italian settlement in Tianjin therefore sheds light on the politics of colonialism and on Italy's economic and political agendas at the turn of the twentieth century.