TARGET MARKETS FOR RETAIL OUTLETS OF LANDSCAPE PLANTS

Merchandisers of landscape plants can increase the effectiveness of their marketing strategies by identifying target markets. Using a full information maximum likelihood tobit procedure on a system of three equations, target markets for different types of retail outlets in Georgia were identified. The results lend support and empirical evidence to the premise that different retail outlet types have different target markets and thus should develop different market strategies. The estimated target markets are identified and possible marketing strategies suitable for each type of retail outlet are suggested.Crop Production/Industries,

Is a G-3 Target Zone on Target for Emerging Markets?

With many emerging market currencies tied to the U.S. dollar either implicitly or explicitly, movements in the exchange values of the currencies of major countries–in particular the prolonged appreciation of the U.S. dollar vis-a-vis the yen and the deutsche mark in advance of Asia’s troubles–is argued to have worsened the competitive position of many emerging market economies. One solution to reducing destabilizing shocks emanating from abroad, the argument runs, would be to reduce the variability of the G-3 currencies by establishing target bands.1 This paper examines the argument for such a target zone from an emerging market perspective but will be silent on the costs and benefits for industrial countries.

Central Bank's Two-Way Communication with the Public and Inflation Dynamics

Using a model of island economy where financial markets aggregate dispersed information of the public, we analyze how two-way communication between the central bank and the public affects inflation dynamics. When inflation target is observable and credible to the public, markets provide the bank with information about the aggregate state of the economy, and hence the bank can stabilize inflation. However, when inflation target is unobservable or less credible, the public updates their perceived inflation target and the information revealed from markets to the bank becomes less perfect. The degree of uncertainty facing the bank crucially depends on how two-way communication works.Monetary policy, central bank communication, inflation target

Exchange rate stabilization in developed and underdeveloped capital markets

The target zone model by Krugman (1991) assumes that foreign exchange intervention targets exchange rate levels. We argue that the fit of this model depends on the stage of development of capital markets. Foreign exchange intervention of countries with highly developed capital markets is in line with Krugman’s (1991) model as the exchange rate level is targeted (mostly to sustain the competitiveness of exports) and the volatility of day-to-day exchange rate changes are left to market forces. In contrast, countries with underdeveloped capital markets control both volatility of day-to-day exchange rate changes as well as long-term fluctuations of the exchange rate levels to sustain the competitiveness of exports as well as to reduce the risk for short-term and long-term payment flows. Estimations of foreign exchange intervention reaction functions for Japan and Croatia trace the asymmetric pattern of foreign exchange intervention in countries with developed and underdeveloped capital markets. JEL Classification: F31foreign exchange intervention, reactions functions, target zones, underdeveloped capital markets

The Impact of U.S. Central Bank Communication on European and Pacific Equity Markets

We examine the effects of U.S. federal funds target rate changes and all types of FOMC communication on European and Pacific equity market returns using a GARCH model. We show that both types of news have a significant impact, but that the effects are not symmetric: although several communication variables are statistically significant, target rate changes have an economically more important impact. European markets are influenced by a greater variety of FOMC communications than Pacific markets.Central Bank Communication, International Equity Markets, Federal Reserve Bank, U.S. Monetary Policy

Run-up, toeholds, and agency effects in mergers and acquisitions: evidence from an emerging market

This paper analyses some particular characteristics of merger and acquisition (M&A) transactions in an emerging market (Portugal) using a sample of 52 M&A targets between 1989 and 2001. Our evidence shows that the run-up effect in the Portuguese market is of a significantly larger magnitude (as a proportion of total abnormal returns for targets) than the one shown in studies for well developed capital markets (UK and US). In fact, the cumulative run-up target stock price abnormal increase in this emerging market is on average 13% in the 40 days before the M&A announcement, which corresponds to almost sixty percent of the entire cumulative abnormal return of 23% enjoyed by target shareholders around the announcement date (-40,+40). The presence of acquirers’ toeholds in targets is positively related to the relative magnitude of such run-up effect, while hostility and the presence of large shareholders in the target have a negative impact. Evidence is also presented that abnormal returns for both bidders and targets are substantially lower in bearish markets as compared to bullish markets, with acquirers experiencing sizeable negative abnormal returns in bear markets but significantly positive ones in bull periods. Overall, our results caution for the existence of particularities of M&A transactions in emerging markets in comparison to well developed markets, and point to a number of research directions that are relevant both to emerging and developed markets.mergers and acquisitions, run-up, agency theory, emerging markets

Bank behaviour with access to credit risk transfer markets

One of the most important recent innovations in financial markets has been the development of credit derivative products that allow banks to more actively manage their credit portfolios than ever before. We analyse the effect that access to these markets has had on the lending behaviour of a sample of banks, using a sample of banks that have not accessed these markets as a control group. We find that banks that adopt advanced credit risk management techniques (proxied by the issuance of at least one collateralized loan obligation) experience a permanent increase in their target loan levels of around 50%. Partial adjustment to this target, however, means that the impact on actual loan levels is spread over several years. Our findings confirm the general efficiency-enhancing implications of new risk management techniques in a world with frictions suggested in the theoretical literature.credit derivatives; bank loans; moral hazard

CDFIs and Online Business Lending: A Review of Recent Progress, Challenges, and Opportunities

The report, authored by Jack Northrup, Eric Hangen, and Michael Swack, looks at some of the issues CDFIs face as the fintech industry (technology companies involved in lending) grows and begins to target markets served by CDFIs

Identifying Target Markets for Landscape Plant Retail Outlets

Landscape plant retailers must identify target markets to maximize marketing effectiveness. A tobit process is used on a system of three equations with fourteen years of data identifies target markets for different retail outlets. Results, compared with a previous study, show effects of time on target markets.Crop Production/Industries,