R&D partnership portfolios and the inflow of technological knowledge

Companies' early-stage research and development efforts are extremely uncertain and research has often argued that companies should form one technology-development alliance at a time to see if a new technology may have potential. The drawback of such a sequential approach is that companies are left empty-handed in case that one alliance does not produce any results.

The portfolio perspective as proposed in this research instead argues that in the face of severe uncertainty, companies should engage in multiple simultaneous alliances in order to distinguish quickly between technological dead-ends and promising new technologies.

Updated: 14/01/2013
Comments:
Views: 5,297

Money market freezes and central banks

Author(s):

Max Bruche

 et al.
Topic:
Finance
Industry:
Banking

During the global crisis central banks were accused of undertaking unconventional measures that some commentators claimed went beyond their mandate. This article focuses on central banks intervening in the money markets as a middle man. It argues that such actions can be welfare improving, but are unlikely to be fiscally neutral, thus raising questions about whether they should be left to a central bank.

Updated: 06/02/2013
Comments:
Views: 5,419

The market valuation of bonus distributions in an inflationary environment

Author(s):

Meziane Lasfer

Topic:
Finance
Industry:
Banking

In inflationary environments, companies can avoid paying cash dividends to their shareholders. Instead they give them free shares, referred to as bonus distributions. This issue has not been analysed in previous studies, partly because the inflation in many western countries is relatively low and stable.

In this study, the market valuation of this unusual form of stock dividends was assessed, this was carried out by transferring the accumulated equity reserves, mainly the inflation revaluation equity reserves, to paid-in capital leaving the total equity unchanged.

Updated: 06/02/2013
Comments:
Views: 5,500

Accruals, disclosure and the pricing of future earnings in the European market

Author(s):

Ivana Raonic

 et al.
Topic:
Accounting
Industry:
Banking



The present study examines the role of disclosure in assisting market participants to form expectations of future earnings from the accrual (i.e., the non cash) content of reported earnings. Prior research has shown that, in general, disclosure is able to enhance future earnings information in current stock returns.

In this paper, it is shown that the role of disclosure in revealing relevant information on the prospects of the firm depends on the nature of the accruals appearing in the financial statements.

Updated: 14/02/2017
Comments:
Views: 20,491

Do accounting requirements constrict supply chain finance?

Author(s):

ManMohan Sodhi

Industry:
Any Industry


Although supply chain finance appears to offer a win-win-win proposition for buyers, suppliers and banks, buyers have been reluctant to adopt these solutions. It has been suggested that accounting requirements on supply chain finance render its adoption unattractive for buyers through reclassification of accounts payable to debt, thus increasing the debt held by the buyer on their balance sheet.

To investigate whether this is indeed the case, preliminary research was carried out through interviews with four financial organisations.

Updated: 09/12/2014
Comments: 19
Views: 13,037

Firm incentives, institutional complexity and the quality of “harmonised” accounting numbers

Author(s):

Ivana Raonic

Topic:
Finance
Industry:
Any Industry

A recent attempt to harmonise accounting standards internationally, through the adoption of IFRS, has raised expectations of greater similarity in reporting quality across jurisdictions.

Although research shows that high-quality standards generally improve accounting quality, there is evidence that standards have a limited role in determining financial reporting quality.

Updated: 14/01/2013
Comments:
Views: 17,660

Determinants of debt rescheduling in Eastern European countries

Author(s):

Natasa Todorovic

Topic:
Finance
Industry:
Any Industry

From 1990 to 2005, a number of Eastern European countries became an attractive region for investments. This paper looks at 15 of those countries and aims to estimate debt rescheduling probabilities by using a set of macroeconomic, financial and political variables.

This research is of particular relevance to policy makers, institutional and private foreign investors to investigate determinants or debt rescheduling probabilities in those countries.

Updated: 01/01/2015
Comments: 2
Views: 6,846

A savings plan with targeted contributions

Author(s):

Iqbal Owadally

 et al.

With the cost of living on the rise and job certainty in doubt, many people are putting aside funds to meet a certain demand in the future. This could be for a child's education, a new property or a pension.

Two decisions must be made: how much the monthly contributions will be and where the money will be invested. This paper considers the first of those decisions. Would you prefer to save a fixed amount of money each month or alter your contributions according to income and circumstance?

Updated: 14/01/2013
Comments:
Views: 5,748

UK state pension reform in a public choice framework

Social security systems for old age have been explicitly studied in a public choice framework for over 30 years. They illustrate extremely well the problems of allocating economic resources through a system of voting.

This paper examines the incentives facing voters to expand state pension provision and the possibilities of reducing state pension provision by increasing state pension age. As such it is of great relevance for the study of policy in ageing societies where implicit pension liabilities are increasing and will prove difficult to reduce.

Updated: 14/01/2013
Comments:
Views: 6,521