Debtor-in-possession financing

Several recent papers have documented the benefits of debtor-in-possession (DIP) financing in the restructuring of firms in Chapter 11. However, the view on benefits is not unanimous and some legal scholars have raised doubts about DIP financing's effects on debt-holders and the possibility of expropriative wealth transfers. In this paper we address this issue by analyzing both stock and bond price data for a comprehensive sample of DIP loans and find significant positive abnormal stock and bond returns at the announcement of DIP loans. Also, we do not find evidence of wealth transfers from junior to senior debt-holders. Further, we examine the DIP loan process in detail and we document important institutional features of DIP loans such as maturity, covenants, fees and interest charges. We find evidence of intense monitoring using covenants. We also find higher fees and charges associated with DIP loans. We argue that overall the results are consistent with the information processing role of financial intermediaries.     

Some 'real' problems of 'virtual' organisation

This paper presents an ethnographic study of organisational change in a retail bank considering issues surrounding the supposed emergence of the 'virtual organisation'. It outlines emerging problems in organisational work as a consequence of the shift toward 'virtuality' and questions the explanatory value of such theoretical stances.     

The Flemish customer contact centre for public information from a marketing and management perspective

This paper describes the Flemish customer contact centre for government information (‘the Flemish Infoline’) as an example of marketing in the public sector. First it defines the term ‘customer contact centre’ and describes the objectives and main characteristics of the Flemish Infoline. It then identifies the three reasons for setting up the Flemish Infoline in 1999: the complicated Belgian institutional landscape; the unprofessional telephone traffic handling and service; and the lack of knowledge about citizens' information needs. Finally, the paper applies Kotler's 4 Ps concept to the case, and puts the relevant stages from Lees‐Marsh‐ment's political marketing orientations into one integrated scheme in order to understand the functioning of the Flemish Infoline. Based on the literature and on an in‐depth interview with the project head of the Flemish Infoline, the authors demonstrate that marketing techniques can be used in contact centres for public information, but they also illustrate some important differences from those in the forprofit sector, such as the available amount of customers' personal data, the level of call operators' skills and the degree of heterogeneity of the questions. Further research on information needs and contact centres, and providing one ‘umbrella’ contact centre for government information in Belgium are recommended. Copyright © 2003 Henry Stewart Publications     

卡尔加里--一座充满智慧的城市

卡尔加里是加拿大西部一座充满活力和适于创业的城市。我们这座城市因靠近RockyMountain山脉和拥有著名的CalgaryStampede而享誉世界 ,同时我们也是加拿大经济运行最好的城市。我们拥有平均年龄最低、教育素质最高的市民。除了石油及天然气 ,农业和旅游业等传统产业外 ,我们在高新技术产业领域也有很强的实力。令我们引以为豪的是 ,卡尔加里已成为加拿大计算机应用最普及的城市之一 ,也是国际互联网应用最普及并且通过应用这一技术受益最多的城市之一。82 %的卡尔加里人是国际互联网的用户 ,70 %多的市民在家里上网。尽管我们在应用先进技…     

Implementing continuous improvement in the North American mining industry

This study identifies key factors required to successfully change a mining organization's culture to that mandated by a continuous improvement (CI) philosophy. Guided by a change-oriented model of CI implementation and the Malcolm Baldridge criteria, a survey was conducted involving mining firms operating in North America with annual revenues over $100 million. Twenty-four firms participated and resulted in 268 usable questionnaires. A principal component factor analysis followed by linear regression revealed that four factors accounted for success in implementing CI; employee involvement was the most important one. This dominant factor proved to be complex and had elements of the context of change (e.g., acceptance of company goals), the content of change (teamwork, new ways of working, and supportive HRM policies), and the process of change (leadership and access to information). Other predictors included, in order of importance, corporate presence, customer-oriented strategy, and adoption of practical goals. The article concludes with a discussion of employee involvement and the trend toward a productivity gap, with firms pursuing CI in the lead.     

The stability of generalised stackelberg equilibria in heterogeneous oligopoly

Conclusions In this paper we have derived sufficient conditions for the stability of the G. S. E. These conditions follow from the condition on the stability of the G. C. E., given by Okuguchi (1978).When the conditions for asymptotic stability are fulfilled, the existence of the G. S. E. may be demonstrated in the same way as the existence of the G. C. E. has been demonstrated by Okuguchi (1978), that is: the G. S. E. is the fixpoint of a contracting mapping. In the case of linear demand functions and quadratic cost functions we have found the rather strong result that the sufficient conditions for (asymptotic) stability of the G. C. E. imply the (asymptotic) stability of the G. S. E. as well.This conclusion may be surprising to followers of Stackelberg. Mostly the outcome of a Stackelberg oligopoly is considered as adisequilibrium.In this paper we have made clear that a firm maximizing expected profit and using a generalised Stackelberg strategy, like a firm using a generalised Cournot strategy, only correctly predicts inequilibrium the price of the other firms. (See also on this point Heertje and Furth (1979)).When the outcome of a G. S. E. gives one or more firms less profit than in a G. C. E. then they expect, any price change, under-taken by them, will lower their expected profit even more.I would like to thank Prof. Dr. A. Heertje and an anonymous referee for their useful comments on earlier drafts of this paper and D. Weatherall for his remarks on the english of the text.     

Academic application is not an oxymoron

Commentary on “A Performance‐Based, Minimalist Human Resource Management Approach in Business Schools”     

Price leadership in a duopoly with capacity constraints and product differentiation

This paper analyzes Stackelberg price leadership in a duopoly in which firms are capacity constrained and products are imperfect substitutes. Assuming symmetric substitutes, linear demand, and efficient rationing, we characterize the equilibria with an exogenously specified leader. Using the equilibrium profits derived from these games, we argue that over certain ranges of asymmetric capacities an endogenous price leader will emerge. When endogenous leadership does arise, it is the large capacity firm which is the leader. We thus provide a game theoretic model of dominant firm price leadership.Dave Furth's research has been undertaken as a part of the project Competition and Cooperation. Dan Kovenock has benefited from financial support from Erasmus University Rotterdam, the Krannert School of Management, and the Jay N. Ross Young Faculty Research Fellowship. We are grateful to Tom Faith for valuable research assistance. We have benefited from the comments of the editor, two anonymous referees, and participants at the European meetings of the Econometric Society in September 1989 and the North American Winter Meetings of the Econometric Society in December 1989.     

Optimality results on orthogonal arrays plus <Emphasis Type="Italic">p</Emphasis> runs for <Emphasis Type="Italic">s</Emphasis><Superscript><Emphasis Type="Italic">m</Emphasis></Superscript> factorial experiments

The optimality of designs obtained by adding p runs to an orthogonal array is studied for experiments involving m factors each at s levels. The optimality criterion used here, is the Type 1 criterion due to Cheng (1978) which is an extension of Kiefer (1975) universal optimality criterion. Unlike what happens with orthogonal array plus one run designs, the behavior of designs obtained via augmentation of an orthogonal array by p runs depends on the particular runs added.