How risk influences the choice of governance mode in biopharmaceutical inter-firm relationships

This paper proposes a new theoretical framework for assessing the influence of risk in shaping the governance form in biopharmaceutical inter-firm relationships. In particular, we propose a multidimensional operationalization of relational and performance risk and, by following Transaction Cost Economics (TCE) and Real Options (RO) theory constructs, we hypothesize a relation between the aforementioned risk components and the choice of governance form. Specifically, following TCE reasoning, we hypothesize that a high level of relational risk leads towards more hierarchical governance forms, while, following RO theory, we hypothesize that a high level of performance risk leads toward market-oriented governance forms; finally, we hypothesize a moderating effect of each risk component on the other. We empirically test our framework through the analysis of 353 inter-firm relationships signed worldwide between pharmaceutical and biotech companies from 2007 to 2010. The results show substantive support for our theoretical framework. Furthermore, we find a significant moderating effect of the performance risk on the TCE relation between relational risk and governance forms.     

Finance, governments, and trade

We study how financial transactions may respond to exogenous variation in trade opportunities not only directly, but also through policy channels. In more open economies, governments may find it more difficult to fund and enforce public policies that substitute private financial transactions, and more appealing to deregulate financial markets. We propose a simple theoretical model of such policy-mediated relationships between trade and financial development. Empirically, we document in a country panel dataset that, before the 2007–2008 crisis, financial market volumes were robustly and negatively related to the share of government consumption in GDP in regressions that also include indicators of financial regulation and trade openness, and we seek support for a causal interpretation of this result in instrumental variable specifications.     

What do analysts do? Discussion of “Information interpretation or information discovery: which role of analysts do investors value more?”

Three decades of accounting and finance research has extensively studied the outputs from financial analysts. However, there is sparse systematic evidence on what analysts do to generate their outputs in the form of forecasts, recommendations, and research reports. Livnat and Zhang (Rev Account Stud, 2012) provide interesting new evidence regarding the relative amount of value added that analysts produce by examining investors?? reaction to analysts?? forecast revisions issued promptly after firms?? public disclosures compared with those issued at other times. Their analysis shows that prompt revisions are associated with larger returns, which the authors interpret as evidence that analysts?? ability to interpret public disclosures is more valuable to investors. Three issues bear consideration in the interpretation of these findings.     

Imports,Exports and the Firm Product Scope: Evidence From Turkey

By exploiting an original firm‐product level dataset for Turkish manufacturing, ‐way trading on firm product scope and innovation in a multiple treatment setting. Our evidence points at the prominent role of exporting, while no effect is found for importing only. Nonetheless, we corroborate existing evidence on the virtuous nexus between the two international activities and add to the literature by showing that joint firm involvement in exporting and importing fosters product innovation and quality upgrading.     

Marine preference cargo market: Opportunities for minority shippers

Conclusion It appears that the general cargo market should not be the primary target for a minority shipper. After a more detailed analysis of the market, on a specific commodity basis and by trading areas, a profitable niche may be developed for a minority shipper in the Dry Bulk market, in light of the recently completed Russian grain deal. Fifty percent of that tonnage must be moved in U.S. flag vessels. Under the terms of the new grain treaty, the Soviets are obligated to purchase 5.9 million long tons (2,240 pounds) of grain annually, with the right to purchase two million more tons. The agreement is for five years, beginning in 1976.