Vertical integration as an input price hedge: The case of Delta Air Lines and trainer refinery

In April 2012, Delta Air Lines (Delta) purchased a mothballed oil refinery. We use this case to illustrate when, how, and why vertical integration (VI) can hedge input price risk. First, we show that stockholders and creditors expected the move to create wealth. Consistent with their predictions, Delta's exposure to refining margins, cash flow volatility, cost of debt, and default probability all decreased, relative to peers, postacquisition. Our evidence is consistent with the refinery influencing Delta's operating strategies, especially in its most affected markets. The case demonstrates how asset specificity and financial hedging frictions can justify VI.     

How does religion discipline the consumer subject? Negotiating the paradoxical tension between consumer desire and the social order

ABSTRACT

In this article, we revisit Russell Belk, Guliz Ger and Soren Askegaard’s study on consumer desire. We do so in an effort to further advance the extant understanding of desire in consumer research. Specifically, informed by Lacanian psychoanalytic thought and sharing much affinity with Foucault’s central argument in The History of Sexuality, we consider how the institution of religion functions as a disciplining force by which to mediate the (potential) conflict between human desire and the social order. For the purposes of this article, we focus our analytical gaze on how consumption practices have the disciplinary effect of regulating desire. That is to say, we illuminate how religion (and religious ideology) dictates certain consumption practices, which ultimately perform to ensure that the pursuit of desire does not contravene the pre-existing social order that structures society and organises social relating. To animate our theoretical claims, we draw on a qualitative study of the Tablighi Jamaat, an Islamic sub-culture originating in South Asia. This article builds on extant sociological and anthropological studies that have captured the nexus between religion and the workings of the marketplace. However, unlike past studies, the question posited at the crux of this article concerns desire and, particularly, how desire becomes subjected to the discourses pertaining to religiously prescribed consumption practices.     

The Value of Building Codes

We present a double moral hazard model to study the impact of building codes on the safety/quality level chosen by the builder and the level of care expended by the buyer. We show that codes can be a mechanism to implement the first-best solution provided: (1) The code prescribes the optimum safety level, (2) The code uses the efficient technology to achieve the optimum safety level, and (3) The courts use Negligence Rule as the liability rule. We argue, however, that codes in general do not use the efficient technology. We provide an alternative mechanism to implement the first-best solution. This mechanism is a contract between the builder and the buyer that specifies the level of safety jquality to be expended by the builder. We prove that the contract is a more effective and more efficient mechanism than are the building codes.     

Evidence of Information Asymmetries in the Market for Residential Condominiums

Previous research (Rutherford et al. 2005; Levitt and Syverson 2005) identify and quantify agency problems in the brokerage of single-family houses. Real estate agents are found to receive a premium when selling their own houses in comparison to similar client-owned houses. Given the homogeneity of the condominium market in comparison to the single-family house market, we use a large sample of condominium transactions to examine if agency problems exist in the condominium market. Controlling for sample selection and endogeneity bias of the data, we find evidence for a similar price premium for agent-owned condominiums. In contrast to the results for single-family houses in the same geographic market, we find that agent-owned condominiums must stay on the market longer to receive a higher price.

Corporate Social Responsibility,Shariah-Compliance,and Earnings Quality

This study examines the effect of two potential sources of ethical principles on earnings quality: corporate social responsibility (CSR) and membership in a Shariah index. We define membership in a Shariah index as the adherence to an ethical code that relates to Islam. Our sample comprises firms in ten European Union countries for the period from 2003 to 2013. The empirical results show that firms with a high degree of CSR are less likely to manage earnings. In contrast, membership in a Shariah index leads to earnings manipulation. Our results are robust after using several alternative quality metrics for earnings. Furthermore, our empirical results indicate that highly rated CSR firms that are not Shariah-compliant are less likely to engage in earnings manipulation. Further, institutional factors are also important in determining the link between CSR, Shariah-compliance, and the quality of financial reporting.     

The effects of corporate governance compliance on market valuation in Malaysia

This study investigates the effects of corporate governance compliance on market valuation in Malaysia using a sample of 164 companies listed on the Main Board in Bursa Malaysia from 5 different industries （consumer, trading ＆ services, industrial, constructions and properties） within 2001 to 2005. Throughout, this study will use correlation and regression analysis in the SPSS software to determine the effects of corporate governance practices on Market Valuation. In analyzing firms＇ market valuation, we will use the Tobin＇s Q formula and for the corporate governance compliance, we will look at 4 criteria to compare with market valuation, which are （1） Board of Director＇s composition, （2） Board of Director＇s remuneration （salaries）, （3） Board of Director＇s training and development, （4） Board of Director＇s meeting. In order to determine the effects between the corporate governance compliance and market valuation, we will use regression analysis. Based on the correlation analysis, the first null hypothesis must be rejected and the alternative hypothesis is accepted, in which dependent variable and independent variables are significantly correlated with BOD remuneration and BOD training availability. Overall, there is a significant relationship between Tobin＇s Q and independent variables （BOD remuneration and BOD training）. This study also recommends that for the company who did not comply with the code, they should follow the best practice because it will be a pivotal weapon in facing with the fierce competition in era globalization.     

Abnormal trading volume and autoregressive behavior in weekly stock returns in the Saudi stock market

This paper examines the relationship between the abnormal change in trading volume of both individual stocks and portfolios and short-term price autoregressive behavior in the Saudi stock market (SSM). Our objective is to investigate the informational role that trading volume plays in predicting the direction of short-term returns. We evaluate whether the abnormal change in lagged, contemporaneous, and lead turnovers affects serial correlation in returns. Specifically, we examine if and when the change in volume produces momentum (positive correlation) or reversal (negative autocorrelation) in consecutive weekly stock returns.We find a reversal in weekly stock returns when conditioned on the change in lagged volume in the SSM. Our results are consistent for the whole sample, the two sub-sample periods, and the large- and small-firm portfolios. The results are consistent with Campbell, Grossman, and Wang [Campbell, J. Y., S. J. Grossman, and J. Wang, 1993, Trading volume and serial correlation in stock returns, Quarterly Journal of Economics, 108, 905–939], who present a model in which risk-averse market makers accommodate the selling pressure of liquidity or non-informational traders. We also find that reversal is more pronounced with the loser portfolio as specified by filter-based methodology. The overall result of this paper is also consistent with the empirical findings of Conrad, Hameed, and Niden [Conrad, J., A. Hameed, and C. Niden, 1994, Volume and autocovariances in short-horizon individual security returns, Journal of Finance 49, 1305–1329.] and Gebka [Gebka, B., 2005, Dynamic volume-return relationship: evidence from an emerging market, Applied Financial Economics, 15, 1019–1029] in which they report price reversal for stock with high trading volume.     

Price supply response of vegetable growers in the Sultanate of Oman

Information on supply price elasticities has been acknowledged as being very important for decision makers at the macro and micro levels. This paper presents an empirical investigation of vegetable growers' responses to prices in Oman. It develops a single supply response function incorporating adaptive expectation model for prices. Results indicate that growers adjust relatively fast to changes in expected prices. However, these adjustments tire rather low for some crop in the short-and long-run. Growers' production decisions have also shown a significant response to prices of other products competing for farm space and other production resources. These results will support efforts aimed at market development and crop enhancement programs.     

The relationship of sport experience and the effect of competitive anxiety during the match for junior handball player students

The main aim of the current study were to find out the effect of competitive anxiety during the match for junior handball player students, and to investigate the relationship between the training experience of students and the level of competitive anxiety during the match for junior handball player students in youth centers of Duhok province in Iraq. A total number of participants was 128 junior handball players divided into 8 youth centers (Akre, Amedi, Bardarash, Domiz, Duhok, Shexan, Sumel and Zaxo) each center contain 16 players. The scale of the Competitive State Anxiety Inventory-2 was used to collect the data. The one way ANOVA, Test Least Significant Difference to find out the effect of competitive anxiety during the match for junior handball player students, and the correlation was conducted to find the relationship between the competitive anxiety and the training experience. The results showed that there is a significant differences between junior handball player students in the level of competitive anxiety for the youth centers (p < 0.00), and there is a negative significant correlation between the training experience and the level of competitive anxiety (r = ? 0.423, p = 0.00). This study would show useful information about the effect of competitive anxiety and training experience for junior handball player students.     

Acceptance of Sharīʿah‐compliant precious metal‐backed cryptocurrency as an alternative currency: An empirical validation of adoption of innovation theory

In the crypto world, there is a proverbial (and literal) gold rush now occurring. Currently, more than 37 gold‐backed cryptocurrency companies have now emerged. Interestingly, some of them also claim to be Sharī?ah‐compliant. Introducing precious metal‐backed cryptocurrencies is perceived to be an innovation among global payment systems, hampered in part by lack of supporting empirical evidence. Therefore, this research investigates potential users' tendency to adopt a Sharī?ah‐compliant precious metal‐backed cryptocurrency. As such, this study adopts an extended adoption model, which consists of eight factors. Partial least squares structural equation modeling (PLS‐SEM) analysis was conducted on data elicited from economic active residents in Klang Valley from questionnaires. Overall, it was found six out of the eight constructs specified to influence the adoption of precious metal‐backed cryptocurrency were statistically significant where 54.5% of the variation in adoption of PMBC can be explained by the structure model provided by this research. It was also found 63.55% of the respondents are willing to adopt precious metal‐backed cryptocurrency in their future transactions.