Can Auditors Mitigate Information Asymmetry in M&As? An Empirical Analysis of the Method of Payment in Belgian Transactions

SUMMARY In this paper, we empirically examine the relationship between the external financial statement audit and the method of payment across a sample of Belgian mergers and acquisitions between listed and private firms over the period 1997–2009. We investigate whether a Big N audit (at the target level) reduces the need for a contingent payment resulting from information asymmetry about the target's value. In addition, we analyze whether a Big N audit (at the bidder level) limits incentives for bidders to exploit private information about their own value. Using multivariate ordered probit and binary regression models, we determine that contingent payments are less common when the target is audited by a Big N auditor after controlling for several other deal and firm characteristics. Furthermore, we find that the incentive to use stock payments in periods of stock market overvaluation is lower for acquirers with a Big N auditor. Finally, target shareholders are more likely to accept a contingent offer if the acquirer's financial statements are certified by a Big N auditor. JEL Classifications: G34; M4.</jats:p

Financial statement filing lags: An empirical analysis among small firms

This article examines financial statement filing lags among a sample of Belgian small firms. Our results indicate that around one-third of small firm financial statements are filed late (after the legal deadline), but that monetary sanctions could be an effective tool to encourage compliance with legal deadlines. Whereas the deadline and late filing sanctions are filing incentives, various factors, such as firm size and presence of an external financial statement audit, also affect financial statement filing lags. Evidence indicated that extremely late filings were associated with lower financial statement quality. </jats:p

Environmental performance of industrial companies, sites, installations and production processes

A set of 10 environmental impact indicators is proposed for the evaluation the environmental impact of industrial installations and processes or industrial companies and sites: global warming, destruction of the ozone layer (ozone depletion), acidification, photochemical ozone creation, human toxicity, ecotoxicity, eutrophication, resource consumption (abiotic depletion), water consumption and waste production. These are »weighed« indicators: the individual emissions or discharges of components contributing to a certain theme are multiplied with a weighing factor and aggregated. Eco-efficiency indicators are calculated by dividing the »weighed« indicators by a value related to production. These relative indicators make it possible to quantify the evolution of the environmental performance for a process, company or industrial site and to evaluate which component(s) contribute(s) most to a given theme, thus allowing to set priorities for lowering the environmental impact. Examples illustrate the proposed method. Attention is also given to the emission of persistent organic pollutants (POPs) during the incineration of waste, trying to answer the question: are waste incinerators sinks or sources of POPs? It is shown that for non-carcinogenic effects of POPs, according to the incineration scenario, the weighed input/output ranges from 0.3 to 20,500 when considering the POPs in flue gases and solid residues

Terms and Characteristics of Homogeneous Ignition of Coal-Water Particles Coated with a Water Film

The problem of coal-water fuel ignition of particles in a high-temperature heating has been solved numericallyin the framework of a two-layer model of "coal-water". The basic characteristics of the integrated ignition has been shown. The influence of the vaporization process of the water film on the ignition conditions has been shown

Disposición de colas en aguas profundas (DCAP) como alternativa para la gestión de residuales en la industria minera

The article aims to clarify how the deep sea tailings depositions have been used worldwide as alternative mining practice. The paper is a checking of case studies where this technology is used. The available information sources were consulted, which included: case reports, scientific papers, theses and reports by proper authorities. It is achieved to expose the fundamental principles of operation and environmental impact of this technology in the marine environment by applying empirical methods and theoretical research, as well as an assessment of main cases in the world

Legal situation and current practice of waste incineration bottom ash utilisation in Europe

Almost 500 municipal solid waste incineration plants in the EU, Norway, and Switzerland generate about 17.6 Mt/a of incinerator bottom ash (IBA). IBA contains minerals and metals. Metals are mostly separated and sold to the scrap market and minerals are either disposed of in landfills or utilised in the construction sector. Since there is no uniform regulation for IBA utilisation at EU level, countries developed own rules with varying requirements for utilisation. As a result from a cooperation network between European experts an up-to-date overview of documents regulating IBA utilisation is presented. Furthermore, this work highlights the different requirements that have to be considered. Overall, 51 different parameters for the total content and 36 different parameters for the emission by leaching are defined. An analysis of the defined parameter reveals that leaching parameters are significantly more to be considered compared to total content parameters. In order to assess the leaching behaviour nine different leaching tests, including batch tests, up-flow percolation tests and one diffusion test (monolithic materials) are in place. A further discussion of leaching parameters showed that certain countries took over limit values initially defined for landfills for inert waste and adopted them for IBA utilisation. The overall utilisation rate of IBA in construction works is approximately 54 wt.%. It is revealed that the rate of utilisation does not necessarily depend on how well regulated IBA utilisation is, but rather seems to be a result of political commitment for IBA recycling and economically interesting circumstances

Automobile shredder residues in Italy: characterization and valorization opportunities

At the moment Automobile Shredder Residue (ASR) is usually landfilled worldwide, but European draft Directive 2000/53/CE forces the development of alternative solutions, stating the 95%-wt recovery of an End of Life Vehicle (ELV) weight to be fulfilled by 2015. This work describes two industrial tests, each involving 250-300 t of ELVs, in which different pre-shredding operations were performed. The produced ASR materials underwent an extended characterization and some post-shredding processes, consisting of dimensional, magnetic, electrostatic and densimetric separation phases, were tested on laboratory scale, having as main purpose the enhancement of ASR recovery/recycling and the minimization of the landfilled fraction. The gathered results show that accurate depollution and dismantling operations are mandatory to obtain a high quality ASR material which may be recycled/recovered and partially landfilled according to the actual European Union regulations, with particular concern for Lower Heating Value (LHV), heavy metals content and Dissolved Organic Carbon (DOC) as critical parameters. Moreover post-shredding technical solutions foreseeing minimum economic and engineering efforts, therefore realizable in common European ELVs shredding plants, may lead to multi-purposed (material recovery and thermal valorization) opportunities for ASR reuse/recovery

The deep sea tailings placement (DSTP) as alternative for the residuals management in the mining industry

The article aims to clarify how the deep sea tailings depositions have been used worldwide as alternative mining practice. The paper is a checking of case studies where this technology is used. The available information sources were consulted, which included: case reports, scientific papers, theses and reports by proper authorities. It is achieved to expose the fundamental principles of operation and environmental impact of this technology in the marine environment by applying empirical methods and theoretical research, as well as an assessment of main cases in the world