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We employ partial adjustment capital structure models to examine Mexican publicly traded firms’ capital structure adjustment behavior. In a partial adjustment model, a firm reverts its observed leverage towards target leverage and closes a proportion of the deviation from target within one year. The leverage speed of adjustment (SOA) depends on the trade-off between the costs and benefits of moving leverage towards target. The faster a firm can revert its leverage when shocked away from target, the higher the firm value. Our results show that Mexican firms’ SOA ranges from 13.8% to 17.4%, depending on three leverage proxies. Mexican firms revert their leverage towards target at a slower speed than firms in developed countries do, implying that Mexican firms operate sub-optimally longer than firms in developed countries. We also compare subsets of firms with characteristics that are expected to affect SOA. First, we find that financially unconstrained firms’ SOA is higher than the SOA of financially constrained firms. Second, for two out of the three leverage proxies, the SOA of over-levered firms is higher than that of under-levered firms. Third, farthest-away-from-target firms adjust faster toward target leverage than closest-to-target firms. Overall, our findings confirm the expected asymmetric SOA behavior of the subsets of companies examined. Finally, we examine the impact of states of the economy on firms’ capital structures. We find that leverage ratios of Mexican firms are counter-cyclical and that Mexican firms adjust leverage at faster speed during good economic states as measured by stock exchange market capitalization relative to country’s GDP, risk premium, and inflation.
Carlos Omar Trejo-Pech; NyoNyo A. Kyaw; Wei He. Capital structure adjustment behavior of listed firms on the Mexican stock exchange. Journal of Economics and Finance 2021, 1 -23.
AMA StyleCarlos Omar Trejo-Pech, NyoNyo A. Kyaw, Wei He. Capital structure adjustment behavior of listed firms on the Mexican stock exchange. Journal of Economics and Finance. 2021; ():1-23.
Chicago/Turabian StyleCarlos Omar Trejo-Pech; NyoNyo A. Kyaw; Wei He. 2021. "Capital structure adjustment behavior of listed firms on the Mexican stock exchange." Journal of Economics and Finance , no. : 1-23.
The authors present the results of a global survey of chartered financial analyst (CFA) university-affiliated programs (UAPs) on the nature of academic-professional collaboration between the CFA Institute and participant universities. The results demonstrate that the presence of CFAs on faculty is increasing in the amount of time of affiliation with the CFA Institute. The results also reveal that UAPs value implicit curriculum related benefits over explicit benefits that are geared toward supporting postgraduation student performance. The authors find that UAPs greatly value the administrative and promotional benefits provided by the CFA Institute, although additional marketing may increase their usage rates.
Terrance Grieb; Magdy Noguera; Carlos Trejo-Pech. The chartered financial analyst university affiliation program: Explicit and implicit benefits. Journal of Education for Business 2021, 1 -9.
AMA StyleTerrance Grieb, Magdy Noguera, Carlos Trejo-Pech. The chartered financial analyst university affiliation program: Explicit and implicit benefits. Journal of Education for Business. 2021; ():1-9.
Chicago/Turabian StyleTerrance Grieb; Magdy Noguera; Carlos Trejo-Pech. 2021. "The chartered financial analyst university affiliation program: Explicit and implicit benefits." Journal of Education for Business , no. : 1-9.
This study examines factors associated with journals’ violations of scholarly ethics, referred to as predatory practices. The investigation uses a sample of economics journals listed in Cabells’ Predatory Reports with data collected from this report and the journals’ websites. Journals in this sample (average age 6.6 years) committed, on average, 7.1 predatory practices (1.9 minor, 3.3 moderate, and 1.9 severe). Notably, 90.5% of journals had a website but only 53.4% made articles accessible. India (27%), U.S. and Canada (22.3%), Nigeria (16%), and China (8.1%) were the leading locations of predatory journals. By applying Poisson regression, we examine whether web presence, accessibility of articles, journal’s age, and journal’s region help explain the number and types of predatory practices. All these factors are statistically associated with the number of minor predatory practices followed by these journals. Further, a journal’s age and region relate to the number of both moderate and severe predatory practices, unambiguously signaling deceptive and unethical publishing practices. Economics journals from India (China) have more (less) predatory practices than other regions. The results suggest that as journals age, they tend to move across types of predatory practices, which may make journals appear less predatory.
Carlos O. Trejo-Pech; Sharon V. Thach; Jada M. Thompson; John Manley. Violations of Standard Practices by Predatory Economics Journals. Serials Review 2021, 47, 80 -89.
AMA StyleCarlos O. Trejo-Pech, Sharon V. Thach, Jada M. Thompson, John Manley. Violations of Standard Practices by Predatory Economics Journals. Serials Review. 2021; 47 (2):80-89.
Chicago/Turabian StyleCarlos O. Trejo-Pech; Sharon V. Thach; Jada M. Thompson; John Manley. 2021. "Violations of Standard Practices by Predatory Economics Journals." Serials Review 47, no. 2: 80-89.
This case concerns an analyst’s task to value Cal-Maine Foods, Inc., the largest and only publicly traded U.S. egg production firm. The case takes place in 2020, at the time of the Covid-19 pandemic. Historically volatile egg prices were even more volatile in April 2020, with a large spike in prices that led the state of Texas to sue the firm for price gouging. Added to this, Cal-Maine had an unexpectedly bad earnings report a few months earlier, and prior to that, the firm cut its dividend. How should the analyst incorporate these shocks – or should they be included at all? How can the analyst assess the risk of a company that has volatile revenues and costs and a widely varying beta? Which factors is the analysis most sensitive to? Was the market overvaluing Cal-Maine? Or, was there potential for investors to profit from investing in the firm?
Carlos Omar Trejo-Pech; Susan White. Cal-Maine Foods, Inc.: stock price estimation in the midst of pandemic. International Food and Agribusiness Management Review 2021, 1 -14.
AMA StyleCarlos Omar Trejo-Pech, Susan White. Cal-Maine Foods, Inc.: stock price estimation in the midst of pandemic. International Food and Agribusiness Management Review. 2021; ():1-14.
Chicago/Turabian StyleCarlos Omar Trejo-Pech; Susan White. 2021. "Cal-Maine Foods, Inc.: stock price estimation in the midst of pandemic." International Food and Agribusiness Management Review , no. : 1-14.
This study models the purchasing behavior of specialty coffee by 114 coffee shops across 15 cities in nine states in Mexico. Simple and multilevel mixed-effects logistic models are tested. Our models extend the framework used in prior research. We model the purchase of specialty coffee as a function of: (a) material attributes, (b) symbolic attributes, (c) coffee shop characteristics, (d) profile of the coffee shop’s owner, and (e) socio-economic variables of the cities where the coffee shops were located. Overall, our results are consistent with expectations developed from the coffee literature. That is, the likelihood of purchasing specialty coffee increases when: coffee’s aroma drives the purchase, coffee purchased is from the state of Oaxaca, the coffee shop has a value-added business model, the coffee shop is diversified selling both ground coffee and coffee drinks, the coffee shop owner’s knowledge on coffee supply chain activities is high, and the coffee shop is located in a city with a higher education index. In contrast, the likelihood of purchasing specialty coffee decreases when a coffee professional tastes the coffee before the purchase, when coffee shops are not given the opportunity to roast their own coffee, and in coffee shops located in larger cities. Overall, our research suggests that the specialty coffee niche in Mexico has some elements required for this segment to transition from a supply chain approach to a value-based supply chain approach. This might be particularly beneficial for smallholder coffee growers, who despite several constraints contribute to the sustainability of coffee supply chains.
Roselia Servín-Juárez; Carlos Trejo-Pech; Alma Pérez-Vásquez; Álvaro Reyes-Duarte. Specialty Coffee Shops in Mexico: Factors Influencing the Likelihood of Purchasing High-Quality Coffee. Sustainability 2021, 13, 3804 .
AMA StyleRoselia Servín-Juárez, Carlos Trejo-Pech, Alma Pérez-Vásquez, Álvaro Reyes-Duarte. Specialty Coffee Shops in Mexico: Factors Influencing the Likelihood of Purchasing High-Quality Coffee. Sustainability. 2021; 13 (7):3804.
Chicago/Turabian StyleRoselia Servín-Juárez; Carlos Trejo-Pech; Alma Pérez-Vásquez; Álvaro Reyes-Duarte. 2021. "Specialty Coffee Shops in Mexico: Factors Influencing the Likelihood of Purchasing High-Quality Coffee." Sustainability 13, no. 7: 3804.
This study compares profitability and risk of conventional and cage-free egg production in the United States. Evaluating cage-free production is particularly relevant given ongoing consumer driven changes and new cage-free legislation. Results show that while the Modified Internal Rate of Return (MIRR) for conventional production is above an estimated industry opportunity cost of capital, cage-free production’s MIRR does not fully satisfy investors’ expectations. The MIRR of cage-free investment, between 5.6% (deterministic model) and 8.0% (stochastic) per 15-month flock, is below the 9.4% opportunity cost of capital. In addition, the simulations show that there is a 90% probability of conventional production’s MIRR falling between 18.5 and 20.3% per 15-month flock, and cage-free egg production’s MIRR ranging from 6.8 to 9.4%. In order for cage-free to be as equally profitable as conventional production, cage-free egg prices at the farmer gate should be 74% over conventional egg prices. Such high cage-free egg prices are highly unlikely to occur given recent cage-free price premia and consumer willingness to pay estimates from recent research. This study provides a framework egg producers can use to evaluate the potential effects of changes in their portfolio of products (i.e. conventional and cage-free mix) as they accommodate production schedules in this evolving industry.
Carlos J.O. Trejo-Pech; Jada M. Thompson. Discounted cash flow valuation of conventional and cage-free production investments. International Food and Agribusiness Management Review 2021, 24, 197 -214.
AMA StyleCarlos J.O. Trejo-Pech, Jada M. Thompson. Discounted cash flow valuation of conventional and cage-free production investments. International Food and Agribusiness Management Review. 2021; 24 (2):197-214.
Chicago/Turabian StyleCarlos J.O. Trejo-Pech; Jada M. Thompson. 2021. "Discounted cash flow valuation of conventional and cage-free production investments." International Food and Agribusiness Management Review 24, no. 2: 197-214.
Purpose The purpose of this study is to estimate the amount of cash flow deficit, if any, needed to maintain the operating costs and service debt of a startup cow–calf enterprise. The study compares long-term profitability and risk between starting small and building a herd to full carrying capacity or by starting at desired herd capacity. Design/methodology/approach A dynamic cattle growth model was developed to capture expanding and maintaining the desired herd size. Discounted cash flow (DCF) models over a 15-year period were calculated to estimate net present value (NPV), modified internal rate of return (MIRR) and cash flow deficit to keep the business operating and service debt. Simulation analyses were conducted considering price and production risk. Findings Starting at the desired herd size was preferred, according to NPV/MIRR and cash flow deficit, but the differences were not substantial. Assuming the operation is liquidated at book values, there was a 36.3% probability of this enterprise having a zero or positive NPV. If the conservative terminal value assumption is relaxed up to feasible market values, the cow–calf enterprise is economically attractive at an estimated 2.4% opportunity cost of capital. However, the producer would experience a cash flow deficit during the first seven years, which was simulated to be $14,892 and $15,985 annual for both strategies. Originality/value Innovative methods used in this study include varying the annual opportunity cost of capital as a function of financing decisions, stochastic prices by cattle type and stochastic weaning weights that are a function of a dynamic cattle model.
Carlos J.O. Trejo-Pech; Jared Bruhin; Christopher N. Boyer; S. Aaron Smith. Profitability, risk and cash flow deficit for beginning cow–calf producers. Agricultural Finance Review 2021, ahead-of-p, 1 .
AMA StyleCarlos J.O. Trejo-Pech, Jared Bruhin, Christopher N. Boyer, S. Aaron Smith. Profitability, risk and cash flow deficit for beginning cow–calf producers. Agricultural Finance Review. 2021; ahead-of-p (ahead-of-p):1.
Chicago/Turabian StyleCarlos J.O. Trejo-Pech; Jared Bruhin; Christopher N. Boyer; S. Aaron Smith. 2021. "Profitability, risk and cash flow deficit for beginning cow–calf producers." Agricultural Finance Review ahead-of-p, no. ahead-of-p: 1.
The study examines financial and transaction characteristics that influence mergers and acquisitions (M&A) in U.S. agribusinesses. During the M&A private phase, we model the likelihood of firms becoming bidders or targets as a function of firms' past financial performance. During the M&A public phase, the likelihood of bidders becoming acquirers is modeled as a function of firms' past financial performance and M&A transaction characteristics. The results for the subset of bidders in the M&A private phase suggest that the likelihood of a firm becoming a bidder is positively correlated with the bidder's firm size 1 year before the M&A announcement. In contrast, the likelihood of a firm becoming a bidder is negatively associated with bidder's leverage, cash level, and very low market valuations. For the subset of targeted firms, the likelihood of firms being targeted is positively associated with the firm's leverage and negatively related with its profitability. Our results for the M&A public phase model show that firm experience in the M&A market is positively associated with the likelihood of acquisition completion. In addition, relative to nonhorizontal transactions, horizontal mergers tend to be more difficult to complete. [EconLit Citations: G34, M2].
Carlos J. O. Trejo‐Pech; Michael A. Gunderson; Dayton M. Lambert. Mergers and acquisitions in the U.S. agribusiness sector, 1990–2017. Agribusiness 2021, 1 .
AMA StyleCarlos J. O. Trejo‐Pech, Michael A. Gunderson, Dayton M. Lambert. Mergers and acquisitions in the U.S. agribusiness sector, 1990–2017. Agribusiness. 2021; ():1.
Chicago/Turabian StyleCarlos J. O. Trejo‐Pech; Michael A. Gunderson; Dayton M. Lambert. 2021. "Mergers and acquisitions in the U.S. agribusiness sector, 1990–2017." Agribusiness , no. : 1.
This is a review of four articles published in the JGSMS 2019 special issue on Marketing Management in International Contexts. All papers published in this special issue were peer-reviewed, with oversight from the authors of this document in the role of Guest Editors. Three articles examine aspects of digital communication influences on behavior and attitudes, while one studies consumer preferences in the context of differing cultural and technological backgrounds. Generational cohorts and cultural clusters are examined through these studies. Overall, the articles in this special issue contribute to our knowledge of how younger persons use and are shaped by the digital world they have been born into, but also to the persistence of underlying cultures.
Carlos Omar Trejo-Pech; Sharon Thach. A review of articles in the Journal of Global Scholars of Marketing Science (JGSMS) special issue on Marketing Management in International Contexts. Journal of Global Scholars of Marketing Science 2021, 31, 1 -9.
AMA StyleCarlos Omar Trejo-Pech, Sharon Thach. A review of articles in the Journal of Global Scholars of Marketing Science (JGSMS) special issue on Marketing Management in International Contexts. Journal of Global Scholars of Marketing Science. 2021; 31 (1):1-9.
Chicago/Turabian StyleCarlos Omar Trejo-Pech; Sharon Thach. 2021. "A review of articles in the Journal of Global Scholars of Marketing Science (JGSMS) special issue on Marketing Management in International Contexts." Journal of Global Scholars of Marketing Science 31, no. 1: 1-9.
The effect of the United States (US) sugar program on sugar-using firm profitability from 2000 to 2017 is examined using firm financial data and the relative US-to-world sugar price ratio. Return on assets and market-to-book ratio proxy for firm financial performance. The regression results provide statistical evidence that as the US sugar price increases relative to the world sugar price, sugar-using firm financial performance improves. This is likely a result of sugar-using firms passing higher sugar costs on to consumers. An ex post analysis indicates that the statistical tests have adequate power. Findings provide guidelines for future analyses investigating the relationship between the US sugar program and sugar-using firm financial performance.
Carlos J. O. Trejo-Pech; Karen L. Delong; Dayton M. Lambert; Vasileios Siokos. The impact of US sugar prices on the financial performance of US sugar-using firms. Agricultural and Food Economics 2020, 8, 1 -17.
AMA StyleCarlos J. O. Trejo-Pech, Karen L. Delong, Dayton M. Lambert, Vasileios Siokos. The impact of US sugar prices on the financial performance of US sugar-using firms. Agricultural and Food Economics. 2020; 8 (1):1-17.
Chicago/Turabian StyleCarlos J. O. Trejo-Pech; Karen L. Delong; Dayton M. Lambert; Vasileios Siokos. 2020. "The impact of US sugar prices on the financial performance of US sugar-using firms." Agricultural and Food Economics 8, no. 1: 1-17.
Purpose The purpose of this paper is to determine the stochastic net present value (NPV) of a model smallholder poultry operation in Rwanda under production and market uncertainty. Design/methodology/approach A discounted cash flow calculator was used to determine the NPV of operator investments and operating cash flows, including time, materials and capital. Broiler production data, market prices and variable input costs were collected from 125 smallholder operations in the Musanze District, Rwanda. These data were combined with a historical price index tracking the inflation rate of Rwanda’s currency. Policies including overstocking, technical support repayment scheduling, selling broilers at a spot market price, using marketing contracts and selling poultry manure were compared using non-parametric paired comparisons and stochastic dominance. Findings Risk-neutral and risk-averse producers would prefer overstocking, delaying repayment of technical support services and selling manure to status quo operational policy. No differences were observed between the option to sell birds at spot market prices or through contracts. Research limitations/implications This analysis demonstrates how individual managerial or an intervention in smallholder broiler production affects financial performance. Practical implications To mitigate risk associated with this novel enterprise, producers should consider overstocking birds. If local markets for manure were developed, the risks faced by new or beginning poultry operators could be mitigated. Originality/value A stochastic, discounted cash flow model calculator was used to determine the NPV and discounted payback period of operator investments and operating cash flows, including time, materials and capital.
Bartholemew Kenner; Dayton M. Lambert; Carlos Omar Trejo-Pech; Jada Thompson; Thomas Gill. Financial risks in Rwandan smallholder broiler production. Journal of Agribusiness in Developing and Emerging Economies 2019, 9, 569 -583.
AMA StyleBartholemew Kenner, Dayton M. Lambert, Carlos Omar Trejo-Pech, Jada Thompson, Thomas Gill. Financial risks in Rwandan smallholder broiler production. Journal of Agribusiness in Developing and Emerging Economies. 2019; 9 (5):569-583.
Chicago/Turabian StyleBartholemew Kenner; Dayton M. Lambert; Carlos Omar Trejo-Pech; Jada Thompson; Thomas Gill. 2019. "Financial risks in Rwandan smallholder broiler production." Journal of Agribusiness in Developing and Emerging Economies 9, no. 5: 569-583.
This study evaluates biorefinery bio-oil feedstock costs at the plant gate for a prospective field pennycress (Thlaspi arvense L.) to sustainable aviation fuel (SAF) supply chain. The biorefinery would supply SAF to the Nashville, Tennessee international airport. Supply chain activities include pennycress production, transporting oilseed to a crushing facility, processing of oilseed into bio-oil, and transporting bio-oil to the biorefinery. The analysis shows profit potential for economic agents in the prospective supply chain. Estimated breakeven cost (profit = 0) of growing, harvesting, and transporting oilseed to a crushing facility is 17.7 ¢ kg−1. A crushing facility can pay up to 23.8 ¢ kg−1 for pennycress oilseed during the first year of production and provide investors 12.5% annual rate of return. Therefore, a profit margin of up to 6.1 ¢ kg−1 is available for the crushing facility to induce prospective pennycress producers to supply oilseed for SAF production. However, the estimated profit margin was sensitive mainly to uncertain oilseed yields, changes in field production costs, and pennycress meal and bio-oil prices. A spatial biorefineries sitting model, the Biofuels Facility Location Analysis Modeling Endeavor, estimated that the least-cost supply chain configuration is to establish three crushing facilities located in Union City, Huntington, and Clarksville, TN, to supply bio-oil to the biorefinery, with the biorefinery sited in an industrial park about 24.14 km from the Nashville international airport aviation fuel storage. Estimated total costs of bio-oil at the biorefinery plant gate are between 83 and 109 ¢ kg−1 if crushing facility oilseed procurement costs are between 17.7 and 23.8 ¢ kg−1 for oilseed.
Carlos Omar Trejo-Pech; James A. Larson; Burton C. English; T. Edward Yu. Cost and Profitability Analysis of a Prospective Pennycress to Sustainable Aviation Fuel Supply Chain in Southern USA. Energies 2019, 12, 3055 .
AMA StyleCarlos Omar Trejo-Pech, James A. Larson, Burton C. English, T. Edward Yu. Cost and Profitability Analysis of a Prospective Pennycress to Sustainable Aviation Fuel Supply Chain in Southern USA. Energies. 2019; 12 (16):3055.
Chicago/Turabian StyleCarlos Omar Trejo-Pech; James A. Larson; Burton C. English; T. Edward Yu. 2019. "Cost and Profitability Analysis of a Prospective Pennycress to Sustainable Aviation Fuel Supply Chain in Southern USA." Energies 12, no. 16: 3055.
Purpose The purpose of this paper is to determine the impact of 2014–2015 highly pathogenic avian influenza (HPAI), the largest animal health emergency in US history to date, on agribusinesses’ market values. Design/methodology/approach Using the 2014–2015 HPAI outbreaks in US commercial poultry, event study analysis of meat processing and marketing companies is conducted to estimate the effects HPAI had on firm value and how these effects differed across meat marketing firms over distinct disease event dates. The analyses include an overall aggregate event study, chronological outbreak studies, and an analysis that separated firms specifically marketing poultry products from those marketing all other types of meat. Findings By tracing abnormal stock returns through the event dates, the results show heterogeneity of investors responses based on the nature of the event (i.e. backyard vs commercial flocks affected), timing of the event over the course of the entire HPAI outbreak, and if a firm marketed poultry products. Overall, negative abnormal returns, ranging from 2 to 4 percent of publicly traded meat processors’ equities, are predominant post-disease event. These negative effects are slightly higher, above 5 percent, for firms marketing poultry products. Originality/value This study is the first to analyze the effects of an HPAI outbreak on the market value of US agribusiness firms.
Jada M. Thompson; Carlos J.O. Trejo-Pech; Dustin L. Pendell. Agribusiness value impacts from highly pathogenic avian influenza. Agricultural Finance Review 2019, 79, 371 -385.
AMA StyleJada M. Thompson, Carlos J.O. Trejo-Pech, Dustin L. Pendell. Agribusiness value impacts from highly pathogenic avian influenza. Agricultural Finance Review. 2019; 79 (3):371-385.
Chicago/Turabian StyleJada M. Thompson; Carlos J.O. Trejo-Pech; Dustin L. Pendell. 2019. "Agribusiness value impacts from highly pathogenic avian influenza." Agricultural Finance Review 79, no. 3: 371-385.
ConAgra Foods purchased Ralcorp, a generic brands packaged foods manufacturer, in January 2013. This purchase made ConAgra the largest private-brand packaged foods company in North America. The purchase was part of the firm’s acquisition strategy, its ‘recipe for growth’ launched in 2012. Instead of moving ConAgra forward, the purchase almost brought ConAgra into bankruptcy. ConAgra had difficulties integrating Ralcorp and the trend for private label (vs. brand name) products declined shortly after Ralcorp’s acquisition. This turn of events was made far worse because ConAgra had borrowed a large amount of debt to make the acquisition. Now, almost three years later in fall 2015 ConAgra had a new CEO, had faced reduced profitability and lower earnings per share and financial distress, and was under the pressure of an influential activist hedge fund advocating for the sale of the private brands segment. This case provides data to assess ConAgra’s situation financially and strategically, and to value the potential divestiture of the private brand business segment.
Susan White; Carlos Trejo-Pech; Magdy Noguera. ConAgra foods 2015 and the limits of debt: rewriting a recipe that just didn’t work. International Food and Agribusiness Management Review 2019, 22, 451 -463.
AMA StyleSusan White, Carlos Trejo-Pech, Magdy Noguera. ConAgra foods 2015 and the limits of debt: rewriting a recipe that just didn’t work. International Food and Agribusiness Management Review. 2019; 22 (3):451-463.
Chicago/Turabian StyleSusan White; Carlos Trejo-Pech; Magdy Noguera. 2019. "ConAgra foods 2015 and the limits of debt: rewriting a recipe that just didn’t work." International Food and Agribusiness Management Review 22, no. 3: 451-463.
Purpose The Mexican housing industry was hindered by a shrinking market and tighter financial conditions related to the Great Recession. Moreover, in 2013, a major change in public policy further modified this industry’s environment. Mexico’s new urban development policy supported inner-city new housing, in contrast to the previous policy that incentivized sprawling. Three out of eight publicly traded housing companies filed for bankruptcy protection in 2013-2014, arguably because of the effects of the Great Recession and the new housing policy. The purpose of this study is to identify firm-level factors that caused some firms to file for bankruptcy protection. Design/methodology/approach Three approaches were used to analyze the housing industry in Mexico from 2006 to 2015. First, a policy analysis focused on the new housing policy and its consequences for housebuilding companies. Second, a financial analysis of the two economic shocks was performed in search for the transmission mechanisms in the companies’ financial metrics. Third, a retrospective analysis using the Fisher’s exact test was used to identify variables statistically associated with companies filing for bankruptcy protection. Findings There are two features significantly associated with bankruptcy protection: increasing market share while being vertically integrated, as a response to the Great Recession, and the relative magnitude of the loss on firms’ inventory value due to the new public policy. Neither Altman’s Z-score values nor firm size or degree of integration are significantly related to bankruptcy. Research limitations/implications The small sample size presented a challenge, as most statistical methodologies require large samples; however, this was overcome by using the Fisher’s exact test. Originality/value The main contribution of this paper is the statistical identification of the possible causes for bankruptcy protection in Mexico amongst homebuilding firms in 2013 and 2014, which have not previously been reported in the literature.
Luis Raúl Rodríguez-Reyes; Carlos Omar Trejo-Pech; Mireya Pasillas. Public policy and its effects on Mexico’s housing industry. International Journal of Housing Markets and Analysis 2019, 12, 246 -264.
AMA StyleLuis Raúl Rodríguez-Reyes, Carlos Omar Trejo-Pech, Mireya Pasillas. Public policy and its effects on Mexico’s housing industry. International Journal of Housing Markets and Analysis. 2019; 12 (2):246-264.
Chicago/Turabian StyleLuis Raúl Rodríguez-Reyes; Carlos Omar Trejo-Pech; Mireya Pasillas. 2019. "Public policy and its effects on Mexico’s housing industry." International Journal of Housing Markets and Analysis 12, no. 2: 246-264.
In the fall of 2012, ConAgra Foods had the opportunity to become the largest private-label packaged food producer in North America. ConAgra was considering the purchase of Ralcorp, a large private brands manufacturer. This could be a strategic step for ConAgra, since the potential acquisition seemed aligned to the firm’s strategy for growth. Ralcorp, with revenue and assets representing about one third of ConAgra’s, was large enough to impact ConAgra’s business strategy and financial structure. This case study provides both firm level and private brands industry data to assess the potential acquisition. Ranges of implied stock prices could be estimated by using Discounted Cash Flow Valuation, Comparable Multiples, and Comparable Merger and Acquisitions Transaction analysis. A comparison of implied stock prices and actual stock price by the time of the case leads to the topic of control premium paid during acquisitions and to potential enterprise synergies.
Susan White; Carlos Trejo-Pech; Magdy Noguera. ConAgra Foods: valuing a potential recipe for success. International Food and Agribusiness Management Review 2018, 21, 595 -608.
AMA StyleSusan White, Carlos Trejo-Pech, Magdy Noguera. ConAgra Foods: valuing a potential recipe for success. International Food and Agribusiness Management Review. 2018; 21 (5):595-608.
Chicago/Turabian StyleSusan White; Carlos Trejo-Pech; Magdy Noguera. 2018. "ConAgra Foods: valuing a potential recipe for success." International Food and Agribusiness Management Review 21, no. 5: 595-608.
We study the factors influencing the percentage of organic and fair trade certified coffee sold through a cooperative by growers of five cooperatives in Mexico. The percentage of coffee sold through the cooperative was used as a proxy of growers’ engagement with a cooperative. Using factor analysis and a fractional probit regression, we evaluated the proposition that the level of engagement can be explained by transaction cost economics, social norms and connections, and farmer and farm business characteristics. We found that farm size, uncertainty regarding cooperative time of payment to the members and cooperative commitment on price to be paid negatively influence the level of engagement. In contrast, asset specificity, relational commitment, and price have a positive impact on engagement. Our results may help cooperatives and policy makers to build strategies aiming to increase this level of engagement. This is relevant because lower grower engagement has been found to be positively correlated with weak performing cooperatives.
J. Jaime Arana-Coronado; Carlos O. Trejo-Pech; Margarita Velandia; Jesús Peralta-Jimenez. Factors Influencing Organic and Fair Trade Coffee Growers Level of Engagement with Cooperatives: The Case of Coffee Farmers in Mexico. Journal of International Food & Agribusiness Marketing 2018, 31, 22 -51.
AMA StyleJ. Jaime Arana-Coronado, Carlos O. Trejo-Pech, Margarita Velandia, Jesús Peralta-Jimenez. Factors Influencing Organic and Fair Trade Coffee Growers Level of Engagement with Cooperatives: The Case of Coffee Farmers in Mexico. Journal of International Food & Agribusiness Marketing. 2018; 31 (1):22-51.
Chicago/Turabian StyleJ. Jaime Arana-Coronado; Carlos O. Trejo-Pech; Margarita Velandia; Jesús Peralta-Jimenez. 2018. "Factors Influencing Organic and Fair Trade Coffee Growers Level of Engagement with Cooperatives: The Case of Coffee Farmers in Mexico." Journal of International Food & Agribusiness Marketing 31, no. 1: 22-51.
This case study provides a thorough description of the U.S. orange juice industry, and focuses on Florida’s Natural, a cooperative of citrus growers and owner of the Florida’s Natural® brand. Florida’s Natural® competes mainly with Tropicana, owned by PepsiCo, and with Minute Maid and Simply Orange, brands of The Coca-Cola Company. The objective of the case is to evaluate the orange juice industry, assess the position of Florida’s Natural within the industry, and propose business actions for the cooperative. By the end of 2016, the orange juice industry was in the midst of a severe crisis, threatened by decreasing supply and changing consumption preferences. Total orange production in the State of Florida during the 2015-16 season was the smallest crop since the 1960s due mainly to a disease known as citrus greening. Marketers were also facing consumers’ concerns regarding high levels of calories and sugar in some juice categories. Furthermore, on May 2016, the Food and Drug Administration mandated a change in the nutrition facts label on packaged food, becoming effective in the summer of 2018, which may impact marketers in the sector.
Carlos Omar Trejo-Pech; Thomas H. Spreen; Lisa A. House. Florida’s Natural® and the supply of Florida oranges. International Food and Agribusiness Management Review 2018, 21, 437 -454.
AMA StyleCarlos Omar Trejo-Pech, Thomas H. Spreen, Lisa A. House. Florida’s Natural® and the supply of Florida oranges. International Food and Agribusiness Management Review. 2018; 21 (3):437-454.
Chicago/Turabian StyleCarlos Omar Trejo-Pech; Thomas H. Spreen; Lisa A. House. 2018. "Florida’s Natural® and the supply of Florida oranges." International Food and Agribusiness Management Review 21, no. 3: 437-454.
We develop constructs to evaluate the factors influencing the degree of students' acceptance of cases. In our proposed framework, student acceptance is affected by the case selection, intensity of faculty use, training, course type and level, level of instructor expertise, teaching atmosphere, and the faculty's beliefs about the usefulness of the case method. Our sample includes faculty teaching quantitative or qualitative courses across several disciplines in undergraduate business administration. Responses to a survey are analyzed using factor analysis and regression. The quantitative analysis is complemented by interviews with a subset of expert faculty using a two-round modified Delphi technique. This study may be limited by the fact that it measured faculty perceptions of the degree of students' acceptance of cases, rather than student acceptance directly. Future research might survey students or use students' courses evaluations to validate or contradict our results.
Carlos J. O. Trejo-Pech; Susan White. THE USE OF CASE STUDIES IN UNDERGRADUATE BUSINESS ADMINISTRATION. Revista de Administração de Empresas 2017, 57, 342 -356.
AMA StyleCarlos J. O. Trejo-Pech, Susan White. THE USE OF CASE STUDIES IN UNDERGRADUATE BUSINESS ADMINISTRATION. Revista de Administração de Empresas. 2017; 57 (4):342-356.
Chicago/Turabian StyleCarlos J. O. Trejo-Pech; Susan White. 2017. "THE USE OF CASE STUDIES IN UNDERGRADUATE BUSINESS ADMINISTRATION." Revista de Administração de Empresas 57, no. 4: 342-356.
Carlos Omar Trejo-Pech; Magdy Noguera; Michael Gunderson. Corporate Cash Holdings and Economic Crises in Mexico. Financial Deepening and Post-Crisis Development in Emerging Markets 2016, 111 -133.
AMA StyleCarlos Omar Trejo-Pech, Magdy Noguera, Michael Gunderson. Corporate Cash Holdings and Economic Crises in Mexico. Financial Deepening and Post-Crisis Development in Emerging Markets. 2016; ():111-133.
Chicago/Turabian StyleCarlos Omar Trejo-Pech; Magdy Noguera; Michael Gunderson. 2016. "Corporate Cash Holdings and Economic Crises in Mexico." Financial Deepening and Post-Crisis Development in Emerging Markets , no. : 111-133.