摘要:

AbstractThe objective of the study reported in this paper was to examine the role of deep cuts in capital expenditures as a firm's strategy for becoming more efficient and, in turn, more competitive. Based on an empirical study, support is provided for the argument that deep cuts in capital expenditures may be a viable strategy for realigning corporate priorities toward a more efficient operation. The measure of performance utilized in this paper is the stock market reaction to announced deep cuts.

ISSN:0143-6570    

DOI:10.1002/mde.4090140102

出版商:John Wiley&Sons, Ltd.    

年代:1993

数据来源: WILEY

摘要:

AbstractThis paper employs Canadian stock market and corporate financial data to test the hypothesis that the market places a positive value on reported research and development spending of firms as an indicator of expected profitability and growth. The empirical results show a positive, statistically significant relationship between R&D spending and market value. The magnitudes of estimated coefficients are consistent with those reported in several published US studies. These results suggest that investment in R&D is a rational allocation of resources, contrary to the undervaluation hypothesis.

ISSN:0143-6570    

DOI:10.1002/mde.4090140103

出版商:John Wiley&Sons, Ltd.    

年代:1993

数据来源: WILEY

摘要:

AbstractIn this paper we decompose a traditional measure for firm's performance, return on sales, into four components that capture the impact of productivity, price recovery, product mix and capacity utilization, respectively, on a firm's profitability. The new measures are used as an illustration to explain changes in the performance of firms in the US telecommunications industry following deregulation. Changes in the overall profitability margin of these firms are explained by substantial but offsetting changes in their productivity, price recovery ability, product‐mix maximization and capacity utilization, that have occurred as a consequence of deregulation. The new measures enable us not only to illustrate relative differences between firms in a given cross‐section but also to shed light on how changes take place over time in the different components that underlie firms' profitabil

ISSN:0143-6570    

DOI:10.1002/mde.4090140104

出版商:John Wiley&Sons, Ltd.    

年代:1993

数据来源: WILEY

摘要:

AbstractStarting from the traditional Lintner model, an asymmetric model of dividend behaviour is derived. It allows both the speed of adjustment and the desired pay‐out structural parameters to vary according to firm‐ and time‐specific economic conditions. The model is then tested on a sample of large Italian quoted and non‐quoted firms. The main result of the econometric testing is that managers adjust more quickly when they have to reduce dividends than when they have to increase them. This finding is not consistent with the traditional view that firms are more reluctant to reduce than to increase dividends because of signalling problems. It is, however, consistent with the existence of a financial hierarchy. If internal sources of funds are cheaper managers will rationally adjust relatively quickly when they have to reduce dividends in order not to cut investment and will adjust relatively slowly when they have to increase them in order to build financial slack. One further interesting result observed is that quoted firms are found to fix a higher pay‐out ratio than non‐q

ISSN:0143-6570    

DOI:10.1002/mde.4090140105

出版商:John Wiley&Sons, Ltd.    

年代:1993

数据来源: WILEY

摘要:

AbstractThis paper confirms the relative superiority of related‐diversification in terms of the financial performance of New Zealand companies, companies which are much smaller and less diverse than those which normally feature in this literature. To facilitate comparisons with other studies, financial performance is measured in three ways: return on equity; return on assets; and sales growth. Other independent variables controlled for are company size; risk; leverage; technological opportunity; and industry concentration. The effective rates of protection afforded manufacturing industries (export subsidies and import tariffs) are also confirmed as having had some positive bearing on company performanc

ISSN:0143-6570    

DOI:10.1002/mde.4090140106

出版商:John Wiley&Sons, Ltd.    

年代:1993

数据来源: WILEY

摘要:

AbstractThe effective patent life of all pharmaceutical New Chemical Entities registered in Sweden was investigated for the period 1965‐88. Three‐year moving average effective patent life was 12.3 years in the beginning of the period, while by the end of the period it had decreased to 8.3 years. If we exclude the increase in the nominal patent term which accompanied Sweden's entry into the European Patent Convention, the effective patent life decreases over the period by over 3 months per year. This coincides with the results of similar studies in other countries. If European research‐oriented Pharmaceuticals companies are to maintain their international long‐term competitiveness, patent term restoration measures appear to be urgently

ISSN:0143-6570    

DOI:10.1002/mde.4090140107

出版商:John Wiley&Sons, Ltd.    

年代:1993

数据来源: WILEY

摘要:

AbstractThis paper presents a new framework to augment standard methods in evaluating profitability of investments, especially those involved in dynamic technology. In this case there is a possibility that although a certain investment is profitable using standard methods, it should not be undertaken because it precludes a more profitable investment later on, when more advanced equipment will be available. The investment decision faced by a firm is presented here as an impulse‐control problem, where the process of technological progress is modelled explicitly. The outcome of the optimization yields, in addition to investment expenditures, the expected time period between consecutive investments. A simple example demonstrates the use of the technique in actual investment decision

ISSN:0143-6570    

DOI:10.1002/mde.4090140108

出版商:John Wiley&Sons, Ltd.    

年代:1993

数据来源: WILEY

摘要:

AbstractIn this article we consider the measure of hedging effectiveness proposed by Howard and D' Antonio (HD) when there are multiple cash and futures markets. It is found that the HD measure can be decomposed into two components: one solely determined by the futures market conditions, the other affected by both cash and futures markets as well as the hedger's cash portfolio. We then analyze the impacts of optimal cash portfolios on the HD measure. Although the Ederington hedging effectiveness is bounded over all cash portfolios, the conclusion does not apply to the HD measure.

ISSN:0143-6570    

DOI:10.1002/mde.4090140109

出版商:John Wiley&Sons, Ltd.    

年代:1993

数据来源: WILEY

摘要:

AbstractThis paper introduces multimarket selling options, capacity constraints and quasi‐Cournot conjectures into oligopolistic rivalry. It is shown that increased output responses between rivals that are producing below capacity will effect output reductions for all markets, but that increased output responses between rivals that are producing at capacity will effect an output increase in at least one market and might even result in a capacity extension and output increases in all market

ISSN:0143-6570    

DOI:10.1002/mde.4090140110

出版商:John Wiley&Sons, Ltd.    

年代:1993

数据来源: WILEY

摘要:

AbstractThis paper explores the relationship between market structure and the balance of trade in a dominant firm/competitive fringe model. It is shown that, absent efficiency effects, a horizontal merger between the dominant producer and a domestic fringe firm leads to a deterioration in the balance of trade, but, where efficiencies arise, this effect may be reversed. A sufficient condition for such reversal to occur is derived.

ISSN:0143-6570    

DOI:10.1002/mde.4090140111

出版商:John Wiley&Sons, Ltd.    

年代:1993

数据来源: WILEY