Do private equity buyouts represent value for target shareholders? Premiums in the boom of the early 2000s

This study compares the takeover premiums for 55 private equity buyouts with 59 takeovers involving a public acquirer, from the US takeover market between 2004 and 2007. This investigation takes place amidst accusations of anti-competitive behavior against some of the most active private equity groups in the US. While controlling for several other factors that might affect the takeover premium, we find weak evidence that bid premiums are significantly lower for target firms undergoing a private equity takeover than those subject to takeovers by public companies. We also demonstrate that abnormal returns earned by targets around takeover announcements can be a biased and misleading proxy for takeover premium.

Firm-level exchange exposure in the Eurozone

Using a sample of 1,154 European firms from 11 countries, we show that firm-level exchange exposure for Eurozone and non-Eurozone European firms has increased since the advent of the euro, but this rise was smaller for Eurozone than non-Eurozone firms. The increase in firmspecific risk is offset by a substantial reduction in market-level exchange exposure in most Eurozone countries, so the advent of the Eurozone appears to have been associated with a shift in exchange risk from systematic to firm-specific. We also find that Eurozone firms’ exchange exposure is greater than that of non-Eurozone European firms, and univariate testing confirms the significance of this difference. In a multivariate setting, however, after controlling for countryspecific and firm-specific characteristics that potentially influence the extent of exposure – economic openness, governance factors, firm size, industry and several financial ratios – this difference is no longer apparent.foreign exchange exposure, euro, Eurozone, economic openness

Concordance in global office market cycles

A large proportion of international real estate investment is concentrated in the office markets of the world’s largest cities. However, many of these global cities are also key financial services centres, highlighting the possibility of reduced economic diversification from an investor’s perspective. This paper assesses the degree of synchronization in cycles across twenty of the world’s largest office markets, finding evidence of significant concordance across a large number of markets. The results highlight the problems associated with commonalities in the underlying economic bases of the markets. The concentration of investment also raises the possibility of common flow of funds effects that may further reduce diversification opportunities

The interaction of volatility, volume and skewness: empirical evidence from REITs

This paper considers how trading volume impacts upon the first three moments of REIT returns. Consistent with previous studies of the broader stock market, we find that volume is a significant factor with respect to both returns and volatility. We also find evidence supportive of the Hong & Stein’s (2003) Investor Heterogeneity Theory with respect to the finding that skewness in REIT index returns is significantly related to volume. Furthermore, we also report findings that show the influence of the variability of volume with skewness

A detailed analysis of the spatial distribution of Schöningen 13II-4 'Spear Horizon' faunal remains

The Middle Pleistocene Schöningen 13II-4 'Spear Horizon' (Germany) is a key site for the study of human evolution, most notably for the discovery of Paleolithic wooden weaponry and evidence for developed hunting strategies. On the other hand, the 'Spear Horizon' offers an excellent opportunity to approach hominin spatial behavior, thanks to the richness of the archeological assemblage, its exceptional preservation, and the vast expanse of the excavated surface. Analyzing how space was used is essential for understanding hominin behavior at this unique open-air site and, from a wider perspective, for approaching how humans adapted to interglacial environments. In this article, we present an exhaustive spatial study of the complete Schöningen 13II-4 'Spear Horizon' faunal assemblage and its archeological context, combining zooarcheology and spatial analysis through the extensive application of geographic information systems. Our results indicate the existence of different activity areas related to changes in the position of the shoreline due to fluctuations of water table levels of the Schöningen paleolake. These activity areas were likely used on a seasonal basis, whereas the spatial patterning observed in the distribution of faunal remains suggests a diversity of behavioral strategies in terms of intensity and/or duration of occupations. This study refines previous interpretations of the site and reconstructs human behavioral adaptations and the occupational changing lakeland environment during the Middle Pleistocene in Europe.This research is part of the ‘Hominin subsistence strategies during the Middle Pleistocene in Schoningen € ’ project, funded by the Deutsche Forschungsgemeinschaft (GA 683/9-1

Middle Pleistocene protein sequences from the rhinoceros genus Stephanorhinus and the phylogeny of extant and extinct Middle/Late Pleistocene Rhinocerotidae

Background: Ancient protein sequences are increasingly used to elucidate the phylogenetic relationships between extinct and extant mammalian taxa. Here, we apply these recent developments to Middle Pleistocene bone specimens of the rhinoceros genus Stephanorhinus. No biomolecular sequence data is currently available for this genus, leaving phylogenetic hypotheses on its evolutionary relationships to extant and extinct rhinoceroses untested. Furthermore, recent phylogenies based on Rhinocerotidae (partial or complete) mitochondrial DNA sequences differ in the placement of the Sumatran rhinoceros (Dicerorhinus sumatrensis). Therefore, studies utilising ancient protein sequences from Middle Pleistocene contexts have the potential to provide further insights into the phylogenetic relationships between extant and extinct species, including Stephanorhinus and Dicerorhinus. Methods: ZooMS screening (zooarchaeology by mass spectrometry) was performed on several Late and Middle Pleistocene specimens from the genus Stephanorhinus, subsequently followed by liquid chromatography-tandem mass spectrometry (LC-MS/MS) to obtain ancient protein sequences from a Middle Pleistocene Stephanorhinus specimen.We performed parallel analysis on a Late Pleistocene woolly rhinoceros specimen and extant species of rhinoceroses, resulting in the availability of protein sequence data for five extant species and two extinct genera. Phylogenetic analysis additionally included all extant Perissodactyla genera (Equus, Tapirus), and was conducted using Bayesian (MrBayes) and maximum-likelihood (RAxML) methods. Results: Various ancient proteins were identified in both the Middle and Late Pleistocene rhinoceros samples. Protein degradation and proteome complexity are consistent with an endogenous origin of the identified proteins. Phylogenetic analysis of informative proteins resolved the Perissodactyla phylogeny in agreement with previous studies in regards to the placement of the families Equidae, Tapiridae, and Rhinocerotidae. Stephanorhinus is shown to be most closely related to the genera Coelodonta and Dicerorhinus. The protein sequence data further places the Sumatran rhino in a clade together with the genus Rhinoceros, opposed to forming a clade with the black and white rhinoceros species. Discussion: The first biomolecular dataset available for Stephanorhinus places this genus together with the extinct genus Coelodonta and the extant genus Dicerorhinus. This is in agreement with morphological studies, although we are unable to resolve the order of divergence between these genera based on the protein sequences available. Our data supports the placement of the genus Dicerorhinus in a clade together with extant Rhinoceros species. Finally, the availability of protein sequence data for both extinct European rhinoceros genera allows future investigations into their geographic distribution and extinction chronologies.The project “Hominin subsistence strategies during the Middle Pleistocene in Scho¨ningen” is a co-operation between Monrepos Archaeological Research Centre and Museum for Human Behavioural Evolution (RGZM), Johannes Gutenberg-Universita¨t Mainz, and the Niedersa¨chsisches Landesamt fu¨r Denkmalpflege, supported by the Deutsche Forschungsgemeinschaft (GA 683/9-1). This research was supported financially by the Max Planck Society. The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript

West Virginia’s Response to the Rotten Truth about Oral Health

West Virginia University Extension Service has taken steps to increase the awareness and practices of good oral health. Significant barriers exist for optimal dental health and preventive care for youth in West Virginia. The 4-H Health Initiative strengthens community 4-H clubs through joint commitment to improve the Health “H,” club reliance on youth leadership, responsiveness to youth voices, and involvement of community health resources. These efforts bring oral health education and services to school-age youth. Evaluation data suggest that the model may impact oral health behaviors

Drivers of external equity funding in small high-tech ventures

Financing is one of the major issues affecting the success and survival of entrepreneurial ventures. Theory suggests that due to information asymmetry between owners and investors or lenders, there is a “pecking order” of financing preferences, whereby retained earnings is preferred to debt, and outside equity is seen as a last resort. In high-tech ventures, however, outside equity financing is more commonly used than debt, but the reasons for this are not yet well-understood. We develop hypotheses to examine this theory-practice gap, which we test using a sample of private high-tech firms of various ages. We find that the greater the owner’s perception of information asymmetries in debt markets, the larger the proportion of external equity in the firm’s capital structure. As our sample firms age, their use of external equity relative to other sources of finance diminishes. We also find a positive relationship between the use of external equity and the firm’s initial investment. Lastly, we show that the greater the perception amongst founders that obtaining external equity sends a positive signal, the greater its use. We discuss the implications of these findings and offer suggestion for future research and practice

Is there a high technology pecking order? An investigation of the capital structure of NTBFs in the Irish software sector

This paper examines the financing of 117 privately held new technology-based firms (NTBFs) in the Irish software product sector. We advance the high-technology pecking order hypothesis (HTPOH) to explain the dominance of external equity over debt in NTBFs. Using founders’ opinions and perceptions on various financing issues, we find evidence consistent with four implications of the HTPOH. Sample firm founders perceive low tax benefits of debt, and very high levels of business risk as reflected in pessimism about their likelihood of survival even with adequate financing. In addition, founders perceive greater information asymmetries in debt than in private equity markets. This finding is consistent with the spirit of Myers’ (1984) and Myers and Majluf’s (1984) pecking order hypothesis in that firms prefer sources of finance associated with the least information asymmetry. A related finding is that founders believe issuing equity sends a positive signal to clients, suppliers and financiers

What factors determine the use of venture capital? Evidence from the Irish software sector

We address the venture capital financing issue from the firm’s perspective. Using survey data for 110 new technology-based firms (NTBFs) in the Irish software sector, we assess the extent to which 5 human capital and 3 other variables determine the firm’s use of venture capital. Education of the lead founder to degree level is the only significant human capital variable, and it is directly related to the likelihood of being venture capital-backed. Venture capital-backed firms have significantly higher start-up costs, and their founders are less averse to loss of control than non-venture capital-backed firms. We conclude that the use of venture capital is dictated largely by the willingness of founders to relinquish control