bluuebunny/crossref_metadata_2025 huggingface dataset:
Fertility rates and the socio‐economic environment in Missouri
Authors: Manning Linda M. , Samarayanake V.A.
Published: June 2007

In order to understand the impact of economy‐wide socio‐economic
forces on fertility, examines economies which are homogeneous with
respect to political, cultural and historical character, which also
contain subsectors characterized by socioeconomic diversity. First looks
at previous research on fertility and then uses Missouri as a
representative example of such an economy.
Transitional paradigms to a new world economic order
Authors: Calkins Peter , Vézina Marc
Published: June 2007

Discusses the meaning of the term new world order (NWO) and defines its economic dimensions. Identifies three common principles of any workable NWO: material, social and spiritual dimensions. Links these dimensions in an analytical framework. Reviews the literature on the theories and concepts which further our understanding and identification of societal ideals. Describes ways to integrate the social and spiritual dimensions into production, consumption and exchange. Attempts to link the ideals of a NWO with the potential behaviour of corporations to create a smoother transition towards sustained global welfare.
The knowledge economy and the social economy
Authors: MacLeod Greg , McFarlane Bruce , Davis Charles H.
Published: June 2007

Posits that most contemporary interest in the university‐industry linkages stems from a concern to increase the birth rate of new technology‐based firms and/or the velocity with which indigenous scientific capability is translated into commercial technologies. Notes that many analysts of science parks and silicon valleys argue that this kind of knowledge‐based innovation requires cosmopolitan economic and social milieux with good communication links, easy access to air transport, highly educated workers and sophisticated cultural amenities. Argues that on the receiving end of contemporary innovation systems are indigenous and other disempowered groups and economically depleted communities with little stake in scientific and technical advancement and virtually no involvement in the policy or social networks set up to steer the knowledge system. Describes an experiment to discover processes by which marginalized, economically distressed communities can use institutions of the “knowledge economy” to foster the social and technological innovation necessary for their survival. Joins the University College of Cape Breton with universities in Mexico to form structured relationships with communities on Cape Breton Island and with a Mayan community on the Yucatán Peninsula. Bases techniques on searching for economic opportunities, construction of community business organizations, training, community development and supportive aftercare services to provide the three components of community economic regeneration: finance, technology and formation. Works to find ways to use the dynamics of triple helix innovation to construct knowledge systems that work in favour of the peripheral communities threatened by trade liberalization and the decline of resource regions. Specifically asks how can the institutions of the “knowledge economy” contribute to the development of a local sub‐economy that supports local businesses? Employs a social economy approach to the establishment of community businesses, differing from others in the community business movement in the belief that the “knowledge economy” can provide resources and eventual economic and social survivability to distressed regions. Argues that economic regeneration among marginal groups requires: access to improved production and organizational technologies; that universities can provide this access, especially in distressed communities; a transfer system usually has to be established; specific steps must be taken to establish new community businesses; and a maintenance system with specific characteristics must be established.
Discount rates and sustainability
Authors: Quiggin John
Published: June 2007

Reviews the discount rate controversy, and examines sustainability theory and optimal growth theory, tracing the rise in prominence of the former and the decline of the latter. Presents the rule‐of‐thumb interpretation of sustainability criteria, and proposes a utilitarian approach, discussing its implications for uncertainty, discounting and social welfare.
Role of Mercosur in regional trade growth
Authors: Anaam Hashmi M.
Published: June 2007

Outlines the development of Mercosur (South American economic bloc) and considers the assertion that it protects inefficient Brazilian industries and has failed to create extra trade. Analyses selected 1990‐1997 data for Brazil, Argentina, Paraguay and Uruguay to show that trade and foreign investment have increased since its formation in 1991; and compares the impact on trading patterns and trade balances for all four countries. Admits that Mercosur has some way to go in establishing a common market and has not increased exports to the rest of the world to the extent expected, but regards it as a qualified success.
North American free trade agreement with a focus on the US states’ participation and Mexico
Authors: Damanpour Faramarz
Published: June 2007

Outlines the underlying rationale for the North American Free Trade Agreement (NAFTA) between Canada, Mexico and the USA; and evaluates its impact from 1987 to 2000. Examines statistics on trade between the three countries and discusses changes in trade patterns and growth rates, providing a breakdown of US exports by state and industry. Shows an improved pattern and volume of trade, considers the impact on employment and admits that assessment of NAFTA’s costs and benefits is difficult. Sees Mexico as its main beneficiary so far, but predicts that this will change in the long run.
The impact of the failure of Continental Illinois and the too‐big‐to‐fail doctrine on changes in operating efficiency
Authors: Black Harold A. , Cary Collins M. , Robinson Breck L.
Published: June 2007

Outlines the US development of the “too‐big‐to‐fail” (TBTF) doctrine following the collapse of the Continental Illinois Bank, reviews relevant research and explores the impact on the efficiency of the banking system. Uses 1983‐1985 call report data, explains the methodology and presents the results, which analyse economies and diseconomies of scope and scale between different types of loans; and levels of inefficiency for TBTF and non‐TBTF banks. Shows that TBTF banks had the greatest increase in inefficiency following Continental’s failure but reduced this in the following year, as did small banks which did not benefit from complete depository coverage. Confirms that the TBTF doctrine increased stability for all banks, but particularly those covered by the doctrine.
An overview of the market for risk management products
Authors: Ang James , Fatemi Ali , Popiela Mark
Published: June 2007

Outlines the development of risk management products, reviews relevant research and identifies reasons for their rapid growth. Reports a study of US public issues of securities from 1962 to 1998 which examines the introduction and longevity of various types; and analyses the issuers and leading underwriters for each and the countries involved. Confirms the important role of banks and financial institutions in the market and shows that Europe is the leading area for the issue of currency securities and demand for both these and interest rate securities. Adds that Japanese underwriters lead in currency securities and US underwriters in interest rate securities. Provides a glossary of technical terms.
Risk management practices of German firms
Authors: Fatemi Ali , Glaum Martin
Published: June 2007

Identifies some gaps in corporate risk management research and presents a study of risk management practices in large, non‐financial German firms. Compares the perceived relevance of different types of risk with the intensity of their management and reports that no respondents admitted major difficulty in developing a risk management system. Finds that firm survival is rated as the top goal of risk management, that respondents are closer to risk‐neutral than risk‐averse for financial risks, that around half centralize treasury management and 88 per cent use derivatives. Ranks the types of derivatives used and the importance of associated problems; shows how foreign exchange risk, US $ exposure and interest rate risk are managed; and assesses attitudes towards foreign exchange and interest rate risk management. Considers consistency with other research and calls for more.
Is a currency board an answer to Asia’s currency crisis?
Authors: Park Kang H.
Published: June 2007

Contrasts the stability of Hong Kong’s currency with the fall of other Asian currencies during the 1997‐1998 crisis and asks whether a Hong Kong‐style currency board could help other Asian countries. Discusses the underlying causes of the crisis and compares it with the currency crises of the European Monetary System (1992‐1993) and Mexico (1994‐1995). Considers the advantages and disadvantages of a currency board but concludes that most Asian countries have insufficient foreign reserves, wage/price flexibility or prosperity to benefit from having one.
Evaluation of research on Chinese accounting issues
Authors: Ji Xu‐Dong
Published: June 2007

Outlines the history of accounting in China and reviews the literature published in English on the full range of Chinese accounting issues. Summarizes the contents of three books, refers to sections in other books and analyses journal articles by period, journal, research topic and research method. Argues that this accounting research has historical, academic and practical value,believes it will continue to improve and calls for greater use of more rigid research methodologies in this area.
Asian financial crisis and accounting reforms in China
Authors: Jun Lin Z , Chen Feng
Published: June 2007

Outlines economic and accounting reforms in China since the late 1970s and assesses the impact of the 1997 Asian financial crisis on them. Suggests that although China escaped the recession suffered by neighbouring countries, it still has a high risk of financial crisis/recession and enumerates the reasons why. Explains the steps taken by the government to reduce the risk, including reforms aimed at the standardization of accounting practices and improved reliability and comparability of financial information. Discusses the nine practical accounting standards issued between May 1997 and July 1999, which are in line with international standards and summarizes the reforms to enhance the independent status of public practitioners and the auditing standards issued so far. Identifies six remaining problems in the process of accounting reform but believes it is on the right track.
Accounting reforms in China: a transition from a state plan and control‐oriented system to capital market‐oriented system
Authors: Tang Qingliang , Lau Amy
Published: June 2007

Compares China‘s financial reporting systems before and after the reforms of 1993, which is seen as a dramatic turning point. Analyses the economic factors driving accounting reforms and examines in more detail the influence of the developing capital market and increasing foreign investment. Tabulates the differences between the format, contents and types of financial statements and disclosures and financial ratios, before and after reform. Gives examples of some remaining problems, summarizes the key features of the new system and urges Chinese accountants and policy makers to adjust Western principles and systems to the unique environment of China.
Using genetic programming to design a generalized trading system
Authors: Bauer Richard J. , Gregory Fitz‐Gerald F.
Published: June 2007

Lists eight criteria for designing a general trading system for investment, explains how the five steps of genetic (computer) programming work in practice and shows how they can be applied to identify trading rules for a particular stock and stock screening rules for portfolio formation. Warns of some potential problems but believes the system described meets the eight criteria set and is easy to implement.
Value weighting and simple optimization of portfolios: an empirical examination
Authors: Dye Richard T. , Groth John C.
Published: June 2007

Reviews the previous research on the management of portfolio investment and compares the performance of a typical small investor’s portfolio of nine popular stocks (optimized portfolio) with a value‐weighted portfolio (VW), using 1992‐1997 US data. Explains how the portfolios were derived on a rolling basis from the previous 30 months’ data, using four risk levels for the optimized portfolios (OPs). Shows that as risk aversion increases for OPs, minimum returns tend to decrease but average returns increase; but that VW provides superior returns with less volatility. Considers the underlying reasons for the results, concludes that diversification is important even when small numbers of stocks are involved; and suggests some avenues for further research.
Can moving average technical trading strategies help in volatile and declining markets? a study of some emerging Asian markets
Authors: Ahmed Parvez , Beck Kristine , Goldreyer Elizabeth
Published: June 2007

Outlines previous research on stock market efficiency and technical trading rules in both developed and emerging markets. Uses variable moving average (VMA) models to develop five technical trading rules and applies them to markets in Taiwan, Thailand and The Phillippines 1994‐1999. Compares results with the US and Japan indices and a simple buy and hold strategy. Finds the VMA rules gave higher returns in Taiwan and very much higher returns in Thailand and The Phillippines, even after transaction costs, but not in Japan and the USA. Considers the reasons why and calls for further research.
Celebrity performance and endorsement value: the case of Tiger Woods
Authors: Farrell Kathleen A. , Karels Gordon V. , Montfort Kenneth W. , McClatchey Christine A.
Published: June 2007

An interesting issue little explored in the celebrity endorsement literature is whether or not the activities of a celebrity endorser affect company performance. We examine the impact of Tiger Woods’s tournament performance on the endorsing firm’s value subsequent to the contract signing. We do not find a relationship between Tiger’ss tournament placement and the excess returns of Fortune Brands (parent of Titleist). This is likely due to Titleist being a very small contributor to the total market value of Fortune Brands. We also fail to find a significant relationship for American Express suggesting the market does not view a golfer endorsing financial services as credible. We do, however, find a positive and significant impact of Tiger’s performance on Nike’s excess returns suggesting that the market values the additional publicity that Nike receives when Tiger is in contention to win.
Real ploughback earnings as an indicator of enterprise performance: FAS no. 33 disclosures revistited
Authors: Farrell Kathleen A. , Karels Gordon V. , Montfort Kenneth W. , McClatchey Christine A.
Published: June 2007

Existing and potential investors are vitally interested in the improvement of their wealth prospects. Receipt of cash, whether in the form of cash dividends or capital gains, represents fulfilment of this expectation. Such fulfilment is only possible when an enterprise registers growth in its resource base. Reported income is considered a good indicator of success achieved by an enterprise because it represents increase in available resources. An important link between reported income and stock prices is the link between future earnings and current earnings. This study utilizes data from FAS No. 33 to develop real ploughback measure indicating a firms ability to continue its operations successfully and to enhance its future earnings potential. The results of the study show that the market uses sophisticated models in evaluating the signal contained in ploughback earnings.
Insider response to credit watch placements
Authors: Yook Ken , Hudson William C. , Cole Steven , Gangopadhyay Partha
Published: June 2007

An examination of insider trading before and after the announcement of Credit Watch placements sheds new light on the study of both bond rating changes and insider trading. This paper utilizes Credit Watch placements classified by 11 indentifiable trigger events for the years 1981‐1990. We find significant insider purchases before positive implication placements, but no sales before negative implication placements. Among individual trigger events, we observe significant insider purchases before and after placements due to improved operating performance, bidding on a firm with a higher debt rating and firms increasing their debt‐to‐equity ratios. Significant insider purchases are found before placements due to purchasing assets. Significant insider sales are found before and after placements due to poor operating performance.
Econometric modelling of UK executive compensation
Authors: Conyon M.J. , Peck S.I. , Sadler G.
Published: June 2007

Looks briefly at theories underlying the correlation between company performance and executive compensation, develops a mathematical model and applies it to results which show a significant positive link between the highest paid director’s compensation and total shareholder returns, but not with earnings per share. Considers consistency with other research, notes the influence of company size on executive pay and calls for further research on this important issue of corporate governance.
Governance in financial mutuals
Authors: Baker A. , Thompson S.
Published: June 2007

Summarizes the reasons for and methods of regulation in worldwide capital markets; and describes in detail the development, governance and regulatory structure of the Warsaw stock exchange (Poland). Uses a variance ratio approach based on Lo and MacKinlay (1988, 1989) to examine price behaviour in the exchange from 1991 to 1995, shows that it is not a random walk market and puts forward possible explanations for its market inefficiency. Considers the implications for the Polish economy and suggests that public policymakers could tighten securities laws and exchange rules to improve the efficiency of this emerging capital market.
The occurrence of Finobacci numbers in time series of financial accounting ratios: Anomalies or indicators of firm survival, bankruptcy and fraud? An exploratory study
Authors: Amershi A.H , Feroz E.H
Published: June 2007

Conducts an exploratory analysis of the probability distribution of the ratio total debt/total invest capital, to determine if the occurrence of the Finobacci golden mean and ratio, as possible values of this ratio, are random or indicative of firm survival. Uses highly technical mathematical and algebraic explanatory means to emphasize points. Adopts the use of figures and tables to aid explanation. Concludes that, although some progress has been made, more sophisticated analysis is required.
Auditors’ ethical sensitivity and the assessment of the likelihood of fraud
Authors: Abdolmohammadi M.H , Owhoso V.D
Published: June 2007

Describes the objectives herein as examining auditors’ ethical sensitivity to assess risk of fraud in financial reporting. Gives background literature as the opening section, and this is followed by a section in which the investigation method is described, study results are then discussed, followed by a summary and conclusions. Looks at case studies of bribery scandals, etc. and discusses ethics and auditing. Sums up that ethical scenarios examined herein, perhaps, contain external economies ‐ but not external diseconomies.
The investment opportunity set: determinants, consequences and measurement
Authors: Kallapur Sanjay , Trombley Mark A.
Published: June 2007

Explains the concept of the investment set (IOS: i.e. chances to invest for expansion, new products, cost reduction etc.) and its effects on firm value. Reviews previous research on the theoretical relationships between IOS and optimal contracting resulting from shareholder/debtholder conflict, agency costs and performance measurement problems; and empirical research on its links with company policy on financing, dividends and compensation. Goes on to discuss research on measuring IOS by using various proxies; and summarizes the main findings.
Investment opportunity sets, accounting‐based regulatory contracts, and accounting discretion
Authors: McLelland Malcolm J.
Published: June 2007

Refers to previous research to suggest that US commercial bank managers use discretion to “manage” regulatory capital and that accounting discretion can influence a bank’s investment opportunity set (IOS) and therefore its share price. Challenges the assumption that using accounting discretion to manipulate contracting variables will only result in a redistribution of wealth. Develops a mathematical model based on Feltham and Ohlson (1995) and uses it to explore the bank manager’s optimal investment in risky assets, the constraint on investment choice produced by minimum regulatory capital requirements and how accounting discretion can reduce this. Shows that regulatory requirements do constrain a bank’s IOS but that discretion (e.g. over loan loss provisions) can only mitigate this if dividend and financing policies depend on the discretionary components.
The association between the investment opportunity set and corporate financing and dividend decisions: some Australian evidence
Authors: Jones Stewart , Sharma Rohit
Published: June 2007

Summarizes previous research on the investment opportunity set (IOS) using price‐based and investment‐based proxies and variance measures; and develops hypotheses on the relationship between IOS, debt/equity ratios and dividend policies. Tests them on 1990‐1998 data from listed Australian companies and explains the methodology, which builds on Gover and Gover (1993) by including more recent proxy variables. Finds no significant results from low growth firms, although some high growth firms show lower debt/equity ratios and dividends. Questions the robustness of existing IOS proxies in the Australian context and calls for further research.
A study of using artificial neural networks to develop an early warning predictor for credit union financial distress with comparison to the probit model
Authors: Tan Clarence N.W. , Dihardjo Herlina
Published: June 2007

Outlines previous research on company failure prediction and discusses some of the methodological issues involved. Extends an earlier study (Tan 1997) using artificial neural networks (ANN) to predict financial distress in Australian credit unions by extending the forecast period of the models, presents the results and compares them with probit model results. Finds the ANN models generally at least as good as the probit, although both types improved their accuracy rates (for Type I and Type II errors) when early warning signals were included. Believes ANN “is a promising technique” although more research is required, and suggests some avenues for this.
Lessons learned from industry: applying capacity planning in an institution for higher education
Authors: Johnson Dana M.
Published: June 2007

Outlines previous research on capacity planning and considers how the underlying ideas can be applied to higher education institutions (HEIs). Illustrates the components of operational and capacity plans for an HEI, pointing out the differences from and similarities to the manufacturing and service sectors; and discusses various components of the capacity plan (e.g. classroom utilization, enrolment, scheduling etc.) in more detail. Believes that this approach to resources would improve on the present US system where external pressures (e.g. politicians, donors etc.) rather than need may determine expansion, but recognizes the practical barriers to this and calls for further research.
Developing an instrumental capacity model for industry
Authors: Bayou Mohamed E.
Published: June 2007

Discusses the difficulties of measuring, defining and managing capacity; and develops a model which splits it into two components (resource and ability) plus several sub‐components, and recognizes the interfaces between them. Illustrates and defines the sub‐components and identifies three states of capacity loading: resource‐loaded (over‐resourced), ability‐loaded (e.g. over‐qualified staff) and even‐capacity (i.e. resources compatible with ability). Asserts that the relative capacities of firms within an industry form a “capacity curve” with ability‐loaded small firms, medium firms at even capacity and large firms resource‐loaded. Analyses 1994‐1997 data for the US electronics and electrical equipment industry to plot its capacity curve, explains the methodology used, and shows how the regression model can be applied to individual firms within the industry to improve capacity management. Recognizes the limitations of the study.
Risk analysis of bond mutial funds: a case study in the Greek financial market
Authors: Artikis Panayiotis G.
Published: June 2007

Argues that the Greek secondary bond market (opened in March 1999) needs a specific index to approximate its market portfolio for measuring systematic risk (beta) since the Athens Stock Exchange (ASE) index may be misleading. Puts forward a weighted index and explains the five steps involved in its construction. Tests the index, using data fro the first six months of the bond market’s operation, finds it a good approximation; and shows that in conjunction with the ASE index it improves the explanatory power of the capital asset pricing model.
Evaluation of balanced mutual funds: the case of the Greek financial market
Authors: Artikis George P.
Published: June 2007

Assesses the 1995‐1998 performance of ten domestic balanced mutual funds in the Greek financial market using daily net asset value per unit. Ranks them on the basis of daily average return, total risk, coefficient of variation, systematic risk, Treynor’s index, Sharpe’s index and Jensen’s alpha. Shows that their risks and returns were lower than the Athens Stock Exchange index, that they followed defensive investment policies, that some achieved high returns with low risk and that there was some variation of ranking according to the techniques used.
E‐business e‐commerce evolution: perspective and strategy
Authors: Damanpour Faramarz , Damanpour Jamshid Ali
Published: June 2007

Cites survey evidence that many firms undertaking e‐commerce projects do not appraise or evaluate them in traditional ways and discusses how businesses can deal with the many perspectives involved. Illustrates the “four faces of e‐business”, lists its benefits and considers seven legal/regulatory issues which require review in this context. Identifies three critical success factors for e‐business, shows some international growth forecasts and compares three financing models for e‐services. Briefly describes how some companies deal with security on the internet, sees e‐business as “imperative” for business success and warns that, although no single strategic model fits all companies, a strategy must be developed to avoid reducing returns on investment.
Multimedia content on the web: problems and prospects
Authors: Anaam Hashmi M. , Guvenli Turgut
Published: June 2007

Outlines the technological problems which make it hard to deliver high quality video over the internet, e.g. insufficient bandwidth, clients’ machines etc.; and considers how they might be solved. Describes how digital video, audio presentations and animations can be streamed to a computer and the ways in which various US sectors are actually using streaming media at the moment. Discusses the future for multimedia applications in corporate training, e‐business and higher education; and predicts they will be very widely used as the technology improves.
Electronic commerce: current and future practices
Authors: Karakaya Fahri , Charlton Earl T.
Published: June 2007

Tabulates the numbers of internet users in various countries and assesses the size of the e‐commerce economy in the USA. Discusses the reasons why consumers use the internet, the issues of customer service and product delivery/return, what they buy online and how their concerns over privacy and security might be solved. Notes that business‐to‐business e‐commerce still accounts for most online transactions, predicts continued growth in this area and looks at the use of both intranets and extranets. Briefly considers various technical and other aspects of the internet’s future and sees it as impossible to ignore but warns that not all types of business can be successful online.
Impact of Internet on financial services industry: a case study of on‐line investing
Authors: Unsal Fahri , Movassaghi Hormoz
Published: June 2007

Outlines the internet’s contribution to the US economy with particular reference to the growth of online investing since 1994. Presents a study of the factors leading to this growth and its impact on the industry. Tabulates the market shares and stock commissions of the top ten online brokers, discusses their competitive strategies and identifies their key growth drivers. Suggests that they examplify McNair’s (1978) “wheel of retailing” by moving from a new, discounted service to a range of services like those of traditional brokers. Considers the online industry’s current problems (technical, legal, regulatory etc.), gives some advice on choosing an online broker and ranks the top ten by various criteria. Predicts that customers will benefit from increasing competition in the future and that the most successful firms will be middle‐tier ones offering a good combination of cost and service.
The near‐term financial performance of capital expenditures: a managerial perspective
Authors: Kim Sungsoo
Published: June 2007

Notes that although previous research has found capital expenditure to be value relevant, there has been no direct evidence that it has a positive linear association with future earnings. Uses 1976‐1989 data from a sample of US manufacturing firms to examine this link and finds that firms do not systematically invest in earnings increasing projects. Shows that firms without future losses (“winners”) had a positive association between capital expenditure and future earnings but those with losses (“losers”) had a negative one; and that if losses are excluded, capital expenditure generally gives positive information about future earnings. Considers consistency with other research, the limitations of the study and avenues for further research.
The euro’s progress: macroeconomic consequences of a single currency
Authors: Soper John C.
Published: June 2007

Puts the decline of the euro’s value following its introduction down to rapid US economic growth and the expansionary policies of the European Central Bank. Contrasts popular UK opposition to joining the euro with business pressure to do so, and suggests that the five stated conditions for entry have almost been met. Looks at economic conditions in other European countries and compares growth rates, unemployment, inflation and capital movements in the UK, USA and the eurozone. Outlines some views on the likely future of the euro and its effects on other currencies; and concludes that the macroeconomy of the eurozone “will bear continued watching”.
European banking after the euro: progress and problems
Authors: Templeton William , Clark Robert
Published: June 2007

Discusses the changes in European banking since the introduction of the euro, providing statistics on mergers and acquisitions (mostly domestic) and their effects on assets both inside and outside the eurozone. Considers the factors which make cross‐border mergers less attractive, the effect of consolidation on costs, and the impact of the euro on foreign exchange earnings, debt markets and cash management systems. Concludes that although banks are becoming more competitive with each other and with other financial services companies, national barriers to further integration of the financial services market remain.
Earnings management: a perspective
Authors: Beneish Messod D.
Published: June 2007

Compares three definitions of earnings management used by accounting researchers and three methods of estimating it: aggregate accruals, specific accruals and discontinuities in earnings distribution. Discusses evidence relating to the reasons for income‐increasing earnings management, income‐decreasing earnings management and specific contexts, e.g. financial institutions with regulatory constraints. Concludes that, although the evidence is limited, managers are more likely to manipulate income up rather than down; and identifies some opportunities for further research.
The impact of free cash flow, financial leverage and accounting regulation on earnings management in Australia’s “old” and “new” economies
Authors: Jones Stewart , Sharma Rohit
Published: June 2007

Outlines the rapid growth of “new economy” companies in Australia and compares their levels of earnings management with “old economy” firms, using data on all Australian listed companies. Reviews the relevant research, explains the methodology and presents the results. Shows that the old economy firms do engage in significant earnings management which is positively associated with leverage and free cash flow levels but, surprisingly, that this is far less evident in the new economic sector. Considers consistency with other research, the underlying reasons for the findings (including regulatory constraints) and opportunities for further research.
The impact of multinationality on the informativeness of earnings and accounting choices
Authors: Riahi‐Belkaoui Ahmed , Picur Ronald D.
Published: June 2007

Discusses three theories on the link between multinationality and investment value (internalization, imperfect world capital markets and managerial objectives) and develops hypotheses on its relationship with the informativeness of accounting earnings and levels of discretionary accruals. Tests them on 1994‐1998 data from a sample of US multinationals using regression techniques; and presents the results which suggest that the level of multinationality is positively related to the magnitude of discretionary accruals and to the informativeness of accounting earnings.
An investigation of the linkages between European Union equity markets and emerging capital markets: the East European connection
Authors: Dockery E. , Vergari F.
Published: June 2007

Outlines previous research on cointegration between capital markets and assesses the degree of cointegration between liberalized Eastern European markets (the Czech Republic, Poland and Hungary) and the German and UK markets in the context of increasing foreign investment in Eastern Europe. Uses 1991‐1995 weekly indices to examine stock returns, performing several different tests, and suggests (in contrast to previous findings) that the markets are co‐ordinated for the whol study period. Briefly considers the implications for investment portfolio diversifaction and short‐run investment strategies.
Further evidence on the forecasting performance of two factor continuous time interest rate models in international and Asia‐Pacific financial markets
Authors: Byers S.L. , Ben Nowman K.
Published: June 2007

Refers to previous research on the empirical testing of continuous time, two factor short rate interest models by Chan, Karolyi, Longstaff and Sanders (1992), Vasicek (1997) and Cox, Ingersoll and Ross (1985); and the Nowman (1997, 2000) Gaussian estimation approach. Applies these ideas to monthly interbank and Euro‐currency data for a variety of periods and currencies to compare the explanatory/forecasting power of each model with the unrestricted model. Presents the results which show that volatility levels and forecasting performance vary for the models and markets tested.
An international comparison of pricing callable and puttable bonds in international financial markets
Authors: Nowman K.B. , Sorwar G.
Published: June 2007

Outlines recent research on short term interest rate models and applies Baron‐Adesi et al’s (1999) Box method to value default free bonds and contingent claims. Uses Episcopo’s (1999) historical interbank estimates of the Chan, Karolyi, Longstaff and Sanders (1992) model for Australia, Belgium, Germany, Japan, the Netherlands, New Zealand and Switzerland to calculate implied bond and contingent claim prices; and briefly discusses the results for each country. Finds both default free bonds and callable/puttable bond prices are sensitive to the interest rate model used.
The East Asian financial crisis: getting to the heart of the issues
Authors: Pilbeam K.
Published: June 2007

Gives and overview of the East Asian financial crisis, focusing on the seven countries most directly involved, and the underlying reasons for its magnitude. Examines the 1991‐1999 economic growth rates, inflation rates and current account positions in the area and asserts that the deterioration of macroeconomic fundamentals was insufficient to explain it. Relates a number of external factors in the crisis to some research models and argues that the poor regulation and control of the banking system, coupled with an inflow of foreign investment, which investors wrongly believed to be government guaranteed, caused a “bubble” in share and property prices. Describes the collapse of companies, currency values and share/property prices which followed, exacerbated by a panicky withdrawal of foreign funds, speculative activity and government policy errors. Lists the objectives of and instruments used by the IMF programme and asks if it was too harsh e.g. on bank closures. Considers the lessons of the crisis and its implications for the Basle capital adequacy rules and the imposition of capital controls.
Culture, finance and markets in Saudi Arabia
Authors: Alam Choudhury Masudul , Al‐Sakran Sulaiman A.
Published: June 2007

Explains how the adoption of Islamic law (Shariah) theoretically affects a political economy, why it requires the abolition of interest rates as a price for money and how this is achieved. Takes Saudi Arabia as an example of a Muslim country governed by Shariah and investigates how far it accords with theory. Argues that equity financing (including non‐interest bearing government bonds) has helped to finance growth and insulated the stock market from speculative financing. Looks at statistics on the financial structures, assets and loans of Saudi banks (including joing ventures with foreign banks) and concludes that they have “done well” in implementing Islamic principles; and that interest‐free financing is appropriate for this country.
Leverage determinants in the absence of corporate tax system: the case of non‐financial publicly traded corporations in Saudi Arabia
Authors: Al‐Sakran Sulaiman A.
Published: June 2007

Reviews previous research on the factors affecting the proportions of debt and equity used to finance firms, describes the Saudi Arabian tax system (based on net worth) and stock market; and examines the capital structure 1993‐1997 of a sample of 35 publicly traded Saudi companies. Uses multi‐linear regression models to investigate the relationships between capital structure and other variables in 5 sectors and illustrates their varied leverage ratios. Discusses and analyses the positive links between leverage ratios, firm size and share of government ownership; and negative links with growth, return on assets and profitability margin.
An epistemological approach to evaluating a financial index of profitability and wellbeing: the case of Islamic instruments in National Commercial Bank, Saudi Arabia
Authors: Alam Choudhury Masudul , Al‐Hallaf Hasan M.
Published: June 2007

Asserts that the world needs to integrate economic issues with social demands and discusses ideas on the unity of knowledge (including Islamic theories). Develops a string model of the process of unification as seen by the Koran and applies it to the Islamic financing division of a Saudi Arabian bank to show how it can produce an “interactive financial index” encompassing social well‐being, economic development and financial profitability. Claims that this could not be achieved in any other way and contrasts the Islamic approach with mainstream economic ideas. Assesses how the Islamic approach works in practice by looking at the bank’s portfolio and relating it to social well‐being and policy.
Superstardom and Institutional Investor’s All‐British Research Team
Authors: Cox Raymond A.K. , Kleiman Robert T.
Published: June 2007

Outlines previous research on the security analyst “superstar” phenomenon, including the stochastic model of Yule and Simon. Applies this to data on the 1986‐1997 selections for the Institutional Investor’s All‐British Research First Team (ABRT) and finds that it does not explain the distribution, i.e. that selection does appear to be based on skill rather than luck. Considers consistency with other research and expects future research to concentrate on the ABRT’s ability to forecast earnings per share and share prices.
Exoploring the benefits of international diversification and currency hedging for international fund portfolios
Authors: Papadamou Stephanos , Tsopoglou Stavros
Published: June 2007

Outlines previous research on international investment portfolios and presents a study of diversification and hedging on money market, bond and equity funds from UK, US and Japanese investors’ points of view. Explains the methodology, uses 1995‐1998 data to calculate returns and discusses the results. Suggests that foreign bonds and equities reduce exchange rate risk more effectively than money market instruments, although some of that risk is not diversifiable. Compares the benefits of diversification and hedging for investors in the three countries at different levels of risk and concludes that optimum asset allocation depends on the fund market characteristics, risk preferences and investor perspective.
The relationship between IPO returns and factors influencing IPO performance: case of Istanbul Stock Exchange
Authors: Banu Durukan M.
Published: June 2007

Reviews previous research on initial public offering (IPO) pricing and performance, classifying it by six hypotheses which are not mutually exclusive. Uses 1990‐1997 data on IPOs on the Istanbul Stock Exchange to test these hypohteses, explains the methodology and presents the results, which show initial abnormal returns (realized by investors), but no long run underperformance of the market. Analyses the factors affecting short and long run IPO returns, considers consistency with other research and supports the winner’s curse and the fads hypotheses. Concludes that initial abnormal returns are due to both deliberate underpricing and overvaluation by investors’ and that factors which decrease uncertainty lead to lower returns.
Foreign exchange risk and firm value: an analysis of US pharmaceutical firms
Authors: Chan Kam C. , Seow Gim S. , Tam Kinsun
Published: June 2007

Reviews previous research on the impact of changes in exchange rates on firm value and develops hypotheses on the effect of exchange rate exposure on US pharmaceutical firms 1990‐1999. Tests them using data from 523 firms (21 producing proprietary drugs and 32 generic) splite into two sub‐periods (1990‐1994 and 1995‐1999) and explains the methodology. Finds that the proprietary drug producers were negatively affected by the rising US dollar value during the first sub‐period, but positively affected in the second; and that both generic and proprietary companies suffered a one‐month lagged negative effect. Considers the underlying reasons for this and consistency with other research; and calls for more research on the lagged relationship between stock returns and exchange rate risk.
The value impact of internationalization: theory and evidence, the French case
Authors: Martinez Isabelle
Published: June 2007

Outlines the three theories which link multinationality to share value (internalization, imperfect capital markets and managerial objectives), reviews the relevant research and hypothesizes that a multinational’s degree of internalization is positively related to its accounting value (q‐value). Tests this using 1994‐1998 data on French listed companies and presents the results which support the hypothesis, the existence of a size effect (smaller firms have higher q‐values) and leverage effect (higher debts are linked with lower q‐values), but sow no significance in the proportion of intangible assets; i.e. they support the imperfect capital markets theory but not the internalization theory. Considers consistency with other research and opportunities for further research.
Multinationality as a determinant of earnings persistence
Authors: Riahi‐Belkaoui Ahmed , Alnajjar Fouad K.
Published: June 2007

Summarizes previous research on the links between multinationality and earnings persistence and presents a study which applies the autoregressive, integrated, moving‐average time series model to 1990‐1999 data on the largest US multinationals. Explains the methodology and presents the results, which show a negative relationship between the level of multinationality and earnings persistence measures. Puts this down to a negative link between multinationality and performance; and reduced risk through international diversification and profit stabilization.
Do stock and home ownership influence US personal savings?
Authors: Amoateng Kofi A.
Published: June 2007

Notes with concern the current negative rate of personal saving in the USA, reviews previous research on factors affecting savings and explores the interrelationships between personal savings and the returns on stock and family homes. Develops a mathematical model and applies it to 1980‐2000 data using causality tests, cointegration and error‐correction models. Finds a significant, negative causal relationship from stock returns to savings and a possible positive causal relationship from returns on homes, although the latter was not supported by tri‐variate analysis. Concludes that changes in a household’s stock returns are adjusted through changes in savings.
Predicting stock‐bond correlations
Authors: Cheng Joseph , Ryan Robert
Published: June 2007

Refers to previous research on deciding the balance between equities and bonds in investment portfolios and puts forward a model based on a single period correlation to predict future stock‐bond correlations from past interest and growth rates. Explains the concepts involved and uses 1948‐2000 US data to test it. Shows that the model predicts stock‐bond correlation significantly better than the traditional method of extrapolating from past correlations; and relates this to the theory of loanable funds. Concludes that high interest rates and high growth lead to higher correlations between stocks and bonds and calls for further research.
Evaluation of equity mutual funds operating in the Greek financial market
Authors: Artikis Panayiotis G.
Published: June 2007

Assesses the 1995‐1998 performance of 17 equity mutual funds operating in the Greek financial market, explains the calculations involved and reviews relevant research. Ranks the funds by daily, weekly, monthly and total return for the period and compares them with the general Athens Stock Exchange index. Goes on to rank them by total risk, coefficient of variation and systematic risk before applying Treynor’s index, Sharpe’s index and Jensen’s approach. Presents the results in detail and summarizes the main findings.
Sales efforts, capital structure and monopoly power
Authors: Ventoura‐Neokosmidi Zoe
Published: June 2007

Explains how sales efforts try to create product differentiation and increase monopoly power; and uses 1995‐1996 data from a panel of 45 Greek firms to examine the relationship between debt‐to‐equity ratio and profitability, taking a firm’s sales promotion expenses into account. Applies three mathematical models to the data and finds a significant negative relationship between debt‐to‐equity and profit margin, i.e. that the cost of borrowing capital exceeds the benefits of investment. Finds a significant positive relationship between sales promotion expenses and profit margin, which suggests that promotional activities do increase monopoly power. Briefly considers consistency with other research.