The Agency Structure of Loan Syndicates

Leaders of loan syndicates often delegate some administrative tasks to banks known as co‐agents. One reason is that co‐agents are specialized banks that help split the costs of managing the syndicate. Another reason is that co‐agents monitor the leader on behalf of syndicate members to mitigate informational asymmetry problems. Large sample tests on the Dealscan database provide support for both arguments. Evidence of repeated contracting between the same banks explains the moderate magnitude of monitoring effects.     

Profiling the non-user: Rethinking policy initiatives stimulating ICT acceptance

Business strategies and policies that were successful in increasing internet penetration in the early days may no longer be appropriate. This is most probably so in countries where a bigger proportion of the population is already connected to the internet. As more people are online, it becomes more likely that the remaining fraction of non-users is either hard to convince, under-skilled or simply lacking the financial resources to afford a connection. In view of this, a new policy approach is proposed to increase ICT acceptance. The approach is based on strategies of segmentation and differentiation. This entails that policy initiatives are specifically targeted towards different groups in the population. This article demonstrates that being a non-user can be explained by a combination of access problems, lack of ICT skills or rather negative attitudes towards ICT or by the outweighing effect of one of them. It also provides a framework for setting up new policy measures.     

M&A Operations and Performance in Banking

This paper investigates whether M&A operations influence the performance of banks. Using a sample of 714 deals involving EU acquirers and targets located throughout the world over the period 1991–2005, we investigate whether M&A operations are associated with improved performance (using both standard accounting ratios and cost and alternative profit X-efficiency measures). Despite the extensive and ongoing consolidation process in the banking industry, we find that M&A operations are associated with a slight deterioration in return on equity, cash flow return and profit efficiency and with a marked improvement in cost efficiency. Hence, the improvements in cost efficiency appear to be transferred to bank clients. These changes in performance are directly attributable to the M&A operations, and would not have occurred in their absence. Moreover, these changes exhibit a particularly negative trend for cross-border deals to testify the importance of geographical relatedness in order to achieve better post-M&A performance. The environmental and bank-characteristics that make a deal successful or unsuccessful are finally identified.     

Taming wicked problems: towards a resolution of tourism access to Traditional Owner lands in the Kimberley region,Australia

This paper names and describes the longstanding issue of tourism access to the Kimberley coast region in northwest Australia. Tourism access is a problem because it occurs without appropriate permissions from the Traditional Owners. The granting of access permission is a fundamental component of the local Traditional Owner ontology, or concept of being. Tourism activities cannot be culturally sustainable without appropriate Traditional Owner permissions. We argue that this seemingly simple issue is a “wicked problem” and must be recognised as such to facilitate its “taming” to create a culturally sustainable local tourism industry. The paper first examines the cultural and historical context, establishing a more nuanced understanding of the problem. Framed in Rittel and Webber's definition of a wicked problem, it then describes its complex and intercultural nature, highlighting repeated and continuing efforts and failures by key parties to address it, linked to an ingrained lack of political will. We conclude that operators could take ownership of the wicked problem and contribute to taming it by proactively engaging in a direct relationship with Traditional Owners based on transformational learning. The paper contributes to tourism planning studies, to the concept of the Just Destination and to indigenous tourism understanding.     

Monitoring and evaluation practices of volunteer tourism organisations

Monitoring and evaluation are tools that can facilitate sustainable and responsible tourism planning and management in organisations through encouraging good practice and the continuous improvement of programmes. However, to date, there is limited knowledge and understanding of how, or indeed if, volunteer tourism organisations actually monitor and evaluate their programmes. The aim of this paper is to identify and critically examine the extent to which volunteer tourism organisations engage with the monitoring and evaluation of their projects. Based on a survey of 80 organisations and qualitative interviews with representatives from 29 organisations, the research found that monitoring and evaluation practices vary greatly. Participants readily accept a lack of time and resources as barriers to monitoring an evaluation, there is an assumption that any volunteer-host community interaction is positive, and despite voluntary guidelines, there is little incentive to prioritise monitoring and evaluation of volunteer programmes. A small number of volunteer organisations emerged as an exception to this overall pattern and are discussed. Discrepancies between stated importance of monitoring and evaluation and actual practices are examined and opportunities for improved practices identified.     

Discretionary Accounting Choices: A Debt covenants Based Signalling Approach

This paper seeks to explain the discretionary accounting choices made by managers in a world characterised by asymmetric information between managers and investors. It considers a firm whose capital structure consists of both debt and equity, a manager who protects the interests of the firm's existing shareholders, and a financial market. The manager is committed to engage in an investment opportunity and needs to raise some equity to finance it. He is furthermore endowed with some private information about his firm's future earnings. The paper shows how, under certain conditions, the manager may credibly communicate his private information to investors through his accounting choices. In this equilibrium, the selection of balance sheet strengthening and income increasing accounting choices signals unfavourable information while the use of balance-sheet weakening and income- decreasing accounting choices signals favourable private information. The latter firms should thus experience positive abnormal returns around the announcement dates of their accounting choices.     

Registering Ideology in the Creation of Social Entrepreneurs: Intermediary Organizations, ‘Ideal Subject’ and the Promise of Enjoyment

Few industries have been pressured to develop corporate social responsibility (CSR) standards and policies like oil and gas. This has translated into the creation of non-governmental organizations and branches of the oil and gas firms focused on CSR. However, given the intrinsic complex characteristics of this industry, its global reach, and the fact that its operations affect and involve a wide variety of stakeholders, CSR issues cannot be defined and implemented exclusively at the industry or firm levels, but require the participation of other actors affected directly or indirectly by oil and gas activities. In this paper we argue, first, that oil and gas CSR issues are collectively constructed through meta-organizations (organizations composed by other organizations), and, second, that the complexity and variety of CSR issues require companies to build industry-specific and non-industry-specific collective actions. Based on how oil and gas firms participate in this multi-level co-construction of CSR issues, we created a typology of meta-organizations as infra-sectoral, sectoral, cross-sectoral, and supra-sectoral meta-organizations.     

Which Dimensions of Social Responsibility Concern Financial Investors?

Social and environmental ratings provided by social rating agencies are multidimensional. The first goal of our paper is to identify a small number of independent and relevant socially responsible (SR) dimensions reflecting a firms’ coherent posture toward social issues. We put forward that these dimensions are not exactly the same as the ESG ones (Environment, Social, and Governance). Using the six sub-ratings provided by the Vigeo rating agency, we perform a principal component analysis and we highlight three main independent SR dimensions related to (1) business stakeholders (employees, customers, and suppliers), (2) societal stakeholders (environment and society), and (3) financial stakeholders (stockholders and debt holders). The second objective of our paper is to explore the link between stock returns and these three SR dimensions. Our most notable finding is that for each SR dimension, investors ask for an additional risk premium when they accept to hold non-socially responsible stocks. The cost of equity is thus lower for SR firms. The average premium over the period 2003–2010 is larger for the components “business stakeholders” and “financial stakeholders” than for the component “societal stakeholders.” The premium for this last component has only existed since the end of 2008. Since that time, environment and community involvement have become important risk factors strongly considered by investors. For the three dimensions, investors notably penalize large non-social firms and reward small social firms.     

R&D Intensity and Corporate Financial Policy: Some International Evidence

This paper presents evidence on the financial policies of firms strongly engaged in research and development activities. By referring to the under-investment paradox, the asset substitution problem, the asset specificity proposition and the information asymmetry literature, we postulate that R&D-intensive firms should adopt specific financial policies. In conformity with our hypotheses, empirical results based on a sample of R&D-intensive and non-R&D firms in four major industrialized countries (Europe, the UK, Japan and the US) show that R&D-intensive firms exhibit significant lower debt and dividend payment levels, but shorter debt maturities and higher cash levels than non-R&D ones.