Quarterly Journal of Business and Economics articles from March 1992

Quarterly Journal of Business and Economics archives from March 1992

Extreme negative information and the market adjustment process: the case of corporate bankruptcy.
March 22, 1992... Despite the conventional wisdom that equity prices adjust rapidly to new information, several studies provide contrary evidence in the presence of severe price declines. In the spirit of Lakonishok and Smidt (1988), the generality of this...

An examination of hypotheses concerning earnings forecast errors.
March 22, 1992... This paper examines Value Line's earning prediction errors using a research design that incorporates the fact that forecast errors are likely to be time dependent. The results support the hypotheses that the prediction error is smaller the...

The determinants and performance effects of rivalry in local banking markets.
March 22, 1992... High concentration is expected to facilitate collusion and result in less intense rivalry and excessive profitability. In banking, most research investigation this hypothesis has focused on the relationship between concentration and...

Cost of equity capital redefined.
March 22, 1992... The Modigliani-Miller (MM) theory of corporate finance has been subject to considerable debate and interest for over 30 years. Today it is the dominant theory in the field. This paper highlights an intuitively unappealing implication of the MM...

A simulation comparison of actuarial and contingent claims models for unfunded pension liabilities.
March 22, 1992... Abstract Corporate financial statements must include pension plan disclosures. The disclosures include information that allows users to compute the unfunded pension liability. Willinger (1985) discusses an alternative contingent claims...

The role of revenue sharing in optimal stabilization policy.
March 22, 1992... Two recently popularized policy rules, price stabilization and nominal GNP stabilization, are analyzed in a model based on nominal wage contracting with wage indexation to price and firm nominal income. When there are only aggregate supply...