The international hotel industry in Spain: Its hierarchical structure

This paper empirically analyzes the indebtedness of the main companies in the Spanish hotel industry. In particular, it introduces a method to analyze the structures and dynamics of the largest companies in this sector. The method combines the Pearson correlation coefficient with the nearest neighbour single linkage clustering algorithm (Mantegna, R. N. (1999). Hierarchical structure in financial markets. The European Physical Journal B, 11, 193–197). The Pearson correlation coefficient determines a metric distance between two different multidimensional time series that is then used to construct a Minimal Spanning Tree. From this tree, an ultra metric distance that is used to derive the Hierarchical Tree can be computed. From the analysis of the time series data of companies included in the SABI, or the Iberian Balance Sheet Analysis System 2005, it is possible to derive a hierarchical organization of the Spanish hotel firms. In particular, different dynamic clusters of companies, which correspond to their common production and indebtedness strategies, can be detected.     

Testing for forward-looking behaviour: evidence from the enactment of smoking restrictions

This paper develops a new test for forward-looking behaviour based on the establishment of public smoking restrictions. Given that the announcement of these restrictions effectively increases the future cost of smoking, we should expect forward-looking smokers to curb their consumption before the restriction is effective due to complementarity between present and future consumption. I perform the estimation using detailed, high-frequency household-level purchase data. The results provide evidence against the forward-looking behaviour of smokers. Households do not reduce their cigarette purchases before announced public smoking restrictions are established; they only do so once the restriction is in effect.     

A note on linear utility

Summary We show that any complete, lower-semicontinuous, and translation-invariant preorder defined on a topological vector space admits a linear and continuous utility representation.Thanks are given to an anonymous referee for his/her valuable suggestions and comments.     

Multiclass Corporate Failure Prediction by Adaboost.M1

Predicting corporate failure is an important management science problem. This is a typical classification question where the objective is to determine which indicators are involved in the failure or success of a corporation. Despite the complexity of the matter, a two-class problem has usually been considered to tackle this classification task. The objective of this paper is twofold. On the one hand, we apply the Adaboost.M1 algorithm to improve the accuracy of a classification tree in a multiclass corporate failure prediction problem using a set of European firms. On the other, we introduce novel discerning measures to rank independent variables in a generic classification task.

The choice between joint ventures and acquisitions in foreign direct investments: The role of partial acquisitions and accrued experience

In order to avoid the liability of foreignness, firms invest in foreign countries pooling their own resources with those of local firms. This combination of assets may take place through joint ventures or acquisitions. When facing the need to choose between these two entry modes, managers find that there are two critical factors that have received little attention in previous research: the existence of different types of acquisitions—full acquisitions, pure partial acquisitions, and shared partial acquisitions—and the role of the experience accrued by the investing firm in carrying out investments through a particular entry mode. Both factors, as well as their managerial implications, are analyzed in this article. © 2004 Wiley Periodicals, Inc.     

Identifying the determinants of mortgage default in Colombia between 1997 and 2004

This paper examines the relationship between mortgage default decisions and relevant observable variables in Colombia between 1997 and 2004. We estimate a discrete choice model of default using a panel of individual mortgage characteristics and payment information. We show that home prices and debt balances are the main determinants of mortgage default. We account for the presence of unobserved heterogeneity using Survey data and simulation techniques. Including controls for the distribution of income shows that income was not important but helps clarifying the relevance of mortgage leverage in the determination of the observed default rates.     

Relative price volatility under Sudden Stops: The relevance of balance sheet effects

Sudden Stops are associated with increased volatility in relative prices. We introduce a model based on information acquisition to rationalize this increased volatility. An empirical analysis of the conditional variance of the wholesale price to consumer price ratio using panel ARCH techniques confirms the relevance of Sudden Stops and potential balance sheet effects as key determinants of relative price volatility, where balance sheet effects are captured by the interaction of a proxy for potential changes in the real exchange rate (linked to the degree of external leverage of the absorption of tradable goods) and a measure of domestic liability dollarization.