Location Choice and Contract Bargaining

We study how managerial bargaining power affects outcomes and payoffs in a Hotelling‐type duopoly framework with restricted and unrestricted locations. We show that bargaining power only affects the distribution of the surplus between owners and managers but does not affect the locations, prices, managerial incentives, and consumer welfare. This is in stark contrast to van Witteloostuijn et al. (2007) and related contributions where bargaining power has real effects. We argue that the difference between our irrelevance result and their findings originates from the fact that their approach seems to be based on a behavioral assumption and not on microeconomic principles of owner–manager bargaining. Copyright © 2015 John Wiley & Sons, Ltd.     

Potential heterogeneity in target’s value and jump bidding in takeover auctions

This ticle analyses the pre-emptive jump bidding equilibrium in takeover auctions when bidders’ valuations of the target firm follow truncated normal distribution. It shows that potential heterogeneity of the targets’ value, measured by the standard deviation of the bidders’ valuation function, is especially important when it is small and, for extremely small values, the second bidder is almost always pre-empted. It also shows that, contrary to regular clock-style auctions, the increase in standard deviation may negatively affect the expected profit of the first bidder.     

Structural Changes in the Labor Market and the Rise of Early Retirement in France and Germany

The rise of early retirement in Europe is typically attributed to the European system of taxes and transfers. A model with an imperfectly competitive labor market allows us to consider also the effects of bargaining power and of matching efficiency on pre‐retirement. We find that lower bargaining power of workers and declining matching efficiency have been important determinants of early retirement in France and Germany. These structural changes, combined with early retirement transfers and population aging, are also consistent with the employment and unemployment rates, labor share and seniority premia.     

Private Wealth in a Developing Country:Evidence from South Africa

The point of departure of Piketty's influential Capital in the Twenty‐First Century (2014) was the dramatic growth of private wealth‐income ratios in advanced economies between 1970 and 2010. Using official balance sheet data for South Africa—the first country to publish such data in the developing world—, this paper examines to what extent this re‐emergence of private wealth was also experienced in the developing‐country context. First, we find that the South African current wealth‐income ratio is very close to its 1975 level, and much lower than those of Piketty's sample of advanced economies. Second, we show that the discrepancy is explained not only by South Africa's relatively low savings rates, but also by the reduction of wealth before and during the transition to democracy in the 1990s. Since then, private wealth recovered significantly, but the U‐shaped relationship does not support the argument that there is a clear correlation between the capital‐income ratio and capital share.     

Impacts and risks associated with developing,but unsupervised,stingray tourism at Hamelin Bay,Western Australia

Interacting with stingrays at Hamelin Bay, in the south‐west of Western Australia, appears to be substantially growing in popularity. Promotion of the rays is increasing through websites and brochures and larger tourism productions, such as the ‘Getaway’ television programme, have shown interest in the Hamelin Bay site. Yet there is still very little known about the impacts on rays (both behavioural and physical), risks to humans, or indeed the issues that provisioning stingrays can present. Although Shackley (1998) conducted an impact study of stingray provisioning in the Cayman Islands, provisioning activities at Hamelin Bay, and other areas in the southwest are unique because they are shore‐based. As part of developing a profile of conditions at the Hamelin Bay provisioning site we investigated stingray numbers and their distribution in the area. We also collected data on the type and amount of provisioned food, investigated stingray behaviour and observed how tourists interacted with stingrays. It was shown through site profile data that rays are attracted to the site principally by food provisioning and secondarily by boats due to learned association with food. They are most common at the provisioning site in the middle of the day, as are peak visitor numbers. Behavioural impacts on rays were found to be attraction to humans, resulting in aggression and hierarchy towards one another. Attraction to humans at the provisioning site reflected that the rays may be partially habituated. However, rays were also seen foraging naturally for food, indicating that they are not yet dependent on humans. Other potential impacts to rays include boat damage from pleasure craft, overfeeding, being fed the wrong food, damage from fishing hooks and risk of disease from foul water. Lesions on skin and permanent shoaling behaviour, as witnessed at other stingray provisioning sites, were not observed at Hamelin Bay. Management actions are recommended to reduce impacts on the rays, eliminate risks to visitors and increase visitor satisfaction. Copyright © 2004 John Wiley & Sons, Ltd.     

Planning for stingray tourism at Hamelin Bay,Western Australia: the importance of stakeholder perspectives

Stingray tourism continues to be developed at various locations around the world with the concept being marketed on television travel programmes, documentaries, internet sites and travel brochures. Food provisioned stingray tourism, for example, now attracts some 100 000 visitors a year to ‘tingray city’ in the Caymen Islands. At Hamelin Bay in southwest Western Australia, up to 16 large stingrays (Dasyatis brevicaudata and Dasyatis thetidis) and numerous eaglerays (Myliobatis australis) are fed by visitors from the waters edge. This study reports on stakeholder perspectives relating to tourism development and potential management of the Hamelin Bay site. From the results of this study it is clear that there is sufficient interest in stingray tourism (by all the stakeholders surveyed) to develop Hamelin Bay as a permanent feeding site. Visitors on average gave their experience with the rays a satisfaction value of 8.9 out of 10. Twenty‐five per cent of visitors surveyed did not want commercialisation, tour groups or excessive visitor numbers. Their main concern was that the health and safety of the rays may deteriorate with an increase of visitors if the situation is not managed correctly. Visitors desire to be educated about the rays, and how to best interact with them safely. Visitors also acknowledged that the site needs management through more signs, information and a management plan. Management for the site is therefore likely to be best implemented through the application of signage, development of guidelines/codes of conduct, protection of the rays and zoning the beach according to specific recreational purposes. Management regimes should also use various indicators to monitor the impacts of stingray tourism at Hamelin Bay. Copyright © 2003 John Wiley & Sons, Ltd.     

Trade credit,collateral liquidation,and borrowing constraints

Assuming that firms’ suppliers are better able to extract value from the liquidation of assets in default and have an information advantage over other creditors, the paper derives six predictions on the use of trade credit. (1) Financially unconstrained firms (with unused bank credit lines) take trade credit to exploit the supplier's liquidation advantage. (2) If inputs purchased on account are sufficiently liquid, the reliance on trade credit does not depend on credit rationing. (3) Firms buying goods make more purchases on account than those buying services, while suppliers of services offer more trade credit than those of standardized goods. (4) Suppliers lend inputs to their customers but not cash. (5) Greater reliance on trade credit is associated with more intensive use of tangible inputs. (6) Better creditor protection decreases both the use of trade credit and input tangibility.     

From complexity to transparency: managing the interplay between theory, method and empirical phenomena in IMM case studies

Theory, method and empirical phenomena are the three cornerstones of research. In this paper we contemplate the interplay between them when case research in industrial marketing is concerned. Developments in research depend on what empirical phenomena we are able to capture, how theories are developed to understand and explain these phenomena and what methods we use and/or develop in the process. While the emphasis is often put on one of these aspects alone, this paper focuses on the links and interplay between theory, case method and empirical phenomena in the development of research in industrial marketing. Specifically, we seek to provide common ground between orthodox (deductive) and unorthodox (abductive) approaches to managing the interplay by making a pragmatic call for transparency in research procedures. In this endeavour we use the papers included in this special issue as examples of various aspects of this interplay. We conclude by suggesting that there is a gamut of approaches possible to case research in industrial marketing, each with its specific links to theory and empirical phenomena, and that this is promising for the development of research in the field, as long as it helps reduce, rather than increase, the complexity of the case studied.     

Impact of International Financial Reporting Standard adoption on key financial ratios

Although previous research has investigated the economic consequences of International Financial Reporting Standard (IFRS) adoption, there is little evidence on the impact of IFRS adoption on key financial ratios. To fill this gap, we examine this issue in a continental European country (Finland). Our results show that the adoption of IFRS changes the magnitude of the key accounting ratios. Moreover, we extend the literature by showing that the adoption of fair value accounting rules and stricter requirements on certain accounting issues are the reasons for the changes observed in accounting figures and financial ratios.