THE JOURNAL OF FINANCE • VOL. LVI, NO. 6 • DEC. 2001 The Stock Market Valuation of Research and Development Expenditures LOUIS K. C. CHAN, JOSEF LAKONISHOK, and THEODORE SOUGIANNIS* ABSTRACT We examine whether stock prices fully value firms’ intangible assets, specifically research and development ~R&D!. Under current U.S. accounting standards, financial statements do not report intangible assets and R&D spending is expensed. Nonetheless, the average historical stock returns of firms doing R&D
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MICKEY GOES TO FRANCE: A CASE STUDY OF THE EURO DISNEYLAND NEGOTIATIONS Lauren A. Newell* In 1984, The Walt Disney Company (“Disney”) was riding the wave of success from its newest Resort,1 Tokyo Disney Resort (“Tokyo Disney”),2 which attracted 10 million guests3 in the first year alone,4 and its thoughts turned to further international expansion—this time, in Europe. After careful consideration of potential locations and preliminary negotiations with two European governments,5 Disney decided in
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MICKEY GOES TO FRANCE: A CASE STUDY OF THE EURO DISNEYLAND NEGOTIATIONS Lauren A. Newell* In 1984, The Walt Disney Company (“Disney”) was riding the wave of success from its newest Resort,1 Tokyo Disney Resort (“Tokyo Disney”),2 which attracted 10 million guests3 in the first year alone,4 and its thoughts turned to further international expansion—this time, in Europe. After careful consideration of potential locations and preliminary negotiations with two European governments,5 Disney decided in
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Factory Farming Abstract Factory farming is the mass production of pigs, chickens, turkeys, and cows to be slaughtered and made into food. Many activists and organizations have attempted to reduce the problem of factory farming, but it is still a long way from being fixed. Factory farms are used to produce everyday products like bacon, pork, steak, chicken nuggets, milk, cheese, etc. The cost of buying a burger at a local McDonalds is around one to three dollars
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plantation system. this refers to all the territories so that one way of defining the Caribbean is to identify those countries that experienced the rule of specific European countries. Thus the Caribbean may be defined as being broken up into the English, French, Dutch and Spanish speaking countries and territories. Political In the Caribbean at least three types of governmental systems are found. They include Independent States, Associated States and Colonial Dependencies. CHARACTERISTICS
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restaurant focuses on French fries, hot dogs, soft drinks, and hamburgers. Five Guys started in 1986 and with its headquarters in Lorton, Virginia. It has branches in more than 40 states in the US, as well as in six Canadian provinces. This paper aims to determine the business that Five Guys is in, run the rule on their primary competitors, perform the restaurant’s SWOT analysis, and finally give strategies for the hotel chain in the coming five years. 1. Business Case Five Guys began
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interest due to two factors: (1) a premium due to inflationary expectations (IP) and (2) a premium due to issuer and issue characteristic risks (RP). The nominal rate of interest for a security can be defined as r1 r* IP RP. For a 3-month U.S. Treasury bill, the nominal rate of interest can be stated as r1 r* IP. The default risk premium, RP, is assumed to be zero since the security is backed by the U.S. government; this security is commonly considered the risk-free asset. 2. The term structure of interest
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interest due to two factors: (1) a premium due to inflationary expectations (IP) and (2) a premium due to issuer and issue characteristic risks (RP). The nominal rate of interest for a security can be defined as r1 r* IP RP. For a 3-month U.S. Treasury bill, the nominal rate of interest can be stated as r1 r* IP. The default risk premium, RP, is assumed to be zero since the security is backed by the U.S. government; this security is commonly considered the risk-free asset. 2. The term structure of interest
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unskilled workers, the poorest. Just as the Industrial Revolution reduced in come inequalities within societies, it has increased them between societies, in a process recently labeled the Great Divergence.1 For example African countries, in certain case, would have been better never discover the industrial revolution, because they remained trap in the Malthusian Era creating an higher divergence between population, and driving down standards to subsistence. * Why did the Malthusian Trap persist
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S w 9B04C013 Ebrahim El Kalza prepared this case under the supervision of Professor James A. Erskine solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction
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