Synergy or New Information as a Source of Wealth Change in Acquisitions: The Case of Abandoned Bids

Potential sources of wealth change from acquisition are claimed to include both the opportunity for synergistic benefits and new information about the companies involved. New information may involve revaluation of previously undervalued or under-utilised assets. In the current study analysis is undertaken of the pattern of returns to targets in abandoned bids in the UK which were initiated during the period 1977–1986. The results provide evidence to support the view that acquisitions are undertaken not only for synergistic reasons but also to acquire previously under-utilised assets. The results also provide support for the hypothesis that the market for corporate control acts as one of the disciplinary mechanisms to improve corporate profitability.     

Strategic order splitting,order choice,and aggressiveness: Evidence from the Taiwan futures exchange

We investigate the strategic order‐splitting behavior and order aggressiveness of different types of traders using a unique dataset on the Taiwan Futures Exchange. By examining the trades and orders for each and every account, we find that, as compared with domestic institutional traders and individual traders, foreign institutional traders and futures proprietary firms are more likely to split their orders and it appears that the price adjustments after their trades are permanent. Foreign institutional traders and futures proprietary firms seem to be better informed, with their orders apparently being split so as to reveal their information on a gradual basis. Furthermore, we find that foreign institutional traders and futures proprietary firms use fewer market orders, choosing instead to submit aggressive limit orders, possibly due to their desire to make the most of their information advantage. © 2009 Wiley Periodicals, Inc. Jrl Fut Mark 29:1102–1129, 2009     

Transitions to low carbon transport futures: strategic conversations from London and Delhi

Climate change is a global problem and across the world there are major difficulties being experienced in reducing carbon dioxide (CO₂) emissions. The transport sector in particular is finding it difficult to reduce CO₂ emissions. This paper reports on two studies carried out by the authors in London (UK) and Delhi (India). It considers the common objectives for transport CO₂ reduction, but the very different contexts and baselines, potentials for change, and some possible synergies.Different packages of measures are selected and scenarios developed for each context which are consistent with contraction and convergence objectives. CO₂ reduction potentials are modelled and quantified by package and scenario. London is considering deep reductions on current transport CO₂ emission levels; Delhi is seeking to break the huge projected rise in transport CO₂ emissions.The scale of policy intervention required to achieve these goals is huge and there is certainly little public discussion of the magnitude of the changes required. The paper argues for a ‘strategic conversation’ at the city level, using scenario analysis, to discuss the priorities for intervention in delivering low carbon transport futures. A greater focus is required in developing participatory approaches to decision making, alongside network investments, urban planning, low emission vehicles and wider initiatives. Aspirations towards equitable target emissions may assist in setting sufficiently demanding targets. Only then is a wider awareness and ownership of potential carbon efficient transport futures likely to take place.     

Does mandatory food safety training and certification for restaurant employees improve inspection outcomes?

The purpose of this study was to explore the relationship between mandatory food safety training and certification and inspection results of chain restaurants and independent restaurants, using current food safety inspection results of food service establishments in Central Florida. More specifically, this study examines whether there is any statistically significant difference in the violation frequency among chain and independent restaurants. Reducing the risk of any foodborne illness is a critical strategy that industry stakeholders should pursue in an area dominated by tourism such as Orlando, Florida. A one-way ANOVA was used to determine the differences between the two types of restaurants. Findings indicate that there is significant difference between chain and independent restaurants for critical violations. No difference was found when comparing chain verses independent restaurants for non-critical violations.     

Exchange rate determination: a theory of the decisive role of central bank cooperation and conflict

Economists’ faith that variable exchange rates benevolently equilibrate has been empirically disconfirmed. That faith is here tackled at its theoretical core with an exchange rate model that although ultra abstract, includes the undeniable fundamentals of market power and differential goals of central bankers and large-scale private players. It permits a game theoretic analysis under the assumption that all agents maximize their payoffs. The paper then relaxes the assumption of maximising agents, allowing for a more complex and thus realistic second version of the model that is interpretable within SKAT, the Stages of Knowledge Ahead Theory of risk and uncertainty. In an experimental setting, this second version of the model points to: a) the inability of agents in central banks, governments and the private real and financial sectors to operate in maximising ways; b) destructive central bank conflict; and c) the widely discrepant outcomes arising from the dynamics of individual personality differences. The paper’s theoretical and empirical findings thus both point to the merits of a single world currency.     

Island residents' identities and their support for tourism: an integration of two theories

Most studies that examine tourism impacts and community attitudes have been carried out from the perspective of industrialized economies, making the findings less valid for small islands. This paper discusses some pertinent issues in relation to tourism development and community attitudes in small islands, and it develops and presents a conceptual framework based on social exchange theory and identity theory. The different facets of identity relevant to small-island communities that are likely to influence attitudes and support for tourism are incorporated in the framework and discussed. These include occupational identity, environmental identity and gender identity. Based on these, five propositions are developed. The study concludes that inclusion of identity variables in behavioral models could increase their predictive power in explaining attitudes to tourism and consequent support for the industry.     

Who is the “Self” that Buys?: An Exploratory Examination of Imaginative Consumption and Explanation of Opinion Leadership

The present research, first, combines literatures on self‐theory, imaginative consumption, and opinion leadership. Second, the research, using self‐theory, explores individual difference variables predictive of imaginative consumption in two studies using different populations. The results reveal fashion product involvement, self‐esteem, fashion knowledge, idea shopping motivation, and probability of a mispurchase influence the degree to which an individual imaginatively consumes fashion products. Third, the research makes a contribution by explaining from where opinion leaders derive their abilities—imaginative consumption. In contributing to scholarly work, the research explains the role of imagination and opinion leadership in both theories of self‐verification and self‐enhancement. Managerial implications include identifying potential opportunities for marketing communications and retail management. The findings are promising and encourage further exploration of the phenomenon of imaginative consumption.     

The Internal and External Impact of Historical Designation on Property Values

Designation of historic properties and historic districts is increasingly used as a means to revive central-city neighborhoods and to promote urban economic development. While preservation activities are thought to generate positive externalities for surrounding neighborhoods, these external effects have been difficult to quantify. Using a database of tax-appraisal records for residential properties in Abilene, Texas, this study demonstrates that there are significant, positive externalities associated with historic designation. We perform simple cost-benefit calculations and find that the internal and external benefits more than outweigh the (nonzero) costs associated with historical designation. Moreover, from the city of Abilene's perspective the property-tax incentives provided to historic reinvestment are outweighed by the added property-tax revenue created by the increased value.