The long-term success of M&;A in the automotive supply industry: determinants of capital market performance

In the recent past, the automotive supply industry has been facing increasing merger activity. This paper examines the short- and long-term wealth effects of horizontal mergers and acquisitions on acquirers in the automotive supply industry. Based on a sample of 230 takeover announcements between 1981 and 2007, significant positive announcement returns to acquiring companies were determined. While these positive short-term returns to acquirers represent an outstanding attribute of this industry in terms of perceived synergy potential, this study also finds that acquirers are unable to sustain this exceptional position beyond a short-term horizon. A combination of the Fama-French-3-Factor model in calendar time and the control firm approach in event time consistently reveals significant value destruction of about 20% over 3years. In addition, the study determines a significant impact of internationalization, transaction volume, product diversification, and acquirer’s bidding experience on the long-term post-acquisition performance.     

Schuldenerleichterungen für Griechenland — ein Überblick

The article provides an overview of debt waivers by private and public debt holders during the Greek financial crisis and the three assistance programmes. Greece’s advantages add up to around 280 to 298 billion euros. The burden, in the form of reduced annual payments, is carried by the debt-holding countries and amounts to about 206 to 224 billion euros, the private sector’s share being roughly 70 %. Nevertheless, liability shifted from the private sector to rescue funds. Therefore, the aforementioned additional debt relief will primarily strain the countries that pay for the bail out and the ECB.     

Public Professional Accountability: A Conditional Approach

In the past decades, profession(al)s have increasingly been called to account. Several authors have reported that this increased public professional accountability, in the form of showing that professional conduct meets predefined standards or rules, has had severe negative consequences for professionals, their clients and society, and call for ‘intelligent’ forms of accountability; forms of accountability that may inform a wider public about professional conduct but do not harm it. In this paper, we propose a form of ‘intelligent’ public professional accountability. Taking Freidson’s (Professionalism. The third logic, Polity Press, Cambridge, 2001) notion of institutional ethics as a point of departure, we develop a form of accountability that seeks to account for the conditions required for professional conduct. The paper first discusses the current ‘dilemma of professional accountability,’ describes ‘ideal-type professional conduct’ and goes into the conditions it requires. Next, it shows what accounting for these conditions entails and that this form of accountability fits the criteria for intelligent accountability, as set by O’Neill (in: Morris and Vines (eds.) Capital failure: rebuilding trust in financial services, Oxford University Press, Oxford, 2014).     

Incorporating innovation subsidies in the CDM framework: empirical evidence from Belgium

ABSTRACT

This paper integrates innovation input and output effects of R&D subsidies into a modified Crépon–Duguet–Mairesse (CDM) model. Our results largely confirm insights of the input additionality literature, i.e. public subsidies complement private R&D investment. In addition, results point to positive output effects of both purely privately funded and subsidy-induced R&D. Furthermore, we do not find evidence of a premium or discount of subsidy-induced R&D in terms of its marginal contribution on new product sales when compared to purely privately financed R&D.     

The moderating impact of internal social exchange processes on the entrepreneurial orientation–performance relationship

This paper applies a social exchange perspective to understand the internal contingencies of the relationship between entrepreneurial orientation (EO) and performance. It focuses on two aspects of social interactions among functional managers (procedural justice and trust), as well as on their organizational commitment, as potential enhancements to the firm's successful exploitation of entrepreneurial opportunities. A study of 232 Canadian-based firms finds several positive moderating effects: The EO–performance link is stronger for higher levels of procedural justice, trust, and organizational commitment. In addition, consistent with a systems approach to organizational contingencies, the EO–performance relationship is stronger when the organization's social context comes closer to an “ideal” configuration of procedural justice, trust, and organizational commitment that is most conducive to knowledge exchange within the organization. The study's implications and future research directions are discussed.     

Verkaufen als Unternehmensaufgabe

Jeder Mitarbeiter sollte sich als Verk?ufer fühlen. Denn die Zeiten, in denen das Verkaufen von Produkten und Dienstleistungen ausschlie?lich Aufgabe der Vertriebsabteilung war, sind l?ngst vorbei. Heute gibt es kaum einen Bereich, der keinen Beitrag zum Vertriebserfolg leisten kann. Dieser Artikel zeigt, wie man die Vertriebsorientierung des gesamten Unternehmens erh?hen kann.     

Housing,mortgage bailout guarantees and the macro economy

What are the macroeconomic and distributional effects of government bailout guarantees for Government Sponsored Enterprises (e.g., Fannie Mae)? A model with heterogeneous, infinitely lived households and competitive housing and mortgage markets is constructed to evaluate this question. Households can default on their mortgages via foreclosure. The bailout guarantee is a tax-financed mortgage interest rate subsidy. Eliminating this subsidy leads to a large decline in mortgage origination and increases aggregate welfare by 0.5% in consumption equivalent variation, but has little effect on foreclosure rates and housing investment. The interest rate subsidy is a regressive policy: it hurts low-income and low-asset households.