James Forjan and Bonnie Van Ness
Poison pill securities can be used to deter takeover activity by making the acquisition cost prohibitive or to increase bargaining power of target firms. Poison pills, which are…
Abstract
Poison pill securities can be used to deter takeover activity by making the acquisition cost prohibitive or to increase bargaining power of target firms. Poison pills, which are also known as shareholder rights plans, are typically used in conjunction with other takeover defense mechanisms, such as anti‐takeover charter amendments or dual classes of stock. This study examines the role that debt plays as an anti‐takeover strategy in the presence of poison pills. The results show that, on average, capital markets have little reaction to poison pill announcements. A regression equation, however, shows that announcement period abnormal returns are positively related to leverage ratios. This paper provides empirical evidence that the capital structure of firms plays an important role in the perceived strength of poison pills.
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Liuqing Mai, Robert van Ness and Bonnie van Ness
The purpose of this paper is to examine changes in short‐sale transactions of target firms and acquiring firms around merger and acquisition (M&A) announcements using daily…
Abstract
Purpose
The purpose of this paper is to examine changes in short‐sale transactions of target firms and acquiring firms around merger and acquisition (M&A) announcements using daily short‐sale transaction data from the New York stock exchange and NASDAQ. The paper further aims to investigate the link between short‐sale transactions and trading costs.
Design/methodology/approach
Two abnormal short‐sale measures are developed. Two regression models based on the two short‐sale measures are constructed and ordinary least squares is used to estimate the regressions. Two samples to test bid‐ask spreads (BAS) before and after M&A announcements t‐test are used.
Findings
The paper finds that target firms experience significant excess short sales (ES) from day−1 to day+7; while acquiring firms experience significant ES from day 0 to day+20. For acquiring firms, the five‐day pre‐announcement abnormal short sale is negatively related to the announcement day return and is positively related to post‐announcement return. Such a relationship for target firms is not observed. For target firms, it is found that changes in short activity are not significantly related to changes in trading cost. For acquiring firms, short activity changes are positively related to quoted spreads and percentage quoted spreads. The short‐sale activity changes are negatively related to effective spreads.
Research limitations/implications
The paper is a first step to understanding whether short sales affect market liquidity around M&A announcements; therefore restriction is necessary. Additional research can be done which should extend the current study to include the options market.
Practical implications
From the results, the paper cannot conclude that short sellers are informed traders around M&A announcements. Therefore restrictions on short sales around M&A announcements may not be warranted.
Originality/value
The paper fills an important blank in the existing literature by examining short‐sale transactions around M&A announcements. Such an investigation is of particular interest to market regulators as they try to update the short‐sale rules.
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W. Paul Spurlin, Bonnie F. Van Ness and Robert Van Ness
The purpose of this paper is to study short sales trading as part of the New York Stock Exchange (NYSE) batch open and National Association of Securities Dealers Automated…
Abstract
Purpose
The purpose of this paper is to study short sales trading as part of the New York Stock Exchange (NYSE) batch open and National Association of Securities Dealers Automated Quotations (NASDAQ) opening cross. The paper examines whether short transactions at the open can predict future returns.
Design/methodology/approach
The study tests to see if short transactions in the NYSE opening batch trade and NASDAQ opening cross are informative of future returns.
Findings
It is found that a stock's opening‐trade short volume is predictive of its short volume for the rest of trading day, positively related to its previous‐day price change, and positively related to its overnight price change at the opening trade on option‐expiration Fridays when the stock is part of the Standard and Poor (S and P) 500 index.
Originality/value
While previous research shows that intraday short sale trades are informative, this is the first paper to examine the opening trade of the day, and whether these short sales are informative.
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Tom Schultheiss, Lorraine Hartline, Jean Mandeberg, Pam Petrich and Sue Stern
The following classified, annotated list of titles is intended to provide reference librarians with a current checklist of new reference books, and is designed to supplement the…
Abstract
The following classified, annotated list of titles is intended to provide reference librarians with a current checklist of new reference books, and is designed to supplement the RSR review column, “Recent Reference Books,” by Frances Neel Cheney. “Reference Books in Print” includes all additional books received prior to the inclusion deadline established for this issue. Appearance in this column does not preclude a later review in RSR. Publishers are urged to send a copy of all new reference books directly to RSR as soon as published, for immediate listing in “Reference Books in Print.” Reference books with imprints older than two years will not be included (with the exception of current reprints or older books newly acquired for distribution by another publisher). The column shall also occasionally include library science or other library related publications of other than a reference character.
Investigates the differences in protocols between arbitral tribunals and courts, with particular emphasis on US, Greek and English law. Gives examples of each country and its way…
Abstract
Investigates the differences in protocols between arbitral tribunals and courts, with particular emphasis on US, Greek and English law. Gives examples of each country and its way of using the law in specific circumstances, and shows the variations therein. Sums up that arbitration is much the better way to gok as it avoids delays and expenses, plus the vexation/frustration of normal litigation. Concludes that the US and Greek constitutions and common law tradition in England appear to allow involved parties to choose their own judge, who can thus be an arbitrator. Discusses e‐commerce and speculates on this for the future.
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Over 100 years ago, the bureaucratic compact and five professions were established: city/county management, city planning, civil engineering, landscape architecture, and…
Abstract
Over 100 years ago, the bureaucratic compact and five professions were established: city/county management, city planning, civil engineering, landscape architecture, and architecture. In exchange for merit employment and independence from politics, these professions offered expertise and related values. To understand those values and changes in the compact from the 1900s to today, codes of ethics from the five professions were examined. Anticipated changes were a movement from traditional public values to business values including New Public Management. However, findings show traditional values persisting over time (e.g. public interest), but not many New Public Management values (e.g. innovation). Modern values do appear and expand professionalsʼ responsibilities into environmental protection, sustainability, and human rights, which influence what these professions offer as they seek to uphold their end of the bureaucratic compact.
Salim Khalid, Claire Beattie, John Sands and Veronica Hampson
This study aims to explore the ways that the balanced scorecard (BSC) can be adapted to incorporate environmental performance in a health care context.
Abstract
Purpose
This study aims to explore the ways that the balanced scorecard (BSC) can be adapted to incorporate environmental performance in a health care context.
Design/methodology/approach
This research adopts a qualitative approach that uses an in-depth case study including semi-structured interviews and document review. Interviews are conducted with individuals working within a regional public hospital and health service organisation in Australia. The research is informed by stakeholder theory.
Findings
The participants identified a number of approaches to incorporating environmental dimensions within the BSC: fully integrated, partially integrated, a separate additional perspective and differentiation based on the origin of the environmental activities and events. These findings confirm the contingent nature of the selected model and reinforce the importance of organisational vision and environmental strategy as formative factors.
Research limitations/implications
This research provides a starting point for future research to refine the proposed models and evaluate their viability and relevance in other contexts.
Practical implications
This study provides motivations for managers to engage with the BSC as an effective performance measurement system, which can be developed and adapted to incorporate important environmental elements of organisational performance.
Social implications
This study reveals the importance of difference between endogenous and exogenous environmental activities. As concerns around the environmental consequences of organisational activities continue to grow, opportunities for institutions to reassure stakeholders of their sustainable practices are increasingly critical.
Originality/value
This study presents preliminary evidence on the suitability of various models for integrating environmental dimensions within the BSC. The findings provide a valuable contribution to literature on performance measurement systems in the healthcare sector.
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Melody L. Wollan, Mary F. Sully de Luque and Marko Grunhagen
This paper suggests that motives for engaging in affiliative‐promotive “helping” extra‐role behavior is related to cross‐cultural differences. The cultural dimensions of in‐group…
Abstract
This paper suggests that motives for engaging in affiliative‐promotive “helping” extra‐role behavior is related to cross‐cultural differences. The cultural dimensions of in‐group collectivism, uncertainty avoidance, performance orientation, and humane orientation, and their differential effect on helping extra‐role behavior in a diverse workforce are examined. Theoretical implications provide guidance for future empirical research in this area, and provide managers with more realistic expectations of employee performance in the workplace.