Board Share-Ownership and Takeover Performance

We investigate the relation between takeover performance and board share-ownership in the acquiring company for a sample of 363 UK takeovers completed in the period 1985-96. In investigating this relationship we pay particular attention to the composition of board shareholdings as well as their size. Thus, in addition to the analysis of total board holdings, we analyse the separate impact of CEO shareholdings and of the pattern of non-executive and executive holdings within the board. In addition to our detailed examination of board holdings we assess the impact of non-board holdings. Our analysis controls for a number of non-shareholding constraints on discretionary director behaviour and for a variety of other influences on takeover outcomes including: the means of payment; acquirer size and market to book value; the relative size of the acquirer and the target; the nature of the bid in terms of hostility and industrial direction; and the pre-takeover performance of the acquiring company. We assess performance in terms of announcement returns, long run share returns and a portfolio of accounting measures. We find evidence that overall board ownership has a strong positive impact on long run share returns and a weak positive impact on operating performance. However, much stronger effects are found when the overall board measure is split into CEO, executive, and non-executive directors. We find strong evidence of a positive relation between takeover performance and CEO ownership, which holds for both long run returns and operating performance measures. This finding is robust to controlling for other factors that determine takeover performance and holds in a two stage least squares framework that controls for endogeneity effects. Shareholdings of other executive directors, non-executive directors, and non-board holdings are found to have no significant effect on takeover performance. Copyright Blackwell Publishers Ltd, 2006.

Tourism development in a difficult environment: a study of consumer attitudes, travel risk perceptions and the termination of demand

The tourism system is complex and tends to be adaptive to internal and external events, such that its development is subject to a myriad of forces, some planned some not, that can result in significant deviations from a desired development path. The events that can lead to a termination of demand are many and may be economic, environmental, health-related or political, with access eased or restricted, or the safety of tourists thrown into question. This paper presents the findings of research into the travel risk perceptions and attitudes of a sample of UK residents when considering travel to a group of selected countries in and around the Middle East region. The UK accounted for approximately 4.5 million arrivals per year in these countries during the period 2007 to 2009. The results are based on a sample of 394 respondents to a UK survey which ran from October 2010 to April 2011

Outbound Business Travel Depends on Business Returns: Australian Evidence

In an earlier note, Collins and Tisdell (2002b) explored the possibility of a long-run relationship between Australian business returns and international business travel. Using annual data they found that such a relationship exists. The purpose of this study is to further examine this relationship using quarterly data for the time frame 1974:1 to 1999:4. In addition, previous studies on international business travel have offered some but not strong evidence for the existence of a positive relationship between the level of international business travel and real GDP of the origin country. This study suggests that the aggregate return on business investments is a better predictor of international business travel than GDP. The Engle-Granger and Johansen's maximum-likelihood cointegration procedures are used to show a long-term relationship exists between Australian outbound business travel and Australian business returns, but not with Real Australian GDP. Reasons for this relationship are discussed. Copyright Blackwell Publishing Ltd/University of Adelaide and Flinders University of South Australia 2004.

The validation of a measure of organisational energy in the South African context

Orientation: Previous research has highlighted the need to examine the relationship between people and organisations. This perspective facilitates the study of organisational energy. Research purpose: The purpose of this research was to validate a measure of organisational energy in the South African context and to investigate whether there are differences in organisational energy as perceived by employees based on their demographic characteristics and lifestyle variables. Motivation for the study: Managing energy in organisations is important as it drives motivation, powers teamwork, fosters creativity and gives organisations a competitive edge (Schiuma, Mason & Kennerley, 2007). Limited empirical research currently exists on the phenomenon of energy in organisations. Research design/approach method: The researchers used a cross-sectional survey design, with a convenience sample (N = 520) of employees in a South African financial institution. The researchers administered the EnergyScapes Profile. Main findings: Exploratory factor analysis resulted in a one-factor structure for the EnergyScapes Profile. The scale, labelled organisational energy, showed acceptable internal consistency. The researchers found statistically significant differences in the organisational energy levels of employees based on age, tenure, geographical region, relaxation, hypertension and diabetes, depression or psychosis. Practical/managerial implications: The research provides valuable insight for practicing managers about understanding the concept of organisational energy and encourages leaders to question the energy of their employees. Contribution/value-add: The insight the researchers gained by studying the concept of organisational energy contributed in a unique way and showed the importance of considering organisations as dynamic and interactive with the people that work for them