The impact of technology-motivated M&A and joint ventures on the value of IT and non-IT firms: a new examination

We extend Lee and Lim (Rev Quant Financ Account 27:111–123, 2006) who provide empirical evidence on the impact of mergers and acquisitions (M&As) and joint ventures on the value of information technology (IT) and non-IT firms. Using technology-motivated transactions, we examine whether there are differences in market response to the announcement of M&As and joint ventures, and we consider the long-term performance of such firms. We find the market provides no (positive) reaction to joint ventures (M&As) at the announcement. We also present new evidence suggesting the market reacts more favorably to the announcement of technology M&As relative to joint ventures for our full sample, IT sample and non-IT sample. However, our examination of these firms’ long-term performance suggests the initial reaction is not fully supported. The findings suggest improved (declining) operating performance for joint venture (M&A) firms, and evidence to conclude joint venture firms achieve superior long-term performance changes for both accrual- and cash-based measures. To explain these inconsistencies, we employ a set of control variables previously documented as determinants of the innovation ownership decision. For joint venture firms, we find that, while the market fails to consider the importance of the firms’ R&D intensity and growth prospects in its initial reaction, these are ultimately key indicators of their future performance. The evidence also suggests the market overreacts to M&A announcements because it over-weights the impact of R&D intensity on the firms’ future performance in its initial response.     

Farm Size Growth and Participation in Agri‐environmental Schemes: A Configural Frequency Analysis of the Swiss Case

This paper examines the relationship between farm growth and participation in agri‐environmental schemes, using the example of meadow extensification schemes in Switzerland. As a result of small farm sizes in Swiss agriculture, theory would suggest that economies of scale are considerable for market production activities, so that for growing farms it would be rational to intensify. Configural frequency analysis is used to identify and describe combinations of farm size development and proportion of meadows placed under agri‐environmental schemes. In the Swiss case, growing farms are likely to reduce their participation, whereas shrinking farms have a growing share of their meadows under extensification schemes.     

Doing it the Swiss Way

Doing it the Swiss Way In the mid‐nineties, Switzerland changed from a high‐price support policy to a policy‐concept that was designed to guarantee a multifunctional agriculture. This change was brought about by some plebiscites in which people first voted against simply switching to direct payments not bound to environmental quality and then decided in favour of a direct payment system with a strong emphasis on environmental quality. Farmers now receive most direct payments if they comply with certain minimum environmental standards, and additional payments for additional improvements to ecological quality as defined at the national level. New regulations that enable the support of regional networks which deliver particularly high ecological quality are of particular interest. At the same time, the importance of market support is decreasing rapidly. The experience with this system can be evaluated according to how structural change in agriculture is buffered, how the ecological quality of Swiss landscapes is maintained or enhanced and the effectiveness of the individual programmes. All three yardsticks lead to fairly positive results. This suggests that a rational agricultural policy approach does not necessarily mean liberalisation. A multifunctional concept of agriculture may allow substantial intervention by the state. Faites le à la Suisse Dans le courant des années 90, la politique agricole Suisse est passée ?un soutien fondé sur des prix élevés à un système destinéà assurer ?existence ?une agriculture multifonctionnelle. Ce changement est la conséquence ?une série de votes‐référendum dans lesquels les électeurs ?abord repoussèrent ?idée de paiements directs sans lien avec ?environnement puis, ensuite, adoptèrent un système de paiements directs mettant ?accent sur la qualité de ?environnement. A ?heure actuelle, pour recevoir la plus grande partie de leurs paiements directs, les agriculteurs doivent respecter certains standards environnementaux minimums. Ils ont droit à des paiements supplémentaires s'ils améliorent la qualité ecologique de leur environnement, telle qu'elle est définie au niveau national. Un intérêt spécial s'attache aux nouveaux règlements qui permettent de soutenir des réseaux régionaux susceptibles de conduire à une qualitéécologique particulière. En même temps, le volume des soutiens directs aux marchés est en baisse rapide. Pour évaluer ce système, il faut examiner comment les changements structures en agriculture sont amortis, si la qualité des paysages suisses est maintenue ou améliorée, et si les programmes individuels sont efficaces. Chacun de ces critères conduit à une appréciation positive, ce qui montre qu'une approche rationnelle de la politique agricole n'est pas forcément synonyme de libéralisation. Le caractère multifonctionnel de ?agriculture peut justifier une assez large intervention de ?Etat. Auf schweizerische Art. Mitte der 1990er Jahre veränderte die Schweiz ihre Politik der Hochpreisstützung hin zu einer Politik, die eine multifunktionale Landwirtschaft garantieren sollte. Diese Veränderung wurde durch mehrere Volksentscheide herbeigeführt, im Laufe derer sich das Volk zunächst dagegen entschied, direkte Zahlungen einzuführen, welche nicht an die Qualität der Umwelt gebunden sind; später jedoch entschied sich das Volk für direkte Zahlungen mit starker Berücksichtigung der Umweltqualität. In den meisten Fällen erhalten die Landwirte nun direkte Zahlungen, wenn sie bestimmte Mindeststandards im Hinblick auf die Umwelt erfüllen, und zusätzliche Zahlungen, wenn sie zusätzlich zur auf nationaler Ebene festgelegten ökologischen Qualität beitragen. Neue Bestimmungen, welche die Unterstützung von regionalen Netzwerken ermöglichen, welche eine besonders hohe ökologische Qualität hervorbringen, sind von besonderem Interesse. Zugleich nimmt die Bedeutung von marktstützenden Maβnahmen rapide ab. Die Erfahrungen mit diesem System können danach bewertet werden, wie der Strukturwandel in der Landwirtschaft abgefedert wird, wie die ökologische Qualität der schweizerischen Landschaft aufrecht erhalten oder verbessert wird, sowie anhand der Wirksamkeit der einzelnen Programme. Alle drei Maβstäbe führen zu recht positiven Ergebnissen. Dies legt nahe, dass ein rationaler Ansatz für die Agrarpolitik nicht notwendigerweise eine Liberalisierung bedeutet. Ein multifunktionales Verständnis von Landwirtschaft könnte eine beträchtliche staatliche Intervention zulassen.     

Trade Facilitation and Economic Development: A New Approach to Quantifying the Impact

This article analyzes the relationship between trade facilitationand trade flows in the Asia-Pacific region. Country-specificdata for port efficiency, customs environment, regulatory environment,and e-business usage are used to construct indicators for measuringtrade facilitation. The relationship between these indicatorsand trade flows is estimated using a gravity model that includestariffs and other standard variables. Enhanced port efficiencyhas a large and positive effect on trade flows. Regulatory barriersdeter trade. Improvements in customs and greater e-businessuse significantly expand trade but to a lesser degree than improvementsin ports or regulations. The benefits of specific trade facilitationefforts are estimated by quantifying differential improvementsin these four areas among members of the Asia Pacific EconomicCooperation (APEC). A scenario in which APEC members with below-averageindicators improve capacity halfway to the average for all membersshows that intra-APEC trade could increase by $254 billion,or 21 percent of intra-APEC trade flows. About half the increaseis derived from improved port efficiency.     

Portfolio Insurance Strategies when Hedging Affects Share Prices

Option-based portfolio insurance can result in coordinated buying and selling, which destabilizes markets such that hedgers fail to achieve their objective. Gennotte and Leland (1990) show portfolio insurance strategies can have an impact on price movements. Ramanlal and Mann (1996) show how price movements, in turn, can alter hedging strategies. In this paper, we combine these separate effects and develop an equilibrium, executable hedging strategy. This hedging strategy requires less rebalancing than traditional portfolio insurance; more important, it achieves downside protection with a less destabilizing impact on security prices.     

Understanding Landscape Stewardship – Lessons to be Learned from Public Service Economics

We argue that public service economics provides a new perspective on landscape stewardship by explaining it as human‐to‐human transfer of partial property rights. These mutually linked exchanges involve rights to use, to access, or to control and allocate land, labour, skills or information. From the perspective of public service economics, we identify the actors involved in landscape stewardship and distinguish entrepreneurial strategies for service provision based on resource orientation, user orientation or competiveness orientation. The difficulties in evaluating the quality of services in general and landscape stewardship in particular result in substantial uncertainty. Three types of contracts that cope differently with this uncertainty can be distinguished: contracts focusing on the technical process, on the intended outcome or on the choice of suppliers based on trust and features of their performance potential. We conclude that a service economics perspective can add to the understanding of landscape stewardship. Due to the fact that ‘public service’ is already a well‐known and broadly acknowledged concept in society, public service economics could possibly provide more rapid progress towards a better co‐ordination of supply and demand for landscape qualities than other more novel concepts.     

南卡人圆"美国梦"——亚伦·格雷斯潘的奋斗传奇

在大学的学生经常听到：当实习生是你毕业后找工作最好的敲门砖。对于亚伦．格雷斯潘(Allen Gillespie),实习生给他的不仅是开始,也是一个起飞的发射台。他的实习生机会对他及对他的雇主是双赢的。亚伦是住在南卡州的Ander- son市,离乔治亚州的亚特兰大市东北2小时车程。他就读于弗吉尼亚州的华盛顿李大学,一心想进     

Crises and structural change in Australian agriculture

We present a model of structural change in the farming sector in which natural and economic crises decrease farmers’ work satisfaction, farm profitability, and the decision to stay in farming. Using data from the Australian Regional Well-being survey, activity choice modeling, and a structural equation approach, we test the hypothesis that these crises-induced effects then cause structural change in Australian agriculture. We find that external shocks, such as drought or economic downturn, negatively affect farmers’ welfare, which in turn causes structural change through revised activity choices. Our empirical findings also indicate that specific adjustment strategies such as buying additional water titles or reducing input use are insufficient to mitigate adverse crises effects.     

A multidisciplinary assessment of waste paper recovery from an institutional source

A multidisciplinary study of waste paper recovery from a complex of state government office buildings was undertaken for the purpose of developing, evaluating and recommending cost-reducing modifications in the present operations. Previous research on resource recovery has focused on either the total mixed municipal stream or specific residual materials within that stream. Little work has investigated the recycling potential of wastes from a particular institution such as state government which generates a considerable volume of waste paper. A major thrust of this research was a survey of the office workers and custodians who must participate in a waste paper recycling program. The economic viability of waste paper recovery programs is highly contingent on voluntary willingness of office workers to sort reclaimable residuals at the point of discard. This study demonstrated that office workers were receptive to recycling program, but that mere receptivity could not guarantee a successful program unless the participants were adequately advised on how to make distinctions between salvageable and nonsalvageable materials. Reluctance to support any administrative role change was found among custodial workers. This study also illustrated the financial advantages of manual separation at the source, as well as the impact of central storage and other modifications on the economics of the present system.