bluuebunny/crossref_metadata_2025_split huggingface dataset:
MNE competitiveness: A scenario‐driven technology transfer construct
Authors: Georgantzas Nicholas C. 
Published: May 2007

AbstractTo compete effectively, multi‐national enterprises (MNEs) must establish market presence in their global rivals' home courts and/or profit sanctuaries. Technology transfer is often used as a means toward that end. The technology adoption decisions of an aggressor MNE and a defender MNE are investigated in a model that features indirect moves and changes in strategy through technology transfer. Each firm may adopt a strategy that incorporates the transfer of high technology or appropriate technology. The strategic decision situation is modelled as a closed‐loop sequential equilibrium in discrete time. In contrast to results in the technology adoption literature, the aggressor MNE may successfully transfer technology first, to be imitated later by the defender MNE. This and several other scenarios emerge from the model which, by incorporating the cost of social adjustment and risks involved in technology transfer, ties technology to the competitive interaction of MNEs and specifies conditions for creating competitive advantage through technology, both locally and worldwide.
Postauditing capital assets and firm performance: An empirical investigation
Authors: Myers Mary D. , Gordon Lawrence A. , Hamer Michelle M. 
Published: May 2007

AbstractThe argument presented in this paper is that the adoption of sophisticated postaudit procedures should be associated with improved firm performance. Based on a matched‐pair experimental design, utilizing the Wilcoxon matched‐pairs signed‐ranks test and a newly developed statistic to test for a change point, empirical evidence is provided to support this argument.
A closed‐form expression for the net present value of a time‐power cash‐flow function
Authors: Grubbström Robert W. 
Published: May 2007

AbstractPrevious work has shown how Laplace Transform Theory and z‐Transform Theory may be used in Net Present Value Analysis. A closed‐form expression is easily derived for a continuous cash flow tk, where t denotes time and k is a positive integer. In the corresponding discrete case, explicit expressions have only been provided for k 10. In this article we derive a closed‐form formula for the missing general case when k is an arbitrary non‐negative integer. As a byproduct, we also obtain a closed‐form expression for the z‐transform of such a power series.
Analysts' utilization of historical earnings information
Authors: Lobo Gerald J. , Nair R. D. 
Published: May 2007

AbstractThis study examines whether security analysts (in)efficiently utilize the information contained in past series of annual and quarterly earnings in producing earnings forecasts. To do so, it investigates whether equal‐weighted combinations of security analysts' forecasts with forecasts from statistical models based on historical earnings are superior, both in terms of being a better surrogate for the market's expectations of earnings and of accuracy, to forecasts from either one of these two sources. The empirical findings indicate that, although analysts' forecasts are superior to forecasts from statistical models, performance can be improved—both in terms of accuracy and also of being a better surrogate for market earnings expectations—by combining analysts' forecasts with forecasts from statistical models based on past quarterly earnings. Improvements in proxying for market earnings expectations were obtained even when analysts' forecasts made in June of the forecast year were used in the combinations. An implication of these findings is that investors can improve their investment decisions by using an average of the mean analysts' forecasts and the forecast produced by a time‐series model of quarterly earnings in their investment decisions.
A billing policy for credit customers
Authors: Stowe John D. , Miller Janis L. 
Published: May 2007

AbstractFirms frequently bill customers on a fixed‐period basis (such as once a month), or on a fixed‐amount basis (whenever the outstanding credit balance reaches a particular amount). We examine here a more flexible procedure, the bill‐or‐carry policy, which uses a simple decision rule and results in lower costs than either the fixed‐period or fixed‐amount procedures. The logic and properties of the bill‐or‐carry policy are compared with those of the fixed‐period and fixed‐amount procedures.
Oligopsony/oligopoly power and factor market performance
Authors: Chang Yang‐Ming , Tremblay Victor J. 
Published: May 2007

AbstractThis paper is concerned with the economic performance of factor markets in an oligopsony/ oligopoly setting. Firm arid industry indexes are developed to measure factor market price distortions caused by exerted oligopsony/oligopoly power. These measures indicate that the elasticity of output demand, the elasticity of input supply, and the input and output conjectural elasticities determine the degree of non‐competitive performance in factor markets. It is also shown that under special conditions the firm index equals the Lerner index and the industry index equals the Herfindahl‐Hirschman index.
Market anticipation of merger activities: An empirical test
Authors: Jayaraman Narayanan , Mandelker Gershon , Shastri Kuldeep 
Published: May 2007

AbstractThis paper empirically examines the possibility that there is leakage of information regarding a merger prior to the announcement of the first bid for the target firm. The tests for the existence of market anticipation are based on the behavior of variances implied in the premia of call options listed on the target firms' stocks. We conclude that the evidence is consistent with the hypothesis that the market anticipates an acquisition prior to the first announcement.
Debt, lock‐in assets and corporate restructuring
Authors: Ang James S. 
Published: May 2007

AbstractWhy do some firms refuse to sell assets that are worth more to another firm? This paper shows that the presence of debt could cause anex postoverinvestment agency problem. In contrast to Myers' underinvestment problem, which is concerned with debt and growth assets, the model in this paper analyzes the role of debt and alternate users of assets in place. This type of agency problem is of interest because it is inherently related to the important recent corporate finance phenomenon of restructuring.
An anatomy of the poison pill
Authors: Macminn Richard D. , Cook Douglas O. 
Published: May 2007

AbstractIn this paper the workings of the generic version of the poison pill are investigated. The analysis shows that the poison pill with only a flip‐over provision is ineffective as either an anti‐merger mechanism or an anti‐takeover device. Two antidotes to the flip‐over provision (one of which is well known) are provided here. The analysis further demonstrates that with the inclusion of a flip‐in provision it is possible for the target firm to construct a poison pill right to either increase the tender price and allow the takeover or to eliminate the possibility of a successful hostile tender offer.
An econometric model of a retail firm
Authors: Ratchford Brian T. , Stoops Glenn T. 
Published: May 2007

AbstractExisting models of retail resource allocation generally specify response functions in a somewhat ad hoc manner. These are not usually derived from an explicit model of consumer maximization, and they generally do not explicitly consider the supply side of the market. This paper shows how the model of Ehrlich and Fisher (1982) can be used to provide insights into the proper specification of these functions. We illustrate the application of this model on data from a retail chain; our application extends work in Ratchford and Stoops (1988) to the demand side of the market. Potential areas of application of the model are to understanding the demand for labor and advertising services by consumers, and to the measurement of retail productivity.
Retailer‐manufacturer price and profit relationships along the advertising life cycle: An empirical examination
Authors: Liebermann Yehoshua , Ayal Alex 
Published: May 2007

AbstractCompetitive intra‐channel forces are an important factor to the success (or failure) of newly introduced brands. The present study offers an extended theoretical framework of the advertising life‐cycle concept, which illuminates the changes in the manufacturer‐retailer balance of power within the marketing channel along the development path of new brands. The theoretical conclusions are then tested against a unique data set. The empirical findings confirm the prediction that dynamic competitive elements will change the intra‐channel pricing balance.
A two‐part incentive scheme to implement productive efficiency over time
Authors: Tam M.‐Y. S. , Tam Mo‐Yin S. 
Published: May 2007

AbstractUnder rate‐of‐return regulation the firm is not induced to minimize cost. All the incentive regulatory schemes thus far suggested in the literature have the desirable feature of inducing the firm to do so, but they either require the regulator to have full information about demand or take a number of periods to induce the firm to converge to the optimal output level. Hence they do not work well in the dynamic situation where demand and/or cost changes. In this paper a two‐part negative price incentive scheme is suggested whereby the regulator will implement the subsidy scheme only if the firm charges a price higher than its unit expenditure. This scheme (1) requires limited information for implementation; (2) induces the firm to minimize costs; and (3) under certain situations leads to optimal behavior in one period. More importantly, it will continue to have the above features over time.
Portfolio management using a factor‐analytic stock selection strategy
Authors: Badrinath S. G. , Kini Omesh 
Published: May 2007

AbstractThis study takes an integrated look at six widely documented price‐related CAPM anomaly variables. Using maximum likelihood factor analysis, we extract factors common to these variables. We find that portfolios formed according to the first extracted factor alone exhibit abnormal performance. Further, the performance of firms ranked on the basis of extracted factor scores for this factor is superior to that of firms selected on the basis of any one of the six variables. Our results have implications for (1) isolating missing factors in the CAPM specification and (2) designing dynamic portfolio strategies aimed at jointly exploiting more than one anomaly.
Ownership structure and corporate liquidity policy
Authors: Papaioannou George J. , Strock Elizabeth , Travlos Nickolaos G. 
Published: May 2007

AbstractThis study analyzes the relationship between corporate liquidity (i.e. the fraction of assets invested in cash and marketable securities) and managerial ownership in the firm's stock. We postulate a negative relationship between excess liquidity and managerial stock ownership as the managers' interests shift from protecting the value of their human capital to maximizing the value of their stockholdings. This managerial behavior is constrained by the disciplining forces of the firm's product market structure and the market for corporate control. While the tests fail to reveal any significant impact of managerial stock ownership, they show that firm liquidity is positively related to the firm's ability to earn economic rents.
International joint ventures: Theoretical considerations
Authors: Yu Chwo‐Ming Joseph , Tang Ming‐Je 
Published: May 2007

AbstractThis paper constructs models to investigate the rationale for a multinational corporation to enter into a joint venture to serve a host market. In particular, the model examines the impact of profit sharing, cost reductions, risk reductions, and competition reductions on the profits of international joint ventures. The results may explain the ‘recent’ popularity of international joint ventures. The models show that (1) a joint venture is the dominant entry strategy when there is a formidable local competitor and the risks of operation are high, (2) a wholly owned subsidiary is preferred if a multinational corporation has a significant cost advantage, (3) a joint venture is preferred to a wholly owned subsidiary if significant cost reductions can be achieved through combining the strengths of a multinational corporation and a local firm, and (4) multiple licensing is preferred if the number of local firms is large.
Investment and pricing strategies of competing firms: A computational approach
Authors: Kivijärvi Hannu , Soismaa Margareta 
Published: May 2007

AbstractWe analyze the classical investment and pricing problem of a dominant firm faced with competition from substitute industries or marginal firms in the same field. The firm owns a finite level of a resource (e.g. the stock of an exhaustible one), the consumption of which is to be divided optimally over a finite planning horizon. The competitors' measures affect the demand for the resource towards the dominating firm. Rising crude oil prices and investments in forms of alternative energy are representative examples of the strategic questions which involve competitive and contradictory interests among firms within an industry. The investment and pricing problem can be solved analytically only with strong, simplifying assumptions. To make the analysis simpler and to relax these restrictions, we combine a series of numerical tools, computerize them, and build up a user‐oriented, computerized decision aid, which we call a ‘computerized approach’. We solve the problem under different sets of theoretical assumptions. This chosen incremental theory building allows us to study the theoretical sensitivity of the original problem.
Mutually related firms and the rationality of producing nothing
Authors: Dobson Paul W. 
Published: May 2007

AbstractThis paper considers the pricing and output decisions of firms which are related by the complementary nature of their products. The paper focuses on the problems which may result from non‐co‐operative behaviour of such firms. At the extreme, it is shown that non‐cooperative complementary firms may ‘rationally’ choose to produce nothing. The paper considers the conditions which lead to this market failure result, and whether encouragement by government for the firms to co‐operate or merge is required to make the market operate more efficiently.
Executive compensation, method of payment and abnormal returns to bidding firms at takeover announcements
Authors: Travlos Nickolaos G. , Waegelein James F. 
Published: May 2007

AbstractThis study investigates the association between method of payment, long‐term performance plans, managerial stockholdings and abnormal returns to bidding firms at takeover announcements, using a cross‐sectional regression methodology. Previous studies have examined each of these factors separately. The results indicate that firms with long‐term performance plans and high managerial stockholdings in cash offers experience significantly higher abnormal returns at the announcement of mergers prior to 1980. The study provides additional evidence in explaining the previous conflicting results (Jensen and Ruback, 1985), examining the stock market reaction of bidding firms at merger announcements.
Graphical analysis and financial classification: A case study
Authors: Chatterjee Sangit , Srinivasan Venkat 
Published: May 2007

AbstractThis paper illustrates the use of graphical analysis as a complementary diagnostic tool in financial classification problems. For more than two decades statistical models have been used frequently to understand the information content of multivariate data in the context of financial classification. These statistical classification models can be complemented by the use of computer‐generated multidimensional data displays and graphical analysis. We illustrate the use of the scatterplot matrix, which is the simplest and very effective form of graphical analysis on a sample of bankrupt and non‐bankrupt firms. The paper demonstrates the complementary nature of the scatterplot matrix for tree‐structured classification models.
Some differences between licensed and internalized transfers of machine tool technology: An empirical note
Authors: Davies Howard 
Published: May 2007

AbstractThis note uses survey evidence drawn from the machine tool industry in three countries to identify some of the differences in form between technology transfers which are internalized and those governed by licensing contracts between independent firms. The results show that, consistent with transactions cost theory, the internalized mode of governance leads to the transfer of a much broader range of information and skills than licensed transactions.
Firm value and investment in R&D
Authors: Johnson Lewis D. , Pazderka Bohumir 
Published: May 2007

AbstractThis paper employs Canadian stock market and corporate financial data to test the hypothesis that the market places a positive value on reported research and development spending of firms as an indicator of expected profitability and growth. The empirical results show a positive, statistically significant relationship between R&D spending and market value. The magnitudes of estimated coefficients are consistent with those reported in several published US studies. These results suggest that investment in R&D is a rational allocation of resources, contrary to the undervaluation hypothesis.
Analyzing the underlying dimensions of firm profitability
Authors: Banker Rajiv D. , Chang Hsi‐Hui , Majumdar Sumit K. 
Published: May 2007

AbstractIn this paper we decompose a traditional measure for firm's performance, return on sales, into four components that capture the impact of productivity, price recovery, product mix and capacity utilization, respectively, on a firm's profitability. The new measures are used as an illustration to explain changes in the performance of firms in the US telecommunications industry following deregulation. Changes in the overall profitability margin of these firms are explained by substantial but offsetting changes in their productivity, price recovery ability, product‐mix maximization and capacity utilization, that have occurred as a consequence of deregulation. The new measures enable us not only to illustrate relative differences between firms in a given cross‐section but also to shed light on how changes take place over time in the different components that underlie firms' profitability.
Signalling, financial hierarchy and agency theory as explanations for dividend behaviour: Evidence from Italian firm data
Authors: Sembenelli Alessandro 
Published: May 2007

AbstractStarting from the traditional Lintner model, an asymmetric model of dividend behaviour is derived. It allows both the speed of adjustment and the desired pay‐out structural parameters to vary according to firm‐ and time‐specific economic conditions. The model is then tested on a sample of large Italian quoted and non‐quoted firms. The main result of the econometric testing is that managers adjust more quickly when they have to reduce dividends than when they have to increase them. This finding is not consistent with the traditional view that firms are more reluctant to reduce than to increase dividends because of signalling problems. It is, however, consistent with the existence of a financial hierarchy. If internal sources of funds are cheaper managers will rationally adjust relatively quickly when they have to reduce dividends in order not to cut investment and will adjust relatively slowly when they have to increase them in order to build financial slack. One further interesting result observed is that quoted firms are found to fix a higher pay‐out ratio than non‐quoted firms.
‘Derivative’ firms, agency and economic integration
Authors: Choi Yoon K. , Merville Larry J. 
Published: May 2007

AbstractThis paper proposes a ‘derivative’ firm model that emphasizes the decisions to invest in productive assets and to contract with firm managers. Contemporary examples of derivative firms include joint ventures and LBOs. The traditional joint venture is recast as a derivative firm with the model pointing out why managerial contracts and asset investment decisions should be made simultaneously for optimal shareholder wealth.
Management ownership and corporate value
Authors: Chen Haiyang , Hexter J. Lawrence , Hu Michael Y. 
Published: May 2007

AbstractExisting literature on the relation between management ownership and firm value has provided competing hypotheses and conflicting evidence. Using samples of Fortune 500‐sized firms in 1976, 1980 and 1984, we find that corporate value measured by Tobin's q is a function of management ownership. Specifically, the q rises when management ownership is between 0% and 5‐7%, and falls as the ownership increases to 10‐12%. Beyond this range, we find that the q continues to fall in the 1976 sample, and starts to rise in the 1980 and 1984 samples. The evidence supports the hypothesis that there is a nonmonotonic relation between management ownership and corporate value.
Deregulation and price discrimination in the conveyancing market
Authors: Stephen Frank H. , Love James H. , Gillanders Derek D. , Paterson Alan A. 
Published: May 2007

AbstractUsing data from a telephone survey of solicitors in England and Wales, this paper presents data on the impact of deregulation on price discrimination in 27 local conveyancing markets. It is concluded that variations in price discrimination can be explained not only by differences by firm and market structure but also by systematic differences in firm conduct. In particular, the nature of the response within different markets to deregulation in the legal profession (advertising and licensed conveyancers) has a significant effect on the extent of price discrimination.
A non‐co‐operative bargaining model of membership expansion in a producer co‐operative
Authors: Neary Hugh M. 
Published: May 2007

AbstractThis paper presents a non‐co‐operative bargaining model of membership expansion in a producer co‐operative. The emphasis is on examining the distribution of the resulting surplus between the existing partners and the new member. In the presence of a number of alternative candidates, the existing partners can use the threat of switching negotiating partners to extract additional surplus from the negotiations. The degree of symmetry between the competing candidates necessary for these threats to be credible is specified, as is the nature of the dependence of the parties' payoffs on the various parameters of the model. Potential sources of misallocation within the model are identified.
Comparative statics for profit‐maximizing and labor‐managed cournot oligopolies
Authors: Okuguchi Koji 
Published: May 2007

AbstractComparative static results are derived for two types of oligopoly: profit‐maximizing and labor‐managed Cournot oligopolies. After establishing a general principle for comparative statics for oligopoly, we will examine how a shift in the demand function, changes in the wage rate, indirect tax rates and fixed costs, and technical change affect the equilibrium Cournot industry and firms‘ outputs, firms’ profits and dividends per unit of labor. We will also analyze the effects of entry. Our analysis makes an extensive use of the relationship existing between an individual firm's and industry outputs. We will derive two kinds of stability conditions: one behavioristic and the other computational. Finally, we will conduct comparative static analysis for mixed oligopoly where several profit‐maximizing and labor‐managed firms co‐exist.