Suchergebnisse

THE ORIGINS OF THE NORTH VIETNAMESE ESCALATION IN VIETNAM ARE EXPLORED. THREE DECISIONS BY HANOI PLAYED A DECISIVE ROLE IN THE ORIGIN AND ESCALATION. THE BACKGROUND OF THESE DECISIONS AND HOW THEY WERE MADE ARE DISCUSSED.

In this paper, we study a sample of 179 corporate asset sales in Taiwan between 1993 and 2003. We find that corporate asset sales in Taiwan enhance parent firm value with cumulative abnormal returns of 1.7715% for the pre-announcement five-day period and 0.6086% for the two-day announcement window. This finding is consistent with the evidence discovered in both UK and US. We also examine whether asset-sale gains are positively related to managerial performance, private lender monitoring, the use of proceeds, the type of asset sales, the profitability of asset sales, and the relative size of asset sales. Our cross-sectional regression results indicate that all variables, except private debt monitoring and relative size, appear with their predicted signs, but not all of them are statistically significant. During longer event windows, we find that only managerial performance measured by Tobin's q and the use of asset-sale proceeds can explain the gains from corporate asset sales in Taiwan.

AbstractIndividual investors are undiversified, holding on average less than four securities in their personal portfolios. The small firm literature focuses on CAPM (systematic risk, full diversification concept) premia, and the actual performance of small firm portfolios held by investors is overstated because of the presence of unsystematic risk. This paper illustrates the magnitudes of total risk for small and large firms, and the behavior of such measures as portfolio size is altered. Small firms contain more risk as shown by the finding that a diversified portfolio of small firms has greater variability than a single, typical large firm. While small firms outperform large firms, investors should be aware of the implications for small firm undiversified portfolios. Because small firms contain large amounts of unsystematic risk, diversification is important if investors are going to capture the small firm premia reported in the literature.

AbstractThe newly created Nikkei put warrants represent a recent innovation in security development. These privately issued puts enable investors to hedge or speculate on price movements in the Japanese market. Understanding the pricing behavior of these new securities provides U.S. investors and issuers with valuable information to assess potential benefits and costs. In this research two alternative pricing models are used to explain the observed prices of several privately issued Nikkei put warrants. While results from the two models indicate some pricing biases, pricing errors are very small overall.

AbstractThere are varying views on the relative importance of cash flow versus earnings in the pricing of stocks. In this article, we identify which financial metric—cash flow or earnings—is more often used by investors in equity valuation and then investigate why investors focus on one more than the other. Our prior is that the practice of deviating from cash‐flow pricing, if it exists, can be explained by either rational herding or information cascades. We find that although stock prices are, on average, affected by short‐term earnings, cash‐flow pricing is used primarily to price what we classify as "negative" stocks—stocks that are generally characterized as illiquid, mispriced, or having a shorter trading history, negative earnings, or negative market performance. We find evidence consistent with the rational argument of information cascades. For stocks under close public scrutiny, investors tend to follow the decisions of others and feel compelled to conform to the majority even though their private information suggests otherwise. In the end, the choice to value stocks with either earnings or cash flow is still a rational one.