Debt maturity structure and the 1997 Asian financial crisis

The paper investigates the effects of firm-specific and country-specific characteristics, and the 1997 Asian financial crisis on the debt maturity structure of firms in the Asia Pacific region. The results indicate that firms in this region have a target optimal debt maturity structure, and the maturity structure decision of a firm is driven by both its own characteristics and the economic environment. They also reveal that the crisis had significant effect on firm's debt maturity structure and their determinants.     

Limited Information and the Sustainability of Unlisted-Target Acquirers' Returns

Abstract:  Relaxed disclosure requirements of unlisted firms, as compared to publicly listed companies, lead to limited quality and quantity of information at bid announcements, causing difficulty in valuing gains from mergers. This raises the question: are the frequently reported superior announcement-period gains to unlisted-target acquirers sustainable in the long run? Our results for the UK show that unlisted-target acquirers gain on announcement, but suffer a substantial loss in the long run. This reversal in fortune of unlisted-target acquirers is in sharp contrast to the performance of listed-target acquirers in the UK. Therefore, short-run gains for unlisted-target acquirers may result from investors' excessive optimism when faced with limited and biased information.     

HOW INVESTORS INTERPRET CHANGES IN CORPORATE FINANCIAL POLICY

In May 1987, Apple Computer announced that it would pay $5 million in cash dividends on its common stock your cents per share) for the first time in its history. On the day of the announcement, the market value of Apple's equity rose by $219 million.
In May 1986, Emhart announced that it intended to issue 2.75 million shares to raise $102 million in new equity. Following the announcement, the market value of its existing equity fell by $23 million.
In February 1939, General Motors declared a 2-for-1 stock split for the first time since 1955, and increased its dividends. The announcement led the market value of GM's equity to increase by $1.3 billion.     

Decomposition of Technological Change and Factor Bias in Indian Power Sector: An Unbalanced Panel Data Approach

Technological change and factor bias in the Indian power sector are analyzed using a translog cost function. Various components of technological progress and factor bias are identified and estimated, using a 21 year unbalanced panel data of Indian states and union territories. Heterogeneity across states is incorporated in the model using a variance component model. Appropriate corrections are made for unbalanced panel data. Empirical results show that the annual average rate of technological progress has been 2.4% for the country as a whole. Accumulation of knowledge and increasing scale are found to be the major factors contributing to technological progress. In contrast, the effects of factor price changes and fixed capital accumulation on technological progress have been unfavorable. Pure factor bias measure indicate saving in the use of fuel and labor, and increased use of materials. Tests are performed to check the curvature properties of the underlying technology.     

PERCEIVED DETERMINANTS OF HIGH AND LOW PRODUCTIVITY IN THREE OCCUPATIONAL GROUPS: A CRITICAL INCIDENT STUDY [1]

A critical incident study examined the factors perceived by employees to cause high and low productivity. One hundred and fifty-two employees from one firm, working in managerial, clerical, and professional jobs were interviewed. The interview responses were coded into factors within each of three broad categories: external events, agents, and personal traits. Generally, goals, deadlines or schedules, workload, and task interest were the most frequently mentioned events. The self, the organization, and the immediate supervisor were most often cited as agents. The most frequently mentioned personal traits were: satisfaction, pride, frustration, and desire for recognition. The implications of these findings for various schools of management thought are discussed.     

A characterization of exponential distributions based on order statistics

This note contains a characterization of exponential distributions based on the properties of linear transformations of order statistics. This is a certain converse of a well known theorem of Rényi about the distribution of linear combinations of order statistics from exponential distributions. Some statistical applications of the result are indicated.     

Interest rate policy,effective demand,and growth in LDCs

Orthodox criticisms of ‘financial repression’ in LDCs argue that interest rate liberalization promotes investment and economic growth by increasing the supply of bank credit and improving the efficiency of credit allocation. The present paper develops a Kaleckian model in which increases in deposit interest rates may lower investment and growth by placing downward pressure on effective demand – even if interest rate liberalization results in decreased borrowing costs. The focus of the Kaleckian model on effective demand issues is then contrasted with prior criticisms of the proliberalization view. Finally, the relevance of the Kaleckian approach is demonstrated in connection with the important role of effective demand and distributional effects in the failure of the Chilean financial liberalization to promote a stable growth of output and investment.