R&D and performance persistence: Evidence from the United Kingdom

There is compelling evidence from both the United States and United Kingdom suggesting that R&D investment is positively related to operating and/or market performance. This study extends prior research on R&D and valuation by further examining the sustainability or persistence of operating growth and market performance as a result of R&D investments.We use a large dataset of U.K. companies during the period 1990–2003 and our findings confirm the relation between R&D intensity and consistent growth in Sales and Gross Income, but only in the cases when a firm needs to engage in R&D activity because of the industry in which it operates. Moreover, our evidence indicates not only a positive relation between R&D intensity and subsequent risk-adjusted excess returns among firms that engage in R&D as testified by prior literature, but we also show that R&D intensity improves persistence in excess stock returns: the highest R&D-intensity firms are found to earn higher risk-adjusted excess returns more consistently than the sample median return, compared to lower R&D-intensity firms, as well as firms with no R&D. We interpret this finding as consistent with at least some form of market mispricing.     

The relationship between managerial ownership and firm performance in high R&D firms

Several studies have examined the relationship between managerial ownership and firm performance/value (e.g., [Journal of Financial Economics 20 (1988) 293; Journal of Financial Economics 27 (1990) 595; Journal of Corporate Finance 5 (1999) 79]). Using different samples, these studies provide general support for the argument that increases in managerial ownership create countervailing interest alignment and entrenchment effects, leading to a nonlinear relationship between managerial ownership and firm performance. However, the actual form of this nonlinear relationship differs across the studies.The present paper examines the relationship between managerial ownership and performance for high R&D firms that are listed on the NYSE, AMEX and NASDAQ. We find that Tobin's Q initially declines with managerial ownership, then increases, then declines again and, finally, increases again—a W-shaped relationship. The findings from our study point to the importance of industry effects in the relationship between managerial ownership and firm performance.     

Technological trajectories and R&D for environmental innovation in UK firms

This article reports results of a 1993 questionnaire survey of how UK companies have been innovating technologically in response to environmental pressures. The survey sought to identify factors stimulating UK firms to innovate more environmentally friendly products and processes, and to investigate the changes in R&D activity they have undertaken to facilitate such innovation. In devising the questionnaire and interpreting the results, we have been strongly influenced by the theoretical frameworks developed over the past 15 years which describe technological developments in terms of ‘selection environments’ and ‘technological trajectories’. Useful though such frameworks are, we conclude that they need to be supplemented by concepts derived from the sociology of technology and from studies of corporate strategies.     

Capitalization of R&D costs and earnings management: Evidence from Italian listed companies

The capitalization of research and development (R&D) costs is a controversial accounting issue because of the contention that such capitalization is motivated by incentives to manipulate earnings. Based on a sample of Italian listed companies, this study examines whether companies' decisions to capitalize R&D costs are affected by earnings-management motivations. Italy provides a natural context for testing our hypothesized relationships because Italian GAAP allows for the capitalization of R&D costs. Using a Tobit regression model to test our hypotheses, we show that companies tend to use cost capitalization for earnings-smoothing purposes. The hypothesis that firms capitalize R&D costs to reduce the risk of violating debt covenants is not supported.     

Stock price and systematic risk effects of discontinuation of corporate R&D programs

We extend the evidence on whether investors impound efficiently into stock prices new disclosures about corporate R&D programs. We find that firms that disclose the discontinuation of some of their R&D programs experience a significant negative announcement-period stock price response which is worse for growth stocks, for small-size firms, and for firms with low operating cash flow. We find no evidence that R&D discontinuing firms experience an event-induced change in their systematic risk. We find evidence of a one-year-long price reversal; however, it is not robust to controlling for possible risk dimensions for firms with R&D capital that the three-factor model does not capture. Evidently, investors' initial response at disclosures of discontinuation of corporate R&D programs is efficient.     

The Changing Nature of Contracting and Trust in Public‐Private Partnerships: The Case of Victorian PPP Prisons

This paper examines shifting constructions of contracting and trust that are manifest between pre‐2000 and post‐2000 public‐private partnerships (PPPs) providing prison facilities and/or services in the Australian State of Victoria. As such, this paper is significant because it outlines longitudinal insights into the nature of changing practices sustaining these PPPs. The post‐2000 period examined reflects a change of government and the policy context. Our examination is based on a range of primary and secondary documents. The primary documents comprise three pre‐2000 Prison Services Agreements and two post‐2000 Facilities Services Agreements. A number of government and other reports constitute the secondary documents consulted. While there are many substantive similarities between the contracts, we find five main areas of changed contracting practices over the period examined. These relate to: first, the objectives of the PPP prisons; second, risk management practices; third, the approach to performance measurement and reporting; fourth, the structuring of incentive and payment mechanisms; and fifth, the emphasis on collaboration. Overall, we find that the post‐2000 contracts promote a more overt development of goodwill trust and relational contracting, building on presumptions of contractual and competence forms of trust. However, quite different outcomes have been achieved from particular contractual contexts. Our study suggests that in complex PPP contracts, the influences of both the transacting parties and the transaction environment have been insufficiently recognized in the literature on PPPs.     

银行业市场竞争对企业技术创新的影响研究

银行贷款是企业创新的重要融资来源,银行业市场的变化影响着企业技术创新的融资环境.基于2008-2014年沪深A股上市公司的实证检验发现:银行市场竞争性的提高有利于缓解企业的融资约束,促进企业技术创新.企业规模对中小企业的技术创新有正向的影响,对大型企业存在负的效应.银行业市场竞争对企业技术创新的影响也因企业规模不同而不同,中小企业受到的融资约束明显,银行业竞争度的提高更有利于促进中小企业的技术创新.     

Public—Private Partnerships in Ireland: Policy and Practice

Ireland's National Development Plan 2000–2006 includes a significant programme of public—private partnerships (PPPs). The Irish Government's policy on PPPs has been shaped to ensure that capital investments under PPP are not included when calculating key fiscal aggregates. This article traces the origins of Ireland's PPP programme and outlines the extent of PPP activity to date. It details how the PPP programme has failed to make an impact in terms of addressing Ireland's infrastructure deficit and examines three particular cases where the PPP model has been applied.     

The Demise of Investment Banking Partnerships: Theory and Evidence

In 1970 the New York Stock Exchange relaxed rules that prohibited the public incorporation of member firms. Investment banking concerns went public in waves, with Goldman Sachs the last of the bulge bracket banks to float. We explain the pattern of investment bank flotations. We argue that partnerships foster the formation of human capital and we use technological advances that undermine the role of human capital to explain the partnership's going‐public decision. We support our theory using a new data set of investment bank partnership statistics.     

Tax Principles,Product Differentiation and the Nature of Competition

We analyze the choice between the origin and destination principles of taxation when there is product differentiation and Bertrand competition. If taxes are redistributed to consumers and demand is linear the origin principle dominates the destination principle whatever the degree of product differentiation and extent of economic integration. With nonlinear demand the origin principle dominates if there is sufficient economic integration. When the social value assigned to tax revenue is higher than the private value, the destination principle dominates for intermediate values of product differentiation and economic integration. The same results are also shown to hold with Cournot competition. JEL Code: F12, H20     

影响竞争政策阶段性选择的主要因素

竞争政策是以竞争法律为基础,是影响一国经济社会发展的重要经济政策之一,在政府赖以调节的各项经济政策中处于基础性地位。竞争政策的制定实施绝不能盲目跟从,必须结合本国的具体国情和国际发展环境,作出适合本国发展阶段的选择。影响一国竞争政策阶段性选择的因素众多,而以一国的经济社会发展战略、市场经济发展程度、政府管制宽松程度、竞争文化发育水平、经济危机以及国际经济环境因素六大因素尤为关键。     

社会责任信息披露对企业资本结构的影响——基于市场竞争度的视角

社会责任信息披露是企业与利益相关者进行沟通的重要渠道,亦是履行企业社会责任的重要手段,外部利益相关者可借此了解企业的经营策略。以2012年沪深两市上市公司为截面样本,通过实证研究发现：企业社会责任信息披露与资本结构之间呈现“U”型结构,且该结构在市场竞争激烈时显著,在市场竞争度低时不显著,说明市场竞争强化了企业社会责任信息披露与资本结构之间的关系。     

The Rise and Rise of Public Private Partnerships: Challenges for Public Accountability

The increasing popularity of public private partnerships (PPPs) thrusts on to centre stage the inherent tension between accountability and transparency on the one hand, and efficiency and commerciality on the other. This paper explores a number of accountability issues that are exacerbated by a public private partnership structure. The organisational structure of a PPP, where much of the activity associated with the delivery of a public service is embedded in a private-sector entity, increases the likelihood that public scrutiny of decisions and actions is significantly inhibited     

The Effect of CEO Extraversion on Analyst Forecasts: Stereotypes and Similarity Bias

In an experiment with professional analysts, we study their reliance on CEO personality information when producing financial forecasts. Drawing on social cognition research, we suggest analysts apply a stereotyping heuristic, believing that extraverted CEOs are more successful. The between‐subjects results with CEO extraversion as treatment variable confirm that analysts issue more favorable forecasts (earnings per share, long‐term earnings growth, and target price) for firms led by extraverted CEOs. Increased forecast uncertainty leads to even stronger stereotyping. Additionally, personality similarity between analysts and CEOs has a large effect on financial forecasts. Analysts issue more positive forecasts for CEOs similar to themselves.     

银行价格竞争、融资约束与企业研发投资——基于“中介效应”模型的实证研究

近年来我国利率市场化改革积极推进,实体经济发展积极向创新驱动转型,一个亟须研究厘清的关键问题是,银行业竞争如何驱动企业创新活动?本文关注银行价格竞争对企业创新的影响,以2013—2018年沪深两市的上市企业为样本,采用"中介效应"因果分析模型,实证检验了银行价格竞争对企业研发投资的影响,并识别出以融资约束为中介渠道的作用机制。研究发现,银行价格竞争不仅会提高银行的风险容忍度,直接增加R&D投资的信贷供给意愿,而且还会通过降低贷款价格和增加贷款可得性来缓解企业整体的融资约束,间接促进企业创新活动。这一机制在解除贷款利率管制之后以及在民营企业层面体现得更加明显。本文的研究结果对于深化金融市场化改革、改善金融服务实体经济效果以及实施经济创新驱动发展战略,具有明确的政策启示。     

The Impact of Better‐than‐Average Bias and Relative Performance Pay on Performance Outcome Satisfaction

Drawing on equity and expectancy theories, we hypothesize that the perception of accountants about their ability to contribute relative to a peer (operationalized as the better‐than‐average [BTA] bias) negatively influences their satisfaction with the outcomes of the performance evaluation process (operationalized as performance outcome satisfaction [POS]). We hypothesize further that this negative influence is mitigated by the amount of relative performance pay. We test these hypotheses using data collected from a survey of and an experiment involving 164 entry‐level accountants. We found that in general our participants rated themselves better than the average audit professional and their immediate work associate; that is, they displayed a BTA bias. Moreover, we found that both the BTA bias and performance pay individually influenced POS; we also found a moderately significant interaction effect. In their entirety, the results indicate that the greater an entry‐level accountant believes that she or he is better than average the more likely her or his performance outcome satisfaction will fall.     

The Upside to Fiscal Challenges: Innovative Partnerships Between Public and Private Sector

The first U.S. public‐private partnerships, or P3s as they are now called, began over 200 years ago. These contractual arrangements between government entities and private companies for the delivery of services or facilities have long been used for water/wastewater, transportation, urban development, and the provision of social services. And the use of such partnerships is increasing because they provide an effective means for meeting public needs, maintaining a high level of public control, improving the quality of services, and increasing the cost‐effectiveness of traditional delivery methods. Although outsourcing of public services is sometimes used to accomplish many of the same goals, P3s are likely to be a solution when public funds are not available and when:

• ? Capital is required to upgrade the infrastructure and so achieve a lower cost, or higher quality, of services.
• ? The contract horizon in the P3 transaction is sufficiently long for the investor/operation to recoup investment dollars and a rate of return.
• ? City residents make payments for the service provided, creating the revenue stream for private profits.
• ? The private partner in the P3 has a low cost of capital, often attributable largely to a large and sophisticated balance sheet.

This article uses examples of several recent P3 contracts to illustrate their role in shifting risk and increasing collaboration between the public and private sectors.     

银行业竞争与市场风险偏好选择——竞争政策的金融风险效应分析

本文探讨银行业竞争政策与金融风险的关系。基于空间竞争模型,文章探讨银行贷款市场的竞争博弈和企业家的风险选择行为,由此分析市场均衡的贷款利率以及企业家风险偏好水平。研究表明:强化竞争政策可以降低市场整体风险,竞争上升会降低单家银行垄断势力,促使均衡贷款利率下降,减弱企业家的风险偏好行为,使得银行经营风险下降、稳健性增强;从社会福利角度分析,虽然竞争可能损害银行业的经营利润,但会通过大幅提升存款者收益以及企业家盈利使得社会总福利提高。同时,竞争对市场风险的作用受到市场结构的影响,市场集中度增强将削弱竞争政策的实施效果。文章进一步讨论银行成本不对称对均衡的影响。总之,强化竞争政策与加强竞争性金融监管可以有效降低银行经营风险,提升社会福利,实现效率和稳定的双赢。