Firm relocation and firm profits : Evidence from the Swedish wholesale trade sector

This study analyses the effects of firm relocation on firm profits, using longitudinal data on Swedish limtied liability firms and employing a difference-in-differnce propensity score method in the empirical analysis. Using propensity score matching, the pre-relocalization differneces between relocating and non-relocating firms are balanced. In addition to that, a difference-in-difference estimator is employed in order to control for all time-invariant unobserved heterogeneity among firms. For matching, nearest neighbour matching, using the one-, two- and three nearest neighbours is employed. The balanacing results indicate that matching achieves a good balance, and that similar relocating and non-relocating firms are being compared. The estimated average treatment on the treatment effects indicate thats relocations has a significant effect on the profits of the relocating firms. In other words, firms taht relocate increase their profits significantly, in comparison to what the profits would be had the firms not relocated. This effect is estimated to vary between 3 to 11 percentage points, depending on the lenght of the analysed period after relocation. 

An account of profits for a breach of contract (Attorney-General v Blake)

The House of Lords in Attorney-General v Blake addressed the controversial issue of whether a plaintiff who has suffered no loss as a result of the defendant’s breach of contract can nevertheless recover the profits the defendant obtained from the breach. Although the courts have traditionally been hostile to such claims, the House of Lords has ruled that, in exceptional cases, the defendant can be required to account to the plaintiff for the profits acquired from the breach of contract.

Intersection of ideals : journalism, profits, technology and convergence

Journalism needs advertising and advertising needs journalism: advertising pays for good reporting just as good reporting attracts customers for advertising. Problems arise when the equation becomes unbalanced, such as during the recessions in the early part of the twenty-first century. This paper asks the key question of whether editorial managers and journalists are embracing convergence at this time for business reasons or to do better journalism. It begins from the perspective that media organisations around the world are adopting various forms of convergence, and along the way embracing a range of business models. Several factors are influencing and driving the adoption of convergence - also known as multiple-platform publishing. Principal among them are the media's desire to reach as wide an audience as possible, consumers who want access to news in a variety of forms and times (news 24/7), and editorial managers' drive to cut costs. The availability of relatively cheap digital technology facilitates the convergence process. Many journalists believe that because that technology makes it relatively easy to convert and distribute any form of content into another, it is possible to produce new forms of storytelling and consequently do better journalism. This paper begins by defining convergence (as much as it is possible to do so) and describing the key competing models. It then considers the environments that lead to easy introduction of convergence, followed by the factors that hinder it. Examples of converged media around the world are provided, and suggestions offered on how to introduce convergence. The paper concludes that successful convergence satisfies the twin aims of good journalism and good business practices.

Better journalism or better profits? A key convergence issue in an age of concentrated ownership

Convergence has become an accepted form of journalism at media organisations around the world. These organisations are adopting a range of business models to find ways to pay for these innovations. The main drivers behind this radical change in media production are consumers' changing media habits, cheaper digital technology, and the disruptive forces that these two drivers generate. Technology also makes possible new forms of storytelling, which potentially allows journalists the chance to do better journalism through convergence. This article focuses on the key issue of whether editorial managers and journalists are embracing convergence to save money, or to do better journalism. It begins by defining convergence (while accepting the wide variety of definitions) and describing two main models of implementation. It then considers the factors that lead to easy introduction of convergence followed by the factors that hinder its introduction. Examples are provided of converged media around the world. This article ends with a warning about the dangers for democracy of misapplied convergence in an era of increasing concentration of ownership.

Unions and profits : a meta-regression analysis

The effect of unions on profits continues to be an unresolved theoretical and empirical issue. In this paper, clustered data analysis and hierarchical linear meta-regression models are applied to the population of forty-five econometric studies that report 532 estimates of the direct effect of unions on profits. Unions have a significant negative effect on profits in the United States, and this effect is larger when market-based measures of profits are used. Separate meta-regression analyses are used to identify the effects of market power and long-lived assets on profits, as well as the sources of union-profit effects. The accumulated evidence rejects market power as a source of union-profit effects. While the case is not yet proven, there is some evidence in support of the appropriation of quasi-rent hypothesis. There is a clear need for further American and non-American primary research in this area.

Momentum profits in Australian listed property trusts

This paper examines the profitability of momentum trading strategies in Australian listed property trusts (LPTs). Monthly value-weighted momentum portfolios are formed using the monthly excess returns of LPTs for the period from 1990 to 2005. Overall the findings confirm that a momentum trading strategy in Australian LPTs is a profitable strategy. More specifically, momentum strategies are profitable after adjusting for variance and downside risk where the momentum returns substantially outperform the benchmark. An analysis using different study periods confirm the findings about momentum. The practical implication from this study is that investors can generate substantial abnormal returns by adopting a momentum trading strategy, particularly with a long strategy (i.e. winner portfolios).

Pathology, power and profits...in paperback

Joel Bakan’s The Corporation is an accessible and engaging critique of the corporation written for a non-specialist, mass audience. It has been published in the UK to coincide with the release of the multi-award-winning documentary of the same name in UK cinemas.

Corporal punishment - archaic or reasonable discipline method?

The classic English case of Williams v Eady (1893) had, for over a century, supported a teacher acting in loco parentis when inflicting punishment on a child, so long as the punishment was reasonable and given in good faith. But in response to Article 3 of the European Convention on Human Rights ('ECHR '), which calls for all to respect a child's right not to be 'subject to torture or to inhumane or degrading treatment', many countries have banned the practice of using corporal punishment in schools. This might even include the use of reasonable force to prevent a Student from injuring others or causing damage to property if it is seen as a form of discipline or punishment. Schools, therefore, have a difficult task of striking a balance between providing a safe environment for the whole school community and a child's individual rights. This paper gives an overview of corporal punishment trends in the United States (US), Australia, New Zealand, England, Canada and Singapore, and then looks briefly at the jurisprudence of the courts on this issue. It then discusses the implications for employing or banning corporal punishment as a disciplinary strategy, and in particular whether corporal punishment, if carried out reasonably, could be considered a reasonable form of discipline, ensuring a safe and disciplined environment in which the school community, as a whole, might operate.

Directed search, coordination failure, and seller profits: an experimental comparison of posted pricing with single and multiple prices

We experimentally examine posted pricing and directed search. In one treatment, capacity-constrained sellers post fixed prices, which buyers observe before choosing whom to visit. In the other, firms post both “single-buyer” (applied when one buyer visits) and “multibuyer” (when multiple buyers visit) prices. We find, based on a 2 × 2 (two buyers and two sellers) market and a follow-up experiment with 3 and 2 × 3 markets, that multibuyer prices can be lower than single-buyer prices or prices in the one-price treatment. Also, allowing the multibuyer price does not affect seller profits and increases market frictions.

The High Court considers the meaning of “reasonable endeavours”: Electricity Generation Corp v Woodside Energy Ltd

The High Court in Electricity Generation Corp v Woodside Energy Ltd [2014] HCA 7 considered the contractual obligation to use reasonable endeavours. The court decided by a majority of four to one that various sellers of natural gas had complied with their obligation to use reasonable endeavours to supply gas to an electricity generator, despite not actually supplying the gas when the sellers had capacity to do so. The majority judgment provides some useful observations about the use of reasonable endeavours obligations and underscores the court's objective approach to construing commercial contracts.

The payment of dividends : legal confusion, complexities and the need for comprehensive reform

Submissions have closed on exposure draft legislation intending to amend thetest for payment of dividends under s 254T of the Corporations Act 2001 (Cth).Until 2010, a dividend could only be paid out of profits of a company. Sincethen, the dividends provision has been repealed and replaced with a newprovision, which allows a company to pay dividends if it satisfies an “assetsgreater than liabilities”, “fair and reasonable to shareholders” and “no materialprejudice to creditors” test. This article first examines why the profits test wasomitted from s 254T, before examining the current dividends provision,identifying the shortcomings of the 2010 reforms and critically evaluating theprovisions proposed to replace the current s 254T. The article then considersinternational developments, with a focus on New Zealand and a look at SouthAfrica, as examples of dividends tests in overseas jurisdictions, beforeproposing how to address the current confusion and uncertainty. The articleconcludes that the proposed amendments to s 254T will only partly addressexisting problems. Thus, comprehensive reform in this area of the Australiancorporation’s law is recommended.