Control Premium in Legally Constrained Markets for Corporate Control: The Italian Case (1993–2003)*

We discuss the simple model pioneered by Barclay and Holderness (1989, Journal of Financial Economics 25: 371–395) and recently reproposed by Dyck and Zingales (2004a, Journal of Finance 2, 537–600; 2004b Journal of Applied Corporate Finance 16, 51–72) in order to measure the value of control in countries, like Italy, where transfer of control is regulated by law. We demonstrate that it is possible to broaden the application of B&;H approach to block trades followed by mandatory tender offers and we show the conditions under which we may obtain significant measures of private benefits also when voluntary tender offers are considered. In order to test for our theoretical predictions, we analyse the pricing of 27 control transactions involving the common stock of Italian listed corporations between 1993 and 2003. We find that block-transaction (tender) premium equals on average 8% of the firm’s equity value in the case of pure block-trades, 9% in the case of block trades followed by a mandatory tender offer, while it increases to 18% in the case of voluntary tender offers. The results suggest that, in the case of block trades followed by a mandatory tender offer, the acquirer does not transfer a larger portion of its surplus. This doesn’t take place in the case of voluntary tender offers, in which the raider’s bargaining power collapses. Our estimate of the control premium is sensibly lower than that presented in previous studies based on similar methodologies, providing up-to-date evidence for control stake valuation purposes and for comparison with cross country studies aiming at assessing the quality of rules devoted to minority shareholders’ protection. We also perform a cross-sectional regression analysis of private benefits of control and confirm some of the findings presented in the previous literature: particularly, we find evidence of a positive relation between the magnitude of private benefits of control and the target’s degree of stock-pyramiding. We also find that foreign acquirers and financial investors seem likely to face greater difficulties in extracting private benefits of control.     

Likelihood as an index of fit

Summary In this paper likelihood is characterized as an index which measures how much a model fits a sample. Some properties required to an index of fit are introduced and discussed, while stressing how they describe aspects inner to idea of fit. Finally we prove that, if an index of fit is maximal when the model reaches the distribution of the sample, then such an index is an increasing continuous transform of , where thep _i's are the theoretical relative frequencies provided by the model and theq _i's are the actual relative frequencies of the sample.     

Limits to population size: Three scenarios of energy interaction between human society and ecosystem

A simple theoretical model describing the interaction between humans and their environment in terms of energy flows is proposed to check the compatibility between the density of energy throughput in human society and the density of energy throughput in the ecosystem. This model is then applied to analyze three different scenarios of energy interaction between human society and the ecosystem: (i) societal activity is supported exclusively by biophysical processes for energy input and conversion; (ii) society is fueled by biofuels (biogas and alcohol) but power is generated by exosomatic technological devices (engines, etc.); (iii) society has ample access to a high-density energy input and exosomatic technological devices. For each scenario limits to human development are discussed, and estimates of a sustainable population size provided on the basis of compatibility between energy throughput in society and the environment.     

Pay Dispersion and Executive Behaviour: Evidence from Innovation

Compensation packages are widely used to motivate top executives. Pay dispersion among a firm's executives, however, can be associated with the antithetic effects of social comparison and individual motivation, with unclear implications for the company. We focus on innovation activities, which represent an important channel through which pay dispersion can affect firm performance, and test our predictions by exploring innovative output as a function of executives’ pay dispersion in a panel of US firms. We find that executive pay dispersion acts as a double‐edged sword. On the one hand, the higher the dispersion in variable pay, the higher the innovation. On the other hand, the larger the dispersion in fixed pay, the lower the innovation. Results are robust to a number of tests, such as restricting the analysis to executives with direct responsibility for innovation projects and considering individual incentives in the form of cash pay.     

The Influence of Advance Letters on Response in Telephone Surveys: A Meta-Analysis

Recently, the leading position of telephone surveys as the majormode of data collection has been challenged. Telephone surveyssuffer from a growing nonresponse, partly due to the generalnonresponse trend for all surveys and partly due to changesin society and technology influencing contactability and willingnessto answer. One way to counteract the increasing nonresponseis the use of an advance letter. In mail and face-to-face surveys,advance letters have been proven effective. Based on the proveneffectiveness in face-to-face and mail surveys, survey handbooksadvise the use of advance letters in telephone surveys. Thisstudy reviews the evidence for this advice and presents a quantitativesummary of empirical studies on the effectiveness of advanceletters in raising the response rate for telephone surveys.The major conclusion is that advance letters are also an effectivetool in telephone surveys, with an average increase in responserate (RR1) from 58 percent (no letter) to 66 percent (advanceletter), and an average increase in cooperation rate (COOP1)from 64 percent (no letter) to 75 percent (advance letter).     

Die Rahmenbedingungen verändern sich — der Dritte in der Therapie

The background conditions are changing — the third party in therapy The author examines connections between dyadic and triangle structures in the rehabilitation of addiction diseases. He considers the background of his personal experiences related to the changes in his professional position. The traditional dyadic relationship between physician and patient becomes ?destroyed“ by an triangle system in the frame of rehabilitation. Only by reflecting the job order it becomes possible to hold the balance between the responsibilities regarding the patient, the institution, the financial supporter and oneself. The difficulties in this process are reflected (overestimation of oneself and/or of others resp. devaluation of oneself and/or of others). The author explains the necessity to learn, to respect and to estimate, what one has not learned and does not fit to one’s self-understanding.     

Psychometric evaluation of the Italian translation of the Gamblers’ Beliefs Questionnaire

Italy has experienced a rapid growth in gambling accessibility, expenditures and problems. Gambling-related cognitive distortions are established risk factors for disordered gambling, although little is known about the role of gambling-related cognitive distortions among Italians. To establish a valid tool for assessing these distortions, an Italian version of the Gamblers’ Beliefs Questionnaire (GBQ-I) was translated and psychometrically evaluated in a sample of 749. Eighty-five percent had gambled recently and 110 were identified as probable disordered gamblers. Good reliability, internal consistency and test-retest reliability were demonstrated. Concurrent, convergent and predictive validities also suggested that the GBQ-I is a valid and reliable measure for assessing gambling-related cognitive distortions among clinical and non-clinical Italian samples. Factor analysis explored the two-factor structure from the measures’ initial validation but was unable to replicate it. The validation of this translation of the GBQ allows for future cross-cultural research on the role of cognitive distortions in the study and treatment of gambling problems.     

Service Productivity: What Stops Service Firms from Measuring It?

Productivity measurement poses a challenge for service organizations. Conventional management wisdom holds that this challenge is rooted in the difficulty of accurately quantifying service inputs and outputs. Few service firms have adequate service productivity measurement (SPM) systems in place and implementing such systems may involve organizational transformation. Combining field interviews and literature-based insights, the authors develop a conceptual model of antecedents of SPM in service firms and test it using data from 276 service firms. Results indicate that one out of five antecedents affects the choice to use SPM, namely, the degree of service standardization. In addition, all five hypothesized antecedents and one additional antecedent (perceived appropriateness of the current SPM) predict the degree of SPM usage. In particular, the degree of SPM is positively influenced by the degree of service standardization, service customization, investments in service productivity gains, and the appropriateness of current service productivity measures. In turn, customer integration and the perceived difficulty of measuring service productivity negatively affect SPM. The fact that customer integration impedes actual measurement of service productivity is a surprising finding, given that customer integration is widely seen as a means to increase service productivity. The authors conclude with implications for service organizations and directions for research.     

Collaborative Partnership in Age-Friendly Cities: Two Case Studies From Quebec,Canada

This article aims to explain the collaborative partnership conditions and factors that foster implementation effectiveness within the age-friendly cities (AFC) in Quebec (AFC-QC), Canada. Based on a community-building approach that emphasizes collaborative partnership, the AFC-QC implementation process is divided into three steps: (1) social diagnostic of older adults' needs; (2) an action plan based on a logic model; and (3) implementation through collaborations. AFC-QC promotes direct involvement of older adults and seniors' associations at each of the three steps of the implementation process, as well as other stakeholders in the community. Based on two contrasting case studies, this article illustrates the importance of collaborative partnership for the success of AFC implementation. Results show that stakeholders, agencies, and organizations are exposed to a new form of governance where coordination and collaborative partnership among members of the steering committee are essential. Furthermore, despite the importance of the senior associations' participation in the process, they encountered significant limits in the capacity of implementing age-friendly environments solely by themselves. In conclusion, we identify the main collaborative partnership conditions and factors in AFC-QC.