Suchergebnisse

Challenges Murray Rothbard's (1974) view that paper money & fractional-reserve banking are fraudulent, asserting that his position stands contrary to basic ideas of liberty & the free market. Discussion begins with a look at monetary freedom. A free-market fractional-reserve banking proposition is then put forth, stating that freely agreed upon behaviors between depositors & bankers, ie, private parties, cannot be considered criminal. Attention is given to the concept of liberty, the property rights attached to bank deposits, Henry Dunning McLeod's (1902) distinction between two banking possibilities, & problems with some of Ludwig von Mises's ideas used by Rothbard. It is concluded that Rothbardians are sacrificing genuine monetary freedom in support of 100% reserve banking. References. Adapted from the source document.

AbstractA model of optimal dividend payout is presented in which increased dividends lower agency costs but raise the transactions cost of external financing. The optimal dividend payout minimizes the sum of these two costs. A cross‐sectional test of the model relates dividend payout to the fraction of equity held by insiders, the past and expected future revenue growth of the firm, the firm's beta coefficient, and the number of common stockholders. The coefficients of all variables are significant in the predicted directions. The results indicate that investment policy influences dividend policy.

AbstractWe estimate speeds of adjustment of individual stock prices to private information using daily data. We use a model in which private information gives rise to return variance and private information decays linearly over time. We find that, on average, about 85 percent to 88 percent of private information is incorporated into prices within one trading day, with variation depending upon the stock's trading volume and whether the stock is listed on an exchange. The findings support strong form market efficiency.

AbstractWe report three new findings that rely upon the high‐low price range as an estimate of stock return variance. The predictability of variance is associated with persistence in high prices and with correlated shocks to high and low prices. Excess stock returns are positively related to anticipated variance and inversely related to unanticipated variance. Lagged squared residuals in GARCH(1,1) models have no incremental explanatory power in the presence of forecasts of conditional volatility generated from high‐low price spread models.

AbstractThe coskewness and dividend yield effects on capital asset prices have been established in two separate literatures. Neither literature controls for the variable in the other, nor for other potentially confounding factors such as size of the firm and the January effect on returns. Using stock return data for 1969–1978, this study provides evidence of coskewness, size, yield and January effects on stock returns. Coskewness appears to be a surrogate variable for dividend yield. When yield is controlled for, the coskewness effect cannot be detected. Hence, the significance of coskewness seems to result from the presence of the uncontrolled factor, dividend yield.