Finance and Financial Management Commons^™

Intraday Pattern And The Speed Of Adjustment In The Jakarta Stock Exchange, Zaafri Husodo, Thomas Henker

Thomas Henker

High frequency study at individual level in the Jakarta Stock Exchange is conducted in this research to reveal the dynamics at intraday level. Several apparent patterns emerge from analyzing the relation among the speed of adjustment coefficients, noise, and noise variance. It is found that the noise and noise variance are at a low level when the speed of adjustment coefficients achieves a fair level. The speed of adjustment coefficients, both at market and individual level show a periodic adjustment pattern at a daily interval. This justifies the importance of studying the dynamics of the price discovery as estimated in …

Complementary And Alternative Medicine: Opportunities And Challenges, William Marty Martin, Hugh Long

William Marty Martin

Health care finance is complex in all sectors of the health care industry. This article highlights both the challenges and opportunities of financing and reimbursing care with a focus on CAM providers and CAM provider organizations.

Distress During The Great Depression: The Illiquidity-Insolvency Debate Revisited, Gary Richardson

Gary Richardson

During the contraction from 1929 to 1933, the Federal Reserve System tracked changes in the status of all banks operating in the United States and determined the cause of each bank suspension. This essay analyzes chronological patterns in aggregate series constructed from that data. The analysis demonstrates both illiquidity and insolvency were substantial sources of bank distress. Periods of heightened distress were correlated with periods of increased illiquidity. Contagion via correspondent networks and bank runs propagated the initial banking panics. As the depression deepened and asset values declined, insolvency loomed as the principal threat to depository institutions.

Deposit Insurance And Moral Hazard: Capital, Risk, Malfeasance, And Mismanagement. A Comment On ‘Deposit Insurance And Moral Hazard: Evidence From Texas Banking During The 1920s, Gary Richardson

Gary Richardson

A Journal of Economic History article by Linda Hooks and Kenneth Robinson, “Deposit Insurance and Moral Hazard: Evidence from Texas Banking During the 1920s,” contains a contradiction (Hooks and Robinson 2002). Pondering the contradiction in the paper reveals insights that the authors may have overlooked. Hooks and Robinson’s article examines the experience of the banking industry in Texas during the 1920s. Texas operated a deposit-insurance system from January 1, 1910 until February 11, 1927. Deposit insurance was mandatory for all state banks, which were given the choice of two plans in which to participate. The preponderance participated in the depositors …

Check Is In The Mail: Correspondent Clearing And The Banking Panics Of The Great Depression, Gary Richardson

Gary Richardson

Weaknesses within the check-clearing system played a hitherto unrecognized role in the banking crises of the Great Depression. Correspondent check-clearing networks were vulnerable to counter-party cascades. Accounting conventions that overstated reserves available to corresponding institutions may have exacerbated the situation. The initial banking panic began when a correspondent network centered in Nashville collapsed, forcing over 100 institutions to suspend operations. As the contraction continued, additional correspondent systems imploded. The vulnerability of correspondent networks is one reason that banks that cleared via correspondents failed at higher rates than other institutions during the Great Depression.

Termination Risk And Managerial Risk Taking, Atreya Chakraborty, Shahbaz A. Sheikh, Narayanana Subramanian

Atreya Chakraborty

We test the hypothesis that managers who face a high termination risk make less risky investments than the managers who face a low termination risk. A 10% increase in our measure of termination risk is associated with a 5%–23% decline in stock returns volatility for the median firm in our sample. We also find that for CEOs who are more likely to be fired in the event of investment failure, the inhibiting effect of termination risk appears to offset the positive effect of convexity of managerial compensation on managerial risk taking. These results are robust to alternative definitions of forced …

Quality Models: Selecting The Best Model To Deliver Results, William Martin

William Marty Martin

No abstract provided.

Calling The End Of The Bubble: Are There Trends In Order Imbalances, Julia Henker, Thomas Henker

Julia Henker

Extract:
Can traders effectively conceal their information processing from the rest of the market, or is it there for the alert investor to observe? Could we see, for example, the reduction in demand that leads to the crash of a stock price bubble, or can investors keep their sentiment private?

We might expect that if we look carefully at buy and sell orders over several days, we could forecast the change from an upward to a downward trend in asset prices, but we would be wrong.

In this article, we investigate whether stock price bubble crashes are foreshadowed in order …

Calling The End Of The Bubble: Are There Trends In Order Imbalances, Julia Henker, Thomas Henker

Thomas Henker

Extract:
Can traders effectively conceal their information processing from the rest of the market, or is it there for the alert investor to observe? Could we see, for example, the reduction in demand that leads to the crash of a stock price bubble, or can investors keep their sentiment private?

We might expect that if we look carefully at buy and sell orders over several days, we could forecast the change from an upward to a downward trend in asset prices, but we would be wrong.

In this article, we investigate whether stock price bubble crashes are foreshadowed in order …

Pre-Test Assessment In The Introductory Finance Course, Thomas D. Berry

Thomas D Berry

Berkshire Region: Technology Sector Update, Robert A. Nakosteen

Robert A Nakosteen

Despite a statewide tech turnaround, the region’s high-tech enterprises lag behind the recovery.