Archiving Human Rights Documentation: The Promise of the Post-Custodial Approach in Latin America

Latin American Studie

Multilateral Agreement On Investments (MAI) - A Critical Assessment From an Industrial Economics Point of View

Though the Multilateral Agreement on Investment (MAI) has failed, the original draft is likely to serve as a basis for future negotiations. This article gives a critical assessment of the draft from an industrial economics point of view. First, I summarize the contents of the agreement which is relevant for market structure and competition. Then I develop the industrial economics approach, which serves as a basis for criticism. I conclude that a multilateral agreement on investment should (i) recognize competition concerns, (ii) give a suitable de.nition of investment, and (iii) should help to establish competition authorities in less developed countries.multilateral agreement on investment, multinational enterprizes, competition policy, regional competition, foreign direct investment

Lobbying Activities of Multinational Firms

This paper investigates if multinationals in.uence the political process through lobbying more effectively than national firms. First, I introduce a model which contrasts a multinational’s incentives for lobbying with those of a national firm. Then the effect of lobbying on the political decision is analyzed. I conclude that multinationals have smaller incentives to lobby because they have smaller stakes in national markets. But the effectiveness of lobbying by multinationals might be higher if the government cares much about production in the home country. The resulting regulation depends on the relative strength of these effects.multinational enterprizes, regulation, policy formation, lobbying, interest groups, foreign direct investment.

Passive solar reflector satellite revisited

Passive light weight reflectors in space which direct the incident solar energy to a specified location on the Earth surface are proposed as an alternative system for the solar power satellite to overcome conversion losses and to avoid the need for photovoltaic cells. On Earth, either photovoltaic cells or a steam turbine alternator on a solar tower, or a similar conventional, relatively high efficiency cycle are used for electricity generation. The constraints which apply to the design of the optical system if a single satellite is placed in geostationary orbit are outlined. A single lens and a two lens system are discussed

Does Diversification Destroy Value? Evidence From Industry Shocks

Does corporate diversification reduce shareholder value? Since firms endogenously choose to diversify, exogenous variation in diversification is necessary in order to draw inferences about the causal effect. We examine changes in the within-firm dispersion of industry investment, or diversity.' We find that exogenous changes in diversity, due to changes in industry investment, are negatively related to firm value. Thus diversification destroys value, consistent with the inefficient internal capital markets hypothesis. This finding is not caused by measurement error. We also find that exogenous changes in industry cash flow diversity are negative related to firm value.

The Diversification Discount: Cash Flows vs. Returns

Diversified firms have different values than comparable portfolios of single-segment firms. These value differences must be due to differences in either future cash flows or future returns. Expected security returns on diversified firms vary systematically with relative value. Discount firms have significantly higher subsequent returns than premium firms. Slightly more than half of the cross-sectional variation in excess values is due to variation in expected future cash flows, with the remainder due to variation in expected future returns and to covariation between cash flow and returns.

The Real Effects of Investor Sentiment

We study how stock market mispricing might influence individual firms' investment decisions. We find a positive relation between investment and a number of proxies for mispricing, controlling for investment opportunities and financial slack, suggesting that overpriced (underpriced) firms tend to overinvest (underinvest). Consistent with the predictions of our model, we find that investment is more sensitive to our mispricing proxies for firms with higher R&D intensity suggesting longer periods of information asymmetry and thus mispricing) or share turnover (suggesting that the firms' shareholders are short-term investors). We also find that firms with relatively high (low) investment subsequently have relatively low (high) stock returns, after controlling for investment opportunities and other characteristics linked to return predictability. These patterns are stronger for firms with higher R&D intensity or higher share turnover.