Stock Market Valuation of Deferred Tax Assets: Evidence from Internet Firms

Abstract:   We use the provisions of SFAS No. 109 , Accounting for Income Taxes , to examine the extent to which stock prices of Internet firms were associated with expectations of future profitability before versus after the 'market correction' in early 2000. We find that the valuation of deferred tax assets of firms with business models reliant on the level of web site traffic was significantly greater after the market correction. In our view, this evidence is consistent with pre‐correction mispricing.     

Debtor-in-possession financing

Several recent papers have documented the benefits of debtor-in-possession (DIP) financing in the restructuring of firms in Chapter 11. However, the view on benefits is not unanimous and some legal scholars have raised doubts about DIP financing's effects on debt-holders and the possibility of expropriative wealth transfers. In this paper we address this issue by analyzing both stock and bond price data for a comprehensive sample of DIP loans and find significant positive abnormal stock and bond returns at the announcement of DIP loans. Also, we do not find evidence of wealth transfers from junior to senior debt-holders. Further, we examine the DIP loan process in detail and we document important institutional features of DIP loans such as maturity, covenants, fees and interest charges. We find evidence of intense monitoring using covenants. We also find higher fees and charges associated with DIP loans. We argue that overall the results are consistent with the information processing role of financial intermediaries.     

Optimality results on orthogonal arrays plus <Emphasis Type="Italic">p</Emphasis> runs for <Emphasis Type="Italic">s</Emphasis><Superscript><Emphasis Type="Italic">m</Emphasis></Superscript> factorial experiments

The optimality of designs obtained by adding p runs to an orthogonal array is studied for experiments involving m factors each at s levels. The optimality criterion used here, is the Type 1 criterion due to Cheng (1978) which is an extension of Kiefer (1975) universal optimality criterion. Unlike what happens with orthogonal array plus one run designs, the behavior of designs obtained via augmentation of an orthogonal array by p runs depends on the particular runs added.     

两位诗人及死亡

<正>追悼会1894年4月8日,般吉姆·钱德拉·恰托帕德亚(Bankim Chandra Chattopadhyay),十九世纪孟加拉邦最著名的大文学家去世。他去世后三周,切塔尼亚图书馆和比顿广场图书馆俱乐部在繁星剧场(Star Theatre)组织了一场追悼会1     

Relationship Between Competitive Intensity,Internal Resources,and Firm Performance: Evidence from Indian ITES Industry

The purpose of this article is to investigate how competitive intensity impacts the relationship between crucial firm resources (human capital, organizational capital, management capability) and firm performance. Using a sample of 105 service providers from the Indian information technology–enabled services (ITES) industry, I find that competitive intensity positively moderates the relationship between firm resources and firm performance such that the relationships become stronger when competitive intensity is high than when it is low. Results imply that top managers' evaluation of the performance implications of internal firm resources are significantly shaped by the perceptions of intensity of competition encountered by their firms. © 2013 Wiley Periodicals, Inc.     

ESTIMATING SPATIAL CONSUMER PRICE INDICES THROUGH ENGEL CURVE ANALYSIS

In this paper we propose a method of estimating spatial multilateral price index numbers from cross‐section consumer expenditure data on different items using Engel curve analysis. The novelty of the procedure is that it overcomes the problem of data inadequacy, a problem that is shared by most of the developing countries. The procedure does not require item‐specific price/unit value data and price index numbers can be calculated from consumer expenditure data grouped by per capita income/total consumer expenditure class in a situation where unit level data are not available. To illustrate the method, we use published state‐specific data of the 50th round (1993–94) and 55th round (1999–2000) consumer expenditure surveys of India's National Sample Survey Organization (NSSO) and calculate the spatial consumer price index numbers for 15 major states of India, with All‐India taken as base, separately for the rural and the urban sector for each round.     

Multi-level and mixed-level <Emphasis Type="Italic">k</Emphasis>-circulant supersaturated designs

Supersaturated designs (SSDs) constitute an important class of fractional factorial designs that could be extremely useful in factor screening experiments. Most of the existing studies have focused on balanced designs. This paper provides a new lower bound for the \(E(f_{NOD})\)-optimality measure of SSDs with general run sizes. This bound is a generalization of existing bounds since it is applicable to both balanced and unbalanced designs. Optimal multi and mixed-level, balanced and nearly balanced SSDs are constructed by applying a k-circulant type methodology. Necessary and sufficient conditions are introduced for the generator vectors, in order to pre-ensure the optimality of the constructed k-circulant SSDs. The provided lower bounds were used to measure the efficiency of the generated designs. The presented methodology leads to a number of new families of improved SSDs, providing tools for directly constructing optimal or nearly-optimal k-circulant designs by just checking the corresponding generator vector.     

B2B relationship calculus: quantifying resource effects in service-dominant logic

Increasingly, knowledgeable business-to-business (B2B) customers and evolving customer needs are leading to seismic shifts in vendor–client interactions. Across industries, sellers are changing their business models from a simple goods orientation to a hybrid goods–services model, placing greater emphasis on delivering complete customer solutions. In such an environment, companies must find ways to prioritize investments in resource development. The service-dominant (S-D) logic framework offers significant insights into this challenge; however, these effects have not been tested quantitatively. This study addresses that gap, examining the influence of various seller resources on buyer satisfaction. An empirical analysis of buying organizations that purchased and implemented business intelligence systems finds that “augmented” operant resources that the buyers ascribe to the software’s sellers—resources that go above and beyond expectations—are the most significant predictors of both successful technology assimilation and overall customer relationship quality. In particular, an augmented operant resource reflecting a seller’s ability to see value creation opportunities from the buyer’s perspective (value mindset) has up to three times the effect on relationship satisfaction as “core” operant resources such as product-specific expertise or basic interpersonal service skills. These results can help sellers prioritize resource investments.     

Telematics: Decision Time for Detroit

With implications for navigation, safety, entertainment and vehicle maintenance as well as regulation and infrastructure investment in roads, telematics has the potential to transform driving more than any other innovation for decades. In the already well-established Asian telematics industry, revenue tends to come from extra charges at the time of vehicle-sale, with most subsequent services provided free. The US model has evolved differently, with much of the cost of telematics hardware and software subsidized in the initial vehicle sale price and revenue coming from services used. The decision to invest in telematics is therefore riskier in the US. This article first briefly summarizes the potential of telematics. It then analyzes the investment risks, particularly for automakers. It concludes with recommendations on how the US auto industry can minimize risk and make the most of the opportunities.