The effect of uncertain inflation on firm value in a multiperiod economy

We model firm value in a multiperiod setting with uncertain inflation and show that real rates of return on the firm's securities are intertemporally dependent. The model also predicts an inverse intertemporal relationship between the real rate of return and the lagged value of Tobin'sq. We report empirical evidence in support of the hypothesized relationship. The model could explain the mean-reverting property of long-horizon stock returns reported in recent studies.     

Predicting the duration and reversal probability of leveraged buyouts

We examine the probability that a firm will return to public status following a leveraged buyout (LBO) transaction and for those LBOs that will eventually reverse, we examine the factors that impact the timing of the reversal. These two dimensions of the reversal decision are studied by estimating standard and split population hazard models for a sample of 343 LBO transactions. Our results indicate that not all LBO firms eventually will reverse, i.e. the net benefits of private status for some firms appear to be permanent. For those LBOs that will reverse, reversal probabilities are found to increase over the first seven or eight years following a typical LBO, then to decline thereafter.     

Predators and prey: a new ecology of competition

Much has been written about networks, strategic alliances, and virtual organizations. Yet these currently popular frameworks provide little systematic assistance when it comes to out-innovating the competition. That's because most managers still view the problem in the old way: companies go head-to-head in an industry, battling for market share. James Moore sets up a new metaphor for competition drawn from the study of biology and social systems. He suggests that a company be viewed not as a member of a single industry but as a part of a business ecosystem that crosses a variety of industries. In a business ecosystem, companies "co-evolve" around a new innovation, working cooperatively and competitively to support new products and satisfy customer needs. Apple Computer, for example, leads an ecosystem that covers personal computers, consumer electronics, information, and communications. In any larger business environment, several ecosystems may vie for survival and dominance, such as the IBM and Apple ecosystems in personal computers or Wal-Mart and K mart in discount retailing. In fact, it's largely competition among business ecosystems, not individual companies, that's fueling today's industrial transformation. Managers can't afford to ignore the birth of new ecosystems or the competition among those that already exist. Whether that means investing in the right new technology, signing on suppliers to expand a growing business, developing crucial elements of value to maintain leadership, or incorporating new innovations to fend off obsolescence, executives must understand the evolutionary stages all business ecosystems go through and, more important, how to direct those changes.     

Health care and philanthropy: where are we headed?

Peering into health-care's future means examining social, economic and political issues. Knowing what's coming will help development professionals deal with this new world.     

Understanding sales force automation outcomes: A managerial perspective

Despite the growing importance and potential of sales force automation (SFA), failure rates for SFA implementations have been reported to be as high as 55-80%. Given the growth of SFA programs, the potential effectiveness and efficiency SFA can bring to the sales force, and the magnitude of SFA failures, it is surprising that relatively few studies have addressed this important and timely topic. Many of the early studies have focused on the adoption and diffusion/infusion of SFA programs from an information technology perspective. The results of these studies have been inconclusive in explaining SFA implementation failures. The purpose of this study is to add to our understanding of SFA failures by investigating a broader set of implementation factors than those typically included in acceptance of technology studies. We conducted in-depth personal interviews with executives from three global organizations who were responsible for SFA initiatives in their firm. Results from the in-depth analyses yield recommendations and a proposed model to assist managers in the implementation of their SFA as well as getting their salespeople to “buy-in” to the SFA, and ultimately reduce SFA failures.     

What fosters awe-inspiring experiences in nature-based tourism destinations?

Awe, an intense, and usually positive emotion often experienced by individuals visiting nature-based tourism destinations, has the potential to nurture strong connections between individuals and their environment. Despite this, awe research has been neglected in the tourism literature, especially in relation to the aspects or features that foster awe-inspiring experiences. This study sought to rectify this by focusing on such experiences in the remote, unique Kimberley region in north-western Australia. A total of 49 tourist interviews were conducted to ascertain their responses to the question “what has been your most awe-inspiring experience and why?” Responses highlighted five distinct facets contributing to respondents’ awe-inspiring experiences: marine fauna, aesthetics, ecological phenomena, vast geological landscapes and reflective/perspective moments. Future research should focus on exploring the applicability of these facets to other nature-based tourism destinations.