Long-term valuation effects of stock splits

This study attempts to determine if stock splits affect the long-term stock performance of forms, and to explain cross-sectional variation in this performance proxy among firms. The consequences of both higher percentage transaction cost following a stock split and an investor overreaction hypothesis are expected to render negative effects on stock values. The consequences of any earnings and dividend signaling accompanying splits are expected to have a positive impact on stock values. The results of the analysis suggest that the cumulative abnormal returns (CARs) are positive and statistically significant through the eleventh month after a stock split. The CARs then decrease nearly monotonically through the thirty-sixth month after the split (CAR=?8.23%). This indicates that initially the signaling effects dominate, but later the consequences of investors' downward revisions of previous expectations and the increase in percentage transaction cost dominate. The cross-sectional results indicate that firms with higher earnings-growth rates exhibit higher CARs, and firms with higher share prices just before the split exhibit lower CRRs.     

A COMPARISON OF PROCEDURES FOR ESTIMATING RETURNS TO RESEARCH USING PRODUCTION FUNCTIONS

The production function approach has been one of the two main ex-post procedures used to estimate the rate of return to agricultural research. A critical part of estimating the marginal internal rate of return (MIRR) is the procedure adopted to spread the benefits of research through time. Past studies using this approach have given only brief consideration to this computational procedure. The objective in this study was to review the different computational procedures used and, then, using cross-section production function estimates for U.S. agriculture, determine whether the MIRR estimates are sensitive to the computational procedure used. The results from this comparison indicate a large range in the estimates. The implication, then, is that careful consideration should be given to the choice of computational procedure, both when undertaking such a study and when comparing the results of different studies.     

What are the real prospects for total EC integration?

Nothing can stop the momentum behind the movement for total European integration, or so it would seem. But what about the impact of Gemn reunijication, strong nationalistic feelings, and the socialist tradition in Europe? The authors look at what impact these might have on the move toward creation of a Single Market.     

Ideology or pragmatism? trade union education in France and Britain

Trade union education–a significant area of trade union activity – has been characterised by a tension between the desire to provide a certain ideological, economic and political perspective and the need to develop pragmatic bargaining skills. This comparative study examines the differing ways in which trade union education has developed in France and Britain.     

Manage your human sigma

If sales and service organizations are to improve, they must learn to measure and manage the quality of the employee-customer encounter. Quality improvement methodologies such as Six Sigma are extremely useful in manufacturing contexts, but they're less useful when it comes to human interactions. To address this problem, the authors have developed a quality improvement approach they refer to as Human Sigma. It weaves together a consistent method for assessing the employee-customer encounter and a disciplined process for managing and improving it. There are several core principles for measuring and managing the employee-customer encounter: It's important not to think like an economist or an engineer when assessing interactions because emotions inform both sides' judgments and behavior. The employee-customer encounter must be measured and managed locally, because there are enormous variations in quality at the work-group and individual levels. And to improve the quality of the employee-customer interaction, organizations must conduct both short-term, transactional interventions and long-term, transformational ones. Employee engagement and customer engagement are intimately connected--and, taken together, they have an outsized effect on financial performance. They therefore need to be managed holistically. That is, the responsibility for measuring and monitoring the health of employee-customer relationships must reside within a single organizational structure, with an executive champion who has the authority to initiate and manage change. Nevertheless, the local manager remains the single most important factor in local group performance. A local manager whose work group shows suboptimal performance should be encouraged to conduct interventions, such as targeted training, performance reviews, action learning, and individual coaching.     

THE VALUATION EFFECTS OF FREQUENT COMMON STOCK ISSUANCES

Previous empirical studies show that announcements of seasoned common stock registrations and issuances lead to significant reductions in common stock prices and shareholder wealth. Nevertheless, some firms issue common stock frequently. Our empirical study of nonutility firms that issued common stock four or more times within ten years shows that market reactions to announcements of offerings and to registrations are less unfavorable than typical reactions for infrequent issuers. A cross-sectional analysis reveals no unique characteristics that distinguish frequent issuers from one-time common equity issuers. In fact, the only detectable characteristic unique to the firms is that they issue common stock frequently.     

Human resource management in multinational and domestic enterprises: A comparative institutional analysis in Southeast Asia

This article looks at the relative impact of context on the role of senior managers. It compares HR directors of domestic enterprises (DEs) with those of multinational enterprises (MNEs), within an emerging market setting, based on a survey of HR directors in Brunei. We found that, with the exception of some aspects of selection and recruitment, HR directors of MNEs accorded a higher priority to strategic tasks but were more reluctant to delegate. This study confirms the importance of MNEs in pioneering more modern and integrated approaches to people management but also demonstrates the limitations to the extent where they might act as evangelists of new practices that are adopted by their local peers. In contrast, local firms were more likely to concentrate their attention on administrative, rather than strategic, issues. We draw out the implications of our findings for theory and practice.