scholarly journals The Impact of Radio Frequency Identification (RFID) Investment Announcements on the Market Value of the Firm

2008 ◽  
Vol 3 (1) ◽  
pp. 41-54
Author(s):  
Bong-Keun Jeong ◽  
Ying Lu
Keyword(s):  
Radio Frequency Identification ◽  
Manufacturing Sector ◽  
Empirical Studies ◽  
Abnormal Returns ◽  
Market Value ◽  
Information Technology Industry ◽  
Market Theory ◽  
Technology Industry ◽  
Efficient Market Theory ◽  
The Impact

This paper examines the impact of RFID investment announcements on the market value of the firms and explores industry effects of the positive abnormal returns to firms making the announcements. Drawing upon the efficient market theory, market signaling hypothesis, and prior empirical studies, we employ event study methodology to analyze RFID investment announcements over a six-year period from 2001 to 2006. In this paper, we present preliminary results that demonstrate an overall positive abnormal return to RFID investment announcements over the three-day event window. In addition, industry differences in market returns to RFID investment announcements are observed with a greater return realized in the manufacturing sector and specifically in the information technology industry segment and for technology vendors’ investment initiatives. These preliminary findings provide useful implications for a better understanding of the benefits of RFID adoption and for making decisions in RFID investment and adoption to create value for the firms.

Best-value supply chains and firms’ competitive performance: empirical studies of their linkage

2015 ◽  
Vol 35 (12) ◽  
pp. 1688-1709 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple
Keyword(s):  
Supply Chains ◽  
Competitive Advantage ◽  
Empirical Studies ◽  
Abnormal Returns ◽  
Competitive Performance ◽  
Content Type ◽  
Long Run ◽  
Best Value ◽  
Multiple Method ◽  
The Impact

Purpose – Best-value supply chains characterized by agility, adaptability, and alignment, have become a crucial strategic means for firms to create and sustain competitive advantage in today’s turbulent environment. The purpose of this paper is to investigate linkage between best-value supply chains and firms’ competitive performance. Design/methodology/approach – In Study 1, survey data from 76 firms is used to test the impact of the three qualities of best-value supply chains on firms’ competitive performance. In Study 2, to test if a firm’s competitive advantage can be sustained through building best-value supply chains, a long-run performance analysis is conducted, which is based on a stock portfolio of firms identified from the American Marketing Association’s annual list of “Supply Chain Top 25.” Findings – The results of Study 1 indicate that the three qualities of best-value supply chains are positively related to firms’ competitive performance. The results of Study 2 show that firms having best-value supply chains generate significant and positive abnormal returns for shareholders over time. Originality/value – This is a multiple-method research, providing two-level empirical evidence to the investigation of theoretical linkage between best-value supply chains and firms’ competitive performance.

An Empirical Research of Impact of the Merger of Pan-European and Oslo Stock Exchanges on the Efficiency of Tobacco Securities Market

2021 ◽  
Vol 7 (4) ◽  
pp. 568-587
Author(s):  
Dongpeng Xu ◽  
Deqin Lin ◽  
Dan Zhang
Keyword(s):  
Market Efficiency ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Secondary Market ◽  
Securities Market ◽  
Stock Exchanges ◽  
Market Returns ◽  
Market Theory ◽  
Efficient Market Theory ◽  
The Impact

Objectives: Europe is one of the important markets for traditional tobacco. We analyzed the impact of exchange consolidation on securities market efficiency, so as to enable tobacco enterprises to improve the financing efficiency of the stock market and carry out transformation and upgrading. Methods: In this work. We’re based on efficient market theory, the merger of Pan-European Stock Exchange and Oslo Stock Exchange, Norway in June 2019 is analyzed through empirical analysis. The logarithmic returns of 25 listed companies in the Oslo Stock Exchange OBX-25 index were analyzed using OLSN Chow and KPSS tests. Results: It is found that of 72% of securities, the explanatory power of market returns for securities returns is increased, which shows significant improvement in market efficiency. The merger of stock exchanges can indeed improve the market efficiency. In addition, through the KPSS test, it is found that the merger of stock exchanges can improve the market efficiency. As time goes by, however, the validity decreases. Conclusion: The improvement of the efficiency of the securities market will be conducive to the financing efficiency of listed tobacco companies in the secondary market, promote the transformation of enterprises, and contribute to the tobacco control and the health of the population in Europe.

scholarly journals Impact of Intellectual Property Infringement Lawsuits in the U.S. on Firm Value

2007 ◽  
Vol 8 (2) ◽  
pp. 11-32
Author(s):  
Wonseok Woo
Keyword(s):  
Intellectual Property ◽  
Stock Market ◽  
Firm Value ◽  
Abnormal Returns ◽  
Computer Hardware ◽  
Information Technology Industry ◽  
Stock Market Returns ◽  
Technology Industry ◽  
Study Methodology ◽  
Intellectual Property Infringement

This paper investigates the economic impact of intellectual property infringement lawsuits on the values of both the plaintiff and the defendant firms in the information technology industry. Event study methodology is used to investigate the effect of the litigation on the stock market returns around the date of commencement as well as the date of termination. Our results suggest that the news of intellectual property infringement lawsuits was unfavorably accepted in the stock market for the defendants. On the other hand, abnormal returns for plaintiff firms around lawsuit commencement date were significantly positive, while those at termination date were not positive at a statistically significant level. We also found chat firms in other technology sectors have been influenced more by the intellectual property infringement lawsuits than chose in computer hardware & peripheral sectors.

scholarly journals Abnormal Returns, Corporate Financial Policies and the Dynamics of Leverage: Empirical Evidence from Non-Financial Sector of Pakistan

2020 ◽  
Vol 6 (1) ◽  
pp. 153-166
Author(s):  
Kashif Hamid ◽  
Zahid Hussain ◽  
Muhammad Mudasar Ghafoor
Keyword(s):  
Financial Performance ◽  
Random Effect ◽  
Abnormal Returns ◽  
Market Value ◽  
Financial Sector ◽  
Financial Policies ◽  
Leverage Ratio ◽  
Market Values ◽  
The Impact ◽  
Leverage Dynamics

The aim of this study is to evaluate impact of corporate financial policies and the dynamics of leverage on financial performance of non-financial sector in Pakistan. In this study we used the data from Fertilizer, Chemical and Cement sector for the period 2008-2017. Abnormal return has been taken as dependent variable and Change in cash to lagged market values, Change in EBIT to lagged market values, Change in dividend to lagged market value, Net Financing to lagged market value, Lagged cash values to lagged market values, Lagged cash values to lagged market values crossed by change in cash to lagged market value, Change in total assets net of cash to lagged market values, Change in interest to lagged market values, Operating leverage, Financial leverage, Total leverage, Leverage ratio, Leverage ratio to change in cash crossed by lagged market values  and  WACC are taken as explanatory variables. OLS, Fixed effect and Random effect models has been used to express the impact of these variables on return. Hence it is concluded that leverage dynamics are significant contributors in designing the corporate financial policies. Corporate financial policies have significant impact on the financial performance of the non-financial sector of Pakistan.

scholarly journals The Optimal Pricing Analysis for Remanufactured Notebooks in a Duopoly Environment

2020 ◽  
Vol 12 (2) ◽  
pp. 636
Author(s):  
Ruey-Chyn Tsaur
Keyword(s):  
Social Welfare ◽  
Manufacturing Sector ◽  
Rapid Development ◽  
Theory Model ◽  
Green Supply Chain ◽  
Optimal Pricing ◽  
Information Technology Industry ◽  
Subsidy Policy ◽  
Technology Industry ◽  
The Government

The information technology industry plays an important role in Taiwan’s manufacturing sector, and its total notebook production ranks top in the world. The rapid development of IT products has caused many of these products to be discarded, although most of them can be recycled, remanufactured, and reused. In order to reduce the manufacture of new products and the associated carbon emissions, this study aims to discover the optimal subsidy policy for remanufactured notebooks in the green market, focusing on the pricing of remanufactured notebooks and maximizing manufacturers’ profits while retaining optimal social welfare for consumers. We use a two-stage game theory model to identify the optimal government subsidy policies for a duopoly environment. The results are based on the subsidy ratio between consumer and manufacturers, as this factor is important to the entire green supply chain; manufacturers can still reap optimal profits by only producing new or remanufactured products, and the government should be aware of the likelihood of manufacturers colluding and of the need to intervene when necessary to avoid sacrificing social welfare.

Internationalization, Financial Performance, and Organizational Challenges

2018 ◽  
pp. 379-423
Author(s):  
Nuno Teixeira ◽  
Pedro Nuno Pardal ◽  
Bruno Guerreiro Rafael
Keyword(s):  
Financial Performance ◽  
Business Environment ◽  
Information Technology Industry ◽  
Organizational Challenges ◽  
Technology Industry ◽  
Production Factors ◽  
Internationalization Strategy ◽  
The Impact ◽  
Diverse Cultures

One of the main characteristics of current business environment is related to internationalization of companies and economies, where competitors from different countries with diverse cultures and production factors, easily clash for a position of supremacy in the markets. Thus, internationalization turned the management of organizations in a more complex act, increasing opportunities but also the risks of the business. As such, this paper aims to reflect on the main issues associated with companies' internationalization and the impact on their management process, in particular on financial performance and in organizational changes. In addition, we intend to conduct a case study of a Portuguese company of information technology industry that through its internationalization strategy, managed in less than a decade, to increment the turnover from 10 million to 60 million euros, becoming one of the largest Portuguese groups in the sector and a worldwide success.

Internationalization and Financial Performance

2016 ◽  
pp. 88-121 ◽  
Author(s):  
Nuno Teixeira ◽  
Bruno Rafael ◽  
Pedro Pardal
Keyword(s):  
Financial Performance ◽  
Business Environment ◽  
Management Process ◽  
Information Technology Industry ◽  
Technology Industry ◽  
Production Factors ◽  
Internationalization Strategy ◽  
The Impact ◽  
Diverse Cultures

One of the main characteristics of current business environment is related to internationalization of companies and economies, where competitors from different countries with diverse cultures and production factors, easily clash for a position of supremacy in the markets. Thus, internationalization turned the management of organizations in a more complex act, increasing opportunities but also the risks of the business. As such, this paper aims to reflect on the main issues associated with companies' internationalization and the impact on their management process, in particular on financial performance. In addition, we intend to conduct a case study of a Portuguese company of information technology industry that through its internationalization strategy, managed in less than a decade, to increment the turnover from 10 million to 60 million euros, becoming one of the largest Portuguese groups in the sector and a worldwide success.

The impact of the Food Safety and Modernization Act on firm value

2016 ◽  
Vol 76 (2) ◽  
pp. 233-245 ◽  
Author(s):  
Mark Steven Johnson ◽  
Tolani Lawson
Keyword(s):  
Food Safety ◽  
Firm Value ◽  
Factor Model ◽  
Abnormal Returns ◽  
Market Value ◽  
Capital Asset Pricing ◽  
President Obama ◽  
Content Type ◽  
Time Period ◽  
The Impact

Purpose – The purpose of this paper is to determine the impact of the passage and signing of P.L. 111-353, the Food Safety Modernization Act (FSMA), on the market value of agribusiness firms. Design/methodology/approach – The authors conduct an event study of the shareholder value effects of FSMA. The short-window analyses estimate the three-, five-, and seven-day market responses to three key event dates: passage by the House, passage by the Senate, and the signing of FSMA by President Obama. The long-window analyses examine a time period that encompasses the three informational events, as well as the 30 months after the signing of FSMA. To control for the effects of market-wide fluctuations, the authors use two alternative models of the returns generating process to calculate abnormal returns, the Capital Asset Pricing Model (CAPM) and the Fama-French three-factor model. Findings – The short-window analyses show no evidence of a significant reaction to the passage of FSMA by the House or the Senate, but evidence of a significant negative reaction to the signing of FSMA by President Obama. The long window results which span the of passage by House, passage by the Senate and signing by the President indicate a decline in the average market value of agribusiness firms on the order of – 10 percent over the period. Additionally, the authors find some evidence that this effect is not evenly spread out across different types of agribusiness firms (wholesale, grocery, and processing). Originality/value – The study is the first to examine the impact of P.L.111-353 on the market value of agribusiness firms.

Impact of Cash Dividend Announcements: Evidence from the Indian Manufacturing Companies

2017 ◽  
Vol 16 (1) ◽  
pp. 29-60 ◽  
Author(s):  
Sadaf Anwar ◽  
Shveta Singh ◽  
P. K. Jain
Keyword(s):  
Stock Price ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Abnormal Returns ◽  
Manufacturing Companies ◽  
Cash Dividend ◽  
Mean Values ◽  
Significant Difference ◽  
Dividend Announcements ◽  
The Impact

According to a recent survey by McKinsey and Company, the Indian manufacturing sector is expected to touch US$ 1 trillion by 2025.This study analyses the impact of the announcement of cash dividends on the stock price returns of the manufacturing companies listed on Bombay Stock Exchange using event study methodology. Further, it explores whether the US financial crisis recession impacted average abnormal returns (AARs) in the period of study. The empirical results show that cash dividend announcements have positive AARs. Overall, the results lend support to the signalling and informational content hypotheses of dividends. The paired samples t-test indicates a significant difference in the mean values of AARs in the pre-and post-recession phases, highlighting the impact of recession.

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