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Operating Performance (operating + performance)
Selected AbstractsPost-IPO Operating Performance, Venture Capital and the Bubble YearsJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 9-10 2007Jerry Coakley Abstract:, We analyse the post-issue operating performance of 316 venture-backed and 274 non-venture UK IPOs 1985,2003. The finding of a statistically significant five-year, operational decline exhibited over the full sample period is not robust. Rather it is driven by the dramatic underperformance during the 1998,2000 bubble years while IPOs perform normally in the remaining years. Cross-section regression results indicate support for venture capital certification in the non-bubble years but a significantly negative relationship between operating performance and venture capitalist board representation during the bubble years. The bubble year underperformance is explained by market timing and by low quality companies taking advantage of investor sentiment. [source] Corporate Acquisitions and the Operating Performance of Malaysian CompaniesJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 3-4 2004R. Abdul Rahman We report improvements in long run operating performance for a sample of Malaysian companies that made acquisitions over the period 1988,1992. As the sample selected consists of acquisitions of private target companies, the analysis allows us to focus on the possibility of changes arising from non-disciplinary sources. The reported improvements do not appear to have been achieved by sacrificing the long-term viability of the combined firms in pursuit of shortterm objectives. However, as the target companies in the current study were previously privately-owned businesses, researchers and policy makers should be wary before generalising from these results. [source] Stock Returns and Operating Performance of Securities IssuersTHE JOURNAL OF FINANCIAL RESEARCH, Issue 3 2002Gil S. Bae Abstract We examine long-run stock returns and operating performance around firms' offerings of common stock, convertible debt, and straight debt from 1985 to 1990. We find that pre-issue abnormal returns are positive and significant for stock issuers, but not for convertible and straight debt issuers. The post-issue mean returns show that common stock and convertible debt issuers experience underperformance during the post-issue periods, but straight debt issuers do not. Consistent with these results, common stock issuers experience the best pre-issue operating performance among all three types of issuers, and operating performance declines during the post-issue periods for common stock and convertible debt issuers. Using a new approach in linear model estimations to correct heteroskedasticity and to adjust for finite sample, we find a positive relation between post-issue operating performance and issue-period stock price reactions. The results suggest that future operating performance is anticipated at the issue and that securities issues provide information on issuers' future performance. [source] Long-term Equity and Operating Performances following Straight and Convertible Debt Issuance in the U.S.,ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, Issue 3 2009Mookwon Jung Abstract This paper shows that long-term equity and operating performances that follow straight and convertible debt issuance in the U.S. are different, just as are announcement-period market reactions, supporting the notion that market investors initially underreact to a selective event of convertible debt issuance. Cross-sectional tests reveal that firms issuing convertible debt often suffer stock underperformance partly because of their deteriorating fundamentals subsequently to the issuance. Even when each convertible bond directly matches with a straight bond that has a similar offering date and issuer and bond characteristics, convertible debt issuers still significantly under-perform straight debt issuers, supporting that what matters for long-term equity and operating performances is the type of debt offering. [source] Development of a high-speed electromagnetic repulsion mechanism for high-voltage vacuum circuit breakersELECTRICAL ENGINEERING IN JAPAN, Issue 1 2008Mitsuru Tsukima Abstract This paper presents a design and testing of a new high-speed electromagnetic driving mechanism for a high-voltage vacuum circuit breaker (VCB). This mechanism is based on a high-speed electromagnetic repulsion and a permanent magnet spring (PMS). This PMS is introduced instead of the conventional disk spring due to its low spring energy and more suitable force characteristics for VCB application. The PMS has been optimally designed by the 3D nonlinear finite-elements magnetic field analysis and investigated its internal friction and eddy-current effect. Furthermore, we calculated the dynamic of this mechanism coupling with the electromagnetic field and circuit analysis, in order to satisfy the operating characteristics,contact velocity, response time, and so on, required for the high-speed VCB. A prototype VCB, which was built based on the above analysis, shows sufficient operating performance. Finally, the short circuit interruption tests were carried out with this prototype breaker, and we have been able to verify its satisfying performance. © 2008 Wiley Periodicals, Inc. Electr Eng Jpn, 163(1): 34,40, 2008; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/eej.20398 [source] Diversification, Ownership and Control of Swedish CorporationsEUROPEAN FINANCIAL MANAGEMENT, Issue 3 2002John A. Doukas We study the short- and long-term valuation effects of Swedish takeovers. Using a sample of 93 bidding firms that acquired 101 targets between 1980 and 1995, we find that diversifying acquisitions lead to a negative market reaction and deterioration of the operating performance of the bidder. Announcement and performance gains in each of the three years following the acquisition occur only when bidders expand their core rather than their peripheral lines of business. Our findings suggest that focused acquisitions lead to greater synergies and operating efficiencies than diversifying acquisitions. Intra-group acquisitions, however, show that bidders do not realise significant gains whether they adopt diversifying or focusing investment strategies by purchasing firms controlled by the Wallenberg and SHB conglomerate groups. Intra-group targets realize significant gains regardless bidder's investment strategy. Finally, the evidence does not support the view that intra-conglomerate acquisitions are associated with expropriation of minority shareholders. However, they appear to enhance the control rights of large shareholders of the bidding firm. [source] Shareholder Value: Principles, Declarations, and ActionsFINANCIAL MANAGEMENT, Issue 1 2010Claudio Loderer This paper is about shareholder value. We examine whether welfare considerations justify that target and whether competitive markets force firms to pursue it. We also argue that shareholder value is strictly an ill-defined goal. We report evidence from a large sample of listed firms across the world that many managers do not even mention shareholders in their mission statements. However, firms that do disclose a commitment to shareholders seem to perform better in terms of stock price and operating performance. [source] What Drives the S&P 500 Inclusion Effect?FINANCIAL MANAGEMENT, Issue 4 2006An Analytical Survey We present an analytical survey of the explanations,price pressure, downward-sloping demand curves, improved liquidity, improved operating performance, and increased investor awareness,for the increase in stock value associated with inclusion in the S&P 500 Index. We find that increased investor awareness is the primary factor behind the cross-section of abnormal announcement returns. We also find some evidence of temporary price pressure around the inclusion date. We find no evidence that long-run downward-sloping demand curves for stocks, anticipated improvements in operating performance, or increased liquidity are related to the cross-section of announcement or inclusion returns. [source] The Information Content of Multiple Stock SplitsFINANCIAL REVIEW, Issue 4 2008Gow-Cheng Huang G14 Abstract We examine the relationship between the frequency of stock splits and firms' motives for splitting their stock. Compared to their peers, infrequent splitters show higher post-split operating performance, but not so for frequent splitters. We find that split ratio and liquidity change explain the stock split announcement effect for the frequent splitters. In contrast, the change in operating performance in the split year explains the announcement effect for the infrequent splitters. Our results suggest that frequent splits are more consistent with the trading range-improved/liquidity hypothesis and infrequent splits are more consistent with the signaling hypothesis. [source] Private placements of convertible securities: stock returns, operating performance and abnormal accrualsACCOUNTING & FINANCE, Issue 4 2009Jan L. Williams G14; G32 Abstract This study examines long-run stock returns, operating performance and abnormal accruals of private placements of convertible securities. We investigate the effects surrounding private placements to test and differentiate the implications of several competing hypotheses. While the monitoring and certification hypotheses suggest positive effects, the managerial entrenchment, overvaluation and windows-of-opportunity hypotheses suggest the opposite. We find that placing firms generally experience positive effects in the pre-periods and negative effects in the post-periods. Our overall findings are more consistent with the predictions of the overvaluation and windows-of-opportunity hypotheses while our post-placement evidence is also consistent with the predictions of the managerial entrenchment hypothesis. [source] Corporate governance, insider ownership and operating performance of Australian initial public offeringsACCOUNTING & FINANCE, Issue 3 2004Maria C. A. Balatbat We examine ownership structures and corporate governance attributes of 313 Australian initial public offerings (IPOs) between 1976 and 1993 and their relation with up to 5 years of post-listing operating performance, adjusted for similar (non-IPO) firms. Consistent with prior share price-based evidence, we find that the operating performance of Australian IPOs typically deteriorates over the first 4 post-listing years. Any evidence of a positive association between insider ownership and firm performance is confined to the fourth and fifth years after the IPO. Evidence of a positive relation between institutional ownership and performance is restricted to the latter part of our 5-year post-listing window. Board composition (i.e. outsider versus insider control) is not associated with operating performance, although there is some evidence that independent board leadership is associated with better operating performance. [source] A fuzzy logical vigilance alarm system for improving situation awareness and trust in supervisory controlHUMAN FACTORS AND ERGONOMICS IN MANUFACTURING & SERVICE INDUSTRIES, Issue 4 2006Cheng-Li Liu An automation system's operating performance is judged by how well an automation unit is monitored and maintained by its supervisors. Previous research has shown that situation awareness (SA) and trust are critical factors in automation. The purpose of this study was to evaluate and improve supervisory performance in automation manufacturing. First, a conceptual structure of the relationship among SA, trust, and vigilance was developed. Second, a quantitative vigilance performance-measuring model (, value) was proposed. Third, a matrix experiment based on orthogonal arrays through a simulated system of an auxiliary feed-water system (AFWS) was conducted to verify the effect of the measuring model. Finally, according to the vigilance performance-measuring model, a fuzzy logical vigilance alarm system was constructed to improve operating performance. The results of the first experiment indicated that the , value on human dynamic decision-making characteristics was easy and objective in the measurement of operators' vigilance. With greater vigilance, there is a greater likelihood of making appropriate SA and acquiring more trust in automation. The results of the second experiment indicated that applying the , value to the design of the fuzzy logical vigilance alarm system could improve supervisory performance efficiently. Therefore, an adaptive vigilance performance-measuring model combined with a fuzzy technique applied to the design of a human,machine interface for the improvement of cognitive decision making and operating performance is an important new direction in automation manufacturing. © 2006 Wiley Periodicals, Inc. Hum Factors Man 16: 409,426, 2006. [source] The impact of HR practices on the performance of business unitsHUMAN RESOURCE MANAGEMENT JOURNAL, Issue 3 2003Patrick M. Wright This article examines the impact of HR practices and organisational commitment on the operating performance and profitability of business units. Using a predictive design with a sample of 50 autonomous business units within the same corporation, the article reveals that both organisational commitment and HR practices are significantly related to operational measures of performance, as well as operating expenses and pre-tax profits. [source] Operational Improvement: The Key to Value Creation in Private EquityJOURNAL OF APPLIED CORPORATE FINANCE, Issue 3 2009Gary Matthews With credit tightening having reduced the availability of leverage and intensified the competition for new deals, the economic recession has caused many companies in private equity firm portfolios to under-perform. These changes are forcing the private equity firms to depend even more on their ability to improve operating performance to achieve their investment goals and generate attractive returns. But few PE firms have proved capable of achieving such improvements in portfolio companies consistently over time. In this paper, the authors discuss several ways that private equity firms use their operating expertise to drive value in their portfolio companies. They also examine the analytical framework used by some PE firms when assessing and prioritizing the many operational initiatives that could be undertaken within a newly acquired company. Part of that examination involves a detailed look at how private equity firms assemble an attractive mix of operational improvement projects in their initial 100-day plans. Finally, the authors explore one of the challenges faced by private equity firms when attempting to implement operational enhancements in newly acquired companies: bringing about change without alienating company management. The real-world application of this approach is demonstrated with a case study that shows how one private equity buyer put its operational skills into practice to help create value within a mid-sized portfolio company. [source] Post-IPO Operating Performance, Venture Capital and the Bubble YearsJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 9-10 2007Jerry Coakley Abstract:, We analyse the post-issue operating performance of 316 venture-backed and 274 non-venture UK IPOs 1985,2003. The finding of a statistically significant five-year, operational decline exhibited over the full sample period is not robust. Rather it is driven by the dramatic underperformance during the 1998,2000 bubble years while IPOs perform normally in the remaining years. Cross-section regression results indicate support for venture capital certification in the non-bubble years but a significantly negative relationship between operating performance and venture capitalist board representation during the bubble years. The bubble year underperformance is explained by market timing and by low quality companies taking advantage of investor sentiment. [source] Corporate Acquisitions and the Operating Performance of Malaysian CompaniesJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 3-4 2004R. Abdul Rahman We report improvements in long run operating performance for a sample of Malaysian companies that made acquisitions over the period 1988,1992. As the sample selected consists of acquisitions of private target companies, the analysis allows us to focus on the possibility of changes arising from non-disciplinary sources. The reported improvements do not appear to have been achieved by sacrificing the long-term viability of the combined firms in pursuit of shortterm objectives. However, as the target companies in the current study were previously privately-owned businesses, researchers and policy makers should be wary before generalising from these results. [source] Management Motivation and Market Assessment: Revaluations of Fixed AssetsJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2001Bikki Jaggi The study examines Hong Kong managers' motivation for upward revaluation of fixed assets. The results show that revaluations are positively associated with the firms' future operating performance, suggesting that the managers' primary motivation for upward revaluation of fixed assets has been to signal fair value of assets to financial statements users. Another motivation for revaluations has been to improve the firm's borrowing capacity. The results also indicate a significantly positive association between revaluations and stock prices and returns, suggesting that the market's assessment aligns with the managers' revaluations. [source] Improving performance through vertical disintegration: evidence from UK manufacturing firmsMANAGERIAL AND DECISION ECONOMICS, Issue 5 2009Panos DesyllasArticle first published online: 24 NOV 200 Unlike previous work on the vertical integration,performance relationship, we investigate the performance consequences of vertical disintegration. We offer a theoretical justification for the disintegration decision and we condition the disintegration effect on performance on the initial degree of firm integration, the timing and the direction of disintegration. Using a sample of UK manufacturing firms and controlling for disintegration endogeneity, we find that disintegration eventually results in improved operating performance, particularly when disintegration occurs as a reaction to poor performance and in cases of forward between-sector disintegration. However, being highly integrated does not guarantee gains from disintegration. The implications of these findings are discussed. Copyright © 2008 John Wiley & Sons, Ltd. [source] The Role of the Underlying Real Asset Market in REIT IPOsREAL ESTATE ECONOMICS, Issue 1 2005Jay C. Hartzell A leading explanation for IPO cycles is time-varying supply and demand for the underlying assets of the firms that are considering going public. We test this hypothesis using REIT IPOs, taking advantage of the relative transparency of the underlying real asset markets. We document links between REIT IPO activity and both the conditions of the underlying real estate market and the price of REITs. We find no significant relation between the heat of the IPO market and post-IPO operating performance, implying homogeneous firm quality across IPO cycles. Finally, we show that lagged IPO proceeds are related to future increases in investment and in capacity utilization. [source] Pension Plan Funding and Stock Market EfficiencyTHE JOURNAL OF FINANCE, Issue 2 2006FRANCESCO FRANZONI ABSTRACT The paper argues that the market significantly overvalues firms with severely underfunded pension plans. These companies earn lower stock returns than firms with healthier pension plans for at least 5 years after the first emergence of the underfunding. The low returns are not explained by risk, price momentum, earnings momentum, or accruals. Further, the evidence suggests that investors do not anticipate the impact of the pension liability on future earnings, and they are surprised when the negative implications of underfunding ultimately materialize. Finally, underfunded firms have poor operating performance, and they earn low returns, although they are value companies. [source] INDUSTRY PROSPECTS AND ACQUIRER RETURNS IN DIVERSIFYING TAKEOVERSTHE JOURNAL OF FINANCIAL RESEARCH, Issue 1 2009Husayn Shahrur Abstract We use a sample of 816 diversifying takeovers from 1978 to 2003 to examine whether takeover announcements release negative information about the future prospects of the acquirer's main industry. We find that rivals that are most similar to the acquirer (homogeneous rivals) experience significant negative cumulative abnormal returns (CAR) around takeover announcements. Takeovers that result in negative wealth effects to acquirers are associated with negative abnormal revisions in analysts' forecasts of homogeneous rivals' earnings per share. We also find a decline in the posttakeover operating performance of rival firms. The decline is especially pronounced for homogeneous rivals and for takeovers with negative wealth effects to acquirers. Our findings imply that CAR-based estimates of acquirer wealth gains from takeovers that do not account for industrywide information releases are significantly biased downward. [source] The Operating Performance of Firms that Switch Their Stock ListingsTHE JOURNAL OF FINANCIAL RESEARCH, Issue 4 2003George J. Papaioannou Abstract In this article we examine the operating performance of stocks that switch from NASDAQ to the American Stock Exchange (AMEX) or the New Stock Exchange (NYSE) and from AMEX to the NYSE. Specifically, we investigate whether post-listing operating performance is consistent with the reported negative long-term drift of post-listing stock returns and whether there is evidence of self-selection of the listing time. We find evidence of negative post-listing changes in operating return on assets and sales, which, on a match-adjusted basis, are significant for the relatively small NASDAQ stocks switching to AMEX. We also find evidence that firms self-select the time of listing changes. [source] Stock Returns and Operating Performance of Securities IssuersTHE JOURNAL OF FINANCIAL RESEARCH, Issue 3 2002Gil S. Bae Abstract We examine long-run stock returns and operating performance around firms' offerings of common stock, convertible debt, and straight debt from 1985 to 1990. We find that pre-issue abnormal returns are positive and significant for stock issuers, but not for convertible and straight debt issuers. The post-issue mean returns show that common stock and convertible debt issuers experience underperformance during the post-issue periods, but straight debt issuers do not. Consistent with these results, common stock issuers experience the best pre-issue operating performance among all three types of issuers, and operating performance declines during the post-issue periods for common stock and convertible debt issuers. Using a new approach in linear model estimations to correct heteroskedasticity and to adjust for finite sample, we find a positive relation between post-issue operating performance and issue-period stock price reactions. The results suggest that future operating performance is anticipated at the issue and that securities issues provide information on issuers' future performance. [source] Are the Best Small Companies the Best Investments?THE JOURNAL OF FINANCIAL RESEARCH, Issue 2 2002W. Scott Bauman Abstract Previous research finds that large companies previously judged to be excellent growth companies have subsequently been poor investments. We examine small companies selected by Business Week on the basis of multiple criteria used in annual articles featuring highly rated growth companies. We study the investment performance over the three years before eleven annual Business Week publications and the three years after publication. We find positive excess returns in the pre-publication period, but negative excess returns in the post-publication period. This reversal in investment performance appears to be due to a mean-reversion tendency in operating performance, in which the earnings and the past rates of return on capital of such companies subsequently decrease significantly. [source] CEO Power and Firm Performance: A Test of the Life-Cycle Theory,ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, Issue 1 2009Maretno A. Harjoto Abstract We examine the effects of corporate governance and monitoring mechanisms on the choice of board leadership structure and the value and performance of a firm according to the firm's life-cycle changes. Employing a large and extensive sample during the 1995,2005 period, we find that the board leadership choice is associated with governance characteristics including board independence, managerial entrenchment, and CEO abilities measured by CEO age and CEO tenure after controlling for various firm characteristics. In addition, after correcting for the endogenous treatment effect, our results show that while CEO dualities-i.e., CEO-chair of the board or CEO-nomination committee member , or CEO pluralities-i.e., CEO-chair of the board, and a chair or a member of the nomination committee-positively influences firm value and performance in firm's early stage, CEO duality or CEO pluralities adversely influences firm value and operating performance in firm's late stage. These results are supportive of the life-cycle theory, suggesting that CEO power concentration is beneficial in firms' early stage, but harmful in firm's late stage at which firms require check-and-balance as opposed to dictatorship. In addition, the impact of external monitoring by institutional ownership on firm value and performance is more effective than those of independent board and blockholders' ownership while the impact of Sarbane-Oxley Act on firm performance is not significant. [source] From State to State: Quasi-privatization and Firm PerformanceCHINA AND WORLD ECONOMY, Issue 5 2009Kun Wang G32; G34; G38 Abstract This paper uses a sample of Chinese listed companies whose controlling shareholders have changed from government agencies to state-owned enterprises (SOEs), to examine whether reducing government intervention while maintaining government's ultimate control could improve firm performance. The results show that the overall performance of these firms improves after the transfer of their controlling shareholders, due to improvements in both operating and non-operating performance. When we separate all samples into solely SOEs and other SOEs based on the controlling shareholder, we find that operating performance improved significantly in the solely SOE group, whereas non-operating performance improved significantly in the SOE group. In addition, we identify sources of performance improvement from two perspectives: corporate governance and related party transactions. The results imply that the Chinese Government should continue to decentralize control and, at the same time, continue to monitor firm operating efficiency. [source] Improving the performance of natural gas pipeline networks fuel consumption minimization problemsAICHE JOURNAL, Issue 4 2010F. Tabkhi Abstract As the gas industry has developed, gas pipeline networks have evolved over decades into very complex systems. A typical network today might consist of thousands of pipes, dozens of stations, and many other devices, such as valves and regulators. Inside each station, there can be several groups of compressor units of various vintages that were installed as the capacity of the system expanded. The compressor stations typically consume about 3,5% of the transported gas. It is estimated that the global optimization of operations can save considerably the fuel consumed by the stations. Hence, the problem of minimizing fuel cost is of great importance. Consequently, the objective is to operate a given compressor station or a set of compressor stations so that the total fuel consumption is reduced while maintaining the desired throughput in the line. Two case studies illustrate the proposed methodology. Case 1 was chosen for its simple and small-size design, developed for the sake of illustration. The implementation of the methodology is thoroughly presented and typical results are analyzed. Case 2 was submitted by the French Company Gaz de France. It is a more complex network containing several loops, supply nodes, and delivery points, referred as a multisupply multidelivery transmission network. The key points of implementation of an optimization framework are presented. The treatment of both case studies provides some guidelines for optimization of the operating performances of pipeline networks, according to the complexity of the involved problems. © 2009 American Institute of Chemical Engineers AIChE J, 2010 [source] Long-term Equity and Operating Performances following Straight and Convertible Debt Issuance in the U.S.,ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, Issue 3 2009Mookwon Jung Abstract This paper shows that long-term equity and operating performances that follow straight and convertible debt issuance in the U.S. are different, just as are announcement-period market reactions, supporting the notion that market investors initially underreact to a selective event of convertible debt issuance. Cross-sectional tests reveal that firms issuing convertible debt often suffer stock underperformance partly because of their deteriorating fundamentals subsequently to the issuance. Even when each convertible bond directly matches with a straight bond that has a similar offering date and issuer and bond characteristics, convertible debt issuers still significantly under-perform straight debt issuers, supporting that what matters for long-term equity and operating performances is the type of debt offering. [source] Sustainability report in small enterprises: case studies in Italian furniture companiesBUSINESS STRATEGY AND THE ENVIRONMENT, Issue 3 2009Francesca Borga Abstract The recent evolution of the economic and social context has led enterprises to consider and assess corporate environmental and social impacts integrated with the traditionally measured economic and operating performances. ,,From this point of view, the international debate on the advantages given by the firms' adoption of socially responsible behaviour has been developed; the increasing consciousness of the social character in enterprises' activities has enlarged the interest in communication. For this reason, several different standards have been developed in order to transmit, to the stakeholders, data, information and approaches about environmental, social and sustainability topics related to the firm's activities. In this dynamic context, the features of SMEs require specific guidelines, which address the contents of an SME-oriented sustainability report. ,,In this perspective the aim is to design guidelines able to meet with these SMEs' requirements; seven case studies, on Italian furniture small enterprises, complete the study. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [source] | ||||||||||||||||||||||||||||