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Full-Text Articles in Business
How Random Incidents Affect Travel-Time Distributions, Melike Baykal-Gürsoy, Andrew Reed Benton, Pedro Cesar Lopes Gerum, Marcelo Figueroa Candia
How Random Incidents Affect Travel-Time Distributions, Melike Baykal-Gürsoy, Andrew Reed Benton, Pedro Cesar Lopes Gerum, Marcelo Figueroa Candia
Supply Chain Management
We present a novel analytical model to approximate the travel-time distribution of vehicles traversing a freeway corridor that experiences random quality of service degradations due to non-recurrent incidents. The proposed model derives the generating function of travel times in closed-form using clearance time, incident frequency and severity, and other ordinary traffic characteristics. We validate the model using data from a freeway corridor where weather events and traffic accidents serve as the principal causes of service degradation. The resulting model is equivalent in performance to widely used methodologies while uniquely providing a clear connection on how incidents affect travel time distribution. …
Payout Policy, Managerial Perquisites, And Sticky Sg&A Costs, Deborah Smith
Payout Policy, Managerial Perquisites, And Sticky Sg&A Costs, Deborah Smith
Business Faculty Publications
Background
Sticky SG&A costs provide a novel opportunity to investigate whether payout policy serves as a remedy for management overspending on perquisites that are embedded in SG&A expenses. Payout policy, especially under strong governance, may reduce overspending. Another possibility is that management may use sales declines opportunistically to repurchase shares when sales are expected to rebound.
Methods
Regression analysis is used to examine the effect of payout mechanisms (dividends, share repurchases, and combinations thereof) and shareholder rights (EIndex) to determine whether managerial overspending on perquisites is reduced through payout policy.
Results
The results indicate that dividends and share repurchases are …
Does Industry Timing Ability Of Hedge Funds Predict Their Future Performance, Survival, And Fund Flows?, Turan G. Bali, Stephen J. Brown, Mustafa O. Caglayan, Umut Celiker
Does Industry Timing Ability Of Hedge Funds Predict Their Future Performance, Survival, And Fund Flows?, Turan G. Bali, Stephen J. Brown, Mustafa O. Caglayan, Umut Celiker
Business Faculty Publications
This paper investigates hedge funds’ ability to time industry-specific returns and shows that funds’ timing ability in the manufacturing industry improves their future performance, probability of survival, and ability to attract more capital. The results indicate that the best industry-timing hedge funds in the manufacturing sector have the highest return exposure to earnings surprises. This, together with persistently sticky earnings surprises, transparent information environment in regards to earnings releases, and large post-earnings-announcement drift in the manufacturing industry, explain to a great extent why best-timing hedge funds can generate significantly larger future returns compared to worst-timing hedge funds.