An evaluation of the accounting rate of return : evidence for Dutch quoted firms

Although the accounting rate of return (ARR) is traditionally regarded as an important profitability measure in ratio analysis, there has been relatively little theoretical and empirical analysis on its statistical properties and its intrinsic ability to explain market returns. This paper provides an empirical examination of the distributional properties and a time-series analysis of the ARR’s of listed Dutch companies for the years from 1978 to 1997. Furthermore we examine how the ARR is related to market return and risk. We investigate the distributional properties of the accounting rate of return. Our study confirms prior international research which concludes that ARR follows a non-normal distribution. Previous US and UK studies suggest that time series earnings or ARR can be characterized by a random walk or a mean-reverting process. The time series results of our sample are characterized by mean reversion. This paper extends the empirical research on ARR by deriving a panel data analysis that yields more reliable estimates. Researchers using US data found that the ARR was deficient as a representation of market returns and was not related to systematic risk. We find the opposite.

Economische waarde van gekochte goodwill

Economische waardering van gekochte goodwil

Valorisation of lignin – Achievements of the LignoValue project

Lignocellulosic biorefinery for production of biofuels, materials and chemicals requires valorization of all fractions including lignin. As a consequence of its poly-aromatic structure, lignin potentially serves as a source for aromatic chemicals. The developed biorefinery concept of the LignoValue project comprises two major steps: (1) Organosolv fractionation of wheat straw and willow into (hemi)cellulose and high purity lignin. (2) Further conversion of the isolated lignin via catalytic pyrolysis, supercritical depolymerization and partial hydrodeoxygenation (HDO) into different components like low molecular phenolic compounds, wood adhesives and fuel additives. The cellulose fraction resulting after organosolv fractionation is effectively hydrolysed by enzymes for biofuel production. Quality assessment of the liberated lignins shows interesting characteristics for follow-up chemistry such as high purity, relatively low molar mass and polydispersity. Catalytic pyrolysis in a fluidised bed at 400-500°C was found to convert organosolv lignin in 35-55% phenolic oil, 10% identified monomeric phenolic compounds, 10-20% water, 5-20% gas and 35-55% char. Supercritical depolymerisation of lignin in carbon dioxide based solvents resulted in a similar spectrum of products, however, at a lower temperature (ca 300°C) but at higher pressures. In both thermochemical processes the use of promotors or catalysts lead to an improved yield of the target monomeric aromatic products. Also the residual char fraction shows interesting properties for use in bio-char applications. Catalytic semi-continuous HDO of lignin in hydrogen atmosphere can be manipulated to yield both light oils or heavy oils as potential additives to fuels. Suitable catalysts were found to convert depolymerised lignin to phenolic oils in high yields. In this process no char formation is observed. The lignin oils were successfully tested on lab scale as partial substitution of phenol in resins for gluing wood panels. The LignoValue concept is critically reviewed in a techno-economic analysis demonstrating the potential for further commercial development and adoptation of this innovative biorefinery process in Europe

Why do firms go public?

Ambitious chief executives considering the possibility of floating their company on a major stock exchange should be careful what they wish for. They need to be sure that they are making the decision for the right reasons, at the right time, and that the initial public offering (IPO) is made in the right location

Managing Load to Optimize Well-Being and Recovery During Short-Term Match Congestion in Elite Basketball

In elite basketball, players are exposed to intensified competition periods when participating in both national and international competitions. How coaches manage training between matches and in reference to match scheduling for a full season is not yet known. PURPOSE: First, to compare load during short-term match congestion (ie, ≥2-match weeks) with regular competition (ie, 1-match weeks) in elite male professional basketball players. Second, to determine changes in well-being, recovery, neuromuscular performance, and injuries and illnesses between short-term match congestion and regular competition. METHODS: Sixteen basketball players (age 24.8 [2.0] y, height 195.8 [7.5] cm, weight 94.8 [14.0] kg, body fat 11.9% [5.0%], VO2max 51.9 [5.3] mL·kg-1·min-1) were monitored during a full season. Session rating of perceived exertion (s-RPE) was obtained, and load was calculated (s-RPE × duration) for each training session or match. Perceived well-being (fatigue, sleep quality, general muscle soreness, stress levels, and mood) and total quality of recovery were assessed each training day. Countermovement jump height was measured, and a list of injuries and illnesses was collected weekly using the adapted Oslo Sports Trauma Research Center Questionnaire on Health Problems. RESULTS: Total load (training sessions and matches; P < .001) and training load (P < .001) were significantly lower for ≥2-match weeks. Significantly higher well-being (P = .01) and less fatigue (P = .001) were found during ≥2-match weeks compared with 1-match weeks. CONCLUSION: Total load and training load were lower during short-term match congestion compared with regular competition. Furthermore, better well-being and less fatigue were demonstrated within short-term match congestion. This might indicate that coaches tend to overcompensate training load in intensified competition