Journal of Academy of Business and Economics articles from January 2003

Journal of Academy of Business and Economics archives from January 2003

Introduction.(journal launch)(Brief Article)(Editorial)
January 1, 2003... It is my great pleasure to present to you the inaugural issue of the Journal of Academy of Business and Economics, Volume I, Number 1, 2003. In this issue of the journal (JABE), we have published 24 high quality research articles in finance and...

Risk, return, and investment horizon in emerging equity markets: evidence from India.(analyis of capital markets )
January 1, 2003... ABSTRACT Time diversification suggests that equity investments over long horizons provide excessive premia after adjusting for risk. Encouraged by this idea, and the attractive equity premia delivered by the US equity market during the...

The relationship between pension plan funding levels and capital structure: further evidence of a pecking order.(analysis of pension funds)
January 1, 2003... ABSTRACT The literature on defined benefit pension plans presumes firm managers make an economic choice to overfund or underfund their defined benefit pension plans irrespective of other firm operating conditions and/or financing...

Heteroskedastic behavior of the Indian stock market: evidence and explanation.
January 1, 2003... ABSTRACT This paper investigates the heteroskedastic behavior of the Indian stock market using 'vanilla' GARCH (1, 1) model for a period of about 24 years from January 1980 to June 2003. The study reports an evidence of time-varying...

The Kuala Lumpur stock market and economic factors: a general-to-specific error correction modeling test.
January 1, 2003... ABSTRACT This study applies the Error-Correction Modeling technique to examine the short-run dynamic adjustment and the long-run equilibrium relationships between the four macroeconomic variables and stock returns of Kuala Lumpur stock...

The determinants of capital structure choice using linear models: high technology vs. traditional corporations.
January 1, 2003... ABSTRACT This study adopts four linear models (multiple regression model variance-component model, first-order autoregressive model, and variance-component moving average model) with 10 independent variables to analyze the important...

Risk aversion and group dynamics in the management of student managed investment fund.
January 1, 2003... ABSTRACT The Student Managed Investment Fund (SMIF) at California State University, Long Beach, has been in operation for eight years, a time span that has covered a wide spectrum of market conditions. The records of the decisions of the...

The impact of foreign investment, regulatory measures and black markets on a country's economic growth.
January 1, 2003... ABSTRACT The study explores the impact of economics and institutional factors on a country's economic growth. These factors include: trade, taxation, government intervention in the economy, monetary policy, foreign investment, banking,...

The failures in the financial market: Market Failures vs. Government Failures.
January 1, 2003... ABSTRACT The paper compares the "failures" in the U.S stock market with Chinese stock market recently. The authors find that the phenomena of the failures in two markets are very similar: the boom-bust of the stock prices, the corporate...

Residual value risk in the lease-or-buy analysis.
January 1, 2003... ABSTRACT Whether debt and lease are substitutes or complements is one of the major issues in leasing literature. Most of the academic literature on leasing focused on the tax deduction as one of the main motivations for the leasing...

Employees' stock options from a shareholder's perspective.
January 1, 2003... ABSTRACT Although employee stock options (ESO) have existed for some time now, corporate watchdogs are becoming increasingly wary about potential abuse of ESO and have seriously challenged the value of such compensation schemes....

Shareholders value maximization: abandonment value, economic life of an asset and buying time alternatives.
January 1, 2003... ABSTRACT This concept paper is focused on the determination of the economic life of an asset from the angle of maximization of the shareholder value. The paper considers options of buying used assets, as the used assets can be sold in the...

The term structure of interest rates: evidence of market segmentation in the long end of the spectrum.
January 1, 2003... ABSTRACT One theory of the term structure of interest rates holds that markets are segmented by maturity, with each segment offering a yield resulting from the supply/demand equilibrium. Using data from United States Treasury constant...

Empirical evidence of the impact of FOMC monetary policy on the U.S. equity market, 1990-2002.(Federal Open Market Committee)
January 1, 2003... ABSTRACT This study re-measures the sensitivity of indices returns to selected macroeconomic factors. The results show three most influential factors--capacity utilization, consumer sentiment and depository reserves--are overall...

Futures market efficiency and the federal budget deficit.
January 1, 2003... ABSTRACT Stock index futures contract trading originated in the United States. One of the major financial innovations of the 1980s is the introduction of stock index futures in 1982. As a result of the tremendous growth in the futures...

An extended application of Factor Analysis in establishing peer groups among banks in Armenia.
January 1, 2003... ABSTRACT The introduction of this paper provides an historical backdrop to a modern-day analysis of banks in Armenia. Illustrated then are results from an extended application of Factor Analysis performed on a set of 17 banks and 13...

The market impact of change in corporate diversification (focus): some new evidence.
January 1, 2003... ABSTRACT Market reaction to seasoned equity issue is mostly negative but the effect of the level of a firm's diversification on the market response is not clearly understood. This paper examines the impact of corporate diversification on...

Analysis of the portfolio behavior of black-owned commercial banks.
January 1, 2003... ABSTRACT Several studies have been done and conclusions drawn on the operating efficiency of black-owned banks. This study differs because it did not seek to compare the economic performance of black-owned banks to non-black-owned banks....

Islamic financial houses in Turkey.
January 1, 2003... ABSTRACT Islamic banking activities started in Turkey with the opening of two Islamic finance houses at 1985. At the end of 1996 four more finance houses has founded. Initially a special rule was passed to regulate these houses. The...

The role of microenterprise finance in economic development.
January 1, 2003... ABSTRACT In this paper we address the role of micro-enterprise development in stimulating social capital and strategy for mobilizing neighborhood residents, working together or individually on concrete tasks that take advantage of new...

Creating wealth through mergers in Canada.
January 1, 2003... ABSTRACT Using financial event study method, we examine the impact of merger announcements on shareholder wealth of Canadian companies during an exceptional worldwide merger boom. Our results show that both target companies and the...

The impact of FDI on trade: evidence from China's bilateral trade.(foreign direct investment)
January 1, 2003... ABSTRACT Within a gravity model framework, this paper investigates the impact of foreign direct investment (FDI) on the trade performance of China using trade and stock data on a bilateral basis between China and 75 partner...

An exploratory investigation of international pharmaceutical firms' FDI decision into China: a comparison between eastern-firms and western-firms.(foreign direct investment)
January 1, 2003... ABSTRACT This paper investigated the determinants of international pharmaceutical firms' foreign direct investment (FDI) into the Chinese pharmaceutical manufacturing industry during the period from 1980 to 1998. The analysis of 43 cases...

Growth annuity: elixir of sustainable growth?
January 1, 2003... ABSTRACT This paper shows that growth annuity payment plans akin to graduated mortgage payments reduce the overall lending risk by alleviating the borrower's life-time likelihood of default particularly during the early years of the...

Global equity markets: a study of cointegration.
January 1, 2003... ABSTRACT The interlinkage global equity markets has been widely studied covering developed markets and some of the emerging markets. This study has focused on Indian equity market's interlinkage with some of the leading emerging markets...