Idle sunk cost capacity, entry, and profitability: an empirical study

Article Abstract:

The study looks into a significant prediction of credible commitment models whether idle sunk cost capacity can be utilized to enhance lasting profitability concentrating on the sunk cost segment of excess capacity instead of excess capacity. The study shows that lagged idle sunk cost capacity boost profitability as present capacity has an adverse effect on profitability. An approximation of industry-specified capital cost is also utilized as a substitute for sunk costs in intangible capital.

Pricing Policy, Production Planning & Control, Profit, Profits, Pricing, Industrial efficiency, Economic efficiency, Production control, Business losses

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Stock price reaction to international investment and divestiture and management of currency operating exposure

Article Abstract:

An analysis of stock price reactions on international investment reveals that foreign operation decisions have positive effects on stock prices but quantitative reactions vary. The effects on firm values, however, vary across industries, exchange rate changes and degree of previous exposure before the events. Moreover, the study shows that manufacturing firms benefit more from foreign investment than primary industries in terms of positive stock price reactions.

Research and Development in the Social Sciences and Humanities, Foreign Operations Analysis, Management Science, Foreign investments, Business expansion, International finance, Foreign operations (Business)

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Corporate control effects and managerial remuneration in commercial banking

Article Abstract:

The managerial perspective of the company hints that the high share diffusion and non-competitive product niches result to corporate governance frictions allowing executives to boost own-remuneration beyond competitive rates. On the other hand, the said scenarios could also create corporate control impacts by motivating stockholders to depend on alternate pay mechanisms on the margin such as bonus and profit-sharing payments in replacement of salary.

Wage Administration, Banking industry, Compensation and benefits, Corporate governance, Compensation management, Wages, Wages and salaries

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