This paper presents an Ecological-Economic (Eco-Eco) modelling using the Intensity of Erosion and Outflow (IntErO) model for calculation of sediment yield and runoff assessing the impacts of different land covers on soil erosion intensity. Calculations have been made for the Velicka River basin, which is one of 57 sub-basins of the Lim River in the Northeast Montenegro. Several different land use scenarios were then simulated in the model in order to find the optimal scenario of land use for intensive seed potato production. The results of Ecological (Eco-) analysis shown that the real soil loss under current conditions is 18148 m³yr -1 . If seed potato production is introduced, the model calculated a soil loss of 20834 m³yr -1 as sediment yield. In order to balance the damage caused by the introduction of seed potato production we considered also the ecological measure of afforestation to reduce soil loss caused by seed potato production. The model calculated that afforestation would result in a decrease of sediment yield to 17886 m³yr -1 . The results of Economic (-Eco) analysis revealed that the investment of €3,385 per ha for the establishment of the seed potato production will provide the income for the farmers of €15,000 per hectare annually. In parallel, we proposed the investment for the protection of the area (258 ha) with afforestation that amounts to €330,608 (€1,281 per ha), for the period of two years, with no other costs in the next decade. The research results demonstrate that the application of the Eco-Eco modelling, by using the IntErO model for studying the effect of soil erosion and possible land use for intensive seed potato production in the Velicka River Basin provides cost effective solutions for the benefit of the local population.
PurposeThis paper aims to study characteristics of specified purpose acquisition companies (SPACs) and examine the performance of their securities over time.Design/methodology/approachPrevious findings in literature on SPACs' performance around the announcement of merger date are scarce, not uniform, and mostly address the performance of SPACs' common shares. The authors believe that more insights on merger announcements can be obtained if the perf]ormance of all three types of securities that SPACs issue during the IPO, namely units, common stocks, and warrants are analyzed simultaneously. In order to examine the behavior of these securities we form three samples with daily returns for three distinguished SPAC securities. Results are obtained for abnormal returns based on the market model from Brown and Warner.FindingsIt is found that SPACs represent a fairly unique way to raise capital. The incentives of their founders, underwriters, and investors are interdependent and successful business combinations generally result in significant returns to founders. The analysis shows that SPACs have a complex corporate structure in which the incentives of the founders, underwriters, and investors are interdependent and where successful mergers result in significant returns to the founders. It also shows that different SPAC securities do not exhibit similar reactions in response to announcements regarding their corporate status. While holders of all three securities realize positive abnormal returns on the merger announcement day, the strongest reaction is observed among the investors holding warrants, while common stock holders react very mildly.Originality/valueSPACs are recent phenomena in capital markets and very few papers in finance literature describe them. None of the existing papers evaluated performance of all three types of SPAC securities: units, common shares and warrants before this paper.
A Specified Purpose Acquisition Company (SPAC) is formed to purchase operating businesses within a priori determined time period. SPACs existed in U.S capital markets since the 1920s.Their corporate structure has recently become debated in the legal and financial literatures, especially their structural response to regulations by the Security and Exchange Commission (SEC) in the late 1990s. SPACs were traded on American Stock Exchange and Overt the Counter Bulletin Board. Since 2008, SPACs are listed on New York Stock Exchange and National Association of Securities Dealers Automated Quotations. This paper examines the determinants of the execution of mergers by SPACs.
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