Durable goods and horizontal merger analysis

Merger analysis based on standard HHI calculations generally may not fully consider the impact of product durability and hence may significantly bias enforcement efforts. Using an inverse demand equation modified to include a shift parameter linked to the installed base, this paper develops a Durability Adjusted HHI (DAHHI) measure of concentration. DAHHI analysis exposes two potential biases in standard HHI analysis: excessive enforcement in durable goods industries is likely using standard HHI analysis, and Merger Guidelines' thresholds are set too high for non-durable goods industries and too low for durable goods industries. Using the DAHHI methodology, the paper proposes corrections to both biases.I wish to thank Miriam Culjak, John de Figueiredo, Greg Rosston, Brian Silverman, Pablo Spiller, David Teece, Oliver Williamson, and two anonymous referees for their helpful comments. Also, I wish to thank the Law and Economics Consulting Group for providing the opportunity to investigate this subject. All opinions and errors are the sole responsibility of the author.     

China's emerging market for property rights: Theoretical and empirical perspectives1

his paper contrasts state–directed and market–mediated reform of enterprise ownership rights in transition economies. We evaluate China's emerging market for enterprise ownership rights from the perspective of conditions underpinning the Coase Theorem: the assignment of property rights, the degree of competition, and the nature of transaction costs. China's recent experience suggests that policies designed to expand and support the scope of decentralized, market–based restructuring of ownership rights, even under conditions that deviate widely from the ideal assumptions underlying the Coase Theorem, may prove more beneficial than direct official intervention. JEL classification: G34, K11, L1 and P3.     

Industrial organization in a restructuring socialist economy: Evidence from Bulgaria

Using new data for all state and cooperatively-owned Bulgarian establishments and enterprises in 1988 and 1989 we portray key aspects of Bulgarian industrial organization. During 1988–89: state ownership became less dominant; there was an abrupt reversal in the twenty year trend towards bigger economic units; more than half of the largest firms were concentrated in certain sectors, notably engineering and construction; using official prices, only about 10% of enterprises made losses. These data and other new data for manufacturing products enable calculation of diverse measures of market structure as this may evolve under the policies introduced in 1991. Indices of market concentration typically show substantial concentration; usually about 50% of manufacturing output was produced in potentially competitive environments. While estimates of minimum efficient scale imply that MES does not constitute a significant barrier to entry for new competitors, the underdeveloped nature of the Bulgarian capital market probably greatly restricted entry.     

The Emerging Role of the European Commission in Merger and Acquisition Monitoring: The Boeing–McDonnell Douglas Case

The object of this study is to evaluate the consequences of the application of the EEC Regulation 4064/89 to non–European companies. We focus on the Boeing–McDonnell Douglas merger case, one of the first non–European mergers considered by the Commission. The analysis of abnormal returns on the two securities shows that the threat of a ban of the merger by the Commission were not perceived as credible at first. But when Boeing decided to ask the support of the American government, just after the decision of the European Commission to extend its investigations to the long term exclusivity contracts, the role of the Commission emerged.     

Predicting the cost of environmental management system adoption: the role of capabilities,resources and ownership structure

This research explores why some facilities accrue greater costs when adopting an environmental management system (EMS) and why costs vary among three different ownership structures. Using survey data of organizations that documented their EMS adoption costs over a 3‐year period, the results show that publicly traded facilities had stronger complementary capabilities prior to EMS adoption and therefore lower adoption costs. By contrast, government facilities and privately owned enterprises had fewer capabilities and accrued higher EMS adoption costs. The development of organizational capabilities and resources therefore appears to be a function of both organizational exploitation of imperfect or incomplete market factors, and the institutional context of these decisions. Copyright © 2006 John Wiley & Sons, Ltd.     

股权结构集中度与公司治理目标--公司治理理论研究的历史演进

广义的公司治理结构可以理解为股权结构的具体安排,由此可见股权结构对于公司治理的重要影响。在不同集中度的股权结构下会形成公司治理的不同模式,也会形成不同的公司治理理论。追索股权结构研究的历史脉络,以洞察公司治理研究的理论基石,既是理解和把握公司治理理论的关键,也是进一步创新公司治理理论的根本。     

The Status, Problems and Countermeasures of the Auto Industry on Utilizing FDI in China

The purpose of this paper is to analyze the status of the automobile industry on utilizing FDI in China. So firstly this paper has introduced the scale of auto industry absorbing FDI, and the stock ownership structure of the joint ventures. Then on this basis, the paper has analyzed the positive and negative influence that FDI brings to the auto industry. Finally some countermeasures have been put forward.     

Who Controls US?

Berle and Means asserted that US corporations typically have dispersed shareholders; their evidence did not support this conclusion. Today, 59.74% of US corporations have ‘controlling shareholders’ who hold at least 10% of the shares; 24.57% are controlled and managed by a family; 16.33% are controlled by a widely‐held financial institution; 13.55% are controlled through family trusts. In all size ranges, the USA has more corporations controlled by families than by financial institutions. In almost all size ranges, it has a higher percentage of family‐controlled corporations than any of next four largest economies.     

职工持股法律制度的若干问题研究

职工持股制度(简称ESOP或ESOPs)从20世纪50年代中期开始,在西方国家特别是美国和日本普遍推行,它已成为企业中一个重要的制度。文章针对职工持股法律制度的具体问题进行了分析。首先,对职工持股制在实践中的若干具体问题的探讨,集中于职工持股制度适用的企业和职工范围、职工股占总股本的份额、职工购股资金、预留股的设置、职工股的流转等问题的讨论。其次,对中国职工持股制度中问题提出了立法建议。     

Bank Relationship and Firm Performance: Evidence From Thailand Before the Asian Financial Crisis

Abstract:   This study examines the relation between bank relations and market performance in Thailand, an economy in which commercial banks play a crucial role through lending relationship and, for a number of companies, equity ownership. Overall, bank relationships, both equity‐based and debt‐based, positively affect capital investment. However, there is a negative relation between lending relationships, both short‐term and long‐term, and market performance indicating that bank lending may not always be consistent with value maximization. There is also evidence of a positive marginal effect of bank monitoring through equity ownership on market performance. Further, the relation between bank equity ownership and market performance appears to be non‐linear with a concave function. Ownership by corporate insiders is also negatively related to bank equity ownership. Overall, the findings highlight the detrimental effects of excessive short‐term debt usage, one of the factors believed to contribute to the financial crisis in Thailand, and the marginal benefit of the equity‐based relationship on firm value.