bluuebunny/crossref_metadata_2025_split huggingface dataset:
A mixed‐integer linear programming decision model for aquaculture
Authors: Shaftel Timothy L. , Wilson Beverley M. 
Published: May 2007

AbstractThis paper presents a mathematical model for use in aquaculture, the rearing of aquatic animals in a controlled environment. The model addresses the real‐world strategic planning requirements of an emerging technology as well as the short‐ and long‐term production scheduling requirements of a mature aquaculture facility. A solution procedure for large‐scale problems is described and tested, and an illustrative application is presented.
CEO retention, firm performance and corporate governance
Authors: Fizel John L. , Louie Kenneth K. T. 
Published: May 2007

AbstractThis paper seeks to determine if CEO turnover is a function of firm performance, and therefore attempts to gauge the extent to which CEO interests are aligned with those of stockholders. The methodology in this paper focuses primarily on estimating the relationship between the probability of CEO exit and indices of firm performance and corporate governance structure. A major finding of the paper is that the accountability of CEOs to stockholders is significantly limited by CEO power, and CEO turnover is influenced more by internal governance structure than by firm profit or sales performance.
Strategic groups: Untested assertions and research proposals
Authors: Barney Jay B. , Hoskisson Robert E. 
Published: May 2007

AbstractStrategic group theory has become a popular tool for analyzing competitive structure of industries. Indeed, testing for the existence of strategic groups, and the impact of strategic groups on a firm's performance, has become one of the dominant areas of empirical research in the strategic management literature. Unfortunately, the impact of this stream of research will be limited until some fundamental assertions in strategic groups theory are tested. Two of these assertions are: (1) that strategic groups exist and (2) that a firm's performance depends upon strategic group membership. These key assertions in strategic group theory remain untested for a variety of theoretical and empirical reasons. What needs to be done to test these assertions is discussed. Until these tests are complete, the contribution of the strategic groups concept will be unclear. If these tests do not build credibility for the concept of strategic groups, it may be necessary to abandon this concept and develop models where the strategically relevant attributes of firms are those that are idiosyncratic.
On the balancing of error rates for LP discriminant methods
Authors: Markowski Carol A. 
Published: May 2007

AbstractThis paper reports the results of an experimental comparison between a linear programming (LP) approach and Fisher's linear discriminant function (FLDF) for solving discriminant analysis problems. In particular, we examine the two‐group, two‐variable problem and the associated error rates for the two groups when each of the models is applied to various sets of simulated data. In contrast to previous research, we concentrate on individual error rates for the two groups, i.e. we count the number of group 1 values classified into group 2 and the number of group 2 values classified into group 1. The results indicate that not only is FLDF better at overall classification but it also provides a much better balance between error rates for the two groups.
A dynamic almost ideal demand system incorporating consumer expectations
Authors: Taube Paul M. , Macdonald Don N. 
Published: May 2007

AbstractIn this paper a theoretical framework is presented for the analysis of the effects of psychological, perceptual or expectational factors on household expenditure within a complete demand system. The model was estimated using the Consumer Sentiment Index, which represents an index of consumer perceptions of economic conditions. Evidence was found for significant expectational effects on five of nine expenditure categories—food at home, alcohol, housing, durables and other services. The direct expectation effects were found to be small in size. The results demonstrate the model's potential usefulness as a framework for modelling consumer behavioral responses to expectations and for evaluating the welfare implications of policy‐induced changes in expectations.
Matching the characteristics of a service to the preferences of customers
Authors: Reed G. V. , Binks M. R. , Ennew C. T. 
Published: May 2007

AbstractThe central task of any market‐oriented firm is to ensure that its product provides a mix of attributes that is consistent with the preferences of its customers. Attempts to measure the extent to which products meet consumer needs are often fraught with difficulties associated with eliciting and analysing the responses. We propose a simple index that can be applied to ordinal or cardinal data and will provide a convenient summary of the extent to which a product meets consumer expectations. The index, though simple, is shown to be robust, and is applied to the problem of analyzing the quality of banking services provided to small firms in the UK.
The coupon‐induced tax clientele effect in bond prices
Authors: Gay Gerald D, , Kim Seokchin 
Published: May 2007

AbstractA pricing model for default‐free bonds under differentia! taxation of coupon income and capital gains is presented which explicitly considers coupon‐induced tax clienteles. Subsequent analysis provides indirect evidence in support of the existence of the coupon‐induced tax clientele effect, while direct evidence is provided by analyzing differences in marginal tax rates estimated across different coupon levels for sets of US Treasury bonds with the same maturity date. The results are also generally consistent with the traditional notion that marginal tax rates are inversely related to coupon levels.
Corporate takeovers, stockholder returns and executive rewards
Authors: Firth Michael 
Published: May 2007

AbstractVarious motives for making corporate acquisitions have been forwarded in the managerial economics literature. Two that have received a lot of attention are the maximization of stockholder wealth and the maximization of senior management's utility. These two alternative views can lead to different acquisition decisions. The paper examines the returns to senior management and the returns to stockholders following corporate takeovers in the United Kingdom. The evidence suggests that if shareholders profit from takeovers then so do the senior' management. Of more interest, however, is the finding that if acquisitions result in a reduction in stock market value for the acquiring firm, their senior management appear to gain. In particular, senior management remuneration increases substantially after an acquisition. This evidence is consistent with the maximization of senior management's utility being an important motive in many corporate‐acquisition decisions.
A systems approach to measuring retail structure in Germany and the Netherlands
Authors: Sybrandy A. , Tuninga R. 
Published: May 2007

AbstractInstitutional studies of retailing have primarily focused on the number and types of retailers to describe retail structure. This study provides an alternative approach to measuring retail structure based on general systems theory. The focus is on the examination of the work performed by retailers. Input‐output tables transformed into trade‐flow tables allow for such a functional approach to the measurement of retail activities in Germany and the Netherlands. This methodology allows for the examination of linkages of the retail sector with other parts of a national economy and provides an important tool for comparative marketing studies. The findings for Germany and the Netherlands are consistent with the marketing channels literature.
The economics of decision making in the new manufacturing firm
Authors: McNamara John R. 
Published: May 2007

AbstractDecision making in a modern manufacturing firm producing a variety of products while meeting order deadlines appears at first to have little basis in the economic Theory of the Firm. It is shown that optimal budget allocations, the fractions of revenue expended on inputs, are likely to remain constant for a succession of orders for each of a family of products, thus simplifying the decision process. Well‐known heuristic decision rules may not only have a sound basis in economic theory but are evidently the best way to incorporate economic logic into a stream of fast‐moving decisions. The discussion is extended to an explanation of the economic value of decision making to the firm, and why this value is usually assumed to be zero in theory.
The concept of strategic groups: Theoretical construct or analytical convenience
Authors: Tang Ming‐Je , Thomas Howard 
Published: May 2007

AbstractDespite the fact that a great deal of empirical research confirms the existence of strategic groups, not enough attention has been paid to their theoretical development. This paper links the theories of spatial competition and cognitive taxonomy to the very existence of strategic groups in a competitive environment. It is shown that the concept of strategic groups is not an analytical convenience but a theoretical construct.
A mechanism for reducing small‐business customer waiting‐line dissatisfaction
Authors: Martin G. E. , Grahn Joyce L. , Pankoff Lyn D. , Madeo Laurence A. 
Published: May 2007

AbstractThis paper presents a technique whereby a small business (i.e. a one‐cash register operation) can reduce customer waiting‐line time dissatisfaction in the purchase stage of the consumer decision process. When the queue length reaches or exceeds critical value N*, another employee is temporarily transferred to the role of ‘server assistant’ to increase the effective service rate; when the queue length eventually decreases to a second critical value N*, the server assistant returns to primary duties. An optimal customer‐reneging decision model is utilized to model the reneging character of the queue. Simulation experiments confirm key hypotheses concerning the behaviour of the queue and compare the effectiveness of a computed (N*, N*) policy with that of alternatives.
LIFO adoption and dividend payout
Authors: Kim Jeong Youn , Ettredge Michael 
Published: May 2007

AbstractAdoption of the LIFO inventory costing method tends to decrease reported earnings but increases cash flows to adopting firms. This study examines the change in dividend payout ratios (cash dividends divided by earnings) accompanying LIFO adoption. The question addressed is whether adopting firms likely paid out incremental cash flows or retained them to the benefit of management. The evidence suggests that managers and directors adjusted payout ratios to partially offset the negative earnings effect of LIFO. The adjustments made were not sufficient in magnitude to achieve a neutral LIFO effect on dividend payout, and the net result was the retention of incremental cash flows generated by LIFO adoption.
Corporate growth, corporate strategy, and the choice of capital structure
Authors: Kracaw William A. , Lewellen Wilbur G. , Woo Carolyn Y. 
Published: May 2007

AbstractThe interaction between a firm's strategic decisions and its financial policies has become an increasingly frequent topic in the managerial economics literature. We examine here a dimension of that interaction that has not previously been addressed, and suggest a new framework for defining the manner in which choices of strategy and choices of capital structure might be jointly determined, in an environment where upward pressures on factor costs and product prices are the norm.
An analysis of foreign takeovers in the United States
Authors: Wayne M. Marr , Mohta Sanjeev , Spivey Michael F. 
Published: May 2007

AbstractUsing a sample of 96 US companies taken over by foreign companies during the period 1975‐87, we assess foreign takeovers in two stages: pre‐takeover and takeover. We find evidence that foreign firms target US firms whose operations are related to their own operations and that have low market‐to‐book ratios, suggesting foreign bidders acquire firms that provide a greater opportunity for market entry and synergistic gains. The synergistic gains appear to result from the foreign buyer using its own intangible assets (e.g. managerial skills) to improve the target. We also find that foreign takeover activity is aimed primarily at US industries that themselves make high levels of foreign direct investments, implying that the bidders use takeovers as a quick way to counteract rival firms' moves. We find evidence that foreign takeovers take place in relatively mature, low‐growth industries and that foreign targets are, on average, smaller than the non‐targets. The wealth effect on the announcement of a takeover is significantly higher for foreign takeovers than for takeovers by domestic firms. Also, we find that foreign bidders pay a slightly higher premium for targets whose operations are related to their own.
Managerial incentives and corporate control auctions
Authors: Banerjee Ajeyo , Owers James E. 
Published: May 2007

AbstractAn analysis of the sequence of bidding in corporate control contests involving white knights reveals a category of white knights termed as ‘delayed bid’ white knights who make their bid after two consecutive hostile bids. The ‘immediate bid’ white knights make their bid in relative haste after the first hostile bid. Overpayments by white knights are much larger for the ‘immediate bid’ white knights. An analysis of the respective compensation packages shows that the managers of the ‘immediate bid’ white knights have a lower proportion of their income linked to stock value (relative to their annual cash income) compared to ‘delayed bid’ white knights and hostile bidders.
Pricing currency options with scheduled and unscheduled announcement effects on volatility
Authors: Abraham Abraham , Taylor William M. 
Published: May 2007

AbstractIt is well documented that exchange rate volatility is time‐varying and that it can be affected by scheduled events such as money supply announcements and unscheduled ones such as spot market interventions and interest rate changes. This study provides a European event model (E model) for currency call options that explicitly addresses the volatility effects of these two classes of events. Managers who are concerned with hedging in an environment of changing volatility may find the E model useful. The E and modified Black‐Scholes (MBS) models have similar average errors in predicting option price changes across event windows and do better than a naive no‐change prediction. The E model tends to reduce the underpricing of convex, short‐term out‐of‐the‐money options and the mispricing of most classes of convex options.
The co‐operative nature of the firm: Narrative
Authors: Ichiishi Tatsuro 
Published: May 2007

AbstractThe theory of the firm views the firm as an organization characterized by (1) diversity of (and, most likely, conflict among) the interests of its members and (2) in spite of such diversity, the member's acceptance of a co‐ordinated choice of activities. A firm is a coalition formed when people play a co‐operative game, and this co‐operative game is the firm‐specific resource allocation mechanism. The theory includes: study of a descriptive general equilibrium model which embodies both the co‐operative game (for allocation of human resources, in particular for formation of firms) and the neoclassical market mechanism (for allocation of non‐human resources); its welfare implications; study of a normative mechanism to implement Pareto optimality in the presence of increasing returns to scale; and characterizations of the coalitionally stable hierarchical structures in a firm in a partial equilibrium setup.
The role of information in profit‐maximizing and labor‐managed duopoly models
Authors: Sakai Yasuhiro 
Published: May 2007

AbstractThis paper analyzes the welfare implications of acquiring information for profit‐maximizing and labor‐managed duopolies. We invent a unified method of exploring the role of information in a two‐person game under uncertainty on the basis of comparative static analysis, and then apply the method to both the PMF and the LMF. It is shown that whereas the LMF's behavior is analogous to that of the PMF twin in some circumstances, the former may be entirely different from the latter in others. Because a special status is accorded to labor as a variable factor of production, the informational analysis of the LM economy requires special care for both computations and interpretations.
Firm‐strategic behavior with industry‐demand externalities
Authors: Hula David G. 
Published: May 2007

AbstractThis paper investigates the effects of industry‐demand externalities on the firm's strategic decision making, with an industry‐demand externality being defined as a change in industry demand resulting from the efforts of a particular firm to develop, advertise or price a particular product. Profit‐maximization models of the firm's strategic behavior that incorporate industry‐demand externalities created by a particular firm and the competitive responses of its rivals reveal that the presence of such an externality serves as an incentive for the firm to engage in the form of strategic behavior that generates the externality.
Incentives and revenue sharing in college football: Spreading the wealth or giving away the game?
Authors: Brown Robert W. 
Published: May 2007

AbstractThe incentive mechanism literature is mostly theoretical since data limitations typically prohibit the testing of predictions. This paper offers an empirical study of the relationship between incentives and economic performance as applied to conference revenue sharing in college football. Revenue sharing acts as a disincentive to build a stronger team since the pecuniary rewards of team success are diminished if a team must share these rewards with conference opponents. This proposition is tested using data on team performance and revenue sharing rules in Division I‐A college football. The results confirm the main theoretical proposition – conferences which share more, tend to be weaker.
Asset specificity, capital intensity and capital structure: An empirical test
Authors: Harris Frederick H. Deb 
Published: May 2007

AbstractCapital investment and capital financing decisions interact. To resolve current controversies in investment‐leverage‐growth relationships requires an integrated industrial organization/financial economics empirical model of profit margins, capital investment intensity, leverage and risk. Using cumulative future losses in discontinued operations to measure the asset specificity of the firm's investments, empiricai results support a complementary (positive) relationship between debt and investment, the debt financing of verifiable contemporaneous growth, equity financing of future growth and the debt financing of specific assets. This evidence rejects the transactions cost theory of capital structure in Fortune 500 firms.
Wealth effects of food and drug administration (FDA) decisions
Authors: Bosch Jean‐Claude , Lee Insup 
Published: May 2007

AbstractGovernment regulations are an increasingly important component of the environment in which firms operate. Regulations may subject firms to large costs and possibly regulatory‐induced risks, both of which may have effects on stockholders' wealth. In this paper we investigate the valuation effects of Food and Drug Administration (FDA) product approvals, rejections and disciplinary decisions on the firms that operate in the food and drug industries. We find that FDA decisions have very large wealth effects. The large price changes associated with approval and rejection decisions suggest that a significant amount of uncertainty about FDA decisions is present almost up to the announcement day. These results are somewhat surprising given the lengthy period of time involved in developing and reviewing drugs and the continuous flow of information received by the market about their potential. We also find some evidence of information leaks preceding FDA announcements. With respect to disciplinary decisions, the evidence from the data suggests that stockholders experience large losses associated with FDA actions. Since these losses represent lost stream of future illegal income, it appears that ignoring FDA rules may be quite profitable for firms that are not caught.
Optimal decisions in foreign exchange bidding markets
Authors: Tenorio Rafael 
Published: May 2007

AbstractI characterize optimal bidding decisions in bidding markets where each agent does not perceive she can significantly affect the market outcome. Using a foreign exchange bidding framework to provide a micro‐foundation for the shape of a bidder's payoff function, I show that (1) in a discriminatory auction a bidder bids for a price that equals the value of the marginal product of her bid quantity, and (2) in a competitive auction a bidder bids for a price that equals the value of the average product of her bid quantity. An example illustrates the comparative properties of these solutions.
Interpreting inefficiency ratings: An application of bank branch operating efficiencies
Authors: Haag Stephen E. , Jaska Patrick V. 
Published: May 2007

AbstractData Envelopment Analysis is an analytical tool for evaluating the relative technical efficiency of a set of organizations with the same multiple inputs and outputs. This paper examines the correct interpretation of inefficiency scores in the Additive model of Data Envelopment Analysis. A contrived numerical example is offered to demonstrate that certain computational statements appearing in recent literature are not entirely correct. As rectification, a region of stability is defined that identifies sufficient conditions for altering a technical inefficiency classification to that of technical efficiency. Finally, this region of stability technique is applied to bank branch operating efficiencies to demonstrate managerial interpretations and policy implications.
So, how long have you been in the market? The effect of the timing of observation on purchase
Authors: Putsis William P. , Srinivasan Narasimhan 
Published: May 2007

AbstractConcentrating on the duration of the purchase deliberation process, we set out to address the following two questions: (1) Given that an individual is at a certain point in the deliberation process, what factors affect the likelihood of purchase? (2) Do the factors affecting purchase vary with the duration of the deliberation process? An empirical analysis of new car purchase survey data suggests that there are in fact significant differences at different stages of the deliberation process. Considerable differences are also found between those individuals who trade in a vehicle and those who do not.
Litigation costs and the underpricing of initial public offerings
Authors: Hensler Douglas A. 
Published: May 2007

AbstractThis paper examines a risk‐averse entrepreneur's motivation to underprice an initial public offering of equity where the entrepreneur faces the threat of litigation by outside investors. Outside investors have an incentive to seek compensation via tort law and the Securities Act of 1933 should the stock price fall subsequent to their purchase of the IPO. Potential litigation costs motivate the entrepreneur to underprice the IPO in a tradeoff between the litigation cost and the up‐front opportunity loss of underpricing. In a single‐period model, this paper formalizes the entrepreneur's pricing and retained ownership decisions resulting in ten testable hypotheses.