Jeff Madura, Alan L. Tucker and Emilio Zarruk
Since the early 1980s, currency options have become a popular means for hedging foreign currency positions or speculating on anticipated movements in exchange rates. Yet, they can…
Abstract
Since the early 1980s, currency options have become a popular means for hedging foreign currency positions or speculating on anticipated movements in exchange rates. Yet, they can also be used to enhance the forecasting of exchange rates. Corporate forecasts of exchange rates involve two tasks: (1) a point estimate of a currency's exchange rate, and (2) a confidence interval that suggests the degree of uncertainty associated with the point estimate forecast. A currency forward or futures price is often used as the point estimate required. The confidence interval is commonly developed by using the historical volatility of exchange rate movements. However, an alternative method is to use the market's anticipated volatility in developing the confidence interval. Scott and Tucker (1990) have shown that the volatility implied from contemporaneous currency option prices is a better forecast of future volatility than historical measures. Therefore, a confidence interval implied by currency options should also be more reliable. Our objective is to illustrate how confidence intervals can be developed from currency option information. Given the degree of difficulty in forecasting exchange rates, more reliable confidence intervals could greatly improve managerial decisions.
Kenneth Bartunek, Jeff Madura and Alan L. Tucker
Acquisitions of bankrupt firms can be beneficial because the bankrupt targets may be more receptive to acquisition offers for the purpose of survival, courts can override any…
Abstract
Acquisitions of bankrupt firms can be beneficial because the bankrupt targets may be more receptive to acquisition offers for the purpose of survival, courts can override any resistance that may occur, information on the target is disclosed within the formal reorganization plan, acquirers can accrue tax benefits, and acquirers may assume favorable debt contracts. However, two disadvantages of acquiring a bankrupt firm are higher costs of completing the conversion and the high degree of uncertainty about the target's future cash flows. Results of our analysis suggest that firms announcing acquisitions of bankrupt targets experience favorable wealth effects. Thus, the market appears to anticipate that the present value of future cash flows derived from the target will exceed the cost of the acquisition. Our analysis also found that acquisitions of bankrupt firms yield more favorable wealth effects than acquisitions of healthy firms. The acquisitions of bankrupt firms were especially well received by the market when the acquirer was the sole bidder and when the target's business was closely related to that of the acquirer.
David Manry and David Stangeland
This research uses accounting information to supplement abnormal returns evidence in order to gauge the performance of greenmailed firms. Our results support the management…
Abstract
This research uses accounting information to supplement abnormal returns evidence in order to gauge the performance of greenmailed firms. Our results support the management entrenchment hypothesis; target firm earnings are poor relative to industry in the years surrounding the greenmail event, and earnings do not significantly improve as would be expected under the shareholders' interest hypothesis. This result holds after adjusting for greenmail premia net of tax effects. Evidence on investment spending suggests firms that pay greenmail differ substantially from their industries, but in a negative direction. In contrast, the industry‐adjusted earnings of non‐greenmail repurchasing firms are significantly greater than the earnings of greenmailed firms. Together, these results are consistent with the contention that greenmailed firms are not managed in shareholders' interests; they underperform their industry, the poor operating results are not attributable to higher investment outlays associated with a long‐term strategic focus, and performance does not improve. This is consistent with observed negative abnormal returns being attributable to both a lost takeover premium and a lost opportunity for improved corporate performance.
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To enhance the understanding of entrepreneurial communication strategies in the start-up phase of the business, a resource dependence perspective is presented. Resources can be…
Abstract
To enhance the understanding of entrepreneurial communication strategies in the start-up phase of the business, a resource dependence perspective is presented. Resources can be categorized in several ways. Penrose (1959), one of the pioneers in the resource-based view, and the subsequent work of, for example, Wernerfelt (1984) and Barney (1991), have brought the individual, the entrepreneur and especially resources within the business into focus. The process school of the resource-based view focuses on processes and activities and internal strategic capabilities (Tucker, Meyer, & Westerman, 1996). Furthermore, capabilities are based on developing, carrying and exchanging information through the business's human capital (Tucker et al., 1996). Grant (1991, p. 122) defined such capabilities as ‘complex patterns of coordination and cooperation between people, and between people and (tangible) resources’. Baum, Locke, and Smith (2001) and Lee, Lee, and Pennings (2001) found that new businesses’ internal capabilities are the primary determinants of the businesses’ performance. One of the intangible resources could be a business reputation (Deephouse, 2000). A positive reputation creates advantages in order to obtain, for example, financial capital.
Basil P. Tucker and Raef Lawson
This paper compares and contrasts practice-based perceptions of the research–practice gap in the United States (US) with those in Australia.
Abstract
Purpose
This paper compares and contrasts practice-based perceptions of the research–practice gap in the United States (US) with those in Australia.
Methodology/approach
The current study extends the work of Tucker and Lowe (2014) by comparing and contrasting their Australian-based findings with evidence from a questionnaire survey and follow-up interviews with senior representatives of 18 US state and national professional accounting associations.
Findings
The extent to which academic research informs practice is perceived to be limited, despite the potential for academic research findings to make a significant contribution to management accounting practice. We find similarities as well as differences in the major obstacles to closer engagement in the US and Australia. This comparison, however, leads us to offer a more fundamental explanation of the divide between academic research and practice framed in terms of the relative benefits and costs of academics engaging with practice.
Research implications
Rather than following conventional approaches to ‘bridging the gap’ by identifying barriers to the adoption of research, we suggest that only after academics have adequate incentives to speak to practice can barriers to a more effective diffusion of their research findings be surmounted.
Originality/value
This study makes three novel contributions to the “relevance literature” in management accounting. First, it adopts a distinct theoretical vantage point to organize, analyze, and interpret empirical evidence. Second, it captures practice-based views about the nature and extent of the divide between research and practice. Third, it provides a foundational assessment of the generalizability of the gap by examining perceptions of it across two different geographic contexts.
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The following bibliography focuses mainly on programs which can run on IBM microcomputers and compatibles under the operating system PC DOS/MS DOS, and which can be used in online…
Abstract
The following bibliography focuses mainly on programs which can run on IBM microcomputers and compatibles under the operating system PC DOS/MS DOS, and which can be used in online information and documentation work. They fall into the following categories:
Since the first Volume of this Bibliography there has been an explosion of literature in all the main areas of business. The researcher and librarian have to be able to uncover…
Abstract
Since the first Volume of this Bibliography there has been an explosion of literature in all the main areas of business. The researcher and librarian have to be able to uncover specific articles devoted to certain topics. This Bibliography is designed to help. Volume III, in addition to the annotated list of articles as the two previous volumes, contains further features to help the reader. Each entry within has been indexed according to the Fifth Edition of the SCIMP/SCAMP Thesaurus and thus provides a full subject index to facilitate rapid information retrieval. Each article has its own unique number and this is used in both the subject and author index. The first Volume of the Bibliography covered seven journals published by MCB University Press. This Volume now indexes 25 journals, indicating the greater depth, coverage and expansion of the subject areas concerned.
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Ali B. Mondt, Yohan Lee, Stephen L. Shapiro and Alan Morse
This study aims to examine how the partnership between StubHub and MLB affected consumers' perceptions of StubHub. The case of StubHub and MLB was selected based on their…
Abstract
Purpose
This study aims to examine how the partnership between StubHub and MLB affected consumers' perceptions of StubHub. The case of StubHub and MLB was selected based on their partnership history and the reputation of StubHub.
Design/methodology/approach
A Qualtrics survey panel was used to collect the survey data. Structural equation modeling was used to analyze the relationships between sponsor congruence, brand equity and purchase intention.
Findings
Sponsor congruence plays a significant role in consumers' perceived quality of StubHub. Additionally, brand equity significantly influenced purchase intention. More specifically, brand loyalty was the strongest indicator of intent to purchase tickets from StubHub. Brand loyalty and perceived quality indirectly affected the relationship between sponsor congruence and consumers' purchase intentions of StubHub.
Originality/value
Sponsor congruence between secondary ticket markets and sport leagues can provide a competitive advantage, helping create revenue generation and leverage for partnerships. Perceived quality can help facilitate this relationship and increase revenue generation.
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I. Hoffman and J.S. Koga
Provides a bibliography of CD‐ROM for librarians, covering casestudies, costs, product evaluation guidelines, databases, CDI,downloading/copyright and CD vs. online, for use when…
Abstract
Provides a bibliography of CD‐ROM for librarians, covering case studies, costs, product evaluation guidelines, databases, CDI, downloading/copyright and CD vs. online, for use when making decisions about the adoption of CD‐ROM.