In corporate takeovers, firm specific equity holdings of target and acquirer managers provide two different incentives that may affect the takeover wealth effects for firms’ shareholders. First, managers stand to share the benefit from the takeover wealth gains via any increase in the value of their firm-specific equity portfolio which induces them to undertake value-maximizing investment decisions.
Second, they can use the takeover transaction as an opportunity to obtain liquidity (target managers) or increase the diversification level of the firm (acquirer managers) to reduce or eliminate the risk of holding an undiversified firm-specific equity portfolio. In pursuit of liquidity or portfolio diversification, managers may take acquisition decisions at the expense of firms’ shareholders. Prior research has examined this issue largely from the standpoint of effectiveness of equity-based compensation in corporate takeovers. In this study, I extend the extant literature and identify two competing hypotheses that potentially explain the effect of target and acquirer CEOs’ equity incentives on takeover wealth gains.
Recent research shows that the average American loses muscle tissue and replaces it with fat after age 20. Even individuals who are able to maintain their same weight as they age, gain fat and lose muscle. This decline in body composition does not have to occur as we grow older. For individuals who exercise regularly and follow a well balanced healthy diet, muscle to fat ratio may remain constant throughout their lifetime. It is even possible with a change in lifestyle habits to regain lost muscle tissue and correct the balance between lean body mass, fat, and overall weight. As excess body fat has been associated with increased probabilities for heart disease, high blood pressure, high cholesterol, diabetes, stroke, and some cancers it is important to measure lost body fat when following The Enzyme Diet.Your scale is not the best measure of whether or not you are medically overweight. This is because body composition or the percentage of lean body mass to fat is different for every individual. Lean body mass is defined as your bones, muscle, connective tissue, and organs.
Body fat percentage is the difference between your total weight and your lean body weight and can be calculated by directly measuring your body fat.Although more accurate than a scale, Body Mass Index (BMI) is also simply a correlation between height and weight. Just like a scale, BMI can not distinguish between people who are overweight because of excess fat and those who may be heavier because of bigger muscles and larger bones.Using a measuring tape and performing the recommended weekly measurements will give you a more precise assessment of your weight loss and as an indication of overall health, the waist to hip ratio remains important. However, losing inches is not always beneficial especially if you are not exercising and/or not eating enough protein.
The question of whether advertising acts as a barrier to entry has been a subject of ongoing controversy in the industrial organization literature. Advertising might disseminate information, thereby increasing market size, and help consumers make rational choices. On the other hand, advertising might merely persuade consumers of product differentiation where none exists. The second type of advertising could act as a barrier to entry. Such a barrier to entry might be profitable to construct if the incumbent has a long period of legal monopoly with a specific date when entry is permitted, as a patented product does in the pharmaceutical industry. Previous work on entry deterrence in the pharmaceutical industry has included advertising to physicians as an explanatory variable in a generic firm’s entry decision. However, the brand’s advertising choice is endogenous in this context, because both advertising before patent expiration and generic entry depend on expected profits in the post-entry period; and hence, both advertising and entry will be affected by the same forces and the same random errors. This paper analyzes the entry decision more carefully by instrumenting for endogenous, pre-expiration, brand advertising. I conclude that brand advertising is not a barrier to entry by generic firms.
