Takeover deterrent effect of on-market share buyback

This study examines whether Australian firms use on-market share buybacks to deter unwanted takeover risk from the stock market. We found a statistically significant and positive relation between a firm’s ex-ante takeover probability and its on-market share buyback activities. The result is robust to alternative modelling techniques, namely TOBIT and Censored Quantile Regressions. This could be partly explained by Brown and O’day (2007) hypothesis on dividend payout, that in a non-classical taxation system like Australia, yield of share buyback is positively related to dividend payments. However on-market share buyback activity is closely related to temporary cash flows rather than permanent operating cash flows. This might indicate that besides dividend payments, Australian firms might take advantage of the financial flexibility of share buybacks to redistribute non-permanent cash flows to their shareholders.

Takeover deterrent effect of on-market share buyback in Australia

This study examines whether Australian firms use on-market share buybacks to deter unwanted takeover risk. We found a statistically significant and positive relationship between a firm’s ex-ante takeover probability and its on-market share buyback activities. Our result is robust to alternative modelling techniques, namely TOBIT and Censored Quantile Regressions. This paper found evidence that in a dividend imputation credit taxation system the yield of share buyback is positively related to dividend payments. However, on-market share buyback activity is closely related to temporary cash flows rather than to permanent operating cash flows. This might indicate that, besides dividend payments, Australian firms take advantage of the financial flexibility that comes with share buybacks to redistribute nonpermanent cash flows to their shareholders.

"There's no way in hell I would pull up" : Deterrent and other effects of vehicle impoundment laws for hooning

Traffic law enforcement is based on deterrence principles, whereby drivers control their behaviour in order to avoid an undesirable sanction. For “hooning”-related driving behaviours in Queensland, the driver’s vehicle can be impounded for 48 hours, 3 months, or permanently depending on the number of previous hooning offences. It is assumed that the threat of losing something of value, their vehicle, will discourage drivers from hooning. While official data shows that the rate of repeat offending is low, an in-depth understanding of the deterrent effects of these laws should involve qualitative research with targeted drivers. A sample of 22 drivers who reported engaging in hooning behaviours participated in focus group discussions about the vehicle impoundment laws as applied to hooning offences in Queensland. The findings suggested that deterrence theory alone cannot fully explain hooning behaviour, as participants reported hooning frequently, and intended to continue doing so, despite reporting that it is likely that they will be caught, and perceiving the vehicle impoundment laws to be extremely severe. The punishment avoidance aspect of deterrence theory appears important, as well as factors over and above legal issues, particularly social influences. A concerning finding was drivers’ willingness to flee from police in order to avoid losing their vehicle permanently for a third offence, despite acknowledging risks to their own safety and that of others. This paper discusses the study findings in terms of the implications for future research directions, enforcement practices and policy development for hooning and other traffic offences for which vehicle impoundment is applied.

On the allocation of a takeover purchase price under AASB1013

The purpose of this paper is to document and explain the allocation of takeover purchase price to identifiable intangible assets (IIAs), purchased goodwill, and/or target net tangible assets in an accounting environment unconstrained with respect to IIA accounting policy choice. Using a sample of Australian acquisitions during the unconstrained accounting environment from 1988 to 2004, we find the percentage allocation of purchase price to IIAs averaged 19.09%. The percentage allocation to IIAs is significantly positively related to return on assets and insignificantly related to leverage, contrary to opportunism. Efficiency suggests an explanation: profitable firms acquire and capitalise a higher percentage of IIAs in acquisitions. The target's investment opportunity set is significantly positively related to the percentage allocation to IIAs, consistent with information-signalling. The paper contributes to the accounting policy choice literature by showing how Australian firms make the one-off accounting policy choice in regards allocation of takeover purchase price (which is often a substantial dollar amount to) in an environment where accounting for IIAs was unconstrained.

Testing the efficacy of a chilli-tobacco rope fence as a deterrent against crop-raiding elephants

Chilli-based repellents have shown promise as deterrents against crop-raiding elephants in Africa. We experimented with ropes coated with chilli-based repellent as a cheap alternative to existing elephant cropraid deterrent methods in India. Three locations (Buxa Tiger Reserve, Wyanad Wildlife Sanctuary and Hosur Forest Division) representing varying rainfall regimes from high to low, and with histories of intense elephant-agriculture conflict, were selected for the experiments that were conducted over 2-3 months during the pre-harvest period of the kharif season in late 2006. Chilli and tobacco powder mixed with waste oil was applied to ropes strung around agricultural fields of 1.4-5.5 km perimeter and elephant approaches were monitored. Elephants breached the rope fences a few times at all three study sites. Female-led herds were far more deterred (practically 100% reduction) than were solitary males (c. 50%) by the chilli-tobacco rope. Efficacy of this method as a deterrent was significantly better in the low-rainfall regime relative to medium and high-rainfall regimes. The initial promising results present a case for more rigorous experimentation; these would help determine if the elephants avoiding the rope are responding physiologically to the chilli-tobacco smell or merely reacting cautiously to a novel substance in their environment.

Male Takeover and Infanticide in Nilgiri Langurs Semnopithecus johnii in the Western Ghats, India

Male takeover and infanticide are a widespread phenomenon among non-human primates, observed mostly in species with a relatively longer lactation in relation to gestation. In this study, we report for the first time an episode of male takeover and infanticide, and the rarely reported occurrence of an all-male band and female dispersal, in Nilgiri langurs, Semnopithecus johnii, in the Western Ghats, India. The new male was a member of an all-male band. After the takeover, the resident male and 3 juvenile males left the group and joined the all-male band. A female whose infant was killed was found missing after some days. There were significant changes in the patterns of social interactions among the resident group females soon after the male takeover, wherein the females spent less time on social interactions as compared to before and after the episode of takeover. The new male rarely interacted with the females soon after the takeover. We also observed that the resident group shifted its home range to a poorer quality habitat. (C) 2014 S. Karger AG, Basel

The repulsive and feeding-deterrent effects of electropositive metals on juvenile sandbar sharks (Carcharhinus plumbeus)

Reducing shark bycatch and depredation (i.e., damage caused by sharks to gear, bait, and desired fish species) in pelagic longline fisheries targeting tunas and swordfish is a priority. Electropositive metals (i.e., a mixture of the lanthanide elements lanthanum, cerium, neodymium, and praseodymium) have been shown to deter spiny dogfish (Squalus acanthias, primarily a coastal species) from attacking bait, presumably because of interactions with the electroreceptive system of this shark. We undertook to determine the possible effectiveness of electropositive metals for reducing the interactions of pelagic sharks with longline gear, using sandbar sharks (Carcharhinus plumbeus, family Carcharhinidae) as a model species. The presence of electropositive metal deterred feeding in groups of juvenile sandbar sharks and altered the swimming patterns of individuals in the absence of food motivation (these individuals generally avoided approaching electropositive metal closer than ~100 cm). The former effect was relatively short-lived however; primarily (we assume) because competition with other individuals increased feeding motivation. In field trials with bottom longline gear, electropositive metal placed within ~10 cm of the hooks reduced the catch of sandbar sharks by approximately two thirds, compared to the catch on hooks in the proximity of plastic pieces of similar dimensions. Electropositive metals therefore appear to have the potential to reduce shark interactions in pelagic longline fisheries, although the optimal mass, shape, composition, and distance to baited hooks remain to be determined.

Group takeover by a natal male howling monkey (Alouatta palliata) and associated disappearance and injuries of immatures

As part of a long-term study on howling monkey behavior and social dynamics, a known natal male was observed taking over his group from his putative sire. Due to the accidental death of one of the adult males, this natal male had matured in a one-male group and had never observed juvenile male emigration nor adult male immigration and associated behaviors. Nevertheless, the behaviors associated with the takeover were indistinguishable from those of an immigrant male, including disappearance of immatures, one of whom was found with extensive injuries. While it cannot be said that the natal male inherited these behaviors from his presumed father, it can be said that he exhibited species-typical behaviors associated with male takeover in the absence of observational learning. © 1994 Japan Monkey Centre.