Changes in the EC licensing environment and their effect on licensing as a strategy for Europe 1992

The further integration of the European Community (EC) is intended to create one large, integrated market and a semistandardized business environment throughout the member countries. This study investigates the current status of the technology licensing environment in the EC and analyzes the returns that a licensor can achieve by locating a licensee in each of the EC countries. This analysis may be important to any firm which has chosen a licensing strategy as its approach to operating in the EC, because locational choice of licensee can affect a licensor's financial returns.     

Information Disclosure to Employees and Rational Expectations: a Game-Theoretical Perspective: a Comment

In this comment we identify the key features of the Frantz and Walker (1997) game theoretic model that drive the non-disclosure equilibrium result in their paper. We argue that, although technically correct, their model fails to capture certain aspects of real-world wage bargaining that will be important in determining optimal disclosure strategies in practice. However, Frantz and Walker's paper illustrates the potential of analytical techniques to contribute to the employee disclosure debate.     

Decentralization and Pay Reform in Central Government: a Study of Three Countries

Over the past decade central governments of the UK, Sweden and Australia have been engaged in significant reforms in the way they pay their employees. These reforms have generally taken the form of the decentralization of pay bargaining and the individualization of pay. This paper details the policies that have been implemented in central government in these countries and presents some preliminary results on the effects of these. While the actual implementation has varied quite substantially across the countries and the analysis of the outcomes must be regarded as preliminary, there is some evidence that the reforms have led to an increase in earnings dispersion.     

Are Securitizations in Substance Sales or Secured Borrowings? Capital‐Market Evidence*

Two standard‐setting approaches have emerged globally to guide the choice of accounting for securitizations: the control and components approach (SFAS No. 125 and SFAS No. 140) and the risks and rewards transfer approach (IAS No. 39). A lack of consensus about derecognition accounting is a major impediment to achieving convergence in global standards that must be resolved. Thus, both SFAS No. 140 and IAS No. 39 will be reexamined, and evidence pertinent to the debate is timely and important. In this study, we present evidence consistent with the view of credit‐rating analysts, who view many securitizations as, in substance, secured borrowings. Specifically, for a sample of originators applying sale accounting guidance in SFAS No. 125 / 140 during the period 1997‐2003, we show that off‐balance‐sheet debt related to securitizations has, on average, the same risk‐relevance for explaining market measures of risk (that is, CAPM beta) as on‐balance‐sheet debt. We also find that, in a returns and earnings association framework, the pricing multiple on securitization gains declines as the amount of off‐balance‐sheet debt increases, implying that investors take off‐balance‐sheet debt into account when assessing the valuation‐relevance of such gains. For those who advocate the control and components approach to securitization accounting, our results suggest that, at least for frequent securitizers, the put option arising from implicit recourse is a “missing piece” that is not currently accounted for when calculating securitization gains. Our results challenge the extant measurement standards in SFAS No. 140.     

The Contingent Value of Responsive and Proactive Market Orientations for New Product Program Performance*

While the benefits of being market oriented are largely accepted, a group of scholars and managers remain skeptical. Marketing scholars have sought to counter the criticisms leveled against market orientation (MO) by arguing that it has both responsive and proactive dimensions. However, few studies have empirically examined the complexity of the effects of these dimensions on firm performance. Drawing on theories of resource‐based advantage and organizational search behavior, this article advances understanding by arguing that responsive and proactive market orientations have curvilinear effects on product development performance, that their interaction may be positively related to product development performance, and that their effects on new product program performance are moderated differentially by the organizational implementation conditions and marketing function power. Survey results of 175 U.S. firms indicate support for most of the hypotheses. Specifically, whereas responsive MO has a U‐shaped relationship with new product program performance, proactive MO has an inverted U‐shaped relationship with new product program performance. Contrary to the arguments presented here, the interaction of both orientations is negatively related to new product program performance. This study finds that both orientations are needed; however, new product program performance is enhanced when one is at higher level and the other is at lower level. Finally, responsive MO is only positively related to new product program performance under specific conditions such as when strategic consensus among managers is high. On the other hand, the positive effect of proactive MO on new product program performance is further strengthened when learning orientation and marketing power are high. Overall, this study suggests that the effects of responsive and proactive MO on new product program performance are more complex than previously theoretically argued and empirically examined.     

Portfolio Choice in the Presence of Housing

I show that investment in housing plays a crucial role in explainingthe patterns of cross-sectional variation in the compositionof wealth and the level of stockholdings observed in portfoliocomposition data. Due to investment in housing, younger andpoorer investors have limited financial wealth to invest instocks, which reduces the benefits of equity market participation.House price risk crowds out stockholdings, and this crowdingout effect is larger for low financial net-worth. In the modelas in the data leverage is positively correlated with stockholdings.     

Biophysical Model of Larval Yellow Perch Advection and Settlement in Lake Michigan

Potential for large-scale physical transport processes to affect recruitment of Lake Michigan yellow perch (Perca flavescens) was studied by examining the variation in larval distribution, growth rate, and settlement during June–August 1998–2003 using a 3D particle transport model linked with an individual-based bioenergetics growth model. In all years, virtual larvae were released nearshore in southwestern Lake Michigan, a known and important spawning region for yellow perch. For any given year, the same circulation pattern and water temperature either promoted or reduced yellow perch settlement depending on the consumption rates and settlement size chosen in the growth model. Increased consumption increased the number of settled larvae and expanded the total area where larvae settled, whereas increased settlement size reduced the number of settled larvae and reduced the overall settlement area. Interannual variability in circulation patterns and water temperature also resulted in contrasting larval settlement rates, settlement locations, and size of settlement areas between years. Model predictions were most consistent with field observations of age-0 yellow perch from Illinois and Michigan waters when settlement was assumed to occur at 50 mm. Moreover, our model suggests that larvae originating from southwestern Lake Michigan can recruit anywhere within the southern basin and even in the northern basin. Future model improvement will require information on the relative contribution of various sectors to the larval pool, their distribution with reference to the hydrodynamic landscape, the feeding and growth of yellow perch during their pelagic phase, and the size at transition to demersal stage.     

Pilot-plant results of the electro-Fenton treatment of olive mill wastewaters followed by anaerobic digestion.

In this work, we investigated an integrated technology for the treatment of the recalcitrant contaminants of olive mill wastewaters (OMW), allowing water recovery and reuse for agricultural purposes. The method involves an electrochemical pre-treatment step of the wastewater using the electro-Fenton reaction followed by an anaerobic bio-treatment. The electro-Fenton pre-treatment process removed 66% of the total polyphenolic compounds and subsequently decreased the OMW toxicity from 100 to 66.9%, which resulted in improving the performance of the anaerobic digestion. A continuous laboratory-scale methanogenic reactor was operated at a loading rate of 10g COD/L per day without any apparent toxicity. Furthermore, in the combined process, a high overall reduction in COD, suspended solids, polyphenols and lipids content was achieved by the two successive stages. Moreover, this combined process which was experimented at a real scale (25 m3 digester) demonstrated its technical feasibility and opens promising perspectives for industrial application in the Mediterranean countries because of its easy conception and high energy (methane) production.