Relational configurations with information intermediaries: The effect of firm‐investment bank ties on expected acquisition performance

Recognizing information‐related problems in acquisition transactions, we study how the characteristics of acquiring firms' relationships with information brokers or intermediaries like investment banks affect firms' access to acquisition‐related information, thus influencing expected acquisition performance. We propose that relational configurations that enhance the intermediaries' ability and willingness provide the most beneficial and appropriate information to acquiring firms. We find that acquirers' expected acquisition performance increases with the number of prior transactions with investment banks but decreases when relationships with banks become exclusive. Further, the positive effect of number of prior transactions becomes even stronger for less related acquisitions. Our study provides insights on the beneficial performance implications of competition in multiple but nonexclusive relationships with information intermediaries such as investment banks. Copyright © 2013 John Wiley & Sons, Ltd.     

Relationship between just-in-time manufacturing practices and performance: A meta-analytic investigation

Just-in-time (JIT) manufacturing is among the most commonly researched topics in the area of operations management. This study examines the relationship between JIT manufacturing practices and performance outcomes by means of meta-analysis of correlations approach. Based on an in-depth analysis of literature spanning from 1992 to 2008, the results of this meta-analytic investigation support a positive relationship between JIT manufacturing practices and aggregate performance. However, the findings suggest that not all individual JIT practices are associated with all types of performance outcomes. This study highlights the JIT practices that have the greatest impact on individual performance outcomes and emphasizes the role of moderating factors in the relationship between JIT practices and performance. Theoretical and managerial implications are discussed and directions for future theory building in JIT are presented.     

A relational perspective to knowledge creation: Role of servant leadership

Knowledge creation is a dynamic activity where new ideas and meanings are created through coaction and interactive relationships. However, due to overemphasis on competitive spirit and individualistic orientation, knowledge organizations ignore the significance of people and relationships. Extending a relational perspective, this article proposes a model of servant leadership for facilitating knowledge creation through sharing leadership responsibilities with followers resulting in mutual influence and direction, and inculcating caring relationships. It ensures greater exchange of ideas, experiences, and expertise between servant leaders and followers that result in the generation of new knowledge. By constructing this model we have explained various processes with several propositions showing relationships between servant leadership and shared leadership, shared leadership and knowledge creation, servant leadership and caring relationships, and caring relationships and knowledge creation.     

The Life Cycle of Initial Public Offering Firms

This study uses an integrated and comprehensive approach to study the evolution of IPO issuing firms to the three basic post-IPO states: survive as an independent firm, get acquired, or fail. We develop multinomial logit models that utilize information available at or prior to the IPO to predict the probability of subsequent transition to the three post-IPO states. We find that lower risk, larger firm size, higher investment banker prestige, higher pre-IPO operating performance, and higher industry R&D intensity increase the probability of survival relative to failure. We also find that higher firm size, higher industry R&D intensity, and industry concentration increase the probability of survival relative to being acquired. Finally, lower risk and higher investment banker prestige increase the probability of being acquired relative to failure. Overall, we identify several factors that influence the probability of subsequent transition to one of the three basic post-IPO states.     

Output/Endowment and Commodity/Factor Price Relationships and Welfare in a Multilateral Trade Model with Partial Factor Mobility

A multilateral model of trade with both commodity flows and partial mobility of factor flows is set up. This model is used to develop factor endowment/output relationships as well as commodity/factor price relationships. Welfare consequences of these parametric shifts are examined. The model is built on the customs union framework which involves three countries and both commodity and factor flows. Owing to spillover effects in multilateral trade models, many nontraditional results are obtained. Many developed countries accept skilled and unskilled migrants from other countries. These migrants are generally accepted on a quota system. Moreover, it has been established that an increase in the migrant quota in the presence of factor mobility may raise or lower the output and welfare in the country not receiving migrants. In fact it is shown that the non‐migrant receiving country could be immiserized due to loss of capital. The main message of this paper is that in a multilateral trade framework there exist international spillover effects which must be taken into consideration in national policymaking.     

Relative productivity growth and the secular “decline” of U.S. manufacturing

There has been considerable debate about the causes of the “decline” of U.S. manufacturing over the post-war period. We show that the behavior of employment, prices and output in manufacturing relative to services over this period can be explained by a two-sector growth model in which productivity shocks are the only driving forces. Household preferences turn out to play a key role in our model. The data are consistent with a specification where households are unwilling to substitute goods for services (the estimated elasticity of substitution is statistically indistinguishable from zero), so the economy adjusts to differential productivity growth entirely by re-allocating labor across sectors.     

INTERNATIONAL TRADE AND REGIONAL DEVELOPMENT

The paper considers a two-region model of trade based on the authors'earlier (HS) model, in which two nontraded goods, one urban and one rural, were introduced into the Harris-Todaro model. The HS framework captures the duality of the labour market, and it is argued that the HS model is suited to the purpose of regional analysis where the urban and rural agents may be in conflict as their welfare (income) may not respond in an identical manner to exogenous shocks and policy changes. The paper examines the implications of a change in capital and the terms of trade on outputs and regional incomes. It is established that in response to a terms-of-trade shock the prices of urban and rural nontraded goods could move in opposite directions, so structural change could also be in opposite directions. The same could also be true of welfare in the two regions.     

Location and the Growth of Nations

Does a country‘s long-term growth depend on what happensin countries that are nearby? Such linkages could occur for avariety of reasons, including demand and technology spillovers.We present a series of tests to determine the existence of suchrelationships and the forms that they might take. We find thata country‘s growth rate is closely related to that of nearbycountries and show that this correlation reflects more than theexistence of common shocks. Trade alone does not appear responsiblefor these linkages either. In addition, we find that being neara large market contributes to growth.     

Founder CEO management and the long-run investment performance of IPO firms

This study provides a comparative analysis of the long-run investment performance of founder and non-founder CEO led IPO firms in high and low technology environments. We find weak evidence of superior long-run investment performance on the part of founder CEO led IPO firms, since the significance of the results are sensitive to choice of benchmark, portfolio weighting method, and factor regression model. However, in the context of high technology IPO firms, we find consistent evidence to indicate that founder CEO led firms provide significantly higher long-run returns relative to non-founder CEO led firms. Our results suggest that the unique nature of founder CEO leadership is particularly beneficial to IPO firms in high technology environments.     

A DYNAMIC MODEL OF TOURISM, EMPLOYMENT AND WELFARE: THE CASE OF HONG KONG

Abstract.  The present paper uses a dynamic open-economy model with wage indexation to examine the impact of tourism on employment and welfare. Both short-run and long-run situations are analysed. It is well known that tourism converts non-traded goods into tradable goods. An increase in the demand for a non-traded good raises its relative price, which results in an expansion of the non-traded sector at the expense of the traded goods sector. This output shift raises labour employment in the short run. However, in the long run, the higher relative price leads to higher wages, resulting in a negative impact on labour employment. If the output effect is dominant, the expansion in tourism raises employment and welfare. However, under realistic conditions tourism may lower both labour employment and welfare due to rising costs. These results are demonstrated by simulating a dynamic model for the case of Hong Kong.