Strategic Sequential Bidding for Government Land Auction Sales – Evidence from Singapore

This paper studies the extent to which equilibrium land auction prices are pushed up sequentially due to strategic bidding behaviors in government land auction sales. Using a unique dataset that covers the universe of tendering prices submitted by all developers for all residential land auction sales in Singapore, we find that a tenderer’s bids are significantly higher where there was a previous land parcel sold within two years and located within four kilometers. The identified price margin decreases with time and geographic distance. Tracking sequential bids submitted by the same developer over time, we find that the incumbent winner of a previous auction is more likely to participate in subsequent nearby land sales as compared to the second-highest bidder of the same auction. However, it does not necessarily win the subsequent sites. We argue that the incumbent deliberately bids up the subsequent land prices to gain pricing advantages to their own parcels.     

The ASEAN–Korea Trade In Services (AKTIS) Agreement: Its Impact on Indonesia and Other ASEAN Countries

To strengthen trade in services between ASEAN and Korea, in 2009 both sides signed and implemented the ASEAN–Korea Trade in Services (AKTIS) agreement. This article is the first to assess the trade implications of this agreement for Indonesia and other ASEAN countries. Despite the increasing volume of ASEAN–Korea trade in services since 2009, it is hard to say whether AKTIS was the only factor behind this encouraging growth. The agreement’s potential trade impact is, however, quite substantial. Given the importance of enhancing further trade in services between the ASEAN countries and Korea, we propose a number of specific liberalisation measures that Indonesia and other ASEAN countries could take to further strengthen such trade with their Asian neighbour.     

The Social Impact of Tourism on Singapore

The article attempts to study the social consequences of tourism in Singapore by undertaking a sample survey, which involved about 500 households selected from four main tourist areas of the city-state. The results indicate that the Singaporeans largely benefited from overseas visitors. Tourism helped to promote cultural diversity, a sense of cleanliness, and a feeling of pride in Singapore. It also helped improve various infrastructural facilities and quality of services in general. The social costs of tourism were found to be rather minimal.     

What Caused the Korean Currency Crisis in 1997?*: Weak Fundamentals or Self‐fulfilling Expectations*

The present paper investigates which factor is primarily responsible for the sharp depreciation of the Korean won against the US dollar in 1997, using a bivariate vector autoregressive model of real and nominal exchange rates. In the present study, we directly identify the relative importance of fundamental and non‐fundamental factors from the raw data series on exchange rates. This approach is different from most previous studies on the Korean currency crisis, which use proxy variables to represent the two factors. The empirical results show that the collapse of the Korean currency in 1997 appears to be mostly a result of the weakened macroeconomic fundamentals of the economy with, to a limited extent, some non‐fundamental factors.     

Alliance or Acquisition? A Mechanisms‐Based,Policy‐Capturing Analysis

Research summary : While alliance researchers view prior partner‐specific alliance experience as influencing firms' subsequent alliance or acquisition decisions, empirical evidence on the alliance versus acquisition decision is surprisingly mixed. We offer a reconciliation by proposing and testing an analytical framework that recognizes prior partner‐specific experiences as heterogeneous along three fundamental dimensions: partner‐specific trust, routines, and value certainty. This allows us to use a policy‐capturing methodology to rigorously operationalize and test our mechanism‐level predictions. We find that all three mechanisms can increase the likelihood of a subsequent alliance or acquisition, and in terms of the comparative choice between alliances versus acquisitions, partner‐specific trust pulls towards alliances, and value certainty pulls towards acquisitions. We conclude with a discussion of the theoretical and empirical implications of our approach and method . Managerial summary : This study focuses on an important corporate decision: When a firm has had an alliance with another firm, how would that experience affect the likelihood of a future alliance or acquisition with that same firm? We first suggest that it will depend on three factors: the level of trust that existed in that prior alliance, the extent to which specific work routines were developed, and the degree to which the firm was able to confidently assess the value of the partner firm's resources. We then find that trust is a particularly strong predictor of future alliances, while confidence regarding value more strongly predicts future acquisitions. In this way, we demonstrate more precisely how past corporate choices can affect (consciously or unconsciously) future ones . © 2017 The Authors. Strategic Management Journal Published by John Wiley & Sons Ltd.     

Advertising Spending Efficiency Among Top U.S. Advertisers from 1985 to 2012: Overspending or Smart Managing?

The current study tests two competing predictions of long-term adspend efficiency: the “overspending perspective” predicts continued high inefficiency, while the “smart manager perspective” predicts improved efficiency. Longitudinal analysis of efficiency among top 100 U.S. advertisers from 1985 to 2012 using data envelopment analysis reveals that inefficiency has increased over time. Approximately 61% of top advertisers are inefficiently using their ad dollars and are overspending by an average of 34%. Findings also indicate that the Internet, a medium highly praised and utilized for the amount and depth of consumer data it generates, has not impacted overall efficiency in any meaningful way.     

Advertising agency operating efficiency

This study uses data envelopment analysis to evaluate the operating efficiency of a sample of 41 US advertising agencies, based on their profits and expenditures in six key areas (i.e., payroll to employees, other payroll-related expenses, administrative expenses, space and facilities expenses, corporate expenses, and professional fees). The analyses reveal that, on average, 5% of an agency's budget is wasted, incurring the greatest amount of waste in the administrative and corporate expenses. The tobit model also indicates that professional fees contributed the most agency inefficiency overall.     

Internet Adoption Among Malaysian Companies

The Internet technology is prevalently used in companies for business purposes. This research attempts to investigate the characteristics that are thought to influence such strategic decision of Internet adoption among the companies. Understanding the characteristics of Internet strategy in the business world helps the management to efficiently and effectively invest in Internet adoption plan. A survey was conducted to gather information from Malaysian companies. One hundred and fifteen usable responses were obtained for analysis. The findings of the study suggest the firms that wish to adopt higher level of Internet adoption should take account the support of information technology employees, overseas investment, and participation in international markets.     

The voluntary adoption of International Financial Reporting Standards and loan contracting around the world

Using a sample of non-U.S. borrowers from 40 countries during 1997 through 2005, this paper investigates the effect of the voluntary adoption of International Financial Reporting Standards (IFRS) on price and nonprice terms of loan contracts and loan ownership structure in the international loan market. Our results reveal the following. First, banks charge lower loan rates to IFRS adopters than to non-adopters. The difference in loan rates in excess of a benchmark rate between the two groups is about 20 basis points for all loans and nearly 31 basis points for London Interbank Offered Rate (LIBOR)-based loans. Second, banks impose more favorable nonprice terms on IFRS adopters, particularly less restrictive covenants. We also provide evidence suggesting that banks are more willing to extend credit to IFRS adopters through larger loans and longer maturities. Finally, IFRS adopters attract significantly more foreign lenders participating in loan syndicates than non-adopters.