How does law affect finance? An examination of equity tunneling in Bulgaria

We model and test the mechanisms through which law affects tunneling and tunneling affects firm valuation. In 2002, Bulgaria adopted legal changes which limit equity tunneling through dilutive equity offerings and freezeouts. Following the changes, minority shareholders participate equally in equity offerings, where before they suffered severe dilution; freezeout offer price ratios quadruple; and Tobin's q rises sharply for firms at high risk of tunneling. The paper shows the importance of legal rules in limiting equity tunneling, the role of equity tunneling risk as a factor in determining equity prices, and substitution by controlling shareholders between different forms of tunneling.     

The Thrift IPO as the First Stage of its Subsequent Sale

Although the underpricing of initial public offerings (IPOs) has been well documented, the underpricing of foreign IPOs have received relatively little attention. In a comparative analysis of foreign and domestic IPOs in the U.S. market for the 1990-1993 period, we find that for a matched sample, foreign IPOs are significantly more underpriced. Our results are consistent with the models developed by Rock (1986), Beatty and Ritter (1986), and Carter and Manaster (1990). Examination of the characteristics of foreign IPOs reveals that they are more likely to be larger in size, employ more prestigious underwriters and are much more likely to list on the New York Stock Exchange (NYSE).     

Notes to self: the visual culture of selfies in the age of social media

This paper explores the cultural fascination with social media forms of self-portraiture, commonly known as “selfies,” with a specific interest in the self-imaging strategies of young women in their teens and early 20s. Ubiquitous on social media sites like Facebook, Tumblr, Flickr, and Instagram, the selfie has become a powerful means for self-expression, encouraging its makers to share the most intimate and private moments of their lives – as well as engage in a form of creative self-fashioning. Popularly regarded as a shallow expression of online narcissism, the selfie is both adored and reviled; yet it flourishes as one of the most effective outlets for self-definition. Through a critical engagement with a history of feminist representational politics, this paper explores the political urgency at the heart of the selfie phenomenon, and contemplates whether the urge to compulsively self-image is mere narcissism, or a politically oppositional and aesthetic form of resistance.     

The Environment and Pork Production: The Oklahoma Industry at a Crossroads

Few current debates in agriculture are as contentious as those that surround pork production and the environment. Large amounts of pork production now take place on huge pork production megafarms, often located in nontraditional pork producing states. Initially environmental regulations of these facilities are usually not stringent, but these facilities are increasingly being regulated by costly and stringent legislative requirements. However, these facilities provide increased employment, incomes, and tax base for local communities. Common concerns are how these facilities should be regulated environmentally and appropriate industry responses. While this case study focuses on the Oklahoma pork industry, the general lessons of agricultural industrialization and environmental regulation have wide relevance.     

Two are better than one: Volatility forecasting using multiplicative component GARCH-MIDAS models

We examine the properties and forecast performance of multiplicative volatility specifications that belong to the class of generalized autoregressive conditional heteroskedasticity–mixed-data sampling (GARCH-MIDAS) models suggested in Engle, Ghysels, and Sohn (Review of Economics and Statistics, 2013, 95, 776–797). In those models volatility is decomposed into a short-term GARCH component and a long-term component that is driven by an explanatory variable. We derive the kurtosis of returns, the autocorrelation function of squared returns, and the R² of a Mincer–Zarnowitz regression and evaluate the QMLE and forecast performance of these models in a Monte Carlo simulation. For S&P 500 data, we compare the forecast performance of GARCH-MIDAS models with a wide range of competitor models such as HAR (heterogeneous autoregression), realized GARCH, HEAVY (high-frequency-based volatility) and Markov-switching GARCH. Our results show that the GARCH-MIDAS based on housing starts as an explanatory variable significantly outperforms all competitor models at forecast horizons of 2 and 3 months ahead.     

The learning style preferences of hospitality and tourism students: Observations from an international and cross-cultural study

This paper reports on a study of the learning style preferences of new entrants onto hospitality and tourism programmes in Australia and the United Kingdom. It suggests that a majority of students on these programmes in both countries have strong learning style preference that present some challenges to educators and the planning of learning experiences in higher education. Typically these students prefer learning styles that are concrete rather than abstract, and active rather than reflective. Furthermore, substantial minorities register low or very low preferences for learning in abstract and reflective styles. The initial learning style of new entrants on to taught programmes, therefore, present substantial teaching and learning barriers for educators who are attempting to develop reflective practitioners. Inappropriate teaching strategies can present some genuine learning difficulties for these students. In Australia, educators face added complexity because students from Confucian heritage backgrounds display learning style preferences at odds with their piers. They are more likely to respond positively to abstract and reflective approaches but negatively to active and concrete teaching strategies. The authors suggest one way of approaching the learning needs of these students is to use Kolb's experiential learning cycle as a way of encouraging the development of ‘balanced’ learning strategies that lead to reflective practice.     

Personal vs. non‐personal sources of information used in the purchase of men’s apparel

This study identifies and examines the relationship between several segmentation variables and the personal and promotional (non‐personal) cues used in the information‐gathering step of the purchase decision process. In the context of this study, personal cues refer to family members, coworkers and friends. Promotional or non‐personal cues refer to magazine advertisements, television advertisements, store displays and salespersons. Information regarding the use of personal and promotional cues was gathered from a national, random sample of 440 male consumers. The study found that adult male consumers report using promotional cues more frequently than personal information sources.     

A franchise by any other name? Tenancy arrangements in the pub sector

Recent changes in ownership and consumption patterns within the market have brought many operators to follow strategies that are more concerned with a retailing orientation. Many of the companies operating pubs are aiming to grow sales, and respond quickly to changes in consumer tastes and fashions. They no longer own brewing facilities and frequently control whole estates of the pubs that are marginal, and where the actions, skills and motivations of local unit managers are crucial for the success or failure of the property. The exploration of different forms of indirect control via tenancy and lease arrangements is recognition of the need to provide more entrepreneurial incentives for those managing these more marginal properties. In many ways, it is possible to view pubs owned by chains operated through both tenancies and leasing as a form of franchising. Certainly the literature and research of franchising hospitality services can help inform a study of leasehold and tenanted relationships in licensed retailing. Franchising in licensed retailing is almost wholly based on the tenanted/leased agreements, which stem from the ‘tie’. This paper argues that in the more retailing and service quality competitive environment pub operating companies will need to use more traditional franchising approaches than have been practised in the past.     

Prospectus Earnings Forecasts: Evidence And Explanations

Recent changes to prospectus regulations have generated considerable controversy. While the legally enforceable definition of “required information” may be uncertain, it seems clear that earnings forecasts are expected to play an important role. However, we find that the accuracy of these forecasts is questionable, as are many of the explanations offered for differences with the actual results. This calls into question the methods used for estimating future earnings and, ultimately, the usefulness of such forecasts. Laws relating to liability for prospectus information make this an issue of some concern for investors, as well as accountants and other professional advisers.