Preference hierarchies for internal finance, bank loans, bond, and share issues: evidence for Dutch firms

We estimate the incremental financing decision for a sample of some 150 Dutch companies for the years 1984 through 1997, thereby distinguishing internal finance and three types of external finance: bank borrowing, bond issues, and share issues. First, we estimate a multinomial logit model, which confirms several predictions of both the static trade-off theory and the pecking order theory as to the determinants of financing choices. Next, we estimate all possible ordered probit models to determine which financing hierarchy fits the data best. The results suggest that Dutch firms have a unique most preferred financing hierarchy: (i) internal finance, (ii) bank loans, (iii) share issues, and (iv) bond issues.     

Window on Eastern Europe: A Moral Movement for Polish Business

Our regular contributor on the business ethics scene in Poland reports on recent encouraging developments and sees them as contributing to the 'moral revolution' in addition to the political and economic ones which a leading Polish academic judges his country needs today. The author is Professor of Management at DePaul University Department of Management, 1 East Jackson Blvd, Chicago IL 60604, and Visiting Fulbright Professor of Management at Adam Mickiewicz University, Poznan.     

Ethics Codes in British Companies

How common are corporate codes of ethics in the UK and especially among Britain's most admired companies? The author is Wicklander Professor of Professional Ethics at DePaul University, Chicago, and current President of the American Society for Business Ethics.     

Which Chinese Markets to Diversify into?

This paper investigates the correlation and feedback relationships between the Hong Kong Hang Seng Index (HSI), the Hang Seng Chinese Enterprise Index (CEI) and the S&P 500 Index (SP). We divide the indexes into two separate periods, from the inception of the CEI in 1994 to the stock market crash in 2000, and from 2001 to 2011. Our results show that the feedback relationship between the CEI and the SP is stronger after 2000. As the feedback relationship grows stronger, the diversification benefit reduces for US investors who utilizes the CEI as a tool for diversifying into Chinese markets.     

Offshore Strategy to Build Overseas M&A Platform

Currently,the often- or popularly-chosen destinations for corporate cross-border investments include such places as Bermuda,Cayman,Panama,UK,HongKong,Singapore,as well as Nevada and Delaware of US,which are mostly preferred in actual overseas M&A.And these places can be generally classified into three categories — offshore destinations,similar offshore destinations such as Hong Kong and Singapore and transit stations with low taxation in the international market.How to choose the suitable place for registration,Mr.Gong Enguang,General Manager of Mossack Fonseca in China told the reporter from China's Foreign Trade magazine that under different circumstances,they will propose strategic suggestions according to different situations.     

Technical efficiency, market share and profitability of manufacturing firms in Cote d'Ivoire: the technology trap

This paper investigates the sources of inefficiency of firmsin Côte d'Ivoire and examines to what extent these effectstranslate into poor performance. A large majority of firms istechnically inefficient, producing far below the maximum attainableoutput level. Major cost savings can also be realised throughenlarging the scale of activities of firms. Efficiency gainsand scale advantages translate into a better competitive positionand via their impact on market share into higher profitability.However, severe growth barriers and imperfect markets keep firmsfrom realising these gains and prevent firms from catching upin technology with respect to their larger, older and oftenforeign-owned competitors.     

SOME OBSERVATIONS ON THE FOUNDATIONS OF THE CURRENT VALUE DEBATE

Proponents of alternative accounting information production systems have, in supporting their alternative, usually demonstrated the superiority of their system conditional upon assumptions about the producers and consumers of accounting information, and in light of the lack of evidence on the issue, assumptions about the relative costs and benefits of their system. This paper addresses the premises that are implicit in the usual arguments for one or the other form of current value accounting and reaches the general conclusion that the arguments for change are not as compelling as they may, at first glance, appear to be.