A study on the wealth effects of irish takeovers and mergers

This paper presents the findings of an empirical study on the share-price effects of takeovers and mergers on the Dublin Stock Exchange. The population under study consists of all acquisitions during the period 1965–83, and it is limited to those instances in which both partners were quoted and traded on the exchange. The Market Model has been adapted to take account of market inefficiencies. Any findings are evaluated in the light of other reported research.     

The impact of reshoring decisions on shareholder wealth

Interest in reshoring, defined as the return of manufacturing and service operations from previously offshored locations to the U.S., has gained momentum recently. Yet, there is no academic evidence on the shareholder value implications of reshoring decisions. This paper analyzes the shareholder wealth effects of 37 reshoring decisions announced by U.S. firms during 2006–2015. Our results indicate that reshoring announcements result in positive abnormal stock returns. Mean (median) abnormal stock returns on reshoring announcements are 0.45% (0.29%), corresponding with a mean (median) market value change of $322.57 million ($31.60 million). Our findings imply that the benefits associated with the reshoring tend to outweigh the costs. This finding is relevant for firms faced with the decision of whether to move business activities from offshore to domestic locations. It is also of interest to policy makers who may seek to further stimulate the reshoring phenomenon.     

The effect of non-convertible preferred stock retirement on shareholder wealth

In this paper the authors examine the common stock price behavior of firms that call their non-convertible preferred stock. The findings for the entire sample of preferred stock calls are consistent with the Modigliani and Miller (MM) leverage hypothesis that preferred stock financing adds no value to the firm. However, for those firms whose preferred stock was completely eliminated from the capital structure, a significant, positive announcement effect is observed. This finding is consistent with an information signaling effect related to the earnings prospects and tax status of the calling firms and also is suggestive of a burdensome covenant effect. No evidence is found to support the free cash flow theory of common stock price reactions to preferred stock calls.     

Performance of bank mergers and acquisitions: a review of the recent empirical evidence

This review provides a comprehensive analysis of the literature on bank mergers and acquisitions with an emphasis on the last decade. The study identifies and analyzes more than 135 publications focusing on this subject. The publications are grouped along their regional focus and the three main empirical methodologies utilized in the literature. The results are documented in detail and their evolution over time is discussed. The key factors influencing the performance of bank mergers and acquisitions, as identified in the relevant literature, are grouped into three categories and evaluated according to their contribution to the success of a merger. This paper concludes with a brief discussion of the influence of managers on the performance of mergers and acquisitions and evidence on regulatory arbitrage through bank mergers and acquisitions.     

Stock market bubble effects on mergers and acquisitions

We investigate if and how mergers and acquisitions are affected by trends in the capital market, and particularly by a stock market bubble. Our main findings indicate that while the prevalence of M&A increased during the technology bubble, the pricing of M&A did not change. Moreover, the bursting of the bubble seems to have led to further cautiousness by investors, which extended throughout the years subsequent to the bursting of the bubble, even when prices on the exchange had rebounded. While we do not find robust evidence for changes in price multiples outside the exchange in concomitance with the changes on the exchange, we document changes in the information used by investors to value their targets. It seems that investors experienced a learning process in terms of the type of variables preferred, appearing to be more cautious since the bubble burst. This learning process investors undergo in concomitance to processes in the market seems to result in their being less affected by periodical or cyclical sentiments of euphoria and depression in the capital market.     

Sarbanes-Oxley wealth effects: focus on technology firms

We evaluate the shareholder wealth effects surrounding the passage of the Sarbanes-Oxley Act (SOX). While other studies have also measured wealth effects, none has separately examined technology firms. We discuss the unique characteristics of technology firms and assess whether technology firms are differentially affected. Our results show the portfolio of 218 technology firms experienced significantly more favorable wealth effects than the portfolio of 940 non-technology firms in response to events indicating stringent reform legislation. The cross-sectional analyses suggest that board independence, growth expectations, and R&D expenditures are influential factors in the differential stock price response of technology firms. Across our full sample of 1,158 firms, we find that wealth effects are less favorable for firms that likely will incur high compliance costs and more favorable for firms that are expected to benefit from improved governance and improved transparency.     

Heterogeneity in bank pricing policies: The Czech evidence

We estimate the pass-through from market interest rates to bank interest rates using heterogeneous panel cointegration techniques to address heterogeneity at the bank level in the Czech Republic. The results indicate heterogeneity in bank pricing in the short, but not in the long term. Mortgage rates and firm rates typically adjust to money market changes, but often less than fully in the long run. Large corporate loans have a smaller mark-up than small loans. Consumer rates have a high mark-up and do not exhibit a cointegration relationship with money market rates even in the long run. Next, we examine how bank characteristics determine the nature of interest rate pass-through in a cross-section of Czech banks. We find evidence for relationship lending, as banks with a stable pool of deposits smooth interest rates and require a higher spread as compensation. Large banks are not found to price their products less competitively. Greater credit risk increases vulnerability to money market shocks.     

Information effects of loan portfolio quality on bank value

In this paper, the authors test whether loan-loss reserve announcements by individual commercial banks can have contagion effects on the banking industry. It is found that increased loan-loss reserves related to LDC debt do not have an effect on other banks. However, increased loan-loss reserves related to bad real estate loans elicited a negative share price response at other banks. The signal from a loss reserve adjustment is dependent on the reason for the adjustment. While LDC debt problems were restricted to money center banks and were well publicized, real estate loan problems can be contagious throughout the industry. Consequently, signals of real estate loan problems at some banks can cause a reduced valuation of other banks.     

The effects of international off-site surveillance on bank rating changes

This article explores the determinants for off-site surveillance of short and long-term bank rating changes for rated banks in Asia, and the differences between them. An ordered logit model reveals that the CAMEL criteria for asset quality and capital adequacy and other financial variables such as asset size and mergers and acquisitions (M&A) play an important role that influences both the short-term and long-term bank ratings. Notably, it is found that higher capital to loan ratio and greater liquid asset ratio are likely to improve the probability of long-term creditworthiness, while higher impaired loan ratios are less likely to improve the short-term bank ratings. Results of the marginal effect suggest that the dividable scale helps to improve long-term creditworthiness through cross-selling tactics, synergy gains, and a better capability for fund raising.     

Cost effects of mergers and deregulation in the U.S. Rail industry

We attempt to disentangle the effects of deregulation on rail costs from those directly attributable to mergers and acquisitions, employing a translog variable cost function, based on an unbalanced panel data set of annual observations for major U.S. Class I railroads from 1974 to 1986. We find that both deregulation and mergers contributed significantly to cost savings. However, of the accumulated cost savings achieved by the six major firms involved in mergers postderegulation, we estimate that by 1986 about 91% of the reduction in accumulated costs is due to deregulation, and about 9% is directly due to mergers and acquisitions (which in turn were facilitated by regulatory reforms).     

Founder attachment style and its effects on socioemotional wealth objectives and HR system design

In this paper, we draw on attachment theory from the family science literature to develop theoretical propositions that explain variability in one of the most distinguishing features of family firms – its socioemotional wealth (SEW) preservation objectives. Three different attachment styles of founders (avoidant, anxious, secure) are argued to have an imprinting effect on the family firm regarding the relative emphasis that is placed on the preservation of a particular SEW objective (maintenance of control, dynastic perpetuation, reputation) and in turn the HR strategy it chooses to enact (compliance, commitment, collaborative). Avoidant founders are shown to emphasize control as an SEW goal leading them to choose a compliance HR strategy, while anxious founders emphasize dynastic perpetuation that fits well with a commitment HR strategy. Lastly, secure founders are shown to place a priority on reputation, which a collaborative HR strategy helps to reinforce. Contingencies for these relationships are discussed as well as the implications of our model for theory, practice and research.     

New evidence on absenteeism and presenteeism

This paper draws from two separate but complementary theories, namely social exchange theory and social identity theory, as a means of understanding the organizational antecedents of organizational commitment. Its purpose is to study the connections between the characteristics of work in the organization (a source of perceived organizational support), the characteristics of the organization (reflected in perceived external prestige), organizational commitment and turnover intentions. We test our assumption using a sample of 249 managers and a longitudinal design. The results show that perceived organizational support and perceived prestige are differently influenced by the characteristics of and in the organization. This suggests that the characteristics of the firm, reflected in the notion of perceived external prestige, play a complementary role to the characteristics of work in the organization, reflected in perceived organizational support, in shaping organizational commitment and turnover intentions.     

中国钢铁、汽车、房地产行业运行效率研究（2000-2004）——基于33家上市公司面板数据的DEA实证分析

本文运用33家上市公司面板数据和DEA方法的改进模型，从投入产出结合角度对我国2000-2004年间钢铁、汽车、房地产三大行业的运行效率进行实证研究，建立了运行效率评价模型（G0）及相应投影模型和评价指标体系；计算模型，求出各行业样本公司每年的运行效率指数、投影数据并推算出行业运行效率指数等其他相关数据，定量分析5年间三大行业运行效率的变化趋势，并进行比较研究，得出与事实相吻合的七个结论。     

New evidence on innovation and market structure

Arrow and Demsetz have disagreed on theoretical grounds as to whether the incentive to invent is likely to be greater in a competitive industry or a monopoly one. Past empirical studies of the relationship between the rate of innovation and market structure have suggested that innovation occurs at a faster rate within a competitive market structure. This paper employs more detailed data and a larger sample of markets than have most previous studies of this relationship. Using a sales-weighted measure of innovation, the paper finds a positive and statistically significant relationship between the overall rate of innovation In individual markets and the level of seller concentration. This implies that public policy which reduces concentration may, through its impact on incentives, have the side effect of reducing the rate of innovation in the markets involved.     

Audit market structure and related changes in Taiwan: the effects of CPA qualification changes and mergers

There are four material structure changes over the certified public accountants (hereafter the CPA) industry in Taiwan since 1988. They are the relaxation of CPA qualification examinations in 1988, the merger of KPMG and Cooper & Lybrand (C&L) in 1999, the reduction of CPA examination pass rates in 2001, and the merger of T. N. Soong (TNS) and Deloitte & Touche Taiwan (D&TT) in 2003. Thus, this study investigates how the four events make impact on the market concentration of CPA industry and the market competition type. Empirical data are obtained from the Census Report of Public Accounting Firms in Taiwan (1989–2003). Main findings show that the Big international accounting firms dominate the majority of the audit market. Besides, the Big international (or Big Four) market concentration during 1992–1997 is lower than that in other periods after loosing the CPA examination pass rates since 1988. Since tightening up of CPA examination pass rates in 2001, the Big international (or Big Four) market concentration display an increasing trend. Finally, accounting firm mergers in 1999 and 2003 have all contributed to the increase of market concentration of international (or Big Four) accounting firms.     

Tiebout choice and residential segregation by race in US metropolitan areas, 1980–2000

This article examines the link between local government fragmentation, or “Tiebout choice,” and segregation between black and white residents. As suggested by Tiebout [Tiebout, C., 1956. A pure theory of local public expenditures. Journal of Political Economy 64, 416–424.], fragmented local governance structures may encourage households to vote with their feet and sort into communities based on their willingness to pay for local public services. This outcome has been well documented. The nuance explored here is that, if the demand for local public services varies by race or if households have preferences for neighbors with specific racial characteristics, local government fragmentation may foster an increase in residential segregation by race across neighborhoods and jurisdictions. Results from metropolitan-level regressions suggest that increased Tiebout choice is associated with increases in black–white residential segregation within US metropolitan areas. Comparable results are obtained from household-level estimates, where the black racial composition of a household's census tract of residence is regressed on household-level controls and racially stratified measures of Tiebout choice. Results from both approaches suggest that a 10% increase in Tiebout choice would increase neighborhood segregation by no more than 1%, while segregation across jurisdictions would increase by between 4% and 7%.     

1980-2010年上海城市生态空间演进及动力机制研究

城市生态空间是城市生态系统维持正常运转的重要物质空间,对城市可持续发展具有重要的支撑作用.与此同时,城市生态空间是城市空间的有机构成,具备城市空间的一般特点,其发展演化的空间过程受到城市发展动力的影响.改革开放后的1980年至2010年间,上海城市的快速发展带来了上海城市生态空间的快速演化,重点论述了此期间上海城市生态空间演进的空间过程,并进一步分析了上海城市生态空间演进的动力机制.