Corporate control is assumed to rest in management's hands in firms with widely dispersed share ownership, but ownership of a relatively small block of shares may be sufficient to…
Abstract
Corporate control is assumed to rest in management's hands in firms with widely dispersed share ownership, but ownership of a relatively small block of shares may be sufficient to give the blockholder at least some measure of control or influence. Although the influence of individuals or institutions holding large minority positions is generally believed to benefit all shareholders through improved monitoring of management, one corporation may be motivated to acquire a sizeable minority position in another to achieve the benefits of merger without incurring the costs of a complete takeover. Given this motivation, the interests of the corporate minority shareholder may differ considerably from the interests of other shareholders.
Sridhar Sundaram, Indudeep Chhachhi and Stuart Rosenstein
This paper examines the association between board composition, ownership structure, and the shareholder wealth of bidding U.S. firms in international acquisitions. Foreign…
Abstract
This paper examines the association between board composition, ownership structure, and the shareholder wealth of bidding U.S. firms in international acquisitions. Foreign acquisitions represent major investment proposals that demand the involvement of the board in the decision-making process. Hence, the international acquisition process provides a good vehicle to examine the efficacy of the board of directors. Consistent with other studies, our results indicate that U.S. bidders experience significant negative wealth effects at the announcement of the acquisition. In addition, we find that wealth effects are significantly and positively related to board size and to share ownership by independent outside directors and inside directors. Sub-samples based on board size reveal that for small boards, share ownership by directors is significantly related to abnormal returns only for insider dominated boards. For large boards, ownership by independent outside directors is significantly related to abnormal returns only for outsider dominated boards.
Outlines the role of directors and previous research on their selection, reputation, relationship to firm performance and multiple directorships, noting criticism of those who sit…
Abstract
Outlines the role of directors and previous research on their selection, reputation, relationship to firm performance and multiple directorships, noting criticism of those who sit on many boards. Develops hypothese on the value directors provide through their time and expertise and tests them on a sample of 121 US firms being targeted for takeover 1989‐1993 to explore the link between pre‐offer and post‐offer firm performance and the number of directorships held by their directors. Presents the results, which suggest that directors with less time (i.e. more directorships) do not necessarily provide worse routine monitoring or lead to lower merger premiums. Recognizes some other factors affecting interpretation and calls for further research.
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John Byrd, L. Ann Martin and Subhrendu Rath
The purpose of this paper is to examine the impact of high‐level‐executives joining the Board of another US company on the shareholder wealth of the firms in which these…
Abstract
Purpose
The purpose of this paper is to examine the impact of high‐level‐executives joining the Board of another US company on the shareholder wealth of the firms in which these executives work.
Design/methodology/approach
The “event‐study” methodology is used first to estimate the shareholder effects and then, through multivariate regression analysis, establish a relationship of these effects with executive characteristics.
Findings
The paper documents that the abnormal return becomes more positive the closer the executive is to retirement and more negative as the number of other corporate Boards the executive already sits on increases. Unlike previous research, it is not found that prior performance of the employing company helps explain the cross‐sectional variation in the announcement day abnormal returns.
Research limitations/implications
The result supports the concerns of shareholder activists that key executives joining the Boards of other companies do their home shareholders a disservice by being spread too thin. It supports the hypothesis that investors interpret a CEO joining the Board of another firm as value decreasing.
Originality/value
The paper provides a link between managerial labor and shareholder wealth. Important and high‐level‐executives, while attempting to enhance their own personal benefits by joining other Boards, can destroy shareholder value of the company for which they work.
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The Nationalökonomische Gesellschaft (Austrian Economic Association, NOeG) provides a prominent example of the Viennese economic circles and associations that more than academic…
Abstract
The Nationalökonomische Gesellschaft (Austrian Economic Association, NOeG) provides a prominent example of the Viennese economic circles and associations that more than academic economics dominated scientific discourse in the interwar years. For the first time this chapter gives a thorough account of its history, from its foundation in 1918 until the demise of its long-time president, Hans Mayer, 1955, based on official documents and archival material. The topics treated include its predecessor and rival, the Gesellschaft österreichischer Volkswirte, its foundation in 1918 soon to be followed by years of inactivity, the relaunch by Mayer and Mises, the survival under the NS-regime and the expulsion of its Jewish members and the slow restoration after 1945. In particular, an attempt is made to provide a list of the papers presented to the NOeG, as complete as possible, for the period 1918–1938.
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This paper aims to study antiques enthusiasts’ perspectives on the recent stagnancy in the antiques market, along with their suggestions on how the antiques trade can forge a more…
Abstract
Purpose
This paper aims to study antiques enthusiasts’ perspectives on the recent stagnancy in the antiques market, along with their suggestions on how the antiques trade can forge a more secure path forward.
Design/methodology/approach
Using a qualitative analysis approach through netnography, this paper examines archived comments of antiques enthusiasts on a “r/antiques” subreddit.
Findings
This research studies connoisseurs’ insights into the reduction in antiques sales experienced by a wide cross-section of sellers, particularly independent and small business retailers. Specifically, the results of this paper’s discourse analysis show that technological advances on one hand and socioeconomic factors (e.g. income, family structure and lifestyle) on the other hand have had a significant negative impact on demand for antiques. In addition, specific attributes such as authenticity and sustainability emerged as potential key marketing elements for invigorating the broader public’s interest in purchasing antiques.
Originality/value
Despite their significant insights into the antiques market, antiques enthusiasts have not received the academic attention they deserve. Through discourse analysis of comments in an online antiques community, this paper draws attention to the vulnerabilities of antiques markets to a protracted climate of slow sales, while highlighting potential strategies on how to turn the tide for struggling antiques stores.
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Caitlin Zunckel, Pragasen Pillay, Mark Hamilton Drummond and David Rosenstein
Due to the paucity of research examining message framing strategies and attention in anti-consumption advertisements, this study aims to determine whether there is a significant…
Abstract
Purpose
Due to the paucity of research examining message framing strategies and attention in anti-consumption advertisements, this study aims to determine whether there is a significant difference between the amount of attention paid towards positively and negatively framed advertisements.
Design/methodology/approach
A quasi-experimental study design was conducted with a sample of 56 participants using two different (negatively and positively framed) social marketing print advertisements aimed at encouraging a reduction in meat consumption. The research used eye-tracking to examine attention.
Findings
Findings indicate that the negatively framed advertisement elicited significantly higher levels of attention overall than the positively framed advertisement (p < 0.05). Additionally, participants paid significantly more attention to the headline in the negatively framed advertisement than to the headline in the positively framed advert (p < 0.05). Participants also paid significantly more attention to the tagline in the positively framed advertisement (p < 0.05).
Originality/value
This study provides evidence for the effectiveness of a negative social marketing framing strategy compared to a positive framing strategy – through the effects these strategies had on consumer attention. Positively and negatively framed advertisements produce different typologies of attention towards advertising elements or areas of interest. These findings provide social marketers important insights about message placement and effectiveness when considering whether to use a positively framed or negatively framed advertisement.
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Nobody concerned with political economy can neglect the history of economic doctrines. Structural changes in the economy and society influence economic thinking and, conversely…
Abstract
Nobody concerned with political economy can neglect the history of economic doctrines. Structural changes in the economy and society influence economic thinking and, conversely, innovative thought structures and attitudes have almost always forced economic institutions and modes of behaviour to adjust. We learn from the history of economic doctrines how a particular theory emerged and whether, and in which environment, it could take root. We can see how a school evolves out of a common methodological perception and similar techniques of analysis, and how it has to establish itself. The interaction between unresolved problems on the one hand, and the search for better solutions or explanations on the other, leads to a change in paradigma and to the formation of new lines of reasoning. As long as the real world is subject to progress and change scientific search for explanation must out of necessity continue.
Miri Lerner, Gila Menahem and Robert D. Hisrich
Aims to examine the effect of government intervention programs in improving the occupational opportunities of new immigrants as self‐employed entrepreneurs or salaried employees…
Abstract
Purpose
Aims to examine the effect of government intervention programs in improving the occupational opportunities of new immigrants as self‐employed entrepreneurs or salaried employees, and to determine the effect, if any, of gender and ethnicity.
Design/methodology/approach
To examine the effects of two major types of government programs – retraining courses and support for business creation – a sample of 1,195 immigrants from the former Soviet Union in Israel were interviewed in depth on two different occasions.
Findings
The findings indicate that the impact of both government programs was more pronounced for women immigrants and immigrants from the Asian republics.
Research limitations/implications
The study focuses only on two government programs in one country – Israel.
Practical implications
In terms of immigrant incorporation into a society, government programs matter and matter more for disadvantaged groups. Participation in these programs helps diminish any gaps created by market forces.
Originality/value
This study adds to the immigration literature on state intervention by assessing the contribution of government programs and intervention to immigrants’ occupational incorporation.