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In class action antitrust litigation, the standards for acceptable economic analysis at class certification have continued to evolve. The most recent event in this evolution is the United States Supreme Court’s decision in Comcast Corp. v. Behrend, 133 S. Ct. 1435 (2013). The evolution of pre-Comcast law on this topic is presented, the Comcast decision is thoroughly assessed, as are the standards for developing reliable economic analysis. This article explains how economic evidence of both antitrust liability and damages ought to be developed in light of the teachings of Comcast, and how liability evidence can be used by economists to support a finding of common impact for certification purposes. In addition, the article addresses how statistical techniques such as averaging, price-dispersion analysis, and multiple regressions have and should be employed to establish common proof of damages.

Following the Supreme Court’s 1988 decision in Basic, securities class plaintiffs can invoke the “rebuttable presumption of reliance on public, material misrepresentations regarding securities traded in an efficient market” [the “fraud-on-the-market” doctrine] to prove classwide reliance. Although this requires plaintiffs to prove that the security traded in an informationally efficient market throughout the class period, Basic did not identify what constituted adequate proof of efficiency for reliance purposes.

Market efficiency cannot be presumed without proof because even large publicly traded stocks do not always trade in efficient markets, as documented in the economic literature that has grown significantly since Basic. For instance, during the recent global financial crisis, lack of liquidity limited arbitrage (the mechanism that renders markets efficient) and led to significant price distortions in many asset markets. Yet, lower courts following Basic have frequently granted class certification based on a mechanical review of some factors that are considered intuitive “proxies” of market efficiency (albeit incorrectly, according to recent studies and our own analysis). Such factors have little probative value and their review does not constitute the rigorous analysis demanded by the Supreme Court.

Instead, to invoke fraud-on-the-market, plaintiffs must first establish that the security traded in a weak-form efficient market (absent which a security cannot, as a logical matter, trade in a “semi-strong form” efficient market, the standard required for reliance purposes) using well-accepted tests. Only then do event study results, which are commonly used to demonstrate “cause and effect” (i.e., prove that the security’s price reacted quickly to news – a hallmark of a semi-strong form efficient market), have any merit. Even then, to claim classwide reliance, plaintiffs must prove such cause-and-effect relationship throughout the class period, not simply on selected disclosure dates identified in the complaint as plaintiffs often do.

These issues have policy implications because, once a class is certified, defendants frequently settle to avoid the magnified costs and risks associated with a trial, and the merits of the case (including the proper application of legal presumptions) are rarely examined at a trial.

The digital economy has significantly altered the way business is conducted and financial information is communicated. A rapidly growing number of organizations are conducting business and publishing business and financial reports online and in real-time. Real-time financial reporting is likely to necessitate continuous auditing to provide continuous assurance about the quality and credibility of the information presented. The audit process has, by necessity, evolved from a conventional manual audit to computer-based auditing and is now confronted with creating continuous electronic audits. Rapidly emerging information technology and demands for more timely communication of information to business stakeholders requires auditors to invent new ways to continuously monitor, gather, and analyze audit evidence. Continuous auditing is defined here as “a comprehensive electronic audit process that enables auditors to provide some degree of assurance on continuous information simultaneously with, or shortly after, the disclosure of the information.” This paper is based on a review of related literature, innovative continuous auditing applications, and the experiences of the authors. An approach for building continuous audit capacity is presented and audit data warehouses and data marts are described. Ever improving technology suggests that the real-time exchange of sensitive financial data will place constant pressure on auditors to update audit techniques. Most of the new techniques that will be required will involve creation of new software and audit models. Future research should focus on how continuous auditing could be constantly improved in various auditing domains including assurance, attestation, and audit services.

This paper reviews recent developments in marketing-related sustainable business practices (SBP) that macromarketing scholars have researched and debated for four decades. Such SBPs should be regarded as positive steps toward a future where business does more good than harm in society.

Using the approach of a literature review, this paper highlights the actions of entrepreneurs and firms to implement SBPs resulting from analysis of the interplay between markets, marketing and society. Such analysis is in the tradition of macromarketing scholarship.

The study identifies important developments about an important shift toward adopting SBPs among many firms, as well as among consumers − especially, in developed countries of the world.

The study suggests that taking a macromarketing view offers scholars a broad lens on current complex marketplace phenomena that will prove effective in better understanding sustainability issues.

The results of the study underline the value of macromarketing scholarship through the last four decades. By being daring enough to consider other stakeholders other than marketers and owners of firms, macromarketers have provided scholars a more holistic understanding of business’ role in society.

Today, enlightened practitioners who utilize knowledge from macromarketing scholarship can gain a competitive advantage as they navigate markets increasingly influenced by a wider set of stakeholders. Such influential stakeholders include partner firms, employees, society and local communities, NGOs, media, government, as well as the environment and future generations. Scholars can gain perspective on the phenomena they investigate with such a macromarketing lens.

Wal-Mart has had a major impact on both retailing and the U.S. economy in general through its supply chain management, efficiency, cost-containment, outsourcing, and market power. We examine Wal-Mart's strategy in retailing and its likely impact as it begins to make incursions into health care from the perspective of strategic entrepreneurship (SE) theory. Wal-Mart's resources including an expansion focus, low-cost culture, supply chain management, adoption of new technology, and market intelligence are described and related to the SE model. In addition, Wal-Mart's current health care services and target markets are outlined. This is the first paper which comprehensively outlines the competitive threat which Wal-Mart poses to traditional health care providers and insurers. The paper concludes with implications for the health care industry, future predictions, and potential future research.

In 2009, the Third Circuit decided Hydrogen Peroxide, which announced a more rigorous standard under Federal Rule of Civil Procedure 23(b)(3) for assessing whether a putative class could establish antitrust injury. Earlier this year, the Supreme Court decided Comcast v. Behrend, a case that carries potentially broad implications for both antitrust cases and Rule 23(b)(3) class actions generally. A review of the case law starting with Hydrogen Peroxide and continuing through Comcast and its progeny reveals the new rigor in antitrust class action decisions and suggests what the future may hold, including the type of arguments that may provide defendants the most likely chance of defeating class certification. After Comcast, rigor under 23(b)(3) can no longer be avoided in assessing all class actions questions, and courts should now apply Daubert fully in the class setting concerning both impact and damages. Courts should also closely evaluate plaintiffs’ proposed methodologies for proving impact to determine if they apply to each class member. Finally, courts will inevitably have to determine how rigorously to scrutinize experts’ damages methodologies and whether Comcast requires or suggests more scrutiny in assessing common evidence for measuring damages.

This paper provides a perspective on the field of nonmarket strategy. It does not attempt to survey the literature but instead focuses on the substantive content of research in the field. The paper discusses the origins of the field and the roles of nonmarket strategy. The political economy framework is used and contrasted with the current form of the resource-based theory. The paper argues that research should focus on the firm level and argues that the strategy of self-regulation can be useful in reducing the likelihood of challenges from private and public politics. The political economy perspective is illustrated using three examples: (1) public politics: Uber, (2) private politics: Rainforest Action Network and Citigroup, and (3) integrated strategy and private and public politics: The Fast Food Campaign. The paper concludes with a discussion of research issues in theory, empirics, and normative assessment.

Transformative innovation is a particular manifestation of generativity that emerges when organizations explore the intersection of business and society, embracing social, environmental, ethical, or similar initiatives as an integral part of their strategic missions. The chapter reports findings from the World Inquiry, a search for stories of transformative innovation. The stories illustrate how transformative innovation may (1) extend mutually beneficial outcomes of activity to business and society, (2) increase the scale of enacted human strengths, and (3) invoke a deep shift in values, assumptions, and behaviors that guide an organization. The exploration of transformative inquiry demonstrates how generativity emerges when business strategies integrate the interests of multiple stakeholders.

Special education in the USA is, in most respects, a 20th century phenomenon and is now governed primarily by federal legislation first enacted in 1975. The federal law in its most recent reauthorization (2004) continues to require a free appropriate public education (FAPE) for all students with disabilities, a full continuum of alternative placements (CAP) ranging from residential or hospital care to inclusion in general education, an individual education plan or program (IEP) for each student identified as needing special education, and placement in the least restrictive environment (LRE) that is thought best for implementing the IEP. Parents must be involved in the special education process. Approximately 14 percent of public school students were identified for special education in 2004–2005, but the number and percentage of students identified in most high-incidence categories as needing special education have declined in recent years (the total for all categories was about 8.5 percent of public school students in 2010). A variety of evidence-based interventions can be used to address the wide range of instructional and behavioral needs of students with disabilities and their families, including transition to further education or work, family services, and teacher education. Special education in the USA may find new sources of support and thrive or may become less common or be abandoned entirely due to criticism and withdrawal of support for social welfare programs of government.