Carl A. Scheraga

Data Envelopment Analysis of Morningstar's Small-Cap Mutual Funds

Only 11 of the 58 sample small-cap mutual funds are DEA efficient, and, of these, value funds represent by far the largest percentage. Twenty-five funds are least inefficient and 22 are inefficient. The mutual funds that are managerially inefficient tend to have the largest values for the seven investment style variables: Morningstar Risk, beta, P/E ratio, P/B ratio, P/CF ratio, three-year earnings growth rate (%), and median market cap (

The Influence of Advertising on Alcohol Consumption: A Literature Review and An Econometric Analysis of Four European Nations

mil). These relationships are consistent with the growth style of portfolio management. Thus, as defined by the DEA analysis, these findings indicate that the growth style of portfolio management is more prone to being managed inefficiently. The next two statistical findings indicate that mutual funds that are managerially inefficient tend to have the smallest values for percentages of bonds other securities and foreign securities. These findings also indicate a more aggressive style of portfolio asset allocation that is more prone to being managed inefficiently. And, the last statistical finding indicates that mutual funds that are managerially inefficient tend to have smallest total assets. This finding indicates that these smaller sized funds are more prone to being managed inefficiently. And, the efficient funds being the largest ones (

Preparation of Logistics Managers for the Contemporary Environment of the European Union

3.3 billion mean, indicate they have not reached the size of reduced management efficiency. This latter finding is consistent with those by Latzko (1999). Mutual funds benefit from scale economies over the full range of fund asset sizes, but the largest declines in expenses occur prior to about

Lead users and technology transfer to less-developed countries:: analysis, with an application to Haiti

3.5 billion in total assets. Therefore, it is likely that the largest funds are prone to less management efficiency within the next size category, mid-cap funds. The overall evidence indicates that small-cap mutual funds with largest total assets are the most managerially efficient, as defined by DEA. And, this efficiency comes with conservative portfolio investment style attributes consistent with a strong value style of investing.

Assessing the relative efficiency of aircraft maintenance technologies: an application of data envelopment analysis

Econometric and laboratory research in the US, Canada and the UK have not revealed advertising to have a significant effect on alcohol consumption. The same is true of survey research, which confirms the powerful role of social factors such as the attitudes and behaviour of parents and peers. We present an econometric analysis of the alcoholic beverage markets of France, Germany, the Netherlands, Sweden (where alcohol advertising has been prohibited since 1979), as well as a new analysis of the UK market. The results provide further support for the view that advertising does not have a substantial effect on alcohol sales. The data also show that social forces other than prices and income were bringing about a strong reduction in demand for alcoholic beverages during the 1970s and 1980s, and that advertising did nothing to ward off this trend.

Morningstar's Classification of Large-Cap Mutual Funds

This study reports and analyzes a questionnaire administered to US and European logistics managers soliciting their perceptions regarding changes in background and skill preferences for logistics managers operating in the new European Union environment. The combined sample of respondents appeared to indicate the importance of being a manager first and a functional/technical specialist second. While no statistically significant differences between the two subgroups were found with regard to background preferences, there were eight statistically significant differences between the two subgroups with regard to preferred skill requirements in the contemporary environment. Possible explanations for this phenomenon are suggested. Finally, implications of the survey findings for employers, practitioners, educators, and students are discussed.

A comparison of the balance sheet strategies of foreign-owned and domestic-owned U.S. banks

Abstract This paper discusses the role that cross-cultural factors play in the process of technology transfer. The specific focus is an investigation of implementation mechanisms that facilitate technology transfer in an environment in which cultural factors exert a significant influence. The frameworks of Niehoff and Anderson and of Wicklein are discussed in describing such issues as cultural distance (as described by Hofstede), negotiation and people-to-people relationships, the learning ability of a society, abstractive versus associative cultures, and appropriate technology choices. It is argued that these traditional frameworks are not sufficient to overcome the inherent problems of cultural distance and “sticky” information regarding the associated costs of transferring information to a specified site in a form that will be usable by a given information seeker. The Lead User methodology developed by von Hippel is discussed as a new approach for facilitating technology transfer to less-developed countries. The discussion of the Lead User methodology is linked to analysis of a particular technology transfer project undertaken by a team of faculty researchers from Fairfield University in the rural community of Fondwa located in Haiti. The teams implementation of a solar cooker project is discussed in detail, particularly as it reflects an attempt to utilize the Lead User framework.

Culture, Cognition and Conflict: How Neuroscience Can Help to Explain Cultural Differences in Negotiation and Conflict Management

This study focuses on discretionary maintenance strategies and their relationship to aircraft reliability, as measured by the percentage of scheduled flights delayed because of mechanical problems. The methodology of Data Envelopment Analysis is employed to identify the various strategies employed by the major airlines over the time period 1990-1994. Additionally, this methodology allows for a normative assessment as to which strategies are relatively efficient. Furthermore, the specific strategies utilized by efficient and inefficient airlines can be compared at a micro-level and thus quantifiable recommendations for the latter group can be suggested.

Operational efficiency versus financial mobility in the global airline industry: a data envelopment and Tobit analysis

The objective is to determine whether Morningstars classification of the investment styles of large-cap funds as growth, blend, and value is consistent with the groups and styles identified by cluster analysis. The analysis identified three homogeneous style groups: growth and two versions of value. The two value clusters were differentiated by degree of diversification of asset allocation and by degree of concentration of security and sector holdings. The mix of Morningstar styles in each identified cluster reveals problems in their method of classifying fund style, especially in the case of their blend and value funds.

DEA Efficiency Profiles of U.S. Banks Operating Internationally

This study analyzed a 1988 matched sample data of 176 foreign and domestic-owned U.S. banks that have domestic only offices. This was done to test whether the balance sheet strategies of foreign-owned U.S. banks in domestic markets differ from those of domestic owned banks. The primary impetus for this study is the increasingly significant foreign banking presence in the U.S. and the need to understand better the implications of this trend.Cluster analysis was applied to balance sheet ratio variables obtained from federal call reports. Nine clusters were identified objectively, of which three were determined to merit further analysis. These three clusters reflect different balance sheet behaviors towards what may be described as “retail/wholesale” banking. However, these cluster groups do not reflect differences in balance sheet behaviors resulting from foreign versus domestic ownership of U.S. banks. Individually, the strategy groups include relatively balanced proportions of both foreign and domestic-owned banks. Overall, the three strategy groups include equal proportions of foreign and domestic-owned banks. Thus, none of the strategy groups reflect a distinctive balance sheet strategy based on a preponderance of type of bank ownership. The hypothesis that foreign-owned U.S. banks in domestic markets exhibit different balance sheet strategies than domestic-owned banks is therefore rejected.Further, the study confirms the usefulness of studies of bank balance sheet strategies, especially when cluster analysis is used to identify and characterize bank strategy groups and facilitate measurement of their profitability performance. Finally, the findings do not confirm the microeconomic assumption of firm and manager objective function homogeneity as a means for explaining bank behavior.