Flotation costs represent a significant loss of capital to firms and are positively related to information asymmetry between managers and outside investors. We measure a firm's information asymmetry ...by its accounting information quality based on two extensions of the Dechow and Dichev 2002. The quality of accruals and earnings: the role of accrual estimation errors. Accounting Review 77, 35–59 earnings accruals model, which is a more direct approach to assessing the information available to outside investors than the more commonly used proxies. Our main hypothesis is that poor accounting information quality raises uncertainty about a firm's financial condition for outside investors, though not necessarily for insiders. This accounting effect lowers demand for a firm's new equity, thereby raising underwriting costs and risk. Using a large sample of seasoned equity offerings (SEOs), we show that poor accounting information quality is associated with higher flotation costs in terms of larger underwriting fees, larger negative SEO announcement effects, and a higher probability of SEO withdrawals. These results are robust to joint determination of offer size and flotation cost components and to adjustments for sample selection bias.
People may use the amount of time it takes someone else to reach a particular decision as input that informs their thoughts and feelings about that decision. Building on prior work suggesting that ...people are more inclined to accept offers that are extended more rapidly, the current research shows that this preference for quicker offers depends critically on whether offers are considered simultaneously along with other offers or individually (i.e., joint vs. separate evaluation mode), as well as on the presence and nature of explicit temporal reference points in joint evaluation mode. We theorize that the preference for quicker offers is limited to settings where (1) multiple offers are considered simultaneously and (2) the amount of time it took for these offers to be made exceeds a salient temporal reference point. This implies that the effect should not be observed when multiple offers are considered that were not all generated more slowly than an explicit temporal reference point, or when offers are considered one at a time. Evidence from seven studies provides support for this theorizing. The findings advance our understanding of the nuanced ways in which the amount of time taken to extend offers affects how people interpret, draw inferences from, and respond to these offers.
Closely connected to production, consumption plays an active catalyst role because all economic activities end in consumption. From this perspective, consumption research is a good solution to ...identify offer accurately and meet the needs and, on the other hand, it is an important source of information in marketing. Consumption ranges among the first in the process of goods use. Consumption is the process of using goods to meet consumption needs (though not all needs) since there is always a gap between needs and consumption.
This paper investigates the interplay between offer size and offer deadline in a Stackelberg game involving a proposer and a responder. The proposer acts first by making an offer to the responder ...with a deadline, and the responder, concurrently following a continuous-time finite-horizon search for alternative offers, has to respond to the proposer’s offer by the deadline. Taking into account the responder’s reaction, the proposer’s optimal strategy can vary from an exploding offer—an offer that has to be accepted or rejected on the spot—to an offer with an extended deadline under different market conditions, proxied by characteristics of the alternative offer distribution. In particular, the proposer should offer an exploding offer when the alternative offer market is unfavorable to the responder, and the harsher it is, the smaller will be the offer size. By contrast, when the alternative offer market is favorable to the responder, the proposer can benefit from making a smaller (compared with the exploding offer) nonexploding offer, and the more favorable the market, the smaller will be the offer size and the longer the deadline. Our analysis is further extended to the case where the responder has private knowledge of the alternative offers’ arrival rate, and we characterize the optimal strategy for the proposer when she makes either a single offer or a menu of offers that serves as a self-selection mechanism. In the latter case, the optimal menu of offers can be implemented as a sign-up bonus type of contract.
This paper was accepted by Manel Baucells, decision analysis.
The newest kidney allocation policy kidney allocation system 250 (KAS250) broadened geographic distribution while increasing allocation system complexity. We studied the volume of kidney offers ...received by transplant centers and the efficiency of kidney placement since KAS250. We identified deceased-donor kidney offers (N = 907,848; N = 36,226 donors) to 185 US transplant centers from January 1, 2019, to December 31, 2021 (policy implemented March 15, 2021). Each unique donor offered to a center was considered a single offer. We compared the monthly volume of offers received by centers and the number of centers offered before the first acceptance using an interrupted time series approach (pre-/post-KAS250). Post-KAS250, transplant centers received more kidney offers (level change: 32.5 offers/center/mo, P < .001; slope change: 3.9 offers/center/mo, P = .003). The median monthly offer volume post-/pre-KAS250 was 195 (interquartile range 137-253) vs. 115 (76-151). There was no significant increase in deceased-donor transplant volume at the center level after KAS250, and center-specific changes in offer volume did not correlate with changes in transplant volume (r = -0.001). Post-KAS250, the number of centers to whom a kidney was offered before acceptance increased significantly (level change: 1.7 centers/donor, P < .001; slope change: 0.1 centers/donor/mo, P = .014). These findings demonstrate the logistical burden of broader organ sharing, and future allocation policy changes will need to balance equity in transplant access with the operational efficiency of the allocation system.
I review recent empirical research documenting offer premiums and bidding strategies in corporate takeovers. The discussion ranges from optimal auction bidding to the choice of deal payment form and ...premium effects of poison pills. The evidence describes the takeover process at a detailed level, from initial premiums to bid jumps, entry of rival bidders, and toehold strategies. Cross-sectional tests illuminate whether bidders properly adjust for winner's curse, whether target stock price runups force offer price markups, and whether auctions of bankrupt firms result in fire-sale discounts. The evidence is suggestive of rational strategic bidding behavior in specific contexts.
Biological agriculture is a dynamic sector that has known lately an increasing trend. One of the main conditions for biological agriculture to develop is the promotion of the eco concept to make the ...consumers aware of the advantages of consuming biological products. With the rise of the population interest in a more proper lifestyle and the awareness of the importance of healthy nutrition, biological products have started to replace part of the conventional products in the nutrition of more and more consumers.
The issue of tender offers has surfaced, among others, because there have been several cases of takeovers of public companies by other parties, causing losses to other shareholders, especially public ...shareholders. The main issues to be discussed, namely how the regulation of Tender Offers in Indonesia, what are the legal consequences of Tender Offers. This research aims to find out the regulation of Tender Offer in Indonesia and the impact of Take Over on Public Companies that are taken over. The form of research in writing this journal is a normative legal research jurisdiction using a statutory approach. The results in this research. The regulations regarding takeovers and tender offers are contained in Law Number 8 of 1995 concerning the Capital Market and Government Regulation number 27 of 1998. the result of this study is that in 2011 the Government passed Law Number 21 of 2011 concerning the Financial Services Authority which resulted in the transfer of power regarding macroeconomic regulation from Bank Indonesia to OJK which includes the Take Over and Tender Offer process. In 2020 PT Garudafood Putra Putri Jaya, Tbk. Did a Takeover (Take Over) to PT Mulia Boga Raya, Tbk.
The COVID-19 pandemic has had a markedly negative impact on global tourism and, on the other hand, has offered new opportunities for researchers to analyze the resilience of the tourism industry in ...such conditions. Recently, several scientific articles have emerged claiming that the COVID-19 pandemic could represent an opportunity for significant changes in tourism. This refers to changing practices at several levels and spreading new ethical principles. The pandemic has also made people aware of the importance of "well-being". Even without a pandemic, wellness tourism has been one of the fastest-growing types of tourism in recent years. In all parts of the world, including Slovenia, natural spas have tried to adapt to new conditions during the COVID-19 pandemic. Our analysis confirms that visitors to Slovenian spas strongly support introducing new/alternative activities and thus the dispersion of visitors to several locations. They showed the greatest interest in visiting nature in the vicinity of spas, which is also expected as a result of the closure during the pandemic. The purpose of our article is to give suggestions for offering alternative activities in Slovenian natural spas. However, adapting the wellness offer in spas should ensure that the basic traditional principles of wellness are maintained.
PDF