Evaluating The Target Pipeline In A Pharmaceutical Acquisition,
2010
Ursinus College
Evaluating The Target Pipeline In A Pharmaceutical Acquisition, Daniel Vass
Business and Economics Honors Papers
Many firms in the pharmaceutical industry turn to acquisitions when faced with gaps in their drug development pipelines and patent expirations as an alternative to making long-term investments in internal research and development. Investors are generally negative on this strategy, and upon the announcement of a pharmaceutical acquisition the stock of the acquiring firm often drops. This decline in share price creates an opportunity for the investor who can identify the characteristics of a target firm that increase the probability that the transaction will ultimately be a success, as measured by the subsequent appreciation in the acquirer's stock. It is …
Should Individual Investors Use Technical Trading Rules To Attempt To Beat The Market?,
2010
Quinnipiac University
Should Individual Investors Use Technical Trading Rules To Attempt To Beat The Market?, Thomas S. Coe, Kittipong Laosethakul
WCBT Faculty Publications
Problem statement: Despite widespread academic acceptance of the Efficient Markets Hypothesis, some stock traders still use technical trading rules in an attempt to beat the market. Approach: This study looked at four trading rules, namely, the arithmetic moving average, the relative strength index, a stochastic oscillator and its moving average. These trading rules compare the relationship of current prices to past price patterns to generate a signal when to buy and sell stocks. The trading rules were tested over the years 2000-2009, a period of time that exhibited bull and bear markets, to determine if traders could actively …
A Comparative Study Of The Performance, Macroeconomic Variables, And Firm's Specific Determinants Of Islamic And Non-Islamic Indices : The Malaysian Evidence.,
2010
Universiti Malaya
A Comparative Study Of The Performance, Macroeconomic Variables, And Firm's Specific Determinants Of Islamic And Non-Islamic Indices : The Malaysian Evidence., Mohamed Shikh Abu Baker Albaity
Student Works (2010-2019)
This thesis presents three related empirical studies on the performance and the long and short run dynamics between screened investment portfolio represented by Kuala Lumpur Syariah index (KLSI) and non-screened investment portfolio represented by Kuala Lumpur Composite index (KLCI) in Bursa Malaysia. The KLCI contains the largest 100 companies in Malaysia. This index facilitates as a barometer of the Malaysian economy while, the KLSI is the first Syariah compliant index in Bursa Malaysia. KLSI represents companies abiding to Islamic laws of transactions, which is determined by the scholars in the Shariah supervisory board employed by Bursa Malaysia. The KLCI represents …
Tunneling As An Incentive For Earnings Management During The Ipo Process In China,
2010
Singapore Management University
Tunneling As An Incentive For Earnings Management During The Ipo Process In China, Jiwei Wang, Joseph Aharony, Hongqi Yuan
Research Collection School Of Accountancy
Using a sample of 185 Chinese IPO firms listed on the Shanghai Stock Exchange during the period 1999-2001, we show that related-party (RP) sales of goods and services could be used opportunistically to manage earnings upwards in the pre-IPO period. We also provide evidence that such behavior may be motivated by the prospect of tunneling opportunities in the post-IPO period, i.e., exploiting economic resources from minority shareholders for the benefit of the parent company. We provide evidence of one such opportunistic tunneling tool: non-repayment by Chinese parent companies of net outstanding corporate loans made to them by their newly listed …
Sukuk Ijarah : Konsep Dan Amalannya Dalam Pasaran Modal Islam Di Malaysia.,
2010
Universiti Malaya
Sukuk Ijarah : Konsep Dan Amalannya Dalam Pasaran Modal Islam Di Malaysia., Muhammad Azizur Rahman Ramli
Student Works (2010-2019)
Sukuk Ijarah is one of the financial certificates known in the Islamic capital market. This financial certificate is established by taking into consideration two major factors, firstly, preserving the conventional way of investment which is permissible in Islam and, secondly, conforming to the shariah law, as a new financial instrument in the Islamic capital market. Sukuk and Bond are two different instruments in its financial structure. Sukuk eliminates in its structure the use of riba and gharar (uncertainty). Moreover, its financial structure is based on Islamic securitisation concept and exchange contract, such as ijarah, murabahah, bay‘ bithamin ajil and others. …
Is Regime Switching In Stock Returns Important In Asset Allocations?,
2010
Singapore Management University
Is Regime Switching In Stock Returns Important In Asset Allocations?, Jun Tu
Research Collection Lee Kong Chian School Of Business
The stock market displays regime switching between upturns and downturns. This paper provides a Bayesian framework for making portfolio decisions that takes this regime switching into account, together with asset pricing model uncertainty and parameter uncertainty. The findings reveal that the economic value of accounting for regimes is substantially independent of whether or not model and parameter uncertainties are incorporated: the certainty-equivalent losses associated with ignoring regime switching are generally above 2% per year, and can be as high as 10%. These results suggest that the more realistic regime switching model is fundamentally different from the commonly used single-state model, …
Understanding Analysts Forecasts,
2010
University of Cambridge
Understanding Analysts Forecasts, R. J. Louth, P. Joos, S. E. Satchell, Guy Weyns
Research Collection School Of Accountancy
The purpose of this paper is to model analysts’ forecasts. The paper differs from the previous research in that we do not focus on how accurate these predictions may be. Accuracy may indeed be an important quality but we argue instead that another equally important aspect of the analysts’ job is to predict and describe the impact of jump events. In effect, the analysts’ role is one of scenario prediction. Using a Bayesian-inspired generalised method of moments estimation procedure, we use this notion of scenario prediction combined with the structure of the Morgan Stanley analysts’ forecasting database to model …
Do Analyst Earnings Beta Explain Growth Anomaly?,
2010
Singapore Management University
Do Analyst Earnings Beta Explain Growth Anomaly?, Sophie Phuong Thanh Doan
Dissertations and Theses Collection (Open Access)
Using a measure of cashflow risk derived from analyst forecasts, I find that cashflow risk offers a partial explanation for the value – growth anomaly. In particular, the lowest asset growth portfolio has a higher earnings beta than the highest asset growth portfolio. Approximately cashflow risk measured by earnings beta carries a significant positive risk premium of 1.24% with a t-value of 3.51.
Long-Term Earnings Growth Forecasts, Limited Attention, And Return Predictability,
2010
University of Notre Dame
Long-Term Earnings Growth Forecasts, Limited Attention, And Return Predictability, Zhi Da, Mitchell Craig Warachka
Research Collection Lee Kong Chian School Of Business
Long-term earnings expectations are critically important to stock price valuations. We identify relative optimism and relative pessimism in long-term analyst forecasts by comparing these forecasts with implied short-term earnings growth forecasts across rms within the same industry. Stocks with relatively optimistic and relatively pessimistic long-term analyst forecasts have negative and positive risk-adjusted returns, respectively. This return predictability depends critically on short-term forecasts since relative optimism and relative pessimism originate from the slow diffusion of information from short-term to long-term analyst forecasts. Our results indicate that market participants have limited attention regarding the long-term earnings implications of information.
Strategic Financial Management: Evidence From Seasoned Equity Offerings,
2010
University of Rochester
Strategic Financial Management: Evidence From Seasoned Equity Offerings, Michael Barclay, Fangjian Fu, Clifford Smith
Research Collection Lee Kong Chian School Of Business
Extant theories of capital structure assume myopic financial managers. So they have hard time to explain the financing behavior of seasoned equity offering (SEO) firms. In contrast with the pecking order theory, SEO firms typically are financially healthy companies with significant cash balances, low leverage, and unused debt capacity. At odds with the tradeoff theory, SEOs often move firms away from, rather than closer to, their target leverage ratios. SEOs appear to be driven by capital needs associated with large investment projects rather than by market timing considerations. Firms issue debt following the SEO to finance investment further and to …
