Determinants of state equity ownership,and its effect on value/performance: China's privatized firms

Evidence on the relationship between state ownership and performance in China's privatized firms is convex, concave and linear. Hence, the nature of this relationship is not resolved. This study examines this relationship for a larger, more recent sample of 4315 firm year observations of privatized Chinese firms during 1996–2003. Results support the hypothesis of a convex relationship between state ownership and performance showing benefits from strong privatization and state control. Not only is ownership structure found to affect performance, but also ownership concentration and balance of power jointly affect performance. Chinese firms with mixed control show significantly poorer performance than state or private controlled firms affirming the problem of ambiguity of ownership control, property rights, agency issues, profits and welfare objectives. New determinants of state ownership in China's firms are strategic importance, legal ownership, profitability, and market performance. Privatization benefits because there is a causal relation between ownership and performance.     

The Relationship between Fair Value,Market Value,and Efficient Markets*

This paper proposes that an assumption of reasonable market efficiency is at the essence of the relevance of fair value for financial reporting purposes. The paper's examination of this proposal begins with a review of recent academic literature on market efficiency, and on evidence of inefficiencies and their implications for the ability of the efficient market hypothesis to explain what market prices represent. It concludes that there is wide acceptance in this literature that a reasonable level of efficiency can generally be presumed to exist in active, well‐regulated capital markets. The paper examines the essential attributes of a reasonably efficient market for fair value measurement purposes, and some basic implications for its reliable estimation. This is done in comparison with the provisions of the fair value measurement standard of the Financial Accounting Standards Board (FASB) (Statement of Financial Accounting Standards [SFAS] No. 157). It is concluded that the concept of reasonable market efficiency could provide a sound conceptual framework for defining fair value that is founded in real, observable market prices. It is demonstrated that, in contrast, SFAS No. 157 does not provide a clear, unequivocal concept of fair value, and that it permits estimates of fair value that have no demonstrable basis in real, observable market prices. Nevertheless, it appears that arguments typically put forward by the International Accounting Standards Board and the FASB for the relevance of fair value for financial reporting purposes do imply a presumption of reasonably efficient markets.     

LEARNING TO WALK BEFORE WE CAN PRICE: THE COSTS AND BENEFITS OF ROAD PRICING POLICIES

The introduction of widespread road pricing is being considered in the UK and abroad as a means to allocate scarce road space. By looking at the economic costs and benefits of both national and local road pricing schemes, this paper seeks to examine how widely charging should be implemented.     

What determines early exercise of employee stock options in Australia?

Employee stock options (ESOs) are a popular way of remunerating employees. We analyse factors at the firm and option level affecting the employee's decision to exercise ESOs before they mature. Exercises over the period 1998–2004 are analysed and the key factor influencing early exercise is found to be dividends. Exercises frequently occur well before maturity, but in most cases little time value is sacrificed. Our findings have implications for the ‘fair’ valuation of ESOs in companies’ financial statements, as required by the relevant Australian accounting standard, AASB 2.     

The effects of open skies agreements on transatlantic air service levels

This paper examines the effects of Open Skies agreements on service levels in transatlantic aviation markets. Our route analysis reveals that Open Skies agreements between European countries and the US have resulted in both increases and decreases in service levels. Of the 22 European countries with US Open Skies agreements in place by 2007, only seven demonstrated increases in service levels while six showed reductions. Five countries saw no significant change and the remaining four have yet to receive direct transatlantic service, suggesting that liberalization alone does not lead to service level increases.     

The combined equilibrium of travel networks and residential location markets

The combined ‘user’ equilibrium of travel networks and residential location markets is shown to exist and to be unique in the expected allocation of households to residential locations and to the routes and links of the network, in the vacancies and rents of residential locations and in the congested travel time and cost of each network link. The formulation combines a multinomial logit model of households' location and route choices derived from utility maximization, a binary logit model of house owners' offer decisions derived from profit maximization and the standard model of network congestion. A travel disutility measure (consistent with utility maximization) replaces the standard ‘generalized cost function’. The proof utilizes a non-linear programming formulation which reproduces the simultaneous equilibrium conditions of the behavioral formulation. The stability of the unique equilibrium position is briefly discussed, a computational algorithm is proposed and hints for generalized formulations are provided.     

Enablers for end‐user entrepreneurship: An investigation on Italian food bloggers

This article examines unconventional entrepreneurship (accidental or end‐user entrepreneurs) to determine whether the decision‐making phase of the entrepreneurial process is collective. The analysis identified a virtuous circle that links knowledge, innovation, judgment, and decision making to collective interactions built on passion, experience, and sharing. To study food bloggers as unconventional user entrepreneurs, data were collected and analyzed using netnographic analysis. A supplementary online survey of food bloggers and their followers was also performed. Three groups of food bloggers are identified: amusing, functional, and fervent. Only fervent food bloggers, thanks to the virtuous circle built on passion, experience, and sharing as enablers, can be considered accidental or end‐user entrepreneurs.     

Corporate Social Responsibility and Business Value of Multinational Companies: Lessons from a Sub-Saharan African Environment

ABSTRACT

The issue of corporate social responsibility (CSR) as an approach for businesses to independently take actions that lead to better levels of societal development as well as higher value creation for the business, particularly in developing countries has gained much advocacy. Thus, the purpose of this study is to examine the relationship between CSR and business value of multinational companies (MNCs) in sub-Saharan Africa. The study adopted quantitative research methodology and using multiple regression analysis, findings show that CSR can positively and significantly predict business values in the multinational subsidiaries. These values include direct (economic value) and indirect (human capital value and reputational business value). This paper therefore contributes to a novel CSR index from the perspective of business value and sustainability of MNCs in the Sub-Saharan Africa (SSA) environment. Thus, the paper recommends MNCs operating in Africa to enhance their social investment through their CSR strategy with the aim that CSR must not be regarded as a cost center, but an investment instrument that can accrue various dividends.