Excess control,agency costs and the probability of going private in France

The current study investigates the determinants of going private (GP) in France. It contrasts a sample of 161 firms that went private between 1997 and 2009 with a propensity-score-matched sample of firms that remained public during the same period. The results indicate that, unlike for firms that remain public, the largest controlling shareholders (LCSs) of GP firms control their firms using an incommensurately small fraction of ultimate cash flow rights. This is consistent with the view that agency problems between large and minority shareholders make public firms less attractive to investors, which reduces the benefits of staying public and encourages the LCSs to take their firms private or accept takeover offers. Additional results show that GP firms have more undervalued stock prices and higher free cash flows than non-GP firms. Expected interest tax shields, low growth opportunities, and pre-GP takeover interest do not seem to affect the probability of GP.     

Exchange Rates and Stock Prices in the MENA Countries: What Role for Oil?

This paper considers the linkage between stock prices and exchange rates in four MENA (Middle East and North Africa) emerging markets. In contrast to the existing evidence that uses a global market index to uncover such a relationship it is found that for the sample countries oil prices emerge as the dominant factor in the above relationship. The paper considers the presence of regime shifts and evidence is found of cointegration only for the period following the 1999 oil price shock. Readjustment towards equilibrium in each stock market occurs via oil price changes. Finally, a number of robustness checks are performed and persistence profiles produced.     

Consumer preference among fluid milks: low‐fat vs. high‐fat milk consumption in the United States

The present study uses data from the Continuing Survey of Food Intakes by Individuals 1994–1996, 1998 in order to analyse milk consumption by type, specifically high‐fat milk vs. low‐fat milk. Whereas trend analysis displays an overall increase in low‐fat milk consumption over the last few decades in the United States, a number of individuals still consume high‐fat milk varieties, and overall dietary intakes have yet to achieve recommended levels. In light of recent research regarding fat intakes, it is important to understand what factors might cause consumers to purchase high‐fat options given the number of low‐fat options available in the market. Through the use of Logistic regression, key socio‐economic and demographic variables are analysed in order to determine their impacts on the probability of consuming low‐fat milk vs. high‐fat milk. The results indicate that a number of factors do influence probability of low‐fat milk consumption as compared with high‐fat milk consumption. Most notably, probability of low‐fat milk consumption appears to be positively related to age, education level, and income level. African Americans and other minorities had a lower probability of consuming low‐fat milk when compared with White people in the sample population. Also, those respondents designated as low income or living in the South were less likely to consume low‐fat milk.     

Will African Agriculture Survive Climate Change?

Measurement of the likely magnitude of the economic impact ofclimate change on African agriculture has been a challenge.Using data from a survey of more than 9,000 farmers across 11African countries, a cross-sectional approach estimates howfarm net revenues are affected by climate change compared withcurrent mean temperature. Revenues fall with warming for drylandcrops (temperature elasticity of –1.9) and livestock (–5.4),whereas revenues rise for irrigated crops (elasticity of 0.5),which are located in relatively cool parts of Africa and arebuffered by irrigation from the effects of warming. At first,warming has little net aggregate effect as the gains for irrigatedcrops offset the losses for dryland crops and livestock. Warming,however, will likely reduce dryland farm income immedia-tely.The final effects will also depend on changes in precipitation,because revenues from all farm types increase with precipitation.Because irrigated farms are less sensitive to climate, wherewater is available, irrigation is a practical adaptation toclimate change in Africa.     

Psychographic clustering of blood donors in Egypt using Kohonen's self‐organizing maps

• Blood donation has historically been marketed as one of the purest examples of altruistic or pro‐social behavior. The recruitment of blood donors is, however, a challenge as transfusion centers worldwide strive to attract and retain blood donors. This study uses self‐organizing maps (SOM) to examine the effect of various psychographic and cognitive factors on blood donation in Egypt. SOM is a machine learning method that can be used to explore patterns in large and complex datasets for linear and nonlinear patterns. The results show that major variables affecting blood donation are related to altruistic values, perceived risks of blood donation, blood donation knowledge, attitudes toward blood donation, and intention to donate blood. The study also shows that SOM models are capable of improving clustering quality while extracting valuable information from multidimensional data.

Copyright © 2009 John Wiley & Sons, Ltd.     

Malmquist indices of productivity growth for Islamic and conventional banks in Malaysia

This paper studies the total factor productivity （TFP） of banks in Malaysia with the emphasis on comparing the relative productivities of Islamic and Conventional banks. The Malmquist index approach is used to decompose productivity growth into technical efficiency and technological change. The productivity growth is measured and decomposed into technical change and efficiency change. The efficiency change is further decomposed into pure efficiency change and scale efficiency. It is found that Islamic banks＇ productivity growth is limited by its lack of technological change compared to its conventional counterparts. Nonetheless, both types of banks are operating at the correct level in terms of scale or size.     

Financial market integration: Theory and empirical results

In this article, we introduce a new theoretical international asset pricing model which accounts for partial financial market segmentation. We show that if some investors do not hold all international assets because of implicit and/or explicit segmentation factors, the world market portfolio is not efficient and the classic ICAPM must be augmented by a new factor reflecting the local risk undiversifiable internationally. We test this model empirically for a sample of emerging markets. Our findings show that the degree of market integration is time-varying and that the premium associated with the domestic risk factors is the most important component of the total risk premium. However, our results also show that most of the emerging markets we study have become more integrated in the end of our sample period as a result of liberalization and reforms.     

Cost and profit efficiency of Chinese banks: A non-parametric analysis

Using a non-parametric technique for data from 1995 to 2004, we investigate the cost and profit efficiency of 28 Chinese commercial banks. We examine the influence of ownership type, size, risk profile, profitability and key environmental changes on the bank efficiency using a Tobit regression. Consistent with the existing literature, we find that profit efficiency levels are well below those of cost efficiency. This suggests that the most important inefficiencies are on the revenue side. Our findings are also consistent with prior evidence on ownership and efficiency: joint-stock banks (national and city-based), on average, appear to be more cost- and profit-efficient than state-owned banks while medium-sized banks are significantly more efficient than small and large banks. These and other results suggest the need for speedier reforms to open the banking market, improving risk management, minimizing the government's capital subsidy and diversifying ownership of Chinese banks.