Internationalization and the evolution of corporate valuation

By documenting the evolution of Tobin's q before, during, and after firms internationalize, this paper provides evidence on the bonding, segmentation, and market-timing theories of internationalization. We find that Tobin's q does not rise after internationalization, even relative to domestic firms. Instead, q rises significantly before and during the internationalization year, but then falls sharply in the following year, quickly relinquishing the increases of the previous years. In decomposing these dynamics, we find that market capitalization rises before internationalization and remains high, while corporate assets increase during internationalization. The evidence supports the theory that financial internationalization facilitates corporate expansion, but challenges the theory that internationalization produces an enduring effect on q by bonding firms to a better corporate governance system.     

Complex Ownership Structures and Corporate Valuations

The bulk of corporate governance theory examines the agencyproblems that arise from two extreme ownership structures: 100%small shareholders or one large, controlling owner combinedwith small shareholders. In this paper, we question the empiricalvalidity of this dichotomy. In fact, one-third of publicly listedfirms in Europe have multiple large owners, and the market valueof firms with multiple blockholders differs from firms witha single large owner and from widely held firms. Moreover, therelationship between corporate valuations and the distributionof cash-flow rights across multiple large owners is consistentwith the predictions of recent theoretical models.     

The Independent Sales Contractor and Relationship Quality: An Exploratory Study of Relational Attitudes and Behavioral-Intention

Since the turn of the century, independent sales contractors have emerged as an important and growing sales and distribution channel. This study, guided by theories of attitude-behavior relation, constructs and tests a conceptual independent sales contractors (ISC) relationship quality scale. The findings support the proposition that relationship quality is a composite of attitudes and behavioral intentions. The work provides theoretical and practical implications, as well as suggestions for future research.     

The sensitivity of MLE to measurement error

The paper explains how to compute a simple summary measure of the sensitivity of maximum likelihood and related non-linear estimates to measurement error in exogenous variables. The proposed measure is a first-order approximation, and its implications for probit and censorship type models are shown to be quite different from ordinary least squares.     

Should rules be simple?

The principal argument of the paper is that in an incomplete information setting, where the private sector lacks information of government objectives and has to learn about the policy rule by direct observation and estimation, simple sub-optimal rules may outperform the more complicated rule which is optimal under complete information. This result is demonstrated by simulations using an overlapping contract rational expectations model. The paper thus provides some formal reasoning to support arguments for simplicity associated with credibility and the need for the private sector to be able to monitor policy.     

Choosing among alternative technologies: conditions for assuring the feasibility of an input–output database or scenario

The conceptual reach of the basic input–output modeling framework is substantially extended by new models that incorporate the economic logic of comparative advantage as the basis for the endogenous choice among alternative production technologies. This paper establishes procedures that define the conditions under which the database used for scenario analysis in this extended framework assures the existence of an economically feasible solution. We provide a criterion for structural feasibility, the property established by the Hawkins–Simon condition for the basic input–output model, and introduce a criterion for scale feasibility. The logic underlying the tests is illustrated by numerical examples based on the Rectangular Choice-of-Technology model and database. These procedures can be particularly useful for incorporating engineering and other technical sources of information into multi-regional input–output databases; they can also provide substantial underlying detail about individual technologies, sectors, and factors of production for both feasible and infeasible scenarios.     

Person–environment fit or person plus environment: A meta-analysis of studies using polynomial regression analysis

The purpose of this study was to examine if the non-linear terms in polynomial regression analysis (PRA) explain substantial amounts of variance in assumed outcomes over and above the linear terms. This meta-analysis reviewed a total of 30 studies from 25 articles on person–environment (P-E) fit in which PRA was used. We found that none of the 30 studies did rigorous cross-validation for PRA. In addition, the overall population R² change attributable to the non-linear terms (PE, P² and E²) in PRA was only .008. However, the P-E interaction term may be more important in some situations than in others, based on the data gathered here. Specifically, the non-linear terms in PRA added to the variance explained by the linear terms (P and E) when studies examined assumed outcome variables like contextual performance or job attitudes as opposed to task performance. In summary, PRA could potentially be effective in investigating P-E fit and other human resource management-related phenomena when it is used in appropriate scenarios.     

The Development of a Process for Evaluating Marketing Sponsorships

Despite the increasing resources being allocated from marketing budgets to sponsorship, effective evaluation is relatively rare, and sponsorship evaluation methods are often proprietary in nature. This paper reports on a research project designed to develop a process model for evaluating sponsorships. An initial version was conceived from agency theory, the evaluation literature, and sponsorship writings. This draft was then assessed by sponsorship experts during a series of 14 in‐depth interviews. Based on these analyses, a final version of the process model was proposed. The revised version was then adopted to evaluate—as a demonstrative example—a specific sponsorship. Results of this case and recommendations for future research and practice in sponsorship evaluation are presented. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.