Search results

Good market timing skills can be an important factor contributing to hedge funds’ outperformance. In this chapter, we use a unique semiparametric panel data model capable of providing consistent short period estimates of the return correlations with three market factors for a sample of Long/Short equity hedge funds. We find evidence of significant market timing ability by fund managers around market crisis periods. Studying the behavior of individual fund managers, we show that at the 10% significance level, 17.12% of funds exhibit good linear timing skills and 21.32% of funds possess some level of good nonlinear market timing skills. Further, we find that market timing strategies of hedge funds are different in good and bad markets, and that a significant number of managers behave more conservatively when the market return is expected to be far above average and more aggressively when the market return is expected to be far below average. We find that good market timers are also likely to possess good stock selection skills.

To explore the effects of circadian rhythms on mental performance in the context of the high-stakes CPA exam and to give exam candidates and practitioners insights about ways to better align rigorous mental tasks with the timing of peak mental performance.

Empirical methodology using data on CPA exam candidate characteristics and performance.

We provide evidence consistent with the belief that circadian rhythms affect CPA exam performance. After controlling for other performance factors, we document lower CPA exam scores and pass rates for those exams begun in the early workday hours or in the afternoon, relative to those exams begun in the late morning.

As is typical with empirical methodology, our findings may be due to factors/variables other than those under consideration.

Insights regarding circadian rhythms can potentially be used to better align rigorous mental tasks with the timing of peak mental performance, thereby yielding better performance by the CPA profession.

Among the goals of the CPA profession is the protection of the public. Thus, improved performance by the CPA profession can yield benefits to society at large.

To our knowledge, ours is the first study to explore the possible effect of circadian rhythms on CPA exam performance. Given the high-stakes nature of the exam, we believe our chapter can give exam candidates and practitioners valuable insights about ways to better align rigorous mental tasks with the timing of peak mental performance. This can benefit them both for the CPA exam as well as during their careers.

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.

Plus Factors have long played an important role in inferring a price agreement from the totality of the evidence. In response to changes in the case law, economists have proposed two alternative paths for the future of price fixing analysis. This paper evaluates the suggested approaches and recommends retaining the enhanced Plus Factor methodology.

By carefully defining the Plus Factor concept, three key components of the analysis emerge: (1) information on communications associated with the alleged agreement, (2) economic considerations affecting market competition, and (3) characteristics that serve to differentiate explicit from tacit collusion.

Developments rationalizing the Plus Factor concept show promise, as the methodology is not more closely related to economic theory. On the other hand, replacement of the Plus Factor methodology with one focused on market performance seems problematic. By abandoning the Plus Factor concept, the economist loses a key institutional constraint on over-aggressive enforcement.

Until advocates can address the difficulties associated with using performance evidence to identify price fixing, the standard Plus Factor concept appears more appropriate. Thus, antitrust analysts should continue to use the Plus Factor methodology to infer agreements in price fixing investigations, as long as the economic rationalization of the specific Plus Factor is clearly presented.

The paper synthesizes a number of recent contributions to the price fixing literature and addresses key issues of interest to the enforcement community. By providing a critique of the proposed policy shift to use performance evidence to infer price fixing liability, the study serves to justify continued application of the Plus Factor methodology.

On the path to accomplishing task work, teams may face disruptive events like budget issues, equipment failures, and membership change that trigger adaptation. While recently researchers have clarified the team adaptation nomological network, our objective is to extend theory by providing a roadmap about various ways in which temporal considerations may complicate the impact of adaptation triggers on team adaptation and in turn adaptive outcomes.

We present three adaptation temporal considerations (i.e., timing, duration, and frequency) that may change the way team adaptation unfolds in response to a given adaptation trigger. We further explore and offer propositions about how the impact of adaptation timing, adaptation duration, and adaptation frequency differ by the type of adaptation trigger (i.e., task-based or team-based) experienced by the team.

By examining adaptation to task-based or team-based triggers from a temporal perspective researchers may better explain why the timing of when the team adapts across its lifecycle (adaptation timing), how long the team takes to adapt (adaptation duration), and the recurrent need to adapt (adaptation frequency) is more or less likely to lead to positive adaptive performance outcomes.

Organizations may benefit from setting up teams for success by helping members understand that there are inherent differences in the adaptation triggers they face including temporal expectations. Organizations may see value in providing initial and on-going support to teams so they are better able to adapt when needed and mitigate negative effects due to adaptation timing, adaptation duration, and adaption frequency.

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network capability on performance in international trade and has three research objectives.

The first objective of the study relates to providing new insights into the international market development activities through the application of a network perspective. The chapter reviews the international business literature to ascertain the development of thought, the research gaps, and the shortcomings. This review shows that the network perspective is a useful and popular theoretical domain that researchers can use to understand international activities, particularly of small, high technology, resource-constrained firms.

The second research objective is to gain a deeper understanding of network capability. This chapter presents a model for the impact of network capability on international performance by building on the emerging literature on the dynamic capabilities view of the firm. The model conceptualizes network capability in terms of network characteristics, network operation, and network resources. Network characteristics comprise strong and weak ties (operationalized as foreign-market entry modes), relational capability, and the level of trust between partners. Network operation focuses on network initiation, network coordination, and network learning capabilities. Network resources comprise network human-capital resources, synergy-sensitive resources (resource combinations within the network), and information sharing within the network.

The third research objective is to determine the impact of networking capability on the international performance of SMEs. The study analyzes 11 hypotheses through structural equations modeling using LISREL. The hypotheses relate to strong and weak ties, the relative strength of strong ties over weak ties, and each of the eight remaining constructs of networking capability in the study. The research conducts a cross-sectional study by using a sample of SMEs drawn from the telecommunications industry in Ireland.

The study supports the hypothesis that strong ties are more influential on international performance than weak ties. Similarly, network coordination and human-capital resources have a positive and significant association with international performance. Strong ties, weak ties, trust, network initiation, synergy-sensitive resources, relational capability, network learning, and information sharing do not have a significant association with international performance. The results of this study are strong (R2=0.63 for performance as the outcome) and provide a number of interesting insights into the relations between collaboration or networking capability and performance.

This study provides managers and policy makers with an improved understanding of the contingent effects of networks to highlight situations where networks might have limited, zero, or even negative effects on business outcomes. The study cautions against the tendency to interpret networks as universally beneficial to business development and performance outcomes.

Work experience is increasingly seen as an important complement to traditional higher education. There are a variety of forms of these educational programs, such as internships, sandwich programs, field work, and cooperative education, that are referred to generically as Work-Integrated Learning (WIL). As yet, however, there is relatively little research on the concept of work experience and considerable inconsistency in its definition and measurement. This chapter describes some of the research and writing from the industrial and organizational psychology field and its relevance to WIL. Based on the previous work, a model of work experience, specifically developed to aid our understanding of the role of work experience in WIL, is proposed. Three dimensions are suggested: level of specificity (task, job, organization, and career), measurement mode (number, time, relation to program, density, timing, and type), and version of WIL (cooperative education, sandwich, etc.). The model also includes individual factors and contextual factors as influences on work experience. Both immediate and secondary outcomes are described. Finally, the applicability of the model to several examples of WIL research are discussed and suggestions for future research are offered.

This chapter describes how to use popular software programs (Hierarchical Linear Modeling, LISREL) to analyze multiwave panel data. We review prevailing methods for panel data analyzes in strategic management research and identify their limitations. Then, we explain how multilevel and latent growth modeling provide more rigorous methodologies for studying dynamic phenomena. We present an example illustrating how firm performance can initiate temporal change in the human and social capital of members of Board of Directors, using hierarchical linear modeling. With the same data set, we replicate this test with first-order factor latent growth modeling (LGM). Next, we explain how to use second-order factor LGM with panel data on employee cognitions. Finally, we review the relative advantages and disadvantages of these new data-analytical approaches.

Early efforts in the study of groups had an inherently temporal dimension, notably work on group dynamics and the related study of phases in group problem solving. Not surprisingly, the majority of work linking time to groups has focused on team development. By contrast, work on team performance has tended to take the form Input-Process-Output, in which the passage of time is implied. There is rarely a discussion of how processes might be affected by timing. We suggest ways in which the two literatures might be brought together. We review models of group development and group performance, propose ways in which temporal issues can be integrated into performance models, and conclude by raising questions for future theory and empirical investigation.