All independent variables are
decile rank variables ranging from 0 to 1, with 0 being the lowest rank.
The higher the final
decile rank, the more likely this firm-year is misclassified.
The broadest awards are given to the fund families with the lowest average
decile rank of the three-years' consistent return measure of the eligible funds per asset class and group.
2003a, b), mean values of the EOLEI by decile, and a
decile rank variable that takes values from 1 to 10 corresponding the decile grouping of HRRs by the value of the EOLEI.
We then compare the return on the lowest
decile rank portfolio (labeled "High BEME" and which includes the firms with the highest BEME ratio) to the highest
decile rank portfolio (labeled "Low BEME").
Portfolios are formed as follows: For each year from 1973 to 1997, we calculate the scaled
decile rank for accruals and SG for each firm.
Public relations specialists' fourth earnings
decile rank in New Orleans matched their national rank, but fashion designers' sixth earnings
decile rank is several deciles lower than their second earnings
decile rank nationally.
For example, Panel A of Table I indicates that if the
decile rank of the relative rate increases by 1, on average, issuance decreases by $361 million in a month.
As in Abarbanell and Bushee (1998), we replace the value of each variable by its scaled
decile rank, varying from 0 to 9.
To measure the economic significance of the results, we replicate the cross-sectional Fama-MacBeth (1973) regressions after transforming all of the independent variables into
decile ranks and then standardize these ranks to take values between zero and one.
The occupations' local
decile ranks were compared to their national
decile ranks.
Similar to the baseline regression, all the independent variables were transformed into
decile ranks scaled by nine.
