The Valuation Impact of Financial Advisors: An Empirical Analysis of REIT Mergers and Acquisitions

This paper analyzes the effect of financial advisor-monitors on the valuation of real estate investment trust (REIT) mergers. Advisor choice determinants and the effect of advisors on transaction value are examined using a sample of REIT mergers for the 1981 to 2001 period. A two-stage target firm pricing model is estimated: the first stage (logit) estimates the probability of advisor use and the second stage analyzes the effect of advisors on target firm valuation. The results indicate that financial advisor monitoring, possibly by reducing information asymmetries, has significant positive effects on the value of REIT acquisitions.

Generalized empirical likelihood estimators and tests under partial weak and strong identification

The purpose of this paper is to describe the performance of generalized empirical likelihood (GEL) methods for time series instrumental variable models specified by nonlinear moment restrictions as in Stock and Wright (2000, Econometrica 68, 1055–1096) when identification may be weak. The paper makes two main contributions. First, we show that all GEL estimators are first-order equivalent under weak identification. The GEL estimator under weak identification is inconsistent and has a nonstandard asymptotic distribution. Second, the paper proposes new GEL test statistics, which have chi-square asymptotic null distributions independent of the strength or weakness of identification. Consequently, unlike those for Wald and likelihood ratio statistics, the size of tests formed from these statistics is not distorted by the strength or weakness of identification. Modified versions of the statistics are presented for tests of hypotheses on parameter subvectors when the parameters not under test are strongly identified. Monte Carlo results for the linear instrumental variable regression model suggest that tests based on these statistics have very good size properties even in the presence of conditional heteroskedasticity. The tests have competitive power properties, especially for thick-tailed or asymmetric error distributions

From videocassette to video stream: Issues involved in re‐purposing an existing educational video

Conventional video recordings can be converted into video streams but the process can be complex and problematic. The authors’ experience of re‐purposing an existing video, Back Care for Health Professionals, for streaming is used to illustrate what was involved and to highlight the important issues. Financial, legal, technical and pedagogic issues are examined

The Legal Environment and the Choice of Default Resolution Alternatives: An Empirical Analysis

In addition to standard foreclosure, three other methods of resolution for mortgage defaults are available: bankruptcy protection, surrender of deed to the lender, and pre-foreclosure sale. This paper develops a model that specifies the choice of resolution method as a function of the state-specific legal environment and local area economic conditions. A large national data set is used to estimate a multinomial logit choice model for the 1987 to 1991 period. The results indicate that the choice of default resolution alternative is sensitive to the legal environment. The results imply that selected legal reforms will tend to improve the efficiency of the default resolution process.

Feed industry financing and contract programs in Iowa and surrounding states

Contract farming (or vertical integration) has been discussed widely during the past few years. It has been the subject of many articles in farm I magazines, trade publications and professional I journals.3 Authors differ greatly as to their interpretation of contract farming and in their attitude toward it. Opinions differ and uncertainty persists concerning future developments and I trends in contract farming under midwestern conditions.https://lib.dr.iastate.edu/specialreports/1025/thumbnail.jp

Analysis of costs and benefits to feed manufacturers from financing and contract programs in the Midwest

Contract farming (or vertical integration) has been discussed widely during the past few years. It has been the subject of many articles in farm magazines, trade publications and professional journals.3 Authors differ.greatly in their interpretations of contract farming and in their attitudes toward it. Opinions differ, and uncertainty persists concerning future developments and trends in contract farming under midwestern conditions.https://lib.dr.iastate.edu/specialreports/1028/thumbnail.jp