Journal of Academy of Business and Economics articles from January 2007

Journal of Academy of Business and Economics archives from January 2007

To diversify or not to diversify: loss-averse investors with multiple benchmarks.
January 1, 2007... ABSTRACT This article presents an analysis of investment decisions made by loss-averse investors who simultaneously evaluate their portfolio performance relative to several benchmarks. We show that the multiplicity of benchmarks reduces...

Application of the resource-based view in the Brazilian autoparts sector.
January 1, 2007... ABSTRACT Drawing on previous research in the Resource-Based View of the Firm, this study aimed at illustrating the interrelationships between the properties of productive resources and the profitability of firms, in the Brazilian autoparts...

Taxable bond funds, expenses, and relative returns.
January 1, 2007... ABSTRACT The universe of economic agents cannot deliver an excess investment rate of return. Beating the market is a zero-sum game. After the deduction of investment management costs, investors collectively underperform market averages....

Internal capital markets and CEO power.
January 1, 2007... ABSTRACT This paper examines the relationship between the organizational hierarchy at the highest management level and the allocation of internal financial resources within a firm. A measure of CEO influence is devised that reflects the...

Do budget deficits reduce household taxpayer compliance? Preliminary evidence using the feige data.
January 1, 2007... ABSTRACT This study empirically investigates the hypothesis that, in the U.S., higher federal budget deficits induce a decrease in the degree of household taxpayer compliance, i.e., induce an increase in the degree of income tax evasion by...

Stock market performance and partisan presidency.
January 1, 2007... ABSTRACT This paper uses OLS regression and Markov regime switching approaches to investigate the relationship between stock market performance and U.S. presidents from Kennedy to the first term of G.W. Bush's administrations (1961 to...

Forecasting stock returns under the impacts of unemployment benefits and duration of unemployment.(Capital asset pricing model)
January 1, 2007... ABSTRACT To forecast future stock returns, a new capital asset pricing model (CAPM) that incorporates the impacts of job search and the duration and benefit of unemployment is developed, tested empirically, and compared to the standard and...

Money demand stability and central banks.
January 1, 2007... ABSTRACT The European Central Bank (ECB) and Federal Reserve take distinctly different viewpoints on the usefulness of the quantity of money. The ECB explicitly incorporates a quantity measure, M3, into their monetary framework and targets...

Trading volume and dispersion of the realized stock returns.
January 1, 2007... ABSTRACT This paper analyzes the effect of realized stock returns on future trading volume. It shows that for a given group of stocks the increase in the dispersion of their lagged realized returns results in higher trading volume. The...

Sensitivity analysis in decision making under risk with three states of nature: a linear programming approach.
January 1, 2007... ABSTRACT In decision making under risk, we often resort to sensitivity analysis to understand how the selection of an optimal alternative would be affected by the variations in the probability estimates of the states of nature. If the...

Are principles-based standards effective in the US?
January 1, 2007... ABSTRACT The Securities and Exchange Commission (SEC) is investigating whether US firms should have the option to use International Financial Reporting Standards ("International Standards") instead of US Standards. IFRS standards are...

Determinants of perceived audit quality: the role of audit fees and audit committee composition.
January 1, 2007... ABSTRACT Arguments proposed in the accounting literature suggest that high audit fees generate an economic bond between the auditor and client that investors may perceive as compromising the integrity of the audit process. Potentially...

The rold of monetary policy in some anomalies.
January 1, 2007... ABSTRACT Some investors build investment strategies around stock return patterns, pursuing anomalous returns. Among the patterns documented by researchers are the January effect and the monetary policy effect, which are both pronounced...

How much does the prime interest rate affect U.S. investment.(gross domestic product)
January 1, 2007... ABSTRACT This paper examines (econometrically) which interest rates seem most systematically related to investment and the GDP, and how long the lag time is before changes in these interest rates affect the GDP. The data for the U.S....

Predictability and trading efficiency of S&P CNX nifty index returns using support vector machines and random forest regression.
January 1, 2007... ABSTRACT This study investigates the predictability of S&P CNX NIFTY index returns using Support Vector Machines and Random Forest Regression. The performance of the two models is compared with neural network and ARIMA model. The four...

The price-volume relationship and mispricing in the market model for OTC stocks.
January 1, 2007... ABSTRACT This paper investigates if the observed price-volume relationship found in prior research has a "dual effect" on prediction errors in the market model. We find that high volume may be associated with lower and higher prediction...

Funds from operations (FFO) as an indicator: evidence of rational behavior and explanatory power.(Report)
January 1, 2007... ABSTRACT Our paper analyzes the effects of financial indicators on stock price. We use 411 firms represented in 1995 and 2005 Standard and Poor's 500 data in a Gordon Dividend Growth framework regression model to examine these effects as...

Dividend policy determinants in the insurance industry.
January 1, 2007... ABSTRACT This paper explores the dividend payout policy of firms in the insurance industry using a modification of Rozeff's (1982) agency cost-transaction cost tradeoff model. It appears that a firm's beta and level of insider ownership is...

Do earnings announcements of industry leaders convey additional information about their industry?: an empirical examination of Intel Corporation.(Capital Asset Pricing Model)
January 1, 2007... ABSTRACT Common stock market wisdom holds that the earnings announcements for industry leaders are important events releasing new information to the investing world about the future performance of the industry. The financial media often...

The value relevance of dividends: Canadian evidence.
January 1, 2007... ABSTRACT We formulate and test a hypothesis linking dividend policy and cross-listing of Canadian firms on US stock exchanges. Based on the assumption that cross-listing enhances price discovery as per Eun and Sabherwal (2003), we present...

Firm size and productivity: the case of REITs.(Malmquist Total Productivity Index)
January 1, 2007... ABSTRACT Real Estate Investment Trusts (REITs) have experienced numerous operational changes since 1993 because of legislation, structural changes, and consolidations. We employ the Malmquist Index to examine the impact of these changes on...