The influence of private equity and venture capital on the post-IPO performance of newly-public acquirers

This paper examines the influence of private equity (PE) and venture capital (VC) ownership on the post-initial public offering (IPO) performance of newly-public acquirers. Our results show that acquirers with PE- or VC-backing at the time of the IPO perform better long-term than acquirers without such backing. More importantly, while acquirers without financial backing experience negative long-run returns from first-year acquisitions, acquirers with continued PE- and VC-backing perform significantly better when making acquisitions within the first year after going public. However, acquiring firms and investors should be aware that for mergers in the second and third year post-IPO, continued VC ownership has a detrimental long-term impact. In contrast, higher levels of continued PE ownership tend to have a positive relationship with long-run performance.     

Defensive acquisitions in the banking industry: The takeover premium hypothesis

We define defensive acquisitions as takeovers made by a firm so as to become so large that it becomes an unattractive target itself. A sample of defensive acquisitions in the banking industry is used to test the takeover premium hypothesis. Under this hypothesis, the defensive acquirers lose because a takeover premium that previously existed in their prices is deflated while the takeover premium increases for smaller competitors because they become more likely targets. We find that the defensive acquirers experience significant negative abnormal returns on the announcement day, and that smaller competitors have positive abnormal returns on the announcements of defensive acquisitions. In contrast, larger competitors do not react to the announcements. The results are consistent with the takeover premium hypothesis.     

Acquirer Characteristics and Method of Payment: Evidence from Chinese Mergers and Acquisitions

This study examines the effects of acquirer characteristics on method of payment of Chinese acquirers on the basis of a sample of 1370 mergers and acquisitions that occurred between 1998 and 2008. Using both buy and hold abnormal returns and calendar time abnormal returns approaches, we find that Chinese acquirers experience pre‐acquisition abnormal returns ranging from 14.29% to 121% over the period of 12–36 months prior to the acquisition relative to three different portfolio benchmarks. In the pre‐bid period, acquisitions financed by shares outperform acquisitions financed by cash. However, in the post‐acquisition period, we document no significant difference between cash‐financed and equity‐financed acquisitions. The study also finds that acquirer market value, Tobin's Q, state ownership and leverage have significant effects on the method of payment. Copyright © 2013 John Wiley & Sons, Ltd.     

Exploring the circular economy paradigm: A natural resource-based view on supplier selection criteria

The paradigm of circular economy and the transfer of its principles to supply chain management has recently received much attention from researchers and practitioners. Limited natural resources, governmental legislation, and social responsibility for environmental preservation are the main factors for the development of circular supply chains. Especially in the automotive industry, critical materials are used to produce electric vehicles, reinforcing the importance of circularity for the industry. As the first stage of the supply chain, suppliers have a considerable influence on creating self-sufficient production systems, and in the automotive sector, a low level of vertical integration is important. Therefore, selecting suppliers is an enabler for circular supply chains, but this decision is a complex process due to multiple, partly conflicting criteria. To contribute to the knowledge in this research area, this study applies a fuzzy decision-making trial and evaluation laboratory approach for supplier selection in a circular supply chain in a case study of electric vehicles. First, a set of criteria for supplier selection in circular supply chains was identified based on a literature review and was systematically categorized based on the natural resource-based view. Afterward, the criteria were assessed and refined by experts with a strong procurement background in the automotive industry. Second, the experts were interviewed for value collection, and finally, the mutual influence of the criteria was determined. The results show that the most important criteria for circular supplier selection in electric vehicle supply chains are environmental standards, environmental-related certifications, resource consumption, and waste generation. Regarding the natural resource-based view, short-term focused criteria addressing the capability of pollution prevention have a higher importance compared to long-term criteria that drive sustainable development. In addition, this study classifies the criteria into the categories of causes and effects, discusses the prominence of the criteria, and presents a strategic map showing the mutual influences of the criteria. The results contribute to the theoretical and practical discussion on circular supply chains by identifying the key criteria for circular supplier selection and providing decision-making support for procurement managers.     

Consolidation in the financial services industry: Are there industry gains for acquisitions of security firms?

We examine the revaluation of target security firms, their respective acquirers, both banks and non-banks, and their corresponding rivals before and after the major consolidation wave of 1994 to 1997. We find that target security firms as well as their respective acquirers are favorably revalued at the time of their acquisitions. The valuation effects are more favorable for non-bank acquirers and for acquirers with more growth potential and a lower degree of financial leverage. This suggests that investors expect greater synergies for mergers by better capitalized, faster growing, non-bank acquirers. In contrast to previous merger studies that generally find negative wealth effects for acquiring firms, cumulative abnormal returns (CARs) are on average positive for acquirers, targets, and portfolios of competing security firms, with the highest positive CARs for targets.     

Autocorrelation,return horizons,and momentum in stock returns

In this study we examine Lewellen’s (Rev Financ Stud 15:533–563 2002) claim that momentum in stock returns is not due to positive autocorrelation as behavioral models suggest. Using portfolio-specific data, we find the autocovariance component of the momentum profit to be negative, suggesting no return continuations. However, we also find that the autocorrelations calculated from short-term (e.g., monthly) returns are quite different from long-horizon (e.g., annual) autocorrelations. While the first-order autocorrelations of 6– and 12-month returns tend to be negative, the autocorrelations across twelve lags in monthly returns of the industry, size, and B/M portfolios are in general positive. Our results show that these portfolios exhibit return continuations when returns are measured on a monthly basis. Therefore, our finding appears to be consistent with the behavioral models, which suggest positive autocorrelation in stock returns.     

Supply chain integration and shareholder value: Evidence from consortium based industry exchanges

Recent trade and academic literature point to the importance of supply chain integration among partners as a key determinant of value creation. This paper analyzes the shareholder value effects of setting up industry exchanges, a prominent mechanism used to achieve supply chain integration. Shareholder value effects are estimated by measuring the stock market reaction (abnormal returns) associated with announcements to form or join industry exchanges. We find that abnormal returns from participation in industry exchanges are positive but only marginally significant in the whole sample of 144 firms in 18 exchanges formed during 2000–2001. In the sub-sample of 88 exchange founders who were part of the original announcements to form the exchange, the abnormal market reaction is about 1% and significant. We also find that firms with greater bargaining power and higher process efficiency benefit more from participation in industry exchanges.     

谈柳州汽车零部件产业技术创新存在的问题及对策

汽车工业是广西的重要支柱产业,当前已形成了以柳州为龙头,辐射桂林、南宁、玉林的汽车产业集群.汽车零部件在整个汽车产业当中的附加值占到70％,因而汽车工业的发展,最核心的还是汽车零部件的发展.汽车和发动机整车主机的迅猛发展给零部件企业带来了很大的发展机遇和压力,生产的专业化、模块化、系统化要求和采购供货的全球化和模块化使零部件跟上主机发展提出了新要求,生产的集群化和供货的属地化越来越迫切,如何走出一条具有广西特色的汽车零部件产业技术创新发展之路,文章对此提出了相应的对策及建议.     

An empirical analysis of green supply chain management in the German automotive industry

The purpose of this paper is the empirical investigation of the status quo of green supply chain management in the German automotive industry from a practitioner's point of view. Several aspects of green supply chain management, such as the point of time of implementation, the driving forces, the relevance of intended goals and their particular realization and the adoption of eco‐programs with suppliers and customers as well as internal and external barriers are analyzed. Furthermore, the link to different performance criteria is tested by inductive statistics in order to show the potential of green supply chain management for competitiveness. For this study, managers from the automotive supply industry in Germany were asked about their estimations in this regard. The main conclusion is that managers express the need for green supply chain management on the one hand but also see corresponding problems in terms of required resources on the other hand. Furthermore, the analyses show that green supply chain management leads to higher performance in terms of several performance criteria. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Green supply chain management in the automotive industry: A study in Brazil

The auto industry is experiencing a time of restlessness, which stems from several elements that currently threaten the stability and status quo of its supply chains. Among these elements are autonomous driving, connectivity, electrification, and trip sharing that has led to new forms of mobility. In this context, this article presents the results of a research, which had three main objectives: (1) to identify the green supply chain management (GSCM) practices most commonly implemented in all industrial sectors worldwide, (2) to evaluate how these practices are considered by professionals in the automotive industry and by researchers working on the subject in Brazil, and (3) to identify and evaluate which practices are most widely adopted within these companies and/or supply chains and influence their environmental performance. The research method combined a qualitative research step (Delphi) with another quantitative one (survey). The results show that most of the reality of the automotive industry in Brazil is in line with studies on GSCM practices worldwide, but some specific findings have also been identified and discussed.     

基于产品生命周期的汽车产业供应链设计

在现有理论成果基础上,选取具有典型意义且相对成熟的汽车产业为对象,分析了以整车制造商为核心企业的汽车产业供应链的特点,结合产品生命周期引入、成长、成熟及衰退期等不同阶段的供应链设计,提出了不同生命周期阶段符合汽车产品的供应链策略。     

Who is more visionary in mergers: Commercial vs. investment banks

Early papers concerning bankers on board usually focus on the rationale of bank entry and such effects on company performance. Recently, Güner, Malmendier, and Tate (2008) started to look at the different effects of the bankers with different expertise on the investment strategy and post-entry performance of the firms on which they have board seats. This study extends this line of research to further examine the relationship between the change of different types of financial professionals’ equity holdings of acquiring firms prior to merger completion dates and these acquirers’ post-merger performance. Using 381 U.S. listed acquirers during 2000–2005, we find that the changes of the ownership of commercial banks and insurance companies are positively related to the acquirers’ short-term performance. However, only the changes of the ownership of investment bankers are negatively related to the bidders’ long-term performance, implying that, due to conflict of interests, investment bankers probably aim at the increase of the short-run post-merger performance of the acquiring companies of which they have relatively larger equity holdings.     

Investment banks advising takeover targets

Should takeover target firms hire top-tier investment bank advisors? For a sample of mergers and acquisitions between publicly traded U.S. acquirers and targets, in deals in which targets hire top-tier banks, targets earn higher premiums and abnormal returns; the probability of stock payment is lower, especially when bidder stock is potentially overvalued; acquirers, however, do not necessarily earn lower abnormal returns, and combined returns are higher. Controlling for self-selection does not erode, but, in some cases even strengthens the results. The evidence suggests that top-tier investment banks advising targets benefit shareholders of client firms by making better deals, instead of simply bargaining against the acquirers. The findings shed light on the role of advisor incentives when linking advisor quality and shareholder wealth.     

Influence of acquirer boards on M&A value creation: Evidence from Continental Europe

We examine how the size and the composition of acquirer boards are associated with shareholder abnormal returns for 2,230 M&As made by listed firms in Continental Europe. Although board size proves insignificant, our findings do offer some evidence as to a beneficial effect of board diversity on M&A value creation. Gender diversity appears marginally positively associated with acquirer shareholder abnormal returns. The fraction of foreign directors is in general not significantly positive, unless the rule of law in the acquirer country is weak. Nonetheless, nationality diversity in the board turns out harmful in purely domestic takeovers. The influence of age diversity is marginally positive, yet only in domestic and horizontal takeovers. Next, the fraction of independent directors has a robust positive effect on the acquirer CAR, while directors with multiple board appointments prove valuable especially through preventing firms from pursuing poor takeovers. Finally, CEO duality is detrimental only in industry‐diversifying deals initiated by acquirers that are not controlled by an individual or a family shareholder. Any negative CEO‐duality effect is mitigated when the acquirer‐country rule of law is strong.     

Spectral analysis of public utility returns

This study tests the practicality of using the capital asset pricing model to evaluate public utility returns. To this end, utilities are grouped into portfolios, in accordance with their industry classification and their prime regulatory authority. Then their relationship to a market index of unregulated securities is analyzed vis-à-vis the relationship between this index and several control securities believed, a priori, to be of commensurate risk. These relationships are analyzed in two steps: the first step investigates the real trend movements over time; the second, the association of the wide-sense stationary components of these return processes. Bivariate spectral analysis is used in the second phase of this investigation. This enables us to analyze the time lags between return processes, and to break up our estimates by duration of cyclical movement and compare the long-term and short-term estimates.We conclude that ordinary least squares estimates of utility β's lack value to either investors or regulators. This is due to the highly unstable relationship between utility returns and the market index and to the existence of a lag between these processes. One explanation for this finding is regulatory lag and the uncertainty (as well as the actual content) surrounding regulatory authority decisions.     

以郑州日产为例探索调达物流的应用条件

随着汽车行业竞争的日益剧烈,国内外主机厂纷纷开始寻找汽车供应链的优化方案。其中,库存水平与运输成本是其关注的重中之重,但二者是一对矛盾体,存在此消彼长的关系。调达物流利用其规模经济性,可以有效地解决这一矛盾,使主机厂以适当的运输成本,大幅降低其库存水平。尽管调达物流有诸多好处,但由于各个主机厂自身情况的复杂性,其实施调达物流的效果也不尽相同。文章将参考郑州日产实施调达物流的经验,探索调达物流在汽车行业的应用条件,以期为同类企业实施调达物流提供一定的指导。     

Recent evidence on the short-term and long-term performance persistence of emerging-market mutual fund returns

This paper analyzes the performance persistence of US-based emerging-market mutual funds. We use a sample of 275 actively managed funds between July 1989 and December 2020 and regress their returns on emerging-market benchmark portfolios. On average, the funds had a significant negative alpha. Contrary to some earlier evidence, we document that the short-term consistency is entirely driven by losses of underperforming funds. The return spread between the short-term winners and losers generates a significant positive alpha that can be fully explained by the momentum in emerging-market stocks. We find no evidence of any long-term regularities. Our findings show that the observed funds exhibit very similar behavior to their developed-market counterparts and may contribute to resolving some inconsistencies in the earlier results.     

Performance persistence of fixed income mutual funds

The “winner-winner, winner-loser, gone” methodology allows tests for short-term performance persistence for government and corporate fixed income mutual funds from 1990 to 1999. Persistence occurs when “winner” (loser) funds remain “winner” (loser) funds. If intermediate-term (long-term) bond returns are higher than long-term (intermediate-term) bond returns for successive years, the z-statistic is positive. Persistence is negative in the opposite case, and the pattern holds for longer lag periods. Statistical significance and consistency between the sign of persistence and bond returns indicates persistent returns on bond funds, but the nature of persistence is driven by changes in interest rates. The authors would like to acknowledge the research assistance of Michael Serra and Michael Wieczorek. This research was supported in part by the McDonough School of Business and the Capital Markets Research Center at Georgetown University.     

Delivering the ‘3-day car’—the strategic implications for automotive logistics operations

It is now becoming apparent that the current ‘stock-push’ vehicle supply in the automotive industry by fulfilling the large majority of orders from existing stock is no longer a viable proposition. Cost pressure from rising stock levels in the market and high discounts needed to sell these vehicles have forced vehicle manufacturers to rethink their order fulfilment strategy in favour of stock-less ‘build-to-order’ systems. More responsive order fulfilment at vehicle manufacturer level however will not only require flexible and responsive component supply and vehicle assembly, but will also have wide ramifications for all logistics operations in the auto supply chain. Based on findings of the 3DayCar research programme, this paper compares the implications on inbound, outbound and sea transportation logistics, leading to the development of a strategic framework for future automotive logistics operations.     

投资房地产可以对冲通货膨胀风险吗——以中国内地为例

本文基于费雪效应,考察了中国内地过去20余年间通货膨胀率与房地产收益率的同期关系、长期均衡关系,以及在不同收益率条件分布下二者的关系。结果表明,短期内投资房地产不能对冲通货膨胀,但从长期来看,投资房地产却是对冲通货膨胀的有效工具。然而在房地产收益率处于"极端"情形下,盲目投资房地产不但不会抵御通货膨胀风险,还会带来更大的损失。