David L. Lemmon and Stewart Early
Declining U.S. production volumes, increasing competition on many corridors, and refinery rationalization in the 1980s combined to put profit pressure on nearly all interior…
Abstract
Declining U.S. production volumes, increasing competition on many corridors, and refinery rationalization in the 1980s combined to put profit pressure on nearly all interior liquid pipeline companies. Amoco Pipeline Company (APL), a regulated common carrier transporting crude oil and petroleum products for both Amoco and non‐affiliate customers, responded with a series of programs that included the development of mission, vision, and values statements; organization redesign; investment in team skills and empowerment; the use of gainsharing; and periodic strategic planning studies that focused on capital projects, generic strategies, and projected financial performance.
Syou-Ching Lai, Hung-Chih Li, James A. Conover and Frederick Wu
We examine explicitly priced financial distress risk in post-1990 equity markets. We add a financial distress risk factor to Fama and French's (1993) three-factor model, based on…
Abstract
We examine explicitly priced financial distress risk in post-1990 equity markets. We add a financial distress risk factor to Fama and French's (1993) three-factor model, based on Griffin and Lemmon's (2002) findings that financial distress is not fully captured by the book-to-market factor. We test three-factor and four-factor capital asset pricing models using both annual buy-and-hold analysis and monthly time series analysis across portfolios adjusted for common book-to-market, size, and financial distress factors. We find empirical support for an Ohlson (1980) O-score-based financial distress risk four-factor asset pricing model in the U.S. and Japanese markets.
Hung-Chi Li, Syouching Lai, James A. Conover, Frederick Wu and Bin Li
Lai, Li, Conover, and Wu (2010) propose a four-factor financial distress model to explain stock returns in the U.S. and Japanese markets. We examine this model in the stock…
Abstract
Lai, Li, Conover, and Wu (2010) propose a four-factor financial distress model to explain stock returns in the U.S. and Japanese markets. We examine this model in the stock markets of Australia, and six Asian markets (Hong Kong, Indonesia, Korea, Malaysia, Singapore, and Thailand). We find broad empirical support for the four-factor financial distress risk asset-pricing model in those markets. The four-factor financial distress asset pricing model improves explanatory power beyond the Fama–French (1993) three-factor asset pricing model in six of the seven Asian-Pacific markets (12 of 14 portfolio groupings), while the Carhart (1997) momentum-based asset pricing model only improves explanatory power beyond the Fama–French model in three of the seven markets (4 of 14 portfolio groupings).
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Although there are theoretical costs and benefits to corporate diversification, there is ample empirical evidence that the stock market views the costs to outweigh the benefits…
Abstract
Although there are theoretical costs and benefits to corporate diversification, there is ample empirical evidence that the stock market views the costs to outweigh the benefits (Lang and Stulz (1994), Berger and Ofek (1995), Servaes (1996), etc.) These studies are cross‐sectional studies which compare diversified firms to specialized firms and examine valuation multiples. The studies find that diversified firms have lower valuation multiples than specialized firms. This is called the diversification discount. In this paper, a sample of U.S. firms which are specialized and then become diversified are examined. We do not find evidence of a long‐term reduction in firm value associated with diversification.
Circular 827. Ministry of Health, Whitehall, S.W.1. 19th November, 1927. SIR, 1. I am directed by the Minister of Health to forward, for the information of the Local Authority…
Abstract
Circular 827. Ministry of Health, Whitehall, S.W.1. 19th November, 1927. SIR, 1. I am directed by the Minister of Health to forward, for the information of the Local Authority, the accompanying copies of the Public Health (Condensed Milk) Amendment Regulations, 1927, and the Public Health (Dried Milk) Amendment Regulations, 1927, which amend the Public Health (Condensed Milk) Regulations, 1923, and the Public Health (Dried Milk) Regulations, 1923, respectively. The Amendment Regulations are primarily designed to secure that in the labelling of condensed and dried skimmed milks greater prominence shall be given to the words “Unfit for Babies,” and that those words shall also be printed on the outside of any paper or other wrapper in which tins of such milks may be enclosed.
Mengqi Yuan, Timothy T Diller, David Bourell and Joseph Beaman
The purpose of this paper is to acquire thermal conductivities of both fresh and preheated polyamide 12 powder under various conditions to provide a basis for effective and…
Abstract
Purpose
The purpose of this paper is to acquire thermal conductivities of both fresh and preheated polyamide 12 powder under various conditions to provide a basis for effective and accurate control during the laser sintering (LS) process.
Design/methodology/approach
A Hot Disk® TPS 500 thermal measurement system using a transient plane source (TPS) technology was employed for thermal conductivity measurements. Polyamide 12 powder was packed at different densities, and different carrier gases were used. Tests were also performed on fully dense laser sintered polyamide 12 to establish a baseline.
Findings
Polyamide 12 powder thermal conductivity varies with packing density and temperature, which is approximately one-third bulk form thermal conductivity. Inter-particle bonding is the primary factor influencing polyamide 12 thermal conductivity.
Research limitations/implications
Limited ranges of density were tested, and the carrier gas needed carefully control to prevent powder oxidation. Thermal properties obtained were not tested in the LS process.
Originality/value
This experimental result could be used to enhance thermal control during the LS process.
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Nicholas P. Salter, Jenna-Lyn R. Roman and Ngoc S. Duong
Organizational research on diversity, equity, and inclusion (DEI) is at times siloed; the experience of one minoritized or underrepresented group is treated as completely separate…
Abstract
Organizational research on diversity, equity, and inclusion (DEI) is at times siloed; the experience of one minoritized or underrepresented group is treated as completely separate and different from the experience of another group and thus research separately. For example, there are terms that are studied only in the context of one group, and a different term is used to study a very similar (or identical) concept among a different group. Indeed, there are many unique experiences that specific minority groups encounter at work. Because of this end, minority groups should not be fully categorized together, and their individual should not be erased. However, there are shared experiences that many or all minorities experience at work, whether they are a gender minority, racial minority, or a member of any other minoritized group. Recognizing these shared experiences can help scholars develop a deeper understanding of what it's like to be minoritized or underrepresented at work, and therefore help to better serve these communities. To this end, our chapter highlights three such shared but unique minority experiences: three experiences that are common across all minority groups but operationalize slightly differently in different populations. The first experience we discuss is discrimination, as all minorities typically experience some form of negative differential treatment at work. The second experience we discuss is identity management, as many minorities need to actively think about how they present their minority identity to others (regardless of if their identity is “concealable” or not). Finally, we discuss strength through adversity, as many minorities argue that their minority identity is a source of strength and an area that benefits them at work. We conclude the chapter with a call toward intraminority solidarity, suggesting that recognizing shared experiences and working together can help build better workplaces for all minority employees.
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Stewart Early and Bruce McBratney
Too often leaders of multi‐business groups struggle with how to best add value at this level of management. CEOs and business group leaders can improve the odds of success in…
Abstract
Too often leaders of multi‐business groups struggle with how to best add value at this level of management. CEOs and business group leaders can improve the odds of success in these roles, and better retain potential successors, by answering three questions: Is there a clear business case for grouping these businesses? Given a clear business case, what are the most important roles the group executive should play? Given these roles, what are the key skills I should look for in each group executive? Drawing from interviews, existing literature, and their own extensive experience, the authors provide frameworks and perspectives that help top executives answer these questions.
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THE new library building has been open for six months now. It is pleasantly situated in an area of new buildings, and occupies a prominent island site just on the edge of the…
Abstract
THE new library building has been open for six months now. It is pleasantly situated in an area of new buildings, and occupies a prominent island site just on the edge of the shopping centre. The old library was in the middle of a shopping area, and it has been interesting to note that our removal from that site has had a more considerable effect on the traffic pattern than one would have thought.
This paper aims to investigate whether all-equity firms are a heterogeneous group as it relates to agency costs when compared to a matched sample of levered firms and to…
Abstract
Purpose
This paper aims to investigate whether all-equity firms are a heterogeneous group as it relates to agency costs when compared to a matched sample of levered firms and to contribute toward the understanding of the “low leverage” puzzle and the motivations behind such a perplexing phenomenon.
Design/methodology/approach
Propensity score matching (PSM) is used to control for endogeneity issues common to this line of research. Because all-equity firms are self-selecting, it is not possible to conduct a true randomized study. PSM attempts to simulate a randomized study by selecting matching observations with similar propensity scores as the all-equity observations.
Findings
Agency costs are not the only explanation leading to the implementation of an all-equity capital structure. The motivation of such structure is strongly influenced by free cash flows (FCF) and growth opportunities (GO), whereby firms that have high levels FCF combined with low GO exhibit higher levels of agency costs versus their levered peers, while those that have low levels of FCF and high GO exhibit no significant difference in agency costs.
Practical implications
A better understanding of why a firm chooses such an extreme capital structure can help investors, auditors and potential future creditors in their decision-making process.
Originality/value
Most prior research treats capital structure as an exogenous variable. By applying PSM, not previously used in prior research, a new methodology is used to address the endogeneity issue related to observational studies such as this one. This paper contributes toward further understanding the perplexing “low-leverage” puzzle often discussed in the financial and accounting literature.