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This paper tests the theory that local option sales taxes (LOST) work to the disadvantage of poorer localities, particularly rural areas, where many residents commute to shop and work. We also hypothesize that LOST systems hurt struggling communities more than they help prospering ones. The LOST system is examined using multiple years of data from North Carolina, a state whose tax structure favors such an analysis. The results indicate that LOST systems exacerbate inequality between local communities by actively moving revenue from poorer communities to more wealthy ones. We find evidence that LOST systems cost poorer counties a greater percentage of their total budgets than is gained by the wealthy counties that attract retail activity.

In logistics strategy, it is now being recognized that revenue generation is as important as cost reduction. Although it has long been known that logistics customer service has a positive effect on customer satisfaction, little research has been conducted to determine precisely the degree to which logistics customer service affects sales and generates the revenues for the firm. The purpose of this paper is to identify, categorize, and illustrate methods for estimating revenues associated with various levels of logistics customer service offerings.

The purpose is achieved through simulation, statistics, and case studies.

When the revenue effects of logistics customer service can be approximated, logistics strategies can be formulated that optimize profits and/or return on investment. Otherwise, logistics strategy is in danger of being sub‐optimized when logistics customer service levels are treated as planning constraints and costs minimized to meet them.

The paper sets forth a number of methods by which this sales‐service relationship can be generated and the effect of service on sales quantified. This provides an important basis for optimizing logistics strategy.

The purpose of this paper is to investigate whether deferred revenue changes can serve as a leading indicator for firms listed on China’s stock markets, and whether China’s market participants can appropriately incorporate future performance implications of deferred revenue changes.

Empirical/archival/regression analysis.

The authors find that deferred revenue changes are positively associated with the next two years’ sales growth, gross profit margin, profit margin, and return on assets, suggesting that deferred revenue changes can serve as a valid leading indicator for future financial performance. The authors also find that Chinese investors tend to underweight future performance implications of deferred revenue changes.

To the authors’ knowledge, this study is among the first research to examine deferred revenue changes as a leading fundamental indicator and market underreaction to reported accounting information for firms listed on China’s stock markets.

Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The particular focus is on reviewing current practice in distribution costing and on attempting to push the frontiers back a little by suggesting some new approaches to overcome previously defined shortcomings.

The loss in sales tax revenue from nontaxable remote sales erodes a state’s ability to fund essential programs. Taxable goods sold via the Internet in 1999 created a loss to state and local governments of $525 million in sales tax revenue. This study examines the effects of five variables on a state’s willingness to participate voluntarily in the Streamlined Sales Tax Project (SSTP). Three hypotheses are supported: 1) the higher the grade on the Business Vitality score, the more likely elected officials will be influenced by the private sector and state economic development personnel not to participate in the SSTP; 2) the higher the index of innovation capacity, the more likely elected officials will be influenced by businesses not to participate; and 3) the greater the reliance on sales tax, the more likely a state will participate.

The purpose of the study is to ascertain whether sport organizations which outsource ticket sales force management outperform sports organizations which manage their ticket sales force internally, relative to ticket revenue and attendance.

Thirteen years of ticket revenue and football attendance data were collected for National Collegiate Athletic Association (NCAA) Football bowl subdivision (FBS) Division I Athletics Departments (n = 126), as well as data on whether the organization employed an external (outsourced), internal or no ticket sales force. The number of salespeople employed was also captured. Within-subjects, fixed effects regression models, which included several control variables such as number of home contests, prior season attendance, team success and population, were run to assess the relationship between sales force type and both ticket revenue and attendance, for one year, two years and three years after sales force establishment.

All models were significant. While both internally managed ticket sales forces and those managed by outsourced firms saw significant increases in ticket revenue (compared to not employing a sales force), internally managed departments outperformed third parties. In addition, departments utilizing outsourcing companies reported lower attendance for the first two years after outsourcing, but attendance differences were negligible by the third year of outsourcing.

The results of the study provide data to help sport managers determine whether outsourcing sales functions within an organization will lead to greater ticket revenue and/or attendance.

While several sport management studies have examined the decision-making process of outsourcing organizational functions, no prior studies have examined the financial implications of doing so.

Rainy day stabilization funds (RDSFs) and local option sales taxes (LOSTs) are two strategies local governments deploy to combat fiscal stress. While the literature on both is robust, it has thus far failed to consider empirically that the two may be connected. One way the marginal LOST dollar could be spent is by saving it for future use. We test the connection with a sample of 414 counties and correct for selection bias with the Heckman correction technique. We find that each $10 increase in LOST revenue per capita is associated with a $0.10 increase in undesignated general fund balance. Though small, the positive effect size supports the theory that LOSTs contribute to a greater propensity to save.

The study develops a mathematical model of the firm to derive theoretical foundations for the balanced scorecard concept (BSC). The model is based on several parts which are integrated into a company model. This model includes the demand function, the production function and the objective function of the firm which are depicted by traditional microeconomic concepts. Demand is presented as a function of price and customer relationship management (CRM) costs. Production is assumed to depend on labor, capital, and development and learning (D&L) costs. Simple dynamics is included both in the demand and production function. The strategy of the firm is depicted by the objective function based on profit and net sales. The output variables of the model are classified as the four perspectives of BSC. The effects of the objectives (strategies) on the importance (shadow prices) of the constraints are analysed. It is shown that a change in the objectives may alter the order of their importance. Thus, a change in the strategy should be accompanied with a change in the focus of BSC. Furthermore, non‐financial and financial performance ratios may change in opposite directions, when the strategy is shifted towards revenue maximization. Thus, inconsistencies with the interpretation of cause and effects may emerge, when the strategy is shifted. Numerical examples are presented to demonstrate the results.

Local governments are expanding their revenue portfolios and becoming less dependent on property taxes. It should not be assumed, however, that this diversification is increasing the stability of local governmentsʼ own source revenue, as previous research suggests. It is thus important for local government officials to know how this process will affect the stability of their own source revenue, as they are almost certainly diversifying away from a stable tax, the property tax (Groves and Kahn, 1952; McCubbins and Moule, 2010), and moving toward a more volatile tax, such as the sales tax. Using county-level data in thirty-five states, I examine the effect of local option sales taxes (LOSTs) on the volatility of own source revenue and find that greater use of LOSTs increases revenue volatility.