The Effect of Bank Debt Downgrades on Stock Prices of Other Banks

We find that debt downgrades of money center banks elicit negative stock price responses in nondowngraded money center banks. Stock prices of larger regional banks also react to these downgrades. Although downgrades of regional banks evoke negative stock price responses for regional banks in the same geographic region, the importance of geographic region as a factor determining the extent of intra‐industry reactions has diminished since 1989. Our results indicate that the merger and expansion activities triggered by interstate banking have blurred differences between regional and money center banks as interstate banking activity has moved towards nationwide banking     

RIP and the shift toward a monetary union: Looking for a “euro effect” by a structural break analysis with panel data

This paper aims to evaluate how the ex ante real interest rates of Euro area countries have been modified by the introduction of the euro. We use cointegration analysis with endogenous breaks in a panel data context. Our results show that the “euro effect” is significant in our sample and that after the introduction of the euro, the real interest parity (RIP) holds. This last conclusion is due to a decrease in the nominal interest rate differentials rather than to a reduction in goods and services price differentials and in the exchange rate volatility.     

Prospects and Potentials in Canadian Beef Production*

The production technology available to the Canadian beef industry comprises a much broader range than is generally recognized. It includes forest and pasture improvement, new grading standards, cross breeding, performance testing, use of bull and dairy beef, artificial insemination, introduction of new breeds, use of new physiological and nutritional knowledge, environmental control, and others. This article appraises the prospect for Canadian beef production moving onto a new technology base, and combining this technology with competent management and promotion in order to meet the demands for beef in the 1980“s. PERSPECTIVES ET POSSIBILITÉS DE PRODUCTION DU BOEUF AU CANADA–La technologie de production à la disposition de l'industrie canadienne du boeuf comprend une gamme beaucoup plus et éndue qu'on le pense en général. Elle comprend ‘amélioration des forêts et des pâturages, les nouvelles normes de classification, le métissage, les assais de rendement, l'usage de la viande de taureaux et de vaches laitières, l'insémination artificieile, l'introduction de nouvelles races, l'utilisation de nouvelles connaissances physiologiques et nutritives, le contrôle écologique et autres. Cet article évalue les perspectives du déplacement de la production canadienne de boeuf à une nouvelle base technologique, et la combinaison de cette technologie à une gestion et promotion compétentes pour répondre à la demande en boeuf au cour des années 1980.     

ETHICS AND THE MARKET ECONOMY: INSIGHTS FROM CATHOLIC MORAL THEOLOGY

The ethical dimension of market solutions to problems is often neglected by their proponents. This article examines the market from the standpoint of orthodox Roman Catholic moral theology. It illustrates how Catholic theologians have contributed to thinking about the market, draws attention to Catholicism's positive assessment of entrepreneurship, and outlines paths for future Catholic reflection on the market.     

电子材料更加智能

旧材料有新的使用方法和应用空间 6年前,如果你告诉科学家们驱动电子工业产生革命性进步的原材料将主要是沙子时,他们一定会无情地嘲笑你。然而一个不争的事实是,如果没有硅．陶瓷、塑     

The effects of unions on research and development: an empirical analysis using multi-year data

A link between unionization and research and development rates (research and development expenditures divided by output) is tested for in thirteen aggregate Canadian industries. A balanced panel of thirteen industries covering 1968 to 1986 reveals a negative relationship between industry unionization rates and research and development. The results hold when a number of techniques are used to control for unobserved industry heterogeneity and non-linear responses to unionization. In an industry that moves from the 25th to the 75th percentile of unionization, research and development is predicted to fall by about 40 per cent. JEL Classification: J51
Les effets des syndicats sur l'intensité de la recherche et développement: une analyse empirique sur plusieurs années . Ce mémoire examine le lien entre le degré de syndicalisation et les taux de dépenses en recherche et développement en proportion de la production dans treize industries canadiennes. Pour ces treize secteurs industriels, entre 1968 et 1986, il semble qu'il y ait une relation négative entre les taux de syndicalisation et les taux de dépenses en recherche et développement. Ces résultats sont robustesmême quand on utilise des techniques pour tenir compte de l'hétérogéneité des secteurs et des réponses non linéaires à la syndicalisation. Pour une industrie qui voit son taux de syndicalisation passer du 25e au 75e percentile, on prévoit une chute de 40% dans la recherche et développement.     

RAISING CAPITAL WITH PRIVATE PLACEMENTS OF DEBT

In this study the role of private placements of debt in the capital acquisition decision of public utilities is investigated. Whereas public offerings are sales of securities through financial intermediaries to the public-at-large, private placements are direct sales of securities by an issuing corporation to a limited number of institutional investors. In contrast to the negative stock price reactions typically found for public security sales, private placements are associated with significant positive abnormal returns in the shares of the issuing public utilities. Also, larger private placements appear to elicit a more favorable market response. Results are consistent with reduced information asymmetries and increased monitoring of the issuing firm resulting from the private placement.