Pricing target NOLs in mergers and acquisitions from the participating firms' perspective

While prior research has extensively examined the market response to target net operating loss carryforwards (NOLs) in mergers and acquisitions (M&A) announcements, the question of whether target NOLs are priced by the participating firms during the price negotiation process has not been explicitly addressed. Answers to this question could provide direct measures to assist firms in pricing target NOLs in M&As. Our results show that the participating firms price target NOLs based on how long it will take the acquirer to use the acquired NOL in both nontaxable and taxable acquisitions under the Tax Reform Act of 1986. Also, we find a significant difference in the market pricing and the participant pricing of target short-lived NOLs before, and continuing well after, the announcement date. Our findings suggest that the importance of the differences between the market and the participating firms perspectives should be considered when conducting future research in this area.     

Commercial loan borrower’s optimal borrowing and prepayment decisions under uncertainty

We model a firm which faces continuing stochastic money needs and fluctuating interest rates. The borrower minimizes the expected present value of the sum of interest payments and prepayment penalty costs subject to a liquidity constraint. Since contingent opportunities are absent from the model, we find (i) the firm should not inventory cash, (ii) the firm should prepay the maximum amount possible if it prepays at all.     

On the Time-Series Properties of Real Estate Investment Trust Betas

The relation between real estate investment trust (REIT) returns and stock market returns is of significant importance to investors, practitioners and academics. The temporal properties of this relationship have a critical impact on the usefulness of REIT risk estimates and portfolio allocations to this asset class. Recent studies have suggested a decline in the market betas of equity real estate investment trusts (EREITs). This study applies a rigorous statistical test of the hypothesis that the market betas of EREITs have remained unchanged during the 1972 through 2002 time period. There is weak evidence of a downward trend in EREIT betas using a single-factor model; however, the hypothesis is not rejected when using a three-factor model.     

Japan's Growing Outward Direct Investment in East Asia

Japan's outward direct investment (ODI) began to show an obvious expansion since 2005, accompanied by a greater importance in East Asia and in the manufacturing sector. By analyzing the new wave of Japanese ODI, three points are elaborated in this article. First, the recent Japanese ODI did not result in the same industry to be passed from one country to another as elucidated in the flying geese model. Instead, Japan's ODI only promoted the regional divisional of labor in the transport equipment and electrical machinery industries. Second, this study advances the theory of vertical production network by exploring two regional production networks constructed by Japanese ODI, including one between China, South Korea, Taiwan, and Hong Kong and the other between the Association of Southeast Asian Nations (ASEAN). Finally, since Japan's economy has been tightly connected with foreign demand via overseas production, this article argues that any sign of Japan's declining ODI will have serious impact to its domestic economic prosperity. © 2015 Wiley Periodicals, Inc.     

Perspectives on Multiple Category Choice

Multiple category choice is a decision process in which an individualselects a number of goods, all of which are nonsubstitutable with respect toconsumption. Choices can be made either simultaneously or sequentially. Thekey feature of multiple category choice is the treatment of the choices asinterrelated because each item in the final collection of goods contributesto the achievement of a common behavioral goal. We discuss current andpotential applications of psychology, economics and consumer choice theoryin developing models of multiple category choice.     

Hybrid decision model for information project selection

Information project selection is an important and recurring activity in many organizations. Establishing a systematic project selection model thus is important for organizations. However, information system project selection is made difficult by the need to consider numerous quantitative and qualitative factors, such as business goals, benefits, project risks and limitations in available resources. This study proposes a hybrid measurement model for evaluating the overall effects of information projects. The selection model generates critical, quantitative and qualitative indicators to help managers realize the advantages/disadvantages of operational conditions. This hybrid selection model not only accelerates project evaluation and selection, but also helps organizations optimize project selection and thus achieve sustainable development.     

City clubs in Singapore: Competitor analysis and key success factors

The city clubs sector in Singapore has experienced increased competition in recent years. New city clubs have emerged and more establishments are getting ready for potential members. City clubs were formed by groups of individuals with same tastes, common interest or shared needs. Five city clubs are analysed using the framework of competitor analysis. The analyses provide a clearer picture of the operational differences between the different categories of city clubs. This provided aids to interested parties of city clubs to position, organise and operate the city clubs in the appropriate manner depending on the type of needs it is catering to. The Delphi Technique was applied in the research of the key success factors of city clubs.     

The role of technology development in national competitiveness — Evidence from Southeast Asian countries

Technology development (TD) plays a key role in national competitiveness (NC) by giving a country a competitive edge in our age of information. Lots of researchers have focused on specific areas of TD, such as technology transfer, technology acquisition, and technology management, in most of developed countries. To our knowledge, however, they have seldom discussed the influence of TD on other categories of NC and vice-versa in developing and less-developed countries. In this study, we examine the influences of each category of NC of TD. Southeast Asian countries are divided into three patterns by means of a cluster analysis. The results show that Singapore, Malaysia, Thailand, and Laos have the same rank on measures of TD and NC. Singapore, Thailand, the Philippines, and Laos have the same rank on measures of TD and Economic Performance. Malaysia and Thailand have the same rank on measures of TD and Management Capability. In contrast, the TD performance of Southeast Asian countries is worse than the human resources performance because of their insufficient human resources assigned to R&D. Furthermore, based on a strategic grid for comparing the relative performance, four types of country and their achievements are discussed. Singapore outperforms all Southeast Asian countries. Malaysia and Thailand have to leverage their TD resources in order to enhance their NC. The other countries are still hindered in developing the determinants of their NC. Finally, our study offers a path to the identification of how countries of each pattern should supplement their insufficient capabilities, and what are the most important issues that need to be addressed in retuning their TD policies in order to enhance their NC.     

Deregulation, Mergers, and Cost Savingsin Class I U.S. Railroads, 1974-1986

In this paper we attempt to disentangle the effects of deregulation on rail costs from those directly attributable to mergers. We estimate that cost reductions obtained from mergers ranged from a high of 33% for the Burlington Northern to a low of a 3% cost increase for the CSX. However, firms not engaged in significant merger activities experienced similar cost differentials indicating that consolidation was not a prerequisite for cost savings. We conclude that although mergers did confer some benefits on the participating firms, they were not a prerequisite for railroads being able to achieve substantial cost savings.     

Effectiveness of the hotel websites in Singapore: A perspective from Business‐to‐Business (B2B) organisations

Internet marketing in hotels allows potential users to learn about the hotels, to tour hotel facilities and to compare prices among other benefits without directly interacting with a hotel representative. For some users, Internet is the first and only channel consulted when booking hotel accommodations. In the present age, Internet is increasingly becoming both an opportunity and a challenge for hotel marketers. The opportunity lies in reaching users directly through Internet sites. The challenge is to get the guests’ attention long enough to tell the marketers’ story (Connolly, Olsen and Moore, 1998). It has always been controversial as to how effective Internet marketing can be. Both firms and researchers have indicated that the measuring of effectiveness of Internet marketing is a multidimensional question. This study sought to examine the effectiveness of business‐to‐business Internet marketing in the hotel industry in Singapore through analysing the differences between the travel agents expectations of service and hotels’ understanding of those expectations. A total of 66 hotel websites in Singapore were scanned to give the features analysis. On the basis of the perception scores of 112 inbound travel agents, the study identified the gaps between the users and the website provider (hotel industry).