摘要:

AbstractIt is often argued that firms' foreign expansion is motivated by economies of scale in information‐based intangible assets. Since these assets are combined with local factors in real production, their owner often has to deal with local factor owners' opportunistic behavior such as siphoning of skills which reduces the return on intangibles to the original owner. Local factor owners' agency behavior can also reduce a subsidiary's profit. Maintaining ownership mitigates the former type of opportunistic behavior, while ceding ownership reduces the latter type. Hence there is a non‐linear relationship between ownership and the cost of control. In this paper we present a model that incorporates these aspects of a joint venture ownership. In our model the share in a joint venture of a foreign parent firm with a superior technology is determined such that its marginal cost of control is set equal to the marginal benefit it derives from a joint venture. We assume that, because of the uniqueness and mobility of its intangible factor, the foreign partner has more bargaining power than its local counterpart regarding the ownership of their joint venture and that the local partner is less concerned than its foreign counterpart about the problems of agency and property rights protection because of its geographic and cultural proximity to the joint venture. As a consequence, the foreign partner is able to exert its preference for its ownership share in the joint venture. Our theoretical results allow a decomposition of ownership share into components explained by the cost of control and by the profitability of a joint venture. Our empirical results using data on technology‐based US firms' subsidiaries in Japan are consistent with our model predictions. In particular, the fraction of ownership share explained by the cost of control relative to the fraction explained by intrinsic profitability is higher for industries that rely more heavily on intangible assets, as expected from the

ISSN:0143-6570    

DOI:10.1002/mde.4090150202

出版商:John Wiley&Sons, Ltd.    

年代:1994

数据来源: WILEY

摘要:

AbstractThis paper provides evidence on the minimally explored topic of abnormal returns earned by stockholders of foreign bidders seeking to acquire a target firm in the USA. Four sources of influence on abnormal returns are identified: changes in net wealth of the bidder associated with changes in exchange rates; possible value‐destroying managerial discretionary behavior by bidders with excess cash flows, as suggested by Jensen; comparative advantages for foreign bidders domiciled in relatively favorable tax jurisdictions; ownership status of the target, i.e. whether the target is an entire firm and whether it involves divested assets. The study includes 77 firms from 10 countries. The results show that stockholders of foreign bidders earn significant, negative abnormal returns surrounding the announcement of an acquisition in the USA. These abnormal returns become increasingly negative over the 15 days after the announcement of the acquisition, indicating that more information about the acquisition is revealed to investors subsequent to the initial announcement. Cross‐sectional regressions indicate that relative exchange rates and cash positions explain variation in abnormal returns. A decline in the value of the dollar increases abnormal returns for the foreign bidder, thus supporting the net wealth hypothesis. The results also show that cash‐rich foreign firms tend to enjoy higher abnormal returns when making acquisitions in the USA. The result provides support for the Froot and Stein cash‐constrained hypothesis rather than for Jensen's free‐cash‐

ISSN:0143-6570    

DOI:10.1002/mde.4090150203

出版商:John Wiley&Sons, Ltd.    

年代:1994

数据来源: WILEY

摘要:

AbstractWe examine the downstream integration decision by businesses, deriving hypotheses from the transaction cost literature which are empirically tested for a sample of 1392 businesses operating in a wide spectrum of industries. Our results provide corroboration for each dimension of the transaction cost framework in explaining why firms might integrate their downstream business activities. Given the large cross‐sectional sample, our results provide some evidence of the general validity of the transaction cost framework within the context of downstream integratio

ISSN:0143-6570    

DOI:10.1002/mde.4090150204

出版商:John Wiley&Sons, Ltd.    

年代:1994

数据来源: WILEY

摘要:

AbstractThe new learning has raised a number of explanations why smaller enterprises may, in fact, tend to have an innovative advantage, at least in certain industries. The purpose of this paper is to identify the degree to which university and corporate R&D spills over to innovative activity at the state level. We find substantial evidence that spillovers are facilitated by the geographic coincidence of universities and research laboratories within the state.

ISSN:0143-6570    

DOI:10.1002/mde.4090150205

出版商:John Wiley&Sons, Ltd.    

年代:1994

数据来源: WILEY

摘要:

AbstractThis paper finds support for Jensen's (1986) hypothesis that dividends and debt are substitute mechanisms for controlling the agency costs of free cash flow. We find that dividend payout ratios of a sample of all‐equity firms are significantly higher than those of a control group of levered firms. Further, within the group of all‐equity firms, firms with lower managerial holdings have higher payout ratios. These results hold after controlling for free cash flow and growth rates. Overall, our evidence suggests that dividends and managerial ownership are substitute mechanisms for reducing agency costs in all‐equity

ISSN:0143-6570    

DOI:10.1002/mde.4090150206

出版商:John Wiley&Sons, Ltd.    

年代:1994

数据来源: WILEY

摘要:

AbstractThis paper expands the two‐parameter (that is, mean‐variance) linear model for the behaviour of returns on securities or portfolios into a model that takes into consideration the skewness of return distributions. As in the case of previous two‐parameter relationships, the three‐parameter risk‐return relationship is valid if and only if the reference portfolio is a three‐parameter boundar

ISSN:0143-6570    

DOI:10.1002/mde.4090150207

出版商:John Wiley&Sons, Ltd.    

年代:1994

数据来源: WILEY

摘要:

AbstractThis paper explores the time‐series properties and predictability of weekly percentage changes in the Greek drachma exchange rates with respect to the currencies of major trading‐partner countries, such as the USA, Germany, the UK, France, Italy and Japan. The analysis is carried out using the EGARCH‐M model along with the power exponential distribution. Percentage changes in the Greek drachma with respect to the German mark, the French franc, the Italian lira and Japanese yen are predictable using past information. The volatility of Greek exchange rates is best represented by an EGARCH process and as such is predictable using past volatility measures. Moreover, volatility of the Greek drachma with respect to the German mark and Italian lira positively influences future movements in these exchange rates. The hypothesis that volatility is an asymmetric function of past innovations is rejected in all cases. Following the inclusion of the Greek drachma in the ECU currency basket, its value has been depreciating at a higher rate with respect to the German mark and Italian lira and at a lower rate with respect to the US dollar. Also, its volatility with respect to the German mark, the French franc, and the Italian lira has decreased, whereas its volatility with respect to the US dollar has incr

ISSN:0143-6570    

DOI:10.1002/mde.4090150208

出版商:John Wiley&Sons, Ltd.    

年代:1994

数据来源: WILEY

摘要:

AbstractThis paper shows how a vertically integrated utility develops a least‐cost transmission and distribution (T&D) plan that considers demand‐side management (DSM) to defer capacity expansion necessary for serving growing demand. The plan is the result of applying dynamic optimization techniques to a T&D planning area in the service territory of Pacific Gas and Electric Company (PG&E), the largest privately owned utility in the USA. In the case study area alone, DSM enables PG&E to reduce the present value of its planned investment in local T&D from $112.3 million to $77.3 million over a 20‐year p

ISSN:0143-6570    

DOI:10.1002/mde.4090150209

出版商:John Wiley&Sons, Ltd.    

年代:1994

数据来源: WILEY

ISSN:0143-6570    

DOI:10.1002/mde.4090150210

出版商:John Wiley&Sons, Ltd.    

年代:1994

数据来源: WILEY

ISSN:0143-6570    

DOI:10.1002/mde.4090150211

出版商:John Wiley&Sons, Ltd.    

年代:1994

数据来源: WILEY