The Effects of the Method of Payment and the Type of Offer on Target Returns in Mergers and Tender Offers

This paper re-examines the effects of the method of payment and type of offer on target abnormal returns around the takeover announcement, controlling for the target firm's institutional ownership. Previous studies suggest the difference in announcement-period target returns between cash offers and stock exchange offers can be explained by the difference in capital gains tax liabilities of the target shareholders and/or the difference in the information effect of the method of payment. The empirical results indicate no relation between bid premiums (or target abnormal returns) and institutional ownership of the target firm in cash offers and a systematic difference in target returns between mergers and tender offers even after controlling for the method of payment. These results are inconsistent with both the tax hypothesis and the information effect hypothesis. The evidence suggests the likelihood of future competition might be higher in tender offers than in mergers.     

Stock price firm‐specific information on the choice of stock payment in mergers and acquisitions

Previous studies on the choice of stock payment in M&A mainly focus on managerial private information. This study shows that managers also learn new firm‐specific information from financial markets in making this decision. The acquirer's stock price firm‐specific information increases the stock‐payment‐to‐Q sensitivity. The target's stock price firm‐specific information decreases the stock payment probability. Further analyses on deal and firm characteristics as well as shareholder wealth in stock mergers support the managerial learning argument. Overall, this study highlights a new set of information that affects the form of merger payment in mergers and acquisitions.     

REIT Splits and Dividend Changes: Tests of Signaling and Information Substitutability

Recent work on stock splits have attempted to relate the information value associated with splits with that from dividends signaling. This paper extends this genre of research by evaluating the issue of dividend predictability using REIT data where the self-selection issue associated with dividend payment is minimized. The use of REIT data also eliminates the “differential expectations” effect for non-dividend paying firms, thus rendering a more robust test of the information substitutability hypothesis postulated by Nayak and Prabhala (2001). To the extent that stock splits are signals of future cash flows, we further examine the question of leverage predictability associated with REIT splits, particularly for highly levered firms. We find that REITs that use dividend changes as a signaling mechanism prior to splits have smaller price responses to the private information revealed by splits than those that do not provide such signals, consistent with the notion that dividends and splits are indeed information substitutes. Further, REIT splits provide useful information about future dividend and leverage changes.     

Nonprofit executive incentive pay

We utilize information only recently disclosed on Form 990 to examine the use, and consequences of, incentive pay at nonprofit organizations. Bonuses are common in nonprofits, as we observe that approximately 45% of the 44,000 organization-year observations in our sample reported paying CEO bonuses. We find that the bonuses are positively associated with profitability, competition from other nonprofits, firm size, available cash, and use of compensation consultants and committees, while negatively related to board oversight, donations, and grants. Our results also suggest that donors look unfavorably at the payment of bonuses; that is, bonuses are associated with lower future donations. Nonetheless, we find evidence consistent with the payment of bonuses incentivizing nonprofit executives, as despite reduced fundraising, future profitability and program services are positively associated with current bonus compensation.     

Value Creation and Governance Structure in Reit Mergers

The Umbrella Partnership REIT (UPREIT) structure has become the dominant form of organization for U.S. REITs. We examine the utility of this corporate structure from a new perspective, finding evidence that convertible securities issued by UPREITs in payment for properties acquired from private sellers often function as instruments of corporate control, aligning the interests of new executives acquired in the transaction with those of the purchasing REIT’s shareholders. We also find evidence that these financial arrangements are used to signal information regarding the firm’s future prospects. We use a sample of 53 public–private mergers 1995–2001, in which the acquirer is a publicly traded REIT. We find that wealth effects from central managerial changes are positively related to the degree to which payment takes the form of convertible equity units of UPREIT subsidiaries, and to the minimum lock-up period for those units prior to conversion. The positive effects of longer lock-ups are evidence that financing structure can be used to reduce agency and information costs related to managerial restructuring in public–private mergers.     

The Relationship between Earnings,Funds Flows and Cash Flows: Evidence for the UK

Recent UK information content studies have provided evidence of a significant relationship between earnings and share prices, as in the US, but have also identified an apparent lack of information content for operating cash flow, which is in marked contrast to findings from US research. This paper provides direct evidence on the relationship between earnings, funds flows and cash flows in the UK during the period 1965–84, using tests of association and predictive tests based on a research methodology applied by Bowen, Burgstahler and Daley (1986) to US data. The results provide UK evidence on the contemporaneous and predictive relationships between measures of earnings, funds flows and cash flows which are generally consistent with the US findings of Bowen et al. and which do not support the view that earnings in the UK are superior to cash flows as predictors of future cash flows.     

易宝唐彬：让金融拥抱互联网时代

随着互联网的发展．网络已成为我们日常生活中的必需品,通信、资讯．购物．支付、投资理财等方面．互联网的身影无处不在。数年问,互联网已经悄然改变着我们的经济消费和生产生活。日前．《国际融资》杂志记者在易宝北京总部专访了易宝支付有限公司（简称：易宝）首席执行官及联合创始人、互联网金融千人会轮值主席唐彬先生。作为互联网领域最早的进入者之一．他对互联网发展的脉络有着清晰的掌控,对传统行业依靠互联网转型有着独特的视角。作为网络支付平台的领军人物．他看到了互联网金融现阶段发展的痛点．也看到了未来发展的亮点。     

An empirical investigation of procurement contract structures

This article presents a model of procurement contracting with asymmetric cost information and investigates whether two of the model's predictions are consistent with actual contracts between hospitals and California's Medicaid program. The article first tests for the presence of a fixed-price payment region where Medicaid's payments are independent of hospitals' actual (but unobservable) production costs and then tests whether the size of the fixed-price region depends upon expectations about hospitals' costs. To conduct these tests, the article must first estimate hospitals' "unobservable" costs attributable to Medicaid patients. The article finds evidence of a fixed-price region but cannot confirm that the size of the fixed-price region depends upon expectations about hospitals' costs.     

支付系统安全控制研究

现代支付系统最主要特征之一就是充分利用现代化信息技术,实现支付信息的高效传输、处理和存储。随着科学技术的高速发展和信息技术的广泛运用,支付系统面临的运行风险也日益严重。近日美国信用卡个人数据信息泄露事件,为支付系统安全控制敲响了警钟。本文根据国际信息安全管理标准,分析和总结了我国支付系统存在的弱点与威胁,研究了对威胁进行评估的定量方法,并提出了我国支付系统安全控制方案。     

The Impact of the Inpatient Prospective Payment System and Diagnosis-Related Groups

Abstract

The outpatient prospective payment system for the Medicare program became effective Aug. 1, 2000, as mandated by the Balanced Budget Act of 1997. This outpatient program complements Medicare’s inpatient prospective payment system, which was introduced in 1983. A survey of the literature over the past 20 years is undertaken to review the effects of the inpatient prospective payment system and diagnosis-related groups (DRGs) on inpatient hospital utilization, expenditures, and outcomes. The level of the DRG payment has been questioned, as well as the process of adjusting the payment levels from one year to the next. In addition, past research has speculated that the DRG classification may not be sensitive to severity and is subject to coding ambiguities. These conclusions can be used as input to future research on the new outpatient program, as well as updating research on the inpatient program.     

Electronic payment,natural environment and household consumption: Evidence from China household finance survey

In this paper, whether and how electronic payment affects households' consumption decisions are discussed. Data of China Household Finance Survey from 2011 to 2017 are adopted to carry out empirical tests. It is found that electronic payment would significantly induce households to consume more in discretionary goods. The potential mechanism lies in that the electronic payment cuts down transaction costs of venturing out or carrying banknotes that may hinder consumption. Using the weather conditions near the household location, this paper finds that the electronic payment would increase a household's discretionary consumption more significantly when the rain is heavy or the sunshine is weak. But necessary consumption like medical care is unaffected. It is found that electronic payment increases consumption more significantly in urban, well-educated and young households.     

移动支付对中国家庭储蓄率的影响

中国的高储蓄问题由来已久,降低家庭储蓄率、提高消费有助于形成以国内大循环为主体、国内国际双循环相互促进的新发展格局。本文基于2017年和2019年中国家庭金融调查(CHFS)数据,实证研究了移动支付对中国家庭储蓄率的影响。结果表明,移动支付显著降低了家庭储蓄率。进一步研究发现,缓解流动性约束、信贷约束和扩大社会网络是移动支付降低家庭储蓄率的主要途径。此外,移动支付显著降低家庭为应对健康风险、医疗风险、失业风险、收入风险等不确定性而进行的预防性储蓄。地区异质性分析显示,移动支付对家庭储蓄率的影响在西部地区、四五线城市、农村地区更大。家庭特征异质性分析显示,移动支付对家庭储蓄率的影响在农业户口家庭、中低收入家庭、低受教育水平家庭中效果更加突出。本文研究为理解中国高储蓄问题提供了新的视角,可为制定相关政策提供参考依据。     

Asymmetric information and a theory of compensating balances

This paper derives an economic justification for the existence of compensating balance requirements using an equilibrium model of asymmetric information. Because bank profitability depends upon the probability distribution of a borrower's future cash requirements, and assuming this distribution is known by the borrower but not by the bank, compensating balance requirements can be used by the bank as a screen to distinguish among borrowers. Compensating balances are shown to exist without invoking assumptions of monopoly banks or non-maximizing behavior, and these balances need not be explained as a method of indirect payment for bank services.     

Trade Credit Terms: Asymmetric Information and Price Discrimination Evidence From Three Continents

Abstract:   Trade credit terms offer firms contractual solutions to informational asymmetries between buyers and sellers. The credit period permits buyers to reduce uncertainty concerning product quality prior to payment, while the seller can reduce uncertainty concerning buyer payment intentions by prescribing payment before/on delivery or through two‐part payment terms and other mechanisms. Variation in trade credit terms also offers firms price discriminating opportunities. This study, drawing on the responses of 700 large firms in the US, UK and Australia, explores trade credit terms through the twin objectives of reducing information asymmetries and discriminatory pricing. Support is found for both theories.     

智慧金融与金融云计算

本文分析了我国金融信息化所处的发展阶段及其特点,介绍了智慧金融和金融云计算的基本概念及其它们之间的关系,通过支付宝快捷支付和阿里云计算的案例分析,介绍第三方电子支付企业如何利用云计算技术进行电子支付服务模式创新。针对云计算服务的数据即服务（DaaS）,初步提出了金融数据资源的五层次模型以及对应的金融信息服务模式,并对上海发展金融数据信息服务产业提出了建议。     

Further evidence on the predictive accuracy of the verbal probability scale: The case of household bill payments in Australia

This study examined how well the verbal probability scale predicted shortterm penetration levels for methods of paying household bills. The overall error of prediction was 17 per cent (not 17 percentage points but 17 per cent of the estimated value). This is a good result in comparison to previous research that has used attitudinal, intentions or probabilistic measures. The verbal probability scale was markedly inaccurate for one particular bill payment method, but this is attributed to respondents' misinterpretation of the de.nition of this payment method when providing responses. The major source of error was respondents who gave a zero probability for using a particular method, but then did use that payment method in a subsequent fourweek period. This source of error is consistent with previous research on the prediction of future behaviour. The study also found that this particular source of error was not independent among respondents. Respondents who made this particular error of prediction for one bill payment method (ie gave a zero probability but then used that payment method) were more likely to do the same for another bill payment method. Overall, the results support the aggregate-level predictive ability of the verbal probability scale to estimate penetration levels. The study, however, highlights that all methods, whether attitudinal, intentions or probabilistic estimates of future demand, suffer from a degree of measurement error. If probabilistic estimates are to be used as an intermediate variable against which the impact of a marketing intervention is judged, the planned impact of that intervention would need to be large enough not to be confounded with measurement error.     

Earnings Response Coefficients and Dividend Policy Parameters

In a seminal paper. Ball and Brown (1968) documented a positive statistical association between earnings surprises and stock returns around an earnings announcement. They concluded that accounting earnings conveyed ‘useful’ information to the market. However, the question of how accounting earnings convey useful information is still being understood. Recent work on this topic has found that current accounting earnings aid investors and analysts in predicting future accounting earnings. Few studies, however, have examined the usefulness of current earnings for predicting other value-relevant attributes. A model by Ohlson (1989a) suggests that investors are also interested in the relationship between current earnings and future dividends. Ohlson's model is supported by empirical tests in this paper which show that the relationship between current earnings and future dividends is significant in explaining cross-sectional variation in earnings response coefficients (ERCs). A second result of interest is that information in dividends substitutes for that in accounting earnings. We find that dividend policy parameters reflect information contained in current earnings. These results add new insights on the information revealed through the analysis of ERCs. Consistent with logic presented here, a symmetrically opposite result is found with respect to dividend response coefficients. The informativeness of earnings (dividends) is found to be negatively (positively) related to the information content of dividends.     

The option to stock volume ratio and future returns

We examine the information content of option and equity volumes when trade direction is unobserved. In a multimarket asymmetric information model, equity short-sale costs result in a negative relation between relative option volume and future firm value. In our empirical tests, firms in the lowest decile of the option to stock volume ratio (O/S) outperform the highest decile by 0.34% per week (19.3% annualized). Our model and empirics both indicate that O/S is a stronger signal when short-sale costs are high or option leverage is low. O/S also predicts future firm-specific earnings news, consistent with O/S reflecting private information.     

非金融支付机构信息安全风险评估模型研究

针对非金融支付机构信息安全管理相对薄弱这一现状,本文以信息安全管理国际标准ISO27001为理论基础,根据非金融支付机构的业务运作模式、信息化基础设施建设及运维模式的特点,通过分析资产、脆弱性、威胁以及风险等关键要素间的相互关系,采用定性和定量评估相结合的方式,从而形成一套较为完善的非金融支付机构信息安全风险评估模型,为人民银行进一步加强非金融支付机构技术监管,保障金融稳定提供科学的方法论支持。     

Payment card rewards programs and consumer payment choice

By using a unique data set that contains detailed information about consumer payment choice and consumers’ attitudes toward each payment method, we estimate the effects of payment card rewards on consumer choice of payment methods. Our approach allows us to control for consumer heterogeneity. We find the effects of rewards to be statistically significant across five retail types. Our policy experiments suggest that for the sub-population who hold both credit and debit cards, removing rewards would increase their share of paper-based payment methods (i.e., cash and checks), measured in terms of in-store transactions, by no more than 4 percentage points.