The strategic choice of payment method in takeovers: The role of environmental,social and governance performance

Payment method choice in takeovers is mainly driven by both asymmetric information between the acquirer and the target and the acquirer's financial capability. In this paper, we examine whether increased transparency and better access to finance induced by environmental, social and governance (ESG) performance are associated with the strategic choice of payment method in takeovers. More specifically, we investigate how the acquirer's and the target's ESG coverage and different levels of ESG performance affect the probability of cash offers in a sample of 836 US takeovers from 1992 to 2014. In examining the target, our results suggest that ESG coverage is positively associated with the probability of cash offers, whereas we find a negative relationship for ESG concerns and no effect for ESG strengths. Upon examining the acquirer, ESG coverage and ESG concerns both increase the probability of cash offers; however, we do not find results supporting our prediction regarding the acquirer's ESG strengths. We infer that ESG coverage and level affect strategic considerations in the choice of the payment method in takeovers because they not only reduce information asymmetry, but also enhance financing capability.     

Determinants of bidder competition in corporate takeovers

The importance of bidder competition in the corporate takeover process has long been recognized in theoretical models. This paper provides empirical tests of those models. The results indicate that resistance by target management to an initial bid encourages multiple bidders. Competing bidders are less likely to enter in cases where the target is large, but more likely to arise when the initial bidder is highly levered. High initial bids (preemptive bids) are found to discourage entry by additional firms. Surprisingly, targets with high levels of free cash flow tend not to be the recipients of multiple bids.     

发货管理系统全面提高物流现场工作效率ARON化学合成公司关东工厂案例分析

1951年，ARON化学合成公司在聚氯乙烯管研制方面首次获得成功。在此基础上，ARON化学合成公司有效地利用其独特技术，一跃成为塑料制品的综合厂家。目前，ARON化学合成公司所涉及的业务范围已经非常广泛，包括以聚氯乙烯管、小13径聚氯乙烯水管为核心的管材行业。电力、通信行业，保险、建筑等行业，一些需要使用树脂产品的复合型行业也大多采用其产品。     

Management turnover and executive compensation in synergistic takeovers

The purpose of this paper is to provide a model of management turnover and executive compensation for a synergistic takeover. I extend a principal-agent model to include a synergy factor. I argue that the choice of management structure—turnover or no-turnover—provides an opportunity for the shareholder to efficiently utilize three elements of the incentive contracts: effort, insurance (risk-reduction) and synergy.I explain high turnover rates after takeovers, especially in conglomerate mergers as compared to horizontal mergers. Also, my model is consistent with empirical evidence that there is a high rate of management turnover in friendly as well as hostile takeovers and thus complements the model of the disciplinary role of takeovers. I also discuss an optimal compensation structure in synergistic takeovers compatible with their corresponding organizational forms.     

R&D investment as a signal in corporate takeovers

The purpose of this paper is to analyze the effects that takeover threats have on firms' preacquisition R&D intensity. Critics of takeovers usually argue that takeover threats may reduce target firms' R&D investments. However, I find that target firms may increase R&D investment in order to signal their compatibility with the acquiring firm. The identity of the acquired firm depends on the market size and target firms' efficiency and compatibility. Through R&D investments, target firms may affect this result, signaling potential outsiders the kind of competition they may face, and forcing them to accept lower takeover offers. Copyright © 2009 John Wiley & Sons, Ltd.     

An analysis of foreign takeovers in the United States

Using a sample of 96 US companies taken over by foreign companies during the period 1975-87, we assess foreign takeovers in two stages: pre-takeover and takeover. We find evidence that foreign firms target US firms whose operations are related to their own operations and that have low market-to-book ratios, suggesting foreign bidders acquire firms that provide a greater opportunity for market entry and synergistic gains. The synergistic gains appear to result from the foreign buyer using its own intangible assets (e.g. managerial skills) to improve the target. We also find that foreign takeover activity is aimed primarily at US industries that themselves make high levels of foreign direct investments, implying that the bidders use takeovers as a quick way to counteract rival firms' moves. We find evidence that foreign takeovers take place in relatively mature, low-growth industries and that foreign targets are, on average, smaller than the non-targets. The wealth effect on the announcement of a takeover is significantly higher for foreign takeovers than for takeovers by domestic firms. Also, we find that foreign bidders pay a slightly higher premium for targets whose operations are related to their own.     

Improving innovation efficiency of emerging economies: The role of manufacturing

The purpose of this study is to empirically examine the role of manufacturing in improving innovation efficiency of emerging economies. Emerging economies are developing innovations to promote their industries toward high-technology sectors to facilitate global competitiveness. Nevertheless, the role of manufacturing is often neglected, which can result in low efficiency in the innovation process. This study constructed a three-stage innovation model that consists of human capital cultivation, manufacturing development, and innovation production to stress and verify the importance of manufacturing. The experimental results suggest that manufacturing development was a key factor affecting innovation efficiency. A performance improvement strategy map was provided to improve each country's innovation efficiency.     

The ‘winner's curse’ hypothesis and corporate takeovers

The winner's curse hypothesis states that, in any bidding situation, a party which unknowingly overestimates the value of a given object tends to bid higher than its competitors and is, therefore, more likely to win it. In a takeover the magnitude of the winner's curse is defined as the difference between the bid premium of the winning bidder and the maximum offerable premium conditional on the capital market's estimate of expected takeover gains. The magnitude of the winner's curse is predicted to increase with (1) increase in the divergence of opinion amongst acquirers with respect to the size of takeover gains, (2) increase in the degree of competition for control of the target firm and (3) increase in the pre-acquisition profitability of the winning bidder. The empirical results provide support for the winner's course hypothesis.     

Profit efficiency in U.S. BHCs: Effects of increasing non-traditional revenue sources

Using information multiple times across revenue streams, BHCs may increase efficiency due to economies of scope. Our main contribution is to be the first to examine noninterest income after passage of the Gramm-Leach-Bliley Act, when additional opportunities to increase noninterest income arise. We examine profit efficiency and its relationship to noninterest income for BHCs using stochastic frontier analysis and multivariate analysis on BHC data from 2003 to 2006. Contrary to our hypothesis, the results indicate multi-noninterest income types are associated with decreased profit efficiency. These results are robust using the Efficiency Ratio as our measure and are particularly strong for small BHCs.     

交易效率与我国城市化进程中的政府角色定位

本文认为,经济学有关政府在经济中角色定位的经典表述今天仍有意义,但市场经济条件下政府的角色定位应明确为提高经济体的交易效率.未来几十年内城市化将一直是我国必须面临的一个重要历史课题,将提高经济体的交易效率作为城市化进程中政府行为的总原则具有理论和现实意义.     

Short-selling restrictions,takeovers and the wealth of long-run shareholders

In this paper we consider a situation in which a firm may be able to influence the investors’ ability to short-sell its stock. We analyze the effect short-selling restrictions have on the market price and the subsequent effect generated on the market for corporate control. More precisely, we argue that short-selling restrictions may lead to exclusion of pessimistic beliefs and may therefore inflate prices. Thus, if a company is poorly managed and has a stock with strong short-selling restrictions, a profitable takeover will not emerge because of the high stock price. The raider may not have the incentives to acquire the company as its price will be above its fundamental value, conditional on takeover, even accounting for the potential benefits of takeover. We then argue that such effects are detrimental to long-run shareholders and that a value-maximizing strategy is to have a stock with no short-selling restrictions.     

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 role of spatial interdependence in local government cost efficiency: An application to waste Italian sector

The paper aims to study the effect of spatial interdependence, among nearby municipalities, on public services efficiency. An empirical analysis on the waste disposal service in 4250 Italian municipalities was carried out to evaluate the efficiency of waste management expenditure, once the impact of positive/negative externalities, of neighbouring local governments, on efficiency levels is isolated. From a methodological point of view, our study extends the spatial stochastic frontier methodology proposed in Fusco & Vidoli (2013) usable only for production analysis, allowing to admit into a cost frontier the spatial autocorrelation among residuals. Ignoring spatial autocorrelation leads to inferential problems violating one of the most important assumption of classical regression models: the non-correlation of the residuals. We found a significant spatial interdependence among neighbouring municipalities in term of cost efficiency, that, thanks to the methodology proposed, has been isolated allowing a discussion on the specific efficiency of municipalities. These results may suggest the need to consider proximity effects in future investigations about the efficiency of waste management and, more generally, of public services.     

Evaluating food retailing efficiency: the role of information technology

Information and internet-based technologies have fostered new supply chain initiatives in food retailing but little research has evaluated performance and efficiency impacts. A distance function based on three key performance measures for food retailers is used to evaluate store performance and efficiency. The effects of store format, membership in a chain, unionization, and the adoption of a variety of information technologies. Supply chain technologies are groups into three general categories including data sharing technologies, decision sharing technologies, and technologies that support product assortment, pricing, and merchandising decisions.      

Re-connecting capitalism: prospects for the regulatory reform of the employee interest in UK takeovers

This article draws upon the disconnected capitalism thesis (DCT) to analyse UK takeovers and their implications for workers. The DCT refers to the disconnect between the source of value creation (the labour process) and the wider political economy. Specifically, we highlight a particular aspect of this disconnect whereby those who create value and have a long-term stake in firms (employees and managers at the firm level) are disconnected from decisions regarding takeovers, as a consequence of wider economic and political trends (processes of financialisation/marketisation and associated state support for a neoliberal takeover regime). We outline these trends and argue the case for a re-connect, which will require empowering employees and managers to have more influence in takeover decisions and, in turn, disempowering shareholders and financial intermediaries. The article thus highlights the regulatory space for takeovers and considers feasible policy options, a set of interlinked regulatory changes, which will in particular require a more assertive state.     

服务模块化的效率分析

本研究将通过资源投入的视角,探讨服务模块化的合理性,并对其效率进行分析,以加强对服务模块化的认识,并了解其实施的必要性与利益。如同实体产品模块化生产一般,服务通过模块化供应的过程除了便于因应复杂的客制化之外,更能保障各个专用性投入资源在调度上的灵活性与效率的发挥。     

The dynamic efficiency of capitalism

Variants of Lancaster's original model on the inefficiency of capitalism have continued to interest scholars. In a slight extension of the original finite-horizon model of Lancaster the possibility of more or less completely efficient outcomes is shown in the present paper. Such results are effected by the introduction of standard trigger strategies and soft trigger strategies defined in the present paper.     

Technical efficiency of Norwegian banks: The non-parametric approach to efficiency measurement

The nonparametric frontier methodology is applied to a sample of banks, where output levels are measured either by the number of accounts and their average size, or by the total balances of the accounts. The efficiency rankings of individual banks are found to depend substantially on our choice of output metric, whereas the estimated size of potential productivity improvements in the banking sector are less affected. The results on economies of scale are also largely unchanged.The refereeing process of this paper was handled through S. Grosskopf.     

Work stress and leadership development: The role of self-leadership, shared leadership, physical fitness and flow in managing demands and increasing job control

Leaders work in highly stressful environments, yet few leadership development efforts have focused on managing work stress. We posit that self- and shared leadership practices can help leaders manage high job demands and increase long-term job control. We examine the effects of high-strain jobs; identify the outcomes of active jobs, and highlight physical fitness as a key strategy of, and flow as a natural outcome of self- and shared leadership. We argue that self- and shared leadership, and the consequent and entailed fitness and flow benefits, support healthful regeneration and increased engagement and are thus vital to the leader's ability to manage work stress and create an active work environment. Our multi-disciplinary model offers a proactive way for leaders to manage the stressful demands of today's work environments.     

The efficiency of TVA power distributors

This study utilizes linear programming and regression for identifying distributors of Tennessee Valley Authority (TVA) power that deviate from the normal efficiency levels and for listing distributor attributes that affect these efficiencies. The conclusions are: (1) most TVA distributors are reasonably efficient; however, they appear to be more efficient with respect to technical and scale measures than with respect to cost and allocation measures; (2) TVA distributors tend to over use labor and capital, but utilize purchased wholesale power appropriately; (3) TVA distributors display increasing, decreasing and constant returns to scale, depending on observation; and (4) firm attributes that impact efficiencies the most are: distribution of utilities other than electricity, state location, service area size, the relative amount of power distributed to small customers, the ratio of small customers to large customers and the total amount of electrical energy distributed. © 1998 John Wiley & Sons, Ltd.