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The purpose of this paper is to investigate how quotes originating via electronic communication networks (ECN)s affect trading costs.

In order to investigate the relations between trading costs and quotation venue, the bid‐ask spread is decomposed into its theoretical cost components associated with adverse selection, inventory handling, and order processing.

Stoll's adverse selection costs of ECN‐originated quotes relate positively to effective spreads, while Lin et al.'s adverse selection costs relate negatively to effective spreads.

The paper shows how trading costs relate to trading venue choice by decomposing the bid‐ask spread.

Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The particular focus is on reviewing current practice in distribution costing and on attempting to push the frontiers back a little by suggesting some new approaches to overcome previously defined shortcomings.

The purpose of this paper is to investigate the impact of the components of the bid‐ask spread around earnings announcements on the London Stock Exchange using intraday data obtained from the ICV Marketeye database. The paper finds that the information asymmetry cost component significantly increases around the earnings announcements, while the inventory holding and order processing cost components significantly decrease around the same period. Specifically, the economic magnitude of the increase in the asymmetric cost component implies that earnings announcements significantly increase the total bid‐ask spread, even when they result in decreased inventory holding and order processing costs.

Liquidity in financial markets around earnings announcements in the London Stock Exchange obtained by bid‐ask spread decompositions.

This paper investigates the impact of earnings announcements on the components of the bid‐ask spread on the London Stock Exchange using intraday data. The fundamental conclusion from the empirical findings is that the bid‐ask spread increases once the earnings have been announced, because the market makers' increased concerns about asymmetric information is more pronounced, than the lower inventory and order processing costs due to the higher levels of trading volume. This empirical finding also holds when the earnings announcements are partitioned into positive and negative surprises.

This is the first paper to decompose the bid‐ask spread around earnings announcements on the London Stock Exchange. The paper uses a unique intraday dataset.

Key components of the logistics mix are described in an effort to create an understanding of the total logistics concept. Chapters include an introduction to logistics; the strategic role of logistics, customer service levels, channel relationships, facilities location, transport, inventory management, materials handling, interface with production, purchasing and materials management, estimating demand, order processing, systems performance, leadership and team building, business resource management.

Stock markets during the day are relatively centralized, while night markets, due to the dominance of electronic trading venues, are fragmented. Though electronic markets at night allow more competition for order flow, they may result in decreased order interaction and decreased transparency. Using transaction data for three exchange traded funds (ETFs), we find that bid–ask spreads are wider at night due to higher order processing costs, market maker rents, and inventory holding costs. Results show that night markets are informationally fragmented and are not able to impound information available in net order flow to the same degree as day markets.

Computerising inventory control procedures is usually an attempt to gain better control over stock availability. The effectiveness of the procedures depends on the time delays imparted by such events as order processing and delivery. Through these time delays, much of a finished goods physical distribution system is linked together through the inventory control procedures. Changing the length of any one time element through changes in inventory stocking rules, order processing methods or selected transportation services impacts on the economics of the entire physical distribution system. Little is understood about the effects of time change in such complex systems. In this article, the actual computer inventory control procedures of a chemical company were computer simulated. Physical distribution system design decisions and their associated time delay effects were explored by interrogating the model. Surprising effects were discovered, some of them being counter‐intuitive to what simple theory would predict. Management guidelines were provided as to the system‐wide economic consequences of change in individual elements of a physical distribution system.

Customer service levels are seen as the linchpin of an effective marketing logistics strategy for any company. Careful consideration is given to the components of customer service and each element is examined to identify its cost and revenue aspects. Segmented customer service policies are reviewed and taxonomic criteria proposed. The trade‐offs within the total logistics mix which are concomitant with changes in service offered are examined. Equally, a distinction is drawn between subjective service levels (i.e., displayed availability at point‐of‐purchase/use) and objective service levels. Control procedures to monitor the operational management of service levels decided upon are enumerated and procedures for interpreting customer complaints described. Experimental approaches are proposed by which managements can seek to move towards more cost effective service policies.

The purpose of this paper is to examine stock market reactions and liquidity effects following the first bank loan announcement of zero-leverage firms.

The authors use an event studies methodology in both a univariate and multivariate framework. The authors also use regression analysis.

Using a sample of 96 zero-leverage firms listed on the FTSE 350 index over the time period of 2000–2015, the authors find evidence of a significant and permanent stock price increase as a result of the initial debt announcement. The loan announcement results in a sustained increase in trading volume and liquidity. This improvement continues to persist once the authors control for stock price and trading volume effects in both the short and long run. Furthermore, the authors examine the spread decomposition around the same period, and discover the adverse selection of the bid–ask spread is significantly related to the initial bank loan announcement.

The results can be attributed to the information cost/liquidity hypothesis, suggesting that investors demand a lower premium for trading stocks with more available information.

This is the first paper to look at multiple industries, more than one loan and information asymmetry effects.

The objective of the present study is to model the total supply chain cost (TSCC) of an Indian grain chain in order to understand and predict the future outcome of each supply chain model in different situations and to devise policies accordingly to reduce TSCC.

The system dynamics (SD) approach is used to model the TSCC model of an Indian grain chain, which takes care of the dynamic interaction of the cost variables.

The major findings of the paper are the reduced cost ratios in the different scenarios. A total of nine scenarios are evaluated, which are the cooperative model, contract farming and a collaborative supply chain based on optimistic, pessimistic and most likely views.

The practical implications are the action plans suggested to reduce TSCC in each of the future scenarios of the supply chain model that are developed in the paper.

The TSCC model is beneficial not only for organizations entering into the food business, but also for economic policy makers.

Describes the analysis of the logistics system of a supplier of anhydrous sodium sulphate to the Australian market. This examination considered the total cost and customer service implications of the present supply of this bulk product from one Canadian and US west coast source, its unloading at three Australian ports and subsequent distribution to customers in major Australian markets. Examines a number of options for restructuring anhydrous sodium sulphate logistics including the use of a single inbound port and the establishment of a single centralised distribution centre. In addition to these major structural options, examines a number of possible improvements which could be applied to any of them: the installation of a centralised national order processing operation; the reduction of national inventory holdings; changes in the terms of trade; modified relations with distributors; and improved interrelationships with customers. Uses a spreadsheet model to examine these options.