The interplay between target firm R&D,acquirer debt financing and takeover premia

The level of acquisition premia is of paramount importance in light of the vast sums paid to target shareholders and the often disappointing returns realized by corporate buyers. In this letter, we focus on the impact of R&D investments by targets on the acquisition premium contingent upon the acquirer’s financing choices. Based on a unique hand-collected sample of 407 listed European transactions, we find a positive effect of target R&D on premia paid. Yet, when acquirers finance the acquisition of an R&D intensive target with debt, the positive relation disappears. Consequently, we establish that financing sources affect bidding strategies of acquiring companies in case of difficult-to-value targets.     

我国宏观经济形势与金融业改革和发展

中国金融业坚持市场化取向的改革方向,在改革开放30年里走过了辉煌的发展历程,取得了举世瞩目的成就。在经济金融全球化趋势不断加强的背景下,中国金融业面临着机遇和挑战,需要进一步加强宏观调控,继续深化金融改革,支持经济又好又快的发展。     

Recent developments in EC USSR commercial and economic relations

Conclusion Trade with the Soviet Union represents only a small part of total Community trade (3.5 % of EC imports and 2.7 % of EC exports in 1990). EC imports from the Soviet Union increased moderately between 1989 and 1990 as well as between the first six months of 1990 and the corresponding period of 1991, whilst EC exports decreased sharply as a result of hard currency shortage in the Soviet Union.The CMEA and Soviet disintegration processes will lead to a substantial reorientation of trade flows. This development has already begun with large increases of trade between the EC and the Central and Eastern European countries.International assistance to the USSR mainly consists of export credits. Community assistance involves a large proportion of grants and technical assistance. The cost of assistance measures envisaged so far remains limited for Western countries.The economic effects of assistance would be enhanced if effective coordination was implemented among the providers. Adequate mechanisms such as triangular operations or the untying of assistance would be required in order to avoid crowding out traditional suppliers from Soviet markets.     

On wage- and profit-led demand regimes: learning from the evidence

Abstract

This paper contributes to the empirical research around the “wage-led” or “profit-led” demand regimes. It first reviews how Kalecki, and then Steindl, approached the relationship between economic growth and income distribution. Then, empirical analysis carried out under the probabilistic approach to econometric modeling shows statistical evidence, estimated through cointegration analysis, that in the long run, in three very open economies—Mexico, France, and Korea—the wage share is positively associated with demand and output. It finally discusses the macroeconomic dilemma that almost all countries have to face, i.e., a positive effect of a high-wage policy on demand and employment may diverge from a negative effect on output compatible with external equilibrium.     

A dyadic approach to the impact of differences in organizational culture on relationship performance

The authors extend previous research on relationship management by investigating the potential effect of differences in organizational culture on relationship performance among 124 dyads. Theory suggests that partner similarity may improve the feeling of we-ness thereby contributing to the perceived success of inter-firm cooperation. The findings reveal that differences in organizational culture are larger in less successful inter-firm relationships, but do not influence the perceived relationship success significantly. Our results suggest that relationship managers should not confuse compatibility with similarity; personal chemistry is important for relationship atmosphere but does not solely depend on similarities. Future research in this area may wish to concentrate on a more complete measure of organizational (sub)culture(s), the different levels of analysis (personal, organizational, dyad), relationship life cycles (stage models) and the role of organizational identity.     

Digital Transformation Through Exploratory and Exploitative Internet of Things Innovations: The Impact of Family Management and Technological Diversification*

This study examines the impact of family management on digital transformation with specific regard to the firm’s development of Internet of Things (IoT) innovations. Drawing on the distinctive characteristics of firms with family managers, such as the focus on family‐centered noneconomic goals, long tenure, emotional ties to existing assets, and rigid mental models, it hypothesizes that increasing family involvement in the top management team is negatively related to the development of IoT innovations that are distant from a firm’s existing technology base (i.e., exploratory IoT innovations) compared to exploitative IoT innovations. Further, the study proposes that the firm’s degree of technological diversification, especially in unrelated forms, reinforces this relationship. The longitudinal analysis between 2002 and 2013 on a sample of publicly traded German firms allows us to test our hypotheses from the beginning of the emergence of the IoT concept. Our findings show that due to the particular characteristics of their managers, family‐managed firms do not welcome the risks related to exploratory IoT innovations, and the benefit of risk diversification from technological diversification is lower than the cost of abandoning family‐centered goals. As our results imply that the involvement of family managers constrains the development of exploratory IoT innovation, the top management team composition in firms that intend to be at the forefront of the digital transformation should be accurately designed by avoiding a high proportion of family members.     

An analytical study of participating policies with minimum rate guarantee and surrender option

Finance and Stochastics - We perform a detailed theoretical study of the value of a class of participating policies with four key features: (i) the policyholder is guaranteed a minimum interest...     

POPULATION POLICY THROUGH TRADABLE PROCREATION ENTITLEMENTS*

One of the first tradable rights proposal is Boulding's (The Meaning of the Twentieth Century, London: George Allen and Unwin Ltd, 1964 ), dealing with overpopulation. We discuss both tradable procreation allowances and exemptions domestically and globally, to address underpopulation as well. We focus on three effects. Notably, the rights' tradability entails that whereas exemptions or expensive enough allowances benefit the poor, cheap allowances benefit the rich. A natalist policy also worsens the average education level of the next generation, whereas population control enhances it. Also, if procreation rights are grandfathered to countries, the scheme redistributes further. Our analysis suggests that procreation entitlements may be efficient in controlling population, without being necessarily anti‐redistributive.     

On Conditional Density Estimation

With the aim of mitigating the possible problem of negativity in the estimation of the conditional density function, we introduce a so-called re-weighted Nadaraya-Watson (RNW) estimator. The proposed RNW estimator is constructed by a slight modification of the well-known Nadaraya-Watson smoother. With a detailed asymptotic analysis, we demonstrate that the RNW smoother preserves the superior large-sample bias property of the local linear smoother of the conditional density recently proposed in the literature. As a matter of independent statistical interest, the limit distribution of the RNW estimator is also derived.     

管理层权力、内外部监督与企业风险承担*

本文以2005—2014年中国沪深A股上市公司为样本,采用主成分分析法构建管理层权力的衡量指标,实证检验管理层权力对企业风险承担的影响。研究结果表明,管理层权力越大,风险规避的倾向越明显,企业风险承担水平越低;良好的内外部监督机制能弱化管理层权力对企业风险承担的抑制作用;渠道测试表明,管理层权力通过削弱企业的融资水平规避风险,而对企业投资无显著影响。本文拓展了管理层权力的经济后果及企业风险承担影响因素领域的文献,对引导管理者积极承担风险、加强上市公司内外部治理体系建设、维护中小股东权益具有重要的现实意义。