[Managers would likely have different ways, termed games, of coping with their superior's budgetary leadership style and the interpersonal stress associated with budgeting. Additionally, these factors are likely to be associated with different budgetary attitudes. We examined the patterns of gameplay as well as leadership styles and role stress to determine whether these factors were correlated with the subordinates' attitude toward achieving their budget. We found that the game patterns of DEVIOUS, ECONOMIC, INCREMENTAL, and TIME were correlated with subordinates' attitude toward achieving their budgets, particularly when considered in the context of their superior's leadership style and the amount of role stress present. In particular, we found that a manager with a positive budgetary attitude used the ECONOMIC, INCREMENTAL, or TIME game pattern, avoided the DEVIOUS pattern, had low role stress, and had a superior with a punitive leadership style.]

The relationship between co-integration and error correction models, first suggested in Granger (1981), is here extended and used to develop estimation procedures, tests, and empirical examples. If each element of a vector of time series x first achieves stationarity after differencing, but a linear combination a'x is already stationary, the time series x are said to be co-integrated with co-integrating vector a. There may be several such co-integrating vectors so that a becomes a matrix. Interpreting a'x,= 0 as a long run equilibrium, co-integration implies that deviations from equilibrium are stationary, with finite variance, even though the series themselves are nonstationary and have infinite variance. The paper presents a representation theorem based on Granger (1983), which connects the moving average, autoregressive, and error correction representations for co-integrated systems. A vector autoregression in differenced variables is incompatible with these representations. Estimation of these models is discussed and a simple but asymptotically efficient two-step estimator is proposed. Testing for co-integration combines the problems of unit root tests and tests with parameters unidentified under the null. Seven statistics are formulated and analyzed. The critical values of these statistics are calculated based on a Monte Carlo simulation. Using these critical values, the power properties of the tests are examined and one test procedure is recommended for application. In a series of examples it is found that consumption and income are co-integrated, wages and prices are not, short and long interest rates are, and nominal GNP is co-integrated with M2, but not M1, M3, or aggregate liquid assets.

The divesting of corporate assets has become quite popular. Previous studies of divestitures have found conflicting impacts upon shareholders' wealth of the buying firm. This study measures the impacts of product‐line relatedness between the acquiring firm and the divested unit and financial weakness of the selling firm upon the abnormal returns to the acquiring firm. Although the study finds that the impact of financial strength of the seller is ambiguous, the purchase of related assets produces more wealth than does the purchase of unrelated divested units. Further, firms that purchase related divested units have larger proportions of insider ownership.

This text delineates the basic rules of the game in each of the three major international financial markets - foreign exchange, eurocurrencies, and international bonds. Content is presented as the prerequisite material for later courses in multinational corporate finance, open-economy macroeconomics, and international banking.