Litigation risk: Measurement and impact on M&A transaction terms

The purpose of the paper is to propose an original proprietary proxy of a firm's litigation risk. We extend the scope of litigation risk outside of the conflicts with shareholders and the domain of security litigation. We demonstrate that the source of the risk of litigation can be found in the firm's policies and in its management's operational or strategic decisions, even if a sector conditioning effect exists. Based on a sample of 465 US M&A transactions between 2000 and 2014, we provide evidence that the level of litigation risk, at the acquirer's level, has a positive and significant impact on the takeover premium. We also provide evidence that a significant relationship exists between the acquirer's litigation risk and the means of payment. An extension of the sample to international transactions is used as a robustness check; it confirms the previous results.     

Do People Accurately Anticipate Sanctions?

We provide lab data from four different games that allow us to study whether people have accurate expectations regarding monetary sanctions (punishment/reward) and nonmonetary sanctions (disapproval/approval). Although the strength of the sanction is always predicted with some error (particularly in the case of monetary sanctions), we observe that (i) most subjects anticipate correctly the sign of the average sanction, (ii) expectations covary with sanctions, (iii) the average expectation is very often not significantly different than the average actual sanction, and (iv) the errors exhibit no systematic bias, except in those situations where rewards are frequent. In this line, we find some evidence that punishment is better anticipated than rewards.     

Changing rural landscapes: A need for planning and management

This article explains how recreational subdivisions convert large tracts of rural land in the USA into ‘potential vacation homesites’. Much subdivision has occurred in areas where land use regulations are weak or non-existent. All too often developers have implemented an operational framework without a master plan, have not adhered to local environmental constraints, and failed to provide the most basic services needed for human habitation. Many of these so-called ‘planned new communities’ qualify as neither communities nor planned and end up as ghost subdivisions with vast acreages of unused, vacant land marked by an elaborate network of bladed roads. Specific developmental guidelines are suggested to assist governmental officials in reducing the negative impact associated with the premature subdivision of land years prior to its expected use.     

The Influence and Policy Signalling Role of FOMC Forecasts

Federal Open Market Committee (FOMC) policymakers have published macroeconomic forecasts since 1979 and we examine the effects of FOMC inflation forecasts using a structural VAR model. First, we assess whether they influence private inflation expectations. Second, we investigate the underlying mechanism at work and whether they convey policy signals. We provide original evidence that FOMC inflation forecasts influence private ones. We also find that the influencing effect of FOMC forecasts does not come through current Fed rate changes, that FOMC forecasts affect private expectations in a different way than current policy decisions, and that FOMC forecasts are informative about future Fed rate movements.     

Which HRM practices enhance employee outcomes at work across the life-span?

Abstract

Based on the social exchange theory and on ageing and life-span theories, this paper aims to examine: (1) the relationships between perceived availability and use of HRM practices, and employee outcomes (i.e. work engagement and employability); and (2) how employee age moderates these relationships. Using a sample of Nmaximum = 1589 employees, correlational analyses and multiple hierarchical regression analyses were conducted. First, confirming our hypotheses, results showed predominantly positive relationships between work engagement and both perceived availability and use of development HRM practices, such as HRM practices related to learning, development, and incorporating new tasks. The study outcomes opposed, however, our hypotheses with predominantly negative relationships between work engagement and perceived availability and use of maintenance HRM practices. Predominantly positive relationships were furthermore found, as was hypothesized, between employability and perceived availability and use of development as well as maintenance HRM practices. Generally speaking, these results were not more pronounced for any of the age groups. That is, age appeared to not play any significant moderating role. Research limitations, implications for practice and directions for future work are also discussed.     

Capital indivisibility and tax competition: Are there too many business areas when some of them are empty?

In this paper, we propose a model where local jurisdictions must engage a development cost before competing for hosting a firm with uncertain preferences among possible sites. We first show that even an optimizing central planner managing all the jurisdictions develops more sites than there are plants to host. Doing so, he diversifies his supply and has a higher probability of hosting the firm. Then, we show that, if every jurisdiction is managed by a local government, there are more developed sites than with the central planner, which implies excess supply.     

Toward a product-based typology for nature-based tourism: a conceptual framework

The traditional view of nature-based tourists as a relatively homogeneous group has been questioned, and several scholars have suggested various segmentation typologies. This paper discusses market and industry changes and notes key trends, as Fordist tourist products have been replaced by post-Fordist and neo-Fordist products, with both McDonaldization and McDisneyization developments. A range of visitor-based typologies are reviewed, and the conflict between capturing the diversity of today's nature-based tourists while offering management bodies simple tools to segment visitors, identify core groups and improve their marketing is noted. In an attempt to overcome this conflict, the paper presents a conceptual framework which focuses on nature-based tourism products instead of tourist types, therefore incorporating aspects of both the demand and supply sides of the nature-based tourism industry market. A two-dimensional matrix is suggested, linking four basic travel motivations (nature conservation, nature experience, sports/adventure and hedonistic) to four different types of tourist products (independent, à la carte, customized and standardized), giving a total typology of 16 different types. The matrix should help protected area managers to better understand tourist needs, suggest management measures and help to create more sustainable forms of tourism. Empirical testing is suggested as a next step.