Does Corporate Performance Improve After Mergers?

We examine the post-acquisition operating performance of merged firms using a sample of the 50 largest mergers between U.S. public industrial firms completed in the period 1979 to 1983. The results indicate that merged firms have significant improvement in asset productivity relative to their industries after the merger, leading to higher post-merger operating cash flow returns. Sample firms maintain their capital expenditure and R&D rates relative to their industries after the merger, indicating that merged firms do not reduce their long-term investments. There is a strong positive relation between postmerger increases in operating cash flows and abnormal stock returns at merger announcements, indicating that expectations of economic improvements underlie the equity revaluations of the merging firms.

Prediction Markets: Alternative Mechanisms for Complex Environments with Few Traders

Double auction prediction markets have proven successful in large-scale applications such as elections and sporting events. Consequently, several large corporations have adopted these markets for smaller-scale internal applications where information may be complex and the number of traders is small. Using laboratory experiments, we test the performance of the double auction in complex environments with few traders and compare it to three alternative mechanisms. When information is complex we find that an iterated poll (or Delphi method) outperforms the double auction mechanism. We present five behavioral observations that may explain why the poll performs better in these settings

Competition and Complementarity in Local Economic Development: A Nonlinear Dynamic Approach

Competition for local economic development has increased dramatically in the past 20 years. This competition is in many cases extremely costly to states and communities, while the benefits are uncertain. If regions whose economic fortunes are complementary could work with instead of against one another, costs of competition could be eliminated, while returns to economic development investments could be enhanced. This paper presents a method by which the underlying spatial economic relationships among areas within a region can be identified. Economic development policy can then be guided by the identification of the competitive or complementary links that exist among areas. The Dendrinos-Sonis (DS) model of relative social spatial dynamics is used to determine these relationships, in aggregate and on an industry-byindustry basis, in the Cincinnati metropolitan region. Sets of competitive and complementary region pairs are identified

The case for cloud service trustmarks and assurance-as-a-service

Cloud computing represents a significant economic opportunity for Europe. However, this growth is threatened by adoption barriers largely related to trust. This position paper examines trust and confidence issues in cloud computing and advances a case for addressing them through the implementation of a novel trustmark scheme for cloud service providers. The proposed trustmark would be both active and dynamic featuring multi-modal information about the performance of the underlying cloud service. The trustmarks would be informed by live performance data from the cloud service provider, or ideally an independent third-party accountability and assurance service that would communicate up-to-date information relating to service performance and dependability. By combining assurance measures with a remediation scheme, cloud service providers could both signal dependability to customers and the wider marketplace and provide customers, auditors and regulators with a mechanism for determining accountability in the event of failure or non-compliance. As a result, the trustmarks would convey to consumers of cloud services and other stakeholders that strong assurance and accountability measures are in place for the service in question and thereby address trust and confidence issues in cloud computing

Quantifying the sensitivity of simulated climate change to model configuration

Author Posting. © The Author(s), 2009. This is the author's version of the work. It is posted here by permission of Springer for personal use, not for redistribution. The definitive version was published in Climatic Change 3-4 (2009): 275-298, doi:10.1007/s10584-008-9494-x.This study used “factor separation” to quantify the sensitivity of simulated present and future surface temperatures and precipitation to alternative regional climate model physics components. The method enables a quantitative isolation of the effects of using each physical component as well as the combined effect of two or more components. Simulation results are presented from eight versions of the Mesoscale Modeling System Version 5 (MM5), one-way nested within one version of the Goddard Institute for Space Studies Atmosphere-Ocean Global Climate Model (GISS AOGCM). The MM5 simulations were made at 108 km grid spacing over the continental United States for five summers in the 1990s and 2050s. Results show that the choice of cumulus convection parameterization is the most important “factor” in the simulation of contemporary surface summer temperatures and precipitation over both the western and eastern United States. The choice of boundary layer scheme and radiation package also increases the range of model simulation results. Moreover, the alternative configurations give quite different results for surface temperature and precipitation in the 2050s. For example, simulated 2050s surface temperatures by the scheme with the coolest 1990s surface temperatures are comparable to 1990s temperatures produced by other schemes. The study analyzes the spatial distribution of 1990s to 2050s projected changes in the surface temperature for the eight MM5 versions. The predicted surface temperature change at a given grid point, averaged over all eight model configurations, is generally about twice the standard deviation of the eight predicted changes, indicating relative consensus among the different model projections. Factor separation analysis indicates that the choice of cumulus parameterization is the most important modeling factor amongst the three tested contributing to the computed 1990s to 2050s surface temperature change, although enhanced warming over many areas is also attributable to synergistic effects of changing all three model components. Simulated ensemble mean precipitation changes, however, are very small and generally smaller than the inter-model standard deviations. The MM5 versions therefore offer little consensus regarding 1990s to 2050s changes in precipitation rates.This research was supported by Grant R828733 from the U.S. Environmental Protection Agency's Science to Achieve Results (STAR) program, NSF Grant ATM-0652518, NASA Grant NNX07AI93G and the NASA Climate Variability and Climate Change Programs

Flexibility in the receptor-binding domain of the enzymatic colicin E9 is required for toxicity against Escherichia coli cells

The events that occur after the binding of the enzymatic E colicins to Escherichia coli BtuB receptors that lead to translocation of the cytotoxic domain into the periplasmic space and, ultimately, cell killing are poorly understood. It has been suggested that unfolding of the coiled-coil Mull receptor binding domain of the E colicins may be an essential step that leads to the loss of immunity protein from the colicin and immunity protein complex and then triggers the events of translocation. We introduced pairs of cysteine mutations into the receptor binding domain of colicin E9 (ColE9) that resulted in the formation of a disulfide bond located near the middle or the top of the R domain. After dithiothreitol reduction, the ColE9 protein with the mutations L359C and F412C (ColE9 L359C-F412C) and the ColE9 protein with the mutations Y324C and L447C (ColE9 Y324C-L447C) were slightly less active than equivalent concentrations of ColE9. On oxidation with diamide, no significant biological activity was seen with the ColE9 L359C-F412C and the ColE9 Y324C-L447C mutant proteins; however diamide had no effect on the activity of ColE9. The presence of a disulfide bond was confirmed in both of the oxidized, mutant proteins by matrix-assisted laser desorption ionization-time of flight mass spectrometry. The loss of biological activity of the disulfide-containing mutant proteins was not due to an indirect effect on the properties of the translocation or DNase domains of the mutant colicins. The data are consistent with a requirement for the flexibility of the coiled-coil R domain after binding to BtuB

A METHOD COMPARISON OF FORCE PLATFORM AND ACCELEROMETER MEASURES IN JUMPING

The purpose of this study was to compare force calculated using accelerometer data from the SHIMMER device, with force platform data on countermovement and drop jumps. Twelve physically active adults performed 5 counter movement jumps and 5 drop jumps from a height of 0.30 m. An accelerometer was attached near the participant’s centre of mass and simultaneous force and acceleration data were obtained for the jumps. Minimum eccentric force and peak concentric force were calculated concurrently for countermovement jumps and peak landing forces were calculated concurrently for drop jumps. The results showed moderate to poor levels of agreement in forces and a consistent systematic bias between the results from the force platform and accelerometer