Quarterly Journal of Business and Economics articles from June 2001

Quarterly Journal of Business and Economics archives from June 2001

Estimating expected returns in an event study framework: evidence from the Dartboard lumn.
June 22, 2001... Introduction Event study methodology seeks to measure the return impact on securities experiencing a microeconomic event such as a recommendation by a security analyst or a macroeconomic event such as a shift in monetary policy. Since the...

Stability, volatility, risk premiums, and predictability in Latin American emerging stock markets.
June 22, 2001... Introduction Emerging markets' equity flows have increased recently, with market capitalization growing at nearly double the rate of the world's equity market. Latin America's emerging equity markets have concurrently experienced numerous...

Reassessment of contagion and competitive intra-industry effects of bankruptcy announcements.
June 22, 2001... Introduction Bankruptcy has a strong negative impact on the filing company's shareholder wealth. The effect of bankruptcy news on competitors' stocks, however is not clear-cut. If investors believe that a bankruptcy indicates...

Cash settlement and price discovery in futures markets.
June 22, 2001... Introduction Traditionally, commodity futures contracts are settled by physical delivery. A seller with an open position at contract expiration must make deliveries to liquidate the position. Similarly, a buyer must take deliveries to...

The role of performance plans in mitigating agency problems: an empirical examination.
June 22, 2001... Background The separation of ownership from management creates agency problems in corporations, as managers may not always act in the best interests of the stockholders. Two specific agency problems are the horizon problem and the...

Tracking error in the Dow Jones Industrial Average versus alternative market indices: new evidence.
June 22, 2001... Introduction The Dow Jones Industrial Average (DJIA) is the most widely followed stock market index in the United States. Many people intuitively use the DJIA as an indicator for performance in the broad market. But does the DJIA track the...

The significance of serial cross-correlations after controlling for a specific factor structure in security returns.
June 22, 2001... Introduction Two interesting sources of predictability that have been identified in security returns are serial cross-correlations and significant time-varying factor structures. Recent studies by Fargher and Weigand (1998) and Richardson...

Free cash flow, leverage, and investment opportunities.
June 22, 2001... Introduction What do firms that do not have positive investment opportunities do with excess financial capacity? Excess financial capacity is free cash flow plus excess debt capacity. Jensen (1986) defines free cash flow as the cash flow...