Analysis of the Distribution Properties of Cost Variances and their Effects on the Cost Variance Investigation Decision

Business Administratio

The Effect of Product Demand Decline on Investments in Innovations: Evidence from the U.S. Defense Industry

The end of the Cold War led to a substantial decline in defense product demand. This study investigates the effects of product demand decline on defense firms’ investments in R&D for innovations. Our evidence indicates significant lower levels of R&D intensity for the low demand period (1993 to 1998) than for the high demand period (1984 to 1989). We also find significant declines in the defense firms\u27 return on assets over the period, which is mainly attributable to a significant decrease in the firms\u27 efficiency of using assets to produce sales. The defense firms, despite decline in defense product sales, generally maintained their total sales by partially shifting their capacity to commercial markets, which might be at the sacrifice of profitability, operating efficiency, and R&D investments for innovations

Are Defense Contractors Rewarded for Risk, Innovation, and Influence?

This study investigates the factors that lead to a diversity of profitability among defense contractors, a topic largely ignored by prior studies. We use regression analysis to test whether the profitability of defense contractors is significantly associated with factors that are hypothesized to cause the diversity of profitability among defense contractors. We find that defense contractors assuming higher risks, being more innovation-oriented, and being more influential could earn higher profitability from their defense business than other defense contractors, but defense business in general seems to be less profitable than commercial business. Our evidence suggests that the profitability of defense contractors is reasonable with respect to rewarding risk and innovation. This study provides new light on the reasonableness of defense contractors’ profitability and also provides useful evidence to evaluate the effectiveness of the Department of Defense in implementing its stated profit policy

The Effect of Monitoring by Outside Blockholders on Earnings Management

This study examines two competing views concerning the effect of outside blockholders on earnings management. First, outside blockholders, with higher motivation and ability to monitor managers’ actions than small shareholders, might reduce earnings management through their closer monitoring. Second, outside blockholders require a higher return from their investment and pose a bigger threat of intervention to the firm’s management. They may increase managers’ incentives to conduct income-increasing earnings management. This study tests the two competing views by examining the association between outside blockholder ownership and earnings management for NYSE firms. Our results indicate that outside blockholder ownership is positively associated with discretionary accruals for firms that face declining premanaged earnings. Thus, the evidence, consistent with the second view, suggests that outside blockholders are not effective monitors of income-increasing earnings management that is generally within the bounds of GAAP

Thigh-length compression stockings and DVT after stroke

Controversy exists as to whether neoadjuvant chemotherapy improves survival in patients with invasive bladder cancer, despite randomised controlled trials of more than 3000 patients. We undertook a systematic review and meta-analysis to assess the effect of such treatment on survival in patients with this disease