Estimating the effectiveness of extension information systems using farm trials and subjective probabilities

A method of combining survey data and Dairy Herd Improvement Association (DHIA) records to achieve low cost farm trials is presented. Farm trials and surveys of current practices and production responses are useful to identify yield gaps between expectations predicted from experimental findings and actual field results. Different management schemes can be ranked using subjective probabilities and stochastic dominance to enhance successful implementation of research findings and to increase the feedback between researchers, extension workers, and producers. A survey of current masitis control practices and expected milk yield response is the example. Combining survey results with DHIA records allowed estimating the relationship between somatic cell counts (SCC) and milk yield. Eliciting beliefs about the relationship between SCC and milk yield showed that producers agreed with predictions from the statistical model. Subjective probabilities about SCC and mastitis control practices showed that our sample of experts and producers consistently ranked the different practices but extension agents had no consensus about the the most or least effective ones.     

Why managers divest—Evidence from New Zealand's largest companies

Chief Executives from New Zealand's largest companies were surveyed to distinguish divesting and nondivesting companies, and to identify the relative importance of the factors and motives which led to the divestment of 208 business units in the period 1985 through 1990. The divesting companies were considerably larger and faster growing than nondivestors. The typical divestment was motivated by the need to convert unattractive assets into liquid form which could then be held to strengthen the balance sheet, or reinvested in either the core business or new areas.     

Syndicated Loan Announcements and Borrower Value

Announcements of syndication loans increase borrowers' shareholder wealth if they are revolving credit agreements but not if they are term loans. Share price responses to revolving credit announcements are positive and significant, whereas the wealth effect for term loans is negative and significant. The results show that announcements from both the financial press and commercial information providers can affect borrower share price reaction. Overall, single syndication announcements appear to be more newsworthy than multiple announcements reported in the financial press, and we find evidence of information leakage, post‐announcement drift, or both.     

Copyright Damages and Statistics

This paper discusses the statistical issues that arise in conducting an economic damages analysis in the context of a litigation matter involving copyrights. Calculating damages in copyright cases turns out to be a natural application for econometric modelling methods. Surprisingly, elementary statistical issues can be a source of significant debate between the experts in such matters. In this paper, we present a case study and illustrate how issues such as interpretation of p -values and what "rejection of the null hypothesis" really "means" in such matters.     

The Impact of Regulation Fair Disclosure on Information Asymmetry and Trading: An Intraday Analysis

This study examines the impact of Regulation Fair Disclosure (FD) on liquidity, information asymmetry, and institutional and retail investors trading behavior. Our main findings suggest three conclusions. First, Regulation FD has been effective in improving liquidity and in decreasing the level of information asymmetry. Second, retail trading activity increases dramatically after earnings announcements but there is a significant decline in institutional trading surrounding earnings announcements, particularly in the pre‐announcement period. Last, the decline in information asymmetry around earnings announcements is closely associated with a lower participation rate in the pre‐announcement period and more active trading of retail investors after earnings releases.     

Financial Distress and Optimal Capital Structure Adjustments

We show that asymmetric information may prevent firms with pure discount bonds from renegotiating their capital structure prior to the maturity of the debt, although this would increase the value of the firm when its prospects are poor. This inefficiency can be reduced if the firm issues debt with a risky intermediate debt payment, such as a coupon or a sinking fund payment. We also demonstrate that bankruptcy institutions leading to deviations from absolute priority can improve the timing of recapitalizations by financially distressed firms. Finally, we show that, under certain conditions, the optimal capital structure adjustment during financial distress consists of a convertible debt-for-straight debt swap.     

中国自由贸易协定揭开隐藏的成本节约的秘密

当今的全球经济中,“中国价格”正在不断影响产品的生产区域和方式。中国具有丰富的劳动力资源以及低成本的生产结构。仅仅使用在其他国家生产产品的一小部分成本,就可以在中国生产出“中国制造”的产品。全世界的消费者当然希望能够获得更低的价格。