bluuebunny/crossref_metadata_2025_split huggingface dataset:
Divisional sell‐off: A hazard function analysis
Authors: Ravenscraft David J. , Scherer F. M. 
Published: May 2007

AbstractFor a sample of roughly 450 companies, hazard function estimation is used to determine the environmental and organizational variables precipitating the ‘sell‐off’ of divisional units. The sample focuses on 285 ‘lines of business’ fully divested between 1975 and 1981, comparing them to 2157 retained lines. The most powerful sell‐off predictor was prior profitability at the line of business level; the lower profits, the higher the sell‐off probability. Also, divestiture was more likely, the lower company‐wide profitability, the lower a line's market share, the lower the line's R&D/sales ratio, and in the aftermath of a company chief executive officer change. Units previously acquired in conglomerate mergers were more likely to be sold off than original units. On the buyer's side of the sell‐off market, large companies acquiring other firms' divested units tended to improve the units' profit performance, but not enough, on average, to realize a normal return on their investments.
Retail pricing: Does channel length matter?
Authors: Coughlan Anne T. , Lal Rajiv 
Published: May 2007

AbstractThe number of intermediary levels between a manufacturer and the final market in a distribution channel varies from industry to industry. In some cases, none are used (i.e. the distribution function is vertically integrated), while several middleman levels are used in other cases (e.g. the use of a wholesaler, a jobber, and a retailer in the distribution of meat). In this paper we examine the effect of competition on the profit‐maximizing length of the distribution channel. We find that the optimal number of middleman levels increases with the substitutability of products in the market, but that there are institutional limits on the maximum number of levels in a channel. The analysis also suggests that differences in the objectives of channel members (e.g. the maximization of total channel profit versus the maximization of each member's individual profit) affect optimal channel length: a goal of total channel profit maximization produces a channel at least as long as one of individual (non‐co‐operative) member profit maximization. The work thus complements existing research focusing on intra‐channel (e.g. cost‐based) explanations of channel length, using a framework similar to those investigating competitive incentives for vertical integration in distribution.
Personal Taxes and the underpricing of initial public offerings
Authors: Dandapani Krishnan , Dossani Rafiq , Prakash Arun J. , Reside Mary Ann 
Published: May 2007

AbstractThe purpose of this paper is to propose an alternative explanation for the underpricing of initial public offerings (IPOs). The first section reviews the empirical evidence on underpricing IPOs in support of various alternative hypotheses that have been put forth in the literature. This is followed by our model which examines the effect of personal taxes paid by entrepreneurs on the choice of the issue price. We show that, in the presence of taxes and for certain levels of ownership retained by the entrepreneur, it may be preferable to underprice the issue. This theoretical result is reinforced by both the simulation and empirical tests.
Organizational structure and the internal economy of the firm: The UK insurance industry
Authors: Ingham Hilary 
Published: May 2007

AbstractThere now exists a substantial volume of empirical evidence which has examined the superiority of the ‘M’‐form organizational structure for the management of large, diversified enterprises. Regrettably, attention has mainly been focused on manufacturing companies, despite the rising importance of the service sector in most major economies. This paper examines organizational structures within one segment of the UK service sector: the insurance industry. In the UK this industry has undergone significant, regulatory‐driven structural change and, as a consequence, the majority of companies have undertaken organizational change. The results produced, however, suggest that many of these companies adopted sub‐optimal divisionalized structures.
The factors determining the profitability of international airlines: Some econometric results
Authors: Antoniou Andreas 
Published: May 2007

AbstractThe deregulation of the US domestic airline market in 1978 and its apparent relative success continues to attract a great deal of interest among US and other economists. This uniquely US experience has clearly shown that factors such as market contestability, the multiple output nature of costs, the structure of networks and airport presence play a crucial role in the survival and, ultimately, profitability of relatively free and unregulated airlines. However, most international airlines still operate in a heavily regulated environment. While the tendency is clearly toward liberalization, the question remains: What can these airlines do to improve their profitability within this framework? Our results indicate that profitable airlines have high passenger load factors, a relatively low proportion of capacity related costs, younger and more efficient fleets and supplement their passenger loads with freight.
The market reaction to announced deep cuts in capital expenditures
Authors: Tsay Yang‐Tzong , Alt Frank , Gordon Lawrence A. 
Published: May 2007

AbstractThe objective of the study reported in this paper was to examine the role of deep cuts in capital expenditures as a firm's strategy for becoming more efficient and, in turn, more competitive. Based on an empirical study, support is provided for the argument that deep cuts in capital expenditures may be a viable strategy for realigning corporate priorities toward a more efficient operation. The measure of performance utilized in this paper is the stock market reaction to announced deep cuts.
Restructuring, regrouping and adjusting: Canadian manufacturing in an era of free trade and globalization
Authors: Weiermair Klaus , Supapol Atipol Bhanich 
Published: May 2007

AbstractThis paper examines the international competitiveness of the Canadian Textile and Clothing (TC) sector and its adjustment problems within a global economy. It focuses on the TC firms' capabilities to prepare for changes and implement strategies in an increasingly turbulent market environment. It highlights the importance of organizational response mechanisms and the development/utilization of industry‐specific technology and management know‐how. The paper argues for a future Canadian industrial policy that emphasizes the achievement of dynamic as well as static efficiency.
The dynamic operation of the market for partnership deeds in a duopolistic industry of a profit‐maximizing firm and workers' enterprise
Authors: Chiarella Carl 
Published: May 2007

AbstractThis paper analyses a model of the dynamic interaction of a profit‐maximizing firm and a workers' enterprise (in the sense of Sertel, 1982) in an industry in which each acts as a duopolist. The framework is similar to that of Chiarella (1992). In that study labour was the only factor of production and workers were allowed to trade‐off work and leisure. Here we wish to analyse the effect of the capital accumulation decision on the outcome of the duopolistic competition. In order to obtain a tractable model we drop the work‐leisure trade‐off. We assume dynamic adjustment in the market for partnership deeds along the lines suggested by Okuguchi (1992a, b) and analyse the equilibrium of the duopoly, its comparative statics and stability with respect to key variables.
Optimum tariff on imports from imperfectly competitive labor‐managed firms
Authors: Hwang Hong , Lin Yen‐Shu , Mai Chao‐Cheng 
Published: May 2007

AbstractThis paper develops a model of international trade between a labor‐managed economy and a capitalist economy and examines the short‐ and long‐run optimal specific tariff in the presence of foreign imperfect competition among labor‐managed firms. It will be shown that the underlying conditions for the optimal tariff rule are different from conventional wisdom.
The productivity effects of employee ownership within command economies: Evidence from Poland
Authors: Jones Derek C. 
Published: May 2007

AbstractThe effects of employee ownership, broadly defined, are estimated for a sample of Polish producer co‐operatives in three industries during 1976‐8, i.e. when Poland was a centrally planned economy. The results indicate that, in general, increasing either worker participation in control and/or in economic returns provides positive effects on productivity. The pattern of the different effects of employee ownership varies significantly across sectors. This new evidence strongly suggests that workers within Soviet‐type economies are responsive to economic incentives. Together with existing theoretical and empirical evidence for both Eastern and Western European firms, the findings suggest a larger role for employee ownership than typically either currently exists or that is under serious consideration in most restructuring economies.
The influence of executive compensation on the dispersion of security analyst forecasts
Authors: Goss Betsy C. , Waegelein James F. 
Published: May 2007

AbstractThis study examines the association between executive compensation and security analyst forecast dispersion in an agency setting. It is hypothesized that firms that compensate their managers with long‐term performance plans and high percentages of managerial stock will be less likely to engage in manipulation of financial statements and their financial performance will be easier to predict, thus resulting in less disperse forecasts. The results provide evidence that firms that compensate their managers with long‐term performance plans and higher levels of the company stock have less dispersion associated with their security analyst forecasts and greater dispersion of their long‐term growth in earnings.
Chance‐constrained data envelopment analysis
Authors: Land Kenneth C. , Lovell C. A. Knox , Thore Sten 
Published: May 2007

AbstractData envelopment analysis (DEA) is extended to the case of stochastic inputs and outputs through the use of chance‐constrained programming. The chance‐constrained frontier envelops a given set of observations ‘most of the time’. As an empirical illustration, we re‐examine the pioneering 1981 study of Program Follow Through by Charnes, Cooper and Rhodes.
Note: Heteroscedasticity in the market model: Some evidence from the athens stock exchange
Authors: Karathanassis G. , Philippas N. 
Published: May 2007

AbstractOver the last three decades a substantial amount of empirical research has been undertaken to investigate the behaviour of major securities markets. While some work has been done with data from the markets of developing countries, considerable testing must be undertaken for the world's emerging securities market. The objective of this paper is to present some Greek evidence of the heteroscedasticity in the market model. The paper examined 43 companies quoted on the Athens Stock Exchange and found substantial evidence of heteroscedasticity.
Firm‐specific wage growth and changes in the labor market for managers
Authors: Chauvin Keith W. 
Published: May 2007

AbstractThis paper analyzes recent changes in the employment relationships between managers and firms. In both Becker's and Lazear's models of firm‐specific wage growth, compensation is deferred from early in an employee's tenure with a firm until later in the contract. The deferred compensation bonds the worker to the firm. Based on cross‐sectional data from Current Population Surveys, rates of firm‐specific wage growth are estimated for the managerial labor market. The findings show that the rate of wage growth that is firm‐specific for managers in manufacturing industries declined significantly during the early 1980s. It is estimated, for example, that a manager with 12 years of tenure in a manufacturing firm enjoyed, on average, a 25% wage premium in 1979 over an otherwise similar manager who was a new hire in a firm. By 1983 the firm‐specific wage premium for a manager with 12 years of tenure was only 5%. These changes represent a significant reduction in the strength of the employment bond between firms and managers, and a reduction in the incentive effects previously enjoyed by firms from the use of deferred‐compensation schemes. This change is consistent with the significant increases in the displacement rates of managers that occurred during the 1980s.
On the manager as principal clerk
Authors: Horowitz Ira 
Published: May 2007

AbstractUntil recently, economic theory and economists treated the management process with benign neglect. Insofar as business enterprises — the firms of economic theory – require managers to oversee their daily operations, these managers are implicitly viewed as fungible ‘principal clerks’. This paper makes this view explicit and considers whether it is valid for a particular class of manager, that of a major league baseball team.
Are baseball players paid their marginal products?
Authors: Macdonald Don N. , Reynolds Morgan O. 
Published: May 2007

AbstractPrevious researchers found that baseball players under the reserve clause had been paid considerably less than their contributions to club revenues. We ask, has the new contractual system of free agency and final‐offer arbitration brought baseball salaries into line with marginal revenue products? Using public data for the 1986 and 1987 seasons, our basic answer is yes, major league salaries generally coincide with estimated marginal revenue products, though significant deviations exist. Experienced players are paid in accord with their productivity; young players, however, are paid less than their marginal revenue product, on average. This result is closely related to the market structure within baseball.
Free Agency and the Allocation of Labor in Major League Baseball
Authors: Krautmann Anthony C. , Oppenheimer Margaret 
Published: May 2007

AbstractIn this paper we examine the allocation of labor under free agency by developing and testing a model to predict the migration of free agents. Data for individual players are used in a logit model that estimates the probability that a free agent will change teams as a function of several independent variables. Along with other authors, we find that free agents tend to migrate to big cities. In addition, we find evidence that the allocation of labor may be different under free agency than under the reserve clause and suggest a reason why Coase's theorem may not be applicable to this labor market.
US professional football: The demand for game‐day attendance in 1991
Authors: Welki Andrew M. , Zlatoper Thomas J. 
Published: May 2007

AbstractThis paper examines the factors which affect game‐day attendance at National Football League games during the 1991 season. Using a Tobit analysis, the model includes economic as well as quality of game variables as explanatory variables. This analysis reveals that: higher ticket prices reduce attendance with the demand appearing to be inelastic; and a winning home team spurs game‐day attendance.
Estimating the economic impact of a minor league baseball stadium
Authors: Colclough William G. , Daellenbach Lawrence A. , Sherony Keith R. 
Published: May 2007

AbstractMinor league baseball has enjoyed a renaissance in recent years. In many communities baseball supporters are proposing sports stadiums often with some degree of tax support requiring voter approval. Economic growth and development are issues citizens are asked to consider when they vote. This paper presents an easily adaptable model for estimating the direct and indirect economic impact of a minor league baseball team on the community. An application of the model is featured. Direct expenditures from external sources are estimated and RIMS II regional multipliers are applied to determine the indirect impact on area output, earnings and employment.
Take that jam! An analysis of winning percentage for NBA teams
Authors: Chatterjee Sangit , Campbell Martin R. , Wiseman Frederick 
Published: May 2007

AbstractThe won‐loss percentage for all games played in a season by NBA teams is modeled as a function of team performance statistics. Four variables field goals, free throws, rebounds, and turnovers are found to be statistically significant and account for more than 90% of the variation in the data. The regression coefficients also appear to be stable from year to year. Predictions for four years obtained from the estimates of one season show good agreement with the observed data. Forecasts for the 1993 season are also given based on mid‐season statistics. Predictions for play‐off winners are also briefly discussed. The analysis is carried out in the spirit of exploratory data analysis using graphical methods.
Salary determination in major league Baseball: A classroom exercise
Authors: Estenson Paul S. 
Published: May 2007

AbstractAs a part of an economics course, The Economics of Major League Baseball, students were assigned the responsibilities of team owners who had to assess the quality and value of players, put a product on the market (their baseball team), pay salaries and maximize profits. The season was simulated using the Earl Weaver Baseball software and involved a schedule of 162 games for each team. The exercise was used to examine salary determination in major league baseball. The exercise was modelled as closely as possible to the actual structure of major league baseball with the clearest distinction being the acquisition of players. The owners in the experiment purchased players in the open‐outcry English auction. The results of the auction showed that salaries matched marginal revenue products and that the open auction displayed the declining price anomoly discovered to exist in real‐world auctions.
Labor market reputation and the value of the firm
Authors: Chauvin Keith W. , Guthrie James P. 
Published: May 2007

AbstractThis study examines the stock market reaction to announcements that should contribute to the positive reputation of firms' human resource management practices. Announcements consist of the annual release of the list of 'best' employers by Working Mother magazine. We hypothesize that these announcements positively contribute to the firms' labor market reputation, thereby improving a firm's ability to attract, retain and motivate good employees. We find a small but statistically significant increase in firms' stock prices following the release of the list. The effect is larger, the first time a firm appears on the list relative to subsequent appearances.
A tax‐based motive for the underpricing of initial public offerings
Authors: Reside Mary Ann , Robinson Richard M. , Prakash Arun J. , Dandapani Krishnan 
Published: May 2007

AbstractThis paper presents a model of entrepreneurial wealth maximization for the pricing of initial public offerings (IPOs). It is an extension of one previously presented in the literature. The model shows that personal tax rates on ordinary income and capital gains may, in part, determine IPO pricing: an increase in the capital gains tax rate should lower the degree of underpricing. An empirical analysis of the effect of the Tax Reform Act of 1986, which raised the capital gains tax rate, shows that the average degree of underpricing did decrease as predicted, and that this occurs after controlling for other possible influences.
Simulations testing the performance of three product pricing rules when applied using data on past operations
Authors: Lere John C. 
Published: May 2007

AbstractThis paper describes the performance of learning, markup and pseudo‐maximizing pricing rules when applied using data on past operations in simulated environments. Performance is evaluated on (1) average last profit achieved after ten periods of experimentation with alternative prices and (2) total profit achieved over ten periods. The pseudo‐maximizing rule performs at least as well as other feasible rules when the demand and cost curves are both deterministic and when the demand curve is deterministic and the cost curve is linear, but stochastic. In all other settings, the markup rule performs at least as well as other feasible rules.
Sole sourcing, competitive sourcing, parallel sourcing: Mechanisms for supplier performance
Authors: Richardson James , Roumasset James 
Published: May 2007

AbstractQuality management practitioners in the USA such as W. Edwards Deming, strongly advocate the Japanese model of supplier relationships‐recommending substantial specific investment in a single supplier for improved co‐ordination and higher quality. But the strategy literature and conventional wisdom favor multiple sourcing, suggesting that a high level of specific investment in a sole source will lead to problems with supplier performance. Using agency theory, we construct a model to evaluate the tradeoff between the costs to set up and coordinate with suppliers and the incentive for performance provided by competition. We find that the validity of Deming's Point Four, that sole sourcing is more profitable than competitive sourcing, depends on parameters such as profit sensitivity to supplier performance.
Note: A pilot experimental test of trade hysteresis
Authors: Ansic David 
Published: May 2007

AbstractDeveloping tests of the theories of trade, using traditional empirical and econometric techniques, has been shown to be controversial and inconclusive. This paper reports on some encouraging results arising out of a pilot experiment designed to test the Krugman model of trade hysteresis. This pilot experiment reveals that a definite hysteresis effect is evident when subjects exit a foreign market in which they have been trading after having paid fixed costs to enter the market. Results also show that the degree of hysteresis evident is a function of the absolute and relative size of entry costs, which has implications for the relationship between size of business, volatility of exchange rates and international trade.
The role of takeovers in increasing efficiency
Authors: Grabowski Richard , Mathur Ike , Rangan Nanda 
Published: May 2007

AbstractThis paper extends the limited number of studies that examine whether the threat of takeovers serves as an efficiency‐enforcement mechanism. A nonparametric programming approach is utilized to construct a measure of overall efficiency that is decomposed into technical and allocative components. Utilizing three inputs and five outputs, measures of efficiency are constructed for a sample of 578 banks from states that permit acquisitions and states that do not. The results indicate that, on average, banks that are subject to takeovers tend to be more efficient Furthermore, the lack of threat of takeovers appears to induce inefficiencies that are technical in nature. The evidence lends support to the hypothesis that the threat of takeovers improves efficiency in firms.
Privatization and economic performance throughout the UK business cycle
Authors: Martin Stephen , Parker David 
Published: May 2007

AbstractSince 1979, many state‐owned industries in the UK have been sold to private shareholders. Initial studies of the impact of privatization on performance were unable to distinguish once‐and‐for‐all shake‐out effects and those that were part of a continuing process. Moreover, the immediate post‐privatization period often coincided with the boom conditions of the late 1980s. Using two standard performance ratios, this paper examines these issues by tracking the record of eleven firms that were privatized in the 1980s. The results make it difficult to sustain the hypothesis that private ownership is unequivocally more efficient than nationalization.