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The use of choice-based, matched, and other stratified sample designs is common in auditing research. However, it is not widely appreciated that the data analysis for these studies has to take into account the non-random nature of sample selection in these designs. A choice-based, matched or otherwise stratified sample is a nonrandom sample that must be analyzed using conditional analysis techniques. We review five research streams in the auditing area. These streams include work on determinants of audit litigation, audit fees, auditor reporting in financially distressed firms, audit quality and auditor switches. Cram, Karan, and Stuart (CKS) (2009) demonstrated the accuracy of conditional analysis, compared to unconditional analysis, of nonrandom samples through the use of simulations, replications, and mathematical proofs. Papers since published have continued to rely upon questionable research, however, and it is hard for researchers to identify what is the reliability of a given work. We complement and extend CKS (2009) by identifying audit papers in selected research streams whose results will likely differ if the data gathered are analyzed using conditional analysis techniques. Thus research can be advanced either by replication and reanalysis, or by refocus of new research upon issues that should no longer be viewed as settled.

The purpose of this paper is to propose a way to introduce regression analysis into courses with minimal start‐up time. Doing so makes it less likely that introducing both the software and the estimation technique will create discontinuity in the flow of the material being covered.

This paper discusses an Excel workbook that reduces the amount of time students must use to become adept at estimating model parameters.

The workbook provides a set of macros that guides students through the implementation of ordinary least squares (OLS) estimation and provides them with information that is not part of standard Excel output. It also conducts high‐low analysis.

Using this program can reduce the difficulties encountered in having students conduct the valuable exercise of model estimation.

Global value changes continued to expand until the late 2000s. On the other hand, regional value chains have formed around major regional hubs due to the expansion of domestic demand in emerging economies, such as China, and strengthened trade protectionism since the global financial crisis. Such changes lead to the reorganisation of value chains, focusing on domestic markets (reshoring) or neighbouring countries (nearshoring). In particular, the importance of supply chain risk management has been highlighted following disruptions to the supply network due to the COVID-19 outbreak in December 2019. In this regard, major countries such as the USA and the EU are rapidly shifting to regional value chains for stable and sustainable production, rather than primarily aiming for production efficiency targeted at reducing costs. Industries in particular are more exposed to such supply chain risks under the existing structure and it now has become extremely important for businesses to take reaction to such risks. This is especially important for major industries in a country such as automobile or semiconductor manufacturing industries in South Korea. The aim of this study, therefore, is to establish the basis for the simultaneous growth of ports and linked industries by examining the existing structure of the global value chain for the automotive industry, which has a strong presence in South Korea’s domestic economy. In this regard, this research carries out a supply chain analysis focusing on the imports and exports of automotive parts. It also analyses the current structural risks and suggests risk management measures to secure a stable supply chain.

The purpose of this paper is to examine whether abnormal returns to a fundamental signal (FS) strategy disappear after the publication of Abarbanell and Bushee (1998).

Using data on NYSE/AMEX firms from 1974 to 2012, this research estimates annual Fama and MacBeth (1973) cross-sectional regression of risk-adjusted buy-and-hold returns on the FSs after controlling for contemporaneous earnings changes and a proxy for market risk.

This paper finds that predictable hedge returns to the FSs substantially decrease and become statistically insignificant after the Abarbanell and Bushee’s publication date. This research also finds that the FSs have not lost their importance to equity valuation process; value relevance of the FSs has not diminished, and the FSs have retained their predictive ability over time. The evidence on changing information and trading environments appears to contribute to the disappearing abnormal returns to a FS strategy.

This paper adds to the growing body of literature on the persistence of pricing anomalies.

This paper aims to investigate the water absorption behaviors and mechanical properties, according to water absorption and temperature, of components fabricated by fused deposition modeling (FDM) and injection molding. The mechanical properties of FDM and injection molded parts were studied under several environmental conditions.

FDM components can be used as load-carrying elements under a range of moisture and temperature conditions. FDM parts show anisotropic mechanical properties according to build orientation. Components were fabricated from acrylonitrile-butadiene-styrene in three different orientations. The mechanical properties of parts fabricated by FDM were compared to injection molded components made from the same material. Water absorption tests were conducted in distilled water between 20 and 60°C to identify the maximum water absorption rate. Both moisture and temperature were considered as environmental variables in the tensile tests, which were conducted under various conditions to measure the effects on mechanical properties.

The water absorption behavior of FDM components obeyed Fickian diffusion theory, irrespective of the temperature. High temperatures accelerated the diffusion rate, although the maximum water absorption rate was not affected. The tensile strength of FDM parts under dry, room temperature conditions, was approximately 26-56 per cent that of injection molded parts, depending on build orientation. Increased temperature and water absorption had a more significant effect on FDM parts than injection molded components. The tensile strength was decreased by 67-71 per cent in hot, wet environments compared with dry, room temperature conditions.

The water absorption behavior of FDM components was investigated. The quantitative effects of temperature and moisture on tensile strength, modulus and strain were also measured. These results will contribute to the design of FDM parts for use under various environmental conditions.

The purpose of this paper is to investigate whether sell-side equity analysts use labor cost information when forming expectations of future earnings. The availability of disaggregated earnings components will benefit financial statement users to the extent that the additional information released by a firm is useful to infer differential persistence of disaggregated earnings components.

This paper employs ordinary least squares, logit, and two-stage Heckman (1979) regressions which test whether analysts incorporate labor cost information into their earnings forecasts after controlling for a managerial self-selection to disclose labor costs, and further test whether a firm’s decision to voluntarily disclose labor costs improves analyst forecast accuracy.

This research finds that analysts incorporate labor cost information into their earnings forecasts after controlling for other earnings components. More importantly, this research shows that voluntary disclosure of labor cost information is positively associated with analyst forecast accuracy. Additional tests show that the benefit of voluntary labor cost information is more pronounced for firms with high information uncertainty and for analysts with less firm-specific experience and analysts affiliated with small brokerage houses.

This paper contributes to the literatures on the effect of labor cost on investors’ behavior and on analyst-specific factors in explaining analyst ability to predict future earnings.

It is documented that companies and government agencies in the USA invest more in the fourth fiscal quarter without having higher investment opportunities. While previous studies focus on the agency conflicts and information asymmetry within organizations, this study is motivated by Scharfstein and Stein's (2000) two-tiered agency model and aims to examine how firms' external business environment affects the “fourth quarter effect.”

The authors implement this study in a sample of 41 countries and observe similar seasonality in firm investment as documented in the US market.

More importantly, using country characteristics, this study finds that firms from countries with better investor rights and protection, and more developed financial markets show less severe over-investment in the fourth fiscal quarter.

This paper contributes to the literature of law and finance, and the internal capital market, by investigating the quarterly investment patterns of firms from 41 countries. The authors find that similar to the results in earlier studies on the US market, firms in the global market increase their capital expenditure in the fourth fiscal quarter, indicating that the internal agency conflicts between the headquarters and divisional managers are widespread across the world. The authors also find that firms that operate in countries with higher investor rights and protection, and more developed financial markets, tend to show less severe “fourth quarter effect”.

This paper aims to develop hedging strategies using both futures and forward contracts and issuing risky debt when financially constrained firms are forced to operate in long horizon.

The authors present a model for developing hedging strategies using both futures and forward contracts and issuing risky debt. A theoretical model employing stochastic differential equations for forward hedging is illustrated with a numerical example over parameter values consistent with the literature.

A financially constrained firm with limited cash balance must hedge its liquidity with both future and forward contracts and issue risky debt to support its long-term operations. The firm can issue a minimal amount of risky debt by adding forward contracts into hedging and can increase its value higher than that when hedging with only futures contracts. We show numerically that hedging with both futures and forward contracts allows the firm to issue minimal risky debt in increasing its firm value.

When Metallgesellschaft nearly collapsed in 1993, it offered long-term forward contracts to its customers and attempted to hedge its risk by rolling over series of short-term futures contract. It created the situation of inherent mismatch in maturity structure. A financially constrained firm operating in a long horizon appears to commit its liquidity as long-term forward contracts, which cannot be fully hedged with series of futures contacts. The firm should hedge its liquidity with both futures and forward contracts and avoid liquidation with deadweight costs in its long-term operation.

This is the first study examining hedging strategies with both futures and forward contracts.

The purpose of this paper is to provide an input-output life cycle assessment model to estimate the carbon footprint of US manufacturing sectors. To achieve this, the paper sets out the following objectives: develop a time series carbon footprint estimation model for US manufacturing sectors; analyze the annual and cumulative carbon footprint; analyze and identify the most carbon emitting and carbon intensive manufacturing industries in the last four decades; and analyze the supply chains of US manufacturing industries to help identify the most critical carbon emitting industries.

Initially, the economic input-output tables of US economy and carbon footprint multipliers were collected from EORA database (Lenzen et al., 2012). Then, economic input-output life cycle assessment models were developed to quantify the carbon footprint extents of the US manufacturing sectors between 1970 and 2011. The carbon footprint is assessed in metric tons of CO₂-equivalent, whereas the economic outputs were measured in million dollar economic activity.

The salient finding of this paper is that the carbon footprint stock has been increasing substantially over the last four decades. The steep growth in economic output unfortunately over-shadowed the potential benefits that were obtained from lower CO₂ intensities. Analysis of specific industry results indicate that the top five manufacturing sectors based on total carbon footprint share are “petroleum refineries,” “Animal (except poultry) slaughtering, rendering, and processing,” “Other basic organic chemical manufacturing,” “Motor vehicle parts manufacturing,” and “Iron and steel mills and ferroalloy manufacturing.”

This paper proposes a state-of-art time series input-output-based carbon footprint assessment for the US manufacturing industries considering direct (onsite) and indirect (supply chain) impacts. In addition, the paper provides carbon intensity and carbon stock variables that are assessed over time for each of the US manufacturing industries from a supply chain footprint perspective.