Share Repurchases as a Tool to Mislead Investors: Evidence From Earnings Quality and Stock Performance

Several studies find that share repurchases are associated with positive wealth effects, both in the shortand long-run. By the same token, the credibility of buyback announcements as quality signals, particularly those to be executed on the open market, has been questioned. In this paper, we consider whether a sub-set of repurchase programs are perhaps motivated by an intent to mislead the market. Although intentions are not observable, we indirectly accomplish this by separating firms by their earnings quality. Firms which aggressively employ discretionary accruals, particularly those which also show lagging stock price performance, exhibit traits which suggest that executives may have been under pressure to boost stock prices. In the short-term, these programs are effectual as the market does not appear to initially distinguish firms on the basis of earnings quality. Over longer horizons, firms with poor earnings quality suffer from poor operating performance and tend to repurchase relatively fewer shares. More importantly, unlike the positive return drift generally observed after a repurchase announcement, long-horizon stock performance for poor earnings quality firms is not significant. The evidence is consistent with the notion that in some cases, company executives may be using repurchase programs to manipulate market opinion. The fact that some buyback programs, ex-ante, may be manipulative in intent provides some insight into why market underreaction is often observed in the empirical literature. The evidence here provides some justification for investor skepticism when open market buyback programs are initially announced.published_or_final_versio

Adam Smith and Colonialism

In the context of debates about liberalism and colonialism, the arguments of Adam Smith have been taken as illustrative of an important line of anti-colonial liberal thought. The reading of Smith presented here challenges this interpretation. It argues that Smith’s opposition to colonial rule derived largely from its impact on the metropole, rather than on its impact on the conquered and colonised; that Smith recognised colonialism had brought ‘improvement’ in conquered territories and that Smith struggled to balance recognition of moral diversity with a universal moral framework and a commitment to a particular interpretation of progress through history. These arguments have a wider significance as they point towards some of the issues at stake in liberal anti-colonial arguments more generally

Acid monolayer functionalized iron oxide nanoparticles as catalysts for carbohydrate hydrolysis

Superparamagnetic iron oxide nanoparticles were functionalized with a quasi-monolayer of 11-sulfoundecanoic acid and 10-phosphono-1-decanesulfonic acid ligands to create separable solid acid catalysts. The ligands are bound through carboxylate or phosphonate bonds to the magnetite core. The ligand-core bonding surface is separated by a hydrocarbon linker from an outer surface with exposed sulfonic acid groups. The more tightly packed monolayer of the phosphonate ligand corresponded to a higher sulfonic acid loading by weight, a reduced agglomeration of particles, a greater tendency to remain suspended in solution in the presence of an external magnetic field, and a higher catalytic activity per sulfonic acid group. The particles were characterized by thermogravimetric analysis (TGA), transmission electron microscopy (TEM), potentiometric titration, diffuse reflectance infrared Fourier transform spectroscopy (DRIFTS), inductively coupled plasma optical emission spectrometry (ICP-OES), and dynamic light scattering (DLS). In sucrose catalysis reactions, the phosphonic–sulfonic nanoparticles (PSNPs) were seen to be incompletely recovered by an external magnetic field, while the carboxylic–sulfonic nanoparticles (CSNPs) showed a trend of increasing activity over the first four recycle runs. The activity of the acid-functionalized nanoparticles was compared to the traditional solid acid catalyst Amberlyst-15 for the hydrolysis of starch in aqueous solution. Catalytic activity for starch hydrolysis was in the order PSNPs > CSNPs > Amberlyst-15. Monolayer acid functionalization of iron oxides presents a novel strategy for the development of recyclable solid acid catalysts

Kinetic Theory of a Dilute Gas System under Steady Heat Conduction

The velocity distribution function of the steady-state Boltzmann equation for hard-core molecules in the presence of a temperature gradient has been obtained explicitly to second order in density and the temperature gradient. Some thermodynamical quantities are calculated from the velocity distribution function for hard-core molecules and compared with those for Maxwell molecules and the steady-state Bhatnagar-Gross-Krook(BGK) equation. We have found qualitative differences between hard-core molecules and Maxwell molecules in the thermodynamical quantities, and also confirmed that the steady-state BGK equation belongs to the same universality class as Maxwell molecules.Comment: 36 pages, 4 figures, 5 table

Balancing act : competition and cooperation in US Asia-Pacific regionalism

While the United States is an important Asia-Pacific actor, its engagement with the region is complex and often difficult. Not only must US regionalism balance the diverse requirements of an ambitious policy agenda, but also US policy norms and priorities often clash with those of other regional actors. This has important implications for the capacity of the United States to provide regional leadership. Recent years have seen growing policy convergence between the United States and other Asia-Pacific actors, particularly in economic terms, but US regionalism continues to feature competition alongside collaboration

Re-imagining the Borders of US Security after 9/11: Securitisation, Risk, and the Creation of the Department of Homeland Security

The articulation of international and transnational terrorism as a key issue in US security policy, as a result of the 9/11 attacks, has not only led to a policy rethink, it has also included a bureaucratic shift within the US, showing a re-thinking of the role of borders within US security policy. Drawing substantively on the 'securitisation' approach to security studies, the article analyses the discourse of US security in order to examine the founding of the Department of Homeland Security, noting that its mission provides a new way of conceptualising 'borders' for US national security. The securitisation of terrorism is, therefore, not only represented by marking terrorism as a security issue, it is also solidified in the organisation of security policy-making within the US state. As such, the impact of a 'war on terror' provides an important moment for analysing the re-articulation of what security is in the US, and, in theoretical terms, for reaffirming the importance of a relationship between the production of threat and the institutionalisation of threat response. © 2007 Taylor & Francis

Future challenges of occupational safety and health policy-making in the UK

Understanding the changing landscape of occupational safety and health (OSH) regulation and standards and its implications are of central importance for ensuring that OSH outcomes are not compromised and the needs of different types of organizations are met. It is also important for developing appropriate strategies to anticipate and deal with future challenges for OSH policy-making. This paper draws on findings from two qualitative studies with key OSH stakeholders in the UK that were conducted as part of a research programme funded the Institution of Occupational Safety & Health. The aim of the first study was to elicit the views of key stakeholders on changes in the current OSH landscape so as to understand the nature and implications of these changes. The second study explored stakeholder perspectives on how to secure the optimal OSH landscape in the UK by addressing key future challenges for OSH policy-making

Learning from your investors: can the geographical composition of institutional investors affect the chance of success in international M&A deals?

We produce new evidence on whether management which is keen to make foreign acquisitions can benefit from consultation with information-intensive institutional investors who have expertise in the target foreign markets. This research suggests that, in such instances, management should recognise the benefit of effective two-way communication before embarking on such costly strategies. Consistent with theoretical literature, we propose that this can be explained by the fact that complex valuation information is dispersed among many economic agents and management may only have limited access to such data. This research shows that the likelihood of both cross-border deal completion and medium-term cross-border deal success through time depends upon management learning from and getting the support of key institutional investors with regional (foreign) expertise. The theoretical information economics model presented by Dye and Sridhar in 2002 states that the information flow between management and capital markets should be viewed as two way. This study offers empirical evidence in support of their theory. This study offers insights into the positive effect of establishing a proactive investor relations programme for the recruitment of dedicated foreign institutional investors before embarking on cross-border M&A. The results indicate that management should closely monitor the share register and identify those investors who are transient and those who are, in contrast, dedicated. Attention then needs to be directed to establishing effective communication with the dedicated investors with regional expertise

Deep Theorizing in International Relations

This paper starts from the observation that, at a time when the popularity of grand theory is in decline among IR scholars, they do not agree on what they mean by theory. In fact, the celebration of theoretical pluralism is accompanied by the relative absence of a serious conversation about what ‘theory’ is, could, or should be. Taking the view that we need such a conversation, this puts forward the notion of ‘deep theorizing’. Countering both the shallow theorizing of modern scholarship that conflates theory with scientific method, and the postmodern view that abstract narratives must be deconstructed and rejected, it offers a reading of the parameters along which substantial theorizing proceeds. Specifically, it suggests that ‘deep theorizing’ is the conceptual effort of explaining (inter)action by developing a reading of drives/basic motivations and the ontology of its carrier through an account of the human condition, that is, a particular account of how the subject (the political actor) is positioned in social space and time. The paper illustrates the plausibility of this meta-theoretical angle in a discussion of realist, liberal and postcolonial schools of thought

The 'knowledge politics' of democratic peace theory

How do academic ideas influence US foreign policy, under what conditions and with what consequences? This article traces the rise, ‘securitisation’ and political consequences of democratic peace theory (DPT) in the United States by exploring the work of Doyle, Diamond and Fukuyama. Ideas influence US foreign policy under different circumstances, but are most likely to do either during and after crises when the policy environment permits ‘new thinking’, or when these ideas have been developed through state-connected elite knowledge networks, or when they are (or appear paradigmatically congenial to) foreign policymakers’ mindsets, or, finally, when they become institutionally-embedded. The appropriation of DPT by foreign policymakers has categorised the world into antagonistic blocs – democratic/non-democratic zones of peace/turmoil – as the corollary to a renewed American mission to make the world ‘safer’ through ‘democracy’ promotion. The roles of networked organic intellectuals – in universities and think tanks, for instance – were particularly important in elevating DPT from the academy to national security managers