The impact of prior stock market reactions on risk taking in acquisitions

We study the relationship between the stock market's reaction to a prior acquisition and the risk associated with a subsequent acquisition. Using a sample of 823 acquisitions over the period 1990–2006 we find that acquirers buy increasingly volatile targets both as the abnormal dollar gains from the previous acquisition announcement increase, and as the abnormal dollar losses increase (i.e. a V shaped relationship). Our findings are consistent with psychological theories of decision making and risk seeking, including prospect theory and the house money effect. In addition, they highlight that the stock market reaction to the prior acquisition announcement acts as an important reference point in acquisition decisions. Copyright © 2014 John Wiley & Sons, Ltd.     

Labelling policy in the EEC

After describing the aims of the Community with regard to ‘harmonization’ and the legal basis for its activities in working towards that aim, the author discusses the relation of EEC labelling policy to that of other international organizations and then sets out in detail the proposals in the draft Directive currently before the Council of Ministers. In conclusion, she discusses the adaptation of UK legislation to comply with the Directive, and examines the reasons behind the slow completion rate of Community provisions, which ‘has been acutely disappointing for those who favour a free European market in foodstuffs’.     

Understanding commercialization of technological innovation: taking stock and moving forward

The commercialization of technological innovation, which is key to entrepreneurial success, represents a combination of several entrepreneurial activities. Building on research in management, strategy, entrepreneurship, and economics, this research summarizes 194 articles from 62 journals, categorizing them into six broad entrepreneurial activity themes: sources of innovations, types of innovation, market entry competence and feasibility, protection, development, and deployment. This review and synthesis suggest a framework of commercialization and an agenda for future research along with recommendations and guidance for future research. The proposed agenda provides topics and research questions for research, as well as related recommendations regarding the study and practice of the commercialization of innovation.     

Rural development and agricultural policy in the EEC

Decision making on integrated rural development projects is a complex affair. Dr van den Noort isolates some important elements in the process, puts them into an economic policy framework and examines them in relation to some experiences in the Netherlands and the EEC. A wide gap emerges between the philosophy and practice of agricultural and rural policy which bodes ill for the future of the EEC. If agricultural policies and rural development are to lead to greater intergration in the EEC then they must be used to increase a still to be defined general welfare function for the EEC and not to further narrow-minded regional policies.     

Food inspection and EEC policy

A European study of the organisation of efficient food inspection systems is needed before more radical changes in national inspection systems are attempted through harmonisation in the EEC. The author discusses food inspection in the Netherlands, the present state of harmonisation and the problems arising from it, paying particular attention to meat and meat products. Difficulties arise when veterinarians are given exclusive responsibility for policing regulations.     

The INTUG view on the EEC green paper

This paper is INTUG's response to the EEC's express wish to obtain a wide range of views from the community at large. It specifically handles each of the Green Paper's proposed positions, outlining them briefly and giving INTUG's attitudes to them. In general, INTUG welcomes the Green Paper, declaring a belief that it fulfills its purpose of provoking wide discussion, and trusting that it will result in a positive document committed to firm future plans.     

The new EEC Merger Control System

On September 21st, 1990 the EEC Merger Control System became effective. The author discusses three problems that have arisen in the European debate on establishing a supra-national merger control:

Three methods for reducing EEC milk supplies

The EEC has for many years been labouring under a structural overproduction of milk which is reflected in ever-higher surplus stocks of butter and skimmed milk powder. These represent an increasingly heavy burden for the EEC budget, because they are being sold through ever-costlier subsidized campaigns. Such campaigns disrupt the markets for fresh butter and margarine and make no contribution to a structural solution of the problem.     

Alcoholic beverage legislation: Harmonizing EEC laws

This article outlines the range of non-tariff obstacles to intra-EEC trade in alcoholic beverages. It describes the response of EEC institutions vizàviz harmonization of laws and European Court jurisprudence. The implications of the now famous ‘Cassis de Dijon’ court ruling are discussed and the paper concludes with tentative suggestions on the direction of future EEC efforts to create a common market for alcoholic beverages.     

The EEC green paper : A faltering step in the right direction

This paper comments on the EEC Green Paper on the Development of the Common Market for Telecommunications Services and Equipment. Jonathan Solomon argues that only a radical change in European political thinking about telecommunications can prevent Europe from being left behind in the information race. The Green Paper represents a step in a long process of readjustment, though perhaps somewhat lacking in potency.     

印刷行业上市公司巡礼

印刷业的上市公司伴随着中国证券市场的风风雨雨，一同走过十多年的历程，目前在沪、深两市上市的印刷板块企业已达7家。这些上市公司充分利用证券市场资本的杠杆，不但企业自身得到了长足的发展，大多已经成为行业中的领军角色，同时也促进了中国印刷产业的进步。随着我国印刷企业生产设备的更新，技术水平的提高，世界印刷业的中心经历了从欧洲转到东南亚，直至转移到中国的过程，作为行业领头羊的上市公司，当然功不可没。     

Seasonality in the Malaysian stock market

Previous studies have found the existence of a January effect in many Western countries. In Malaysia, local stock market commentators often talk of a Chinese New Year rally which has not been tested. This study examines empirically the existence of seasonality according to the Gregorian, Chinese and Muslim calendars in the Malaysian-stock market. The results suggest that in Malaysia, when monthly returns are measured according to different types of calendar, evidence in support of seasonality is found. In the main, a January effect, Chinese New Year effect and anAidilfitri effect are found. The Muslim calendar time effect is less widespread than the Chinese New Year and January effect. Possible reasons for the existence of the various types of seasonality, both economic and non-economic, are suggested. In a separate part of the study, a Chinese New Year effect is also found in the Singapore and Hong Kong stock markets.Ms Wong Ping Ling is a financial analyst of Dynaquest Sdn Bhd, a financial information services company in Penang, Malaysia. Dr Neoh Soon Kean is a lecturer of Science University of Malaysia, Penang. Dr Lee Kok Huat is an Associate Professor of University of Malaya. Dr Gregory Thong Tin Sin is an Associate Professor of Nanyang Technological Institute. This paper is mainly an extract from a MBA dissertation submitted to the University of Malaya. The authors would like to thank Ms Ng Poh Wah for her assistance in preparing this paper and Dynaquest Sdn Bhd for providing the facilities.     

Mauritania: The cost-effectiveness of EEC food aid

The value of EEC food aid to Mauritania is assessed. Given such factors as poor record keeping, political instability as a unique import/export situation, the authors conclude that only one of the three commodities supplied under the 1978 EEC programme could be considered cost effective.     

Egypt and the enlargement of the EEC: Impact on the agricultural sector

This article examines the impact of the second enlargement of the EEC on the agricultural sector of Egypt. The authors consider the impacts on Egypt's agricultural trade and, through the use of a linear programming model, the long term impacts of EEC enlargement. The authors conlude that, in short run, the southward expansion of the EEC will impose only a limited additional burden on the Egyptian economy. But, in the long run the burden placed on Egypt by increased protectionism in the expanded EEC could be much more severe.     

Forecasting volatility in the Singapore stock market

Volatility forecasting is a major area in the pricing of derivative securities, such as stock and index options. In this paper, we compare three methods of forecasting volatility. These are the naive method based on historical sample variance, the exponentially weighted moving average (EWMA) method, and the generalised autoregressive conditional heteroscedasticity (GARCH) model. Out-of-sample forecasts of monthly return variances generated by these three methods are compared. The results strongly favour the EWMA method.The authors are from the Department of Economics and Statistics, National University of Singapore and the Government of Singapore Investment Corporation respectively. The views expressed in this paper are entirely personal, and do not represent those of any institution.     

激情燃烧的股市

股市跌跌撞撞地进入四月份,市场对短信等热点渐渐没了兴趣,钢铁股的增发,银行股增发、转债的纷纷上市,中国联通战略投资者上市,种种利空困扰着投资者,再加上国际局势不稳,传言纷至,每个人对手中的股票渐渐地有了疑惑。可是突然之间,这一切的一切,都被凌钢股份(600231)的吓人季报所摧毁,一个季度0.24元的收益,6元的股价,投资者开始发蒙,就是说买进凌钢的话,六年就可以让资金翻一番……于是热情被煽动起来。     

Global competition and EEC policy in telecommunications: An Italian perspective

Within the framework of increasing US and Japanese competition, an interpretation is given of the future development lines of European telecommunications. Europe is lagging behind in this sector; this is explained in terms of the subdivision of services at the national level and the fragmentation of industrial areas within the respective countries. The minimum basis for recovery should be the establishment of a common European base in the telecommunications sector. A European scenario is proposed with particular attention devoted to the Italian problems in restructuring and development.     

Agriculture in ASEAN

The Association of South East Asian Nations (ASEAN), while progressing slowly towards economic integration, has gradually evolved an impressive agricultural commodity trading strategy. Recently, two cautious steps have also been undertaken to enhance cooperation in agriculture: the adoption of an ASEAN Common Agricultural Policy; and, the setting up of the world's first regional emergency rice reserve, the ASEAN Food Security Reserve. While these two measures constitute a step towards increased regional food security, both are modest in intention and scope.