SOME ESTIMATES OF THE IMPACT OF CORPORATE DIVERSIFICATION ON THE VALUATION AND LEVERAGE OF USA FIRMS: ESTIMATES FROM 1972 DATA

This paper estimates the effect of corporate diversification on market valuation and leverage. Using a data base which allows one to determine the product lines of companies on the 3-digit S.I.C. code level, a set of multi-industry firms was chosen. For each of these diversified firms, a portfolio of single industry firms was constructed which matched the component parts of the multi- industry firm. Tests showed that although diversified firms employ significantly greater financial leverage, their relative market value is significantly less than that of the matching portfolios of single industry firms with which they com- pete. This study does not support the view that corporate diversification creates synergistic benefits which can be translated into increased market value of the firm's securities.     

The Demand and Supply of Mortgage Funds and Mortgage Loan Terms

The supply of and demand for residential mortgages has been the subject of much discussion in the literature. Many of these studies have used single equation, partial adjustment models with the price specified as the contract rate. In this study, two of the assumptions that underlie these previous studies are tested empirically. First, the proper specification of the price of mortgage funds is tested by using both the contract rate alone and all of the terms of the mortgage as the price. Second, the speed of adjustment in the mortgage market is examined by estimating the model in both the instantaneous adjustment and partial adjustment forms. Both of these tests are carried out using a simultaneous equation rather than a single equation model. The empirical results indicate that the contract rate along with the loan initiation fees, the loan-to-value ratio and the maturity is the better specification of price and that the partial adjustment model performs better than the instantaneous model in the mortgage market.     

Testing neoclassical convergence in regional incomes and earnings

The time-series properties of per capita income and per capita earnings in the regions of the United States are tested for consistency with the neoclassical growth model's prediction of convergence. We find evidence for per capita income convergence for U.S. regions during the 1929–1990 period after allowing for a trend break in 1946. These findings support the neoclassical model's prediction of convergence. The evidence for per capita earnings convergence is, however, less conclusive. Shocks to per capita earnings are found to be more persistent than shocks to per capita income. This implies that the regional distribution of transfer payments tends to smooth the effects of deviation on relative regional per capita earnings and reinforce trends in per capita income convergence.     

An investigation into commitment in non-Western industrial marketing relationships

This paper reports an investigation into the antecedents of commitment in non-Western industrial marketing relationships. The authors draw the antecedents from extant literature and posit that commitment is related to trust (integrity and reliability), communication quality, conflict, and similarity (social, ethnic, and economic). It is further argued that trust mediates the effects of communication, conflict, and similarity on commitment. As an extension, the authors examine the moderating effects of normative contracts (an implicit understanding of roles and responsibilities) on the construct interrelationships. The hypotheses are tested using data collected from approximately 150 industrial marketing relationships sampled from overseas Chinese firms. The results generally support the authors' framework; however, the mediating hypotheses are not supported. There is evidence of systematic differences in the effects of the studied antecedents on commitment and trust. Furthermore, a multigroup analysis provides evidence of significant moderating effects due to contracting mode. The study provides new insights into the theory and practice of industrial marketing.     

Transformation and Upgrade： Creating a Sustainable World -- Address delivered at the 13th China Beijing International High-Tech Expo

The President of American Society of Civil Engineers,Blaine Leonard,P.E.,D.GE,F.ASCE,addressed an attentive audience of entrepreneurs,engineers,practitioners and scholars at the China High Tech Conference（CHITEC） held at the Holiday Inn Crown Plaza Hotel on Friday,May 28,2010.During his address at the CHITEC Conference,Leonard encouraged Chinese civil engineers to join their U.S.counterparts in embracing and encouraging sustainable practices,and to work together to develop innovative solutions.（By Mrs.Eva Lerner-Lam）     

Anti-dumping measures as a tool of protectionism: A mechanism design approach

In this paper we explore the design of optimal incentive-compatible anti-dumping (AD) measures. When the weight given to the domestic firm's profit in the government's objective function is relatively small, it is shown that no AD duty should be imposed if the foreign firm reports its own costs, but a constant AD duty should be imposed if the domestic firm reports the foreign firm's cost. When this weight is large, in either case of reporting the AD duty is a prohibitive tariff. The optimal AD measures are modified in the presence of a GATT/WTO constraint. JEL Classification: F12, F13
Les mesures anti-dumping en tant qu'outil de protectionnisme: une approche en termes de construction de mécanismes. Ce mémoire examine la construction de mesures optimaales anti-dumping (AD). Quandla valence des profits de la firme domestique est faible dans la fonction objective du gouvernement, on peut montrer qu'aucune mesure AD ne devrait être imposée si l'entreprise étrangère révèle ses propres coûts, mais qu'un droit AD constant devrait être imposé si c'est la firme domestique qui révèle les coûts de l'entreprise étrangère. Quand la valence des profits de la firme domestique est grande, quelle que soit la source de l'information, la mesure AD qui s'impose est un droit de douane prohibitif. Les mesures optimales doivent évidemment être modifiées pour prendre en compte la contrainte engendrée par l'existence des règles du GATT/OMC.