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Research Collection Lee Kong Chian School Of Business

Finance and Financial Management

2001

Articles 1 - 4 of 4

Full-Text Articles in Business

Persistence In Style-Adjusted Mutual Fund Returns, Melvyn Teo, Sung-Jun Woo Nov 2001

Persistence In Style-Adjusted Mutual Fund Returns, Melvyn Teo, Sung-Jun Woo

Research Collection Lee Kong Chian School Of Business

The literature on mutual fund persistence took a hit with the finding that one-year stock momentum and expense ratios account for most of the persistence in mutual fund performance (Carhart, 1992; Carhart, 1997). However, since equity mutual funds are grouped into styles (e.g., large value, small growth, mid-cap growth, etc.) and are often confined to trading stocks within their style, one should measure fund performance relative to style when investigating managerial ability. Using CRSP mutual fund data and a methodology similar to Carhart (1997), we find that differences in style-adjusted fund returns persist for up to six years. Neither one-year …


The Effectiveness Of Institutional Activism, Gary L. Caton, Jeremy Goh, Jeffrey Donaldson Jul 2001

The Effectiveness Of Institutional Activism, Gary L. Caton, Jeremy Goh, Jeffrey Donaldson

Research Collection Lee Kong Chian School Of Business

Researchers examined earnings-forecast revisions and stock returns after release of the Focus List of poorly performing companies by the Council of Institutional Investors. Using Tobin's q as a measure of a company's ability to improve performance, researchers found significant and positive abnormal forecast revisions and post-release stock returns for companies with q greater than one. Findings support the proposition that institutional activism is effective for underperforming companies - but only those companies with the ability to respond to the challenge to improve performance.


Is A Convertible Bond Call Really Bad News?, Louis H. Ederington, Jeremy C. Goh Jul 2001

Is A Convertible Bond Call Really Bad News?, Louis H. Ederington, Jeremy C. Goh

Research Collection Lee Kong Chian School Of Business

The article tests and rejects the hypothesis that managers call in-the-money convertibles when they view a decline in the value of the firm as likely. Inconsistent with this view, it finds that insiders generally buy equity before conversion-forcing calls. Also, analysts tend to raise their earnings forecasts following a call. There is no evidence that earnings analysts interpret a conversion-forcing call as bad news. Indeed there is evidence that, relative to firms in general, analysts are revising their earnings forecasts upward in the months surrounding conversion-forcing calls. The article concludes that an announcement of a conversion-forcing call of a firm's …


Pricing Options Using Implied Trees, Kian Guan Lim, Da Zhi Jan 2001

Pricing Options Using Implied Trees, Kian Guan Lim, Da Zhi

Research Collection Lee Kong Chian School Of Business

No abstract provided.