This paper provides empirical evidence that takeovers can facilitate the efficient redeployment of assets of bankrupt firms. Bidders for bankrupt firms are generally in related industries and often have some prior relationship to the target, suggesting they are well informed with respect to both the value and best use of the target's assets. For a sample of 55 acquisitions in Chapter 11, we find that firms merged with bankrupt targets show significant improvements in operating performance, while matching non-bankrupt transactions show no significant improvement. We also find positive and significant abnormal stock returns for the bidder and bankrupt target at the announcement of the acquisition.Journal of Economic LiteratureClassification Numbers: G33, G34.

The variances of pricing errors (transitory changes in prices) at the NYSE open and the close are analyzed for U.S. stocks that are traded in London or Tokyo, British and Japanese stocks that are listed on the NYSE, and U.S. stocks that are not traded abroad. The variance of pricing errors is significantly greater at the open than at the close for U.S. stocks, but not foreign stocks. These differences are explained by differences in order flow at the open and the close, a relation that is the same whether stocks are foreign or domestic and whether they trade abroad or notJournal of Economic LiteratureClassification Numbers: G10, D23.

We analyze how the anonymous trading of uninformed agents affects the characterization of security market equilibrium. We show that the degree of anonymity provided by a market alters the distribution of wealth across agents, the depth of the market, and the incentive agents have to acquire private information about a security's fundamental value. Moreover, the nature of these effects depends on the type of information about uninformed trading that is revealed to market participants. Our results have implications for sunshine trading, dual trading, brokerage relationships, automation and decentralization of markets, and firms' security listing choices. G10, L10.

IN spite of the interest in advertising, research in the field has not been very impressive. The reason for this is simply that problems presented in marketing and advertising are often unique, and their satisfactory solutions require the development and synthesis of their own body of theory. This body is lacking.1 In Australia, in particular, advertising has not attracted a large amount of research. This is mainly because of the slowness with which marketing has been accepted as a separate subject of study in our universities, the lack of official statistical information on advertising, and the reluctance of Australian companies to disclose information on their marketing promotion efforts and expenses. The aim of this study is to analyse the marketing competitive behaviour of eight consumer goods producers, which economists and marketing analysts claim to be advertising heavily in Australia (Metwally, 1973a). In particular we estimate the magnitude of advertising expenditure consistent with the object of profit maximisation, and compare it with the actual expenditure of some dominant firms producing those commodities. In section I, we develop a mathematical model of demand similar to that of Dorfman and Steiner (1961). Section II considers the form of functional relationship that exists between sales, price and advertising. In section III different econometric models of competitive interdependence are compared and evaluated. Finally in section IV, the findings and their main implications on promotional competition are discussed. I

We formulate and test hypotheses about how lead banks of syndicated loans use private information about loan quality, the Signaling and Sophisticated Syndicate Hypotheses. We measure private information using Shared National Credit (SNC) internal loan ratings made comparable using concordance tables. As outcomes, we use proportions of loans retained by lead banks from SNC and rate spreads on the loans from DealScan. We find favorable private information is associated with higher retention and lower spreads for pure term loans, supporting the Signaling Hypothesis. Only lower spreads occur for pure revolvers, likely because their syndicates more often include large sophisticated banks.

Journal Article A Neoclassical Model of the Dual Economy with Capital Accumulation in Agriculture Get access Masanori Amano Masanori Amano University of Tsukuba Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 47, Issue 5, October 1980, Pages 933–944, https://doi.org/10.2307/2296923 Published: 01 October 1980 Article history Received: 01 January 1979 Accepted: 01 February 1980 Published: 01 October 1980

Journal Article On Distribution According to Labour—A Concept of Fairness in Production Economies Get access Mikiro Otsuki Mikiro Otsuki Tohoku University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 47, Issue 5, October 1980, Pages 945–958, https://doi.org/10.2307/2296924 Published: 01 October 1980 Article history Received: 01 May 1977 Accepted: 01 February 1980 Published: 01 October 1980

Journal Article Discrete Procedures of Economic Planning: A Unified View from Feasible Direction Methods Get access Mikiro Otsuki Mikiro Otsuki Tohoku University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 45, Issue 1, February 1978, Pages 77–84, https://doi.org/10.2307/2297084 Published: 01 February 1978

Journal Article Resource Extraction when a Future Substitute has an Uncertain Cost Get access Michael Hoel Michael Hoel University of Oslo Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 45, Issue 3, October 1978, Pages 637–644, https://doi.org/10.2307/2297265 Published: 01 October 1978 Article history Received: 01 January 1977 Accepted: 01 November 1977 Published: 01 October 1978