Shareholder Activism and the Role of Marketing: A Framework for Analyzing and Managing Investor Relations

This paper proposes a conceptual framework that shows the role of (the) marketing (function) in managing investor relations. The framework complements existing literature on the marketing-finance interface and explicitly includes investor relationships as market-based assets. The framework provides (the) marketing (function) with tools to analyze and manage investor relations in order to improve companies’ market performance and increase shareholder value by lowering the costs of shareholder activism. Three real-life scenarios of shareholder activism demonstrate the implications of the framework for marketing practice.Strategy;

A marketing-finance approach linking contracts in agricultural channels to shareholder value

A conceptual marketing-finance framework is proposed which links channel contracting in agriculture and the use of financial facilitating services (e.g., financial derivatives) to (shareholder) value creation. The framework complements existing literature by explicitly including channel contract relationships as market-based assets that can be managed to reduce cash flow volatility and hence increase shareholder value. We show how financial facilitating services (e.g., derivatives) can be used to complement the cash flows components of channel contract relationships thereby further reducing the risk adjusted cost of capital and improving shareholder value. In a field study of producers, wholesalers, and processors, in the potato and meat industry the framework shows how shareholder value can be enhanced by using financial facilitating services, such as derivatives, to complement marketing channel relationships. Moreover, this study shows how producers and managers from agribusiness companies can use such financial services as conflict-solving tools in case of incongruent contract preferences between channel members.marketing-finance, agricultural marketing strategy, decision-making, channels, Agribusiness, Agricultural Finance,

How do banks finance R&D intensive firms?:The role of patents in overcoming information asymmetry

We examine how banks finance R&D intensive firms, focusing on the role of patents in overcoming information asymmetry in bank lending. Consistent with moral hazard in due diligence and monitoring, we find that lead arrangers retain a larger share of syndicated loans when lending to R&D intensive firms. Patents can partly overcome moral hazard problems, as banks retain a smaller share of R&D intensive firms’ loans if these firms have patents as a signal of the quality of their inventions. Our results are robust to alternative explanatory variable definitions and syndicate structure measures, different samples and subperiods, and difference-in-difference estimations

The effect of different needs, decisionmaking processes and networkstructures on investor behavior and stock market dynamics : a simulation approach

Striking investor and stock market behaviour have been recurrent items in the worldwide press for the recent past. Crashes and hypes like the Internet bubble are often hard to explain using existing finance frameworks. Therefore, the authors provide a complementing multitheoretical framework that is built on existing finance research to describe and explain investor?s behaviour and stock market dynamics. This framework is built on three main components: needs, decision making theory, and (social) network effects. This framework will be used to build a future simulation model of investor behaviour and to generate stock market dynamics. A brief outline of the design of these simulation experiments will be given.

A marketing-finance approach linking contracts in agricultural channels to shareholder value

A conceptual marketing-finance framework is proposed which links channel contracting in agriculture and the use of financial facilitating services (e.g., financial derivatives) to (shareholder) value creation. The framework complements existing literature by explicitly including channel contract relationships as market-based assets that can be managed to reduce cash flow volatility and hence increase shareholder value. We show how financial facilitating services (e.g., derivatives) can be used to complement the cash flows components of channel contract relationships thereby further reducing the risk adjusted cost of capital and improving shareholder value. In a field study of producers, wholesalers, and processors, in the potato and meat industry the framework shows how shareholder value can be enhanced by using financial facilitating services, such as derivatives, to complement marketing channel relationships. Moreover, this study shows how producers and managers from agribusiness companies can use such financial services as conflict-solving tools in case of incongruent contract preferences between channel members

The American Inventors Protection Act: A Natural Experiment on Innovation Disclosure and the Cost of Debt

We examine the impact of innovation disclosure through patenting on firms' cost of debt, focusing on the American Inventors Protection Act (AIPA) as an exogenous shock in innovation disclosure regulation. Post-AIPA, firms have an incentive to apply for patents only if commercial success is likely. Accordingly, we expect post-AIPA patents to be a better proxy for successful innovation activity, and thus to have a stronger effect on reducing the cost of debt than pre-AIPA patents. Indeed, we find that pre-AIPA patents reduce the cost of debt only for the most innovative firms, while post-AIPA, this effect holds for all firms