Dynamic Externalities and Policy Coordination

The paper introduces trade into dynamic models with externalities and capital accumulation, and evaluates the efficiency of the Cournot–Nash equilibrium. It considers mixed economies characterized by a blend of strategic and nonstrategic sectors. Also, there are two sources of interdependence: the existence of production externalities and the endogenous determination of market prices. It is shown that policy coordination is not needed when preferences are the same. In this case, the production externalities are internalized, so that an inefficient solution becomes the efficient integrated world equilibrium due to trade.     

Will the new competitive landscape cause your firm's decline? It depends on your mindset

A view of the new competitive landscape shows globalization, rapid technological change, and hypercompetition as conduits leading to either organizational decline or organizational growth. In this article we explain how managers can use four mindsets to convert potential threats posed by these environmental challenges into pathways of prosperity, instead of pathways of decline. A global mindset, or the ability to view the world using a broad perspective, converts globalization threats into growth opportunities by thinking beyond geographic boundaries, valuing integration across borders, and appreciating regional and cultural diversity. An innovation mindset, meaning a mental framework that fosters development and implementation of new ideas, transforms rapid technological change threats into opportunities by valuing constant generation of new ideas and business models, realizing sources of new ideas, and stressing next practices rather than best practices. A virtual mindset, or the ability of managers to hand over their firms’ activities to external providers, turns hypercompetition into prospects for growth by facilitating flexibility and responsiveness. Finally, a collaboration mindset, meaning a willingness to engage in business partnerships, converts all three challenges into opportunities by allowing firms to form successful partnerships that can lead to synergy by combining business complementarities.     

Identify Customer Involvement During Organic Food Purchase Through FCB Grid

The study measures the level of customer involvement related to Organic Food (OF) purchase through FCB Grid. A conceptual model was developed to identify the location of OF in FCB Grid by testing the sequencing of Knowledge, Attitude and Purchase Behavior effects. Two scales were adopted from a study by Ghosh et al. (2016 Ghosh, S., Datta, B., &; Barai, P. (2016). Modeling and promoting organic food purchase. Journal of Food Products Marketing, 22, 623–642. doi:10.1080/10454446.2016.1141138[Taylor &; Francis Online], [Web of Science ®] , [Google Scholar]) to measure Knowledge and Attitude pertaining to organic food. Similar such scale with minor moderation was formed for Purchase behavior. 868 responses were analyzed through Structural Equation Model, which indicates that OF falls on the first quadrant of FCB grid and is a high involvement product. This implies Knowledge drives Attitude and Attitude drives Purchase Behavior and demands informative strategy where economic considerations prevail prior to purchase. Organic food production is a sustainable process and positively impacts the livelihood of marginal farmers and will improve the quality of the soil and health of the consumers.     

Lifting the Veil on Reverse Leveraged Buyouts: What Happens During the Private Period?

We document the different types of restructuring activities undertaken during the private period after the reverse leveraged buyout (RLBO) of previously public firms. Preceding the LBO, firm leverage significantly exceeds that of their peers, while their profitability is better than the industry. However, despite their superior performance, these firms are undervalued before going private. While private firms undertake value‐enhancement measures by increasing employee productivity, asset restructuring, decreasing cost of goods sold, and increasing ownership concentration. Enhanced valuation at the RLBO is a result of value capture, as well as efficiencies obtained from restructuring activities. We also identify factors determining the private period duration.     

Government Slows Economic Growth

For decades the conventional wisdom maintained that 'public' (a euphemism for government) expenditure was good for economic life Professors Datta and Gordon, of the Universities of Visra-Bhariti (West Bengal) and Southern California, claim that evidence from the Third World suggests how government retards economic growth and depresses living standards Their argument may be technical but their conclusions cannot be misinterpreted even by politicians     

Executive Compensation and Corporate Acquisition Decisions

By examining how executive compensation structure determines corporate acquisition decisions, we document a strong positive relation between acquiring managers' equity-based compensation (EBC) and stock price performance around and following acquisition announcements. This relation is highly robust when we control for acquisition mode (mergers), means of payment, managerial ownership, and previous option grants. Compared to low EBC managers, high EBC managers pay lower acquisition premiums, acquire targets with higher growth opportunities, and make acquisitions engendering larger increases in firm risk. EBC significantly explains postacquisition stock price performance even after controlling for acquisition mode, means of payment, and "glamour" versus "value" acquirers.