professional achievements and gender differences among academic economists i introduction while the academic labor market for economists attracts a good deal of attention among its participants work on the differences in remuneration for economic research and other professional characteristics between men and women in academic institutions has been limited this paper tests for gender differences using data on grants and grant applications from the national science foundation ault rutman and stevenson 1979 addressing issues of academic placement found that the highest rated institution at which an academic economist will be employed is the institution of first employment willis and pieper 1991 found that women who received doctorates in economics in the 1970s had a somewhat higher rate of placement at doctoral degree granting institutions than men but that there was no difference in the rank of the institutions for these placements lower tier institutions must offer promotions to attract candidates moore et al 1983 reported that the rank of the department at which one earned the doctorate is critically important in determining initial academic placement hamermesh johnson and weisbrod 1982 found that for those at prestigious departments increases in citations lead to salary increases but that the department s rank was not inversely related to salary in his review of work by sociologists youn 1988 reported that the prestige of an academic institution was positively related to the research productivity of its scientists there are two competing hypotheses that might explain this result better departments select better scientists achievement model or better departments foster greater productivity ascription model empirical efforts to distinguish between these hypotheses have been mixed the research on salary differentials in academia has generally found that there are significant gender differences that widen during the careers of men and women 1 barbezat 1991 the most recent evidence suggests that salary differentials in the academic community may have diminished somewhat since the 1960s but still remain weiler 1990 separated the influence of the department s rank on salary by treating it in a separate equation and found that standard formulations underestimate the degree of salary discrimination although important salary is not the only measure of achievement in academe promotion to a higher rank employment in key departments and the production of well placed articles all help determine an economist s influence in the profession but despite the dramatic increase in the percentage of women receiving the ph d during the past two decades the number of senior women at graduate institutions is still very low 2 to what extent does gender bias exist in economics departments as measured not only by salary but also by other achievements such as the likelihood of achieving a senior position or being employed by a top department is there a difference in the experiences of the younger cohorts compared to their more senior counterparts this paper attempts to answer these important questions by 1 taking into account the endogeneity of the variables that are usually treated as exogenous in models of salary determination and thereby broadening the characteristics that traditionally reflect discrimination and 2 using a new detailed data base developed from the national science foundation the results of this more complete model in which salary as well as other measures of professional achievement are explained show significant differences between men and women at the more senior level at the assistant professor level although the signs of the gender coefficients are consistent with a discrimination hypothesis the results are not statistically significant ii the model single equations using the techniques developed by oaxaca 1973 and blinder 1973 have long been used to estimate gender salary differentials in academia with productivity measures such as books and articles published administrative experience etc

empirical evidence on dividends as a signal of firm value the role of dividends in firm valuation continues to be a theoretical puzzle as well as an empirical obsession with economists the pioneering work by modigliani and miller mm 32 29 is the archetype of the theoretical dilemma whereas the authors proved convincingly the irrelevance of dividend policy to firm value within a perfect capital market they tempered their irrelevance proposition with what is usually referred to as the information content of dividends icd hypothesis in a more scientific sense this hypothesis should be labeled as a conjecture since it is essentially an ad hoc observation that dividends may convey information to the capital market concerning a firm s future earnings potential even though the icd hypothesis was not derived from a well specified economic model it has nevertheless been subjected to a plethora of empirical studies in general these studies have focused upon the precise influence of dividend changes upon a firm s common stock price overall the results can be described as being supportive of the notion that stock price movements are positively correlated with cash dividend changes this correlation of course is consistent with the icd hypothesis

executive compensation strategic competition and relative performance evaluation theory and evidence we examine compensation contracts for managers in imperfectly competitive product markets we show that strategic interactions among firms can explain the lack of relative performance based incentives in which compensation decreases with rival firm performance the need to soften product market competition generates an optimal compensation contract that places a positive weight on both own and rival performance firms in more competitive industries place greater weight on rival firm performance relative to own firm performance we find empirical evidence of a positive sensitivity of compensation to rival firm performance that is increasing in the degree of competition in the industry

evaluating a stochastic programming based bidding model for a multireservoir system hydropower producers need to schedule when to release water from reservoirs and participate in wholesale electricity markets where the day ahead production is physically traded a mixed integer linear stochastic model for bid optimization and short term production allocation is developed and tested through a simulation procedure implemented for a complex real life river system the stochastic bid model sees uncertainty in both spot market prices and inflow to the reservoirs the same simulation procedure is also implemented for a practice based deterministic heuristic method similar to what is currently used for bid determination in the industry and the results are compared the stochastic approach gives improvements in terms of higher obtained average price and higher total value than the deterministic alternative it also performs well in terms of startup costs in the presence of river flow travel delay the practice based method is even more outperformed by the stochastic model

dividend changes abnormal returns and intra lndustry firm valuations previous empirical research has established that dividend changes are associated with sig nificant abnormal returns this association is rationalized on the basis that the dividend announcement acts as a signal of future earnings another body of research has documented the existence of intra industry transfers of information where news about one firm is extrapolated to other companies in the same industry earnings information transfers have been found to be positive in nature with good news about one company leading to stock price increases for rival firms linking dividend signaling and information transfer tests were constructed to ascertain whether the dividend change of one firm is associated with the stock price performance of other companies in the same industry the results indicate there is some small positive information transfer the magnitude of information transfer is related to the degree of the dividend surprise the recent dividend history of the other companies and correlations in stock returns between the dividend announcer and the other companies information transfer is found to affect earnings and earnings growth estimates of the other firms and this leads to revisions in their stock prices

information in prices about future earnings abstract stock return over a period reflects the market s revision in expectation of future earnings accounting earnings over the same period however have limited ability to reflect such revised expectations therefore returns anticipate earnings changes and the earnings response coefficient from a regression of returns on contemporaneous earnings changes is biased toward zero we reduce this bias by including leading period returns in price earnings regressions the resulting estimated earnings response coefficient magnitudes suggest that the capital market on average views earnings changes to be largely permanent this is consistent with the random walk time series property of annual earnings

strategic offering for a wind power producer as a result of subsidies and technological maturity renewable electricity producers have grown in some jurisdictions to clearly dominant positions in the market under this context we propose an offering strategy for a wind power producer with market power that participates in the day ahead market as a price maker and in the balancing market as a deviator uncertainty pertaining to wind power production and balancing market price is represented through a set of correlated scenarios the proposed model is a stochastic mathematical program with equilibrium constraints mpec that can be recast as a tractable mixed integer linear programming milp problem which is solvable using available optimization software results from an illustrative example and two case studies show the effectiveness of the proposed model

a comparison of managers perceptions of short termism in sweden and the u s u s and u k firms have been thought to invest in a more short term manner than japanese and german firms this article uses a questionnaire and interviews to compare u s and swedish top executiv

models of stock returns a comparison in this paper a discrete mixture of normal distributions is proposed to explain the observed significant kurtosis fat tails and significant positive skewness in the distribution of daily rates of returns for a sample of common stocks and indexes stationarity tests on the parameter estimates of this discrete mixture of normal distributions model revealed significant differences in the mean estimates that can explain the observed skewness and significant differences in the variance estimates that can explain the observed kurtosis an alternative explanation for the observed fat tails is the symmetric student model the result of a comparison between the models is that the discrete mixture of normal distributions model has substantially more descriptive validity than the student model for many years both financial economists and statisticians have been concerned with the description of stock market returns the form of the distribution of stock returns is a crucial assumption for mean variance portfolio theory theoretical models of capital asset prices and the prices of contingent claims for example understanding the behavior of the variance is essential to option pricing models empirical tests of asset pricing models and the efficient markets hypothesis draw statistical inferences that are also conditional on distributional assumptions the most convenient assumption for financial theory and empirical methods is that the distribution of security rates of return be multivariate normal with parameters that are stationary over time since the normal distribution is stable under addition any arbitrary portfolio of stocks will also be normally distributed with the additional assumption of risk aversion mean variance theory follows furthermore the assumptions of normality and parameter stationarity are required for most of the econometric techniques typically used in empirical research tests of the normality hypothesis on the daily returns of the dow jones industrial stocks by fama 121 revealed more kurtosis fatter tails than that predicted from a sample of independent and identically distributed normal variates fama concluded from this evidence that the distribution of price changes conforms better to the stable paretian distribution with characteristic exponent

rational expectations analysts forecasts of earnings and sources of value gains for takeover targets abstract value gains to target firm shareholders in takeover bids may be due to potential synergy between bidder and target and or potential target restructuring based on new information released by the bid since these two models have different implications for the anticipated earnings of the target as a stand alone entity analysts earnings forecast revisions afr for the target during the bid may provide evidence for the new information hypothesis for 326 uk targets of takeover bids during 1987 1993 we estimate analysts earnings forecast revisions using the institutional brokers estimate system ibes and relate them to bid premia paid to target shareholders analysts revise their forecasts significantly up on bid announcement for failed especially failed hostile bids the earnings forecast revision and bid premium are more positively correlated than for successful and friendly bids this is consistent with the rational expectations behaviour of target shareholders modelled by grossman and hart s j grossman o d hart bell journal of economics 11 1 1980 42 s j grossman o d hart journal of finance 36 1981 253

the relationship between the level of capital expenditures and firm value when a firm s management needs to raise external capital in order to finance an invest ment project it is likely to have better information about the project s future return than do potential investors in such a case as has been shown in the literature management may be able to signal its information through the use of certain financial variables how ever the possibility that management may be able to use the level of investment in the project itself to signal their information has not been considered the purpose of this paper is to examine this possibility it is shown here that the level of capital investment may be able to perfectly reveal management s information with a higher input level signalling more favorable information it is further demonstrated that even in this equilibrium finan cial variables still play an important role among other results it is shown in contrast to a conclusion of a study by leland and pyle that in this setting the number of shares held by management may be negatively correlated with the favorableness of their information

seasonalities in security returns the case of earnings announcements abstract we document a seasonal pattern in stock returns around quarterly earnings announcement dates small firms show large positive abnormal returns and a sizable increase in the variability of returns around these dates only part of the large abnormal returns can be accounted for by the tendency of firms with good news to announce early large firms show no abnormal returns around announcement dates and a much smaller increase in variability

optimal offering and operating strategies for wind storage systems with linear decision rules the participation of wind farm energy storage systems wf ess in electricity markets calls for an integrated view of day ahead offering strategies and real time operation policies such an integrated strategy is proposed here by co optimizing offering at the day ahead stage and operation policy to be used at the balancing stage linear decision rules are seen as a natural approach to model and optimize the real time operation policy these allow enhancing profits from balancing markets based on updated information on prices and wind power generation our integrated strategies for wf ess in electricity markets are optimized under uncertainty in both wind power and price predictions the resulting stochastic optimization problem readily yields optimal offers and linear decision rules by adding a risk aversion term in form of conditional value at risk into the objective function the optimization model additionally provides flexibility in finding a trade off between profit maximization and risk management uncertainty in wind power generation as well as day ahead and balancing prices takes the form of scenario sets permitting to reformulate the optimization problem as a linear program case studies validate the effectiveness of the strategy proposed by highlighting and quantifying benefits w r t other existing strategies

the adjustment of dividends to permanent earnings a fundamental issue in corporate finance is whether dividend changes convey information about future earnings of the firm there is an extensive literature in finance and accounting which discusses this issue however these studies have yielded puzzling results studies using the eventstudy methodology and the cross sectional regression approach have usually found a significant relationship between dividend changes and subsequent earnings on the other hand empirical studies based on time series regression by watts 32 and gonedes 8 have found that dividends convey little information about subsequent earnings most of the previous studies have examined the relationship between dividends and reported earnings or the relationship between dividends and analyst earnings forecasts however as nakamura and nakamura 26 suggested dividend changes may be related to the permanent earnings of the firm if managers have superior information to investors on future earnings they should be able to form more precise estimates of permanent earnings managers may then use dividends as an instrument to reflect their beliefs about the likely changes in permanent earnings thus consistent with lintner s 19 observations an increase in current earnings which reverses in subsequent periods would typically not elicit a dividend change whereas an increase in earnings that is expected to persist would lead to a dividend change the use of reported earnings figures rather than permanent earnings in the empirical examination may explain the puzzling results documented in previous dividend studies if managers indeed determine dividends based on their forecasts of permanent earnings empirical investigation using either reported earnings or short run earnings forecasts will be subject to a serious measurement error this measurement problem could distort the empirical relationship in dividend earnings studies in this paper we propose a permanent earnings model to explain the corporate dividend behavior the model is an extension of the previous partial adjustment models of dividends by

corporate financial policy and corporate control abstract this paper presents evidence that stockholder wealth declines on average when managers respond to attempted hostile takeovers with defensive changes in asset and ownership structure the data also indicate that these corporate restructurings are typically quite large and that many are attempts by managers to create barriers specific to the hostile bidder and or to consolidate a block of voting securities in the hands of management allies the evidence suggests that defensive motives whether beneficial or harmful influence corporate asset and ownership structure

open interest in stock options around quarterly earnings announcements in this paper i document the behavior of open interest in listed stock options around quarterly earnings announcements using pooled timeseries cross section regressions i find a significant decline in open interest prior to announcements this behavior cannot be explained by the reactions of investors to good and bad news i also find in several separate regressions that open interest behaves differently for options whose values are most sensitive to changes in stock volatility suggesting the behavior of open interest is correlated with recently documented temporary increases in the volatility of stock returns around announcement dates many studies based on the volume and price behavior of equities have confirmed that investors respond to public announcements thought to contain information interpreting those responses is a more difficult task for example while beaver 1968 has argued that consensus among investors is an important factor in investor responses others have shown that it is not possible to make unambiguous inferences about consensus by examining price and volume alone see miller 1977 verrecchia 1981 and karpoff 1986

equilibrium pricing and portfolio composition in the presence of uncertain parameters abstract we analyze the effect of parameter uncertainty on equilibrium asset prices for the symmetric case when the amount of estimation risk is the same for all securities the existing literature argues that parameter uncertainty is largely irrelevant for equilibrium our results differ we find that symmetric estimation risk affects equilibrium values of relative asset prices expected returns market weights and betas

estimating product market competition methodology and application abstract in oligopolies firms behave strategically and commit to actions that elicit favorable responses from rivals firm actions consequently are a function of the nature of these strategic interactions in this paper we develop a methodology for the empirical estimation of strategic interactions in product markets we then apply our measure of strategic interactions to ceo compensation we use quarterly data on profits and sales from compustat to estimate the slope of firm s reaction function when the slope is negative and marginal profits decrease with an increase in the rival s actions the firm is classified as a strategic substitute when the slope is positive and marginal profits increase with an increase in the rival s actions the firm is classified as a strategic complement as predicted by theory we find significant evidence that strategic substitutes decrease the pay for performance incentives of their ceos on the other hand strategic complements significantly increase ceo pay for performance incentives the empirical measure developed can be used to test a wide variety of strategic models

contagion effects in the electric utility industry following the fukushima nuclear accident this article examines intra industry information transfers in the european and japanese electric industry in the wake of the fukushima nuclear accident for european conventional utilities the downward price drift is relatively small and transient in nature yet we find positive and lingering effects of the accident on the shares of alternative electric utilities japanese utilities were hit the hardest and the shock seems to be long lasting an interesting finding of this article is the abrupt increase decrease in the systematic risk of conventional alternative electric utilities following the event in europe we could only document a decrease in the idiosyncratic risk of conventional utilities pointing to enhanced return synchronicity in the conventional power industry in turn total risk seems to be stationary around the accident in rebuttal idiosyncratic and systematic risks and consequently total risk have substantially risen in japan since the event finally intercept values related to

stochastic joint optimization of wind generation and pumped storage units in an electricity market one of the main characteristics of wind power is the inherent variability and unpredictability of the generation source even in the short term to cope with this drawback hydro pumped storage units have been proposed in the literature as a good complement to wind generation due to their ability to manage positive and negative energy imbalances over time this paper investigates the combined optimization of a wind farm and a pumped storage facility from the point of view of a generation company in a market environment the optimization model is formulated as a two stage stochastic programming problem with two random parameters market prices and wind generation the optimal bids for the day ahead spot market are the ldquohere and nowrdquo decisions while the optimal operation of the facilities are the recourse variables a joint configuration is modeled and compared with an uncoordinated operation a realistic example case is presented where the developed models are tested with satisfactory results

a direct test of roll s conjecture on the firm size effect empirical research indicates that small firms earn higher average rates of return than large firms even after accounting for beta risk roll conjectured that the small firm effect might be attributed to improper estimation of security betas the evidence shows that while the direction of the bias in beta estimation is consistent with roll s conjecture the magnitude of the bias appears to be too small to explain the firm size effect

international relocation firm and industry determinants this article is the first to explore the determinants of international relocation of a firm it is found that labour intensive firms in a highly industrialized and open economy such as belgium tend to relocate more to other countries than their highly productive capital intensive counterparts access to a global network firm size and the rate of innovation have a positive effect on the probability of relocation uncertainty has a negative impact on the probability of relocation the positive effect of firm size and profitability on the relocation decision is clearly distinct from its effect on the exit decision of a firm

stock market reaction to capital investment decisions evidence from business relocations we investigate the stock market reaction to 447 announcements of business relocation decisions in the 1978 1990 period we find that the stock market reaction to such decisions is tied to the motive for the relocation and the implied prospects for the firm with the type of facility being relocated playing an insignificant role our finding reconciles several results in the literature concemmg the stock market reaction to announcements of capital investment decisions

valuation effects of greenmail prohibitions greenmail payments are widely viewed as actions designed by managers to perpetuate their tenure in offiee this view which suggests that greenmail prohibitions would enhance shareholder wealth receives mixed empirical support in this paper the average market reaction to charter amendments prohibiting greenmail payments is weakly nega tive suggesting there is a value to maintaining managerial flexibility nonlinear maxi mum likelihood estimation however reveals a strong positive correlation between the market reaction and the firm s abnormal stock price runup over the three months just prior to the proxy mailing date for the subsample of firms with a relatively large prior runup the precommitment not to pay greenmail is value enhancing if the prior runup reflects takeover rumors then this evidence is consistent with the proposition that greenmail pay ments amidst takeover speculations are value decreasing

a quality adjustment model of the academic labor market the case of economists this paper uses some new data on the initial academic placements of new ph d economists to test a quality adjustment model which is consistent with the hypothesis that most academic appointments follow a downstream pattern by the use of weighted least squares the authors confirm the importance of the perceived quality of the faculty of the degree granting program the publishing performance of former graduates of these programs and the student faculty ratio of these programs in economics over the period 1960 to 1978 finally it is shown that contrary to popular opinion the extent of the downstream pattern has not been magnified in the so called buyers markets of the 1970 s

market rationality and dividend announcements abstract we investigate stock market rationality by examining the timeliness and unbiasedness of the market s response to dividend announcements our initial findings for market timeliness show a sluggish market reaction to dividend announcements however when the ex dividend effect is controlled for we find no evidence of a sluggish market reaction we examine the unbiasedness of the market s response by testing whether the net announcement effect across a sample that is devoid of ex post selection bias sums to zero we observe a significant positive net announcement effect and examine several plausible conjectures for this puzzling phenomenon but none provides a satisfactory explanation

corporate capital expenditure decisions and the market value of the firm abstract this paper is an event time study of the common stock prices of a sample of 658 corporations around the dates on which they publicly announced their future capital expenditure plans for industrial firms announcements of increases decreases in planned capital expenditures are associated with significant positive negative excess stock returns for public utility firm neither increases nor decreases in planned capital expenditures are associated with significant excess stock returns we interpret the evidence as being consistent with the hypothesis that managers seek to maximize the market value of the firm in making their corporate capital expenditure decisions

investigating security price performance in the presence of event date uncertainty abstract this paper introduces an event study method that incorporates the possibility of a random event date consistent with empirical evidence we assume an event may affect not only the conditional mean of a security s return but also its conditional variance we compare the statistical power and efficiency of our maximum likelihood method with the standard application of traditional event study methods to multiday security returns assuming a two day event period our empirical results provide evidence that the multiday approach is robust we use our maximum likelihood method to investigate the valuation effects of stock splits and stock dividends

connecting the intraday energy and reserve markets by an optimal redispatch electricity markets based on simple bids provide a very high degree of transparency and simplicity however simple bids fail to capture many well known characteristics of generating units and therefore the responsibility for obtaining feasible schedules is transferred to market participants the purpose of this paper is to help the generating utility to automatically analyze the last energy program cleared in the market and in case this program is technically unfeasible to provide an alternative schedule by re dispatching the generating units this is achieved by formulating an optimization problem where the objective is to find the cheapest and feasible instantaneous power trajectory of each generator trying to minimize the differences between its hourly average values and the last energy program as the objectives of the utility can vary during the day three different models are presented two of them are formulated as a joint energy and reserve dispatch in order to take into account possible commitments acquired in the ancillary services market of agc regulation in this sense a novel approach for considering discontinuous ancillary regulation curves is proposed some numerical examples are included to illustrate the essential features of the models

the impact of strategic interaction on earnings expectations associated with corporate product strategies abstract we examine how strategic interaction in an industry influences the earnings expectations of financial analysts with regard to new product strategies we find that following announcement of new products analysts revise earnings forecasts upward more for announcing firms competing in low strategic interaction industries than for firms competing in high strategic interaction industries for value enhancing value reducing product strategies earnings forecast revisions are more favorable for rivals competing under a high low degree of strategic interaction than for rivals competing under a low high degree of strategic interaction overall empirical evidence indicates that the nature of strategic competition within the industry is important in assessing the market expectations of earnings for new product announcers and their rivals

corporate valuation around the world the effects of governance growth and openness abstract the purpose of this paper is to provide a comprehensive analysis of corporate valuation around the world specifically we i document and compare corporate valuation around the world and ii identify the key factors that drive cross country differences in valuation in doing so we utilize the country level tobin s q ctq computed as the ratio of the aggregate market value to book value of all assets held by all public firms domiciled in a country which amounts to the tobin s q for the market portfolio of the country the key findings of the paper are first ctq varies greatly across countries ranging from 0 73 for venezuela to 2 11 for finland with the international mean of 1 30 during our sample period 1999 2004 despite the steady integration of the world economy in recent years corporate valuation remains starkly different across countries second apart from the effect of corporate governance cross country differences in corporate valuation are significantly driven by the growth options of countries represented by the r d intensities capital expenditures and gdp growth in addition the degree of capital market openness has a significant independent effect on valuation third our regression analyses show that ctq varies directly with shareholder rights enforcement of insider trading laws gdp growth r d intensity and the degree of capital market openness the key findings remain robust to the inclusion of inflation and industry effects

an empirical analysis of stock returns around dividend changes this paper documents significant drift in stock returns following announcements of changes in cash dividends the magnitude is i smaller for increases than for decreases ii inversely related to firm size and positively to dividend yield change and iii concentrated in the first quarter beta changes do not explain the drift and it is robust in various subperiods next it is shown that dividend increases are positively autocorrelated especially every fourth quarter the prices keep reacting to future announcements as if the market ignores these autocorrelations dividend decreases exhibit weak autocorrelation and the returns are negative for the following three announcements

investment opportunities and market reaction to capital expenditure decisions abstract in this study we argue that share price reaction to a firm s capital expenditure decisions depends critically on the market s assessment of the quality of its investment opportunities we postulate that announcements of increases decreases in capital expenditures positively negatively affect the stock prices of firms with valuable investment opportunities contrarily we predict that announcements of increases decreases in capital spending negatively positively affect the share prices of firms without such opportunities our empirical results are generally consistent with these predictions overall empirical evidence supports our conjecture that it is the quality of the firm s investment opportunities rather than its industry affiliation which determines the share price reaction to its capital expenditure decisions

policy based reserves for power systems this paper introduces the concept of affine reserve policies for accommodating large fluctuating renewable in feeds in power systems the approach uses robust optimization with recourse to determine operating rules for power system entities such as generators and storage units these rules or policies establish several hours in advance how these entities are to respond to errors in the prediction of loads and renewable infeeds once their values are discovered affine policies consist of a nominal power schedule plus a series of planned linear modifications that depend on the prediction errors that will become known at future times we describe how to choose optimal affine policies that respect the power network constraints namely matching supply and demand respecting transmission line ratings and the local operating limits of power system entities for all realizations of the prediction errors crucially these policies are time coupled exploiting the spatial and temporal correlation of these prediction errors affine policies are compared with existing reserve operation under standard modeling assumptions and operating cost reductions are reported for a multi day benchmark study featuring a poorly predicted wind infeed efficient prices for such policy based reserves are derived and we propose new reserve products that could be traded on electricity markets

optimal offering and operating strategy for a large wind storage system as a price maker wind farms and energy storage systems are playing increasingly more important roles in power systems which makes their offering nonnegligible in some markets from the perspective of wind farm energy storage systems wf ess this paper proposes an integrated strategy of day ahead offering and real time operation policies to maximize their overall profit as participants with large capacity in electricity markets can influence cleared prices by strategic offering a large scaled wf ess is assumed to be a price maker in day ahead markets correspondingly the strategy considers influence of offering quantity on cleared day ahead prices and adopts linear decision rules as the real time control strategy these allow enhancing overall profits from both day ahead and balancing markets the integrated price maker strategy is formulated as a stochastic programming problem where uncertainty of wind power generation and balancing prices are taken into account in the form of scenario sets permitting to reformulate the optimization problem as a linear program case studies validate the effectiveness of the proposed strategy by highlighting and quantifying benefits comparing with the price taker strategy and also show the profit enhancement brought to the distributed resources

internal corporate restructuring abstract firms that alter their divisional configurations on average increase shareholder wealth gains appear to come from information about investment opportunities and increases in efficiency performance before the restructurings suggests poorly organized firms are motivated by market pressures to change their organizations change also occurs in healthy firms as part of the growth process restructuring often occurs where there is no evidence of takeover threats while stock prices increase around the restructurings there is a contemporaneous decline in earnings due to increased expenses these findings appear inconsistent with the contention that the market pressures managers into focusing on short run earnings

does raiding explain the negative returns to faculty seniority i introduction economists have studied various aspects of faculty mobility research shows that turnover is greater among nonunion faculty rees 1994 female faculty average slightly more employers than male faculty barbezat and hughes 2001 ginther and kahn 2004 1 the responsiveness of turnover to relative pay diminishes with rank ehrenberg kasper and rees 1991 and research productivity enhances prospects for upward mobility ault rutman and stevenson 1979 1982 coupe smeets and warzynski 2005 still questions remain unanswered where do faculty go when they leave a university how does faculty turnover vary with time at a university what percentage of faculty move upward and what percentage move downward because of tenure denials or the prospect of being turned down for tenure the present article contributes to our understanding of these issues but its primary objective was to use data on faculty mobility to provide insights on another issue returns to academic seniority the negative returns to seniority that many studies find are commonly attributed to one of two factors 2 the first view is that negative returns reflect monopsony power on the part of universities faculty with high mobility costs acquire high seniority and because they are unlikely to move they are paid less than equally productive faculty that employers view as more likely to leave a competing explanation is that highly productive faculty are raided according to this story returns to seniority are biased negatively because faculty with high seniority tend to have low unmeasured productivity the best faculty are bid away moving on to better jobs those who remain are the faculty without outside offers and the negative returns estimated for senior faculty actually reflect a penalty for low unmeasured productivity rather than a true penalty for seniority the raiding story has several implications first estimated returns to seniority should become less negative the more fully the productivity is measured second estimated returns should be less negative once we control for faculty who are bid away finally and of particular importance estimated returns to seniority should not be negative for faculty who are bid away the faculty for whom unmeasured productivity is presumably high with the right data set these hypotheses can be tested rejection of the raiding hypothesis would provide tacit evidence of monoposony in academic markets 3 this article contributes to the literature in several ways it is the first research to directly test the raiding hypothesis it provides a detailed look at faculty mobility in one segment of the academic labor market it extends and improves bratsberg ragan and warren 2003 in the following ways it expands the sample to cover three decades of faculty pay records it includes additional controls for productivity number and types of books recent and prospective articles and so forth resulting in the most complete specification of research productivity to date and it allows for heterogeneity in the seniority penalty via phd pedigree and direction of move finally it tests for the possibility that the academic job market does a better job of matching faculty and universities in recent years as might be expected because of the information revolution the sample consists of five public phd granting universities in the midwest we track all tenure track economics faculty employed in these universities over a 30 yr period we measure their productivity their pay and their mobility as such the study provides a rich and detailed investigation of one subset of economics programs it is possible that mobility may be greater in urban areas where faculty can more readily obtain alternative employment without relocating and prior research indicates that pay structures depend on the university s stature and its relative emphasis on research and teaching

foreign and domestic divestments evidence on valuation effects of plant closings this study examines the valuation consequences of domestic and foreign divestments by comparing the stock price reaction to announcements of domestic plant closings and foreign plant closings a domestic plant closing could indicate firm wide problems and impending firm deterioration a foreign plant may serve to exploit arbitrage opportunities specific to that plant location closing a foreign plant need not signify firm wide problems our comparison of stated reasons for closings supports these propositions therefore foreign plant closing announcements should produce a smaller stock price decline that domestic plant closing announcements empirical results indicate a significant negative stock price reaction for domestic plant closings and an insignificant negative stock price reaction for foreign plant closings differences in stock price reaction remain after controlling for firm specific factors

positive information from equity issue announcements abstract the myers and majluf 1984 model predicts a nonpositive price reaction to an announcement of a new issue of equity this paper shows that the myers and majluf result is a direct outcome of their assumption that all potential projects facing the firm have a nonnegative net present value refining the myers and majluf model by allowing for the realistic possibility of potential projects having negative net present values leads to different predictions the refined model predicts positive as well as negative stock price responses consistent with recent empirical evidence concerning the stock price effects of new stock issues

on corporate governance a study of proxy contests abstract this paper examines a sample of firms experiencing proxy contests for seats on their board of directors dissident shareholders usually fail to obtain a majority of board seats nevertheless they capture some seats via mechanisms such as cumulative voting in over half of the sample contests regardless of proxy contest outcome positive and statistically significant share price performance is associated with the contest that finding is predicted by the standard economic analysis of proxy contests in which the challenges benefit shareholders by improving corporate performance the finding runs counter to the claim of berle 1962 that the economists view of proxy contests is a wholly imaginary picture a portion of the positive share price changes taking place in the early stages of some proxy contests is not permanent however and as suggested by manne 1962 is at least partially attributable to temporary increases in the market value of the vote attached to corporate shares

the positive announcement period returns of equity carveouts asymmetric information or divestiture gains using a sample of 336 carveouts that occurred in the period 1980 97 this article shows that the announcement period returns increase with the ratio of subsidiary to nonsubsidiary assets this finding contradicts the asymmetric information model proposed by nanda additional tests relate the returns to the following divestiture based explanations proposed by schipper and smith and others refocusing of the parent and subsidiary operations financing of new and existing projects reducing the complexity of stock valuation and enabling an eventual spinoff or third party acquisition the combined evidence rejects the asymmetric information hypothesis and supports the divestiture gains hypothesis of carveouts

the value of intra day markets in power systems with high wind power penetration in this paper the value of intra day markets in managing wind power uncertainty in competitive electricity markets is analyzed a competitive electricity market model consisting of a day ahead market and a number of intra day markets is considered real time operation adjustment is also taken into account stochastic programming is used to model decision making under wind power uncertainty numerical simulations based on two test systems are presented

risk aversion uncertain information and market efficiency abstract this paper develops and tests the uncertain information hypothesis as a means of explaining the response of rational risk averse investors to the arrival of unanticipated information the theory predicts that following news of a dramatic financial event both the risk and expected return of the affected companies increase systematically and that prices react more strongly to bad news than good an empirical investigation of over 9000 marketwide and firm specific events produces results consistent with these predictions we conclude that the market reacts to uncertain information in an efficient if not instantaneous manner

the pricing effects of interfirm cash tender offers the tools provided by option pricing theory are used to examine the wealth effects of interfirm cash tender offers the analysis provides evidence consistent with the synergy theory of corporate takeovers and has implications concerning the economic effects of regulations of cash tender offers the analysis further suggests that the market prices information uncertainty in a manner not captured by the standard capital asset pricing model the study introduces a technique for unbundling the prices of a primary asset and a contingent claim when only the prices of the combination are observed academics the business community and government regulators have focused considerable attention on corporate takeovers in this paper we extend the literature on takeovers in two ways first we utilize the tools provided by optionpricing theory to examine the wealth effects of interfirm cash tender offers this analysis provides some new evidence on the possible motivations for corporate takeovers second we examine the pricing of a target firm s common stock following an interfirm cash tender offer this examination suggests that the market prices information uncertainty in a manner not captured by the standard capital asset pricing model capm in addition to providing evidence on tender offers and asset pricing the study also introduces a technique for unbundling the prices of a primary asset and a contingent claim when only the prices of the combination are observed this technique has the potential to be used in other applications previous researchers have documented substantial wealth gains for target

product market pricing power industry concentration and analysts earnings forecasts this is the first study to establish a link between product market power and analysts earnings forecast accuracy and bias relating two different dimensions of market power to earnings forecastability we document that a a firm s relative pricing power and b its industry concentration are strong positive determinants of analysts earnings forecast accuracy we find that forecasting earnings of higher market power firms is less complex due to their ability to withstand cost shocks as well as greater informational efficiency enjoyed by such firms further forecast optimism increases with weakening product market pricing power and with lower industry concentration the knowledge derived from this study will hopefully improve the accuracy of equity valuation and thereby engender better buy side stock selections and sell side recommendations by analysts our analysis also suggests that brokerage firms compensating analysts based on forecast accuracy need to adjust for the differential in the information complexity of different industries

the wealth effect of merger activity and the objective functions of merging firms abstract this paper studies the net effects of the long run sequence of events leading to merger and of merger per se on shareholder wealth the appropriate measure of the wealth effect is shown to be the abnormal dollar return cumulated over time using this measure the long run wealth effect of the event sequence culminating in merger is significantly negative for acquiring firms for acquired firms the effect is negative but not significant the immediate impact of merger per se is positive and highly significant for acquired firms but larger in absolute value and negative for acquiring firms the evidence also reveals that measured abnormal rates of return to acquiring firms are sensitive to a slight variation in model specification and dependent on firm size with smaller firms earning significantly negative post merger returns

differential interpretation of public signals and trade in speculative markets most models of trade in speculative markets assume that agents interpret public information identically we provide empirical evidence on the relation between the volume of trade and stock returns around public announcements and we argue that the evidence is inconsistent with this assumption we then develop a model of trade around public announcements that incorporates differential interpretations and is consistent with the observed volume return relation then we test the standard model of belief revision underlying most models of trade using stock brokerage research analysts earnings forecasts the hypthesis of identical interpretations seems inconsistent with the forecast revisions in these data

throwing good money after bad nuclear power plant investment decisions and the relevance of sunk costs abstract experimental psychologists and decision theorists suggest that managers are overly reluctant to terminate economically unviable projects and that they fail to ignore sunk costs this study serves two purposes first it shows that the framework of prospect theory allows us to reconcile the sunk cost effect with some older well established ideas in investment decision making secondly the study investigates the external validity of the sunk cost research in the context of the u s nuclear power program the empirical analysis is based on share price movements in reaction to among other events all plant completions and cancellations over 50 million prior to march 1984 the results are mixed however prudency reviews ordered by public service commissions around the nation point to evidence consistent with the sunk cost fallacy

political uncertainty and asset valuation evidence from business relocations in canada abstract quebec s drive for sovereignty from canada has been the source of political uncertainty for decades in canada this paper studies empirically stock market s reaction to the announcements of business relocations from the province of quebec to other provinces within canada similar announcements about toronto are used for control empirical results show that the market s reaction to the announcements of business relocations a from quebec is positive b from toronto is negative and c to toronto is positive the difference in abnormal returns between the quebec and toronto samples is positive and significant

competitive energy storage in the presence of renewables a large fraction of new distributed generation will use renewable sources and cannot be treated as conventional generators due to high variability energy storage is a natural mechanism for absorbing variability and hence minimizing costly reliance on generator reserves we consider a simple scenario in which energy imbalances are allocated to energy storage representing either cooperation with a renewable producer or competitive operation in markets the optimal storage scheduling strategy is shown to be an inventory control like policy which through mild approximation yields affine relationships with the state variables we develop and numerically evaluate suboptimal policies that approximately incorporate the effects of correlation further approximation enables us to characterize the nash equilibria arising between generation and storage which we use to analyze strategic effects specifically we find that inefficient storage can lead to non socially optimal behavior

an analysis of the implications of uncertainty and agency problems on the wealth effects to acquirers of private firms abstract extensive empirical work shows that bidders do not gain from the acquisition of publicly traded targets but experience positive excess returns in the acquisition of privately held firms this study investigates how two important differences between private and public firms namely informational uncertainty and ownership characteristics impact the returns to acquirers a sample of targets that were acquired shortly after filing for an ipo was collected to circumvent the lack of information on private firms in spite of the special characteristics of these targets the listing effect is still prevalent in this sample the results of the analysis are consistent with the hypothesis that acquirers gain in the acquisition of private firms because these targets have a relatively weaker bargaining position due to informational and agency problems and costly access to external capital markets to finance growth opportunities

the impact of ceo turnover on equity volatility this study investigates the effect on stock price volatility of a significant event in the life of the firm a change in its ceo we find significant long lived increases in volatility following ceo turnover after controlling for firm characteristics and marketwide volatility these increases are larger after forced departures and outside successions following voluntary departures stock prices also respond more strongly to earnings announcements following turnovers these results are consistent with more informative signals of value driving the increased volatility helping resolve two sources of uncertainty possible changes in the firm s strategy and doubt about the successor ceo s ability

economic consequences of firms depreciation method choice evidence from capital investments abstract this study identifies several interrelated reasons why firms depreciation method choice is likely to influence managers capital investment decisions we find that firms that use accelerated depreciation make significantly larger capital investments than firms that use straight line depreciation further we find that there has been a migration away from accelerated depreciation to straight line depreciation over the past two decades firms that make such accounting changes make smaller capital investments in the post change periods than in the pre change periods these results suggest that a choice made for external financial reporting purposes influences managers capital investment decisions

opportunity cost bidding by wind generators in forward markets analytical results wind generation must trade in forward electricity markets based on imperfect forecasts of its output and real time prices when the real time price differs for generators that are short and long the optimal forward strategy must be based on the opportunity costs of charges and payments in real time rather than a central estimate of wind output we present analytical results for wind s optimal forward strategy in the risk neutral case the optimal strategy is determined by the distribution of real time available wind capacity and the expected real time prices conditioned on the forward price and wind out turn our approach is simpler and more computationally efficient than formulations requiring specification of full joint distributions or a large set of scenarios informative closed form examples are derived for particular specifications of the wind price dependence structure in the usual case of uncertain forward prices the optimal bidding strategy generally consists of a bid curve for wind power rather than a fixed quantity bid a discussion of the risk averse problem is also provided an analytical result is available for aversion to production volume risk however we doubt whether wind owners should be risk averse with respect to the income from a single settlement period given the large number of such periods in a year

the intraday speed of stock price adjustment to major dividend changes bid ask bounce and order flow imbalances abstract this paper examines the intraday stock price reaction to substantial shifts in dividend policy the results indicate the price reaction to be slower than that previously found by patell and wolfson 1984 and closer to that found with earnings announcements by woodruff and senchack 1988 possible order flow imbalances are examined by looking at the proximity of transaction prices to contemporaneous bid and ask quotes while order flow imbalances are evident for bad news announcements this is not the case for the dividend increase sample this is interpreted as evidence that the price reaction to major dividend increases are in general anticipated fifteen minute holding period returns are computed to measure the movement of equilibrium prices during the announcement period results show a rapid adjustment of prices to positive announcements with adjustment to negative announcements taking up to 75 minutes finally fifteen minute lagged bid ask returns are calculated to determine whether an investor could respond to the announcement and earn positive returns these results are found to be dependent on the transaction cost assumptions being made

predictable events and excess returns the case of dividend announcements abstract this paper hypothesizes that the risk per unit of time and the required rate of return are higher than normal during an event period whose timing can be predicted consistent with this hypothesis this paper presents empirical evidence indicating that the unconditional mean rate of return the variance of stock returns and their systematic risk are higher than usual during dividend announcement periods however the documented increases in the systematic risk are not large enough to fully explain the excess returns this finding is puzzling and hard to reconcile with existing theory

the spinoff and merger ex date effects this article shows that some of the wealth gains from financial decisions involving changes in security form occur on predictable ex dates for a sample of 113 spinoffs during 1964 to 90 we document an average excess return of 3 0 percent on ex dates roughly the same magnitude as the average announcement date return we conjecture that the spinoff ex date return arises because the parent and subsidiary stocks attract different investors who prefer to buy the separated shares after the ex date we also document that on average the target shareholders in stock for stock mergers earn an excess return of 1 5 percent on merger ex dates recent years have witnessed a large increase in restructuring programs that include divestitures for example kaplan and weisbach 1992 report that 44 percent of a sample of large acquisitions completed in the 1970s and early 1980s had already been divested by the end of the 1980s most divestitures are accomplished by selling an unwanted subsidiary or division to another company or a group of investors for cash based on a casual survey of transactions reported in the mergers and acquisitions magazine this divestiture form is commonly known as a selloff in many cases however the parent company relinquishes control of a subsidiary by simply distributing the subsidiary shares as a nontaxable stock dividend to current stockholders this latter divestiture form is known as a spinoff and has been gaining

the limitations of industry concentration measures constructed with compustat data implications for finance research industry concentration measures calculated with compustat data which cover only the public firms in an industry are poor proxies for actual industry concentration these measures have correlations of only 13 with the corresponding u s census measures which are based on all public and private firms in an industry also only when u s census measures are used is there evidence consistent with theoretical predictions that moreconcentrated industries which should be more oligopolistic are populated by larger and fewer firms with higher price cost margins further the significant relations of compustatbased industry concentration measures with the dependent variables of several important prior studies are not obtained when u s census measures are used one of the reasons for this occurrence is that compustat based measures proxy for industry decline overall our results indicate that product markets research that uses compustat based industry concentration measures may lead to incorrect conclusions jel g10 g30 l10 a growing number of studies that consider the effects of product markets on financial economics related phenomena use industry concentration measures calculated with compustat data which cover only the public firms in an industry these studies examine issues related to asset pricing hou and robinson 2006 informed trading tookes 2008 idiosyncratic stock return volatility gaspar and massa 2006 mergers and acquisitions song and walkling 2000 fee and thomas 2004 shahrur 2005 corporate governance defond and park 1999 engel hayes andwang2003 rennie2006 karuna2007 capitalstructure lang and stulz 1992 kaleand shahrur 2007 corporate disclosurepolicy

rolling optimization of wind farm and energy storage system in electricity markets intraday energy markets have been established in some power markets mainly because of large scale wind power integration inspired by the spanish power market this paper proposes a modified market design which contains day ahead and intraday energy bidding sections to better accommodate stochastic wind energy then coordinated operation of the wind farm wf and energy storage system ess is studied rolling stochastic optimization formulations for day ahead intraday biddings and real time operations are put forward to obtain the optimal bidding strategy of wf ess union in each bidding section to maximize its overall profit case studies and sensitivity analyses are carried out on a union of wfs and a pumped storage plant psp simulation results show that the proposed rolling optimization method can effectively utilize the updated wind power forecast data and regulation capability of ess and thus increase profit for the union prominently

an empirical analysis of strategic competition and firm values the case of r d competition abstract we operationalize a firm s competitive strategy through a new empirical measure and develop a framework for empirical analysis of the market value of strategic behavior using this framework we study announcement effects of r d spending the announcing firm s stock prices are positively influenced by a change in spending and negatively by our competitive strategy measure csm competitors stock prices are positively influenced by the interaction between the market s reaction to the announcing firm and the csm our results are consistent with positive effects of accommodating competition with strategic substitutes and nonpositive effects of tough competition with strategic complements

event studies in management research theoretical and empirical issues we examined the use of event studies in management research and found that there was inadequate attention paid to theoretical and research design issues this lack of attention may lead to false in

evidence on the impact of exchange offers on security prices the case of income bonds the question of whether the value of a firm is affected by its debt equity ratio is still an unresolved one in the modigliani miller 1963 corporate tax model the value of a firm is a positive function of its debt equity ratio because of the tax deductibility of interest payments on debt financing on the one hand several authors kraus and litzenberger 1973 scott 1976 and kim 1978 have shown that the introduction of bankruptcy costs in the modigliani miller model implies that there will exist an optimum debtequity ratio for each firm and that the use of either more or less debt than the optimum amount will lead to a decrease in firm value on the other hand miller 1977 has shown that under certain circumstances introduction of personal taxes implies that the value of an individual firm will be independent of its debt equity ratio the question ultimately is an empirical one masulis 1979 provides evidence on the question by examining the stock returns of firms that

information effects in financial distress the case of seabrook station abstract in 1972 a group of electric utilities announced plans to construct seabrook station a nuclear generating facility in 1988 the lead partner in the venture public service company of new hampshire psnh filed for bankruptcy examination of the stock price effects of a variety of financial events preceding the bankruptcy filing shows that information about cash flows paid to psnh security holders affected the common stock prices of psnh and its seabrook partners whereas information about investment and operating cash flows had little or no effect

ownership structure investment and the corporate value an empirical analysis this paper examines the relation among ownership structure investment and corporate value focusing on whether ownership structure affects investment ordinary least squares regression results suggest that ownership structure affects investment and therefore corporate value however simultaneous regression results indicate that the endogeneity of ownership may affect these inferences suggesting that investment affects corporate value which in turn affects ownership structure the evidence shows that corporate value affects ownership structure but not vice versa these findings raise questions regarding the assumption that ownership structure is exogenously determined and bring into question the results in studies that treat ownership structure as exogenous

an empirical analysis of incremental capital structure decisions under managerial entrenchment abstract we study incremental capital structure decisions of dutch companies from 1977 to 1996 these companies have made 110 issues of public and private seasoned equity and 137 public issues of straight debt managers of dutch companies are entrenched for this reason a discrepancy exists between managerial decisions and shareholder reactions confirming zwiebel american economic review 1996 1197 1215 we find that dutch managers avoid the disciplining role of debt allowing them to overinvest however the market reactions show that this overinvestment behavior is recognized we do not find a confirmation of the adverse selection model of myers and majluf journal of financial economics 1984 187 221 this is probably due to the entrenchment of managers and the prevalence of rights issues

plant closing decisions and the market value of the firm abstract we investigate the underlying causes and the announcement effects of plant closings the closing in our sample do not appear related to takeover activity instead they appear motivated by declining firm profitability firms announcing closings have lower earnings than market or industry medians earnings typically improve slightly after the announcement we find a negative stock market reaction to plant closing announcements

interpreting common stock returns around proxy statement disclosures and annual shareholder meetings numerous studies have analyzed the stock market reaction to information released in proxy statements two possible biases in proxy statement research are suggested frequently misspecification of the return benchmark and a sample selection bias from analyzing only clean events this paper presents evidence that most of the conclusions of existing studies are not affected by these potential biases a significantly positive abnormal return was found around a random sample of shareholder meeting dates the result indicates that interpreting event study results for announcements occurring around annual shareholder meetings must be conducted carefully the results are consistent with the findings of kalay and loewenstein 14 who argue that risk and expected return can increase around predictable information producing events alternatively the study can be viewed as being consistent with several recent studies that find anomalous results using daily return data and large samples

trading behavior and the unbiasedness of the market reaction to dividend announcements this article examines the price formation process during dividend announcement day using daily closing prices and transactions data we find that the unconditional positive excess returns first documented by kalay and loewenstein 1985 are higher for small firm and low priced stocks price volatility and trading volume also increase during this period examination of trade prices relative to the bid ask spread and volume of trades at bid and asked prices shows that the excess returns cannot be attributed to measurement errors or to spillover effects of tax related ex day trading rather the price behavior is related to the absorption of dividend information

weighing the evidence on the relation between external corporate financing activities accruals and stock returns abstract bradshaw richardson and sloan brs find a negative relation between their comprehensive measure of corporate financing activities and future stock returns and future profitability noticing that accounting accruals are increases in net operating assets on a company s balance sheet we question whether it is possible to distinguish between the external financing anomaly documented by brs and the accrual anomaly first documented by sloan 1996 do stock prices fully reflect information in accruals and cash flows about future earnings the accounting review 71 289 315 we show that once controlling for total accruals the relation between external financing activities and future stock returns is attenuated and not statistically significant these findings are consistent with richardson and sloan 2003 external financing capital investment and future stock returns working paper university of pennsylvania and university of michigan

market valuation of joint ventures joint venture characteristics and wealth gains abstract along with rd that is the nature of relationship between partners the relatedness and the strategic implication of joint ventures to partners the extent of partners control over joint ventures and the corporate governance in parent firms the data set consists of two party equity joint ventures in the electronics industry that were launched between 1979 and 1988 the unit of analysis is the 174 u s firms out of 158 joint ventures of which 113 were cross border agreements and 45 were between u s firms the study applies the event study method to assess stockholders risk adjusted wealth gains and a cross sectional analysis based on a generalized least squares model to test the hypotheses contrary to popular belief our results show an overall favorable reaction to joint venturing in the stock market even though there is substantial variation according to contextual influences the findings show that stock market valuations reflect the economic potential of joint ventures and are affected by the degree and type of control shareholders and partners can exercise the first key finding in the study is that the valuation effect of joint ventures is multifaceted the market valuation of joint ventures depends on the relationship between partners the nature of partners contributions the extent of partners control over joint ventures and the corporate governance in parent firms our findings also show that partner size which has not been studied in prior studies is a critical variable affecting wealth gains from joint ventures our results certainly shed light on understanding the effect of size on corporate wealth gains from joint ventures the results provide conflicting support for most hypotheses depending on firm size implying that joint ventures have different strategic and managerial implications for the partners depending on size shareholders tend to perceive joint ventures as a risky entrepreneurial operation particularly for the smaller partners it is indeed difficult to protect the smaller partners firm specific know how from being appropriated by the other partners accordingly smaller firms role and degree of control in a joint venture substantially affect wealth gains from their joint venturing with larger corporations shareholders value majority equity sharing by smaller partners as an important governance mechanism to control resource flows and avoid opportunistic behaviors by the larger partners whereas this study extends the previous findings on positive wealth gains of joint ventures by examining contextual influences it also attempts to fill the void in the field of corporate entrepreneurship despite the growing interest in corporate entrepreneurship there has been little attempt to empirically examine its potential association with corporate financial performance in particular with market based performance measures or wealth gains financial theory posits that accounting based performance measures do not properly measure the value of managers entrepreneurial decisions rappaport 1986 argued that the true measure of the long run value of an investment decision is economic value for shareholders as measured by abnormal stock returns i e wealth gains our study is an extension of this fast emerging field of study on the relationship between corporate entrepreneurship and financial performance by focusing on corporate wealth gains from joint venturing with other firms in pursuit of entrepreneurial goals

some factors affecting mobility in the labor market for academic economists this study examines the effects of publication geographic preferences and institutional preferences on the mobility of academic economists during the period 1955 69 using a sample of 3813 economists who published at least one article during this period the analysis indicates that publications do promote upward mobility but to a limited extent the number of publications rather than their quality promotes mobility but movement occurs primarily within well defined geographic regions the market for academic economists appears to be strongly segmented along geographic lines moves within geographic regions tend to be to departments of equal or lesser prestige than the department from which the individual has moved