James C. Brau, John Gardner, Hugo A. DeCampos and Krista Gardner
Blockchain technology offers numerous venues for supply chain applications and research. However, the connections between specific blockchain features and future applications have…
Abstract
Purpose
Blockchain technology offers numerous venues for supply chain applications and research. However, the connections between specific blockchain features and future applications have been unclear to date in its evolution. The purpose of this study is to fill this void.
Design/methodology/approach
The authors advance the understanding of blockchain in supply chain management by providing a new research framework built on unique blockchain features as applied across core supply chain functions.
Findings
This study’s framework is a feature-function matrix that integrates four overarching supply chain functions (i.e. supplier management, logistics, production processes and customer management) with nine blockchain features (i.e. traceability/provenance, accessibility, visibility, immutability, distributed/shared ledger, validity, peer-to-peer transacting, pseudonymity and programmability). This study’s feature-function framework is supported by a structured, systematic review of reviews using PRISMA methods. The authors use the framework to present a future blockchain research agenda in supply chain management.
Originality/value
The authors provide a new blockchain feature/supply chain function framework and provide a structured path for future research.
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James C. Brau and J. Troy Carpenter
The purpose of this paper is to test the fundamental purpose of the 1992 Small Business Incentive Act (SBIA) to reduce the regulatory burden for small firms to raise public equity…
Abstract
Purpose
The purpose of this paper is to test the fundamental purpose of the 1992 Small Business Incentive Act (SBIA) to reduce the regulatory burden for small firms to raise public equity capital.
Design/methodology/approach
Our research compares initial public offerings (IPOs) that filed with the newer SB‐2 program to benchmark firms that filed using the traditional S‐1 filing. The authors use three proxies to measure success, hypothesizing that, if the regulatory burden has indeed been reduced for small firms, all three variables should be smaller for SB‐2 IPOs. Univariate and multivariate analyses were conducted.
Findings
With regards to easing regulatory costs, it is found that the program has not been effective. On average, SB‐2 IPOs experience larger‐scaled offering expenses, and pay higher underwriter gross spreads compared to S‐1 IPOs of similar size. SB‐2 IPOs, however, take fewer days to complete the registration process, when controlling for other relevant factors. In the burden of time, the SBIA has been effective.
Practical implications
The paper is of value to managers of firms desiring to conduct an IPO. These managers, if they meet the size requirements dictated by the SEC, can elect to use an SB‐2 or an S‐1 document. The paper shows that if cost is the primary concern, the S‐1 program should be preferred. If time is the primary consideration, then the SB‐2 program is preferred.
Originality/value
To the authors' knowledge, they are the first to test the efficacy of the SBIA program.
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James C. Brau, David A. Carter, Stephen E. Christophe and Kimberly G. Key
Initial public offering (IPO) lockup agreements prevent insider sale of shares for specified periods of time (often 180 days). This study investigates share price reactions at and…
Abstract
Initial public offering (IPO) lockup agreements prevent insider sale of shares for specified periods of time (often 180 days). This study investigates share price reactions at and around the time the lockup agreements expire. Results indicate statistically significant negative abnormal returns in the event window surrounding the expiration date. The results are consistent with informational asymmetries and decreasing incentive alignment between insiders and general shareholders. In addition, multivariate analysis identifies several variables that help explain these abnormal returns.
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James C. Brau, Shon Hiatt and Warner Woodworth
The purpose of this paper is to investigate microlending outcomes among Latin American non‐governmental organizations (NGOs), specifically microfinance institutions (MFIs). While…
Abstract
Purpose
The purpose of this paper is to investigate microlending outcomes among Latin American non‐governmental organizations (NGOs), specifically microfinance institutions (MFIs). While there is a growing movement of non‐profit ventures channeling small loans to the poor worldwide, assessments of their impacts are lacking. Thus, field interviews with clients who had various degrees of involvement in the process of receiving microloans from MFIs were conducted over a summer in Guatemala.
Design/methodology/approach
Using a dataset of 393 clients from Guatemalan MFIs, microfinance impacts from two dimensions are examined and impacts measured along financial and social dimensions by surveying new clients, current clients, and graduated clients of five MFIs in Guatemala.
Findings
Applying univariate and multivariate analyses shows that for Guatemala, MFIs do produce a measure of improvement in the lives of microfinance clients. This improvement is concentrated along the social dimensions of housing, health, and client empowerment.
Research limitations/implications
A limitation of this paper is that it focuses on only five of several dozen MFIs in Guatemala. What is needed is further use of the survey instruments to carry out subsequent studies throughout more of Latin America, and beyond.
Practical implications
This research suggests that microfinance demonstrates promising results associated with social benefits to various client populations. As such, it holds a variety of implications for government and other policymakers as they consider innovative ways to reduce poverty and human suffering around the globe.
Originality/value
It is anticipated that this field study will contribute to the furtherance of literature on the effects of lending among the poor.
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Stanley E. Fawcett, Paul Osterhaus, Gregory M. Magnan, James C. Brau and Matthew W. McCarter
The purpose of this paper is to understand how information technology (IT) is used to enhance supply chain performance.
Abstract
Purpose
The purpose of this paper is to understand how information technology (IT) is used to enhance supply chain performance.
Design/methodology/approach
A large‐scale survey and semi‐structured interviews were used to collect industry data.
Findings
Two distinct dimensions to information sharing – connectivity and willingness – are identified and analyzed. Both dimensions are found to impact operational performance and to be critical to the development of a real information sharing capability. However, many companies are found to have placed most of their emphasis on connectivity, often overlooking the willingness construct. As a result, information sharing seldom delivers on its promise to enable the creation of the cohesive supply chain team.
Research limitations
Despite the extensive data collection, the research represents a snapshot of practice. Replication from a longitudinal perspective would help define how IT is evolving to enable supply chain management.
Practical implications
A roadmap is presented to help guide IT development and investment decisions.
Originality/value
The research presents a two‐by‐two matrix to help managers and academics understand the related nature of connectivity and willingness. A roadmap is presented to help guide IT development and investment decisions.
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James C. Brau, Drew Dahl, Hongjing Zhang and Mingming Zhou
The purpose of this paper is to examine the effect of regulatory reform on the asset allocation and capitalization of Chinese banks from 2002 to 2007, a period following China's…
Abstract
Purpose
The purpose of this paper is to examine the effect of regulatory reform on the asset allocation and capitalization of Chinese banks from 2002 to 2007, a period following China's entry into the World Trade Organization (WTO).
Design/methodology/approach
The evidence rejects a hypothesis that the four categories of banks operating in China – the Big Four, Majority State, Majority Private, and Majority Foreign banks have converged toward common targets. Supplemental analysis indicates that domestic banks, but not foreign banks, adjust equally to their targets.
Findings
The paper concludes that, although Chinese banking remained segmented during this unique transitional period, a more uniform pattern has emerged for those Chinese banks that are domestically owned.
Originality/value
The authors employ a methodology that is explicitly designed to determine if banks have converged toward common approaches to asset allocation and capitalization, which has not been studies previously.
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Lerong He, James J. Cordeiro and Tara Shankar Shaw
The purpose of the research is to study how Chief Executive Officer’s (CEO’s) ownership, CEO’s structural and expertise power and underwriters’ reputation affect the initial…
Abstract
Purpose
The purpose of the research is to study how Chief Executive Officer’s (CEO’s) ownership, CEO’s structural and expertise power and underwriters’ reputation affect the initial public offering (IPO) lockup period.
Design/methodology/approach
The study uses the multivariate regression method to test the hypothesis on a sample of 1,071 US IPOs, which comprise 80 per cent of the total population of IPOs over the 1998-2002 period.
Findings
It was found that CEO equity ownership had a direct positive impact and two indicators of CEO positional power (CEO duality, founder status) and underwriter reputation had a direct negative impact on the length of the lockup period that results from IPO negotiations between the issuing firm and the underwriter. It was also found that underwriter reputation negatively moderates the impact of equity ownership (likely due to a substitution effect) and positively moderates the impact of CEO duality on lockup period length (by offsetting the impact of CEO positional power).
Originality/value
Previous studies have exclusively studied the affect of economic factors on IPO lockup. This paper extends the extant literature by studying the insider’s characteristics like CEO’s power and underwriter’s reputation on IPO lockup periods.
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Cheng-Wei Wu and Jeffrey J. Reuer
In M&A markets, acquirers face a hold-up problem of losing the value of investments they make in due diligence, negotiations, and post-acquisition planning if targets would pursue…
Abstract
In M&A markets, acquirers face a hold-up problem of losing the value of investments they make in due diligence, negotiations, and post-acquisition planning if targets would pursue the options of waiting for better offers or selling to an alternative bidder. This chapter extends information economics to the literature on M&A contracting by arguing that such contracting problems are more likely to occur for targets with better outside options created by the information available on their resources and prospects. We also argue that acquirers address these contracting problems by using termination payment provisions to safeguard their investments. While previous research in corporate strategy and finance has suggested that certain factors can facilitate an acquisition by reducing a focal acquirer’s risk of adverse selection (e.g., signals, certifications), we note that these same factors can make the target attractive to other potential bidders and can exacerbate the risk of hold-up, thereby leading acquirers to use termination payment provisions as contractual safeguards.
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Janice M. Gordon, Gonzalo Molina Sieiro, Kimberly M. Ellis and Bruce T. Lamont
Advisors play a key role in the mergers and acquisitions (M&A) process, but research to date has rarely focused on how their influence impacts these transactions. The present…
Abstract
Advisors play a key role in the mergers and acquisitions (M&A) process, but research to date has rarely focused on how their influence impacts these transactions. The present chapter takes stock of the present literature on M&A advisors from finance, economics, and management in order to integrate the currently diverging research traditions into a coherent framework. The current research has focused on proximal acquisition outcomes, like acquisition premiums or expected performance in the form of cumulative abnormal returns, but there is limited theoretical understanding of the advisors impact on the post-acquisition period. Moreover, while the role of advisor reputation has been highlighted on both the management and finance literatures as an important aspect of the role advisors play in the M&A process, there seems to be much to be addressed. Furthermore, and perhaps most importantly, the nature of the relationship between the advisor and the acquirer or target presents challenges to researchers where the advisor acts both as a provider of expertise in the M&A process, but may be simply acting on their own best interest. The new framework that the authors present here provides management scholars with a roadmap into a cohesive research agenda that can inform our theoretical understanding of the role of M&A advisors.