Quarterly Journal of Business and Economics articles from June 1995

Quarterly Journal of Business and Economics archives from June 1995

An empirical reexamination of the leasing puzzle.
June 22, 1995... INTRODUCTION This study reexamines the unexpected empirical findings of Ang and Peterson (1984). In contrast to prevailing theories that posit a substitution effect, Ang and Peterson document a complimentary relationship between traditional...

Intrayear compounding and fundamental bond valuation.
June 22, 1995... INTRODUCTION Since the publication of Chew and Clayton's (1983) article pointing out inconsistent statements of textbook authors concerning the relationship between bond value and the frequency of interest payments, several articles have...

Arbitration and salary gaps in major league baseball.
June 22, 1995... INTRODUCTION Prior to 1973 the labor market for major league baseball players was dominated by the reserve clause. This clause restricted a player's labor market activity to the team holding his contract in the previous season. Because major...

Thrift scale economies: an alternative approach.
June 22, 1995... INTRODUCTION The trend toward consolidation in the thrift industry received a substantial boost from the passage of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) in August 1989. FIRREA came after ten years of...

A reexamination of the relationship between liquidity premiums and the level of interest rates.
June 22, 1995... INTRODUCTION Two competing theories exist on how liquidity premiums(1) vary with the level of interest rates. Kessel (1965) argues that supply and demand conditions with respect to short-term and long-term securities are altered by the...

Misestimation of systematic risk and magnitude of the size effect: evidence using direct and reverse regressions.
June 22, 1995... INTRODUCTION The issue of measurement errors in financial economics has received much attention in recent years. Many researchers caution about evidence of large abnormal returns on portfolios based on firm-specific variables such as firm...

The political economy of United States foreign direct investment in developing countries: an empirical analysis.
June 22, 1995... INTRODUCTION A nation has three priorities in designing its foreign policy according to Karl Deutsch (1978). First, the country seeks to preserve its security and independence. Second, it pursues and protects its economic interests, especially...