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Full-Text Articles in Business
The Rate Of Return Under Re-Capitalization: A Note, Mohamed Ariff, Kian Guan Lim
The Rate Of Return Under Re-Capitalization: A Note, Mohamed Ariff, Kian Guan Lim
Research Collection Lee Kong Chian School Of Business
The article discusses issues related to variations in rate of return of stocks under re-capitalization. Share returns are commonly adjusted for re-capitalization by distributing the difference between market and exercise prices over the number of shares. Re-capitalization is said to occur when the total amount of equity capital or number of shares in a firm changes. New issues usually take the form of bonus issues or new paid-up issues called rights issues, which do not change the amount of equity.
Attitudes And The Risk-Return Paradox: Prospect Theory Explanations, Avi Fiegenbaum, Howard Thomas
Attitudes And The Risk-Return Paradox: Prospect Theory Explanations, Avi Fiegenbaum, Howard Thomas
Research Collection Lee Kong Chian School Of Business
This study attempted to explain Bowman's risk-return paradox in terms of recent research in behavioral decision theory and prospect theory. The research emphasized the role of reference, or target, return levels in analyzing risky choices. For returns below target, a large majority of individuals appear to be risk seeking; for returns above target, a large majority appear to be risk averse. Using extensive COMPUSTAT-based data on U.S. firms, we consistently found a negative risk-return association for firms having returns below target levels and a positive association for firms with returns above target. These results support the basic propositions of prospect …