Captive Financing Arrangements and Information Asymmetry: The Case of REITs

For the sample period of 1985 and 1986, captive real estate investments trusts (REITs) have a larger bid-ask spread than noncaptive REITs, after controlling for trading volume, price volatility, insider holdings, institutional holdings and firm size. Based on the bid-ask spread literature, the results suggest that captive firms are subject to a greater degree of information asymmetry. This implies a higher cost of capital for captive firms. The evidence here and the trend toward self-administered REITs imply that information asymmetry and conflicts of interests within REITs are priced.     

Capital Structure and the Cost of Capital for Untaxed Firms: The Case of REITs

REITs offer the opportunity to examine the relationship between capital structure and cost of capital in the absence of corporate earnings taxes. The evidence supports the leverage clientele effect as the motivation for the use of financial leverage by REITs.     

中国石油上市以来股价走势及总体表现

上市初期股价低位徘徊 中国石油上市之初在市场追捧科技股和国际市场原油价格下跌的压力下,股价一直在略低于发行价(1.28港元)的水平上徘徊,最低曾跌至1.12港元.     

After The Fall: Stock Price Movements and the Deterrent Effect of Antitrust Enforcement

In this paper, we utilize data on stock price movements of firms indicted on price-fixing charges to infer expectations of antitrust recidivism. Specifically, a return of the firm's (market-adjusted) asset value to its pre-indictment level in the post-indictment period is taken as evidence of stockholders' expectations of a return to collusive behavior. From these data, we are able to make direct inferences about the effectiveness of antitrust enforcement actions. Importantly, we find that the stock prices of 85 percent of the firms in our sample had regained 100 percent of their pre-indictment levels within one year of the antitrust action. Such widespread and rapid stock price appreciation casts doubt on the durability of thedeterrent effect of Section 1 enforcement.     

灰色证券系统证券价格趋势模型的建立与分析

针对在非安全信息下的证券价格变动情况,将灰色系统理论首次引入证券价格趋势分析;利用灰色系统理论和关联度分析,建立能进一步准确反映证券价格动态过程发展态势的量化模型;通过模型,对证券价格变动趋势进行预测研究,建立灰色GM模型,并针对上海证券交易所某个时间段进行实证模型建立、分析及精度检验,取得了满意的结果。     

The Size and Frequency of Price Changes: Evidence from Grocery Stores

We analyze a data set (on grocerystore prices for lettuce) with many advantages overthose used previously to explain firm heterogeneity inthe size and frequency of price changes. Despitecommon shocks to their input price, grocers' pricechanges vary widely in size and frequency. We testhypotheses emerging from a theoretical framework. Wefind that product, firm, and market characteristicsassociated with the benefits from and costs ofchanging price explain grocer-to-grocer variation inthe size and frequency of price changes. Moreconcentrated markets, larger firm size, and thinnerproduct markets lead to infrequent and large pricechanges.     

Indirect Damages from Price Fixing: The Alabama Lysine Case

Indirect damages to broiler and pork producers fromsupra-competitive pricing of synthetic lysine, whichis an important feed additive, are discussed in thisarticle. Indirect damages occur in fundamentallydifferent ways in the two industries because thebroiler industry is vertically integrated while thepork industry was dominated by independent producersduring the 1992–1995 time period. Pass-through ofhigher lysine prices to hog feed purchasers isdemonstrated with regression analysis of purchasesof a feed premix containing synthetic lysine and aregression analysis of purchases of synthetic lysinefrom feed dealers.     

The Immediate Impact of New Product Introductions on Stock Price: The Role of Firm Resources and Size*

New product development and introduction is an ongoing important issue to facilitate a firm's success. To demonstrate the financial impact of new product introductions and the supporting role of firm resources and organizational structure, the authors collected 409 new product announcements from 1990 to 1998 and used event methodology and regression models in this research. Building on resources and capabilities perspectives, the present study argues that firm resources with emphases on research and development (R&D) are imperative to materialize new product concepts. However, the research revealed that R&D resources have dual effects on immediate shareholder value (i.e., abnormal stock returns). On one hand, when the firm commits only lower to moderate levels of R&D, investors would have perceived such R&D as expenditures reducing the firm's profit margin and thereby negatively evaluate R&D resources. Nevertheless, when the firm has dedicated its resources to R&D significant enough to signal investors its potential benefits can outweigh its costs, it generates positive shareholder value. Further, the study found that investors honor positive marketing resources that are critical to promote and launch new products to customers. Apart from resources perspectives, according to the organizational structure literature, firm size reflects the layers of bureaucracy within an organization. The research found a negative effect on shareholder value, indicating that investors evaluate more optimistically smaller firms that are likely to be more innovative and entrepreneurial resulted in more breakthrough products. In conclusion, this study provides value to practitioners in understanding the impact of firm size and, more importantly, to what extent they dedicate their resources in R&D and marketing to generate different performance outcomes.     

Resource Combination and Security Price Reactions: The Case of Real Estate Joint Ventures

Joint ventures are a commonplace occurrence in the U.S. economy. In particular, firms undertaking real estate projects frequently use the joint venture as a method of combining resources. This paper examines security price reactions around real estate joint venture announcements. The evidence indicates that significant increases in the values of the participating firms occur within a two-day announcement period. The changes in values appear to be due principally to the amount of information about the local real estate market possessed by the participating firms, and an information signal about the potential financial viability of the proposed project conveyed by the presence of anchor tenants. While the results are important in their own right, they are also significant in another respect. They seem to confirm the efficiency with which the capital market processes information about the markets for trading real estate claims.     

Price Strategies for Idiosyncratic Goods—The Case of Housing

We determine the mechanism that a rational, profit-maximizing seller would use to revise his reservation price for a heterogeneous or infrequently exchanged good. For instance, while one dimension of a home's quality may be easily determined in competitive markets (e.g., the valuation of floor size, location, etc.), other dimensions of quality may be idiosyncratic (unit specific) and unobservable by the seller (e.g., aesthetics of the home). Here, a seller of a new or infrequently exchanged housing unit may use sales success information to revise his expectation of the unit's market-determined value and hence revise his reservation price. The rational seller will, upon arrival of the first buyer inspecting the unit, determine a sequence of reservation prices for this and expected subsequent buyers. This price sequence falls for subsequent buyers and starts from a lower initial price if the first buyer arrives later than expected. Through this mechanism, we offer an explanation for price dispersion and vacancy durations in housing markets. While we explicitly model the real estate market here, this price revision mechanism is also applicable to rental markets, labor markets, used car markets, and other markets characterized by heterogeneity and infrequent sales.     

我国彩电产业的价格竞争、价格战与产业绩效

一、彩电产业价格战诱因与动机的初步分析从 2 0世纪 80年代初期至 1 990年为止 ,我国彩色电视机产量和销量都获得了较大的增长。 1 985～ 1 990年 ,彩电产量与市场销量分别从 435 .3万台和 378.6万台增加到 1 0 33万台和980万台。随着国内彩电厂商生产规模的扩大 ,规模经济因素逐渐发挥作用 ,一些在成本结构上具有优势的企业为了更好地扩张规模 ,开始运用价格竞争手段。例如 ,四川长虹于 1 989年率先发起了价格战 ,这为行业领先企业迅速扩大市场份额提供了基础。不过 ,价格竞争在这一时期对业内企业带来的冲击力 ,被两个因素所大大缓解。一…     

Search Cost and Price Dispersion in Vertically Related Markets: The Case of Bank Loans and Deposits

Using data on marginal interest rates of loan and deposit products by Spanish banks, we find that the level of interest rates on loans (deposits) across geographic markets decrease (increase) with the number of banks in each market, and that the level of interest rates on loans increases with the level of interest rates of deposits. We also find that the dispersion of interest rates of both loans and deposits increase with the number of banks. This evidence is interpreted as evidence of customer’s search costs in retail banking, consistent with predictions from the Carlson and McAfee (J Polit Econ 91:480–493, 1983) model of market competition with search costs.     

Beyond Illinois Brick: The Law and Economics of Cost Pass-Through in the ADM Price Fixing Case

This article reviews the legal standards and theeconomics of pass-through to indirect purchasers andillustrates these principles with a case involving ADMin the market for high fructose corn syrup (HFCS).With three assumptions about production technologies,buyers of HFCS experience a 100 percent pass throughof the direct overcharge. The extent of pass throughof the increase by buyers is shown to dependcritically upon the market structure of the purchasingindustry and the shape of the retail demand curve. Flexible demand functional forms are needed to avoidconstraining estimated pass through rates.     

Contracts Versus Price Discrimination: Evidence From the SONJ Case

A feature of the Standard Oil antitrust case is that much of the case revolves around Standard’s selling lubricating oils to railroads. This paper explores the government’s theory that Standard’s rebates to the Pennsylvania RR represented price discrimination. Standard’s defense was an assertion that the lubrication contracts were relational contracts involving a service and that the behavior which the government labeled discriminatory represented persistent inefficient behavior on the part of the Pennsylvania system. Data from the trial and other sources are used to attempt to determine if the evidence presented at trial favors price discrimination or Standard’s inefficiency defense. This is done using data envelopment analysis to determine the inefficiency the Pennsylvania RR. However, in the end, most aspects of the case must be considered “not proven.”     

航天企业价格管理模式之我见

价格是产品价值的货币表现,产品价格的高低关系到一个企业的收入和利润水平,甚至关系到企业的生存和发展,因此,搞好价格管理工作至关重要。航天企业作为军工生产单位,其生产的特点决定了型号产品的价格管理模式具有其特殊性。过去,在我国经济实力不足的情况下,遵循“多研制,少生产”的方针,型号产品多为研制性产品,批量小;执行指令性计划,不存在价格问题。多年来,航天产品的价格只按工本费加5%利润计算,生产的垄断性使得企业不用担心价格补偿。其报价和批价均在生产后期,企业的价格管理工作比较粗放。随着经济体制改革的不断深入,军工企业生…     

企业经营者持股经营的一点探索

国有企业改革不断深化的过 程中，企业建立现代企业制度，促使“产权清晰、权责明确、政企分开、管理科学”，已经成为理论界与企业界共同探讨和研究的课题，尤其是企业界对这一课题更是不遗余力地在实践中探索，在探索中提高。1997年，我们在上海埃通电气有限公司（下简称埃通公司）推出了企业经营者群体持股经营的试点，作为全市乃至全国首家国有企业，自创试点，引在起了理论界与企业界的震动。 一、企业经营者持股经营，顺应经济发展的潮流 在20世纪50年代，世界经济的发展，特别是在西方资本主义经济发展过程中，社会矛盾特别…     

项目管理中影子价格的作用

章阐述了影子价格的微观含义，指出了影子价格在项目管理中具有的宏观作用与广泛的用途。     

Stock market surveillance and market performance: The case of Taiwan

In this paper we investigate the effect of warning announcements on the price behaviour of stocks. We also study the effects of various corrective treatments (trading halts, call trading and 100% payment/delivery with order) on the performance of stocks in the Taiwan stock market. It is found that warning announcements serve to improve the performance of stocks, except in the case of consecutive warnings. Generally speaking, the corrective measures taken after the consecutive warnings are able to reduce the volatility, the abnormal returns and the excess liquidity of the stocks.The authors are Professors from the National Sun Yat-sen University, and the Securities and Exchange Commission respectively.     

The Information Content of Method of Payment in Mergers: Evidence from Real Estate Investment Trusts (REITs)

We provide evidence on the information content of the method of payment in mergers by examining shareholder returns in a sample of REIT mergers over the period 1994–1998. When the target firm is publicly held, we find that transactions are always stock-financed, and that acquiring firm shareholders sustain small negative returns around the announcement date. When the target is privately held, cash financing, mixed (stock and cash) financing, and placement of blocks of acquirer stock with target owners are more prevalent. Acquirer returns are positive in stock-financed mergers when the target is private, which is consistent with both the information signaling and monitoring by blockholders hypotheses. Further analysis supports the information signaling hypothesis as the dominant explanation. The effects of other explanatory variables are similar whether the target is public or private. Most significantly, acquiring shareholder returns are negatively related to the acquirer's size, but positively related to the acquirer's use of the UPREIT organizational structure. The positive wealth effects of the UPREIT structure are not fully explained as the capitalization of tax benefits.