Economics Commons^™

Two Essays On Ipo Earnings Management, Yong Sun

Theses and Dissertations in Business Administration

This dissertation includes two essays that study initial public offerings (IPO) earnings management. The first essay examines the underwriter's certification and monitoring roles in IPO earnings management; the second essay explores the relation between IPO earnings management and post-IPO institutional ownership.

In the first essay, we investigate the certification role played by underwriters. We hypothesize that there is a negative relation between IPO earnings management and underwriter reputation and that there is a positive relation between underwriter reputation and firm operating performance. In addition, underwriters continue providing monitoring to the firms they take public. Using a sample of IPOs, we …

Henry George: The Theory Of Distribution In Progress And Poverty, Phillip J. Bryson

Faculty Publications

The core of Henry George's economic theory appeared in his most widely-read book, Progress and Poverty. On the basis of his dramatic "single tax" theory, his work became widely known and gained some avid followers who endeavored to base policy on it. But the work was also of value in George's day and interest in our day because of its economic content. George was not a part of the academic economics establishment of his day and his theory was of strictly classical methodology, but it still had much to commend it. A simple model to present his concepts in more …

The Changing Structure Of Montana's Economy: What Is Tourism's Place?, Kara Grau

Institute for Tourism and Recreation Research Publications

This report looks at how the economy of Montana and the entire Mountain West has been changing since the 1970s. Extractive natural resource industries are no longer as important to the economy as they may once have been. Other industries, services in particular, have become relatively more important in terms of employment and earnings in the state. Nonresident travel accounts for 7.5% of total employment (over 45,900 jobs) in Montana. While some may view nonresident travel as insignificant or completely unrelated to what happens in the rest of Montana’s economy, nonresident travel contributes jobs to every industrial sector, directly or …

Dinamika Utang Pemerintah Dan Kesinambungan Fiskal Di Indonesia Periode 1980-2005: Suatu Uji Perbandingan Tiga Pendekatan, Gaffari Ramadhan, Robert A. Simanjuntak

Jurnal Ekonomi dan Pembangunan Indonesia

Economic crisis which happened several years ago has caused many impacts to Indonesia. One of these impacts is a huge amount of government debt. Particularly, the government debt whether from domestic or foreign is one of the instruments to finance government expenditure which can not befulfilled entirely by revenues from taxes. However, using the government debt to fund the government expenditure has consequences for the government to pay-back not only for the interest rate but also for the principal of debt which have maturity-date in the future.

The purpose of this study is to analyze how far the development of …

Exchange Rate Pass-Through Terhadap Harga Barang Ekspor, Studi Kasus Di Indonesia, Arindra A. Zainal

Jurnal Ekonomi dan Pembangunan Indonesia

This study focuses on the relationship between the exchange rate and export performance, using Indonesian data. Although many studies have been undertaken on this topic, only a few have been devoted to developing countries. Studies of exchange rate pass-through (ERPT), especially for small open economies, show that incomplete pass-through is the most common result ofthe relationship between export prices and the exchange rate.

Johansen 's co-integration test was used to determine the long-run relationship between the variables tested. Where we could not perform the Johansen co-integration test because we had one stationary variable, the ARDL (autoregressive distributed lag) approach to …

Principles Of Labor Market Information, James F. Woods, Christopher J. O'Leary

Employment Research Newsletter

No abstract provided.

How Much Should Foreign Talent Be Paid?, Manoj Thulasidas

Research Collection School Of Computing and Information Systems

Singapore needs foreign talent — and there’s no need to feel bad about it. It is a statistical fact of life. For every top Singaporean in any field — be it science, medicine, finance, sports or whatever — we will find about 500 professionals of equal calibre in China and India. Not because we are 500 times less talented, just that they have 500 times more people.

From Governance To Political Economy: Insights From A Study Of Relations Between Corporations And Workers, Harry W. Arthurs, Claire Mumme

Osgoode Hall Law Journal

This study explores four postwar attempts to re-imagine the role of workers within the corporation and especially their relation to the processes of corporate governance. Employees have been variously conceptualized as "citizens at work," whose rights of association, speech, assembly, and due process can be secured through collective bargaining; as "stakeholders," whose interests are entitled to consideration analogous to those of corporate shareholders; as "human capital," worth preserving and enhancing through enlightened employment policies and practices; and as "investors"-actual holders of corporate equity through pension funds and other vehicles. Despite the descriptive power and normative appeal of these approaches, each …

A Corrected Plug-In Method For Quantile Interval Construction Through A Transformed Regression, Zhenlin Yang, Yiu Kuen Tse

Research Collection School Of Economics

We propose a corrected plug-in method for constructing confidence intervals of the conditional quantiles of an original response variable through a transformed regression with heteroscedastic errors. The interval is easy to compute. Factors affecting the magnitude of the correction are examined analytically through the special case of Box-Cox regression. Monte Carlo simulations show that the new method works well in general and is superior over the commonly used delta method and the quantile regression method. An empirical application is presented. [PUBLICATION ABSTRACT]

Estimation Of Impulse Response Functions Using Long Autoregression, Pao Li Chang, Shinichi Sakata

Research Collection School Of Economics

This article proposes an alternative methodology to estimate impulse response functions without imposing parametric restrictions. The impulse responses are estimated by regressing the series of interest on estimated innovations, which are the residuals obtained from a prior-stage ‘long autoregression.’ We establish the consistency and asymptotic normality of the proposed estimator. The proposed estimator is closely related to the estimator of Jordà (2005, American Economic Review 95, 161–182). Our large sample analysis, as a byproduct, establishes the asymptotic equivalence between Jordà's estimator and our estimator, and provides justifications for the statistical inference method used in Jordà (2005).

The Evolution And Utilization Of The Gatt/Wto Dispute Settlement Mechanism, Pao-Li Chang

Research Collection School Of Economics

This paper provides a theoretical framework of dispute settlement to explain the surge in blocking incidence of GATT panel reports during the 1980s and the variations in withdrawn incidence versus total disputes across different decades of the GATT regime. The study first suggests the role of the degree of legal controversy over a panel ruling in determining countries' incentives to block (appeal) a panel report under the GATT (WTO) regime. The study then analyzes the effects of political power on countries' incentives to use, and their interactions in using, the dispute settlement mechanism, when two-sided asymmetric information exists regarding panel …

Financial Variables As Predictors Of Real Output Growth, Anthony S. Tay

Research Collection School Of Economics

We investigate two methods for using daily stock returns to forecast, and update forecasts of, quarterly real output growth. Both methods aggregate daily returns in some manner to form a single stock market variable. We consider (i) augmenting the quarterly AR(1) model for real output growth with daily returns using a nonparametric Mixed Data Sampling (MIDAS) setting, and (ii) augmenting the quarterly AR(1) model with the most recent r -day returns as an additional predictor. We discover that adding low frequency stock returns (up to annual returns, depending on forecast horizon) to a quarterly AR(1) model improves forecasts of output …

Direction-Of-Change Forecasts For Asian Equity Markets Based On Conditional Variance, Skewness And Kurtosis Dynamics: International Evidence, Peter F. Christoffersen, Francis X. Diebold, Robert S. Mariano, Anthony S. Tay, Yiu Kuen Tse

Research Collection School Of Economics

Recent theoretical work has revealed a direct connection between asset return volatility forecastability and asset return sign forecastability. This suggests that the pervasive volatility forecastability in equity returns could, via induced sign forecastability, be used to produce direction-of change forecasts useful for market timing. We attempt to do so in an international sample of developed equity markets, with some success, as assessed by formal probability forecast scoring rules such as the Brier score. An important ingredient is our conditioning not only on conditional mean and variance information, but also conditional skewness and kurtosis information, when forming direction-of-change forecasts.

Indirect Inference For Dynamic Panel Models, Jun Yu

Research Collection School Of Economics

It is well-known that maximum likelihood (ML) estimation of the autoregressive parameter of a dynamic panel data model with fixed effects is inconsistent under fixed time series sample size (T) and large cross section sample size (N) asymptotics. The estimation bias is particularly relevant in practical applications when T is small and the autoregressive parameter is close to unity. The present paper proposes a general, computationally inexpensive method of bias reduction that is based on indirect inference (Gouriéroux et al., 1993), shows unbiasedness and analyzes efficiency. The method is implemented in a simple linear dynamic panel model, but has wider …

Instrumental Variable Quantile Estimation Of Spatial Autoregressive Models, Zhenlin Yang

Research Collection School Of Economics

We propose an instrumental variable quantile regression (IVQR) estimator for spatial autoregressive (SAR) models. Like the GMM estimators of Lin and Lee (2006) and Kelejian and Prucha (2006), the IVQR estimator is robust against heteroscedasticity. Unlike the GMM estimators, the IVQR estimator is also robust against outliers and requires weaker moment conditions. More importantly, it allows us to characterize the heterogeneous impact of variables on different points (quantiles) of a response distribution. We derive the limiting distribution of the new estimator. Simulation results show that the new estimator performs well in finite samples at various quantile points. In the special …

The Casual Link Between Stock Returns And Trading Volume: Some Evidence From An Emerging Market, Abdul Rashid

Business Review

This paper investigates the dynamic association between daily stock index returns and percentage trading volume changes. To proceed with this, linear and nonlinear Granger causality tests are applied to the Karachi Stock Exchange (KSE) data. The analysis covers the span of about 5 years with 1266 daily observations. The same methodology is employed for two non-overlapping sub-periods to examine the robustness of the results. Unidirectional linear Granger causality from stock returns to trading volume is observed for the entire sample period and for both the sub-periods as well. The null hypothesis of linear Granger noncausality from percentage volume changes to …

New Mexico Labor Market Review 06-30-2007, New Mexico Department Of Labor

Historic Publications

The New Mexico Labor Market Review is a monthly publication presenting statistical data and analysis on labor market conditions throughout New Mexico. Issues examine statewide and regional trends in employment, unemployment, labor force estimates, industry activity, wages, occupational demand, and related economic conditions, often accompanied by feature articles on topics affecting the state’s economy. This issue covers May 2007.

Economic Scan And Workforce Development Profile: Barry, Branch, Calhoun, Kalamazoo, And St. Joseph Counties, Brad R. Watts, George A. Erickcek, Bridget Timmeney, Suprotik Stotz-Ghosh

Reports

No abstract provided.

Trade Liberalization, Economic Growth, And Poverty Reduction: Recent Evidence From Pakistan, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

Standard economic theory starting from Ricardo to the neoclassical model is quite clear about the benefits of trade between nations based on comparative advantage and relative factor endowments (Hecksher-Ohlin). The main conclusions of the free trade model are that all countries gain from trade and world output is increased; that the countries will tend to specialize in products that use their resources abundantly; and given identical technologies and production throughout the world, factor prices will equalize across trading countries. By enabling countries to move beyond their production possibility frontiers trade is assumed to stimulate growth by securing capital as well …

The Value Of Marine Institutions: An Economic Survey Of Marine Research And Education Institutions In Monterey And Santa Cruz Counties, Judith T. Kildow Dr, Nathaniel Miller

Publications

It is recognized that ocean and coastal areas of the United States contribute significantly to our nation’s overall economy. What is not completely understood is the extent to and manner in which our economy benefits from the wide range of marine and coastal activities. One area of the ocean economy that has not been collectively measured or examined is the contribution of marine research and education institutions. The goal of the project was to create a prototype strategy at a local level for collecting data at a national level, in order to create an economic sector of these institutions and …

South Dakota Agricultural Land Values And Cash Rental Rates: 2007, Burton Pflueger, Larry Janssen

Economics Commentator (1972- 2016)

No abstract provided.

[Introduction To] The Wealth Of Nations, Adam Smith, Jonathan B. Wight

Bookshelf

The Wealth of Nations is a treasured classic of political economy. First published in March of 1776, Adam Smith wrote the book to influence a special audience - the British Parliament - and its arguments in the early spring of that year pressed for peace and cooperation with Britain's colonies rather than war.

Smith's message was that economic exploitation, through the monopoly trade of empire, stifled wealth-creation in both home and foreign lands. Moreover, protectionism preserved the status quo, and privileged a few elites at the expense of long run growth.

Smith wrote, "It is the industry which is carried …

Cost Changes For Cattle Operations, Matthew A. Diersen

Economics Commentator (1972- 2016)

No abstract provided.

Understanding Declining Mobility And Interhousehold Transfers Among East African Pasoralists, Marieke Huysentruyt, Christopher B. Barrett, John G. Mcpeak

Economics - All Scholarship

We model interhousehold transfers between nomadic livestock herders as the state-dependent consequence of individuals' strategic interdependence resulting from the existence of multiple, opposing externalities. A public good security externality among individuals sharing a social (e.g., ethnic) identity in a potentially hostile environment creates incentives to band together. Self-interested interhousehold wealth transfers from wealthier herders to poorer ones may emerge endogenously within a limited wealth space as a means to motivate accompanying migration by the recipient. The distributional reach and size of the transfer are limited, however, by a resource appropriation externality related to the use of common property grazing lands. …

Rhode Island Current Conditions Index — June 2007, Leonard Lardaro

The Rhode Island Current Conditions Index

No abstract provided.

Cost Estimating Certifications Offered By Professional Societies In The United States And Abroad, Donald S. Remer, Karen Ahle, Kevin Alley, John Silny, Karen Hsin, Elijah Kwitman, Allison Hutchings

All HMC Faculty Publications and Research

Many projects in industry and government go over budget and schedule. In most engineering economics courses, the emphasis is on how to compare alternatives and learn about time value of money and interest and inflation rates. The students are usually given the costs and asked to compare the alternatives. However, this is the easy part of the analysis. The hard part of real project evaluations is developing the cost and investment numbers to do the engineering economics analysis. In most engineering economic textbooks, there is at most one chapter on cost estimation. More and more companies and government organizations are …

The Challenge Of Community Work In A Global Economy, Howard Karger, Christian Iyiani, Pat Shannon

The Journal of Sociology & Social Welfare

This article examines how and why five major stakeholders-international financial organizations; NGOs; governmental entities; multinational corporations; and community development projects- have failed to significantly and uniformly reduce aggregate global poverty. The article uses the results of a case study of HIV/ AIDS prevention in a low-income Nigerian city to argue that effective action must involve local and global stakeholders in collaborative partnerships. It concludes by discussing the critical role of facilitators in such partnerships.

Robust Virtual Implementation, Dirk Bergemann, Stephen Morris

Cowles Foundation Discussion Papers

In a general interdependent preference environment, we characterize when two payoff types can be distinguished by their rationalizable strategic choices without any prior knowledge of their beliefs and higher order beliefs. We show that two payoff types are strategically distinguishable if and only if they satisfy a separability condition. The separability condition for each agent essentially requires that there is not too much interdependence in preferences across agents. A social choice function — mapping payoff type profiles to outcomes — can be robustly virtually implemented if there exists a mechanism such that every equilibrium on every type space achieves an …

Exact Distribution Theory In Structural Estimation With An Identity, Peter C.B. Phillips

Cowles Foundation Discussion Papers

Some exact distribution theory is developed for structural equation models with and without identities. The theory includes LIML, IV and OLS. We relate the new results to earlier studies in the literature, including the pioneering work of Bergstrom (1962). General IV exact distribution formulae for a structural equation model without an identity are shown to apply also to models with an identity by specializing along a certain asymptotic parameter sequence. Some of the new exact results are obtained by means of a uniform asymptotic expansion. An interesting consequence of the new theory is that the uniform asymptotic approximation provides the …

Tilted Nonparametric Estimation Of Volatility Functions With Empirical Applications, Peter C.B. Phillips, Ke-Li Xu

Cowles Foundation Discussion Papers

This paper proposes a novel positive nonparametric estimator of the conditional variance function without reliance on logarithmic or other transformations. The estimator is based on an empirical likelihood modification of conventional local level nonparametric regression applied to squared mean regression residuals. The estimator is shown to be asymptotically equivalent to the local linear estimator in the case of unbounded support but, unlike that estimator, is restricted to be non-negative in finite samples. It is fully adaptive to the unknown conditional mean function. Simulations are conducted to evaluate the finite sample performance of the estimator. Two empirical applications are reported. One …