Independent Expert Valuations in Takeovers: Are They Biased?

The predictability of the opinions provided in expert reports produced in Australian takeovers has led repeatedly to public criticism. This study assesses the validity of this criticism by comparing expert valuations with the recommendations of target firm directors. The results indicate that expert valuations typically agree with directors' recommendations, with the rate of agreement being 95% for reject recommendations. Consistent with expert valuations provided in rejected takeovers being inflated, these bids are associated with similar premiums to accepted bids. Additionally, rejected offers that succeed do so at well below the expers valuation, and prices in unsuccessful rejected offers do not increase towards the expers valuation.     

The marginalist approach and the making of fuel policy in France and Britain, 1945–721

Focusing on the shift from coal to oil in the French and British economies between 1945 and 1972, this article analyses the influence of economists and economic concepts on fuel‐policy making in each economy. The framing of French fuel policy around marginalist principles from 1958 is examined, and the unusually direct influence of economists on policy making is ascribed to a mix of national security, industrial modernization, and political considerations.     

Tenancy Databases,Professional Practices and Housing Access among Low‐Income Tenants in the Private Rental Sector in Australia

This essay addresses the impacts of electronic tenancy databases upon social relations in the field of private rental tenancy in Australia. Insights arise from research carried out, in 2002–3, in the eastern, mainland states of Australia that included interviews with tenants and property managers in the private rental sector. Property managers viewed tenancy databases as a tool for efficient, effective and professional risk management, and ‘professional’ practice was held to render misconduct or improper listings extremely unlikely. In this context, tenants were individualized and expected to actively work to construct, maintain and document their reputation as a ‘good tenant’. For tenants, tenancy databases could have a particular, definitive effect. ‘Not being listed’ (along with getting a full rental bond refund, references from previous landlords, and so on) is an indicator that helps build a satisfactory, personal rental history. On the other hand, being ‘listed’ is read as a prime indicator of risk and effectively overriding other aspects of a tenant’s application for tenancy. ‘Listed’ tenants find themselves being forced to shift further and further away from the formal rental market and ultimately into insecure and inappropriate housing arrangements at the periphery.     

English and Scottish overseas trade, 1300–16001

This article compares English and Scottish exports, from 1300–1600, using existing statistical data from England and a new data set of Scottish exports. It shows that the significant English and Scottish wool trades collapsed at almost identical rates. However, while England shifted towards exporting woollen cloth, a similar move in Scotland was weak—because of the poor quality of cloth and the urban form of the industry. In the second half of the sixteenth century, as English exports stagnated, Scottish trade began to grow, especially new and less‐established commodities. This ‘recovery’ was based on the heavy depreciation of the Scottish currency.     

Another Puzzle: The Growth in Actively Managed Mutual Funds

Mutual funds represent one of the fastest growing type of financial intermediary in the American economy. The question remains as to why mutual funds and in particular actively managed mutual funds have grown so fast, when their performance on average has been inferior to that of index funds. One possible explanation of why investors buy actively managed open end funds lies in the fact that they are bought and sold at net asset value, and thus management ability may not be priced. If management ability exists and it is not included in the price of open end funds, then performance should be predictable. If performance is predictable and at least some investors are aware of this, then cash flows into and out of funds should be predictable by the very same metrics that predict performance. Finally, if predictors exist and at least some investors act on these predictors in investing in mutual funds, the return on new cash flows should be better than the average return for all investors in these funds. This article presents empirical evidence on all of these issues and shows that investors in actively managed mutual funds may have been more rational than we have assumed.     

Perspectives of service consumers: their multiple roles and challenges

The unique characteristics of services — i.e. intangibility, perishability, inseparability and heterogeneity — add risk, challenge and complexity to the tasks involved in being a service consumer. In response, service consumers assume six important roles, labelled: Targets, Partners, Quasi-Employees, Service Itself, Reporters and Quality Inspectors. The successful implementation of these roles relies heavily upon consumer skills that vary from consumer to consumer. Implications of being a service consumer are discussed and specific recommendations are offered to service consumers.