scholarly journals ECONOMIC SHOCKS, COMPETITION AND MERGER ACTIVITY

10.26870/1 ◽  
2019 ◽  
Vol 1 (1) ◽  
pp. 1-1 ◽  
Author(s):  
Marcin W. Krolikowski ◽  
Kevin Okoeguale
Keyword(s):  
Technological Change ◽  
Cash Flow ◽  
Production Technology ◽  
Economic Shocks ◽  
Merger Activity ◽  
Industry Competition ◽  
Competitive Mechanism ◽  
Cash Flow Volatility

This study seeks to understand “how” economic shocks drive industry merger activity. We test whether economic shocks from deregulation and technological change drive industry merger activity by increasing industry competition, controlling for the effect of valuations. We find that these shocks drive merger activity through three channels related to industry competition; deregulation drives merger activity by increasing entry and cash flow volatility; technological change drives merger activity by increasing entry and inter-firm dispersion in the quality of production technology. These findings underscore the role of the competitive mechanism in how managers reallocate assets via mergers and support the view that the industry-level clustering of merger activity is an efficiency-driven restructuring response to increased competition.

Does Financial Reporting Conservatism Mitigate Underinvestment?

2017 ◽  
Vol 34 (2) ◽  
pp. 258-283 ◽  
Author(s):  
Hyun A. Hong ◽  
Yongtae Kim ◽  
Gerald J. Lobo
Keyword(s):  
Information Asymmetry ◽  
Cash Flow ◽  
Financial Reporting ◽  
Cash Flows ◽  
Agency Conflicts ◽  
Negative Relation ◽  
Investment Projects ◽  
External Capital ◽  
Cash Flow Volatility

This study examines the role of financial reporting conservatism in mitigating underinvestment problems. Recognizing that volatile cash flows increase the need to access external capital markets and that agency conflicts and information asymmetry make external capital costlier than internal capital, which leads managers to forgo valuable investment projects, Minton and Schrand document a negative relation between cash flow volatility and investment. We draw on Minton and Schrand’s framework to isolate underinvestment problems and hypothesize and document that conservatism mitigates the negative relation between cash flow volatility and investment and that this mitigative effect is more pronounced for firms with ex ante more severe agency conflicts. We also document that conservatism mitigates the sensitivity of investment to cash flow volatility by facilitating access to external capital.

scholarly journals Role of Hedging Mechanism in Maintaining Volatility Cash Flow and Growth Opportunity and Their Impact on Investor Reaction

2020 ◽  
Vol 15 (1) ◽  
pp. 23
Author(s):  
Hartono Hartono ◽  
Oktavianus Pasoloran ◽  
Fransiskus Eduardus Daromes
Keyword(s):  
Path Analysis ◽  
Cash Flow ◽  
Stock Exchange ◽  
Improve Performance ◽  
Investor Confidence ◽  
Growth Opportunity ◽  
Forward Contract ◽  
Cash Flow Volatility ◽  
Investor Reaction

This study aims to investigate the role of forward contract hedging in maintaining volatility cash flow and growth opportunity and its impact on investor reaction. The population in this study included 242 non-financial companies listed on the Indonesia Stock Exchange from 2013–2017. The sample was determined using purposive sampling, and path analysis was employed to analyze the data. Results show that forward contract hedging mediates the effects of volatility cash flow and growth opportunity on investor reaction. This research is expected to provide insights so that company management can improve performance properly and increase investor confidence through the application of hedging, thereby maintaining volatility cash flow and growth opportunity. Keywords: Cash flow volatility, growth opportunity, hedging forward contract, investor reaction.

Cash flow volatility-return relation and financial constraints: international evidence

2017 ◽  
Vol 43 (3) ◽  
pp. 354-378 ◽  
Author(s):  
Darshana D. Palkar
Keyword(s):  
Stock Returns ◽  
Cash Flow ◽  
Financial Constraints ◽  
Negative Impact ◽  
Content Type ◽  
Developed Markets ◽  
Specific Factors ◽  
Cash Flow Volatility ◽  
Country Specific

Purpose The purpose of this paper is to examine whether cash flow volatility (CFV) has a negative impact on future stock returns, and whether the CFV-return relation is different among financially constrained and unconstrained firms, by using a broad sample of 21 developed markets. Design/methodology/approach The study conducts portfolio analysis to test the CFV effect on returns. Risk-adjusted returns (alphas) are computed with respect to country-specific factors based on market, size, book-to-market, and momentum. Findings The strategy of buying stocks with low CFV while shorting stocks with high CFV delivers significant alphas in more than three-fourths of the markets. The alphas for the long-short portfolio based on CFV are positive and statistically significant in more than 70 percent of the countries among financially constrained firms, largely driven by the underperformance of high-CFV stocks. In comparison, the CFV effect is observed in less than 45 percent of the countries among financially unconstrained firms, and is largely driven by the outperformance of low-CFV stocks. Originality/value This study extends prior findings by providing evidence of a negative relation between CFV and stock returns in a majority of global equity markets. The evidence also suggests an important role of financial constraints in explaining this relation.

scholarly journals Salt Marketing Strategy in Lombok Timur Regency, Nusa Tenggara Barat

2021 ◽  
Vol 10 (1) ◽  
pp. 95
Author(s):  
Mohammad Subhan ◽  
Prawita Anggeni ◽  
Sirrul Hayati
Keyword(s):  
Human Resources ◽  
Qualitative Methods ◽  
Marketing Strategy ◽  
Production Technology ◽  
Small And Medium Enterprises ◽  
Marketing Channels ◽  
Operational Costs ◽  
Medium Enterprises

Marketing is the main problem felt by salt farmers in East Lombok Regency, especially during the harvest season, which has an impact on the conversion of the salt pond land to cultivation land. This research aims to: 1) identify salt marketing channels in East Lombok Regency, 2) develop salt marketing strategy in East Lombok Regency. This research uses qualitative methods and the data will be analyzed by SWOT analysis.Efficient salt marketing occurs when the marketing channels include producers (salt farmers)-cooperatives /micro, small and medium enterprises-consumers, because it can shorten marketing channels and-reduce operational costs. Marketing of salt in East Lombok Regency can be carried out with several strategies, namely: 1) Maximizing the role of cooperatives and micro, small and medium enterprises in salt marketing, 2) Improving the quality of human resources in managing the salt business, 3) Formulating regulations on salt trading, and 4) Providing production technology training to salt farmers and salt micro, small and medium enterprises.

Cognitive Health Counseling 40+

2013 ◽  
Vol 21 (1) ◽  
pp. 24-33 ◽  
Author(s):  
Anne Eschen ◽  
Franzisca Zehnder ◽  
Mike Martin
Keyword(s):  
Outcome Variable ◽  
Pilot Phase ◽  
Subjective Memory ◽  
Cognitive Health ◽  
Health Counseling ◽  
Agents Of Change ◽  
Main Outcome Variable ◽  
Further Development

This article introduces Cognitive Health Counseling 40+ (CH.CO40+), an individualized intervention that is conceptually based on the orchestration model of quality-of-life management ( Martin & Kliegel, 2010 ) and aims at improving satisfaction with cognitive health in adults aged 40 years and older. We describe the theoretically deduced characteristics of CH.CO40+, its target group, its multifactorial nature, its individualization, the application of subjective and objective measures, the role of participants as agents of change, and the rationale for choosing participants’ satisfaction with their cognitive health as main outcome variable. A pilot phase with 15 middle-aged and six older adults suggests that CH.CO40+ attracts, and may be particularly suitable for, subjective memory complainers. Implications of the pilot data for the further development of the intervention are discussed.

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