Asset Pricing When Traders Sell Extreme Winners and Losers
... predicting stock returns: it helps to explain volume and volatility as well. Shumway and Wu (2007) find evidence in China that the disposition effect generates momentum-like return patterns. The measures used in these studies are based on the premise that investors’ selling propensity is a monotonic ...
... predicting stock returns: it helps to explain volume and volatility as well. Shumway and Wu (2007) find evidence in China that the disposition effect generates momentum-like return patterns. The measures used in these studies are based on the premise that investors’ selling propensity is a monotonic ...
Advanced arithmetic
... 11. T h e origin of each of the number symbols 4, 5, 6, 7, 9, and probably 8 is, according to Ball, the initial letter of the corresponding numeral word in the Indo-Bactrian alphabet in use in the north of India about 150 B.C. 2 and 3 were formed by two and three parallel strokes written cursively, ...
... 11. T h e origin of each of the number symbols 4, 5, 6, 7, 9, and probably 8 is, according to Ball, the initial letter of the corresponding numeral word in the Indo-Bactrian alphabet in use in the north of India about 150 B.C. 2 and 3 were formed by two and three parallel strokes written cursively, ...
CHAPTER 5 INTRODUCTION TO VALUATION: THE TIME VALUE
... Future values grow (assuming a positive rate of return); present values shrink. ...
... Future values grow (assuming a positive rate of return); present values shrink. ...
The Value Relevance of Financial Accounting Information - S-WoBA
... accounting institutions and accounting standards. This talks in favour of research based on case country studies rather than large comparative studies where the researcher has limited possibilities to understand the accounting institutions and standards of all the researched countries. Also, value r ...
... accounting institutions and accounting standards. This talks in favour of research based on case country studies rather than large comparative studies where the researcher has limited possibilities to understand the accounting institutions and standards of all the researched countries. Also, value r ...
Intermediate Accounting
... • When a company acquires property, plant, and equipment by issuing securities such as common stock or preferred stock, the company records the exchange at the fair value of the asset acquired or of the stock issued, whichever is more clearly evident and representationally faithful. • Normally the t ...
... • When a company acquires property, plant, and equipment by issuing securities such as common stock or preferred stock, the company records the exchange at the fair value of the asset acquired or of the stock issued, whichever is more clearly evident and representationally faithful. • Normally the t ...
Scarcity, Risk Premiums and the Pricing of Commodity Futures
... Explaining backwardation, a negatively sloped term structure of forward or futures prices1 , has been a key issue in the finance literature since the early contributions of J. M. Keynes, N. Kaldor, J. Hicks, and others. Apparently, a negatively sloped term structure violates the standard, arbitrage- ...
... Explaining backwardation, a negatively sloped term structure of forward or futures prices1 , has been a key issue in the finance literature since the early contributions of J. M. Keynes, N. Kaldor, J. Hicks, and others. Apparently, a negatively sloped term structure violates the standard, arbitrage- ...
The Long-Run Discount Rate Controversy
... We see in Section 2.1 that the private sector should use the market interest rate as the rate at which risk-free cash flows should be discounted. In this section, we discuss whether this recommendation should be universal. Consider a (marginal) action that yields a cost C today and a sure benefit B ...
... We see in Section 2.1 that the private sector should use the market interest rate as the rate at which risk-free cash flows should be discounted. In this section, we discuss whether this recommendation should be universal. Consider a (marginal) action that yields a cost C today and a sure benefit B ...
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... swaps and derivatives. Such arrangements utilize the stabilizing role of option features against short term interest rate sensitivity, primarily in emerging markets where interest rate derivatives do not exist. We also explore the possibility of extending such embedded option features for the Sukuk ...
... swaps and derivatives. Such arrangements utilize the stabilizing role of option features against short term interest rate sensitivity, primarily in emerging markets where interest rate derivatives do not exist. We also explore the possibility of extending such embedded option features for the Sukuk ...
LEVERAGE, HEDGE FUNDS AND RISK
... skill and experience are required in order to distinguish between these two scenarios. The level of leverage used by a hedge fund cannot be observed in isolation as an indicator of the riskiness of that fund or its underlying strategies. Understanding the details of each manager’s trading style, the ...
... skill and experience are required in order to distinguish between these two scenarios. The level of leverage used by a hedge fund cannot be observed in isolation as an indicator of the riskiness of that fund or its underlying strategies. Understanding the details of each manager’s trading style, the ...
CHAPTER 16
... Convertible debt and debt with stock warrants are similar in that: (1) both allow the issuer to issue debt at a lower interest cost than would generally be available for nonconvertible debt; (2) both allow the holders to purchase the issuer’s stock at less than market value if the stock appreciates ...
... Convertible debt and debt with stock warrants are similar in that: (1) both allow the issuer to issue debt at a lower interest cost than would generally be available for nonconvertible debt; (2) both allow the holders to purchase the issuer’s stock at less than market value if the stock appreciates ...
Contingent-Claim-Based Expected Stock Returns
... power, as shown in Panel B of Figure 1. It is worth noting that the stock-cash flow sensitivity does not necessarily decrease with the risk-neutral probability of default, πit ≡ (Xit /XiB )ωi . Their relationship depends on the relative effect of financial leverage and the option to default. Conside ...
... power, as shown in Panel B of Figure 1. It is worth noting that the stock-cash flow sensitivity does not necessarily decrease with the risk-neutral probability of default, πit ≡ (Xit /XiB )ωi . Their relationship depends on the relative effect of financial leverage and the option to default. Conside ...
EVA VERSUS TRADITIONAL ACCOUNTING MEASURES OF
... market value added (MVA). The financial managers and analysts try to find a way to identify the driver(s) of value with the strongest impact on MVA and to develop financial strategies that can optimize value creation for shareholders. It can be proven theoretically that EVA is superior to other meas ...
... market value added (MVA). The financial managers and analysts try to find a way to identify the driver(s) of value with the strongest impact on MVA and to develop financial strategies that can optimize value creation for shareholders. It can be proven theoretically that EVA is superior to other meas ...
law, share price accuracy and economic performance: the
... Mandatory periodic disclosure would also make less likely the reciprocal unfairness where an investor sells a share in the secondary market for less than it is worth. ...
... Mandatory periodic disclosure would also make less likely the reciprocal unfairness where an investor sells a share in the secondary market for less than it is worth. ...
Leverage and Corporate Performance: Evidence from Unsuccessful
... with meaningful actions. In particular, many of the targets of failed takeovers substantially increased their leverage ratios, which can be viewed as either a signal (e.g., Ross (1977)) or a commitment (e.g., Grossman and Hart (1982) or Jensen (1986)) that the promised improvements would in fact tak ...
... with meaningful actions. In particular, many of the targets of failed takeovers substantially increased their leverage ratios, which can be viewed as either a signal (e.g., Ross (1977)) or a commitment (e.g., Grossman and Hart (1982) or Jensen (1986)) that the promised improvements would in fact tak ...
Market Risk, Mortality Risk, and Sustainable Retirement
... that matter, throughout the retirement phase. (For the purpose of clarity, we define “retirement” here as the moment when a person begins net draw-downs from his or her accumulated savings to meet living expenses; see Kingston (2000) for more on this point.) While some simple rules of thumb have be ...
... that matter, throughout the retirement phase. (For the purpose of clarity, we define “retirement” here as the moment when a person begins net draw-downs from his or her accumulated savings to meet living expenses; see Kingston (2000) for more on this point.) While some simple rules of thumb have be ...
Great moderation at the firm level? Unconditional versus
... growth volatility at the aggregate level and the firm level might differ if output changes are imperfectly correlated across firms (Comin and Phillipon 2005). Patterns of correlation, in turn, may change due to differences in the process of deregulation across sectors, differences in R&D intensities ...
... growth volatility at the aggregate level and the firm level might differ if output changes are imperfectly correlated across firms (Comin and Phillipon 2005). Patterns of correlation, in turn, may change due to differences in the process of deregulation across sectors, differences in R&D intensities ...
Smith True Value Hardware - Affordable Business Valuations
... Revenue Ruling 59-60 also gives us guidance as to what factors should be considered. These are summarized below:3 1) The nature of the business and the history of the enterprise from its inception; 2) The economic outlook in general and the condition and outlook of the specific industry in particula ...
... Revenue Ruling 59-60 also gives us guidance as to what factors should be considered. These are summarized below:3 1) The nature of the business and the history of the enterprise from its inception; 2) The economic outlook in general and the condition and outlook of the specific industry in particula ...
To lock or not to lock – An introduction to the Locked Box
... the most obvious being that it gives certainty of price for both Buyer and Seller at the time of signing the SPA, which explains why this mechanism is particularly favored by Private Equity and financial Sellers. It is also becoming increasingly popular in the Corporate Sector as well as they see th ...
... the most obvious being that it gives certainty of price for both Buyer and Seller at the time of signing the SPA, which explains why this mechanism is particularly favored by Private Equity and financial Sellers. It is also becoming increasingly popular in the Corporate Sector as well as they see th ...
How to Discount Cashflows with Time
... Brennan (1997) also considers the problem of discounting cashf lows with time-varying expected returns and proposes a term structure of discount rates. Our model significantly generalizes Brennan’s formulation. In his setup, the beta of the security is constant and only the risk premium changes. Fur ...
... Brennan (1997) also considers the problem of discounting cashf lows with time-varying expected returns and proposes a term structure of discount rates. Our model significantly generalizes Brennan’s formulation. In his setup, the beta of the security is constant and only the risk premium changes. Fur ...