Reputational Capital,
2012
Butler University
Reputational Capital, Steven D. Dolvin
All Chapters
Ratings agencies are supposed to provide an independent view on a firm's (or country's) financial outlook. However, their involvement in the subprime crisis (i.e., their AAA rating on defunct MBS securities) revealed that the rating agencies are often more reactive than proactive. Thus, they seem to have lost much of their respect and influence. See article here, Breakout.
Step On The Gas,
2012
Butler University
Step On The Gas, Steven D. Dolvin
All Chapters
With the economy hitting a "speed bump," market participants increasingly believe the Fed will "step on the gas" to get it going again. Similar thoughts seem to exist in regards to potential action by the Chinese central bank. As a result, markets around the world were up. See the articles here (xinhuanet) and
It Pays To Be Young,
2012
Butler University
It Pays To Be Young, Steven D. Dolvin
All Chapters
The model is changing, as wealth management firms may need to increasingly hire younger advisors.
Is Diversification Dead?,
2012
Butler University
Is Diversification Dead?, Steven D. Dolvin
All Chapters
Diversification (primarily based on asset correlation) is a key component of Modern Portfolio Theory (MPT). However, the recent financial crisis illustrated an increase in correlation across asset categories. Thus, many debate whether diversification still helps. Even with increasing correlations, diversification still provides benefit (possibly just not as much). However, the more relevant issue is that increasing correlation across the typical asset categories suggests that diversification is now more critical across "non-typical" categories -- such as commodities, hedge funds, and private equity funds. .
"Dumb Money" Pushing Treasuries,
2012
Butler University
"Dumb Money" Pushing Treasuries, Steven D. Dolvin
All Chapters
Demand for Treasury bonds pushes prices up and yields lower. Given that Treasury yields are at all-time lows, the implication is that demand for these securities has increased. Many attribute this to buying by the Fed, but this demand is really being driven by retail investors. For contrarian investors, this would be an indicator to sell Treasuries, as retail investors are often referred to as "dumb money." See the article here, CNBC.
Health Or Money?,
2012
Butler University
Health Or Money?, Steven D. Dolvin
All Chapters
When asked whether they would have health or money, most people would probably choose money. However, a recent study shows that investors actually trust their investment advisors more than their doctors. So, does this imply they care more about their money than their health?????? See the article here, Investment News.
Leading Or Lagging,
2012
Butler University
Leading Or Lagging, Steven D. Dolvin
All Chapters
Economists and investors often look to the index of leading indicators to predict the economic future. One measure included in this index is unemployment. However, some debate whether this is more of a lagging indicator since high unemployment hinders spending. In either case, recent news related to initial jobless claims has been positive. See the article here, Reuters.
Anderson, Joseph, 1757-1837 (Sc 456),
2012
Western Kentucky University
Anderson, Joseph, 1757-1837 (Sc 456), Manuscripts & Folklife Archives
Manuscript Collection Finding Aids
Finding aid and scan (Click on "additional files" below) for Manuscripts Small Collection 456. Original letters (3) of Joseph Anderson, and original and holographic copies of letters, notes, etc. (11) written by William Meredith, Philadelphia, to Anderson, Washington, D.C. Anderson’s correspondence with Meredith pertains to a debt owed by Anderson since 1790. Anderson was a Tennessee Senator and first Comptroller of the Treasury.
The Ecb Is Not The Fed,
2012
Butler University
The Ecb Is Not The Fed, Steven D. Dolvin
All Chapters
Although both the ECB and Federal Reserve are central banks, they are much different in their approach to managing their respective economies. The Fed's mandate includes both promoting growth and controlling inflation, while the ECB is really only designed to mitigate inflation. Thus, the ECB is not equipped to act in a speedy fashion as the Fed did in response to our financial crisis. (See the article here, Wall Street Journal.)
Green Infrastructure Resource Directory,
2012
University of Southern Maine
Green Infrastructure Resource Directory, New England Environmental Finance Center
Sustainable Communities Capacity Building
Green infrastructure is an approach for managing stormwater that uses vegetation and soils to capture and treat rainwater where it falls. Unlike single-purpose gray infrastructure, green infrastructure realizes multiple benefits at once, including flood mitigation, improved water and air quality, community beautification, provision of recreational opportunities, and energy and cost savings. This resource directory is intended to help communities design, implement, fund, and monitor green infrastructure practices and programs. It was compiled by the Environmental Finance Center Network through the Capacity Building for Sustainable Communities program funded by U.S. Department of Housing and Urban Development and U.S. Environmental Protection Agency. …
Asian Hedge Fund Report,
2012
Singapore Management University
Asian Hedge Fund Report, Melvyn Teo
Research Collection BNP Paribas Hedge Fund Centre
We survey the Asian hedge fund landscape and shed light on the size, investment region, strategy, and performance metrics of funds operating in Asia. Our findings indicate that hedge funds in the region typically maintain close physical proximity to their investment markets. Institutional quality hedge funds with assets under management greater than US$100m tend to focus on Greater China and Japan. Relative to Hong Kong, Japan, and Australia, Singapore harbors the most diverse group of hedge funds in terms of investment strategy. Between January 2000 and December 2011, Greater China focused funds have on average outperformed hedge funds investing in …
2012 Q2 Market Pulse Report,
2012
Pepperdine University
2012 Q2 Market Pulse Report, John K. Paglia
Pepperdine Market Pulse Report
The quarterly IBBA and M&A Source Market Pulse Survey was created to gain an accurate understanding of the market conditions for businesses being sold in Main Street (values $0-$2MM) and the lower middle market (values $2MM -$50MM). The national survey was conducted with the intent of providing a valuable resource to business owners and their advisors. The IBBA and M&A Source present the Market Pulse Survey with the support of the Pepperdine Private Capital Markets Project and the Graziado School of Business and Management at Pepperdine University.
Alternative Investments For The Masses,
2012
Butler University
Alternative Investments For The Masses, Steven D. Dolvin
All Chapters
Historically, hedge funds and private equity funds have only been available to qualified (i.e., rich) investors. However, new ETFs offer the opportunity for smaller investors to join the party. Check out the new AlphaClone ETF, which will be offered on the International Securities Exchange.
Are Us Economic Variables Useful For Chinese Stock Market Forecasts?,
2012
Singapore Management University
Are Us Economic Variables Useful For Chinese Stock Market Forecasts?, Knowledge@Smu
Knowledge@SMU
It is commonly thought that the economic systems of the world's two largest economies distinct, and so one's experience may not necessarily inform the other. Yet, a new study that compares and analyses stock market data from both countries offers a contrarian view. Undertaken by a PhD candidate at SMU's Lee Kong Chian School of Business, this study was recently presented at the HU-HUE-SKBI Tripartite Conference.
Key Findings Of 2012 Atrs Global Airport Performance Benchmarking Project,
2012
Embry-Riddle Aeronautical University
Key Findings Of 2012 Atrs Global Airport Performance Benchmarking Project, Tae Hoon Oum, Yapyin Choo, Chunyan Yu
Publications
The ATRS Global Airport Benchmarking Project measures and compares the performance of several important aspects of airport operations: Productivity and efficiency, unit costs and cost competitiveness, financial results and airport charges. The report also examines the relationships between various performance measures and airport characteristics as well as management strategies in order to provide a better understanding of observed differences in airport performance. This report includes 183 airports and 25 airport groups of various sizes and ownership forms in Asia Pacific, Europe and North America. This presentation highlights key findings on efficiency and cost.
The Intra-Industry Effects Of Chapter 11 Filings: Evidence From Analysts’ Earnings Forecast Revisions,
2012
Montana State University - Bozeman
The Intra-Industry Effects Of Chapter 11 Filings: Evidence From Analysts’ Earnings Forecast Revisions, Gary L. Caton, Jeffrey Donaldson, Jeremy Goh
Research Collection Lee Kong Chian School Of Business
Shareholders suffer huge losses when firms they own file Chapter 11. Interestingly, even shareholders of rival companies experience statistically significant losses. We examine how the bad news associated with a bankruptcy filing is transferred to the filing firm’s rivals. Using revisions in analysts’ earnings forecasts as a proxy for changes in expected future cash flows, we find that after a bankruptcy filing the market revises downward its cash flow expectations for rivals. Regression analysis confirms a positive relation between changes in expected cash flow and stock market reactions. These findings are consistent with our hypothesis that bad news associated with …
Aspirations, Innovation, And Corporate Venture Capital: A Behavioral Perspective,
2012
INSEAD
Aspirations, Innovation, And Corporate Venture Capital: A Behavioral Perspective, Vibha Gaba, Shantanu Bhattacharya
Research Collection Lee Kong Chian School Of Business
This study takes an organizational decision-making perspective to examine when firms are likely to utilize CVC units as a mechanism for externalizing R&D. We draw insights from the behavioral theory of the firm to argue that managerial aspirations for innovation-related goals are an important driver of CVC initiatives within firms. We test our argument by examining both the adoption and termination of CVC units for a sample of information technology firms from 1992 to 2003. Results show that a firm is more likely to adopt and less likely to terminate a CVC unit when its innovation performance is closest to …
Expect Low Interest Rates To Continue,
2012
Butler University
Expect Low Interest Rates To Continue, Steven D. Dolvin
All Chapters
As the "flight to quality" continues, interest rates will likely remain low for the nations considered to be the most stable (such as the U.S. and Germany). This is a simple supply and demand relationship, as interest rates represent the price of money. (See the article here, the Wall Street Journal.)
Manipulating Earnings,
2012
Butler University
Manipulating Earnings, Steven D. Dolvin
All Chapters
To cover recent losses associated with CDS trading (see earlier post), JP Morgan sold securities in which they had an unrecognized gain. While this move will make their earnings look less negative, the trades will actually hurt firm value as they will trigger taxable gains and reduce future earning power. Thus, for long-term investors, metrics such as cash flow may be better measures then earnings, which tend to be more short-term in nature, as well as more easy to manipulate. (See article here, Reuters.)
On The Efficiency Of Us Equity Markets,
2012
University of South Florida
On The Efficiency Of Us Equity Markets, Mikael Carl Erik Bergbrant
USF Tampa Graduate Theses and Dissertations
Most papers in empirical finance implicitly or explicitly assume the same price of risk, for each priced systematic risk factor, across all risky assets within a given domestic market. In doing so, they rely on the assumption that markets are domestically integrated and, as such, that the price of risk is determined independently of individual investors attitude towards risk. This is true in frictionless markets where investors have complete information, homogenous beliefs, and hold the mean-variance efficient combination of the market portfolio and a risk-free asset. However, investors might not hold the market portfolio because of exogenous reasons. In fact, …
