A Bargaining Model of Friendly and Hostile Takeovers

A bargaining model is developed that characterizes the conditions under which a takeover will either be friendly, hostile, or unsuccessful when the target management can tilt the selling procedure toward a white knight. The conditions considered mainly involve private control benefits, toehold size, and breakup fees. Also established by the model are the conditions for an efficient takeover. The proposed framework of strong management influence on takeover outcome, an alternative modeling of hostility and the adoption of a negotiation procedure, rather than an auction setup with strong shareholder influence as in most of the existing literature, delivers new insights into the US market of corporate control, which are consistent with the available evidence.     

Has the crisis affected Spanish investment strategy abroad? A spatial panel data approach

This paper investigates whether the Spanish investment strategy abroad has been affected by the Great Recession. Applying a panel spatial Durbin model for two sample periods, pre‐crisis (1996–2007) and crisis (2008–14), our findings indicate that Spanish foreign direct investment (FDI) strategy has been indeed markedly altered by the global economic crisis. Complex‐vertical FDI motives prevailed over the pre‐crisis period, whereas horizontal FDI did so over the crisis. These results are robust to the use of sectoral FDI data and alternative specifications of the spatial weight matrix.     

Inflation and income distribution in Central America,Mexico, Panama,and the Dominican Republic

Analyses of the impact of inflation on income distribution typically only consider the general inflation rate. However, when the consumption structure of households is shaped by its income level and inflation varies across goods and services, they are affected differently by inflation. The aim of this study is to contribute to the analysis of this effect in Central American countries (Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica), Panama, Mexico, and the Dominican Republic (CAPMDR) for the period 2007–2018. According to our findings, there have been significant differences in the inflation rates faced by different income groups. By employing these percentile‐specific inflation rates, we have computed an “inflation‐corrected Gini index.” This adjustment is important because although inequality has been decreasing during past years in the countries in our sample, on average, about half of the gains observed using the standard Gini index are lost once the Gini indices are corrected for inflation, a clearly nonnegligible magnitude.     

Technical Change in the Peruvian Regulated Microfinance Sector

This study evaluates and quantifies the technical change in the Peruvian regulated microfinance sector during the period 2003–2015 estimating a translog cost function. We found technical deterioration between 2005 and 2015 due to the differentiated effects that the technical innovations, implemented by the MFIs, had on their production costs. In the analysis by groups of MFIs, all groups converged at a technical deterioration rate between 8.6 and 9.13% in the last year. Problems in the implementation, execution, and/or management of the new technologies as well as the difficulty in achieving reductions in the variable costs may explain these results.