Finance and Financial Management Commons^™

Investment Horizons And Indeterminancy In Financial Markets, Shyam Sunder

Shyam Sunder

No abstract provided.

Risky Curves: On The Empirical Failure Of Expected Utility, Shyam Sunder

Shyam Sunder

No abstract provided.

Financing Asean Connectivity, Fauziah Zen, Michael Regan

Michael Regan

In line with the globalisation trend, it becomes inevitable for the South East Asian economies to prepare themselves to move towards the path of a more border-less and well-connected world. Evidence has shown that countries can gain a lot from internationalisation, especially from trade, knowledge and information exchanges, and flows of people and goods. One of the key targets of ASEAN in achieving a dynamic, vibrant, globally connected and strong region is to fully realise ASEAN Connectivity which consists of three pillars, namely, physical connectivity, people-to-people connectivity, and institutional connectivity. Physical connectivity is especially important because it is not only …

Quantitative Evaluation On Indigent Criminal Defense Funding, Ralph E. Mckinney, Lawrence P. Shao

Ralph E. McKinney

This article takes a quantitative approach to build upon McKinney and Shao's (2008) qualitative contribution concerning resource a/location of indigent criminal defense programs. By compating public funds of multiple societies over time, we are able to add important knowledge surrounding property rights valuations using a new concept called GDP Indexed Purchasing Power Parity. The findings of this study show that GDP-PPP provides for better indigent criminal defense analysis than per capita figures.

Indigent Criminal Defense: Qualitative Review On Economic Value, Ralph Mckinney, Lawrence P. Shao

Ralph E. McKinney

This article reviews indigent criminal defense programs on an international level and generally concludes that societies want to protect legitimate society members', within the respective society's jurisdiction, fundamental property rights concerning criminal prosecution. While this conclusion was as the researchers expected, several unexpected and contrary observations were noted. Society wealth and a greater return on investments of public funds can dramatically shift a society's value of basic shared rights.

Measuring Risk In Business And Economics: Possiblity Of Loss Or Dispersion Of Outcomes, Shyam Sunder

Shyam Sunder

No abstract provided.

When Less Is More: The Benefit Of Limits On Executive Pay, Peter Cebon, Benjamin Hermalin

Peter Cebon

We derive conditions under which limits on executive compensation can enhance efficiency and benefit shareholders (but not executives). Having their hands tied in the future allows a board of directors to credibly enter into relational contracts with executives that are more efficient than performance-contingent contracts. This has implications for the ideal composition of the board. The analysis also offers insights into the political economy of executive-compensation reform.

Teleinvestmentevangelists: Celebrity, Ritual And Religion And The Quest To “Beat The Market”, E. Douglas, Mary Keller, Elton Mcgoun

Mary L Keller

Purpose – This paper aims to offer a cultural understanding of investor faith in stock picking despite overwhelming evidence questioning its efficacy. Why, in the face of very widely communicated findings calling into question the advice and assistance offered by financial professionals to help them pick stocks or manage their mutual funds, do so many people persist in these practices? The authors believe that the best way to understand investor faith in the efficacy of stock picking is through teleinvestmentevangelists such as Jim Cramer, whose fusion of celebrity and religion taps into the ritualistic elements of investment that usually lie …

Ex_Ante_Cba-Community_Drr_In_The_Caribbean.Pdf, Meenakshi Jerath, Juan Pablo Sarmiento

Juan Pablo Sarmiento

Jumps In Natural Gas Prices: Implications For Infrastructure, Charles F. Mason, Neil A. Wilmot

Charles F Mason

No abstract provided.

Theories And Practices Of Islamic Finance And Exchange Laws: Poverty Of Interest, Ahmed E. Souaiaia

Ahmed E SOUAIAIA

The Vehicle Quota System In Singapore: An Assessment, Winston T. H. Koh, David K. C. Lee

David LEE Kuo Chuen

This paper reviews the developments since the vehicle quota system was introduced in Singapore in May 1990. We discuss the bidding strategies for the certificates of entitlement (COE) under both the transferable and nontransferable auctions, as well as the equity of the present system and the desirability of transferable COEs. We argue that the COE auction should be made discriminatory and propose an alternative system of COE auction that we feel is both equitable and at the same time politically acceptable. We also survey developments in market competition in the car industry.

Share-Price-Changes-Volume Relation On The Singapore Equity Market, David K. C. Lee, Mohamed Ariff

David LEE Kuo Chuen

A critical review of the literature on security-price-changes-volume research suggests that the published studies in the United States and one each in Hong Kong and Japan have largely ignored the impacts on the results from autocorrelation, non-normality of distributions, heteroscedasticity and non-linear functional forms. Therefore, the reported findings are not robust. In testing for this relation from a small sample of continuously traded shares in the Singapore share market, we find that consistent results may not be obtained because of violations of basic test conditions. A task that remains is an application of alternative test models with data transformation using …

Housing Policies In Singapore: Evaluation Of Recent Proposals And Recommendations For Reform, Sock Yong Phang, David K. C. Lee, Alan Cheong, Kok Fai Phoon, Karol Wee

David LEE Kuo Chuen

The Singapore housing market is unusual in its high homeownership rate, the dominance of HDB housing, and the extensive intervention of the government in regulating housing supply and demand in both the HDB and private housing sectors. Recent rapid population increases in a low interest rate and high global liquidity environment has resulted in accelerated house prices increases in Singapore. Earlier this year, the government launched “Our Singapore Conversation” of which discussion on housing policies constitutes one major component. This “conversation” comes in the wake of several consecutive rounds of measures to stabilize housing prices using various instruments. This paper …

Managing The Risks In Financial Inclusion And Agency Banking, Emmanuel Moore Abolo Dr.

Dr. Emmanuel Moore Abolo

Ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream institutional poses risks that must be managed in an enterprise-wide form for greater impact.

J.P. Morgan Research Database Review, Marc Vinyard

Marc Vinyard

Intangible Investments And The Pricing Of Corporate Sga Expenses, Rongbing Huang, Gim S. Seow, Joe S. Shangguan

Rongbing Huang

This study examined whether the market fully prices the reported Selling, General, and Administrative (SGA) expenses when this item includes an intangible investment component. For a sample of intangible investment-intensive firms, we showed that their SGA expenses benefit future operating performances. Evidence suggests some degree of market inefficiency in the pricing of SGA expenses and the intangible investment component. Furthermore, the financial analysts do not appear to appreciate fully the future benefits of the component in their earnings forecasts. Finally, the pertinent disclosures in firms’ annual reports are so inadequate as to attenuate the market mispricing, suggesting a significant room …

Risk Management Association Estatement Studies Database Review, Marc Vinyard

Marc Vinyard

A History Of Financial Regulation In The Usa From The Beginning Until Today: 1789 To 2011, Gary Richardson

Gary Richardson

No abstract provided.

Earnings Response Coefficients Of Oecd Banks: Tests Extended To Include Bank Risk Factors, Mohamed Ariff, Cheng Fan Fah, Soh Wei Ni

Mohamed Ariff

We investigate two issues: Do share prices of banks in European markets respond to unexpected accounting earnings disclosures? Are share prices as well as unexpected earnings changes correlated with bank-relevant risk factors? Results reveal that bank share prices respond to unexpected earnings changes at the time of accounting reports in the same manner as the shares of the more widely-researched non-bank firms. Apart from finding significant earnings response coefficients in eight countries, we find that credit risk, price risk, exchange rate risk, and solvency risk are significantly correlated with share price changes. Third, three bank risk factors are significantly correlated …

Thomsonone.Com Investment Banking Database Review, Marc Vinyard

Marc Vinyard

Financial Liberalization, Market Structure And Credit Penetration, Felipe Balmaceda Assoc Prof., Ronald Fischer Full Professor, Felipe Ramirez

Felipe Balmaceda

This paper shows that the effects of financial liberalization on the credit market of a small and capital constrained economy depend on the market structure of domestic banks prior to liberalization. Specifically, under perfect competition in the domestic credit market prior to liberalization, liberalization leads to lower domestic interest rates, in turn leading to increased credit penetration. However, when the initial market structure is one of imperfect competition, liberalization can lead to the exclusion of less wealthy entrepreneurs from the credit market. This provides a rationale for the mixed empirical evidence concerning the effects of liberalization on access to credit …

The Impact Of Reversing Regulatory Arbitrage On Loan Originations: Evidence From Bank Holding Companies, Lan Shi, David H. Downs

Lan Shi

No abstract provided.

Impact Of Affect Heuristic, Fear And Anger On Decision Making Of Individual Investor: A Conceptual Study, Ehsan Ul Hassan, Fahad Shahzeb, Maryum Shaheen, Qamar Abbas, Zahid Hameed, Ahmed Imran Hunjra

Ahmed Imran Hunjra (PhD)

Financial theories support the efficient market hypothesis, which assumes that prices are fair in the market and investors behave rationally while taking any investment decision. Individual Investors of the stock market are therefore thought to take rational decisions while making judgments and investment decisions. However, a lot of studies on behavioral finance have criticized the phenomenon of market efficiency and investor’s rationality. The empirical evidences of these studies conclude the involvement of behavioral biases and psychological impacts on investor’s judgments and decision making. Keeping this in mind the present study has focused on studying the impact of affect heuristic, fear …

Alternative Estimators Of Cointegrating Parameters In Models With Non-Stationary Data: An Application To Us Export Demand, James Forest, Paul Turner

James J Forest

This paper presents Monte Carlo simulations which compare the empirical performance of two alternative single equation estimators of the equilibrium parameters in a dynamic relationship. The estimators considered are Stock and Watson’s dynamic ordinary least squares (DOLS) estimator and Bewley’s transformation of the general autoregressive distributed lag model. The results indicate that the Bewley transformation produces a lower mean-square error as well as superior serial correlation properties even with lower truncation lags for the lagged variables included in the estimation equation. An application is then provided which examines the nature of the equilibrium relationship between aggregate US exports, world trade …

Jump Processes In The Market For Crude Oil, Neil Wilmot, Charles Mason

Charles F Mason

In many commodity markets, the arrival of new information leads to unexpectedly rapid changes—or jumps—in commodity prices. Such arrivals suggest the assumption that log-return relatives are normally distributed may hold. Combined with time-varying volatility, the possibility of jumps offers a potential explanation for fat tails in oil price returns. This article investigates the potential presence of jumps and time-varying volatility in the spot price of crude oil and in futures prices. The investigation is carried out over three data frequencies (Monthly, Weekly, Daily), which allows for an investigation of temporal properties. Employing likelihood ratio tests to compare among four stochastic …

Transaction Costs Analysis Of Low-Carbon Technologies, Luis Mundaca T., Mathilde Mansoz, Lena Neij, Govinda R. Timilsina

Luis Mundaca

Transaction costs (TCs) must be taken into account when assessing the performance of policy instruments that create markets for the diffusion and commercialization of low-carbon technologies (LCTs). However, there are no comprehensive studies on the development and application of transaction cost analysis to LCTs. In this meta-analysis, a wide-ranging evaluation of TCs associated with energy efficiency, renewable energy, and carbon market technologies is provided. There is a plethora of different definitions of, and measurement techniques to estimate, TCs. There is wide variation in the quantitative estimates, which can be attributed to factors such as the definition used, data collection, quantification …

Impact Of Psychological Factors On Investment Decision Making Mediating By Risk Perception: A Conceptual Study, Lubna Riaz, Ahmed Imran Hunjra, Rauf I. Azam

Ahmed Imran Hunjra (PhD)

Every individual is different from others due to various factors which include demographic factors, age, race and sex, education level, social and economic background; same is the situation with the investors. The most critical challenge faced by them is the investment decision; they act in a rational manner and usually follow their instincts and emotional biases while making investment decisions. The investigation of previous studies reveals the importance of various psychological factors which affect their investment decision. Keeping this in view, a study model has been developed to describe the impact of risk propensity, asymmetric information and problem framing on …

Financial Forecasts For The Next Decade, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] Harold Hovey pointed out that the outlook for state funding of public higher education institutions during the first decade of the 21st century might not be as rosy as it has been during the last five years. The pictures I have painted of the financial futures for American public and private higher education echo his concerns. If sustained economic growth continues, academic institutions' financial prospects will be somewhat brighter. However, it is clear that the well-being of colleges and universities nationwide depends upon their diversifying their sources of revenues. Through their efforts to do so, the publics will end …

A Strategy For Rural Financial Market Reform: Applying The Financial Systems Approach In Ghana, Harlan M. Smith Ii, Abor Yeboah

Harlan M. Smith

We construct, using methods advocated in one strand of the Financial Systems Approach literature, a reform-and-renewal program for one of Ghana’s struggling Rural Banks--the Kaaseman Rural Bank. Questionnaire results, local informal financial practices, recent institutional innovations in Ghanaian finance, the experiences of successful “Nontraditional” rural finance institutions in developing countries, and the operating structure of the Rural Bank program indicate that this bank can implement a group-lending scheme that will reduce significantly its transaction costs and those of its customers. We thus demonstrate how the Financial Systems Approach can be employed to promote sustainable rural financial intermediation in a specific …