bluuebunny/crossref_metadata_2025_split huggingface dataset:
The impact of financial and economic conditions on aggregate merger activity
Authors: Polonchek John A. , Sushka Marie E. 
Published: June 2007

AbstractA model of aggregate merger activity is developed by integrating the literature on aggregate investment in fixed capital into a microfinance framework. Mergers are viewed as the result of firms capital budgeting processes, and two major categories of explanatory variables emerge: (1) cost of capital and related financial effects, and (2) output effects. Regressions, estimated to explain the number of large mining and manufacturing mergers over the sample period 1956–1978, provide evidence consistent with this view. In addition, the model explains the high level of merger activity during the conglomerate boom of 1967–9.
Uncertainty and synergy: Towards a formal model of corporate strategy
Authors: Kay N. M. , Diamantopoulos A. 
Published: June 2007

AbstractIn this paper an attempt is made to integrate the twin concepts of synergy and environmental uncertainty in a unifying framework for the analysis of corporate strategy in the large corporation. Environmental uncertainty and synergy considerations are considered to be the fundamental determinants in strategy formulation, the firm's strategy reflecting a choice between potential synergistic gains and increased vulnerability to environmental threats. A formal model of corporate strategy is developed explaining strategic behaviour as a function of opportunities for synergistic gains and level of environmental uncertainty. The empirical relevance of the model is demonstrated by utilizing data from four major studies of corporate strategy in the USA, the UK, France and West Germany.
On the value of free foreign‐exchange forecasts
Authors: Ursprung Heinrich W. 
Published: June 2007

AbstractThe objective of this paper is to assess the value of free foreign‐exchange forecasts. Taking the exchange‐rate projections published by Lloyds Bank as an example, it is shown that there is no reason to assume that these projections consistently outperform the most easily available benchmark, the current spot exchange rate. Moreover, the returns to speculative investment based on these projections seem to be, at best, insignificant. The value of such forecasts must, therefore, be regarded as negligible.
Valuation under imperfect information: Bayesian learning from the performance of the firm and the market
Authors: Harpaz Giora , Thomadakis Stavros B. 
Published: June 2007

AbstractThis paper develops a valuation model for a project or firm in the presence of uncertainty about the mean of the probability distribution of the cash flows generated by the project. Its major point is that in the presence of parameter uncertainty the value of the project is smaller than in the case where the mean cash flows is perfectly known. The second point is that when there is a known covariance between project cash flows and aggregate market cash flows investors can learn about the unknown mean cash flows by observing the market. This is referred to as ‘learning from the market’.
The relationship between mixed strategies and strategic groups
Authors: Kumar K. Ravi 
Published: June 2007

AbstractThis paper identifies a theoretical basis for the existence of strategic groups. We represent the competitive marketplace by means of a game‐theoretic model and motivate the existence of markets wherein the only Nash solution may be in mixed strategies. Given deterministic behavior on the part of the firms, we interpret this solution in terms of a strategic groups equilibrium. The major implication of this analysis is that strategic groups can exist even if there is no inherent asymmetry (in terms of skills) between firms.
Economists and the gains from trade
Authors: Buchanan J. M. 
Published: June 2007

AbstractThis paper examines William H. Hutt's work in terms of two early books, Economists and the Public (1936) and A Plan for Reconstruction (1944). Hutt is presented as a consistent reductionist, who concentrated attention on the elementary principle of mutuality of gains from trade. This concentrated attention led him to reject any and all observed restrictions on voluntary exchange as inefficient and, hence, damaging to welfare.
The huttian philosophy
Authors: Lachmann L. M. 
Published: June 2007

AbstractHutt's economic view is best encapsulated in his policy‐oriented Plan for Reconstruction. Antedating the Beveridge Report on full employment, Hutt argued not for a Keynesian management of aggregate demand but rather for legislation which would render unemployment (caused by the withholding of labour or other resources) illegal. Removal of restrictions on supply would unleash ‘colossal’ productive capacity. It would require, as a prerequisite, a legislative and regulatory framework embedded in sound ‘institutional planning’. Hutt is no corporatist or interest group planner, but neither can he be bracketed with late twentieth‐century libertarians. He is his own man.
Gender, pay equity and equal value: A solution in search of a rationale?
Authors: Sloane P. J. 
Published: June 2007

AbstractIn many countries equal pay legislation has been extended to embrace the concept of equal value. This paper addresses the question of equity in the labour market and argues that much of recent policy is misconceived. Occupational crowding is not the major cause of differences in pay between men and women. As a consequence it is doubtful if equal value policies are appropriate for eliminating such pay differences and they are also likely to have undesirable side effects.
Competition, regulation and bribery
Authors: Beck Paul J. , Maher Michael W. 
Published: June 2007

AbstractBribery of government officials is commonly used to obtain contracts in many foreign countries. The Foreign Corrupt Practices Act of 1977 (FCPA) made it illegal for US firms to pay bribes, even in the absence of regulation on the bribe‐taking side of the transaction. Opponents of the law claimed it would put US firms at a competitive disadvantage relative to foreign suppliers who were not subject to the same regulation. This paper models the effects of two types of anti‐bribery regulation. In general, regulation of bribe takers reduces the disciplinary effect of competition and is ineffective in deterring bribery unless the penalties exceed the gains. The impact of regulation of bribe payers (i.e. suppliers) depends on whether the law is applicable to all bribe payers, firms' costs and the existence of contract price constraints on the purchasing side of the transaction. The results lead to empirically testable hypotheses about US exports to bribery‐prone countries.
Individual versus group spot price forecasting in the international petroleum market: A case study
Authors: Brocato Joe , Kumar Akhil , Smith Kenneth L. 
Published: June 2007

AbstractThis paper utilizes the conventional statistical tests associated with the rational expectations hypothesis so as to compare the relative accuracy of individual versus group forecasting within the organization. In order to maintain comparability between forecasting regimens the study employs like information sets for the two prediction methods. Using the rational expectations tests as criteria, the statistical results show group forecasts inferior to individually produced predictions These findings imply that group‐produced forecasting accuracy may be hampered by the psychological interaction associated with consensus behavior. Conversely, we find forecasting accuracy improves when predictions are elicited from individuals in an isolated laboratory‐like setting.
Stock‐market reaction to growth‐induced dividend cuts: Are investors myopic?
Authors: Ghosh C. , Woolridge J. R. 
Published: June 2007

AbstractThis paper focuses on shareholder reaction to growth‐motivated dividend cuts and omissions. The results reveal that although growth announcements mitigate the capital loss induced by dividend decreases, the stockmarket response to growth‐oriented dividend cuts is still strongly negative. However, the capital loss suffered by investors is significantly reduced when dividend cuts are accompanied with stock dividends. Two potential explanations of the results are explored: (1) shareholders find the immediate benefits of stock dividends more attractive than the potentially higher future rewards of investment opportunities; and (2) shareholders overreact to dividend announcements. Analysis of the performance of the firms for two years following the dividend cut indicates weak support for the overreaction hypothesis.
Factors affecting the nature and effectiveness of subjective revision in sales forecasting: An empirical study
Authors: Diamantopoulos Adamantios , Mathews Brian 
Published: June 2007

AbstractRecent empirical results have indicated that sales forecasts obtained from a quantitative model can be improved through subjective revision undertaken by management. This study seeks to determine the extent to which the improvement in forecast performance is dependent upon the individual revising the forecast rather than the specific product under consideration. As any improvement in the forecast is a direct consequence of the adjustment effected, differences in the nature of revision among the individuals concerned and between different types of product are also examined. The results reveal no statistically significant differences between the managers involved in revision activity in terms of their ability to improve the forecast; on the other hand, significant differences in the number of forecasts improved were found between different types of product. As far as the nature of subjective revision is concerned, the results show a significant variation both between different types of product and between managers. Further, the improvement in forecast performance obtained through revision was found to be positively related to the relative size of the adjustment applied.
R&D, concentration and advertising: A simultaneous equations model
Authors: Lunn John 
Published: June 2007

AbstractThis study employs a simultaneous equations model to test the relationships among industrial R&D spending, market structure and advertising. The R&D data employed are the Line of Business data collected by the FTC and published at the three‐ and fourdigit SIC level. The results are, in general, complementary to several other recent studies that used data sets involving different degrees of aggregation as well as different measures of research activity.
Macroeconomic policy and the pricing behavior of imperfectly competitive firms
Authors: Hula David G. 
Published: June 2007

AbstractThis paper develops theoretical models of the effect of expansionary macroeconomic policy on the pricing behavior of pure monopolist and oligopolist firms. A number of factors are identified which affect the magnitude of the price change chosen by an imperfectly competitive firm in response to macro policy action. The behavior of oligopolistic firms in response to macro policy changes is found to be influenced by the fact that expansionary macro policy initially impacts on industry demand rather than firm demand, and that the oligopolist's consequent pricing behavior will affect the share of the industry demand increase which it is able to appropriate.
The scope for market segmentation within the charity market: An empirical analysis
Authors: Schlegelmilch B. B. , Tynan A. C. 
Published: June 2007

AbstractBased on the analysis of 384 questionnaires, this paper investigates the scope for market segmentation for a variety of UK charities. The results call into question the idea that donor preferences expressed for a particular type of charity are associated with particular demographic, lifestyle or opinion and attitude segments. The managerial implications of the findings are discussed and suggestions for future research are made.
Agency, corporate control and accounting methods–the lifo‐fifo choice
Authors: Dyl Edward A. 
Published: June 2007

AbstractThe study examines the effect of the firm's ownership structure on its management's choice of LIFO or FIFO inventory valuation methods. Managers of widely held firms are found to select the accounting method that furthers their own interests, thus causing the firms' owners to bear agency costs that appear to be substantial.
Classification transitions under expansion of inputs and outputs in data envelopment analysis
Authors: Thrall Robert M. 
Published: June 2007

AbstractAn exchange between Thomas R. Nunamaker and T. Ahn, A. Charnes and W. W. Cooper which revolves around possible behavior of the DEA efficiency measure. In particular, Ahn, Charnes and Cooper provide a counterexample to Nunamaker's assertion that adding inputs to a DMU (Decision Making Unit) which had previously attained an efficiency of 0* = 1 with fewer inputs would never alter this value, no matter how inefficient the use of the additional inputs. Here we want to add additional insight by showing the condition under which Nunamaker's proposition is true. Using the notation and concepts from Charnes, Cooper and Thrall, we shall see that this proposition is true if and only if the previously attained 0* = 1 is uniquely optimal.
Ensuring creative approaches in information system design
Authors: Couger J. Daniel 
Published: June 2007

AbstractImprovement in computing capability is one way to aid US companies in recapturing competitive edge. The easy applications have been computerized; the difficult ones lie ahead. Creative approaches are needed to computerize those difficult applications. Yet IS has apparently little interest in the subject of creativity; less than a half‐dozen articles on the subject have been published in the 35‐year history of the discipline. The author reviewed the literature in other disciplines of art, science, engineering, psychology and education, to determine how creativity techniques had been utilized in those disciplines. The research revealed that many of those techniques are useful for the IS field. Definitions of creativity are provided, then three classifications of creativity research are reviewed: Rothenberg, Ackoff/Vergara, and Rosner/Abt. Creativity techniques are illustrated for general problem solving. The author advocates the use of creativity techniques in the information system development process at four points: near the conclusion of requirements definition, logical design, physical design and program design. Use of creativity techniques at each of these points is illustrated. By delaying convergence on a solution, new approaches and new alternatives can be generated and evaluated. These approaches can produce the systems needed to assist US companies in international competition.
The behavioral study of accountants: A new school of behavioral research in accounting
Authors: Sorensen James E. 
Published: June 2007

AbstractThrough a series of related studies the behavioral study of accountants has evolved as a body of knowledge focused on the practice of public accounting as a professionalized bureaucracy with special behavioral conditions surrounding the employment accessions (hiring) and separations (turnover). These studies have developed a common core of research findings over the past 25 years and now form the foundation of a new school of behavioral research in accounting.
Bimodality in diversification: An efficiency and effectiveness rationale
Authors: Reed Richard 
Published: June 2007

AbstractVarious researchers have observed that the frequency distribution of firm diversification is bimodal. The two modes are created by a majority of firms employing either very little or substantial amounts of diversification. Only a minority of firms opt for medium amounts of diversification. From theoretical discussion of the forces of efficiency and effectiveness in diversification, this work provides a rationale for the bimodality phenomenon. In turn, research implications arise regarding optimum degrees of diversification, what the impact of optimization is upon firm performance, and why the measurement of both type and degree of diversification is important.
Takeover threats, antitakeover amendments and stock price reaction
Authors: Lauterbach Beni , Malitz Ileen B. , Vu Joseph 
Published: June 2007

AbstractWe examine the influence of takeover threats on the stock price of firms proposing antitakeover amendments. Stock prices of the majority of firms, which are not takeover targets during the four years surrounding the amendments, are unaffected, while prices of firms that become takeover targets within two years increase significantly. We document weak evidence of wealth losses only for a sample of prior targets. Our findings suggest that shareholders of the average firm are not harmed by antitakeover amendments because they provide either a better bargaining position or an information signal to the market.
Diversification patterns and long‐term corporate performance
Authors: De Sankar 
Published: June 2007

AbstractThis study examines the relationship between diversification patterns of corporations and their long‐term performance. It is seen that the standard performance measures suggested in corporate finance literature rate all corporations equally in the long run regardless of their diversification strategies. This is because all corporations tend to earn a normal rate of return, given risk, for their shareholders in generally efficient capital markets. Since finance performance measures are not helpful in analyzing corporate performance, use of other measures is suggested for the purpose.
Monitoring costs as a basis for the dispersion of firm ownership
Authors: Jaditz Ted 
Published: June 2007

AbstractThis paper proposes a model of endogenous shareholder dispersion. We find ownership structure causes variance in firm value, not vice versa, and contra to Demsetz and Lehn (1985). Conditions are also identified where increases in ownership dispersion maximize firm value, contra to Shleifer and Vishny (1986). The model suggests that ownership dispersion is a dynamic phenomenon that may change with interest rates or the set of alternative uses of firm resources. The conclusion is that there is not likely to be one ‘best’ structure of firm ownership, either for an individual firm over time or for all firms at a single point in time.
Managerial compensation and the agency costs of debt finance
Authors: Brander James A. , Poitevin Michel 
Published: June 2007

AbstractThis paper presents a model of the agency costs of debt finance, based on the conflict of interest between shareholders and bondholders. We show how the terms of the compensation contract offered to management by shareholders can reduce these agency costs. We derive a managerial compensation contract that restores the first‐best outcome and leads to a local irrelevance result for financial structure. More generally, the model points out that the nature of managerial compensation contracts will affect the firm's optimal financial structure, and offers a reason why managerial compensation is typically not closely correlated with shareholder returns.
Ramsey pricing in the presence of risk
Authors: Berry S. Keith 
Published: June 2007

AbstractThis article examines Ramsey (second‐best) pricing for a multi‐product regulated monopolist when marginal costs fluctuate with a known probability function. When all marginal‐cost risk is absorbed by consumers, the degrees of Pratt‐Arrow absolute risk aversion and the marginal cost variances in the various markets have an affect on the appropriate Ramsey prices. An analogous result is obtained when investors absorb all of the cost risk. When the cost risk is optimally shared by consumers and investors, the deterministic Ramsey prices are obtained.
The dynamics of cost‐plus pricing
Authors: Hanson Ward 
Published: June 2007

AbstractResearchers report a sizable number of companies that use cost‐plus pricing. While such a policy is normatively suspect, it is simple, conventional, and occasionally mandated by regulation. This paper investigates cost‐plus pricing as a dynamic adjustment process. As a dynamic policy, cost‐plus pricing is more flexible than has commonly been realized. When firms have constant or decreasing average costs, dynamic cost‐plus pricing typically exhibits rapid convergence to the attracting member of a pair of fixed points. If the average cost function is sufficiently U‐shaped, complicated and chaotic dynamics can emerge.
Analysis and modeling of recent business failures in Greece
Authors: Papoulias Costas , Theodossiou Panayiotis 
Published: June 2007

AbstractThis paper provides an analysis of recent business failures in Greece and presents models for detecting financially distressed firms. Logit, probit, linear probability model, and linear discriminant analysis are used for developing these models. Potential users of the models include the banking system, corporate creditors, regulatory agencies, and investors in Greece, the European Economic Community, the USA, and other countries. These models expand the tools used by international and domestic investors to measure Greek firms' risk of insolvency.
Price uncertainty and the effect of capital costs in a point in‐point out inventory investment
Authors: Thorstenson Anders , Hultman Peter 
Published: June 2007

AbstractThis paper analyzes a point in‐point out inventory investment under price uncertainty. The optimal quantity is determined by maximizing the expected value of the investor's risk preference function, which is a function of profit. Using an exponential risk preference function, the adjustment in the optimal quantity stemming from a change in the interest rate is investigated. The main conclusion is that the sign of the adjustment depends both on how profit is expressed and on the type of price distribution applied. Contrary to what is assumed in conventional managerial control practices, a rise in the interest rate might lead to an increase in the optimal quantity when present value serves as a measure of profit.
The measurement of the gains or losses to an enterprise through relative price changes: The terms‐of‐trade effect and real income
Authors: Silver Mick 
Published: June 2007

AbstractThis paper provides a framework for measuring the terms‐of‐trade effect for an enterprise. This effect is the impact on the organization of changes in input to output prices as well as in the prices of goods and service upon which the income is utilized. The measurement of the effect is outlined with illustrative data and applied to the German Telecom sector, which has suffered particularly badly through adverse relative price changes. The case study of the German Telecom sector is also used to introduce the concept of real income. The framework advocated is argued to be particularly useful, since it allows not only the effects ex post of relative price movements to be evaluated, but also the effects ex ante of particular spending scenarios to be simulated (for example, investment). As such, it should be a useful addition to the ‘toolbag’ of managerial economists.
Capital budgeting with technology choice and demand fluctuations in a simple manufacturing model: Sample calculations and observations on output flexibility
Authors: Aranoff Gerald 
Published: June 2007

AbstractIn capital budgeting with technology choice and demand fluctuations errors can arise if managers unitize fixed costs and do not make proper allowance for expected idle capacity. In a standard‐cost system, managers and accountants should use as the standard cost E(AC), the expected average cost, employing a procedure shown in the paper. Managers should compare E(AC) and the short‐run‐average‐cost minimum, an output‐flexibility indicator proposed by the author. The more output flexible is the equipment, the less of an increase in costs to a firm if there are wider fluctuations in output rates than planned.