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Lower Returns (lower + return)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	80%

Selected Abstracts

Jungle Law in the Orchard: Comparing Globalization in the New Zealand and Chilean Apple Industries

ECONOMIC GEOGRAPHY, Issue 4 2002
Megan K. L. McKenna
Abstract: Restructuring in the global apple market is leading to a pronounced tightening in the competitive spaces occupied by Southern Hemisphere producers. For New Zealand and Chile, the world's two most successful apple-exporting countries, significant challenges are presented by projected industry trends, such as declining profitability in the global industry, increased world production, and the continued static demand in key markets. In particular, falling prices in Europe and North America for many key varieties and concomitant lower returns to growers are threatening serious and pervasive impacts. This article explores some of these challenges in the context of the significantly different positions occupied by New Zealand and Chile within the global fresh fruit and vegetable complex. An analysis of the two countries' industries, particularly comparing issues of regulation and innovative varietal development, shows that global food complexes have highly variable spatial expressions, given their process-based nature and underlying dynamics of contestation. Focusing on the increased competition between the New Zealand and Chilean apple industries, the discussion sheds light on wider emerging competitive dynamics within the global fruit industry. The example of the recent Pacific Rose crisis, which involved Chilean "theft" of an exclusive New Zealand apple variety, is used to illustrate the emergence of "jungle law" in the Southern Hemisphere apple industries. [source]

Capital gains taxation and shareholder wealth in takeovers

ACCOUNTING & FINANCE, Issue 2 2010
Martin Bugeja
H24; G32; G34 Abstract Before December 1999, the capital gains of shareholders who sold their shares into Australian takeovers have been taxable irrespective of payment method. Subsequently, shareholders can elect to rollover capital gains in equity takeovers. We examine the effect of this change on the association between target shareholder capital gains and bidder and target firm shareholder wealth. The results indicate that prior to the regulatory change, cash consideration results in higher target shareholder returns for non-taxation reasons. After the introduction of capital gains tax rollover relief, we find that target and acquiring firm shareholders earn lower returns when cash consideration is offered to shareholders with greater capital gains. [source]

FACTOR ACCUMULATION OR TFP?

PACIFIC ECONOMIC REVIEW, Issue 1 2006
A REASSESSMENT OF GROWTH IN SOUTHEAST ASIA
Our results show that there is no single explanation for the growth performance of the countries in our sample. The results, particularly with reference to the role of embodied technology are comforting in terms of policy implications for countries such as Singapore, where, given the capital output ratios, there are lower returns to future capital accumulation. The possibility of capital being embodied through technological change makes future prospects much brighter for such a country. [source]

Luck versus Skill in the Cross-Section of Mutual Fund Returns

THE JOURNAL OF FINANCE, Issue 5 2010
EUGENE F. FAMA
ABSTRACT The aggregate portfolio of actively managed U.S. equity mutual funds is close to the market portfolio, but the high costs of active management show up intact as lower returns to investors. Bootstrap simulations suggest that few funds produce benchmark-adjusted expected returns sufficient to cover their costs. If we add back the costs in fund expense ratios, there is evidence of inferior and superior performance (nonzero true ,) in the extreme tails of the cross-section of mutual fund , estimates. [source]

Industry Concentration and Average Stock Returns

THE JOURNAL OF FINANCE, Issue 4 2006
KEWEI HOU
ABSTRACT Firms in more concentrated industries earn lower returns, even after controlling for size, book-to-market, momentum, and other return determinants. Explanations based on chance, measurement error, capital structure, and persistent in-sample cash flow shocks do not explain this finding. Drawing on work in industrial organization, we posit that either barriers to entry in highly concentrated industries insulate firms from undiversifiable distress risk, or firms in highly concentrated industries are less risky because they engage in less innovation, and thereby command lower expected returns. Additional time-series tests support these risk-based interpretations. [source]