Financial Slack and Bidding Firms’ Takeover Announcement Stock Returns – an Event Study

Despite the fact that the literature on mergers and acquisitions is extensive, relatively little effort has been made to examine the relationship between the acquiring firms’ financial slack and short-term post-takeover announcement abnormal stock returns. In this study, the case is made that the financial slack of a firm is not only an outcome of past business and financing activities but it also may affect the quality of acquisition decisions. We will hypothesize that the level of financial slack in a firm is negatively associated with the abnormal returns following acquisition announcements because slack reduces managerial discipline over the use of corporate funds and also because it may give rise to managerial self-serving behavior. In this study, financial slack is measured in terms of three financial statements ratios: leverage ratio, cash and equivalents to total assets ratio and free cash flow to total assets ratio. The data used in this paper is collected from two main sources. A list comprising 90 European acquisition announcements is retrieved from Thomson One Banker database. The stock price data and financial statements information for the respective firms is collected using Datastream. Our empirical analysis is two-fold. First, we conduct a two-sample t-test where we find that the most slack-rich firms experience lower abnormal returns than the most slack-poor firms in the event window [-1, +1], significant at 5% risk level. Second, we perform a cross sectional regression for sample firms using three financial statements ratios to explain cumulative abnormal returns (CAR). We find that leverage shows a statistically significant positive relationship with cumulative abnormal returns in event window [-1; +1] (significance 5%). Moreover, cash to total assets ratio showed a weak negative relationship with CAR (significant at 10%) in event window [-1; +1]. We conclude that our hypothesis for the inverse relationship between slack and abnormal returns receives empirical support. Based on the results of the event study we get empirical support for the hypothesis that the capital markets expect the acquisitions undertaken by slack-rich firms to more likely be driven by managerial self-serving behavior and hubris than do those undertaken by slackpoor firms, signaling possible agency problems and behavioral biases.

Activity of brainstem cholinergic neurons during 22 kHz ultrasonic vocalization in rats /

Adult rats emit 22 kHz ultrasonic alann calls in aversive situations. This type of call IS a component of defensive behaviour and it functions predominantly to warn conspecifics about predators. Production of these calls is dependent on the central cholinergic system. The laterodorsal tegmental nucleus (LDT) and pedunculopontine tegmental nucleus (PPT) contain largely cholinergic neurons, which create a continuous column in the brainstem. The LDT projects to structures in the forebrain, and it has been implicated in the initiation of 22 kHz alarm calls. It was hypothesized that release of acetylcholine from the ascending LDT terminals in mesencephalic and diencephalic areas initiates 22 kHz alarm vocalization. Therefore, the tegmental cholinergic neurons should be more active during emission of alarm calls. The aim of this study was to demonstrate increased activity of LDT cholinergic neurons during emission of 22 kHz calls induced by air puff stimuli. Immunohistochemical staining of the enzyme choline acetyltransferase identified cell bodies of cholinergic neurons, and c-Fos immunolabeling identified active cells. Double labeled cells were regarded as active cholinergic cells. There were significantly more (p

Immunohistochemical study of laterodorsal tegmental neurons active during 22kHz vocalization /

An ascending cholinergic projection, which originates in the laterodorsal tegmental nucleus (LDT), was implicated in the initiation of ultrasonic vocalization. The goal of this study was to histochemically examine the activity the LDT following ultrasonic calls induced by two methods. It was hypothesized that cholinergic LDT cells would be more active during air puffinduced vocalization than carbachol-induced one. Choline acetyltransferase (ChAT), and cFos protein were visualized histochemically as markers of cholinergic calls and cellular activity, respectively. Results indicated that animals vocalizing after carbachol, but not after air puff, had a significantly higher number of Fos labeled nuclei within the LDT than non vocalizing controls. A significantly higher number of doublelabeled neurons were discovered in the LDT of vocalizing animals (in both groups) as compared to control conditions. Thus, there were significantly more active cholinergic cells in the LDT of vocalizing than non-vocalizing rats for both methods of call induction.

The role of the GABAergic system in the production of ultrasonic vocalization in rats /

Ultrasonic vocalization plays an important role in intraspecies communication for rats. It has been well demonstrated that rats will emit 22kHz vocalization in stressfiil or threatening situations. Although the neural mechanism underlying vocahzation is not well understood, it is known that chohnergic input to the basal forebrain induces such alarm calls. A number of experiments have found that intracerebral injection of carbachol, a predominantly muscarinic agonist, into die anterior hypothalamic/preoptic area (AH/POA) rehably induces vocalization similar to naturally emitted ultrasonic calls. It has also been shown that carbachol has extensive inhibitory effects on neuronal firing in the same area. This result impUes that the inhibitory effects of carbachol in the AH/POA could trigger vocahzation, and that the GABAergic system could be involved. The purpose of this study is to investigate the effects ofGABA agonists and antagonists on flie production of carbachol induced 22kHz vocalization. The following hypotheses were examined: 1) apphcation ofGABA (a naturally occurring inhibitory neurotransmitter) will have a synergistic effect with carbachol, increasing vocalization; and 2) tiie apphcation ofGABA antagonists (picrotoxin or bicuculline) will reduce caibachol-induced vocalization. A total of sixty rats were implanted with stainless steel guide cannulae in the AH/POA area. After recovery, animals were locally pretreated with 1) GABA (l-40ng), 2) picrotoxin (1 .5^g) or bicuculhne (0.03ng), or 3) sahne; before injection with carbachol (1 .5^g). The resulting vocalization was measured and quantitated. The results indicate that pretreatment with GABA or GABA antagonists had no significant effect on vocalization. Local pretreatment with GABA did not potentiate the vocal response as measured by its duration, latraicy, and total number of calls. Similarly, pretreatment with picrotoxin or bicuculline had no effects on the same measures of vocalization. The results suggest tfiat chohnoceptive neurons involved in the production of alarm calls are not under direct GABAergic control.

Garden City Dye Works Moving Announcement

A moving advertisement for Garden City Dye Works, reads: We have removed from No. 70, St. Paul St. to No. 125 St. Paul St. Opp. the Grand Central Hotel, where we will be pleased to see our old and many new customers. Remember the place. In our new quarters we are better able to meet the requirements of the public in our line. We are up-to-date in all branches of Cleaning and Dying Ladies' and Gent's wearing apparel. Garden City Works, J.L. Wilbur. 125 St. Paul St. Phone 54. P.S. Also agents for Parisian Laundry Co.

The Feasibility of Using Vocalization Scoring as an Indicator of Poor Welfare During Cattle Slaughter

The article discusses the vocalization of cattle in six slaughter plants and the results indicate that "vocalization scoring could be used as a simple method for detecting welfare problems that need to be corrected".

Announcement of Birth, Charles Woodruff Band

Announcement of the birth Charles Woodruff Band from Mr. and Mrs. Percy Carruthers Band of Hewlett, Long Island, Nov. 9, 1921.

Announcement of Birth of Margaret Elizabeth

Announcement of the birth of Margaret Elizabeth by Mr. and Mrs. P.C. Band, Toronto, June 6, 1924.