bluuebunny/crossref_metadata_2025_split huggingface dataset:
Price adjustment and market structure: A single‐industry study
Authors: Thompson R. S. 
Published: May 2007

AbstractThe administered price hypothesis of Gardnier Means has continued to attract a great deal of empirical attention. Unfortunately, the results of all this research have not been consistent. The present paper tries to circumvent the usual empirical difficulties by using a lagged adjustment model for a single industry with geographically separate markets. It examines the rate of price adjustment and the frequency of price changes for newspaper advertising rates for a sample of local papers in Ireland. Adjustment equations are run for each newspaper using labour and materials cost indices as explanatory variables. The partial adjustment coefficient estimates are then related to market structure and firm specific characteristics.
Concentration, subcontract and exports in Japanese Manufacturing Industries
Authors: Doi Noriyuki 
Published: May 2007

AbstractThis paper examines the effects of industrial concentration, subcontract and other control variables on export behavior in Japan's manufacturing industry for 1976–80. The primary findings are: (1) concentration has a positive and significant impact on exports; (2) subcontract has a positive and significant effect on exports; (3) research and development activity has no impact on exports.
Incorporating disounted cash flow contours onto a bcg portfolio matrix using limit pricing
Authors: Marshall Paul , Tomkins Cyril 
Published: May 2007

AbstractLittle or no attempt has been made to integrate the tools of financial investment appraisal with that of corporate strategy, despite the centrality of both of these disciplines in corporate resource allocation. This paper offers one approach which sets out, through a computer model, to explore the location of DCF values on a strategic portfolio matrix. The modelling took the BCG matrix as the basis of its text together with BCG's own assumption. It was found that the resulting DCF contours suggests a different emphasis compared with BCG's investment advice based on the matrix. The authors do not pretend, however, that the model provided is an immediate, more rigorous, solution to practical strategic analysis. Nor do they argue that the BCG advice may not be appropriate under a wider set of assumptions. The model is offered as suggesting one direction in which work might be conducted in order to link financial investment appraisal with strategic analysis portfolios in order gradually to convert the very general advice usually offered by the use of such matrices to a more precise form.
Management bonus plans in a multiple‐agent environment
Authors: Callen Jeffrey L. 
Published: May 2007

AbstractThis paper analyses optimal linear incentive contracts in a single‐principal multiple‐agent setting. It is proved that the second‐best share ratios are function of the other agents' effort levels as well their degrees of risk aversion and the risk aversion of the principal. It is also shown that the total bonus pool to all agents in a difficult to monitor (decentralized) firm is greater than the total bonus pool in a easier to monitor (centralized) firm.
The measurement of productive efficiency: A robust minimax approach
Authors: Sengupta Jati K. 
Published: May 2007

AbstractSome applied aspects of robustness are formulated and empirically tested so as to generalize the Farrell efficiency measure for the frontier production function. A minimax method is used to develop a Chebyshev efficiency measure along with a stochastic production frontier. The relative insensitivity of such a measure in respect of sample size variations and outliers are illustrated by an empirical application to educational production functions.
Two managerial economics approaches to the R&D decision process
Authors: Mehrez Abraham 
Published: May 2007

AbstractIn this paper we present two different approaches that analyze the effects of rivals on the R&D decision process. The first approach assumes that the introduction time of the new product is uncertain to the manager. Given this assumption, the problem is analyzed in a framework similar to the one suggested by Kamien and Schwartz (1972). The second approch assumes technical certainty to study a set of models that extends and supports different views in the managerial economics literature regarding the properties of the R&D decision process from both private and social points of view.
Diversification versus co‐operation in R&D investment
Authors: Scott John T. 
Published: May 2007

AbstractComparison of the diversification of R&D in the mid‐1970s with the mid‐1980s co‐operative R&D that is protected by the National Co‐operative Research Act of 1984 (NCRA) shows that multi‐industry research coalitions seem to substitute for multi‐industry firms exploiting R&D spillovers. Diversification by individual firms and co‐operation among them can both increase appropriability, but the co‐operative R&D sacrifices competition that is present with diversification alone. The evidence suggests that diversification in the absence of the NCRA may have carried innovative investment toward the social optimum, while the effect of the law may well be to reduce investment and take us away from the social optimum.
The role of demographic factors in interest rate forecasting
Authors: McMillan Henry , Baesel Jerome B. 
Published: May 2007

AbstractSlowly moving fundamental time series can be mistaken for time trends. Use of this series can increase credibility of medium‐term and long‐term forecasts. This paper introduces a new slowly moving fundamental time series—the age distribution of the US population—to explain trends in real US interest rates over the past 35 years. We argue that lifecycle consumption patterns at the individual level can influence aggregate saving and real interest rates. Empirical evidence is presented that supports the relationship between age distribution and expected real interest rates. Simulations of future interest rates are developed.
Optimal production and portfolio investment decisions
Authors: Landskroner Yoram 
Published: May 2007

AbstractThis paper takes a further step towards the integration of the theories of production and finance under uncertainty. It sets up a continuous time‐diffusion process model of production by firms and portfolio investment by individuals and provides a simultaneous solution to these two decisions. The derived equilibrium conditions, being in the stockholders' interest, are specific in form, and are determined by two factors: attitudes of investors towards risk and the systematic risks of the firm.
The structure of british industry's sales in foreign markets
Authors: Buckley Peter J. , Prescott Kate 
Published: May 2007

AbstractThe structure of British industry's foreign sales is analysed by its principal components: exports, sales arising from licenses issued abroad and the output from facilities financed by British foreign direct investment. Total foreign sales are analysed by industry and by foreign market and differences in structure on both these dimensions are considerable. The literature is analysed in order to determine a preliminary set of variables which explain the structure at this highly aggregated level. Examination of the data allows us to focus on the most important explanatory variables, which include exchange rates, government policies and supply and demand factors.
The liquidation/merger alternative some results for the UK corporate sector
Authors: Peel M. J. , Wilson N. 
Published: May 2007

AbstractPrevious researchers have explicitly extended the definition of corporate failure to include distressed acquired firms when they are (mis) classified by statistical models as failing. We argue that this approach is erroneous, since the acquisition of a financially distressed firm is an entirely separate economic outcome from corporate failure. This paper reports some new evidence for the UK corporate sector where the acquisition of a distressed firm is modelled as a distinct alternative to corporate failure. Our empirical results suggest that it is feasible to develop statistical models which are able to discriminate, with a reasonably high degree of accuracy, between those distressed firms which fail and those where a timely merger appears to serve as a viable alternative to corporate bankruptcy.
The determinants of wagering behavior
Authors: Degennaro Ramon P. 
Published: May 2007

AbstractThe total volume of wagering at a racetrack is important since it affects both racetrack and state revenues. This paper studies the factors that determine the volume of wagering. One of these factors is the sire stakes, a major form of government subsidy. We conclude that this subsidy has little or no economic impact on the volume of wagers. Unless the state recoups nearly all of the subsidy in other ways, such as sales taxes on racehorses, the sire stakes amount to a direct transfer from taxpayers to the breeding industry. We also develop information useful to racetrack managers.
Alternative measures of rates of return: Some empirical evidence
Authors: Bosch J. C. 
Published: May 2007

AbstractFirm profitability is measured in most cases by an accounting rather than by the theoretically superior economic (or internal) rate of return. This paper explores the relationship between accounting and internal rates of return using COMPUSTAT data for 1013 large industrial firms over a 20‐year period. The research was motivated by the controversy ongoing between scholars concerning the validity of the accounting rate of return as a proxy for economic profit. The method used in this paper is different from previous research in that cash flow profiles are estimated instead of being assumed. The results, while generally supporting the contention that accounting rates of return are poor proxies for underlying economic rates of return, also provide evidence that the distortions are not so great as to render them useless for performance measurement and managerial decision‐making purposes.
Transfer pricing: Technical and productivity change within the firm
Authors: Tisdell C. A. 
Published: May 2007

AbstractUse of transfer prices is regarded by many writers as an efficient means of management of multidivisional firms. Its use in effect creates an internal market for the firm. However, its value as a management technique isknown to be subject to a number of limitations of the type discussed in the general economic theory of market failure. Nevertheless, two important limitations of transfer pricing have been neglected in the literature: (1) imputed profit/loss based on optimal transfer prices can be a poor guide to the economic value of a division to a firm when market transaction costs are important (for instance, even if a division shows an imputed loss, it may not be optimal to dispose of it), and (2) transfer pricing can retard technical change, innovation and productivity enhancement within a division to the detriment of the firm as a whole. Both aspects are examined here.
Inventory management under uncertainty: A financial theory for the transactions motive
Authors: Kim Yong H. , Chung Kee H. 
Published: May 2007

AbstractThis paper examines the effects of risk aversion and output market uncertainty on optimal inventory policy decisions for a transactions demand for inventory using the capital asset pricing theory. The paper shows that (1) the optimal order quantity of the risk‐adjusted value‐maximizing firm is smaller than that of the expected‐profit‐maximizing one and (2) the greater the firm's output market uncertainty, the smaller its optimal order quantity, where the output market uncertainty is defined as the relative volatility of the demand for the firm's output.
The demand for retailer‐financed instalment credit: An econometric analysis
Authors: Crook Jonathan 
Published: May 2007

AbstractDuring the mid‐ to late 1980s the UK's Chancellor of the Exchequer has attempted to reduce the volume of consumer credit extended by increasing interest rates rather than by re‐introducing terms controls. This paper presents estimates of demand functions for new credit extended by retailers which was financed by them and repaid by instalments. Following earlier papers, a stock‐adjustment model is presented that is extended to allow for credit rationing. The results suggest that the demand for such new credit extended is related negatively to terms control and positively to personal disposable income and expectations. Demand was not found to be related to (a proxy for) the nominal interest rate charged by retailers (although it was found to be positively related to the real rate). The former finding is consistent with questionnaire evidence that consumers are unaware of the interest rate that they pay for credit. Elasticities of demand are presented.
New evidence on predatory price cutting
Authors: Burns Malcolm R. 
Published: May 2007

AbstractThis paper presents new evidence on predatory price cutting as a monopolization strategy. The evidence consists primarily of what appear to be repeated expressions of predatory intent in business letters exchanged between senior officers of the old Tobacco Trust. These letters come from the trial records of United States v. American Tobacco Co., 221 US 106 (1911). Although they are not entirely free of ambiguity, the tobacco letters are remarkably candid and very interesting.
New product introduction under demand uncertainty in competitive industries
Authors: Chatterjee Rabikar , Sugita Yoshi 
Published: May 2007

AbstractA game‐theoretic model is employed to examine the conditions under which firms in a duopoly, faced with a new product introduction opportunity of uncertain profitability (because of uncertainty in demand), choose to enter the market immediately or, alternatively, decide to wait, thereby avoiding the risk of failure. The implications for a firm's strategic behavior are contrasted with situations in which the competitor is believed to be (1) passive, implying that the firm expects to enjoy indefinite monopoly status if it introduces the new product, and (2) committed to a waiting strategy, implying monopoly status for a limited time period, if the new product is successful.
Corporate debt, corporate taxes and leasing
Authors: Bayless Mark E. , Diltz J. David 
Published: May 2007

AbstractThis paper utilizes recent developments in capital lease modeling to develop a new specification of the relationship between the expected returns to debt, levered equity and unlevered equity for firms that lease a portion of their assets. Accounting explicitly for leases is shown to be important when the difference between equity and debt risk is large, when the risk of leased assets differs from the firm's other assets and when salvage value is a significant portion of the capitalized value of the firm's lease obligations. This new specification yields improved estimates of firms' unlevered cost of capital, thereby facilitating improved capital budgeting decisions in those that lease a significant portion of their assets.
A Method for the estimation of limit prices without entry data
Authors: Shaanan Joseph 
Published: May 2007

AbstractEstimates of limit pricing values are useful to researchers studying princing strategies and oligopolistic behavior. Previous studies have demonstrated that limit prices (profits) can be estimated with the use of data on the entry of new firms. Unfortunately, entry data are scarce. The current study presents a methodology based on a property of dynamic‐stochastic theories of limit pricing wherein limit prices can be estimated without entry data. This methodology requires the use of price elasticity of demand values which are more readily available than entry data. Following the methodology section, an application of this method is presented with a cross‐section sample of consumer goods industries.
Towards a managerially specific (MS) framework for bank capital adequacy
Authors: Gardener E. P. M. 
Published: May 2007

AbstractThe stock market crash of 1987 and continuing Third World debt problems are among the factors that have re‐emphasized the importance of bank capital adequacy. The contemporary academic literature, however, seems to provide limited practical help for banks in this important decision area. This study develops a strategic framework for the appraisal of capital adequacy within the banking firm. It is suggested as a suitable practical way of overcoming the uncertainty problems for which bank capital adequacy is alleged to exist.
Shareholder gains from callable‐bond refundings
Authors: Emery Douglas R. , Lewellen Wilbur G. 
Published: May 2007

AbstractA re‐examination indicates that current procedures for measuring the benefit realized by shareholders when a firm calls and refunds an outstanding debt obligation are mis‐specified. The key to a proper measurement is found to lie in the identification of the extinguished remaining‐time‐to‐maturity value of the exercised option on the called debt. A simple procedure for assessing that value is provided and incorporated into a corrected measure of the gains from a callable‐bond refunding.
A study of production decisions under extreme uncertainty in the wood products industry
Authors: Vertinsky Ilan , Kira Dennis , Kanetkar Vinay 
Published: May 2007

AbstractManagement under uncertainty has posed economists with the most important conceptual challenge to their basic models of profit maximization. This paper investigates firms' behavior under conditions of extreme uncertainty in the wood products industry of British Columbia. The investigation compares the predictive powers of models developed on the basis of empirical research of how firms decide “in fact” (behavioral models) and models derived from the assumption that firms behave “as if” they maximize profits. The paper lends support to the claim that firms are adaptive organisms and tend to behave as if they maximize profits.
Vertical integration: A comparative analysis of performance and risk
Authors: Reed Richard , Fronmueller Michael P. 
Published: May 2007

AbstractHofer's (1973) argument for strategy analysis by matched pairs forms a central methodological feature in this examination of vertical integration. With twenty matched pairs of companies we have sought to eliminate the major extraneous factors that have precluded consensus among previous research findings. Our results show that vertical integration (via whole ownership) is performance and risk‐neutral. Support is generated for the fundamental notion that successful strategy selection, and subsequent performance, is a function of firm‐specific competencies and opportunities. Consequently, we urge that research on vertical integration move forward to consider ex ante conditions of fit rather than continuing to pursue ex post rationalizations of performance and risk.
Survey of mathematical programming models and experimental results for linear discriminant analysis
Authors: Erenguc S. Selcuk , Koehler Gary J. 
Published: May 2007

AbstractThe mathematical programming approach to linear disciminant analysis was first introduced in the early 1980's. Since then, numerous mathematical programming models have appeared in the literature. Some of these models were merely formulated while others were subjected to experimentation, in some cases rather extensively. The purpose of this paper is to present a unified survey of these models and their experimental results where applicable. Some mathematical programming (MP) models, unfortunately, have certain pathologies inherent in their structure which puts the degree of usefulness of these models in doubt. When known, such pathologies are also identified for the specific model in question.
A robust methodology for discriminant analysis based on least‐absolute‐value estimation
Authors: Glorfeld Louis W. 
Published: May 2007

AbstractMany important real‐world discriminant problems require application of linear discriminant analysis to data that are contaminated with outliers and do not approximate the assumptions required for the near‐optimal performance of the standard statistical model. A robust diagnostic methodology is developed based on least‐absolute‐value estimation which addresses both descriptive and classification objectives of discriminant analysis. When used in conjunction with standard discriminant analysis this methodology allows the assessment of the impact of contamination on standard discriminant analysis and identification of possible assumption violations and contaminating data points through an informal graphical display. An application to the mortgage loan‐granting problem is used as a basis for demonstrating the methodology.
International competitiveness of japanese manufacturing
Authors: Daly Donald J. 
Published: May 2007

AbstractThis paper deals with the effect of corporate management practices on the efficiency of Japanese manufacturing and their international trade performance. It also looks at the relative cost position in comparison with the major industrialized countries. Such cost comparisons reflect changes in productivity performance, inflation and exchange rate changes that have been so marked that the United States has become the lowest‐cost producer of manufactured products recently for the first time in the post‐war period. Some effects of these changes on the trade and balance of payments positions of Japan in relation to North America are outlined. The paper includes data for selected years from 1950 to 1988 for real GDP per employed person, real output per hour for manufacturing, and unit labour costs for manufacturing for the United States, Japan, Canada and six of the major European countries.
The growth in the Japanese stock market, 1949–90 and prospects for the future
Authors: Ziemba William T. , Schwartz Sandra L. 
Published: May 2007

AbstractThis paper surveys the growth in size and value of the Japanese stock market from its post‐Second World War reopening until the end of 1990. The rise has been spectacular, but there have been many declines along the way. These are discussed along with the close relationship between land and stock prices. The paper concludes with an assessment of the current situation and prospects for the short and long term.
Managerial evaluation of exogenous forecast sources
Authors: Lawrence David B. 
Published: May 2007

AbstractThis paper concerns the managerial evaluation of forecast vendors—individuals or firms offering for sale future forecasts of random variables relevant to managerial decision making. Assuming the forecasts are exogenous in the sense they are generated by a methodology unknown or unproven to management, the paper uses a logistic regression model to present a statistical test for informativeness that allows for an interpretation of the vendor's abilities. The advantage of the approach is that it requires as input only knowledge of the unconditional probability distribution of the variable being forecast and a relatively small historical track record of the vendor's forecasting performance. No benchmark forecast is necessary and few assumptions are required about the statistical process that generates the forecasts. As an illustrative empirical application, the paper presents an evaluation of the informativeness of the published long‐range price forecasts by a veteran analyst of the Iowa hog market.
Managerial intensity, firm size and growth
Authors: Gander James P. 
Published: May 2007

AbstractThirty years ago Edith Penrose proposed that managerial resources will grow at a rate somewhat faster than that of the size of the firm. With available data, the Penrose Hypothesis and an alternative steady‐state hypothesis are tested, using simple econometric models involving managerial intensity, firm (industry) size and growth. The steady‐state hypothesis is accepted for the recent data and the Penrose Hypothesis is accepted for the earlier data. Policy issues are then discussed.